MyState, a bank with a national market share of around one quarter of one per cent, passed "an important milestone" during the year, "as loans outside Tasmania increased to more than 50 per cent for the first time." This detracted from earnings, with a decline in net profit of three per cent to A$30.1 million for the year to June 2017.Lower profit emerged at a time of overall fast growth for the Tasmanian-centred bank. MyState said its loan book swelled 11 per cent to $4.3 billion, a strategic choice to complement the suite of technology projects.Growth in the NSW home loan book lifted this component of receivables from $421 million to $754 million.This growth extracted a price, with the interest margin falling by 20 basis points to 1.93 per cent across the year.However, the bank said it "delivered a flat net interest margin profile across the two halves of the year."Melos Sulicich, the bank's CEO, wrote in an overview that the reduction in earnings "reflected a competitive environment and a period in which we delivered a number of very significant transformational technology projects."Sulicich said the bank "expects to see operating cost reductions and revenue gains " following "consolidation of our core banking strategy."Recent projects singled out include a refreshed contact centre system and CRM, consolidated data centres and improved online origination for deposit accounts and personal loans.