How are the semiannual cost of funds indices calculated and reported?
Each semiannual index is a ratio of interest expenses to funds, annualized and expressed as a percentage, for the six-month period ending June 30 or December 31. The semiannual index for the 11th District is not calculated by averaging the COFI values published for each month in the six-month period. Interest expenses, the numerator of the calculation, include the total amount of interest expense reported during the six-month period on Deposit Accounts, Federal Home Loan Bank advances, and other borrowings. Total funds, the denominator of the calculation, consist of the simple average of the six monthend balances of Deposit Accounts, Federal Home Loan Bank advances, and other borrowings. The primary difference between the COFI and the semiannual index calculations is that the monthend balance for the month preceding the six-month period is not used to calculate average funds for the semiannual index. In addition, no monthly adjustment factor is used, and the ratio is annualized by 2. T
