Deposits and Related Interest

3 Months Ended

Mar. 31, 2017

NOTE 9— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of March 31, 2017 and December 31, 2016 consist of the following:

	March 31,		December 31,
	2017		2016
	(In thousands)
Non-interest bearing demand deposits	$	859,990	$	848,502
Interest-bearing savings and demand deposits		2,259,512		2,219,452
Individual retirement accounts		246,162		265,754
Retail certificates of deposit		590,093		563,965
Institutional certificates of deposit		186,192		190,419
Total core deposits		4,141,949		4,088,092
Brokered deposits		575,879		576,395
Total deposits	$	4,717,828	$	4,664,487

Brokered deposits include $512.6 million in certificates of deposits and $63.3 million in money market accounts at March 31, 2017, and $508.4 million in certificates of deposits and $68.0 million in money market accounts at December 31, 2016.

The weighted average interest rate of the Company’s deposits was 0.64% and 0.62% at March 31, 2017 and December 31, 2016 respectively. Interest expense for the quarters ended March 31, 2017 and 2016 was as follows:

	Quarter Ended March 31,
	2017		2016
	(In thousands)
Demand and savings deposits	$	2,909	$	2,842
Certificates of deposit		4,444		4,282
	$	7,353	$	7,124

At March 31, 2017 and December 31, 2016, demand and interest-bearing deposits and certificates of deposit included uncollateralized deposits of Puerto Rico Cash & Money Market Fund, Inc. ("the Fund”), which amounted to $14.4 million and $15.3 million, respectively, with a weighted average rate of 0.81% and 0.77%, respectively. The Fund was dissolved and liquidated on April 3, 2017.

At March 31, 2017 and December 31, 2016, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $336.7 million and $344.0 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies, and corporations of $2.5 million and $2.1 million at a weighted average rate of 0.46% and 0.50% at March 31, 2017 and December 31, 2016, respectively.

At March 31, 2017 and December 31, 2016, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $147.9 million and $170.7 million, respectively. These public funds were collateralized with commercial loans amounting to $209.2 million at March 31, 2017 and December 31, 2016, respectively.

Excluding accrued interest of approximately $1.4 million, the scheduled maturities of certificates of deposit at March 31, 2017 and December 31, 2016 are as follows:

	March 31, 2017		December 31, 2016
	(In thousands)
Within one year:
Three (3) months or less	$	305,077	$	277,621
Over 3 months through 1 year		507,127		534,548
		812,204		812,169
Over 1 through 2 years		493,616		488,440
Over 2 through 3 years		156,649		154,545
Over 3 through 4 years		30,223		29,701
Over 4 through 5 years		40,908		41,949
	$	1,533,600	$	1,526,804

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 $770 thousand and $575 thousand as of March 31, 2017 and December 31, 2016, respectively.