The cost of researching takeover targets and the correction of an accounting error over the treatment of problem loans put Wide Bay Australia's profit into reverse for the half year to December 2012.Net profit for the group fell 36 per cent, to A$5.6 million, in the half year.Wide Bay said it spent $700,000 on "due diligence and adviser costs as the company actively tried to grow the business through acquisition."The Bundaberg-based lender said it also overstated its profit in June 2012 by $1.5 million. It said a review of systems and policies relating to hardship led to a rise in the previous estimate of arrears and the amounts set aside for claims through its captive mortgage insurance arm, Mortgage Risk Management. This latter business is in run off.The loss for MRM for the half year was $994,000, compared with a profit of $67,000 for the previous 12 months.Wide Bay said it "managed to maintain its margin in the range of two per cent" (at 1.97 per cent) for the half.  It said loan approvals for the half were $160 million; this was up on a year ago but low by historical standards.Wide Bay said the recent severe weather in the Wide Bay area of Queensland will affect future profits. It said it was "evaluating financial data as it became available."Having failed to put out a profit warning, shares in Wide Bay fell 16 per cent, to $5.82, on Friday.