Note

Goodwill and Other Intangible Asset

The Company’s intangible assets (goodwill and core deposit intangible) at

September 30, 2018

consisted of assets recorded in

December 2009

associated with the acquisition of a branch office in Pasadena, Maryland and the acquisition of Fairmount and Fraternity in

September 2015

and

May 2016,

respectively. Only the goodwill related to the branch office acquisition in the amount of

$2.7

million is deductible for tax purposes. We conducted our annual impairment test of goodwill as of

December 31, 2017.

In addition, due to the significant increase in tax expense resulting from the recording of a valuation allowance on our net deferred tax assets in the

fourth

quarter of fiscal

2018,

we concluded that a triggering event had occurred. Therefore, we performed an additional goodwill impairment analysis as of

March 31, 2018.

Based upon the impairment tests performed as of

December 31, 2017

and

March 31, 2018,

the fair values exceeded the carrying values of our only reporting unit. As a result,

impairment to goodwill was recorded for the

2018

fiscal year. The core deposit intangible assets are being amortized straight-line over a life of

eight

years.

The following table presents the changes in the net book value of intangible assets for the

six

months ended

September 30, 2018

and

2017:

			Core deposit
	Goodwill		intangible

Balance April 1, 2017	$	8,563,530	$	739,298
Amortization		-		(63,032	)
Balance September 30, 2017		8,563,530		676,266

			Core deposit
	Goodwill		intangible
Balance April 1, 2018	$	8,563,530	$	613,234
Amortization		-		(63,033	)
Balance September 30, 2018	$	8,563,530	$	550,201

September 30, 2018,

future expected annual amortization associated with the core deposit intangible is as follows:

Year ending March 31,	Amount

2019		63,035
2020		123,737
2021		98,070
2022		98,070
2023		98,070
2024		64,177
2025		5,042
	$	550,201