8.BORROWINGS

Borrowings consist of the following at March 31, 2018 and December 31, 2017 (dollars in thousands):


	2018		2017
Federal Home Loan Bank fixed rate advances	$	60,000	$	60,000
Correspondent bank line of credit		1,000		—
Correspondent bank term note		18,449		18,999
USDA Rural Development note		553		553

	$	80,002	$	79,552

The Federal Home Loan Bank borrowings bear a weighted average rate of 1.81% and mature at vaious dates through 2022. They are collateralized at March 31, 2018 by the following: a collateral agreement on the Corporation’s one to four family residential real estate loans with a book value of approximately $73.694 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $4.550 million and $4.536 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 policy of the Federal Home Loan Bank of Indianapolis in effect as of March 31, 2018.

The Corporation currently has one correspondent banking borrowing relationship. The relationship consisted of a $5.0 million revolving line of credit and a term note. At March 31, 2018 the line of credit bore interest at a rate of 90-day LIBOR plus 2.75% and had an initial term that expired on April 30, 2018. The Corporation has since renewed and renegotiated this line of credit. The revised agreement includes an increase to the maximum amount to $15.0 million, bearing an interest rate of 90-day LIBOR plus 2.00%, with a floor rate of 2.00% and a ceiling of 22%. The revised line of credit expires on April 30, 2020. LIBOR at March 31, 2018 was 2.32%. 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 $.553 million, and guaranteed by the Corporation.