8.BORROWINGS

Borrowings consist of the following at September 30, 2017 and December 31, 2016 (dollars in thousands):


	September 30,		December 31,
	2017		2016

Federal Home Loan Bank fixed rate advances	$	70,000	$	45,000
Correspondent bank line of credit		1,295		750
Correspondent bank term note		19,549		21,199
USDA Rural Development note		553		630

	$	91,397	$	67,579

The Federal Home Loan Bank borrowings bear a weighted average rate of 2.09% and mature in 2017, 2018, 2019, 2020 and 2021. They are collateralized at September 30, 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 $73.676 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $11.976 million and $11.993 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $3.250 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 September 30, 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 90-day LIBOR plus 2.75% and has an initial term that expires on April 30, 2018. LIBOR at September 30, 2017 was 1.33%. The term note bears the same interest and matures on April 30, 2019 and requires quarterly principal payments of $.550 million, which began 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 an assignment of a demand deposit account held by the Corporation’s wholly owned subsidiary, First Rural Relending, in the amount of $.619 million, and guaranteed by the Corporation.