COFI Breaks 4%

For the first time since August 2001, the Eleventh Federal Home Loan District Cost of Funds Index stands above 4%.According to the Federal Home Loan Bank of San Francisco, the index rose approximately 21 basis points in June, to 4.090%. The month-to-month change is one of the largest since COFI began its upward climb with the June 2004 report. In the past two years, COFI has increased 238 bps. The FHLBank-SF said COFI reporting members had $601.8 billion of total average funds and $2.05 billion of average interest expense. "Averages for a month consist of the simple average of the month-end balances for that month and the prior month for total funds, deposit accounts, advances, and other borrowings," says a note on the FHLBank's website. "The total interest expense is derived from interest expense reported on deposit accounts, Federal Home Loan Bank advances, and other borrowings, adjusted for the number of days in the month."