9. The following financial Statement is for the cur, rent year. From the past, you know that or fixed•rate mortgages prepay each year. You also estimate that of checkable deposits and Oi savings accounts are rate-sensitive.

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WTuat is the current income sap for Second National Bank? What happen to the bank's current net interest income if rates fall by 75 basis points?

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Assets Second National Bank Liabilities Reserves Securities <1 year $1,500,000 Checkable deposits 315,000,000 Money market $8,000,000 deposits $5,500,000 1 to 2 years $8,000,000 Savings accounts $8,000,000 >2 years $12,000,000 CDs Residential mortgages Variable-rate $15,000,000 Variable-rate $7,000,000 <1 year $22,000,000 Fixed-mite $13,000,000 1 to 2 years $5,000,000 Commercial loans >2 years $2,500,000 <1 year $1,500,000 Federal funds $5,000,000 1 to 2 years $18,500,000 Borrowings >2 years $30,000,000 <1 year $12,000,000 Buildings, etc. $2,500,000 1 to 2 years $3,000,000 >2 years $2,000,000 Bank capital $5,000,000 Total $100,000,000 Total $100,000,000