The run-down in RHG's mortgage portfolio over the past year resulted in a 26 per cent fall in earnings in the year to June 2013.The company, whose board is currently considering competing takeover offers, yesterday reported a net profit of A$30.3 million for the 12 months to June - down from $40.7 million in the previous corresponding period.At the end of June the company had retained earnings of $85.6 million, although this will be reduced after payment of a dividend of three cents a share (worth a total of $9.2 million), which was declared on July 8.RHG manages the remnants of what was the Rams Home Loans' mortgage portfolio. The value of the book fell from $2.8 billion at the end of the 2011/12 financial year to $2.1 billion at the end of June - a run-off rate of 25 per cent.The run-off rate was similar in the previous year - falling 26.3 per cent from $3.8 billion to $2.8 billion.The arrears rate (repayments past due by 30 days or more) was 4.25 per cent. The individually assessed provision for bad and doubtful debts was $4.1 million, and the collective provision was $1.4 million.Material issued to the Australian Securities Exchange yesterday did not provide any additional information on the bids for RHG. The board has entered into a merger implementation deed in respect of a proposal by a syndicate led by Resimac to acquire all of RHG's share for 48 cents a share. The bid values RHG at $148.1 million.The directors have not yet determined whether a competing offer from a syndicate led by Pepper Australia (a combination of cash and scrip with an estimated value of 49.6 cents a share) is superior.The Resimac syndicate has the right to submit a counter offer.