Deposits and Related Interest

9 Months Ended

Sep. 30, 2017

NOTE 11— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of September 30, 2017 and December 31, 2016 consist of the following:

	September 30,		December 31,
	2017		2016
	(In thousands)
Non-interest bearing demand deposits	$	900,063	$	848,502
Interest-bearing savings and demand deposits		2,337,174		2,219,452
Individual retirement accounts		235,265		265,754
Retail certificates of deposit		596,854		563,965
Institutional certificates of deposit		221,448		190,419
Total core deposits		4,290,804		4,088,092
Brokered deposits		535,600		576,395
Total deposits	$	4,826,404	$	4,664,487

Brokered deposits include $487.0 million in certificates of deposits and $48.6 million in money market accounts at September 30, 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 Oriental’s deposits was 0.65% and 0.62% at September 30, 2017 and December 31, 2016 respectively. Interest expense for the quarters and nine-month periods ended September 30, 2017 and 2016 was as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2017		2016		2017		2016
	(In thousands)
Demand and savings deposits	$	2,715	$	3,035	$	8,563	$	9,061
Certificates of deposit		4,886		4,296		14,043		12,761
	$	7,601	$	7,331	$	22,606	$	21,822

At 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 $15.3 million, with a weighted average rate of 0.77%. On April 3, 2017, the Fund was liquidated in anticipation of its dissolution.

At September 30, 2017 and December 31, 2016, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $364.7 million and $344.0 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies, and corporations of $13.3 million and $2.1 million at a weighted average rate of 0.67% and 0.50% at September 30, 2017 and December 31, 2016, respectively.

At September 30, 2017 and December 31, 2016, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $135.8 million and $170.7 million, respectively. These public funds were collateralized with commercial loans amounting to $174.3 million and $209.2 million at September 30, 2017 and December 31, 2016, respectively.

Excluding accrued interest of approximately $2.1 million, the scheduled maturities of certificates of deposit at September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017		December 31, 2016
	(In thousands)
Within one year:
Three (3) months or less	$	271,981	$	277,621
Over 3 months through 1 year		577,067		534,548
		849,048		812,169
Over 1 through 2 years		448,068		488,440
Over 2 through 3 years		168,084		154,545
Over 3 through 4 years		37,303		29,701
Over 4 through 5 years		35,981		41,949
	$	1,538,484	$	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 $593 thousand and $575 thousand as of September 30, 2017 and December 31, 2016, respectively.