XML 102 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Deposits and Related Interest
 6 Months Ended
Jun. 30, 2014
Deposits and Related Interest [Abstract]  
DEPOSITS AND RELATED INTEREST

NOTE 9 — DEPOSITS AND RELATED INTEREST

 

Total deposits as of June 30, 2014 and December 31, 2013 consist of the following:

 

 June 30, December 31,
 2014 2013
 (In thousands)
Non-interest bearing demand deposits$ 731,294 $ 744,327
Interest-bearing savings and demand deposits  2,540,229   2,489,971
Individual retirement accounts  323,127   347,262
Retail certificates of deposit  519,150   598,367
Institutional certificates of deposit  308,958   375,224
Total core deposits  4,422,758   4,555,151
Brokered deposits  718,475   828,114
Total deposits$ 5,141,233 $ 5,383,265

Brokered deposits include $627.9 million in certificates of deposits and $90.6 million in money market accounts at June 30, 2014, and $729.8 million in certificates of deposits and $98.3 million in money market accounts at December 31, 2013.

 

The weighted average interest rate of the Company's deposits was 0.70% at June 30, 2014 and 0.73% at December 31, 2013, inclusive of non-interest bearing deposits of $731.3 million and $744.3 million, respectively. Interest expense for the quarters and six-month periods ended June 30, 2014 and 2013 was as follows:

 

 Quarter Ended June 30, Six-Month Period Ended June 30,
 2014 2013  2014  2013
 (In thousands)
Demand and savings deposits$ 4,804 $ 5,435 $ 9,832 $ 11,398
Certificates of deposit  4,361   4,052   8,311   8,025
 $ 9,165 $ 9,487 $ 18,143 $ 19,423

At June 30, 2014 and December 31, 2013, demand and interest-bearing deposits and certificates of deposit included deposits of Puerto Rico Cash & Money Market Fund, Inc., which amounted to $101.8 million and $93.1 million, respectively, with a weighted average rate of 0.77% in both years, and were collateralized with investment securities with a fair value of $81.8 million and $67.5 million, respectively.

At June 30, 2014 and December 31, 2013, time deposits in denominations of $100 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $719.2 million and $845.8 million, including public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $22.1 million and $26.7 million, respectively, at a weighted average rate of 0.53% at June 30, 2014 and 0.32% at December 31, 2013.

 

At June 30, 2014 and December 31, 2013, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $362.8 million and $328.6 million, respectively. These public funds were collateralized with commercial loans amounting to $454.5 million at June 30, 2014, and with investment securities with a fair value of $97.8 million and commercial loans amounting to $549.0 million at December 31, 2013.

 

Excluding equity indexed options in the amount of $5.2 million, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $2.1 million and unamortized deposit discount in the amount of $2.5 million, the scheduled maturities of certificates of deposit at June 30, 2014 are as follows:

 

 June 30, 2014
 (In thousands)
Within one year:  
Three (3) months or less$ 372,809
Over 3 months through 1 year  701,493
   1,074,302
Over 1 through 2 years  421,047
Over 2 through 3 years  200,607
Over 3 through 4 years  56,095
Over 4 through 5 years  17,202
 $ 1,769,253

The table of scheduled maturities of certificates of deposits above includes brokered deposits.

 

The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $861 thousand and $1.8 million as of June 30, 2014 and December 31, 2013, respectively.