She is analyzing the repricing of assets and liabilities and decided to make the following assumptions:

A 1 percentage point increase (decrease) in the market interest rate leads to a 0.3 percentage point increase (decrease) in the rate paid on savings deposits (including money-market deposit accounts).

A 1 percentage point increase (decrease) in the market rate leads to a 0.6 percentage point increase (decrease) in the rate paid on new time deposits.

Banks tax rate = 30 percent.

She also noticed that the fed funds (assets) on the banks balance sheet have an overnight maturity. She is using the repricing model with the assumptions above to analyze how a 2 percentage point increase in the market interest rate would affect the net interest income (NII) and the return on assets (ROA) of the bank.

Estimate how this increase in the market rate affects the banks NII and ROA over a one-year horizon.

State Bank's balance sheet is listed below. Market yields are in parentheses, and amounts are in millions. State Bank's balance sheet is listed below. Market yields are in parentheses, and amounts are in millions