NOTE 10 — BORROWINGS

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


	2017		2016
Federal Home Loan Bank fixed rate advances	$	60,000	$	45,000
Correspondent bank line of credit		—		750
Correspondent bank term note		18,999		21,199
USDA Rural Development note		553		630

	$	79,552	$	67,579

The Federal Home Loan Bank borrowings bear a weighted average rate of 1.66% and mature in 2018, 2019, and 2021. They are collateralized at December 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 $72.552 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $2.482 million and $2.460 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $3.112 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, 2017.

The Corporation currently has one correspondent 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. LIBOR was 1.69% at December 31, 2017. The term note had a balance of $18.999 million at December 31, 2017 and bears the same interest as the line of credit, and matures on April 30, 2019 and requires quarterly principal payments of $550,000 which began on March 31, 2017. The 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 $.553 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 $.619 million, and guaranteed by the Corporation.

Maturities and principal payments of borrowings outstanding at December 31, 2017 are as follows (dollars in thousands):


2018	$	12,277
2019		31,876
2020		10,078
2021		25,079
2022		80
Thereafter		162

Total	$	79,552