Deposits and Related Interest

6 Months Ended

Jun. 30, 2018

NOTE 11— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of June 30, 2018 and December 31, 2017 consist of the following:

	June 30,		December 31,
	2018		2017
	(In thousands)
Non-interest bearing demand deposits	$	1,110,738	$	969,525
Interest-bearing savings and demand deposits		2,285,357		2,274,116
Individual retirement accounts		208,807		231,376
Retail certificates of deposit		601,687		595,983
Institutional certificates of deposit		212,187		209,951
Total core deposits		4,418,776		4,280,951
Brokered deposits		461,425		518,531
Total deposits	$	4,880,201	$	4,799,482

Brokered deposits include $427.1 million in certificates of deposits and $34.3 million in money market accounts at June 30, 2018, and $471.6 million in certificates of deposits and $46.9 million in money market accounts at December 31, 2017.

The weighted average interest rate of Oriental’s deposits was 0.63% and 0.65% at June 30, 2018 and December 31, 2017, respectively. Interest expense for the quarters and six-month periods ended June 30, 2018 and 2017 was as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2018		2017		2018		2017
	(In thousands)
Demand and savings deposits	$	2,956	$	2,939	$	5,768	$	5,848
Certificates of deposit		4,695		4,713		9,181		9,157
	$	7,651	$	7,652	$	14,949	$	15,005

At June 30, 2018 and December 31, 2017, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $363.4 million and $359.6 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies, and corporations of $33.2 million and $3.5 million at a weighted average rate of 0.93% and 0.28% at June 30, 2018 and December 31, 2017, respectively.

At June 30, 2018 and December 31, 2017, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $156.9 million and $153.1 million, respectively. These public funds were collateralized with commercial loans amounting to $201.2 million and $173.0 million at June 30, 2018 and December 31, 2017, respectively.

Excluding accrued interest of approximately $1.7 million, the scheduled maturities of certificates of deposit at June 30, 2018 and 2017 are as follows:

	June 30,		December 31,
		2018		2017
	(In thousands)
Within one year:
Three (3) months or less	$	286,623	$	316,382
Over 3 months through 1 year		505,206		508,285
		791,829		824,667
Over 1 through 2 years		468,489		470,670
Over 2 through 3 years		111,344		137,016
Over 3 through 4 years		30,850		36,125
Over 4 through 5 years		45,630		38,623
	$	1,448,142	$	1,507,101

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 $367 thousand and $2.2 million as of June 30, 2018 and December 31, 2017, respectively.