Deposits and Related Interest

12 Months Ended

Dec. 31, 2015

NOTE 12— DEPOSITS AND RELATED INTEREST

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

	December 31,
	2015		2014
	(In thousands)
Non-interest bearing demand deposits	$	761,117	$	745,142
Interest-bearing savings and demand deposits		2,208,180		2,544,665
Individual retirement accounts		268,799		303,049
Retail certificates of deposit		441,998		452,150
Institutional certificates of deposit		253,791		260,090
Total core deposits		3,933,885		4,305,096
Brokered deposits		782,974		619,310
Total deposits	$	4,716,859	$	4,924,406

Brokered deposits include $711.4 million in certificates of deposits and $71.6 million in money market accounts at December 31, 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 0.57% and 0.66% at December 31, 2015, and 2014 respectively, inclusive of non-interest bearing deposits of $761.1 million and $745.1 million, respectively. Interest expense for years ended December 31, 2015, 2014 and 2013 was as follows:

	Year Ended December 31,
	2015		2014		2013
	(In thousands)
Demand and savings deposits	$	12,414	$	17,724	$	22,498
Certificates of deposit		14,620		16,230		18,479
	$	27,034	$	33,954	$	40,977

At December 31, 2015 and 2014, demand and interest-bearing deposits and certificates of deposit included deposits of Puerto Rico Cash & Money Market Fund, Inc., which amounted to $103.7 million and $96.8 million, respectively, with a weighted average rate of 0.77% and 0.78%, and, as required pursuant to an OCFI ruling, were collateralized with investment securities with a fair value of $81.6 million and $76.3 million, respectively.

At December 31, 2015 and 2014, time deposits in denominations of $100 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $597.6 million and $608.1 million, respectively. Such amounts include public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $7.7 million and $6.9 million at a weighted average rate of 0.49% and 0.50% at December 31, 2015 and 2014, respectively.

At December 31, 2015 and 2014, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $99.0 million and $318.5 million, respectively. These public funds were collateralized with commercial loans amounting to $410.9 million at December 31, 2015 and with investment securities with a fair value of $97.8 million at such date, and commercial loans amounting to $414.5 million at December 31, 2014

Excluding equity indexed options in the amount of $1.1 million, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.5 million and unamortized deposit discount in the amount of $311 thousand, the scheduled maturities of certificates of deposit at December 31, 2015 are as follows:

	December 31, 2015
	(In thousands)
Within one year:
Three (3) months or less	$	474,051
Over 3 months through 1 year		501,551
		975,602
Over 1 through 2 years		454,906
Over 2 through 3 years		176,406
Over 3 through 4 years		32,396
Over 4 through 5 years		33,715
	$	1,673,025

The table of scheduled maturities of certificates of deposits above includes brokered-deposits and individual retirement accounts.

The aggregate amount of overdrafts in demand deposit accounts that were reclassified to loans amounted to $1.5 million and $845 thousand as of December 31, 2015 and 2014, respectively.