Deposits and Related Interest

6 Months Ended

Jun. 30, 2019

NOTE 10— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of June 30, 2019 and December 31, 2018 consist of the following:

	June 30,		December 31,
	2019		2018
	(In thousands)
Non-interest bearing demand deposits	$	1,075,744	$	1,105,324
Interest-bearing savings and demand deposits		2,344,576		2,274,423
Retail certificates of deposit		914,358		805,712
Institutional certificates of deposit		222,052		197,559
Total core deposits		4,556,730		4,383,018
Brokered deposits		388,407		525,097
Total deposits	$	4,945,137	$	4,908,115

Brokered deposits include $366.7 million in certificates of deposits and $21.7 million in money market accounts at June 30, 2019, and $500.8 million in certificates of deposits and $24.3 million in money market accounts at December 31, 2018. As part of the sale $349.7 million available-for-sale mortgage-backed securities during the quarter ended June 30, 2019, the Company reduced $62.8 million brokered deposits.

The weighted average interest rate of Oriental’s deposits was 0.80% and 0.67%, respectively, at June 30, 2019 and December 31, 2018. Interest expense for the quarters and six-month periods ended June 30, 2019 and 2018 was as follows:

	Quarter Ended June 30,				Six-Month Period Ended June 30,
	2019		2018		2019		2018
	(In thousands)
Demand and savings deposits	$	3,948	$	2,956	$	7,359	$	5,768
Certificates of deposit		6,043		4,695		11,681		9,181
	$	9,991	$	7,651	$	19,040	$	14,949

At June 30, 2019 and December 31, 2018, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $403.4 million and $346.0 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies and corporations of $29.3 million and $19.6 million at a weighted average rate of 134.3% and 116.4% at June 30, 2019 and December 31, 2018, respectively.

At June 30, 2019 and December 31, 2018, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $276.9 million and $207.4 million, respectively. These public funds were collateralized with commercial loans and securities amounting to $310.9 million and $281.2 million at June 30, 2019 and December 31, 2018, respectively.

Excluding accrued interest of approximately $2.5 million, the scheduled maturities of certificates of deposit at June 30, 2019 and December 31, 2018 are as follows:

	June 30,		December 31,
		2019		2018
	(In thousands)
Within one year:
Three (3) months or less	$	288,380	$	305,088
Over 3 months through 1 year		436,659		545,363
		725,039		850,451
Over 1 through 2 years		617,425		484,197
Over 2 through 3 years		81,874		89,340
Over 3 through 4 years		41,005		34,018
Over 4 through 5 years		35,243		42,998
	$	1,500,586	$	1,501,004

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 $995 thousand and $1.1 million as of June 30, 2019 and December 31, 2018, respectively.