Deposits and Related Interest

12 Months Ended

Dec. 31, 2017

NOTE 14— DEPOSITS AND RELATED INTEREST

Total deposits, including related accrued interest payable, as of December 31, 2017 and 2016 consist of the following:

	December 31,
	2017		2016
	(In thousands)
Non-interest bearing demand deposits	$	969,525	$	848,502
Interest-bearing savings and demand deposits		2,274,116		2,219,452
Individual retirement accounts		231,376		265,754
Retail certificates of deposit		595,983		563,965
Institutional certificates of deposit		209,951		190,419
Total core deposits		4,280,951		4,088,092
Brokered deposits		518,531		576,395
Total deposits	$	4,799,482	$	4,664,487

Brokered deposits include $471.6 million in certificates of deposits and $46.9 million in money market accounts at December 31, 2017, and $508.4 million in certificates of deposits and $68.0 million in money market accounts at December 31, 2016.

The weighted average interest rate of Oriental’s deposits was 0.65% and 0.62% at December 31, 2017 and 2016, respectively. Interest expense for the years ended December 31, 2017, 2016 and 2015 was as follows:

	Year Ended December 31,
	2017		2016		2015
	(In thousands)
Demand and savings deposits	$	11,426	$	12,004	$	12,414
Certificates of deposit		18,872		17,249		14,620
	$	30,298	$	29,253	$	27,034

At December 31, 2016, demand and interest-bearing deposits and certificates of deposit included uncollateralized deposits of Puerto Rico Cash & Money Market Fund, Inc. (the "Fund”), which amounted to $15.3 million, with a weighted average rate of 0.77%. On April 3, 2017, the Fund was liquidated in anticipation of its dissolution.

At December 31, 2017 and 2016, time deposits in denominations of $250 thousand or higher, excluding accrued interest and unamortized discounts, amounted to $359.6 million and $344.0 million, respectively. Such amounts include public funds time deposits from various Puerto Rico government municipalities, agencies, and corporations of $3.5 million and $2.1 million at a weighted average rate of 0.28% and 0.50% at December 31, 2017 and 2016, respectively.

At December 31, 2017 and 2016, total public fund deposits from various Puerto Rico government municipalities, agencies, and corporations amounted to $153.1 million and $170.7 million, respectively. These public funds were collateralized with commercial loans amounting to $173.0 million and $209.2 million at December 31, 2017 and 2016, respectively.

Excluding accrued interest of approximately $1.9 million, the scheduled maturities of certificates of deposit at December 31, 2017 and 2016 are as follows:

	December 31, 2017
		2017		2016
	(In thousands)
Within one year:
Three (3) months or less	$	316,382	$	277,621
Over 3 months through 1 year		508,285		534,548
		824,667		812,169
Over 1 through 2 years		470,670		488,440
Over 2 through 3 years		137,016		154,545
Over 3 through 4 years		36,125		29,701
Over 4 through 5 years		38,623		41,949
	$	1,507,101	$	1,526,804

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 $2.2 million and $575 thousand as of December 31, 2017 and 2016, respectively.