IMB Bank has been through a year of transformation, with its transition to a mutual bank last August, the announcement of a merger with Sutherland Credit Union in December and the launch of a number of digital upgrades.So far none of these changes have had any impact on the bank's financial performance, which continued with the modest and prudent progress that has been IMB's hallmark for the past few years.IMB Bank reported a net profit of A$29.5 million for the year to June - down nine per cent on the previous year. The bank made a gain from the sale of its head office building in the 2014/15 financial year and after adjusting for this one-off item, year-on-year earnings performance was steady.Net interest income rose 5.6 per cent to $103.8 million and impairment losses fell from $366,000 to $333,000.Operating expenses rose 8.4 per cent to $75.5 million.IMB Bank chief executive Robert Ryan said in a statement that a highlight was the 19.1 per cent increase in loan approvals. However, the loan book grew only 3.5 per cent to $3.9 billion.Deposits grew by 5.7 per cent to $4.3 billion.Ryan said the bank had focused on maintaining its margin, which was steady at 2.04 per cent.The Sutherland Credit Union merger was completed on July 1, adding about 10,000 members and more than $200 million of assets. The combined group has 190,000 members, 48 branches and more than 500 employees.IMB's investment in digital services includes an online personal loan application system, an online transaction account opening system, a new version of the mobile banking app and an online banking upgrade. IMB also launched social media channels to improve member communication.In July it started installing a new fleet of ATMs, including a number of smart ATMs that can accept cash and cheque deposits.