Question: 1. (5 points) Stark County Bank is looking to increase its net interest income by growing the loan portfolio, but management realizes that it will

1. (5 points) Stark County Bank is looking to increase its net interest income by growing the loan portfolio, but management realizes that it will need to reduce interest rates in order to increase loan balances. To help them decide on Calculate the projected net interest income for the bank (detailed in problem \# 1 from the supporting PDF), assuming they will reduce loan interest rates by 25 basis points from their current level (for example, 5.00% would go to 4.75% ), leading to an increase of 5% in loan balances. Deposit rates will remain unchanged, and equity balances will also not change, but deposit balances will make up the difference in the balance sheet

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