What effect, if any, do changes in the COFI Reporting Members or member merger and acquisition activity have on the calculation of the COFI?
The COFI is based on data received from the Bank’s COFI Reporting Members. If a COFI Reporting Member engages in corporate activity, such as changing its charter or merging into an entity with a different charter, the Bank may determine that the resulting entity no longer qualifies as a COFI Reporting Member and will no longer be included in the COFI. Similarly, if a COFI Reporting Member’s Bank membership is terminated, it will no longer be included in the COFI Reporting Members. The impact of removals of COFI Reporting Members on the COFI will depend entirely on the amount of interest expense and total funds of the entity being removed. If an institution with a large amount of interest expense and total funds is removed from the COFI Reporting Members, the impact on the COFI could be significant. As a result of mergers, acquisitions, charter changes, and terminations of Bank membership, the total number of institutions included in the COFI Reporting Members has declined significantly
