DEPOSITS

12 Months Ended

Dec. 31, 2020

Deposits [Abstract]

DEPOSITS [Text Block]

NOTE 16 – DEPOSITS AND RELATED INTEREST

The following table summarizes deposit balances as of the dates indicated:
	December 31,
	2020		2019
(In thousands)
Type of account and interest rate:
Non-interest-bearing deposit accounts	$	4,546,123	$	2,367,856
Interest-bearing savings accounts - 0.05% to 1.40% (2019- 0.05% to 2.00%)		4,088,969		2,437,345
Interest-bearing checking accounts - 0.05% to 1.75% (2019- 0.05% to 1.00%)		3,651,806		1,412,390
Certificates of deposit ("CDs")- 0.10% to 4.75% (2019- 0.10% to 4.00%)		2,814,313		2,695,749
Brokered CDs- 0.85% to 2.75% (2019- 1.20% to 3.00%)		216,172		435,089
	$	15,317,383	$	9,348,429

The weighted-average interest rate on total interest-bearing deposits as of December 31, 2020 and 2019 was 0.55% and 1.18%, respectively.

As of December 31, 2020, the aggregate amount of unplanned overdrafts of demand deposits that were reclassified as loans amounted to $0.8 million (2019 - $4.1 million). Pre-arranged overdrafts lines of credit amounted to $26.0 million as of December 31, 2020 (2019 - $28.6 million).

The following table presents the contractual maturities of CDs, including brokered CDs, as of December 31, 2020:
		Total
(In thousands)
Three months or less	$	658,417
Over three months to six months		527,542
Over six months to one year		779,370
Over one year to two years		594,688
Over two years to three years		252,014
Over three years to four years		135,653
Over four years to five years		68,260
Over five years		14,541
Total	$	3,030,485

As of December 31, 2020, CDs in denominations of $100,000 or higher amounted to $2.3 billion (2019 - $2.4 billion) including brokered CDs of $216.1 million (2019 - $434.8 million) at a weighted-average rate of 2.00% (2019 - 2.15%) 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, 2020, unamortized broker placement fees amounted to $0.4 million (2019 - $0.9 million), which are amortized over the contractual maturity of the brokered CDs under the interest method. As of December 31, 2020, time deposits in denominations of $250,000 or more amounted to $1.0 billion (2019 - $1.3 billion).

Brokered CDs mature as follows:
	December 31,
	2020
(In thousands)
Three months or less	$	54,118
Over three months to six months		24,502
Over six months to one year		37,287
Over one year to three years		77,953
Over three years to five years		22,312
Total	$	216,172

As of December 31, 2020, deposit accounts issued to government agencies amounted to $2.1 billion (2019 - $1.1 billion). These deposits are insured by the FDIC up to the applicable limits, generally $250,000. The uninsured portions were collateralized by securities and loans with an amortized cost of $2.0 billion (2019 - $780.9 million) and an estimated market value of $2.1 billion (2019 - $769.6 million). In addition, as of December 31, 2019, the Corporation used $212.0 million in letters of credit issued by the FHLB as pledges for public deposits in the Virgin Islands. As of December 31, 2020, the Corporation had $1.8 billion of government deposits in Puerto Rico (2019 - $826.9 million), $280.2 million in the Virgin Islands (2019 - $227.7 million) and $9.7 million in Florida (2019 - $7.6 million).

A table showing interest expense on deposits for the indicated periods follows:
		Year Ended December 31,
		2020		2019		2018
(In thousands)
Interest-bearing checking accounts	$	5,933	$	6,071	$	5,208
Savings		11,116		16,017		14,298
CDs		43,350		44,658		33,652
Brokered CDs		7,989		11,036		14,493
Total	$	68,388	$	77,782	$	67,651

The total interest expense on deposits included the amortization of broker placement fees related to brokered CDs amounting to $0.5 million, $0.7 million, and $1.2 million for 2020, 2019 and 2018, respectively. For 2020, total interest expense included $1.0 million for the accretion of premiums related to time deposits assumed in the BSPR acquisition. Refer to Note 2 – Business Combination, for additional information.