Deposits and Related Interest

9 Months Ended

Sep. 30, 2018

NOTE 11— DEPOSITS AND RELATED INTEREST

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

	September 30,		December 31,
	2018		2017
	(In thousands)
Non-interest bearing demand deposits	$	1,107,567	$	969,525
Interest-bearing savings and demand deposits		2,412,690		2,274,116
Individual retirement accounts		204,715		231,376
Retail certificates of deposit		610,118		595,983
Institutional certificates of deposit		223,025		209,951
Total core deposits		4,558,115		4,280,951
Brokered deposits		530,878		518,531
Total deposits	$	5,088,993	$	4,799,482

Brokered deposits include $503.5 million in certificates of deposits and $27.3 million in money market accounts at September 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 0.65% at September 30, 2018 and December 31, 2017. Interest expense for the quarters and nine-month periods ended September 30, 2018 and 2017 was as follows:

	Quarter Ended September 30,				Nine-Month Period Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Demand and savings deposits	$	3,157	$	2,715	$	8,924	$	8,563
Certificates of deposit		5,448		4,886		14,630		14,043
	$	8,605	$	7,601	$	23,554	$	22,606

At September 30, 2018 and December 31, 2017, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $367.8 million and $359.6 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies and corporations of $43.7 million and $3.5 million at a weighted average rate of 0.54% and 0.28% at September 30, 2018 and December 31, 2017, respectively.

At September 30, 2018 and December 31, 2017, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $285.0 million and $153.1 million, respectively. These public funds were collateralized with commercial loans amounting to $265.1 million and $173.0 million at September 30, 2018 and December 31, 2017, respectively.

Excluding accrued interest of approximately $2.6 million, the scheduled maturities of certificates of deposit at September 30, 2018 and December 31, 2017 are as follows:

	September 30,		December 31,
		2018		2017
	(In thousands)
Within one year:
Three (3) months or less	$	239,716	$	316,382
Over 3 months through 1 year		578,308		508,285
		818,024		824,667
Over 1 through 2 years		506,842		470,670
Over 2 through 3 years		137,738		137,016
Over 3 through 4 years		31,088		36,125
Over 4 through 5 years		45,100		38,623
	$	1,538,792	$	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 $360 thousand and $2.2 million as of September 30, 2018 and December 31, 2017, respectively.