DEPOSITS

12 Months Ended

Dec. 31, 2014

NOTE 14 – DEPOSITS AND RELATED INTEREST

The following table summarizes deposit balances:
	December 31,
	2014		2013
	(In thousands)

Type of account and interest rate:
Non-interest-bearing checking accounts	$	900,616	$	851,212
Savings accounts - 0.05% to 0.85% (2013- 0.20% to 1.00%)		2,450,484		2,334,831
Interest-bearing checking accounts - 0.10% to 1.06%
(2013- 0.25% to 1.06%)		1,054,136		1,167,480
Certificates of deposit- 0.10% to 5.05% (2013- 0.10% to 5.05%)		2,191,663		2,384,378
Brokered certificates of deposit- 0.20% to 4.70% (2013- 0.45% to 4.94%)		2,887,046		3,142,023
	$	9,483,945	$	9,879,924

The weighted average interest rate on total interest-bearing deposits as of December 31, 2014 and 2013 was 0.82% and 0.93%, respectively.

As of December 31, 2014, the aggregate amount of overdrafts in demand deposits that were reclassified as loans amounted to $0.8 million (2013 — $2.6 million).

The following table presents a summary of CDs, including brokered CDs, with a remaining term of more than one year as of December 31, 2014:
		Total
		(In thousands)

Over one year to two years	$	1,304,563
Over two years to three years		326,771
Over three years to four years		133,303
Over four years to five years		45,670
Over five years		36,256
Total	$	1,846,563

As of December 31, 2014, CDs in denominations of $100,000 or higher amounted to $4.3 billion (2013 — $4.7 billion) including brokered CDs of $2.9 billion (2013 — $3.1 billion) at a weighted average cost of 0.77% (2013 — 0.97%) issued to deposit brokers in the form of large ($100,000 or more) certificates of deposit that are generally participated out by brokers in shares of less than $100,000. As of December 31, 2014, unamortized broker placement fees amounted to $6.1 million (2013— $9.1 million), which are amortized over the contractual maturity of the brokered CDs under the interest method.

Brokered CD's mature as follows:

	December 31,
	2014
	(In thousands)

One to ninety days	$	361,594
Over ninety days to one year		1,473,840
One to three years		956,783
Three to five years		58,795
Over five years		36,034
Total	$	2,887,046

As of December 31, 2014, deposit accounts issued to government agencies with a carrying value of $400.7 million (2013 — $705.8 million) were collateralized by securities and loans with an amortized cost of $634.0 million (2013 — $784.0 million) and an estimated market value of $624.8 million (2013 — $761.9 million). As of December 31, 2014, the Corporation had $227.4 million of government deposits in Puerto Rico (2013- $546.5 million) and $173.3 million in the Virgin Islands (2013- $159.3 million).

In 2014, Act 24-2014 was approved by the Puerto Rico Legislature, seeking to further strengthen the liquidity of the GDB and the GDB's oversight of public funds. As anticipated, certain public corporations and agencies withdrew from First Bank approximately $341.6 million during the second quarter of 2014.

A table showing interest expense on deposits follows:
		Year Ended December 31,
		2014		2013		2012
				(In thousands)
Interest-bearing checking accounts	$	6,446	$	8,419	$	9,421
Savings		15,416		15,852		17,382
Certificates of deposit		26,371		29,264		34,602
Brokered certificates of deposit		29,894		38,252		66,854
Total	$	78,127	$	91,787	$	128,259

The interest expense on deposits includes the amortization of broker placement fees related to brokered CDs amounting to $6.7 million, $7.9 million, and $9.9 million for 2014, 2013, and 2012, respectively.

- Definition

The entire disclosure for deposit liabilities including data and tables. It may include a description of the entity's deposit liabilities, the aggregate amount of time deposits (including certificates of deposit) in denominations of $100,000 or more at the balance sheet date; the aggregate amount of any demand deposits that have been reclassified as loan balances, such as overdrafts, at the balance sheet date; deposits that are received on terms other than those in the normal course of business, the amount of accrued interest on deposit liabilities; securities, mortgage loans or other financial instruments that serve as collateral for deposits; for time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years following the balance sheet date; and the weighted average interest rate for all deposit liabilities held by the entity.

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