Deposits and Related Interest

6 Months Ended

Jun. 30, 2016

NOTE 9— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of June 30, 2016 and December 31, 2015 consists of the following:

		June 30,		December 31,
	2016		2015
	(In thousands)
Non-interest bearing demand deposits	$	917,260	$	762,009
Interest-bearing savings and demand deposits		2,165,907		2,208,180
Individual retirement accounts		269,189		268,799
Retail certificates of deposit		525,979		441,998
Institutional certificates of deposit		204,074		253,791
Total core deposits		4,082,409		3,934,777
Brokered deposits		561,645		782,974
Total deposits	$	4,644,054	$	4,717,751

Brokered deposits include $495.9 million in certificates of deposits and $65.7 million in money market accounts at June 30, 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 0.63% and 0.57% at June 30, 2016 and December 31, 2015, respectively. Interest expense for the quarters and six-month periods ended June 30, 2016 and 2015 was as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2016		2015		2016		2015
	(In thousands)				(In thousands)
Demand and savings deposits	$	3,184	$	3,100	$	6,026	$	6,482
Certificates of deposit		4,183		3,504		8,465		7,226
	$	7,367	$	6,604	$	14,491	$	13,708

At June 30, 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 $104.4 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 $84.7 million and $81.6 million, respectively.

At June 30, 2016 and December 31, 2015, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $340.9 million and $376.8 million, respectively. Such amounts include public fund time deposits from various Puerto Rico government municipalities, agencies, and corporations of $9.2 million and $7.6 million at a weighted average rate of 0.55% and 0.49% at June 30, 2016 and December 31, 2015, respectively.

At June 30, 2016 and December 31, 2015, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $88.4 million and $99.0 million, respectively. These public funds were collateralized with commercial loans amounting to $410.9 million at June 30, 2016 and December 31, 2015.

Excluding equity indexed options in the amount of $181 thousand, which are used by the Company to manage its exposure to the S&P 500 Index, and also excluding accrued interest of $1.8 million and unamortized deposit discount in the amount of $150 thousand, the scheduled maturities of certificates of deposit at June 30, 2016 and December 31, 2015 are as follows:

	June 30, 2016		December 31, 2015
	(In thousands)
Within one year:
Three (3) months or less	$	225,512	$	474,051
Over 3 months through 1 year		518,304		501,551
		743,816		975,602
Over 1 through 2 years		513,092		454,906
Over 2 through 3 years		155,666		176,406
Over 3 through 4 years		36,059		32,396
Over 4 through 5 years		44,340		33,715
	$	1,492,973	$	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 $569 thousand as of June 30, 2016 and $1.5 million as of December 31, 2015.