Ameriana in Indiana Lowers 2Q Profit from Merger-Related Taxes

By Colin Wilhelm August 10, 2015, 11:09 a.m. EDT 1 Min Read

M&A

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First Merchants in Indiana Sells Insurance Group for $18M

The $5.9 billion-asset company sold the subsidiary, First Merchants Insurance Group, on June 12 to USI Insurance Services, an insurance brokerage firm in Valhalla, N.Y.

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Ameriana Bancorp in New Castle, Ind., which is being acquired by First Merchants in Muncie, Ind., lowered its second-quarter profit after it discovered the sale required a higher tax payment.

The $481 million-asset Ameriana retroactively cut its net income by $90,000, or 3 cents per share, to $188,000, or 6 cents. The move was prompted by an increase in Ameriana's income tax from the First Merchants deal.

The income tax increase "was due to the nondeductible nature of a portion of the merger-related expenses incurred" during the second quarter.

The $6.1 billion-asset First Merchants expects its $69 million deal for Ameriana to close in the fourth quarter.

Colin Wilhelm

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