Deposits and Related Interest

3 Months Ended

Mar. 31, 2016

NOTE 10— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of March 31, 2016 and December 31, 2015 consist of the following:

		March 31,		December 31,
	2016		2015
	(In thousands)
Non-interest bearing demand deposits	$	816,887	$	762,009
Interest-bearing savings and demand deposits		2,311,926		2,208,180
Individual retirement accounts		266,161		268,799
Retail certificates of deposit		491,072		441,998
Institutional certificates of deposit		205,541		253,791
Total core deposits		4,091,587		3,934,777
Brokered deposits		688,106		782,974
Total deposits	$	4,779,693	$	4,717,751

Brokered deposits include $617.6 million in certificates of deposits and $70.5 million in money market accounts at March 31, 2016, and $711.4 million in certificates of deposits and $71.6 million in money market accounts at December 31, 2015.

The weighted average interest rate of the Company’s deposits was 0.60% and 0.56% at March 31, 2016 and December 31, 2015, respectively. Interest expense for the quarters ended March 31, 2016 and 2015 was as follows:

	Quarter Ended March 31,
	2016		2015
	(In thousands)
Demand and savings deposits	$	2,842	$	3,382
Certificates of deposit		4,282		3,722
	$	7,124	$	7,104

At March 31, 2016 and December 31, 2015, demand and interest-bearing deposits and certificates of deposit included deposits of the Puerto Rico Cash & Money Market Fund, Inc., which amounted to $103.0 million and $103.7 million, respectively, with a weighted average rate of 0.77% for both periods, and were collateralized with investment securities with a fair value of $78.8 million and $81.6 million, respectively.

At March 31, 2016 and December 31, 2015, time deposits in denominations of $100 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $591.0 million and $597.6 million, respectively. Such amounts include public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $5.4 million and $7.7 million at a weighted average rate of 0.47% and 0.49% at March 31, 2016 and December 31, 2015, respectively.

At March 31, 2016 and December 31, 2015, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $220.5 million and $99.0 million, respectively. These public funds were collateralized with commercial loans amounting to $410.9 million at March 31, 2016 and at December 31, 2015.

Excluding equity indexed options in the amount of $746 thousand, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.7 million and unamortized deposit discount in the amount of $234 thousand, the scheduled maturities of certificates of deposit at March 31, 2016 and December 31, 2015 are as follows:

	March 31, 2016		December 31, 205
	(In thousands)
Within one year:
Three (3) months or less	$	342,072	$	474,051
Over 3 months through 1 year		451,919		501,551
		793,991		975,602
Over 1 through 2 years		489,143		454,906
Over 2 through 3 years		222,568		176,406
Over 3 through 4 years		36,253		32,396
Over 4 through 5 years		35,824		33,715
	$	1,577,779	$	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 $565 thousand as of March 31, 2016 and $1.5 million as of December 31, 2015.