Deposits and Related Interest

12 Months Ended

Dec. 31, 2019

NOTE 15— DEPOSITS AND RELATED INTEREST

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

	December 31,
	2019		2018
	(In thousands)
Non-interest bearing demand deposits	$	1,675,315	$	1,105,324
Interest-bearing savings and demand deposits		3,718,846		2,274,423
Retail certificates of deposit		1,781,237		805,712
Institutional certificates of deposit		279,714		197,559
Total core deposits		7,455,112		4,383,018
Brokered deposits		243,498		525,097
Total deposits	$	7,698,610	$	4,908,115

At December 31, 2019, Oriental completed the Scotiabank PR & USVI Acquisition adding $3.0 billion in core deposits.

Brokered deposits include $222.1 million in certificates of deposits and $21.4 million in money market accounts at December 31, 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 $672.2 million available-for-sale mortgage-backed securities during the year ended December 31, 2019, Oriental reduced $277.7 million brokered deposits.

The weighted average interest rate of Oriental’s deposits was 0.86% and 0.67%, respectively, at December 31, 2019 and 2018. Interest expense for the years ended December 31, 2019, 2018 and 2017 was as follows:

	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Demand and savings deposits	$	14,925	$	12,478	$	11,426
Certificates of deposit		24,430		20,475		18,872
	$	39,355	$	32,953	$	30,298

At December 31, 2019 and 2018, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $692.1 million and $346.0 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies and corporations of $257.2 million and $19.6 million at a weighted average rate of 67.0% and 116.4% at December 31, 2019 and 2018, respectively.

At December 31, 2019 and 2018, total public fund deposits from various Puerto Rico government municipalities, agencies and corporations amounted to $278.7 million and $207.4 million, respectively. These public funds were collateralized with commercial loans and securities amounting to $320.8 million and $281.2 million at December 31, 2019 and 2018, respectively.

Excluding accrued interest of approximately $11.7 million, the scheduled maturities of certificates of deposit at December 31, 2019 and 2018 are as follows:

	December 31,
		2019		2018
	(In thousands)
Within one year:
Three (3) months or less	$	314,796	$	305,088
Over 3 months through 1 year		881,183		545,363
		1,195,979		850,451
Over 1 through 2 years		732,421		484,197
Over 2 through 3 years		175,032		89,340
Over 3 through 4 years		89,148		34,018
Over 4 through 5 years		78,706		42,998
	$	2,271,286	$	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 $1.0 million and $1.1 million as of December 31, 2019 and 2018, respectively.