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Deposits and Related Interest
 9 Months Ended
Sep. 30, 2014
Deposits and Related Interest [Abstract]  
Deposit and Related Interest

NOTE 9— DEPOSITS AND RELATED INTEREST

 

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

 

 September 30, December 31,
 2014 2013
 (In thousands)
Non-interest bearing demand deposits$ 734,449 $ 744,327
Interest-bearing savings and demand deposits  2,566,952   2,489,971
Individual retirement accounts  314,813   347,262
Retail certificates of deposit  455,286   568,367
Institutional certificates of deposit  328,031   405,224
Total core deposits  4,399,531   4,555,151
Brokered deposits  669,644   828,114
Total deposits$ 5,069,175 $ 5,383,265

Brokered deposits include $575.8 million in certificates of deposits and $93.7 million in money market accounts at September 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 0.75% at September 30, 2014 and 0.73% at December 31, 2013, inclusive of non-interest bearing deposits of $734.4 million and $744.3 million, respectively. Interest expense for the quarters and nine-month periods ended September 30, 2014 and 2013 was as follows:

 

 Quarter Ended September 30, Nine-Month Period Ended September 30,
 2014 2013  2014  2013
 (In thousands)
Demand and savings deposits$ 4,003 $ 5,596 $ 13,834 $ 16,994
Certificates of deposit  3,658   5,738   11,970   13,763
 $ 7,661 $ 11,334 $ 25,804 $ 30,757

At September 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 $108.9 million and $93.1 million, respectively, with a weighted average rate of 0.78% in both years, and were collateralized with investment securities with a fair value of $83.4 million and $67.5 million, respectively.

At September 30, 2014 and December 31, 2013, time deposits in denominations of $100 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $681.6 million and $845.8 million, including public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $20.8 million and $26.7 million, respectively, at a weighted average rate of 0.53% at September 30, 2014 and 0.32% at December 31, 2013.

 

At September 30, 2014 and December 31, 2013, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $359.2 million and $328.6 million, respectively. These public funds were collateralized with commercial loans amounting to $416.0 million at September 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 $4.4 million, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.3 million and unamortized deposit discount in the amount of $1.1 million, the scheduled maturities of certificates of deposit at September 30, 2014 are as follows:

 

 September 30, 2014
 (In thousands)
Within one year:  
Three (3) months or less$ 342,429
Over 3 months through 1 year  590,965
   933,394
Over 1 through 2 years  454,186
Over 2 through 3 years  210,567
Over 3 through 4 years  50,067
Over 4 through 5 years  18,926
 $ 1,667,140

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 $890 thousand and $1.8 million as of September 30, 2014 and December 31, 2013, respectively.