Deposits and Related Interest

12 Months Ended

Dec. 31, 2018

NOTE 14— DEPOSITS AND RELATED INTEREST

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

	December 31,
	2018		2017
	(In thousands)
Non-interest bearing demand deposits	$	1,105,324	$	969,525
Interest-bearing savings and demand deposits		2,274,423		2,274,116
Retail certificates of deposit		805,712		827,359
Institutional certificates of deposit		197,559		209,951
Total core deposits		4,383,018		4,280,951
Brokered deposits		525,097		518,531
Total deposits	$	4,908,115	$	4,799,482

Brokered deposits include $500.8 million in certificates of deposits and $24.3 million in money market accounts at December 31, 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 0.67% and 0.65%, respectively, at December 31, 2018 and 2017. Interest expense for the years ended December 31, 2018, 2017, and 2016 was as follows:

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Demand and savings deposits	$	12,478	$	11,426	$	12,004
Certificates of deposit		20,475		18,872		17,249
	$	32,953	$	30,298	$	29,253

At December 31, 2018 and 2017, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $346.0 million and $359.6 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies and corporations of $19.6 million and $3.5 million at a weighted average rate of 116.4% and 0.28% at December 31, 2018 and 2017, respectively.

At December 31, 2018 and 2017, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $207.4 million and $153.1 million, respectively. These public funds were collateralized with commercial loans amounting to $281.2 million and $173.0 million at December 31, 2018 and 2017, respectively.

Excluding accrued interest of approximately $3.1 million, the scheduled maturities of certificates of deposit at December 31, 2018 and 2017 are as follows:

	December 31,
		2018		2017
	(In thousands)
Within one year:
Three (3) months or less	$	305,088	$	316,382
Over 3 months through 1 year		545,363		508,285
		850,451		824,667
Over 1 through 2 years		484,197		470,670
Over 2 through 3 years		89,340		137,016
Over 3 through 4 years		34,018		36,125
Over 4 through 5 years		42,998		38,623
	$	1,501,004	$	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 $1.1 million and $2.2 million as of December 31, 2018 and 2017, respectively.