When MyState Ltd was faced with a fall in the value of its loan portfolio in 2013 and 2014 it set about arresting the decline by investing in broker distribution and improving the standard of service in its branches.That strategy has paid off, with MyState reporting growth in its mortgage portfolio above system during the 12 months to June and predicting that it can maintain growth at 1.5 to two times system in the current year.MyState's banking operations are split between Tasmanian-based MyState Bank and North Queensland-based The Rock.The loan book grew by 8.7 per cent to A$3.86 billion.MyState chief executive Melos Sulicich said that as a result of the investment in broker distribution, a quarter of the company's home loan book was now made up of loans written in Victoria and New South Wales.Sulicich said the loan book was growing above system in the current financial year and was likely to continue at that rate.MyState's impairment charge rose from $602,000 to $1.2 million. However, the impairment charge represented only three basis points of total loans and 30-day arrears are only 0.7 per cent.MyState reported net profit of A$28.3 million for the year to June - a fall of 12.9 per cent from the previous year.The company said it made a one-off profit of $3.9 million from the sale of Cuscal shares in 2014/15. In the year to June it included a software intangible impairment of $1 million and incurred $1.8 million of merger and acquisition due diligence.Adjusting for these non-recurring items, MyState reported underlying earnings of $31.1 million - an increase of 4.5 per cent over the previous period.Revenue rose 3.3 per cent to $123.4 million, net interest margin fell 15 basis points to 2.13 per cent and the cost-to-income ratio fell 112 bps to 63.2 per cent.The company's return on equity rose 22 bps to 10.6 per cent. Its common equity tier one ratio fell 109 bps to 11.4 per cent.