How is the COFI calculated?
The COFI is a ratio of monthly interest expenses to total funds, adjusted for variation in the number of days in that month, annualized and expressed as a percentage. Interest expenses, the numerator of the calculation, include the total amount of interest reported for the month on all Deposit Accounts, Federal Home Loan Bank advances, and other borrowings. Total funds, the denominator of the calculation, consists of the simple average of the two most recent monthend balances of Deposit Accounts, Federal Home Loan Bank advances, and other borrowings. Because the number of days in each month differs, the resulting quotient is multiplied by an adjustment factor that is calculated by dividing an average month (based on a 12-month, 365-day or 366-day year) by the actual number of days in that month.
