Question · Q3 2025
Chris McGraty asked about the drivers behind the $9 billion surge in commercial interest-bearing deposits during the third quarter, whether it represented new balance sheet activity or a change in client behavior, and the outlook for this trend. He also inquired about expectations for the deposit mix growth heading into next year, given lower rates and the commercial focus of year-over-year growth.
Answer
EVP and CFO Rob Reilly explained that the deposit surge was a combination of new and existing corporate clients, with some customers shifting from sweep accounts and money markets to on-balance sheet deposits due to narrowing rate differentials. Mr. Reilly anticipates further deposit growth next year, with the mix remaining fairly stable, though a slight increase in non-interest-bearing deposits is possible in the fourth quarter.