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.