BANKING

Cost of Funds Drops Again: The 11th District cost of funds index fell to 4.333% in February from 4.360% in January, the Federal Home Loan Bank of San Francisco said. The index, which has declined steadily over the last three years, is used to adjust the mortgage payments of about 8 million homeowners. The index reflects the interest paid by savings institutions in Arizona, California and Nevada, and the decline should eventually lead to lower payments for borrowers with loans linked to the index.