8.BORROWINGS

Borrowings consist of the following at March 31, 2017 and December 31, 2016 (dollars in thousands):


	March 31,		December 31,
	2017		2016

Federal Home Loan Bank fixed rate advances	$	45,000	$	45,000
Correspondent bank line of credit		—		750
Correspondent bank term note		20,649		21,199
USDA Rural Development note		630		630

	$	66,279	$	67,579

The Federal Home Loan Bank borrowings bear a weighted average of 2.10% and mature in 2017, 2018, 2019 and 2020. They are collateralized at March 31, 2017 by the following: a collateral agreement on the Corporation’s one to four family residential real estate loans with a book value of approximately $42.506 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $12.000 million and $11.991 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $2.719 million. Prepayment of the advances is subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank of Indianapolis and the Federal Home Loan Bank of Chicago in effect as of March 31, 2017.

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 a rate of LIBOR plus 2.75% 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 million beginning March 31, 2017. This relationship is secured by all of the outstanding mBank stock.

The USDA Rural Development borrowing bears an interest rate of 1.00% and matures in August, 2024. It is collateralized by loans totaling $.108 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 $.593 million, and guaranteed by the Corporation.