A reorganisation of its mortgage insurance arm helped regional bank Wide Bay Australia report a profit increase of 30 per cent to $22.3 million in the year to June 2010.Mortgage Risk Management contributed a "surplus", to quote Wide Bay, of $2.9 million for the year. APRA data shows MRM incurred a loss of $600,000 in the year to December 2009.Wide Bay reorganised its captive insurer during 2008 after the downgrading of the credit rating of its reinsurer, Radian. Genworth and QBE now reinsure loans, or provide mortgage insurance outright of loans with high loan to valuation ratios.The Bundaberg-based lender said its margin was more or less steady at 2.09 per cent for the year.Loans increased five per cent over the year to $2.3 billion. It approved loans of $370 million over the year.The bad debt expense for the year was $600,000 with about two thirds relating to further write-off of leases associated with the now closed Mini Lease business.Wide Bay remains interested in diversifying its income and said it planned to "develop some limited commercial lending during the year."Management pay at Wide Bay remains uneven. Ron Hancock, the managing director, earned $1.1 million in 2010, almost all of it his base pay with no bonus, and in line with 2009.This is still around four times the pay packet of the next best paid executive, the firm's operations manager Ian Pokarier.