NOTE 10 — BORROWINGS

Borrowings consist of the following at December 31 (dollars in thousands):



	2016		2015

Federal Home Loan Bank fixed rate advances	$	45,000	$	35,000
Correspondent bank line of credit		750		7,750
Correspondent bank term note		21,199		2,300
USDA Rural Development note		630		704

	$	67,579	$	45,754

The Federal Home Loan Bank borrowings bear a weighted average rate of 2.10% and mature in 2017, 2018, 2019 and 2020. They are collateralized at December 31, 2016 by the following: a collateral agreement on the Corporation’s one to four family residential real estate loans with a book value of approximately $44.042 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $11.966 million and $11.931 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $2.911 million. Prepayment of the advances is subject to the provisions and conditions of the credit policies of the Federal Home Loan Bank of Indianapolis and the Federal Home Loan Bank of Chicago in effect as of December 31, 2016.

The Corporation currently has one banking borrowing relationship. The relationship consists of a $5.0 million revolving line of credit and a term note. The line of credit bears interest at 90-day LIBOR plus 2.75%, with a floor rate of 4.00% and has an initial term that expires on April 30, 2018. The term note bears the same interest and matures on April 30, 2019 and requires quarterly principal payments of $550,000 beginning March 31, 2017. This relationship is secured by all of the outstanding common stock of mBank.

The USDA Rural Development borrowing bears an interest rate of 1.00% and matures in August, 2024. It is collateralized by loans totaling $.106 million originated and held by the Corporation’s wholly owned subsidiary, First Rural Relending, and an assignment of a demand deposit account in the amount of $.583 million, and guaranteed by the Corporation.

Maturities and principal payments of borrowings outstanding at December 31, 2016 are as follows (dollars in thousands):


2017	$	13,026
2018		12,277
2019		31,876
2020		10,078
2021		78
Thereafter		244

Total	$	67,579