Directors of Auswide Bank were not listening to the Treasurer yesterday, when they declared a final dividend that took the bank's dividend payout ratio for 2018/9 to 85 per cent.The board's guideline is for a payout ratio of 70 to 80 per cent but the company said in its financial report that it was comfortable with the high payout, given its strong capital position.The Treasurer, Josh Frydenberg, was reported yesterday saying companies should be investing their capital for growth, rather than paying all their earnings back to shareholders.Auswide reported a result that was free of all the Hayne pain that been an issue for most of the bigger financial institutions.Home loan settlements were worth A$616 million in the year to June, an increase of 13.3 per cent over the previous year. The value of the loan book grew 6.3 per cent to $3.1 billion, which is almost double system growth.One of the highlights for the year was greater geographic diversification, with 24 per cent of its lending portfolio now outside Queensland.Customer deposits grew 12.6 per cent to $2.4 billion. More than 70 per cent of the loan book is funded with deposits.Net interest income was $63.2 million, an increase of 3.6 per cent over the previous year.Net profit was $17.2 million - down 3.8 per cent from $17.9 million in 2017/18. Auswide sold its MoneyPlace business during the 2017/18 financial year. After adjusting for the effect of discontinued operations, the underlying net profit of $17.2 million was 0.5 per cent up on the previous year.The bank's net interest margin fell from 1.93 per cent in 2017/18 to 1.87 per cent. It said the fall was due to a combination of lower interest rates, competitive pressure and higher funding costs in the first three quarters of the financial year.The cost-to-income ratio rose from 63.3 per cent to 64.5 per cent. The bank is targeting a CTI of 60 per cent.The bank will pay a final fully franked dividend of 18.5 cents a share. The interim dividend was 16 cents.The bank's tier 1 capital ratio was 11.76 per cent at June 30, down from 12.68 per cent in 2018.The loan impairment expense fell from $1.3 million in 2017/18 to $1.1 million in the year to June. Arrears greater than 30 days increased from $14.1 million to $14.3 million, representing 0.48 per cent of the total loan book.The bank said it was undertaking a review of its broker business, including its pricing, branding, credit processes and risk settings, systems and sales force effectiveness.In February the bank went live with online personal loan applications. The service, Apply Now, will be extended to include applications for term deposits, transaction accounts and savings accounts in the current financial year.