April 17 Reuters Deposits at three financial institutions fell in the first quarter as the industry39;s biggest crisis in more than a decade prompted a flight of funds, with customers seeking better returns elsewhere.

Deposits at custodian bank State Street Corp and regional bank MT Bank Corp fell 3 each, while those at Charles Schwab Corp shrank 11 from the prior quarter.

State Street39;s stock plunged 9.2 to close at 72.68 on Monday, dragging down peers Northern Trust Corp and Bank of New York Mellon Corp, while shares of brokerage and financial advisory firm Schwab closed 3.9 higher and MT Bank shares were up nearly 8.

The results mark a mixed start to a busy week during which a number of regional lenders are expected to report earnings and the impact from the crumbling of two banks last month.

Investors will also be parsing executive commentary for details on the economic impact from the Federal Reserve39;s quantitative tightening, which has boosted income earned via lending but has, at the same time, fueled uncertainty.

Both Schwab and MT Bank rode a surge in interest income to beat profit expectations, but State Street fell short after an outflow of client funds hurt its fees.

Credit Suisse analyst Susan Katzke wrote in a research note that State Street39;s earnings fell short of estimates due to lowerthanexpected net interest income. The firm showed heavier outflows from noninterest bearing accounts, Katzke wrote.

There is growing competition for deposits….