Deposits and Related Interest

9 Months Ended

Sep. 30, 2016

NOTE 9— DEPOSITS AND RELATED INTEREST

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

		September 30,		December 31,
	2016		2015
	(In thousands)
Non-interest bearing demand deposits	$	818,153	$	762,009
Interest-bearing savings and demand deposits		2,312,885		2,208,180
Individual retirement accounts		267,955		268,799
Retail certificates of deposit		549,945		441,998
Institutional certificates of deposit		224,672		253,791
Total core deposits		4,173,610		3,934,777
Brokered deposits		581,161		782,974
Total deposits	$	4,754,771	$	4,717,751

Brokered deposits include $515.9 million in certificates of deposits and $65.3 million in money market accounts at September 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 0.62% and 0.57% at September 30, 2016 and December 31, 2015, respectively. Interest expense for the quarters and nine-month periods ended September 30, 2016 and 2015 was as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2016		2015		2016		2015
	(In thousands)				(In thousands)
Demand and savings deposits	$	3,035	$	2,987	$	9,061	$	9,469
Certificates of deposit		4,296		3,664		12,761		10,890
	$	7,331	$	6,651	$	21,822	$	20,359

At September 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 $114.8 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 $87.4 million and $81.6 million, respectively.

At September 30, 2016 and December 31, 2015, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $371.3 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 0.45% and 0.49% at September 30, 2016 and December 31, 2015, respectively.

At September 30, 2016 and December 31, 2015, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $165.0 million and $99.0 million, respectively. These public funds were collateralized with commercial loans amounting to $209.3 million and $410.9 million at September 30, 2016 and December 31, 2015, respectively.

Excluding accrued interest of $1.5 million and unamortized deposit discount in the amount of $72 thousand at September 30, 2016, and accrued interest of $1.5 million, unamortized deposit discount of $311 thousand and equity indexed options of $1.1 million at December 31, 2015, the scheduled maturities of certificates of deposit are as follows:

	September 30, 2016		December 31, 2015
	(In thousands)
Within one year:
Three (3) months or less	$	197,615	$	474,051
Over 3 months through 1 year		592,382		501,551
		789,997		975,602
Over 1 through 2 years		514,665		454,906
Over 2 through 3 years		165,838		176,406
Over 3 through 4 years		42,569		32,396
Over 4 through 5 years		43,816		33,715
	$	1,556,885	$	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 $780 thousand as of September 30, 2016 and $1.5 million as of December 31, 2015.