COFI Falls to '07 Low

The Eleventh Federal Home Loan District Cost of Funds Index fell to 4.172% in November, its lowest level since the summer of 2006.This represents a decline of 6 basis points from 4.233% in October. COFI is a weighted average index calculated by the Federal Home Loan Bank of San Francisco. According to the FHLBank-SF website, 26 institutions reported COFI data for the month. The average fund level used in determining November's index totaled $397.4 billion, while the total interest expense was $1.381 billion. 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. The index is always reported on the last business day of the following month.