Suppose that Pettis Bank has $100 million in assets which are rate sensitive. Pettis also has $400 million in rate-sensitive liabilities. Pettis seeks to analyze its exposure to interest rate risk by conducting a gap analysis.

Given this information, you have calculated that Pettis Bank has a gap of -$300 million and a gap ratio of 0.25.

If interest rates increase, Pettis net interest margin would be expected to ____

Blank Options: decrease or increase