Unity Bancorp, Inc. announced the purchase of approximately $27.6 million in transferable federal investment tax credits for a total cost of $25.1 million. The company expects this strategic investment to result in a one-time, pre-tax gain of approximately $2.5 million in the third quarter of 2026.
Key Details
- Transaction: On September 10, 2026, the company purchased the tax credits for approximately $0.91 per dollar of credit.
- Financial Impact: The company anticipates a one-time reduction in income tax expense, leading to a corresponding increase in net income of approximately $2.5 million for the quarter ending September 30, 2026.
- Risk Mitigation: The tax credits are subject to a five-year recapture period, for which the company has obtained contractual protections and credit support to mitigate potential losses.