The following financial statement is for the current year. From the past, you know that 10% of fixed-rate mortgages prepay each year. You also estimate that 10% of checkable deposits and 20% of savings accounts are rate-sensitive. What is the current income gap for Second National Bank? What will happen to the bank€™s current net interest income if rates fall by 75 basispoints?

Second National Bank Assets Liabilities $1,500,000 Checkable deposits $15,000,000 Securities 1 to 2 years > 2 years $8,000,000 Savings accounts $12,000,000 CDs Residential mortgages Variable rate Fixed rate $1,500,000 Federal funds 1 to 2 years Buildings, etc. Total $100,000,000