Deposits and Related Interest

9 Months Ended

Sep. 30, 2015

NOTE 10— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of September 30, 2015 and December 31, 2014 consist of the following:

	September 30,		December 31,
	2015		2014
	(In thousands)
Non-interest bearing demand deposits	$	792,110	$	745,570
Interest-bearing savings and demand deposits		2,330,018		2,544,664
Individual retirement accounts		272,276		302,622
Retail certificates of deposit		456,320		452,150
Institutional certificates of deposit		213,224		260,090
Total core deposits		4,063,948		4,305,096
Brokered deposits		653,126		619,310
Total deposits	$	4,717,074	$	4,924,406

Brokered deposits include $577.6 million in certificates of deposits and $75.5 million in money market accounts at September 30, 2015, and $526.2 million in certificates of deposits and $93.1 million in money market accounts at December 31, 2014.

The weighted average interest rate of the Company’s deposits was 0.56% at September 30, 2015 and 0.66% at December 31, 2014. Interest expense for the quarters and nine-month periods ended September 30, 2015 and 2014 was as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2015		2014		2015		2014
	(In thousands)				(In thousands)
Demand and savings deposits	$	2,987	$	4,003	$	9,469	$	13,834
Certificates of deposit		3,664		3,658		10,890		11,970
	$	6,651	$	7,661	$	20,359	$	25,804

At September 30, 2015 and December 31, 2014, demand and interest-bearing deposits and certificates of deposit included deposits of Puerto Rico Cash & Money Market Fund, Inc., which amounted to $102.8 million and $96.8 million, respectively, with a weighted average rate of 0.77% and 0.78%, and were collateralized with investment securities with a fair value of $83.2 million and $76.3 million, respectively.

At September 30, 2015 and December 31, 2014, time deposits in denominations of $100 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $574.4 million and $608.1 million, respectively. Such amounts include public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $9.8 million at a weighted average rate of 0.52% at September 30, 2015, and $6.9 million at a weighted average rate of 0.50% at December 31, 2014.

At September 30, 2015 and December 31, 2014, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $175.0 million and $318.5 million, respectively. These public funds were collateralized with commercial loans amounting to $411.4 million and $414.5 million at September 30, 2015 and December 31, 2014, respectively

Excluding equity indexed options in the amount of $1.0 million, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.1 million and unamortized deposit discount in the amount of $381 thousand, the scheduled maturities of certificates of deposit at September 30, 2015 are as follows:

	September 30, 2015
	(In thousands)
Within one year:
Three (3) months or less	$	207,581
Over 3 months through 1 year		738,878
		946,459
Over 1 through 2 years		396,619
Over 2 through 3 years		113,719
Over 3 through 4 years		13,027
Over 4 through 5 years		47,020
	$	1,516,844

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 $682 thousand and $845 thousand as of September 30, 2015 and December 31, 2014, respectively.