Bank of America reported first-quarter consumer deposits of $1.07 trillion, up 8% year over year and the third consecutive quarter of growth outpacing personal lending demand. Consumer loan balances grew just 1.2% in the same period, the bank disclosed in its 10-Q filing Friday.
The divergence — more cash sitting in accounts while borrowing demand flatlines — reflects what CEO Brian Moynihan called "rational consumer caution" in the face of rate uncertainty. The Fed has held rates steady since its December 2025 cut, and markets are pricing just one additional 25bp reduction in 2026.