DEPOSITS

12 Months Ended

Dec. 31, 2016

NOTE 15 – DEPOSITS AND RELATED INTEREST

The following table summarizes deposit balances as of the dates indicated:
	December 31,
	2016		2015
(In thousands)

Type of account and interest rate:
Non-interest-bearing checking accounts	$	1,484,155	$	1,336,559
Interest-bearing savings accounts - 0.05% to 0.40% (2015- 0.05% to 0.70%)		2,518,496		2,459,186
Interest-bearing checking accounts - 0.05% to 1.00%
(2015- 0.10% to 1.06%)		1,075,929		1,088,651
Certificates of deposit- 0.10% to 4.00% (2015- 0.10% to 5.05%)		2,312,928		2,356,245
Brokered certificates of deposit- 0.60% to 2.80% (2015- 0.45% to 2.80%)		1,439,697		2,097,483
	$	8,831,205	$	9,338,124

The weighted-average interest rate on total interest-bearing deposits as of December 31, 2016 and 2015 was 0.83%.

As of December 31, 2016, the aggregate amount of unplanned overdrafts in demand deposits that were reclassified as loans amounted to $1.0 million (2015 - $1.0 million). Pre-arranged overdrafts lines of credit amounted to $32.9 million as of December 31, 2016 (2015- $32.8 million).

The following table presents the contractual maturities of CDs, including brokered CDs, as of December 31, 2016:

		Total
(In thousands)

Three months or less	$	609,994
Over three months to six months		410,852
Over six months to one year		961,619
Over one year to two years		1,052,030
Over two years to three years		402,077
Over three years to four years		115,771
Over four years to five years		193,899
Over five years		6,383
Total	$	3,752,625

As of December 31, 2016, CDs in denominations of $100,000 or higher amounted to $3.0 billion (2015 - $3.6 billion) including brokered CDs of $1.4 billion (2015 - $2.1 billion) at a weighted-average rate of 1.18% (2015 - 0.97%) issued to deposit brokers in the form of large certificates of deposits that are generally participated out by brokers in shares of less than the FDIC insurance limit. As of December 31, 2016, unamortized broker placement fees amounted to $2.6 million (2015 - $3.9 million), which are amortized over the contractual maturity of the brokered CDs under the interest method.

Brokered CDs mature as follows:

	December 31,
	2016
(In thousands)

Three months or less	$	253,475
Over three months to six months		150,627
Over six months to one year		394,710
One to three years		540,566
Three to five years		98,755
Over five years		1,564
Total	$	1,439,697

As of December 31, 2016, deposit accounts issued to government agencies amounted to $563.7 million (2015 — $577.3 million). These deposits in Puerto Rico and the U.S. Virgin Islands are insured by the FDIC up to the applicable limits, generally $250,000. The uninsured portion were collateralized by securities and loans with an amortized cost of $583.9 million (2015 — $678.8 million) and an estimated market value of $521.3 million (2015 — $600.6 million). As of December 31, 2016, the Corporation had $408.8 million of government deposits in Puerto Rico (2015— $390.4 million) and $154.9 million in the Virgin Islands (2015— $186.9 million).

A table showing interest expense on deposits follows:
		Year Ended December 31,
		2016		2015		2014
(In thousands)
Interest-bearing checking accounts	$	4,914	$	5,440	$	6,446
Savings		12,392		13,660		15,416
Certificates of deposit		28,068		25,246		26,371
Brokered certificates of deposit		21,928		24,904		29,894
Total	$	67,302	$	69,250	$	78,127

The total interest expense on deposits includes the amortization of broker placement fees related to brokered CDs amounting to $2.9 million, $4.6 million, and $6.7 million for 2016, 2015 and 2014, respectively. For 2016 and 2015, includes $0.2 million and $0.6 million, respectively, for the accretion of premium related to time deposits assumed in the Doral Bank transaction in 2015.