A worrying trend for small lenders during the first half of the financial year, which saw solid growth in new mortgage approvals but negligible growth or even falls in the value of mortgage books, appears to have been reversed in the June half.The trend has seen growth in approvals negated, in many cases, by borrowers taking advantage of low interest rates to accelerate repayment of their loans. Another factor has been intense competition for mortgage refinance business.However, one of those affected, Wide Bay Australia, reported last week that the decline in its loan book was arrested in the June half. Mortgage approvals were up 24.3 per cent to A$414 million in the year to June and the loan book grew 2.8 per cent.Wide Bay reported a net profit of $14.1 million for the year to June - up from a net profit of $2.4 million in the previous corresponding period.Net interest income was down 2.5 per cent to $49.6 million and other income was down 10.5 per cent to $10.2 million.The improved result was largely due to a big reduction in expenses. In the 2012/13 Wide Bay made a $7.4 million provision for impairment against an investment in a financial planning company, Financial Technology.Adjusting for that item, on an underlying cash profit rose 16 per cent.The loan book was worth $2.2 billion at June 30. Deposits and short-term borrowings were unchanged at $1.7 billion.Wide Bay's chairman John Humphrey said in a statement that the company had addressed its lending performance by improving the skills and accountability in the branch network, improved broker distribution and extended its geographic reach from its base in North Queensland to the southern parts of the state.