NOTE 10 — BORROWINGS

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


	2018		2017
Federal Home Loan Bank fixed rate advances	$	57,060	$	60,000
Correspondent bank term note		—		18,999
USDA Rural Development note		476		553

	$	57,536	$	79,552

The Federal Home Loan Bank borrowings bear a weighted average rate of 1.72% and mature in 2019, 2020, 2021, 2023, and 2026. They are collateralized at December 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 $64.918 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $24.919 million and $24.908 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $4.924 million. Prepayment of the advances is subject to the provisions and conditions of the credit policies of the Federal Home Loan Bank of Indianapolis in effect as of December 31, 2018.

The Corporation currently has one correspondent banking borrowing relationship. The relationship consists of a $15.0 million revolving line of credit, which had no outstanding balance at December 31, 2018. The line of credit bears interest at a rate of LIBOR plus 2.00%, with a floor rate of 3.00% and a ceiling of 22%. The line of credit expires on April 30, 2020. LIBOR was 2.81% at December 31, 2018. The Corporation previously had a term note as part of this relationship that was paid in full during the second quarter of 2018. 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 $.476 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 $.537 million, and guaranteed by the Corporation.

Maturities and principal payments of borrowings outstanding at December 31, 2018 are as follows (dollars in thousands):


2019	$	16,290
2020		12,567
2021		25,145
2022		80
2023		373
Thereafter		3,081

Total	$	57,536