Income Taxes (Tables)

12 Months Ended

Mar. 31, 2018

Schedule of Components of Income Tax Expense

The components of income tax (benefit) expense for the years ended March 31 are as follows:



$ in thousands	2018			2017
Income tax expense
Federal:
Current expense	$	174		$	—
Deferred benefit	(340		)	—
Total	(166		)	—
State: Current expense	133			119
Total income tax (benefit) expense	$	(33	)	$	119

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the expected Federal income tax rate to the consolidated effective tax rate for the years ended March 31:



	2018					2017
$ in thousands	Amount			Percent		Amount			Percent
Statutory Federal income tax expense (benefit)	$	1,638		30.8	%	$	(929	)	34.0	%
State and local income tax, net of Federal tax benefit	92			1.7		119			(4.4	)
Impact of income tax rate changes	3,283			61.7		—			—
Credit and NOL adjustments	(2,148		)	(40.4	)	—			—
Change in valuation allowance	(3,061		)	(57.5	)	961			(35.2	)
Other	163			3.1		(32		)	1.2
Total income tax (benefit) expense	$	(33	)	(0.6	)%	$	119		(4.4	)%

Deferred Tax Assets and Liabilities

Tax effects of existing temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are included in other assets at March 31 as follows:



$ in thousands	2018			2017
Deferred Tax Assets:
Allowance for loan losses	$	1,727		$	2,147
Nonaccrual loan interest	109			373
Deferred gain - sale leaseback transactions	2,006			295
Net operating loss carryforward	12,419			17,551
New markets tax credit	3,452			2,207
AMT credits	340			166
Depreciation	1,864			2,018
Unrealized loss on available-for-sale securities	1,105			792
Other	—			350
Total Deferred Tax Assets	23,022			25,899
Deferred Tax Liabilities:
Market value adjustment on HFS loans	54			68
Other	676			812
Total Deferred Tax Liabilities	730			880
Deferred Tax Assets, net	22,292			25,019
Valuation Allowance	(21,952		)	(25,019		)
Deferred Tax Assets, net of valuation allowance	$	340		$	—