10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______________ to _____________

Commission file number: 0-55087   

DELANCO BANCORP, INC.

(Exact name of small business issuer as specified in its charter)

New Jersey   (State or Other Jurisdiction of Incorporation or Organization) 80-0943940  (I.R.S. Employer Identification No.)

615 Burlington Avenue, Delanco, New Jersey 08075

(Address of Principal Executive Offices)

(856) 461-0611

(Issuer’s telephone number)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   ☐	Accelerated filer   ☐
Non-accelerated filer     ☐	Smaller reporting company  ☒
(Do not check if a smaller reporting company)	Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 

No ☒

As of August 7, 2017 there were 945,425 shares of the registrant’s common stock outstanding.

DELANCO BANCORP, INC.

FORM 10-Q

Index

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Statements of Financial Condition at June 30, 2017 (Unaudited) and March 31, 2017	2
	Consolidated Statements of Operations for the Three Months Ended June 30, 2017 and 2016 (Unaudited)	3
	Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2017 (Unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended June 30, 2017 (Unaudited)	5
	Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2017 and 2016 (Unaudited)	6
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults upon Senior Securities	30
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	31
Signatures		32

1

Part I. Financial Information

Item 1. Financial Statements

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

	June 30, 2017			March 31, 2017
	(unaudited)
ASSETS
Cash and cash equivalents
Cash and amounts due from banks	$	390,772		$	511,355
Interest-bearing deposits		6,825,755			6,487,188
Total cash and cash equivalents		7,216,527			6,998,543
Investment securities:
Securities available-for-sale (amortized cost of $2,582,944 and $2,588,817 at June 30, 2017 and March 31, 2017, respectively)		2,591,470			2,594,888
Securities held-to-maturity (fair value $21,954,235 and $21,797,695 at June 30, 2017 and March 31, 2017, respectively)		22,575,925			22,622,835
Total investment securities		25,167,395			25,217,723
Loans, net of allowance for loan losses of $1,005,316 at June 30, 2017 (unaudited), $1,001,449 at March 31, 2017		83,825,378			84,414,361
Accrued interest receivable		356,505			378,243
Real estate owned		1,219,083			1,271,302
Federal Home Loan Bank, at cost		122,400			124,300
Premises and equipment, net		5,995,473			6,047,703
Deferred income taxes		1,906,470			1,981,950
Bank-owned life insurance		178,514			178,514
Other assets		268,487			374,714
Total assets	$	126,256,232		$	126,987,353
LIABILITIES
Deposits
Non-interest bearing deposits	$	10,661,622		$	11,703,567
Interest bearing deposits		100,534,848			100,377,179
Total deposits		111,196,470			112,080,746
Accrued interest payable		5,762			6,273
Advance payments by borrowers for taxes and insurance		526,770			500,485
Other liabilities		966,516			908,005
Total liabilities		112,695,518			113,495,509
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at June 30, 2017 and March 31, 2017, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at June 30, 2017 and March 31, 2017	$	9,454		$	9,454
Additional paid-in capital		10,040,983			10,029,506
Retained earnings, substantially restricted		4,092,385			4,036,465
Unearned common stock held by employee stock ownership plan		(455,514	)		(455,514	)
Accumulated other comprehensive (loss)		(126,594	)		(128,067	)
Total stockholder’s equity		13,560,714			13,491,844
Total liabilities and stockholders’ equity	$	126,256,232		$	126,987,353

See Notes to the Unaudited Consolidated Financial Statements.

2

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Unaudited)

	Three Months Ended June 30,
	2017			2016
INTEREST INCOME
Loans	$	898,979		$	892,478
Investment securities		157,521			174,933
Total interest income		1,056,500			1,067,411
INTEREST EXPENSE
Interest-bearing checking accounts		8,338			10,741
Passbook and money market accounts		30,977			29,667
Certificates of deposits		84,295			91,440
Federal Home Loan Bank Advances		15			2,748
Total interest expense		123,625			134,596
Net interest income		932,875			932,815
Recapture of loan loss		(20,000	)		(48,000	)
Net interest income after recapture for loan losses		952,875			980,815
NON-INTEREST INCOME
(Loss) on sale of real estate owned		−			(5,532	)
Gain on sale of an asset		71,516			−
Service charges		29,020			32,835
Rental income		9,600			12,435
Other		4,107			3,480
Total non-interest income		114,243			43,218
NON-INTEREST EXPENSE
Salaries and employee benefits		410,376			397,028
Advertising		4,218			4,565
Office supplies, telephone and postage		26,100			25,232
Loan expenses		13,373			28,376
Net occupancy expense		141,094			143,376
Real estate loss reserve		52,218			13,100
Federal insurance premiums		22,031			42,798
Data processing expenses		61,817			64,614
ATM expenses		11,443			6,305
Bank charges and fees		22,141			21,493
Insurance and surety bond premiums		20,621			21,107
Dues and subscriptions		7,238			11,529
Professional fees		80,783			54,851
Real Estate Owned expense		27,980			32,585
Other		36,517			34,162
Total non-interest expense		937,950			901,121
INCOME BEFORE INCOME TAX EXPENSE		129,168			122,912
Income tax expense		73,248			63,095
NET INCOME	$	55,920		$	59,817
INCOME PER COMMON SHARE	$	0.06		$	0.07

See Notes to the Unaudited Consolidated Financial Statements.

3

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

Three Months Ended
	June 30, 2017		June 30, 2016
Net income	$	55,920	$	59,817
Unrealized gain (loss) available for sale:
Unrealized holding gain (loss), net of deferred tax (benefit) of 3,411 and $16,918 in 2017 and 2016		1,473		8,388
Total other comprehensive income	$	57,393	$	68,205

See Notes to the Unaudited Consolidated Financial Statements

4

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Common Stock								Unearned Employee			Accumulated
	Shares		Amount		Additional Paid-in Capital		Retained Earnings		Stock Ownership Plan			Other- Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at March 31, 2017		945,425		9,454	$	10,029,506	$	4,036,465		(455,514	)		(128,067	)		13,491,844
Comprehensive income
Net income								55,920								55,920
Other comprehensive income, net of tax:													1,473			1,473
Employee stock option expense						11,477										11,477
Balance at June 30, 2017		945,425		9,454		10,040,983		4,092,385		(455,514	)		(126,594	)		13,560,714

See Notes to the Unaudited Consolidated Financial Statements.

5

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended June 30,
	2017			2016
Cash flow from operating activities
Net Income	$	55,920		$	59,817
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes		74,498			61,894
Depreciation		58,629			66,152
Discount accretion net of premium amortization		121			(26,763	)
Recapture for loan losses		(20,000	)		(48,000	)
Loss on sale of real estate owned		−			5,532
Gain on sale of an asset		(71,516	)		−
Compensation expense for stock options		11,477			8,805
Changes in operating assets and liabilities
(Increase) decrease in:
Accrued interest receivable		21,738			42,986
Other assets		106,227			98,178
Increase (decrease) in:
Accrued interest payable		(511	)		(530	)
Other liabilities		58,511			139,163
Net cash provided by operating activities	$	295,094		$	407,234
Cash flows from investing activities
Proceeds of securities available for sale		505,873			5,822
Purchases of securities available for sale		(500,000	)		(500,000	)
Purchases of securities held-to-maturity		−			(7,500,000	)
Proceeds from maturities and principal repayments of securities held-to-maturity		46,789			13,875,845
Redemption of investment required by law – stock in Federal Home Loan Bank		1,900			84,500
Proceeds from sale of real estate owned		−			284,233
Net (increase) in loans		732,718			(1,362,764	)
Purchases of premises and equipment		(6,399	)		(5,545	)
Net cash provided by(used in) investing activities	$	780,881		$	4,882,091
Cash flows from financing activities
(Decrease) in deposits		(884,276	)		(399,996	)
Increase in advance payments by borrowers for taxes and insurance		26,285			20,203
(Decrease) in Federal Home Loan Bank Advances		−			(2,000,000	)
Net cash used in financing activities	$	(857,991	)	$	(2,379,793	)

6

	Three Months Ended June 30,
	2017		2016
Net (decrease) increase in cash and cash equivalents	$	217,984	$	2,909,532
Cash and cash equivalents, beginning of the period		6,998,543		12,127,388
Cash and cash equivalents, end of period	$	7,216,527	$	15,036,920
Supplemental Disclosures:
Cash paid during the period for interest	$	135,217	$	142,978
Cash paid during the period for income taxes	$	2,500	$	2,500
Loans transferred to foreclosed real estate during the period	$	−	$	110,624
Net change in unrealized gain (loss) on securities available-for-sale net of tax	$	1,473	$	8,388

See Notes to the Unaudited Consolidated Financial Statements.

7

DELANCO BANCORP, INC. AND SUBSIDIARY

Notes to the Unaudited Consolidated Financial Statements

June 30, 2017

(1) Basis of Presentation

On October 16, 2013, Delanco Bancorp, Inc., a New Jersey corporation (the “Company”), became the holding company for Delanco Federal Savings Bank (the “Bank”) upon completion of the “second-step” conversion of the Bank from a mutual holding company structure to a stock holding company structure (the “Conversion”). The Conversion involved the sale by the Company of 525,423 shares of common stock in a subscription and community offering, including shares purchased by the Bank’s employee stock ownership plan, the exchange of 420,002 shares of common stock of the Company for shares of common stock of the former Delanco Bancorp, Inc. (“old Delanco Bancorp”) held by persons other than Delanco MHC (the “MHC”), and the elimination of old Delanco Bancorp and the MHC. Net proceeds received from the reorganization and stock offering totaled $3,280,000, net of costs of $923,000.

The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). However, all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. Such adjustments were of a normal recurring nature. The results of operations for the three month period ended June 30, 2017 are not necessarily indicative of the results that may be expected for the entire year or any other interim period. For additional information, refer to the consolidated financial statements and footnotes thereto of the Company included in the Company’s annual report on Form 10-K for the year ended March 31, 2017.

(2) Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for losses on loans and the evaluation of deferred taxes.

(3)  Deferred Income Taxes

We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are reviewed on a continual basis as regulatory and business factors change.

The calculation of deferred taxes for GAAP capital differs from the calculation of deferred taxes for regulatory capital. For regulatory capital, deferred tax assets that are dependent upon future taxable income for realization are limited to the lesser of either the amount of deferred tax assets that the institution expects to realize within one year of the calendar quarter-end date, or 10% of the Bank’s Tier I capital. As a result of this variance, our Tier I regulatory capital ratio is lower than our GAAP capital ratio by 113 basis points.

8

(4) Income Taxes

 The Bank accounts for uncertainties in income taxes in accordance with Financial ASC Topic 740 “Accounting for Uncertainty in Income Taxes”. ASC Topic 740 prescribes a threshold and measurement process for recognizing in the financial statements a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  The Bank has determined that there are no significant uncertain tax positions requiring recognition in its financial statements.   

Tax year 2016 remains subject to examination by Federal and 2014 through 2016 by New Jersey taxing authorities. In the event the Bank is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense.

(5) Earnings Per Share

Basic earnings per share (“EPS”) are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.

The difference between the common shares issued and the common shares outstanding for the purposes of calculating basic EPS is a result of the unallocated ESOP shares.

The calculated basic and dilutive EPS are as follows:

	Three Months Ended June 30,
	2017		2016
Numerator	$	55,920	$	59,817
Denominators:
Basic shares outstanding		910,239		906,720
Effect of dilutive securities		7,449		3,290
Dilutive shares outstanding		917,688		910,010
Earnings per share:
Basic	$	0.06	$	0.07
Dilutive	$	0.06	$	0.07

(6) Regulatory Agreement      

On December 17, 2012, the Bank received a formal written agreement (the “Agreement”) with the Office of the Comptroller of the Currency (the “OCC”) dated November 21, 2012.  The Agreement supersedes and terminates the Order to Cease and Desist entered into by and between the Bank and the Office of Thrift Supervision on March 17, 2010.

9

The Agreement requires the Bank to take the following actions:

● prepare a three-year strategic plan that establishes objectives for the Bank’s overall risk profile, earnings performance, growth, balance sheet mix, liability structure, reduction in the volume of nonperforming assets, and product line development;

● prepare a capital plan that includes specific proposals related to the maintenance of adequate capital, identifies strategies to strengthen capital if necessary and includes detailed quarterly financial projections.  If the OCC determines that the Bank has failed to submit an acceptable capital plan or fails to implement or adhere to its capital plan, then the OCC may require the Bank to develop a contingency capital plan detailing the Bank’s proposal to sell, merge or liquidate the Bank;

● prepare a criticized asset plan that will include strategies, targets and timeframes to reduce the Bank’s level of criticized assets;

● implement a plan to improve the Bank’s credit risk management and credit administration practices;

● implement programs and policies related to the Bank’s allowance for loan and lease losses, liquidity risk management, independent loan review and other real estate owned;

● review the capabilities of the Bank’s management to perform present and anticipated duties and to recommend and implement any changes based on such assessment;

● not pay any dividends or make any other capital distributions without the prior written approval of the OCC;

● not make any severance or indemnification payments without complying with regulatory requirements regarding such payments; and

● comply with prior regulatory notification requirements for any changes in directors or senior executive officers.

We have submitted strategic and capital plans to the OCC and have developed the other plans and policies required by the written agreement. The written agreement will remain in effect until terminated, modified, or suspended in writing by the OCC. 

The Agreement does not require the Bank to maintain any specific minimum regulatory capital ratios. Separately, the OCC established higher individual minimum capital ratios for the Bank. Specifically, the Bank must maintain a Tier 1 capital to adjusted total assets ratio of at least 8%, a Tier 1 capital to risk-weighted assets ratio of at least 12% and a total capital to risk-weighted assets ratio of at least 13%. The Bank's ratios of Tier 1 capital to adjusted total assets, Tier 1 capital to risk-weighted assets and total capital to risk-weighted assets at June 30, 2017 were 9.26%, 16.52% and 17.78%, respectively.

(7) Recent Accounting Pronouncements

In March 2017, the FASB issued ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This Accounting Standards update amends guidance on the amortization period of premiums on certain purchased callable debt securities. Specifically, the amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company does not currently hold any callable debt securities with a premium. As a result, the Company does not anticipate an impact to the consolidated financial statements.

10

Also in March 2017, the FASB issued ASU 2017-07: Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Topic 715, Compensation—Retirement Benefits, requires an entity to present net periodic pension cost and net periodic postretirement benefit cost as a net amount that may be capitalized as part of an asset where appropriate, Users have communicated that the service cost component generally is analyzed differently from the other components of net periodic pension cost and net periodic postretirement benefit cost. To improve the consistency, transparency, and usefulness of financial information for users, the amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company's current-accounting treatment and presentation of net periodic pension cost and not periodic postretirement benefit cost is consistent with the provisions in ASU-2017. As a result, the Company does not anticipate an impact to the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-03: Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323). The amendments in this update add and amend SEC paragraphs pursuant to the SEC Staff Announcements at the September 22, 2016 and November 17, 2016 Emerging Issues Task Force (EITF) meetings. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in January 2017, the FASB issued ASU 2017-01: Business Combinations (Topic 805), Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update affect all reporting entities that must determine whether they have acquired or sold a business. Public business entities should apply the amendments in this update to annual periods beginning after December 15, 2017, including interim periods within those periods. The Company intends to comply with the effective date of this update and does not anticipate an impact to the consolidated financial statements at this time.

In December 2016, the FASB issued ASU 2016-20; Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The amendments in this update cover a variety of Topics in the Codification related to the new revenue recognition standard (Accounting Standards Update No. 2014-09). The amendments in this update represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does not anticipate a material impact to the consolidated financial statements.

Also in December 2016, the FASB issued ASU 2016-19: Technical Corrections and Improvements. The amendments in this update cover a wide range of Topics in the Codification. The amendments in this update represent changes to make corrections or improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does not anticipate a material impact to the consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB Emerging Task Force. Stakeholders indicated that diversity exists in the classification and presentation of changes in restricted cash on the statement of cash flows under Topic 230. Statement of Cash Flows. This update addresses that diversity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should he included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The Company evaluated the amendments of this update and does not anticipate an impact to the consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15: Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments arc presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This update addresses the following eight cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from foe settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this update apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company does not anticipate a material impact to the consolidated financial statements at this time.

11

In June 2016, the FASB issued ASU 2016-13: Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Topic 326 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this update are effective for fiscal years beginning after December 15, 2019. The Company is in the process of evaluating the impact of this guidance but expects that the impact will likely be material to the consolidated financial statements.

In May 2016, the FASB issued ASU 2016-12: Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in this update address narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The amendments in this update affect the guidance in Accounting Standards Update No, 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The Company does not anticipate a material impact to the consolidated financial statements at this time.

In April 2016, the FASB issued ASU 2016-10: Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this update clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements in Topic 606. The Company does not anticipate a material impact to the consolidated financial statements at this time.

In March 2016, the FASB issued ASU 2016-09: Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The Board is issuing this update as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition, the amendments in this update eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No, 123 (revised 2004), Share-Based Payment. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in March 2016, the FASB issued ASU 2016-08: Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments in this update clarify the implementation guidance included in Topic 606 on principal versus agent considerations. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements in Topic 606. The Company does not anticipate a material impact to the consolidated financial statements at this time.

12

Also in March 2016, the FASB issued ASU 2016-07: Investments – Equity Method and Joint Ventures (Topic 323). To simplify the accounting for equity method investments, the amendments in this update eliminate the requirement in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in March 2016, the FASB issued ASU 2016-05: Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this update clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company does not anticipate a material impact to the consolidated financial statements at this time.

Also in March 2016, the FASB issued ASU 2016-04: Liabilities— Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products. When an entity sells a prepaid stored-value product (such as gift cards, telecommunication cards, and traveler's checks), it recognizes a financial liability for its obligation to provide the product holder with the ability to purchase goods or services at a third-party merchant. When a prepaid stored-value product goes unused wholly or partially for an indefinite time period, the amount that remains on the product is referred to as breakage. There currently is diversity in the methodology used to recognize breakage. Subtopic 405-20 includes derecognition guidance for both financial liabilities and nonfinancial liabilities, and Topic 606. Revenue from Contracts with Customers, includes authoritative breakage guidance but excludes financial liabilities. The amendments in this update provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606, The amendments in this update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Earlier application is permitted, including adoption in an interim period. The Company does not anticipate a material impact to the consolidated financial statements at this time.

(8) Fair Value of Financial Instruments

ASC Topic 820-10 defines fair value, establishes a framework for measuring fair value in U.S. generally accepted accounting principles, and expands disclosure requirements for fair value measurements. ASC Topic 820 does not require any new fair value measurements. The adoption of ASC Topic 820-10 did not have a material impact on the consolidated financial statements.

ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as described below:

                ●  Level 1 Level 1 input are unadjusted quoted prices in active markets for identical assets or liabilities.

                ●  Level 2 Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable inputs other than quoted prices such as interest rates.

                ●  Level 3 Level 3 inputs are unobservable inputs.

13

Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
June 30, 2017
Available-for-sale securities	$	−	$	2,591	$	−
March 31, 2017
Available-for-sale securities	$	−	$	2,595	$	−

Assets and Liabilities on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis at June 30, 2017 and March 31, 2017 are as follows (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
June 30, 2017
Impaired loans	$	−	$	−	$	4,533
Real estate owned		−		−		1,219
Total	$	−	$	−	$	5,752
March 31, 2017
Impaired loans	$	−	$	−	$	4,883
Real estate owned		−		−		1,271
Total	$	−	$	−	$	6,154

The fair value of impaired loans and real estate owned is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.

A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input significant to the fair value measurement.

14

As required by ASC Topic 825-10-65, the estimated fair value of financial instruments at June 30, 2017 and March 31, 2017 was as follows:

	June 30, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	7,217	$	7,217	$	−	$	−
Investment securities-available for sale		2,583		−		2,951		−
Investment securities-held to maturity		22,576		−		21,954		−
Loans receivable – net		83,825		−		−		84,235
FHLB stock		122		122		−		−
Accrued interest receivable		357		357		−		−
Bank–owned life insurance		179		179		−		−
Real estate owned		1,219		−		−		1,219
Total financial assets	$	118,078	$	7,875	$	24,905	$	85,454
Financial Liabilities:
Deposits- non-interest bearing	$	10,662	$	10,662	$	−	$	−
Deposits – interest bearing		100,535		−		100,225		−
Advances from Federal Home Loan Bank		−		−		−		−
Advance payments by borrowers for taxes and insurance		527		527		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	111,730	$	11,195	$	100,225	$	−

	March 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	6,999	$	6,999	$	−	$	−
Investment securities-available for sale		2,589		−		2,595		−
Investment securities-held to maturity		22,623		−		21,798		−
Loans receivable,– net		84,414		−		−		83,833
FHLB stock		124		124		−		−
Accrued interest receivable		378		378		−		−
Bank-owned life insurance		179		179		−		−
Real estate owned		1,271		−		−		1,271
Total financial assets	$	118,577	$	7,680	$	24,393	$	85,104
Financial Liabilities:
Deposits-non-interest bearing	$	11,704	$	11,704	$	−	$	−
Deposits-interest bearing		100,377		−		99,183		−
Advances from Federal Home Loan Bank		−		−		−		−
Advance payments by borrowers for taxes and insurance		500		500		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	112,587	$	12,210	$	99,183	$	−

15

Off-balance sheet instruments

Off-balance sheet instruments are primarily comprised of loan commitments and unfunded lines of credit which are generally priced at market rate at the time of funding. Therefore, these instruments have nominal value prior to funding.

	June 30, 2017				March 31, 2017
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	6,682	$	−	$	6,620	$	−

9) Loans

The Bank monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Bank monitors the performance of its loan portfolio and estimates its allowance for loan losses.

Residential real estate loans consist of loans secured by one to four family residences located in the Bank’s market area. The Bank has originated one to four family residential mortgage loans in amounts up to 80% of the lesser of the appraised value or selling price of the mortgaged property without requiring mortgage insurance. A mortgage loan originated by the Bank, for owner occupied property, whether fixed rate or adjustable rate, can have a term of up to 30 years. Non-owner occupied property, whether fixed rate or adjustable rate, can have a term of up to 30 years. Adjustable rate loan terms limit the periodic interest rate adjustment and the minimum and maximum rates that may be charged over the term of the loan based on the type of loan.

Commercial real estate loans are generally originated in amounts up to the lower of 80% of the appraised value or cost of the property and are secured by improved property such as multi-family dwelling units, office buildings, retail stores, warehouses, church buildings and other non-residential buildings, most of which are located in the Bank’s market area. Commercial real estate loans are generally made with fixed interest rates which mature or re-price in 5 to 7 years with principal amortization of up to 25 years.

Commercial loans include short and long-term business loans and commercial lines of credit for the purposes of providing working capital, supporting accounts receivable, purchasing inventory and acquiring fixed assets. The loans generally are secured by these types of assets as collateral and/or by personal guarantees provided by principals of the borrowers.

Construction loans will be made only if there is a permanent mortgage commitment in place. Interest rates on commercial construction loans are typically in line with normal commercial mortgage loan rates, while interest rates on residential construction loans are slightly higher than normal residential mortgage loan rates. These loans usually are adjustable rate loans and generally have terms of up to one year.

Consumer loans include installment loans and home equity loans, secured by first or second mortgages on homes owned or being purchased by the loan applicant. Home equity term loans and credit lines are credit accommodations secured by either a first or second mortgage on the borrower’s residential property. Interest rates charged on home equity term loans are generally fixed; interest on credit lines is usually a floating rate related to the prime rate. The Bank generally requires a loan to value ratio of less than or equal to 80% of the appraised value, including any outstanding prior mortgage balance.

16

Loans at June 30, 2017 and March 31, 2017 are summarized as follows (dollars in thousands):

	June 30,			March 31,
	2017			2017
Residential (one-to four-family) real estate	$	60,471		$	61,419
Multi-family and commercial real estate		11,677			12,071
Commercial		2,194			1,858
Home equity		9,021			8,812
Consumer		615			637
Construction		912			680
Total loans		84,890			85,477
Net deferred loan origination fees		(60	)		(62	)
Allowance for loan losses		(1,005	)		(1,001	)
Loans, net	$	83,825		$	84,414

The Bank is subject to a loans-to-one-borrower limitation of 15% of capital funds. At June 30, 2017, the loans-to-one-borrower limitation was $1.9 million; this excluded an additional 10% of adjusted capital funds or approximately $1.3 million, which may be loaned if collateralized by readily marketable securities. At June 30, 2017, there were no loans outstanding or committed to any one borrower, which individually or in the aggregate exceeded the Bank’s loans to-one-borrower limitations of 15% of capital funds.

A summary of the Bank’s credit quality indicators is as follows:

Pass – A credit which is assigned a rating of Pass shall exhibit some or all of the following characteristics:

a. Loans that present an acceptable degree of risk associated with the financing being considered as measured against earnings and balance sheet trends, industry averages, etc. Actual and projected indicators and market conditions provide satisfactory evidence that the credit will perform as agreed.

b. Loans to borrowers that display acceptable financial conditions and operating results. Debt service capacity is demonstrated and future prospects are considered good.

c. Loans to borrowers where a comfort level is achieved by the strength of the cash flows from the business or project and the strength and quantity of the collateral or security position (i.e.; receivables, inventory and other readily marketable securities) as supported by a current valuation and/or the strong capabilities of a guarantor.

Special Mention – Loans on which the credit risk requires more than ordinary attention by the Loan Officer. This may be the result of some erosion in the borrower’s financial condition, the economics of the industry, the capability of management, or changes in the original transaction. Loans which are currently sound yet exhibit potentially unacceptable credit risk or deteriorating long term prospects, will receive this classification. Loans which deviate from loan policy or regulations will not generally be classified in this category, but will be separately reported as an area of concern.

Classified – Classified loans include those considered by the Bank to be substandard, doubtful or loss.

An asset is considered “substandard” if it involves more than an acceptable level of risk due to a deteriorating financial condition, unfavorable history of the borrower, inadequate payment capacity, insufficient security or other negative factors within the industry, market or management. Substandard loans have clearly defined weaknesses which can jeopardize the timely payment of the loan.

Assets classified as “doubtful” exhibit all of the weaknesses defined under the substandard category but with enough risk to present a high probability of some principal loss on the loan, although not yet fully ascertainable in amount.

Assets classified as “loss” are those considered uncollectible or of little value, even though a collection effort may continue after the classification and potential charge-off.

17

      Non-Performing Loans

Non-performing loans consist of non-accrual loans (loans on which the accrual of interest has ceased), loans over ninety days delinquent and still accruing interest, renegotiated loans and impaired loans. Loans are generally placed on non-accrual status if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more, unless the collateral is considered sufficient to cover principal and interest and the loan is in the process of collection.

The Bank continues to work with its borrowers where possible and is pursuing legal action where the ability to work with the borrower does not exist.  As of June 30, 2017, the Bank has entered into formal forbearance agreements with six relationships totaling $864 thousand that require current payments while the borrowers restructure their finances

The following table represents loans by credit quality indicator at June 30, 2017 (dollars in thousands):

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	57,866	$	−	$	−	$	2,605	$	60,471
Multi-family and commercial real estate		10,594		−		169		914		11,677
Commercial		1,989		−		34		171		2,194
Home equity		8,740		−		−		281		9,021
Consumer		615		−		−		−		615
Construction		860		−		−		52		912
	$	80,664	$	−	$	203	$	4,023	$	84,890

The following table represents past-due loans as of June 30, 2017 (dollars in thousands):

	30-59 Days Past Due			60- 89 Days Past Due			Greater than 90 Days Past Due			Total Past Due			Current			Total Loan Balances
Residential real estate	$	487		$	294		$	1,543		$	2,324		$	58,147		$	60,471
Multi-family and commercial real estate		239			355			626			1,220			10,457			11,677
Commercial		−			−			171			171			2,023			2,194
Home Equity		40			−			186			226			8,795			9,021
Consumer		40			−			−			40			575			615
Construction		−			−			−			−			912			912
Total Loans	$	806		$	649		$	2,526		$	3,981		$	80,909		$	84,890
Percentage of Total Loans		0.9	%		0.8	%		3.0	%		4.7	%		95.3	%		100.0	%

Impaired loans are measured based on the present value of expected future discounted cash flows, the fair value of the loan or the fair value of the underlying collateral if the loan is collateral dependent. The recognition of interest income on impaired loans is the same for non-accrual loans discussed above. At June 30, 2017, the Bank had 16 loan relationships totaling $2.7 million in non-accrual loans as compared to 17 relationships totaling $3.2 million at March 31, 2017. The average balance of impaired loans totaled $4.6 million for the three months ended June 30, 2017 as compared to $5.1 million for the year ended March 31, 2017, and interest income recorded on impaired loans for the three months ended June 30, 2017 totaled $41 thousand as compared to $173 thousand for the year ended March 31, 2017.

18

The following table represents data on impaired loans at June 30, 2017 and March 31, 2017 (dollars in thousands):

	June 30, 2017		March 31, 2017
Impaired loans for which a valuation allowance has been provided	$	−	$	−
Impaired loans for which no valuation allowance has been provided		4,620		4,883
Total loans determined to be impaired		4,620		4,883
Allowance for loans losses related to impaired loans		−		−
Average recorded investment in impaired loans		4,691		5,225
Cash basis interest income recognized on impaired Loans	$	41	$	173

The following table presents impaired loans by portfolio class at June 30, 2017 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,293	$	2,232	$	−	$	2,295	$	16
Multi-family and commercial real estate		1,890		1,884		−		1,892		20
Commercial		171		171		−		171		3
Home equity		281		281		−		281		1
Consumer		−		−		−		−		−
Construction		56		52		−		56		1
Total	$	4,691	$	4,620	$	−	$	4,695	$	41

The following table presents impaired loans by portfolio class with no valuation allowance at March 31, 2017 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,289	$	2,239	$	−	$	2,711	$	60
Multi-family and commercial real estate		2,162		2,141		−		2,060		94
Commercial		171		171		−		153		9
Home equity		283		279		−		242		7
Consumer		−		−		−		1		−
Construction		57		53		−		58		3
Subtotal	$	4,963	$	4,883	$	−	$	5,225	$	173

19

The following table represents nonaccrual loans as of June 30, 2017 and March 31, 2017 (dollars in thousands):

	June 30, 2017			March 31, 2017
Non-accrual loans:
Residential real estate	$	1,179		$	1,180
Multi-family and commercial real estate		252			506
Commercial		171			172
Consumer		−			−
Home equity		55			53
Construction		−			−
Total non-accrual loans		1,657			1,911
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	738		$	740
Multi-family and commercial real estate		186			425
Commercial		−			−
Consumer		−			−
Home Equity		131			131
Construction		−			−
Total troubled debt restructurings in non-accrual status		1,055			1,296
Performing under modified terms:
Residential real estate		688			693
Multi-family and commercial real estate		476			240
Commercial		−			−
Consumer		−			−
Home Equity		95			95
Construction		52			52
Total troubled debt restructurings performing under modified terms:		1,311			1,080
Total troubled debt restructurings		2,366			2,376
Total non-performing loans		4,023			4,287
Real estate owned		1,219			1,271
Total non-performing assets		5,242			5,558
Non-performing loans as a percentage of loans		4.74	%		5.02	%
Non-performing assets as a percentage of loans and real estate owned		6.09	%		6.41	%
Non-performing assets as percentage of total assets		4.15	%		4.38	%

20

During the three months ended June 30, 2017, the Bank experienced a $495 thousand net decrease in non-accrual loans. This change reflects the sale of a commercial real estate loan with a book balance of $253 thousand, one commercial real estate loan for $239 thousand that returned to accruing status, principal reductions of $4 thousand through amortizations offset by an advance of $2 thousand to the principal balance of a loan.

The following table presents troubled debt restructurings that occurred during the periods ended June 30, 2017 and March 31, 2017 and loans modified as troubled debt restructurings within the previous three and 12 month periods and for which there was a payment default during the period.

June 30, 2017

March 31, 2017

Outstanding Recorded Investment

Outstanding Recorded Investment

Number of Contracts

Pre-Modification

Post- Modification

Number of Contracts

Pre-Modification

Post- Modification

Troubled debt restructurings:

Residential real estate

−

$

−

$

−

1

$

77

$

96

	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Troubled debt restructurings that subsequently defaulted:
Residential real estate		−	$	−		−	$	−

21

The following table presents the changes in real estate owned (REO), net of valuation allowance, for the periods ended June 30, 2017 and March 31, 2017:

	June 30,			March 31,
	2017			2017
Balance, beginning of period	$	1,271		$	1,763
Additions from loan foreclosures		−			500
Additions from capitalized costs		−			26
Dispositions of REO		−			(922	)
Gain (loss) on sale of REO		−			(34	)
Valuation adjustments in the period		(52	)		(62	)
Balance, end of period	$	1,219		$	1,271

The following table presents the changes in fair value adjustments to REO for the periods ended June 30, 2017 and March 31, 2017:

	June 30,		March 31,
	2017		2017
Balance, beginning of period	$	104	$	227
Valuation adjustments added in the period		52		62
Valuation adjustments on disposed properties during the period		−		(185	)
Balance, end of period	$	156	$	104

The following table sets forth with respect to the Bank’s allowance for losses on loans (dollars in thousands):

	June 30, 2017			March 31, 2017
Balance at beginning of period	$	1,001		$	1,099
Provision:
Commercial		−			(45	)
Commercial real estate		(20	)		(61	)
Residential real estate		−			98
Home Equity		−			29
Consumer		−			(45	)
Construction		−			2
Total Provision		(20	)		(22	)
Charge-Offs:
Commercial		−			−
Commercial Real Estate		−			71
Residential real estate		−			102
Home Equity		−			42
Consumer		−
Recoveries		(24	)		(139	)
Total Net Charge-Offs		(24	)		76
Balance at end of period	$	1,005		$	1,001
Period-end loans outstanding	$	84,890		$	85,477
Average loans outstanding	$	85,435		$	84,426
Allowance as a percentage of period-end loans		1.18	%		1.17	%
Net charge-offs as a percentage of average loans		(0.03	%)		0.09	%

22

Additional details for changes in the allowance for loan by loan portfolio as of June 30, 2017 are as follows (dollars in thousands):

Allowance for Loan Losses

	Commercial		Commercial Real Estate			Residential Real Estate		Home Equity		Consumer		Construction		Total
Balance, beginning of year	$	64	$	274		$	575	$	74	$	12	$	2	$	1,001
Loan charge-offs		−		−			−		−		−		−		−
Recoveries		1		17			4		−		2		−		24
Provision for loan losses		−		(20	)		−		−		−		−		(20	)
Balance, end of period	$	65	$	271		$	579	$	74	$	14	$	2	$	1,005
Ending balance for loans individually evaluated for impairment		−		−			−		−		−		−		−
Ending balance for loans collectively evaluated for impairment	$	65	$	271		$	579	$	74	$	14	$	2	$	1,005
Loans receivable:
Ending balance	$	2,194	$	11,677		$	60,471	$	9,021	$	615	$	912	$	84,890
Ending balance: loans individually evaluated for impairment	$	187	$	1,407		$	2,373	$	514	$	−	$	52	$	4,533
Ending balance: loans collectively evaluated for impairment	$	2,007	$	10,270		$	58,098	$	8,507	$	615	$	860	$	80,357

The Bank prepares an allowance for loan loss model on a quarterly basis to determine the adequacy of the allowance. Management considers a variety of factors when establishing the allowance, such as the impact of current economic conditions, diversification of the loan portfolio, delinquency statistics, results of independent loan review and related classifications. The Bank’s historic loss rates and the loss rates of peer financial institutions are also considered.

On a monthly basis, the loan committee meets to review each problem loan and determine if there has been any change in collateral value due to changes in market conditions. Each quarter, when calculating the allowance for loan loss, the loan committee reviews an updated loan impairment analysis on each problem loan to determine if a specific provision for loan loss is warranted. Management reviews the most recent appraisal on each loan adjusted for holding and selling costs. In the event there is not a recent appraisal on file, the Bank will use the aged appraisal and apply a discount factor to the appraisal and then adjust the holding and selling costs from the discounted appraisal value.

23

In evaluating the Bank’s allowance for loan loss, the Bank maintains a loan committee consisting of senior management and the Board of Directors that monitors problem loans and formulates collection efforts and resolution plans for each borrower.

For the three months ending June 30, 2017, the Bank experienced no charge-offs as compared to one charge-off relating to one loan relationship totaling $40 thousand and partial charge-offs relating to three loan relationships totaling $175 thousand for the year ended March 31, 2017.

At June 30, 2017, the Bank maintained an allowance for loan loss ratio of 1.18% to loans outstanding. Non-performing assets have decreased by $316 thousand over their stated levels at March 31, 2017, representing a non-performing asset to total asset ratio of 4.15% at June 30, 2017 as compared to a non-performing asset to total asset ratio of 4.38% at March 31, 2017.

The Bank’s charge-off policy states that any asset classified loss shall be charged-off within thirty days of such classification unless the asset has already been eliminated from the books by collection or other appropriate entry. On a quarterly basis, the loan committee will review past due, classified, non-performing and other loans, as it deems appropriate, to determine the collectability of such loans. If the loan committee determines a loan to be uncollectable, the loan shall be charged to the allowance for loan loss. In addition, upon reviewing the collectability, the loan committee may determine a portion of the loan to be uncollectable; in which case that portion of the loan deemed uncollectable will be partially charged-off against the allowance for loan loss.

(10)     Investment Securities

Investment securities have been classified according to management’s intent. The amortized cost of securities and their approximate fair values as of June 30, 2017 and March 31, 2017 are as follows:

	Held-to-Maturity June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	20,418	$	−	$	(659	)	$	19,759
Municipal Bond		1,536		−		(1	)		1,535
Mortgage-Backed Securities		622		38		−			660
Total	$	22,576	$	38	$	(660	)	$	21,954

	Held-to-Maturity March 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	20,418	$	−	$	(865	)	$	19,553
Municipal Bond		1,536		−		(3	)		1,533
Mortgage-backed securities:		669		58		(15	)		712
Total	$	22,623	$	58	$	(883	)	$	21,798

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	Available for Sale
	June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificate of deposit		2,500		9		−			2,509
Mutual Fund Shares		83		−		(1	)		82
	$	2,583	$	9	$	(1	)	$	2,591

	Available-for-Sale
	March 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S .Government Agency Bonds	$	500	$	−	$	−		$	500
Certificates of Deposit		2,000		8		−			2,008
Mutual Fund Shares		89		−		(2	)		87
Total	$	2,589	$	8	$	(2	)	$	2,595

The following is a summary of maturities of securities held-to-maturity and available-for-sale as of June 30, 2017 and March 31, 2017:

	June 30, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,539	$	1,535	$	500		500
After one year through five years		500		497		2,000		2,009
After five years through ten years		8,555		8,330		−		−
After ten years		11,982		11,592		−		−
Equity securities		−		−		83		82
	$	22,576	$	21,954	$	2,583	$	2,591

	March 31, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,536	$	1,534		−		−
After one year through five years		500		497		−		−
After five years through ten years		8,573		8,292		2,000		2,008
After ten years		12,014		11,475		500		500
Mutual fund shares		−		−		89		87
	$	22,623	$	21,798	$	2,589	$	2,595

The amortized cost and fair value of mortgage-backed securities are presented in the held-to-maturity category by contractual maturity in the preceding table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations without call or prepayment penalties.

25

Information pertaining to securities with gross unrealized losses at June 30, 2017 and March 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
June 30, 2017	Value		Losses			Value		Losses		Value		Losses
U.S Government Agency Bonds		19,759		(659	)		−		−		19,759		(659	)
Municipal Bonds		1,535		(1	)		−		−		1,535		(1	)
Total	$	21,294	$	(660	)		−		−		21,294		(660	)

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
March 31, 2017	Value		Losses			Value		Losses			Value		Losses
U.S Government Agency Bonds	$	19,553	$	(864	)	$	−	$	−		$	19,553	$	(864	)
Certificates of deposit		249		(1	)		−		−			249		(1	)
Municipal Bonds		1,536		(3	)		−		−			1,536		(3	)
Mutual fund shares		−		−			87		(2	)		87		(2	)
Mortgage –Backed Securities:		−		−			216		(15	)		216		(15	)
Total		21,338		(868	)		303		(17	)		21,641		(885	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At June 30, 2017, the 39 debt securities with unrealized losses have depreciated 3.0% from the Bank’s amortized cost basis. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other-than-temporary.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis of the financial condition and results of operations at and for the three months ended June 30, 2017 and 2016 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the Unaudited Financial Statements and the notes thereto, appearing in Part I, Item 1 of this report.

Forward-Looking Statements

This quarterly report contains forward-looking statements that are based on assumptions and may describe our future plans, strategies and expectations. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations include, but are not limited to, changes in interest rates, national and regional economic conditions, legislative and regulatory changes, monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality and composition of our loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in our market area, changes in real estate market values in our area, and changes in relevant accounting principles and guidelines.

26

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, we do not undertake, and specifically disclaim any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

General

Delanco Bancorp, Inc. is the holding company for Delanco Federal Savings Bank. Delanco Federal Savings Bank operates from two offices in Burlington County, New Jersey. Delanco Federal Savings Bank is engaged primarily in the business of attracting deposits from the general public and using such funds to originate a variety of consumer and business loans.

Balance Sheet Analysis

Overview. Total assets at June 30, 2017 were $126.3 million, a decrease of $700 thousand from total assets of $127.0 million at March 31, 2017. Total liabilities decreased $800 thousand from $113.5 million at March 31, 2017 to $112.7 million at June 30, 2017. Total stockholders’ equity increased $69 thousand to $13.6 million at June 30, 2017, primarily due to the increase in retained earnings as a result of the quarterly net income.

Loans. At June 30, 2017, total loans, net, were $83.8 million, or 66.4% of total assets. Overall loans decreased by $587 thousand from March 31, 2017 primarily due to payoffs exceeding loans originations. During the three months ended June 30, 2017, commercial and multi-family real estate loans decreased by $394 thousand, residential real estate loans by $948 thousand and consumer loans decreased by $22 thousand offset by increases in commercial loans by $336 thousand, home equity loans by $209 thousand and construction loans by $232 thousand.

Total nonperforming loans at June 30, 2017 decreased $264 thousand from March 31, 2017.

Securities. The investment securities portfolio was $25.2 million, or 19.9% of total assets, at June 30, 2017. At that date, the portfolio breakdown was 81.1% in U.S. Government agency bonds, 9.9% in certificates of deposits, 6.1% in municipal bonds, 2.5% in mortgage-backed securities and 0.4% in mutual funds. Investment securities decreased $50 thousand compared to March 31, 2017. The decrease was primarily due to amortization of the mortgage-backed securities.

Deposits. Total deposits were $111.2 million at June 30, 2017, a decrease of $900 thousand compared to March 31, 2017. Deposits decreased as we made a conscious effort to reduce our reliance on high costing time deposits. Core deposits decreased for the three months by $100 thousand and time deposits decreased by $782 thousand.

Results of Operations for the Three Months Ended June 30, 2017 and 2016

Financial Highlights.  Net income for the three months ended June 30, 2017 was $56 thousand as compared to net income of $60 thousand for the same prior year period. The decrease in net income for the three month period was primarily the result of increased income tax expense.

Net Interest Income.   Net interest income was $933 thousand for the three months ended June 30, 2017 and for the prior year period. The Bank saw an increase in the interest rate spread (17 basis points) and an increase in net interest margin (13 basis points) for the three month period ended June 30, 2017.  Total interest income decreased 1.0% for the three months ending June 30, 2017 compared to the three months ended June 30, 2016. Total interest expense decreased by 8.2% between the same periods.

Average loans for the three months ended June 30, 2017 increased $2.9 million, or 3.5%, compared with the same period in 2016, as production of new loans exceeded the amounts from normal amortization and payoffs of exiting loans. Average investment securities for the three months ended June 30, 2017 increased $3.2 million, or 14.7%, compared to the same period in 2016. The increase in the investment portfolio was due to purchases of debt securities. Decreasing interest rates decreased the average yield on earning assets to 3.63% for the three months ended June 30, 2017, compared with 3.67% for the same period in 2016.

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Average interest-bearing deposits for the three months ended June 30, 2017 increased $10.6 million or 10.6%, compared with the same period in 2016. Declining interest rates decreased the average cost of deposits to 0.45%, compared with 0.52% for the same period in 2016.

Provision for Loan Losses.  The allowance for loan losses is a valuation allowance for probable losses inherent in the loan portfolio.  We evaluate the need to establish allowances against losses on loans on a quarterly basis.  When additional allowances are necessary, a provision for loan losses is charged to earnings.  Provisions for loan losses recaptured $20 thousand in the three months ended June 30, 2017 compared to $48 thousand in the three months ended June 30, 2016.  We had no charge-offs and recoveries totaled $24 thousand in the three months ended June 30, 2017 compared to no charge-offs and $64 thousand in recoveries for the same prior year period.

Non-Interest Income.  Non-interest income increased $71 thousand for the three month period ending June 30, 2017 compared to the three month period ended June 30, 2016 primarily due to the sale of an asset.

Non-Interest Expenses.  Non-interest expenses increased $37 thousand for the three months ending June 30, 2017 compared to the three months ended June 30, 2016 primarily due to increase in real estate loss reserve.

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Liquidity Management

Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments, maturities of and payments on investment securities and borrowings from the Federal Home Loan Bank of New York, Atlantic Central Bankers Bank and the Federal Reserve Bank of Philadelphia. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

We regularly adjust our investments in liquid assets based upon our assessment of (1) expected loan demand, (2) expected deposit flows, (3) yields available on interest-earning deposits and securities and (4) the objectives of our asset/liability management policy.

Our most liquid assets are cash and cash equivalents. The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At June 30, 2017, cash and cash equivalents totaled $7.2 million. At June 30, 2017, we had no outstanding borrowings and had arrangements to borrow up to $10.4 million from the Federal Home Loan Bank of New York and $1 million from Atlantic Central Bankers Bank.

At June 30, 2017, substantially all of our investment securities were classified as held to maturity. We have classified our investments in this manner, rather than as available for sale, because they were purchased primarily to provide a source of income and not to provide liquidity. We anticipate that a portion of future investments will be classified as available for sale in order to give us greater flexibility in the management of our investment portfolio.

A significant use of our liquidity is the funding of loan originations. At June 30, 2017 we had $1.1 million in loan commitments outstanding. We also had $5.5 million in unused lines of credit and $58 thousand in unfunded construction draws. Historically, many of the lines of credit expire without being fully drawn; therefore, the total commitment amounts do not necessarily represent future cash requirements. Another significant use of our liquidity is the funding of deposit withdrawals. Certificates of deposit due within one year of June 30, 2017 totaled $19.3 million, or 51.3% of certificates of deposit. The large percentage of certificates of deposit that mature within one year reflects customers’ hesitancy to invest their funds for long periods in the recent low interest rate environment. If these maturing deposits do not remain with us, we will be required to seek other sources of funds, including other certificates of deposit and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before June 30, 2018. We believe, however, based on past experience that a significant portion of our certificates of deposit will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Our primary investing activities are the origination and purchase of loans and the purchase of securities. Our primary financing activities consist of activity in deposit accounts and Federal Home Loan Bank advances. Deposit flows are affected by the overall level of interest rates, the interest rates and products offered by us and our local competitors and other factors. We generally manage the pricing of our deposits to be competitive. Occasionally, we offer promotional rates on certain deposit products to attract deposits.

The Company is a separate entity and apart from the Bank and must provide for its own liquidity. As of June 30, 2017, the Company had $399 thousand in cash and cash equivalents compared to $400 thousand as of March 31, 2017.  Substantially all of the Company’s cash and cash equivalents were obtained from proceeds it retained from the Bank’s mutual-to-stock conversion completed in October 2013. In addition to its operating expenses, Company may utilize its cash position for the payment of dividends or to repurchase common stock, subject to applicable restrictions.  

The Company can receive dividends from the Bank. Payment of such dividends to the Company by the Bank is limited under federal law. The amount that can be paid in any calendar year, without prior regulatory approval, cannot exceed the retained net earnings (as defined) for the year plus the preceding two calendar years. Under the terms of its written agreement with the OCC, the Bank is not permitted to pay dividends without prior regulatory approval. In addition, at the request of the Federal Reserve, the Company has adopted resolutions that prohibit it from declaring or paying any dividends or taking any dividends or other distributions that would reduce the capital of the Bank without the prior written consent of the Federal Reserve.

Capital Management. We are subject to various regulatory capital requirements administered by the OCC, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. See note 6 of the notes.

29

Off-Balance Sheet Arrangements. In the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit.

For the quarter ended June 30, 2017, we did not engage in any off-balance sheet transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable as the Company is a smaller reporting company.

Item 4. Controls and Procedures

The Company’s management, including the Company’s principal executive officer and principal financial officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by Rule 13(a)-15(e) that occurred during the Company’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II. Other Information

Item 1.	Legal Proceedings
Delanco Bancorp is not involved in any pending legal proceedings. Delanco Federal Savings Bank is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings, in the aggregate, are believed by management to be immaterial to its financial condition and results of operations.
Item 1A.	Risk Factors
There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017, which could materially and adversely affect the Company’s business, financial condition or future results. The risks described in the Company’s Form 10-K are not the only risks that the Company faces. Additional risks and uncertainties not currently known to the Company or that that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
	Not applicable.
Item 3.	Defaults upon Senior Securities
	Not Applicable.

30

Item 4.	Mine Safety Disclosures.
	Not Applicable.
Item 5.	Other Information
	None.
Item 6.	Exhibits
3.1	Certificate of Incorporation(1)
3.2	Bylaws(2)
4.0	Form of Specimen Stock Certificate(3)

31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

32.0 Section 1350 Certification

101 The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Stockholders’ Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements.

__________________________________

(1)	Incorporated by reference to Exhibit 3.1 to the Company’s Form S-1 (File No. 333-189244) filed with the Commission on June 12, 2013.
(2)	Incorporated by reference to Exhibit 3.2 to the Company’s Form S-1 (File No. 333-189244) filed with the Commission on June 12, 2013.
(3)	Incorporated by reference to Exhibit 4.0 to the Company’s Form S-1 (File No. 333-189244) filed with the Commission on June 12, 2013.

31

Signatures

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	DELANCO BANCORP, INC.
Dated: August 14, 2017	By:	/s/ James E. Igo
		James E. Igo
		Chairman, President and
		Chief Executive Officer

Dated: August 14, 2017	By:	/s/ Eva Modi
		Eva Modi
		Chief Financial Officer

32

EX-31.1

Exhibit 31.1

Certification

I, James E. Igo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Delanco Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2017 /s/ James E. Igo James E. Igo Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Eva Modi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Delanco Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2017 /s/ Eva Modi Eva Modi Chief Financial Officer

EX-32.0

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADDED BY

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Delanco Bancorp, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2017, as filed with the Securities and Exchange Commission (the “Report”), we hereby certify pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in this Report fairly presents, in all material respects, the consolidated financial condition and results of the Company as of and for the period covered by this Report.

By:	/s/ James E. Igo James E. Igo President and Chief Executive Officer August 14, 2017
By:	/s/ Eva Modi Eva Modi Chief Financial Officer August 14, 2017

XML

Document And Entity Information - shares	3 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
Document Information [Line Items]
Entity Registrant Name	Delanco Bancorp, Inc.
Entity Central Index Key	0001577603
Trading Symbol	dlno
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		945,425
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
ASSETS
Cash and amounts due from banks	$ 390,772	$ 511,355
Interest-bearing deposits	6,825,755	6,487,188
Total cash and cash equivalents	7,216,527	6,998,543
Investment Securities
Securities available-for-sale (amortized cost of $2,582,944 and $2,588,817 at June 30, 2017 and March 31, 2017, respectively)	2,591,470	2,594,888
Securities held-to-maturity (fair value $21,954,235 and $21,797,695 at June 30, 2017 and March 31, 2017, respectively)	22,575,925	22,622,835
Total investment securities	25,167,395	25,217,723
Loans, net of allowance for loan losses of $1,005,316 at June 30, 2017 (unaudited), $1,001,449 at March 31, 2017	83,825,378	84,414,361
Accrued interest receivable	356,505	378,243
Real estate owned	1,219,083	1,271,302
Federal Home Loan Bank, at cost	122,400	124,300
Premises and equipment, net	5,995,473	6,047,703
Deferred income taxes	1,906,470	1,981,950
Bank-owned life insurance	178,514	178,514
Other assets	268,487	374,714
Total assets	126,256,232	126,987,353
LIABILITIES
Non-interest bearing deposits	10,661,622	11,703,567
Interest bearing deposits	100,534,848	100,377,179
Total deposits	111,196,470	112,080,746
Accrued interest payable	5,762	6,273
Advance payments by borrowers for taxes and insurance	526,770	500,485
Other liabilities	966,516	908,005
Total liabilities	112,695,518	113,495,509
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at June 30, 2017 and March 31, 2017, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at June 30, 2017 and March 31, 2017	9,454	9,454
Additional paid-in capital	10,040,983	10,029,506
Retained earnings, substantially restricted	4,092,385	4,036,465
Unearned common stock held by employee stock ownership plan	(455,514)	(455,514)
Accumulated other comprehensive (loss)	(126,594)	(128,067)
Total stockholder’s equity	13,560,714	13,491,844
Total liabilities and stockholders’ equity	$ 126,256,232	$ 126,987,353

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Investment securities available-for-sale, amortized cost	$ 2,582,944	$ 2,588,817
Investment and mortgage backed securities held-to-maturity, fair value	21,954,235	21,797,695
Loans, allowance for loan losses	$ 1,005,316	$ 1,001,449
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)		5,000,000
Preferred stock, shares issued (in shares)		0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	945,425	945,425
Common stock, shares outstanding (in shares)	945,425	945,425

XML

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
INTEREST INCOME
Loans	$ 898,979	$ 892,478
Investment securities	157,521	174,933
Total interest income	1,056,500	1,067,411
INTEREST EXPENSE
Interest-bearing checking accounts	8,338	10,741
Passbook and money market accounts	30,977	29,667
Certificates of deposits	84,295	91,440
Federal Home Loan Bank Advances	15	2,748
Total interest expense	123,625	134,596
Net interest income	932,875	932,815
Recapture of loan loss	(20,000)	(48,000)
Net interest income after recapture for loan losses	952,875	980,815
NON-INTEREST INCOME
(Loss) on sale of real estate owned		(5,532)
Gain on sale of an asset	71,516
Service charges	29,020	32,835
Rental income	9,600	12,435
Other	4,107	3,480
Total non-interest income	114,243	43,218
NON-INTEREST EXPENSE
Salaries and employee benefits	410,376	397,028
Advertising	4,218	4,565
Office supplies, telephone and postage	26,100	25,232
Loan expenses	13,373	28,376
Net occupancy expense	141,094	143,376
Real estate loss reserve	52,218	13,100
Federal insurance premiums	22,031	42,798
Data processing expenses	61,817	64,614
ATM expenses	11,443	6,305
Bank charges and fees	22,141	21,493
Insurance and surety bond premiums	20,621	21,107
Dues and subscriptions	7,238	11,529
Professional fees	80,783	54,851
Real Estate Owned expense	27,980	32,585
Other	36,517	34,162
Total non-interest expense	937,950	901,121
INCOME BEFORE INCOME TAX EXPENSE	129,168	122,912
Income tax expense	73,248	63,095
NET INCOME	$ 55,920	$ 59,817
INCOME PER COMMON SHARE (in dollars per share)	$ 0.06	$ 0.07

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Net Income	$ 55,920	$ 59,817
Unrealized holding gain (loss), net of deferred tax (benefit) of 3,411 and $16,918 in 2017 and 2016	1,473	8,388
Total other comprehensive income	$ 57,393	$ 68,205

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Unrealized holding gains, deferred tax	$ 3,411	$ 16,918

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 3 months ended Jun. 30, 2017 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Employee Stock Ownership Plan [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Mar. 31, 2017	945,425
Balance at Mar. 31, 2017	$ 9,454	$ 10,029,506	$ 4,036,465	$ (455,514)	$ (128,067)	$ 13,491,844
Net Income			55,920			55,920
Balance at Jun. 30, 2017	9,454	10,040,983	4,092,385	(455,514)	(126,594)	13,560,714
Other comprehensive income, net of tax:					1,473	1,473
Employee stock option expense		$ 11,477				$ 11,477
Balance (in shares) at Jun. 30, 2017	945,425

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flow from operating activities
Net Income	$ 55,920	$ 59,817
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	74,498	61,894
Depreciation	58,629	66,152
Discount accretion net of premium amortization	121	(26,763)
Recapture of loan loss	(20,000)	(48,000)
Loss on sale of real estate owned		5,532
Gain on sale of an asset	(71,516)
Compensation expense for stock options	11,477	8,805
(Increase) decrease in:
Accrued interest receivable	21,738	42,986
Other assets	106,227	98,178
Increase (decrease) in:
Accrued interest payable	(511)	(530)
Other liabilities	58,511	139,163
Net cash provided by operating activities	295,094	407,234
Cash flows from investing activities
Proceeds of securities available for sale	505,873	5,822
Purchases of securities available for sale	(500,000)	(500,000)
Purchases of securities held-to-maturity		(7,500,000)
Proceeds from maturities and principal repayments of securities held-to-maturity	46,789	13,875,845
Redemption of investment required by law – stock in Federal Home Loan Bank	1,900	84,500
Proceeds from sale of real estate owned		284,233
Net (increase) in loans	732,718	(1,362,764)
Purchases of premises and equipment	(6,399)	(5,545)
Net cash provided by(used in) investing activities	780,881	4,882,091
Cash flows from financing activities
(Decrease) in deposits	(884,276)	(399,996)
Increase in advance payments by borrowers for taxes and insurance	26,285	20,203
(Decrease) in Federal Home Loan Bank Advances		(2,000,000)
Net cash used in financing activities	(857,991)	(2,379,793)
Net (decrease) increase in cash and cash equivalents	217,984	2,909,532
Cash and cash equivalents, beginning of the period	6,998,543	12,127,388
Cash and cash equivalents, end of period	7,216,527	15,036,920
Supplemental Disclosures:
Cash paid during the period for interest	135,217	142,978
Cash paid during the period for income taxes	2,500	2,500
Loans transferred to foreclosed real estate during the period		110,624
Net change in unrealized gain (loss) on securities available-for-sale net of tax	$ 1,473	$ 8,388

XML

Note 1 - Basis of Presentation

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Basis of Accounting [Text Block]

( 1 ) Basis of Presentation

On

October 16, 2013,

Delanco Bancorp, Inc., a New Jersey corporation (the “Company”), became the holding company for Delanco Federal Savings Bank (the “Bank”) upon completion of the “second-step” conversion of the Bank from a mutual holding company structure to a stock holding company structure (the “Conversion”). The Conversion involved the sale by the Company of

525,423

shares of common stock in a subscription and community offering, including shares purchased by the Bank’s employee stock ownership plan, the exchange of

420,002

shares of common stock of the Company for shares of common stock of the former Delanco Bancorp, Inc. (“old Delanco Bancorp”) held by persons other than Delanco MHC (the “MHC”), and the elimination of old Delanco Bancorp and the MHC. Net proceeds received from the reorganization and stock offering totaled

$3,280,000,

net of costs of

$923,000.

The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions for Form

10

-Q and, therefore, do

not

include all disclosures necessary for a complete presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). However, all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. Such adjustments were of a normal recurring nature. The results of operations for the

three

month period ended

June 30, 2017

are

not

necessarily indicative of the results that

may

be expected for the entire year or any other interim period. For additional information, refer to the consolidated financial statements and footnotes thereto of the Company included in the Company’s annual report on Form

10

-K for the year ended

March 31, 2017.

XML

Note 2 - Use of Estimates

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Use of Estimates [Text Block]

( 2 ) Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for losses on loans and the evaluation of deferred taxes.

XML

Note 3 - Deferred Income Taxes

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 4 ) Income Taxes

 The Bank accounts for uncertainties in income taxes in accordance with Financial ASC Topic

740

“Accounting for Uncertainty in Income Taxes”. ASC Topic

740

prescribes a threshold and measurement process for recognizing in the financial statements a tax position taken or expected to be taken in a tax return. ASC Topic

740

also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  The Bank has determined that there are

no

significant uncertain tax positions requiring recognition in its financial statements.   

Tax year

2016

remains subject to examination by Federal and

2014

through

2016

by New Jersey taxing authorities. In the event the Bank is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense

.

Deferred Income Taxes [Member]

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 3 )  Deferred Income Taxes

We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments require us to make projections of future taxable income. The judgments and estimates we make in determining our deferred tax assets, which are inherently subjective, are reviewed on a continual basis as regulatory and business factors change.

The calculation of deferred taxes for GAAP capital differs from the calculation of deferred taxes for regulatory capital. For regulatory capital, deferred tax assets that are dependent upon future taxable income for realization are limited to the lesser of either the amount of deferred tax assets that the institution expects to realize within

one

year of the calendar quarter-end date, or

10%

of the Bank’s Tier I capital. As a result of this variance, our Tier I regulatory capital ratio is lower than our GAAP capital ratio by

113

basis points.

XML

Note 4 - Income Taxes

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 4 ) Income Taxes

 The Bank accounts for uncertainties in income taxes in accordance with Financial ASC Topic

740

“Accounting for Uncertainty in Income Taxes”. ASC Topic

740

prescribes a threshold and measurement process for recognizing in the financial statements a tax position taken or expected to be taken in a tax return. ASC Topic

740

also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  The Bank has determined that there are

no

significant uncertain tax positions requiring recognition in its financial statements.   

Tax year

2016

remains subject to examination by Federal and

2014

through

2016

by New Jersey taxing authorities. In the event the Bank is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense

.

XML

Note 5 - Earnings Per Share

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

( 5 ) Earnings Per Share

Basic earnings per share (“EPS”) are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.

The difference between the common shares issued and the common shares outstanding for the purposes of calculating basic EPS is a result of the unallocated ESOP shares.

The calculated basic and dilutive EPS are as follows:

	Three Months Ended June 30,
	2017		2016
Numerator	$	55,920	$	59,817
Denominators:
Basic shares outstanding		910,239		906,720
Effect of dilutive securities		7,449		3,290
Dilutive shares outstanding		917,688		910,010
Earnings per share:
Basic	$	0.06	$	0.07
Dilutive	$	0.06	$	0.07

XML

Note 6 - Regulatory Matters

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

( 6 ) Regulatory Agreement      

On 

December 17, 2012,

the Bank received a formal written agreement (the “Agreement”) with the Office of the Comptroller of the Currency (the “OCC”) dated

November 21, 2012.  

The Agreement supersedes and terminates the Order to Cease and Desist entered into by and between the Bank and the Office of Thrift Supervision on

March 17, 2010.

The Agreement requires the Bank to take the following actions:

● prepare a three -year strategic plan that establishes objectives for the Bank’s overall risk profile, earnings performance, growth, balance sheet mix, liability structure, reduction in the volume of nonperforming assets, and product line development;

● prepare a capital plan that includes specific proposals related to the maintenance of adequate capital, identifies strategies to strengthen capital if necessary and includes detailed quarterly financial projections.  If the OCC determines that the Bank has failed to submit an acceptable capital plan or fails to implement or adhere to its capital plan, then the OCC may require the Bank to develop a contingency capital plan detailing the Bank’s proposal to sell, merge or liquidate the Bank;

● prepare a criticized asset plan that will include strategies, targets and timeframes to reduce the Bank’s level of criticized assets;

● implement a plan to improve the Bank’s credit risk management and credit administration practices;

● implement programs and policies related to the Bank’s allowance for loan and lease losses, liquidity risk management, independent loan review and other real estate owned;

● review the capabilities of the Bank’s management to perform present and anticipated duties and to recommend and implement any changes based on such assessment;

● not pay any dividends or make any other capital distributions without the prior written approval of the OCC;

● not make any severance or indemnification payments without complying with regulatory requirements regarding such payments; and

● comply with prior regulatory notification requirements for any changes in directors or senior executive officers.

We have submitted strategic and capital plans to the OCC and have developed the other plans and policies required by the written agreement. The written agreement will remain in effect until terminated, modified, or suspended in writing by the OCC. 

The Agreement does

not

require the Bank to maintain any specific minimum regulatory capital ratios. Separately, the OCC established higher individual minimum capital ratios for the Bank. Specifically, the Bank must maintain a Tier

1

capital to adjusted total assets ratio of at least

8%,

a Tier

1

capital to risk-weighted assets ratio of at least

12%

and a total capital to risk-weighted assets ratio of at least

13%.

The Bank's ratios of Tier

1

capital to adjusted total assets, Tier

1

capital to risk-weighted assets and total capital to risk-weighted assets at

June 30, 2017

were

9.26%,

16.52%

and

17.78%,

respectively.

XML

Note 7 - Recent Accounting Pronouncements

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

( 7 ) Recent Accounting Pronouncements

In

March 2017,

the FASB issued ASU

2017

-

08:

Receivables—Nonrefundable Fees and Other Costs (Subtopic

310

-

20

): Premium Amortization on Purchased Callable Debt Securities. This Accounting Standards update amends guidance on the amortization period of premiums on certain purchased callable debt securities. Specifically, the amendments shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments affect all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2018.

The Company does

not

currently hold any callable debt securities with a premium. As a result, the Company does

not

anticipate an impact to the consolidated financial statements.

Also in

March 2017,

the FASB issued ASU

2017

-

07:

Compensation—Retirement Benefits (Topic

715

): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Topic

715,

Compensation—Retirement Benefits, requires an entity to present net periodic pension cost and net periodic postretirement benefit cost as a net amount that

may

be capitalized as part of an asset where appropriate, Users have communicated that the service cost component generally is analyzed differently from the other components of net periodic pension cost and net periodic postretirement benefit cost. To improve the consistency, transparency, and usefulness of financial information for users, the amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments in this update are effective for public business entities for annual periods beginning after

December 15, 2017,

including interim periods within those annual periods. The Company's current-accounting treatment and presentation of net periodic pension cost and

not

periodic postretirement benefit cost is consistent with the provisions in ASU-

2017.

As a result, the Company does

not

anticipate an impact to the consolidated financial statements.

In

January 2017,

the FASB issued ASU

2017

-

03:

Accounting Changes and Error Corrections (Topic

250

) and Investments—Equity Method and Joint Ventures (Topic

323

). The amendments in this update add and amend SEC paragraphs pursuant to the SEC Staff Announcements at the

September 22, 2016

and

November 17, 2016

Emerging Issues Task Force (EITF) meetings. The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

Also in

January 2017,

the FASB issued ASU

2017

-

01:

Business Combinations (Topic

805

), Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update affect all reporting entities that must determine whether they have acquired or sold a business. Public business entities should apply the amendments in this update to annual periods beginning after

December 15, 2017,

including interim periods within those periods. The Company intends to comply with the effective date of this update and does

not

anticipate an impact to the consolidated financial statements at this time.

In

December 2016,

the FASB issued ASU

2016

-

20;

Technical Corrections and Improvements to Topic

606,

Revenue from Contracts with Customers. The amendments in this update cover a variety of Topics in the Codification related to the new revenue recognition standard (Accounting Standards Update

No.

2014

-

09

). The amendments in this update represent changes to make minor corrections or minor improvements to the Codification that are

not

expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does

not

anticipate a material impact to the consolidated financial statements.

Also in

December 2016,

the FASB issued ASU

2016

-

19:

Technical Corrections and Improvements. The amendments in this update cover a wide range of Topics in the Codification. The amendments in this update represent changes to make corrections or improvements to the Codification that are

not

expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company does

not

anticipate a material impact to the consolidated financial statements.

In

November 2016,

the FASB issued ASU

2016

-

18:

Statement of Cash Flows (Topic

230

): Restricted Cash, a consensus of the FASB Emerging Task Force. Stakeholders indicated that diversity exists in the classification and presentation of changes in restricted cash on the statement of cash flows under Topic

230.

Statement of Cash Flows. This update addresses that diversity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should he included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic

230.

The Company evaluated the amendments of this update and does

not

anticipate an impact to the consolidated financial statements.

In

August 2016,

the FASB issued ASU

2016

-

15:

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments arc presented and classified in the statement of cash flows under Topic

230,

Statement of Cash Flows, and other Topics. This update addresses the following

eight

cash flow issues: Debt prepayment or debt extinguishment costs; settlement of

zero

-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from foe settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this update apply to all entities, including both business entities and

not

-for-profit entities that are required to present a statement of cash flows under Topic

230.

The amendments in this update are effective for public business entities for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

In

June 2016,

the FASB issued ASU

2016

-

13:

Financial Instruments—Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments. Topic

326

amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic

326

eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic

326

will require that credit losses be presented as an allowance rather than as a write-down. This update affects entities holding financial assets and net investment in leases that are

not

accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets

not

excluded from the scope that have the contractual right to receive cash. The amendments in this update are effective for fiscal years beginning after

December 15, 2019.

The Company is in the process of evaluating the impact of this guidance but expects that the impact will likely be material to the consolidated financial statements.

In

May 2016,

the FASB issued ASU

2016

-

12:

Revenue from Contracts with Customers (Topic

606

): Narrow-Scope Improvements and Practical Expedients. The amendments in this update address narrow-scope improvements to the guidance on collectability, noncash consideration, and completed contracts at transition. Additionally, the amendments in this update provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The amendments in this update affect the guidance in Accounting Standards Update

No,

2014

-

09,

Revenue from Contracts with Customers (Topic

606

), which is

not

yet effective. The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

In

April 2016,

the FASB issued ASU

2016

-

10:

Revenue from Contracts with Customers (Topic

606

): Identifying Performance Obligations and Licensing. The amendments in this update clarify the following

two

aspects of Topic

606:

(a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do

not

change the core principle of the guidance in Topic

606.

The effective date and transition requirements for the amendments in this update are the same

as

the effective date and transition requirements in Topic

606.

The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

In

March 2016,

the FASB issued ASU

2016

-

09:

Compensation —Stock Compensation (Topic

718

): Improvements to Employee Share-Based Payment Accounting. The Board is issuing this update as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition, the amendments in this update eliminate the guidance in Topic

718

that was indefinitely deferred shortly after the issuance of FASB Statement

No,

123

(revised

2004

), Share-Based Payment. For public business entities, the amendments in this update are effective for annual periods beginning after

December 15, 2016,

and interim periods within those annual periods. The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

Also in

March 2016,

the FASB issued ASU

2016

-

08:

Revenue from Contracts with Customers (Topic

606

): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments in this update clarify the implementation guidance included in Topic

606

on principal versus agent considerations. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements in Topic

606.

The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

Also in

March 2016,

the FASB issued ASU

2016

-

07:

Investments – Equity Method and Joint Ventures (Topic

323

). To simplify the accounting for equity method investments, the amendments in this update eliminate the requirement in Topic

323

that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2016.

The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

Also in

March 2016,

the FASB issued ASU

2016

-

05:

Derivatives and Hedging (Topic

815

): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The term novation refers to replacing

one

counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this update clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic

815,

does

not,

in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after

December 15, 2016,

and interim periods within those fiscal years. The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

Also in

March 2016,

the FASB issued ASU

2016

-

04:

Liabilities— Extinguishments of Liabilities (Subtopic

405

-

20

): Recognition of Breakage for Certain Prepaid Stored-Value Products. When an entity sells a prepaid stored-value product (such as gift cards, telecommunication cards, and traveler's checks), it recognizes a financial liability for its obligation to provide the product holder with the ability to purchase goods or services at a

third

-party merchant. When a prepaid stored-value product goes unused wholly or partially for an indefinite time period, the amount that remains on the product is referred to as breakage. There currently is diversity in the methodology used to recognize breakage. Subtopic

405

-

20

includes derecognition guidance for both financial liabilities and nonfinancial liabilities, and Topic

606.

Revenue from Contracts with Customers, includes authoritative breakage guidance but excludes financial liabilities. The amendments in this update provide a narrow scope exception to the guidance in Subtopic

405

-

20

to require that breakage be accounted for consistent with the breakage guidance in Topic

606,

The amendments in this update are effective for public business entities for financial statements issued for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. Earlier application is permitted, including adoption in an interim period. The Company does

not

anticipate a material impact to the consolidated financial statements at this time.

XML

Note 8 - Fair Value of Financial Instruments

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Fair Value, Measurement Inputs, Disclosure [Text Block]

( 8 ) Fair Value of Financial Instruments

ASC Topic

820

-

10

defines fair value, establishes a framework for measuring fair value in U.S. generally accepted accounting principles, and expands disclosure requirements for fair value measurements. ASC Topic

820

does

not

require any new fair value measurements. The adoption of ASC Topic

820

-

10

did

not

have a material impact on the consolidated financial statements.

ASC Topic

820

establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into

three

broad levels, as described below:

                ●  Level 1 Level 1 input are unadjusted quoted prices in active markets for identical assets or liabilities.

                ●  Level 2 Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable inputs other than quoted prices such as interest rates.

                ●  Level 3 Level 3 inputs are unobservable inputs.

Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
June 30, 2017
Available-for-sale securities	$	−	$	2,591	$	−
March 31, 2017
Available-for-sale securities	$	−	$	2,595	$	−

Assets and Liabilities on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis at

June 30, 2017

and

March 31, 2017

are as follows (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
June 30, 2017
Impaired loans	$	−	$	−	$	4,533
Real estate owned		−		−		1,219
Total	$	−	$	−	$	5,752
March 31, 2017
Impaired loans	$	−	$	−	$	4,883
Real estate owned		−		−		1,271
Total	$	−	$	−	$	6,154

The fair value of impaired loans and real estate owned is generally based on recent real estate appraisals. These appraisals

may

utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.

A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input significant to the fair value measurement.

As required by ASC Topic

825

-

10

-

65,

the estimated fair value of financial instruments at

June 30, 2017

and

March 31, 2017

was as follows:

	June 30, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	7,217	$	7,217	$	−	$	−
Investment securities-available for sale		2,583		−		2,951		−
Investment securities-held to maturity		22,576		−		21,954		−
Loans receivable – net		83,825		−		−		84,235
FHLB stock		122		122		−		−
Accrued interest receivable		357		357		−		−
Bank–owned life insurance		179		179		−		−
Real estate owned		1,219		−		−		1,219
Total financial assets	$	118,078	$	7,875	$	24,905	$	85,454
Financial Liabilities:
Deposits- non-interest bearing	$	10,662	$	10,662	$	−	$	−
Deposits – interest bearing		100,535		−		100,225		−
Advances from Federal Home Loan Bank		−		−		−		−
Advance payments by borrowers for taxes and insurance		527		527		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	111,730	$	11,195	$	100,225	$	−

	March 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	6,999	$	6,999	$	−	$	−
Investment securities-available for sale		2,589		−		2,595		−
Investment securities-held to maturity		22,623		−		21,798		−
Loans receivable,– net		84,414		−		−		83,833
FHLB stock		124		124		−		−
Accrued interest receivable		378		378		−		−
Bank-owned life insurance		179		179		−		−
Real estate owned		1,271		−		−		1,271
Total financial assets	$	118,577	$	7,680	$	24,393	$	85,104
Financial Liabilities:
Deposits-non-interest bearing	$	11,704	$	11,704	$	−	$	−
Deposits-interest bearing		100,377		−		99,183		−
Advances from Federal Home Loan Bank		−		−		−		−
Advance payments by borrowers for taxes and insurance		500		500		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	112,587	$	12,210	$	99,183	$	−

Off-balance sheet instruments

Off-balance sheet instruments are primarily comprised of loan commitments and unfunded lines of credit which are generally priced at market rate at the time of funding. Therefore, these instruments have nominal value prior to funding.

	June 30, 2017				March 31, 2017
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	6,682	$	−	$	6,620	$	−

XML

Note 9 - Loans

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

9 ) Loans

The Bank monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Bank monitors the performance of its loan portfolio and estimates its allowance for loan losses.

Residential real estate loans consist of loans secured by

one

to

four

family residences located in the Bank’s market area. The Bank has originated

one

to

four

family residential mortgage loans in amounts up to

80%

of the lesser of the appraised value or selling price of the mortgaged property without requiring mortgage insurance. A mortgage loan originated by the Bank, for owner occupied property, whether fixed rate or adjustable rate, can have a term of up to

30

years. Non-owner occupied property, whether fixed rate or adjustable rate, can have a term of up to

30

years. Adjustable rate loan terms limit the periodic interest rate adjustment and the minimum and maximum rates that

may

be charged over the term of the loan based on the type of loan.

Commercial real estate loans are generally originated in amounts up to the lower of

80%

of the appraised value or cost of the property and are secured by improved property such as multi-family dwelling units, office buildings, retail stores, warehouses, church buildings and other non-residential buildings, most of which are located in the Bank’s market area. Commercial real estate loans are generally made with fixed interest rates which mature or re-price in

5

to

7

years with principal amortization of up to

25

years.

Commercial loans include short and long-term business loans and commercial lines of credit for the purposes of providing working capital, supporting accounts receivable, purchasing inventory and acquiring fixed assets. The loans generally are secured by these types of assets as collateral and/or by personal guarantees provided by principals of the borrowers.

Construction loans will be made only if there is a permanent mortgage commitment in place. Interest rates on commercial construction loans are typically in line with normal commercial mortgage loan rates, while interest rates on residential construction loans are slightly higher than normal residential mortgage loan rates. These loans usually are adjustable rate loans and generally have terms of up to

one

year.

Consumer loans include installment loans and home equity loans, secured by

first

or

second

mortgages on homes owned or being purchased by the loan applicant. Home equity term loans and credit lines are credit accommodations secured by either a

first

or

second

mortgage on the borrower’s residential property. Interest rates charged on home equity term loans are generally fixed; interest on credit lines is usually a floating rate related to the prime rate. The Bank generally requires a loan to value ratio of less than or equal to

80%

of the appraised value, including any outstanding prior mortgage balance.

Loans at

June 30, 2017

and

March 31, 2017

are summarized as follows (dollars in thousands):

	June 30,			March 31,
	2017			2017
Residential (one-to four-family) real estate	$	60,471		$	61,419
Multi-family and commercial real estate		11,677			12,071
Commercial		2,194			1,858
Home equity		9,021			8,812
Consumer		615			637
Construction		912			680
Total loans		84,890			85,477
Net deferred loan origination fees		(60	)		(62	)
Allowance for loan losses		(1,005	)		(1,001	)
Loans, net	$	83,825		$	84,414

The Bank is subject to a loans-to-

one

-borrower limitation of

15%

of capital funds. At

June 30, 2017,

the loans-to-

one

-borrower limitation was

$1.9

million; this excluded an additional

10%

of adjusted capital funds or approximately

$1.3

million, which

may

be loaned if collateralized by readily marketable securities. At

June 30, 2017,

there were

no

loans outstanding or committed to any

one

borrower, which individually or in the aggregate exceeded the Bank’s loans to-

one

-borrower limitations of

15%

of capital funds.

A summary of the Bank’s credit quality indicators is as follows:

Pass – A credit which is assigned a rating of Pass shall exhibit some or all of the following characteristics:

a. Loans that present an acceptable degree of risk associated with the financing being considered as measured against earnings and balance sheet trends, industry averages, etc. Actual and projected indicators and market conditions provide satisfactory evidence that the credit will perform as agreed.

b. Loans to borrowers that display acceptable financial conditions and operating results. Debt service capacity is demonstrated and future prospects are considered good.

c. Loans to borrowers where a comfort level is achieved by the strength of the cash flows from the business or project and the strength and quantity of the collateral or security position (i.e.; receivables, inventory and other readily marketable securities) as supported by a current valuation and/or the strong capabilities of a guarantor.

Special Mention – Loans on which the credit risk requires more than ordinary attention by the Loan Officer. This

may

be the result of some erosion in the borrower’s financial condition, the economics of the industry, the capability of management, or changes in the original transaction. Loans which are currently sound yet exhibit potentially unacceptable credit risk or deteriorating long term prospects, will receive this classification. Loans which deviate from loan policy or regulations will

not

generally be classified in this category, but will be separately reported as an area of concern.

Classified – Classified loans include those considered by the Bank to be substandard, doubtful or loss.

An asset is considered “substandard” if it involves more than an acceptable level of risk due to a deteriorating financial condition, unfavorable history of the borrower, inadequate payment capacity, insufficient security or other negative factors within the industry, market or management. Substandard loans have clearly defined weaknesses which can jeopardize the timely payment of the loan.

Assets classified as “doubtful” exhibit all of the weaknesses defined under the substandard category but with enough risk to present a high probability of some principal loss on the loan, although

not

yet fully ascertainable in amount.

Assets classified as “loss” are those considered uncollectible or of little value, even though a collection effort

may

continue after the classification and potential charge-off.

      

Non-Performing Loans

Non-performing loans consist of non-accrual loans (loans on which the accrual of interest has ceased), loans over

ninety

days delinquent and still accruing interest, renegotiated loans and impaired loans. Loans are generally placed on non-accrual status if, in the opinion of management, collection is doubtful, or when principal or interest is past due

90

days or more, unless the collateral is considered sufficient to cover principal and interest and the loan is in the process of collection.

The Bank continues to work with its borrowers where possible and is pursuing legal action where the ability to work with the borrower does

not

exist.  As of

June 30, 2017,

the Bank has entered into formal forbearance agreements with

six

relationships totaling

$864

thousandthat require current payments while the borrowers restructure their finances

The following table represents loans by credit quality indicator at

June 30, 2017 (

dollars in thousands):

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	57,866	$	−	$	−	$	2,605	$	60,471
Multi-family and commercial real estate		10,594		−		169		914		11,677
Commercial		1,989		−		34		171		2,194
Home equity		8,740		−		−		281		9,021
Consumer		615		−		−		−		615
Construction		860		−		−		52		912
	$	80,664	$	−	$	203	$	4,023	$	84,890

The following table represents past-due loans as of

June 30, 2017 (

dollars in thousands):

	30-59 Days Past Due			60- 89 Days Past Due			Greater than 90 Days Past Due			Total Past Due			Current			Total Loan Balances
Residential real estate	$	487		$	294		$	1,543		$	2,324		$	58,147		$	60,471
Multi-family and commercial real estate		239			355			626			1,220			10,457			11,677
Commercial		−			−			171			171			2,023			2,194
Home Equity		40			−			186			226			8,795			9,021
Consumer		40			−			−			40			575			615
Construction		−			−			−			−			912			912
Total Loans	$	806		$	649		$	2,526		$	3,981		$	80,909		$	84,890
Percentage of Total Loans		0.9	%		0.8	%		3.0	%		4.7	%		95.3	%		100.0	%

Impaired loans are measured based on the present value of expected future discounted cash flows, the fair value of the loan or the fair value of the underlying collateral if the loan is collateral dependent. The recognition of interest income on impaired loans is the same for non-accrual loans discussed above. At

June 30, 2017,

the Bank had

16

loan relationships totaling

$2.7

million in non-accrual loans as compared to

17

relationships totaling

$3.2

million at

March 31, 2017.

The average balance of impaired loans totaled

$4.6

million for the

three

months ended

June 30, 2017

as compared to

$5.1

million for the year ended

March 31, 2017,

and interest income recorded on impaired loans for the

three

months ended

June 30, 2017

totaled

$41

thousand as compared to

$173

thousand for the year ended

March 31, 2017

.

The following table represents data on impaired loans at

June 30, 2017

and

March 31, 2017 (

dollars in thousands):

	June 30, 2017		March 31, 2017
Impaired loans for which a valuation allowance has been provided	$	−	$	−
Impaired loans for which no valuation allowance has been provided		4,620		4,883
Total loans determined to be impaired		4,620		4,883
Allowance for loans losses related to impaired loans		−		−
Average recorded investment in impaired loans		4,691		5,225
Cash basis interest income recognized on impaired Loans	$	41	$	173

The following table presents impaired loans by portfolio class at

June 30, 2017 (

dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,293	$	2,232	$	−	$	2,295	$	16
Multi-family and commercial real estate		1,890		1,884		−		1,892		20
Commercial		171		171		−		171		3
Home equity		281		281		−		281		1
Consumer		−		−		−		−		−
Construction		56		52		−		56		1
Total	$	4,691	$	4,620	$	−	$	4,695	$	41

The following table presents impaired loans by portfolio class with

no

valuation allowance at

March 31, 2017 (

dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,289	$	2,239	$	−	$	2,711	$	60
Multi-family and commercial real estate		2,162		2,141		−		2,060		94
Commercial		171		171		−		153		9
Home equity		283		279		−		242		7
Consumer		−		−		−		1		−
Construction		57		53		−		58		3
Subtotal	$	4,963	$	4,883	$	−	$	5,225	$	173

The following table represents nonaccrual loans as of

June 30, 2017

and

March 31, 2017 (

dollars in thousands):

	June 30, 2017			March 31, 2017
Non-accrual loans:
Residential real estate	$	1,179		$	1,180
Multi-family and commercial real estate		252			506
Commercial		171			172
Consumer		−			−
Home equity		55			53
Construction		−			−
Total non-accrual loans		1,657			1,911
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	738		$	740
Multi-family and commercial real estate		186			425
Commercial		−			−
Consumer		−			−
Home Equity		131			131
Construction		−			−
Total troubled debt restructurings in non-accrual status		1,055			1,296
Performing under modified terms:
Residential real estate		688			693
Multi-family and commercial real estate		476			240
Commercial		−			−
Consumer		−			−
Home Equity		95			95
Construction		52			52
Total troubled debt restructurings performing under modified terms:		1,311			1,080
Total troubled debt restructurings		2,366			2,376
Total non-performing loans		4,023			4,287
Real estate owned		1,219			1,271
Total non-performing assets		5,242			5,558
Non-performing loans as a percentage of loans		4.74	%		5.02	%
Non-performing assets as a percentage of loans and real estate owned		6.09	%		6.41	%
Non-performing assets as percentage of total assets		4.15	%		4.38	%

During the

three

months ended

June 30, 2017,

the Bank experienced a

$495

thousand net decrease in non-accrual loans. This change reflects the sale of a commercial real estate loan with a book balance of

$253

thousand,

one

commercial real estate loan for

$239

thousand that returned to accruing status, principal reductions of

$4

thousand through amortizations offset by an advance of

$2

thousand to the principal balance of a loan.

The following table presents troubled debt restructurings that occurred during the periods ended

June 30, 2017

and

March 31, 2017

and loans modified as troubled debt restructurings within the previous

three

and

12

month periods and for which there was a payment default during the period.

June 30, 2017

March 31, 2017

Outstanding Recorded Investment

Outstanding Recorded Investment

Number of Contracts

Pre-Modification

Post- Modification

Number of Contracts

Pre-Modification

Post- Modification

Troubled debt restructurings:

Residential real estate

−

$

−

$

−

1

$

77

$

96

	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Troubled debt restructurings that subsequently defaulted:
Residential real estate		−	$	−		−	$	−

The following table presents the changes in real estate owned (REO), net of valuation allowance, for the periods ended

June 30, 2017

and

March 31, 2017:

	June 30,			March 31,
	2017			2017
Balance, beginning of period	$	1,271		$	1,763
Additions from loan foreclosures		−			500
Additions from capitalized costs		−			26
Dispositions of REO		−			(922	)
Gain (loss) on sale of REO		−			(34	)
Valuation adjustments in the period		(52	)		(62	)
Balance, end of period	$	1,219		$	1,271

The following table presents the changes in fair value adjustments to REO for the periods ended

June 30, 2017

and

March 31, 2017:

	June 30,		March 31,
	2017		2017
Balance, beginning of period	$	104	$	227
Valuation adjustments added in the period		52		62
Valuation adjustments on disposed properties during the period		−		(185	)
Balance, end of period	$	156	$	104

The following table sets forth with respect to the Bank’s allowance for losses on loans (dollars in thousands):

	June 30, 2017			March 31, 2017
Balance at beginning of period	$	1,001		$	1,099
Provision:
Commercial		−			(45	)
Commercial real estate		(20	)		(61	)
Residential real estate		−			98
Home Equity		−			29
Consumer		−			(45	)
Construction		−			2
Total Provision		(20	)		(22	)
Charge-Offs:
Commercial		−			−
Commercial Real Estate		−			71
Residential real estate		−			102
Home Equity		−			42
Consumer		−
Recoveries		(24	)		(139	)
Total Net Charge-Offs		(24	)		76
Balance at end of period	$	1,005		$	1,001
Period-end loans outstanding	$	84,890		$	85,477
Average loans outstanding	$	85,435		$	84,426
Allowance as a percentage of period-end loans		1.18	%		1.17	%
Net charge-offs as a percentage of average loans		(0.03	%)		0.09	%

Additional details for changes in the allowance for loan by loan portfolio as of

June 30, 2017

are as follows (dollars in thousands):

Allowance for Loan Losses

	Commercial		Commercial Real Estate			Residential Real Estate		Home Equity		Consumer		Construction		Total
Balance, beginning of year	$	64	$	274		$	575	$	74	$	12	$	2	$	1,001
Loan charge-offs		−		−			−		−		−		−		−
Recoveries		1		17			4		−		2		−		24
Provision for loan losses		−		(20	)		−		−		−		−		(20	)
Balance, end of period	$	65	$	271		$	579	$	74	$	14	$	2	$	1,005
Ending balance for loans individually evaluated for impairment		−		−			−		−		−		−		−
Ending balance for loans collectively evaluated for impairment	$	65	$	271		$	579	$	74	$	14	$	2	$	1,005
Loans receivable:
Ending balance	$	2,194	$	11,677		$	60,471	$	9,021	$	615	$	912	$	84,890
Ending balance: loans individually evaluated for impairment	$	187	$	1,407		$	2,373	$	514	$	−	$	52	$	4,533
Ending balance: loans collectively evaluated for impairment	$	2,007	$	10,270		$	58,098	$	8,507	$	615	$	860	$	80,357

The Bank prepares an allowance for loan loss model on a quarterly basis to determine the adequacy of the allowance. Management considers a variety of factors when establishing the allowance, such as the impact of current economic conditions, diversification of the loan portfolio, delinquency statistics, results of independent loan review and related classifications. The Bank’s historic loss rates and the loss rates of peer financial institutions are also considered.

On a monthly basis, the loan committee meets to review each problem loan and determine if there has been any change in collateral value due to changes in market conditions. Each quarter, when calculating the allowance for loan loss, the loan committee reviews an updated loan impairment analysis on each problem loan to determine if a specific provision for loan loss is warranted. Management reviews the most recent appraisal on each loan adjusted for holding and selling costs. In the event there is

not

a recent appraisal on file, the Bank will use the aged appraisal and apply a discount factor to the appraisal and then adjust the holding and selling costs from the discounted appraisal value.

In evaluating the Bank’s allowance for loan loss, the Bank maintains a loan committee consisting of senior management and the Board of Directors that monitors problem loans and formulates collection efforts and resolution plans for each borrower.

For the

three

months ending

June 30, 2017,

the Bank experienced

no

charge-offs as compared to

one

charge-off relating to

one

loan relationship totaling

$40

thousand and partial charge-offs relating to

three

loan relationships totaling

$175

thousand for the year ended

March 31, 2017.

At

June 30, 2017,

the Bank maintained an allowance for loan loss ratio of

1.18%

to loans outstanding. Non-performing assets have decreased by

$316

thousand over their stated levels at

March 31, 2017,

representing a non-performing asset to total asset ratio of

4.15%

at

June 30, 2017

as compared to a non-performing asset to total asset ratio of

4.38%

at

March 31, 2017

.

The Bank’s charge-off policy states that any asset classified loss shall be charged-off within

thirty

days of such classification unless the asset has already been eliminated from the books by collection or other appropriate entry. On a quarterly basis, the loan committee will review past due, classified, non-performing and other loans, as it deems appropriate, to determine the collectability of such loans. If the loan committee determines a loan to be uncollectable, the loan shall be charged to the allowance for loan loss. In addition, upon reviewing the collectability, the loan committee

may

determine a portion of the loan to be uncollectable; in which case that portion of the loan deemed uncollectable will be partially charged-off against the allowance for loan loss.

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Note 10 - Investment Securities

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

(

10

)

     

Investment Securities

Investment securities have been classified according to management’s intent. The amortized cost of securities and their approximate fair values as of

June 30, 2017

and

March 31, 2017

are as follows:

	Held-to-Maturity June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	20,418	$	−	$	(659	)	$	19,759
Municipal Bond		1,536		−		(1	)		1,535
Mortgage-Backed Securities		622		38		−			660
Total	$	22,576	$	38	$	(660	)	$	21,954

	Held-to-Maturity March 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	20,418	$	−	$	(865	)	$	19,553
Municipal Bond		1,536		−		(3	)		1,533
Mortgage-backed securities:		669		58		(15	)		712
Total	$	22,623	$	58	$	(883	)	$	21,798

	Available for Sale
	June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificate of deposit		2,500		9		−			2,509
Mutual Fund Shares		83		−		(1	)		82
	$	2,583	$	9	$	(1	)	$	2,591

	Available-for-Sale
	March 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S .Government Agency Bonds	$	500	$	−	$	−		$	500
Certificates of Deposit		2,000		8		−			2,008
Mutual Fund Shares		89		−		(2	)		87
Total	$	2,589	$	8	$	(2	)	$	2,595

The following is a summary of maturities of securities held-to-maturity and available-for-sale as of

June 30, 2017

and

March 31, 2017:

	June 30, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,539	$	1,535	$	500		500
After one year through five years		500		497		2,000		2,009
After five years through ten years		8,555		8,330		−		−
After ten years		11,982		11,592		−		−
Equity securities		−		−		83		82
	$	22,576	$	21,954	$	2,583	$	2,591

	March 31, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,536	$	1,534		−		−
After one year through five years		500		497		−		−
After five years through ten years		8,573		8,292		2,000		2,008
After ten years		12,014		11,475		500		500
Mutual fund shares		−		−		89		87
	$	22,623	$	21,798	$	2,589	$	2,595

The amortized cost and fair value of mortgage-backed securities are presented in the held-to-maturity category by contractual maturity in the preceding table. Expected maturities will differ from contractual maturities because borrowers

may

have the right to call or prepay obligations without call or prepayment penalties.

Information pertaining to securities with gross unrealized losses at

June 30, 2017

and

March 31, 2017,

aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
June 30, 2017	Value		Losses			Value		Losses		Value		Losses
U.S Government Agency Bonds		19,759		(659	)		−		−		19,759		(659	)
Municipal Bonds		1,535		(1	)		−		−		1,535		(1	)
Total	$	21,294	$	(660	)		−		−		21,294		(660	)

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
March 31, 2017	Value		Losses			Value		Losses			Value		Losses
U.S Government Agency Bonds	$	19,553	$	(864	)	$	−	$	−		$	19,553	$	(864	)
Certificates of deposit		249		(1	)		−		−			249		(1	)
Municipal Bonds		1,536		(3	)		−		−			1,536		(3	)
Mutual fund shares		−		−			87		(2	)		87		(2	)
Mortgage –Backed Securities:		−		−			216		(15	)		216		(15	)
Total		21,338		(868	)		303		(17	)		21,641		(885	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (

1

) the length of time and the extent to which the fair value has been less than cost, (

2

) the financial condition and near-term prospects of the issuer, and (

3

) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At

June 30, 2017,

the

39

debt securities with unrealized losses have depreciated

3.0%

from the Bank’s amortized cost basis. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale,

no

declines are deemed to be other-than-temporary.

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Note 5 - Earnings Per Share (Tables)

3 Months Ended

Jun. 30, 2017

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 30,
	2017		2016
Numerator	$	55,920	$	59,817
Denominators:
Basic shares outstanding		910,239		906,720
Effect of dilutive securities		7,449		3,290
Dilutive shares outstanding		917,688		910,010
Earnings per share:
Basic	$	0.06	$	0.07
Dilutive	$	0.06	$	0.07

XML

Note 8 - Fair Value of Financial Instruments (Tables)

3 Months Ended

Jun. 30, 2017

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
June 30, 2017
Available-for-sale securities	$	−	$	2,591	$	−
March 31, 2017
Available-for-sale securities	$	−	$	2,595	$	−

Fair Value Measurements, Nonrecurring [Table Text Block]

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
June 30, 2017
Impaired loans	$	−	$	−	$	4,533
Real estate owned		−		−		1,219
Total	$	−	$	−	$	5,752
March 31, 2017
Impaired loans	$	−	$	−	$	4,883
Real estate owned		−		−		1,271
Total	$	−	$	−	$	6,154

Fair Value, by Balance Sheet Grouping [Table Text Block]

	June 30, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	7,217	$	7,217	$	−	$	−
Investment securities-available for sale		2,583		−		2,951		−
Investment securities-held to maturity		22,576		−		21,954		−
Loans receivable – net		83,825		−		−		84,235
FHLB stock		122		122		−		−
Accrued interest receivable		357		357		−		−
Bank–owned life insurance		179		179		−		−
Real estate owned		1,219		−		−		1,219
Total financial assets	$	118,078	$	7,875	$	24,905	$	85,454
Financial Liabilities:
Deposits- non-interest bearing	$	10,662	$	10,662	$	−	$	−
Deposits – interest bearing		100,535		−		100,225		−
Advances from Federal Home Loan Bank		−		−		−		−
Advance payments by borrowers for taxes and insurance		527		527		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	111,730	$	11,195	$	100,225	$	−

	March 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	6,999	$	6,999	$	−	$	−
Investment securities-available for sale		2,589		−		2,595		−
Investment securities-held to maturity		22,623		−		21,798		−
Loans receivable,– net		84,414		−		−		83,833
FHLB stock		124		124		−		−
Accrued interest receivable		378		378		−		−
Bank-owned life insurance		179		179		−		−
Real estate owned		1,271		−		−		1,271
Total financial assets	$	118,577	$	7,680	$	24,393	$	85,104
Financial Liabilities:
Deposits-non-interest bearing	$	11,704	$	11,704	$	−	$	−
Deposits-interest bearing		100,377		−		99,183		−
Advances from Federal Home Loan Bank		−		−		−		−
Advance payments by borrowers for taxes and insurance		500		500		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	112,587	$	12,210	$	99,183	$	−

Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]

	June 30, 2017				March 31, 2017
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	6,682	$	−	$	6,620	$	−

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Note 9 - Loans (Tables)

3 Months Ended

Jun. 30, 2017

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	June 30,			March 31,
	2017			2017
Residential (one-to four-family) real estate	$	60,471		$	61,419
Multi-family and commercial real estate		11,677			12,071
Commercial		2,194			1,858
Home equity		9,021			8,812
Consumer		615			637
Construction		912			680
Total loans		84,890			85,477
Net deferred loan origination fees		(60	)		(62	)
Allowance for loan losses		(1,005	)		(1,001	)
Loans, net	$	83,825		$	84,414

Financing Receivable Credit Quality Indicators [Table Text Block]

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	57,866	$	−	$	−	$	2,605	$	60,471
Multi-family and commercial real estate		10,594		−		169		914		11,677
Commercial		1,989		−		34		171		2,194
Home equity		8,740		−		−		281		9,021
Consumer		615		−		−		−		615
Construction		860		−		−		52		912
	$	80,664	$	−	$	203	$	4,023	$	84,890

Past Due Financing Receivables [Table Text Block]

	30-59 Days Past Due			60- 89 Days Past Due			Greater than 90 Days Past Due			Total Past Due			Current			Total Loan Balances
Residential real estate	$	487		$	294		$	1,543		$	2,324		$	58,147		$	60,471
Multi-family and commercial real estate		239			355			626			1,220			10,457			11,677
Commercial		−			−			171			171			2,023			2,194
Home Equity		40			−			186			226			8,795			9,021
Consumer		40			−			−			40			575			615
Construction		−			−			−			−			912			912
Total Loans	$	806		$	649		$	2,526		$	3,981		$	80,909		$	84,890
Percentage of Total Loans		0.9	%		0.8	%		3.0	%		4.7	%		95.3	%		100.0	%

Impaired Financing Receivables [Table Text Block]

	June 30, 2017		March 31, 2017
Impaired loans for which a valuation allowance has been provided	$	−	$	−
Impaired loans for which no valuation allowance has been provided		4,620		4,883
Total loans determined to be impaired		4,620		4,883
Allowance for loans losses related to impaired loans		−		−
Average recorded investment in impaired loans		4,691		5,225
Cash basis interest income recognized on impaired Loans	$	41	$	173

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,293	$	2,232	$	−	$	2,295	$	16
Multi-family and commercial real estate		1,890		1,884		−		1,892		20
Commercial		171		171		−		171		3
Home equity		281		281		−		281		1
Consumer		−		−		−		−		−
Construction		56		52		−		56		1
Total	$	4,691	$	4,620	$	−	$	4,695	$	41

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,289	$	2,239	$	−	$	2,711	$	60
Multi-family and commercial real estate		2,162		2,141		−		2,060		94
Commercial		171		171		−		153		9
Home equity		283		279		−		242		7
Consumer		−		−		−		1		−
Construction		57		53		−		58		3
Subtotal	$	4,963	$	4,883	$	−	$	5,225	$	173

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

	June 30, 2017			March 31, 2017
Non-accrual loans:
Residential real estate	$	1,179		$	1,180
Multi-family and commercial real estate		252			506
Commercial		171			172
Consumer		−			−
Home equity		55			53
Construction		−			−
Total non-accrual loans		1,657			1,911
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	738		$	740
Multi-family and commercial real estate		186			425
Commercial		−			−
Consumer		−			−
Home Equity		131			131
Construction		−			−
Total troubled debt restructurings in non-accrual status		1,055			1,296
Performing under modified terms:
Residential real estate		688			693
Multi-family and commercial real estate		476			240
Commercial		−			−
Consumer		−			−
Home Equity		95			95
Construction		52			52
Total troubled debt restructurings performing under modified terms:		1,311			1,080
Total troubled debt restructurings		2,366			2,376
Total non-performing loans		4,023			4,287
Real estate owned		1,219			1,271
Total non-performing assets		5,242			5,558
Non-performing loans as a percentage of loans		4.74	%		5.02	%
Non-performing assets as a percentage of loans and real estate owned		6.09	%		6.41	%
Non-performing assets as percentage of total assets		4.15	%		4.38	%

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

June 30, 2017

March 31, 2017

Outstanding Recorded Investment

Outstanding Recorded Investment

Number of Contracts

Pre-Modification

Post- Modification

Number of Contracts

Pre-Modification

Post- Modification

Troubled debt restructurings:

Residential real estate

−

$

−

$

−

1

$

77

$

96

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods [Table Text Block]

	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Troubled debt restructurings that subsequently defaulted:
Residential real estate		−	$	−		−	$	−

Real Estate Owned [Table Text Block]

	June 30,			March 31,
	2017			2017
Balance, beginning of period	$	1,271		$	1,763
Additions from loan foreclosures		−			500
Additions from capitalized costs		−			26
Dispositions of REO		−			(922	)
Gain (loss) on sale of REO		−			(34	)
Valuation adjustments in the period		(52	)		(62	)
Balance, end of period	$	1,219		$	1,271

	June 30,		March 31,
	2017		2017
Balance, beginning of period	$	104	$	227
Valuation adjustments added in the period		52		62
Valuation adjustments on disposed properties during the period		−		(185	)
Balance, end of period	$	156	$	104

Schedule of Charge-offs [Table Text Block]

	June 30, 2017			March 31, 2017
Balance at beginning of period	$	1,001		$	1,099
Provision:
Commercial		−			(45	)
Commercial real estate		(20	)		(61	)
Residential real estate		−			98
Home Equity		−			29
Consumer		−			(45	)
Construction		−			2
Total Provision		(20	)		(22	)
Charge-Offs:
Commercial		−			−
Commercial Real Estate		−			71
Residential real estate		−			102
Home Equity		−			42
Consumer		−
Recoveries		(24	)		(139	)
Total Net Charge-Offs		(24	)		76
Balance at end of period	$	1,005		$	1,001
Period-end loans outstanding	$	84,890		$	85,477
Average loans outstanding	$	85,435		$	84,426
Allowance as a percentage of period-end loans		1.18	%		1.17	%
Net charge-offs as a percentage of average loans		(0.03	%)		0.09	%

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Commercial		Commercial Real Estate			Residential Real Estate		Home Equity		Consumer		Construction		Total
Balance, beginning of year	$	64	$	274		$	575	$	74	$	12	$	2	$	1,001
Loan charge-offs		−		−			−		−		−		−		−
Recoveries		1		17			4		−		2		−		24
Provision for loan losses		−		(20	)		−		−		−		−		(20	)
Balance, end of period	$	65	$	271		$	579	$	74	$	14	$	2	$	1,005
Ending balance for loans individually evaluated for impairment		−		−			−		−		−		−		−
Ending balance for loans collectively evaluated for impairment	$	65	$	271		$	579	$	74	$	14	$	2	$	1,005
Loans receivable:
Ending balance	$	2,194	$	11,677		$	60,471	$	9,021	$	615	$	912	$	84,890
Ending balance: loans individually evaluated for impairment	$	187	$	1,407		$	2,373	$	514	$	−	$	52	$	4,533
Ending balance: loans collectively evaluated for impairment	$	2,007	$	10,270		$	58,098	$	8,507	$	615	$	860	$	80,357

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Note 10 - Investment Securities (Tables)

3 Months Ended

Jun. 30, 2017

Notes Tables

Held-to-maturity Securities [Table Text Block]

	Held-to-Maturity June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	20,418	$	−	$	(659	)	$	19,759
Municipal Bond		1,536		−		(1	)		1,535
Mortgage-Backed Securities		622		38		−			660
Total	$	22,576	$	38	$	(660	)	$	21,954

	Held-to-Maturity March 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	20,418	$	−	$	(865	)	$	19,553
Municipal Bond		1,536		−		(3	)		1,533
Mortgage-backed securities:		669		58		(15	)		712
Total	$	22,623	$	58	$	(883	)	$	21,798

Available-for-sale Securities [Table Text Block]

	Available for Sale
	June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificate of deposit		2,500		9		−			2,509
Mutual Fund Shares		83		−		(1	)		82
	$	2,583	$	9	$	(1	)	$	2,591

	Available-for-Sale
	March 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S .Government Agency Bonds	$	500	$	−	$	−		$	500
Certificates of Deposit		2,000		8		−			2,008
Mutual Fund Shares		89		−		(2	)		87
Total	$	2,589	$	8	$	(2	)	$	2,595

Investments Classified by Contractual Maturity Date [Table Text Block]

	June 30, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,539	$	1,535	$	500		500
After one year through five years		500		497		2,000		2,009
After five years through ten years		8,555		8,330		−		−
After ten years		11,982		11,592		−		−
Equity securities		−		−		83		82
	$	22,576	$	21,954	$	2,583	$	2,591

	March 31, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,536	$	1,534		−		−
After one year through five years		500		497		−		−
After five years through ten years		8,573		8,292		2,000		2,008
After ten years		12,014		11,475		500		500
Mutual fund shares		−		−		89		87
	$	22,623	$	21,798	$	2,589	$	2,595

Schedule of Unrealized Loss on Investments [Table Text Block]

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
June 30, 2017	Value		Losses			Value		Losses		Value		Losses
U.S Government Agency Bonds		19,759		(659	)		−		−		19,759		(659	)
Municipal Bonds		1,535		(1	)		−		−		1,535		(1	)
Total	$	21,294	$	(660	)		−		−		21,294		(660	)

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
March 31, 2017	Value		Losses			Value		Losses			Value		Losses
U.S Government Agency Bonds	$	19,553	$	(864	)	$	−	$	−		$	19,553	$	(864	)
Certificates of deposit		249		(1	)		−		−			249		(1	)
Municipal Bonds		1,536		(3	)		−		−			1,536		(3	)
Mutual fund shares		−		−			87		(2	)		87		(2	)
Mortgage –Backed Securities:		−		−			216		(15	)		216		(15	)
Total		21,338		(868	)		303		(17	)		21,641		(885	)

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Note 1 - Basis of Presentation (Details Textual)	Oct. 16, 2013 USD ($) shares
Stock Issued During Period, Shares, New Issues | shares	525,423
Exchange of Common Stock Shares | shares	420,002
Proceeds from Reorganization and Stock Offering | $	$ 3,280,000
Costs from Reorganization and Stock Offering | $	$ 923,000

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Note 3 - Deferred Income Taxes (Details Textual)	Jun. 30, 2017
GAAP Capital Ratio, Basis Points in Excess of Tier 1 Regulatory Capital Ratio	1.13%

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Note 4 - Income Taxes (Details Textual) $ in Thousands	3 Months Ended
	Jun. 30, 2017 USD ($)
Liability for Uncertainty in Income Taxes, Current	$ 0
Earliest Tax Year [Member] | Federal and State Jurisdiction [Member]
Open Tax Year	2014
Latest Tax Year [Member] | Federal and State Jurisdiction [Member]
Open Tax Year	2016

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Note 5 - Earnings Per Share - Earnings Per Share Reconciliation (Details) - USD ($)	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Numerator	$ 55,920	$ 59,817
Denominators:
Basic shares outstanding (in shares)	910,239	906,720
Effect of dilutive securities (in shares)	7,449	3,290
Dilutive shares outstanding (in shares)	917,688	910,010
Earnings per share:
Basic (in dollars per share)	$ 0.06	$ 0.07
Dilutive (in dollars per share)	$ 0.06	$ 0.07

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Note 6 - Regulatory Matters (Details Textual)	Jun. 30, 2017
Tier One Leverage Capital to Average Assets	9.26%
Tier One Risk Based Capital to Risk Weighted Assets	16.52%
Capital to Risk Weighted Assets	17.78%
In Accordance With the Written Agreement With the Office of the Comptroller of the Currency [Member]
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	8.00%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	12.00%
Capital Required for Capital Adequacy to Risk Weighted Assets	13.00%

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Securities available-for-sale (amortized cost of $2,582,944 and $2,588,817 at June 30, 2017 and March 31, 2017, respectively)	$ 2,591,470	$ 2,594,888
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available-for-sale (amortized cost of $2,582,944 and $2,588,817 at June 30, 2017 and March 31, 2017, respectively)
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available-for-sale (amortized cost of $2,582,944 and $2,588,817 at June 30, 2017 and March 31, 2017, respectively)	2,591,000	2,595,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Securities available-for-sale (amortized cost of $2,582,944 and $2,588,817 at June 30, 2017 and March 31, 2017, respectively)

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value On a Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Fair Value, Inputs, Level 1 [Member]
Total
Fair Value, Inputs, Level 2 [Member]
Total
Fair Value, Inputs, Level 3 [Member]
Total	5,752	6,154
Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Impaired loans
Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Impaired loans
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Impaired loans	4,533	4,883
Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member]
Real estate owned
Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Real estate owned
Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Real estate owned	$ 1,219	$ 1,271

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Note 8 - Fair Value of Financial Instruments - Estimated Fair Value of Assets and Liabilities (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Accrued interest receivable	$ 356,505	$ 378,243
Bank-owned life insurance	178,514	178,514
Advance payments by borrowers for taxes and insurance	526,770	500,485
Available-for-sale securities - fair value	2,591,470	2,594,888
Investment securities-held to maturity	21,954,235	21,797,695
Reported Value Measurement [Member]
Impaired loans	83,825,000	84,414,000
FHLB stock	122,000	124,000
Accrued interest receivable	357,000	378,000
Bank-owned life insurance	179,000	179,000
Real estate owned	1,219,000	1,271,000
Total financial assets	118,078,000	118,577,000
Deposits- non-interest bearing	10,662,000	11,704,000
Deposits – interest bearing	100,535,000	100,377,000
Advances from Federal Home Loan Bank
Advance payments by borrowers for taxes and insurance	527,000	500,000
Accrued interest payable	6,000	6,000
Total financial liabilities	111,730,000	112,587,000
Cash and cash equivalents	7,217,000	6,999,000
Available-for-sale securities - fair value	2,583,000	2,589,000
Investment securities-held to maturity	22,576,000	22,623,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Impaired loans
FHLB stock	122,000	124,000
Accrued interest receivable	357,000	378,000
Bank-owned life insurance	179,000	179,000
Real estate owned
Total financial assets	7,875,000	7,680,000
Deposits- non-interest bearing	10,662,000	11,704,000
Deposits – interest bearing
Advances from Federal Home Loan Bank
Advance payments by borrowers for taxes and insurance	527,000	500,000
Accrued interest payable	6,000	6,000
Total financial liabilities	11,195,000	12,210,000
Cash and cash equivalents	7,217,000	6,999,000
Available-for-sale securities - fair value
Investment securities-held to maturity
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Impaired loans
FHLB stock
Accrued interest receivable
Bank-owned life insurance
Real estate owned
Total financial assets	24,905,000	24,393,000
Deposits- non-interest bearing
Deposits – interest bearing	100,225,000	99,183,000
Advances from Federal Home Loan Bank
Advance payments by borrowers for taxes and insurance
Accrued interest payable
Total financial liabilities	100,225,000	99,183,000
Cash and cash equivalents
Available-for-sale securities - fair value	2,951,000	2,595,000
Investment securities-held to maturity	21,954,000	21,798,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Impaired loans	84,235,000	83,833,000
FHLB stock
Real estate owned	1,219,000	1,271,000
Total financial assets	85,454,000	85,104,000
Deposits- non-interest bearing
Deposits – interest bearing
Advances from Federal Home Loan Bank
Advance payments by borrowers for taxes and insurance
Total financial liabilities
Cash and cash equivalents
Available-for-sale securities - fair value
Investment securities-held to maturity

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Note 8 - Fair Value of Financial Instruments - Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Commitments to Extend Credit [Member]
Commitments to extend credit	$ 6,682	$ 6,620

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Note 9 - Loans (Details Textual) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2016 USD ($)
Maximum Loan to One Borrower Limitation, Percentage of Capital Funds	15.00%
Maximum Loan to One Borrower Limitation	$ 1,900
Additional Loan to One Borrower Limitation if Collateralized, Percentage of Adjusted Capital Funds	10.00%
Adjusted Capital Funds Value	$ 1,300
Financing Receivable, Recorded Investment, Nonaccrual Status	1,657	$ 1,911
Impaired Financing Receivable, Average Recorded Investment	4,691	5,225
Impaired Financing Receivable, Interest Income, Cash Basis Method	41	$ 173
Financing Receivable Non-accrual, Principal Reduction	4
Financing Receivable Non-accural, Advance	2
Allowance for Loan and Lease Losses, Write-offs	$ 0
Allowance for Loan Loss to Loans Outstanding Ratio	1.18%
Increase (Decrease) in Non-performing Assets	$ (316)
Non-performing Assets As Percentage of Total Assets	4.15%	4.38%
Total Charge-offs [Member]
Loans Receivables, Write Offs, Number of Relationships		1
Allowance for Loan and Lease Losses, Write-offs		$ 40
Partial Charge-offs [Member]
Loans Receivables, Write Offs, Number of Relationships		3
Allowance for Loan and Lease Losses, Write-offs		$ 175
Nonperforming Financial Instruments [Member] | Payment Deferral [Member]
Financing Receivable, Modifications, Number of Contracts	6
Advances from Federal Home Loan Banks	$ 864
In Non-accrual Status [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2,700		$ 3,200
Financing Receivable, Number of Contracts, Nonaccrual Status	16		17
Increase (Decrease) in Finance Receivables	$ (495)
Residential Portfolio Segment [Member]
Financing Receivable, Modifications, Number of Contracts		1
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 1,179	$ 1,180
Allowance for Loan and Lease Losses, Write-offs	$ 0	102
Residential Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Non-owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 252	506
Financing Receivable, Non-accrual Status, Sold During Period	253
Financing Receivable Non-accrual, Returned to Accruing Status	239
Allowance for Loan and Lease Losses, Write-offs		71
Commercial Real Estate Portfolio Segment [Member] | Maximum [Member]
Interest Rate Maturity Or Re-price	7 years
Loan Amortization Period	25 years
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Commercial Real Estate Portfolio Segment [Member] | Minimum [Member]
Interest Rate Maturity Or Re-price	5 years
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status
Allowance for Loan and Lease Losses, Write-offs	$ 0
Consumer Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Construction Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status
Allowance for Loan and Lease Losses, Write-offs	$ 0
Construction Portfolio Segment [Member] | Maximum [Member]
Loan Term	1 year

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Note 9 - Loans - Loans (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Loans	$ 84,890,000	$ 85,477,000
Net deferred loan origination fees	(60,000)	(62,000)
Allowance for loan losses	(1,005,316)	(1,001,449)	$ (1,099,000)
Loans, net	83,825,378	84,414,361
Residential Portfolio Segment [Member]
Loans	60,471,000	61,419,000
Allowance for loan losses	(579,000)	(575,000)
Commercial Real Estate Portfolio Segment [Member]
Loans	11,677,000	12,071,000
Allowance for loan losses	(271,000)	(274,000)
Commercial Portfolio Segment [Member]
Loans	2,194,000	1,858,000
Allowance for loan losses	(65,000)	(64,000)
Home Equity Portfolio Segment [Member]
Loans	9,021,000	8,812,000
Allowance for loan losses	(74,000)	(74,000)
Consumer Portfolio Segment [Member]
Loans	615,000	637,000
Allowance for loan losses	(14,000)	(12,000)
Construction Portfolio Segment [Member]
Loans	912,000	680,000
Allowance for loan losses	$ (2,000)	$ (2,000)

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Note 9 - Loans - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Loans	$ 84,890	$ 85,477
Nonperforming Financial Instruments [Member]
Loans	4,023
Pass [Member]
Loans	80,664
Special Mention [Member]
Loans
Classified Loans [Member]
Loans	203
Residential Portfolio Segment [Member]
Loans	60,471	61,419
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	2,605
Residential Portfolio Segment [Member] | Pass [Member]
Loans	57,866
Residential Portfolio Segment [Member] | Special Mention [Member]
Loans
Residential Portfolio Segment [Member] | Classified Loans [Member]
Loans
Commercial Real Estate Portfolio Segment [Member]
Loans	11,677	12,071
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	914
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]
Loans	10,594
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Real Estate Portfolio Segment [Member] | Classified Loans [Member]
Loans	169
Commercial Portfolio Segment [Member]
Loans	2,194	1,858
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	171
Commercial Portfolio Segment [Member] | Pass [Member]
Loans	1,989
Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Portfolio Segment [Member] | Classified Loans [Member]
Loans	34
Home Equity Portfolio Segment [Member]
Loans	9,021	8,812
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	281
Home Equity Portfolio Segment [Member] | Pass [Member]
Loans	8,740
Home Equity Portfolio Segment [Member] | Special Mention [Member]
Loans
Home Equity Portfolio Segment [Member] | Classified Loans [Member]
Loans
Consumer Portfolio Segment [Member]
Loans	615	637
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans
Consumer Portfolio Segment [Member] | Pass [Member]
Loans	615
Consumer Portfolio Segment [Member] | Special Mention [Member]
Loans
Consumer Portfolio Segment [Member] | Classified Loans [Member]
Loans
Construction Portfolio Segment [Member]
Loans	912	$ 680
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	52
Construction Portfolio Segment [Member] | Pass [Member]
Loans	860
Construction Portfolio Segment [Member] | Special Mention [Member]
Loans
Construction Portfolio Segment [Member] | Classified Loans [Member]
Loans

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Note 9 - Loans - Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Past due loans	$ 3,981
Current loans	80,909
Loans	$ 84,890	$ 85,477
Percentage past due loans	4.70%
Percentage of current loans	95.30%
Percentage of Total Loans	100.00%
Residential Portfolio Segment [Member]
Past due loans	$ 2,324
Current loans	58,147
Loans	60,471	61,419
Commercial Real Estate Portfolio Segment [Member]
Past due loans	1,220
Current loans	10,457
Loans	11,677	12,071
Commercial Portfolio Segment [Member]
Past due loans	171
Current loans	2,023
Loans	2,194	1,858
Home Equity Portfolio Segment [Member]
Past due loans	226
Current loans	8,795
Loans	9,021	8,812
Consumer Portfolio Segment [Member]
Past due loans	40
Current loans	575
Loans	615	637
Construction Portfolio Segment [Member]
Current loans	912
Loans	912	$ 680
Financing Receivables, 30 to 59 Days Past Due [Member]
Past due loans	$ 806
Percentage past due loans	0.90%
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 487
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	239
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	40
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans	40
Financing Receivables, 60 to 89 Days Past Due [Member]
Past due loans	$ 649
Percentage past due loans	0.80%
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 294
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	355
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Past due loans	$ 2,526
Percentage past due loans	3.00%
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 1,543
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	626
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	171
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	$ 186

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Note 9 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017
Impaired loans for which a valuation allowance has been provided
Impaired loans for which no valuation allowance has been provided	4,620	4,883
Total loans determined to be impaired	4,620	4,883
Allowance for loans losses related to impaired loans
Average recorded investment in impaired loans	4,691	5,225
Cash basis interest income recognized on impaired Loans	$ 41	$ 173

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Note 9 - Loans - Impaired Loans by Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017
Recorded investment, no valuation allowance	$ 4,691	$ 4,963
Unpaid principal balance, no valuation allowance	4,620	4,883
Average annual recorded investment, no valuation allowance	4,695	5,225
Interest income recognized while on impaired status, no valuation allowance	41	173
Residential Portfolio Segment [Member]
Recorded investment, no valuation allowance	2,293	2,289
Unpaid principal balance, no valuation allowance	2,232	2,239
Average annual recorded investment, no valuation allowance	2,295	2,711
Interest income recognized while on impaired status, no valuation allowance	16	60
Commercial Real Estate Portfolio Segment [Member]
Recorded investment, no valuation allowance	1,890	2,162
Unpaid principal balance, no valuation allowance	1,884	2,141
Average annual recorded investment, no valuation allowance	1,892	94
Interest income recognized while on impaired status, no valuation allowance	20
Commercial Portfolio Segment [Member]
Recorded investment, no valuation allowance	171	171
Unpaid principal balance, no valuation allowance	171	171
Average annual recorded investment, no valuation allowance	171	153
Interest income recognized while on impaired status, no valuation allowance	3	9
Home Equity Portfolio Segment [Member]
Recorded investment, no valuation allowance	281	283
Unpaid principal balance, no valuation allowance	281	279
Average annual recorded investment, no valuation allowance	281	242
Interest income recognized while on impaired status, no valuation allowance	1	7
Consumer Portfolio Segment [Member]
Recorded investment, no valuation allowance
Unpaid principal balance, no valuation allowance
Average annual recorded investment, no valuation allowance		1
Interest income recognized while on impaired status, no valuation allowance
Construction Portfolio Segment [Member]
Recorded investment, no valuation allowance	56	57
Unpaid principal balance, no valuation allowance	52	53
Average annual recorded investment, no valuation allowance	56	58
Interest income recognized while on impaired status, no valuation allowance	$ 1	$ 3

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Note 9 - Loans - Nonaccrual Loans (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Nonaccrual loans	$ 1,657,000	$ 1,911,000
Accruing loans past 90 days or more
Troubled debt restructurings	2,366,000	2,376,000
Real estate owned	1,219,083	1,271,302	$ 1,763,000
Total non-performing assets	$ 126,256,232	$ 126,987,353
Non-performing loans as a percentage of loans	4.74%	5.02%
Non-performing assets as a percentage of loans and real estate owned	6.09%	6.41%
Non-performing assets as percentage of total assets	4.15%	4.38%
Nonperforming Financial Instruments [Member]
Troubled debt restructurings	$ 1,055,000	$ 1,296,000
Total non-performing loans	4,023,000	4,287,000
Real estate owned	1,219,000	1,271,000
Total non-performing assets	5,242,000	5,558,000
Performing Financial Instruments [Member]
Troubled debt restructurings	1,311,000	1,080,000
Residential Portfolio Segment [Member]
Nonaccrual loans	1,179,000	1,180,000
Accruing loans past 90 days or more
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings	738,000	740,000
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	688,000	693,000
Commercial Real Estate Portfolio Segment [Member]
Nonaccrual loans	252,000	506,000
Accruing loans past 90 days or more
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings	186,000	425,000
Commercial Real Estate Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	476,000	240,000
Commercial Portfolio Segment [Member]
Nonaccrual loans	171,000	172,000
Accruing loans past 90 days or more
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings
Commercial Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings
Consumer Portfolio Segment [Member]
Nonaccrual loans
Accruing loans past 90 days or more
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings
Home Equity Portfolio Segment [Member]
Nonaccrual loans	55,000	53,000
Accruing loans past 90 days or more
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings	131,000	131,000
Home Equity Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	95,000	95,000
Construction Portfolio Segment [Member]
Nonaccrual loans
Accruing loans past 90 days or more
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings
Construction Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	$ 52,000	$ 52,000

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Note 9 - Loans - Troubled Debt Restructurings (Details) - Residential Portfolio Segment [Member] $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
Outstanding Recorded Investment Pre-Modification		$ 77
Outstanding Recorded Investment Post-Modification		$ 96
Number of Contracts		1

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Note 9 - Loans - Troubled Debt Restructurings, Subsequent Default (Details) - Residential Portfolio Segment [Member]	3 Months Ended	12 Months Ended
	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
Troubled debt restructurings that subsequently defaulted, recorded investment
Troubled debt restructurings that subsequently defaulted, number of contracts

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Note 9 - Loans - Real Estate Owned (REO), Net of Valuation Allowance (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017
Balance, beginning of period	$ 1,271,302	$ 1,763,000	$ 1,763,000
Additions from loan foreclosures			500,000
Additions from capitalized costs			26,000
Dispositions of REO			(922,000)
(Loss) on sale of real estate owned		(5,532)	(34,000)
Valuation adjustments in the period	(52,000)		(62,000)
Balance, end of period	1,219,083		1,271,302
Balance, beginning of period	104,000	$ 227,000	227,000
Valuation adjustments added in the period	52,000		62,000
Valuation adjustments on disposed properties during the period			(185,000)
Balance, end of period	$ 156,000		$ 104,000

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Note 9 - Loans - Allowance for Losses on Loans and Charge-offs (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017
Balance, beginning of year	$ 1,001,449	$ 1,099,000	$ 1,099,000
Provision	(20,000)	$ (48,000)	(22,000)
Loan charge-offs	0
Recoveries	(24,000)		(139,000)
Total Net Charge-Offs	(24,000)		76,000
Balance, end of period	1,005,316		1,001,449
Loans	84,890,000		85,477,000
Average loans outstanding	$ 85,435,000		$ 84,426,000
Allowance as a percentage of period-end loans	1.18%		1.17%
Net charge-offs as a percentage of average loans	(0.03%)		0.09%
Commercial Portfolio Segment [Member]
Balance, beginning of year	$ 64,000
Provision			$ (45,000)
Loan charge-offs
Recoveries	(1,000)
Balance, end of period	65,000		64,000
Loans	2,194,000		1,858,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year	274,000
Provision	(20,000)		(61,000)
Loan charge-offs			71,000
Recoveries	(17,000)
Balance, end of period	271,000		274,000
Loans	11,677,000		12,071,000
Residential Portfolio Segment [Member]
Balance, beginning of year	575,000
Provision			98,000
Loan charge-offs	0		102,000
Recoveries	(4,000)
Balance, end of period	579,000		575,000
Loans	60,471,000		61,419,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year	74,000
Provision			29,000
Loan charge-offs			42,000
Recoveries	0
Balance, end of period	74,000		74,000
Loans	9,021,000		8,812,000
Consumer Portfolio Segment [Member]
Balance, beginning of year	12,000
Provision			(45,000)
Loan charge-offs	0
Recoveries	(2,000)
Balance, end of period	14,000		12,000
Loans	615,000		637,000
Construction Portfolio Segment [Member]
Balance, beginning of year	2,000
Provision			2,000
Loan charge-offs	0
Recoveries	0
Balance, end of period	2,000		2,000
Loans	$ 912,000		$ 680,000

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Note 9 - Loans - Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017
Balance, beginning of year	$ 1,001,449	$ 1,099,000	$ 1,099,000
Ending balance for loans individually evaluated for impairment
Loan charge-offs	0
Recoveries	24,000		139,000
Provision for loan losses	(20,000)	$ (48,000)	(22,000)
Balance, end of period	1,005,316		1,001,449
Ending balance for loans collectively evaluated for impairment	1,005,000
Ending balance	84,890,000		85,477,000
Ending balance: loans individually evaluated for impairment	4,533,000
Ending balance: loans collectively evaluated for impairment	80,357,000
Commercial Portfolio Segment [Member]
Balance, beginning of year	64,000
Ending balance for loans individually evaluated for impairment
Loan charge-offs
Recoveries	1,000
Provision for loan losses			(45,000)
Balance, end of period	65,000		64,000
Ending balance for loans collectively evaluated for impairment	65,000
Ending balance	2,194,000		1,858,000
Ending balance: loans individually evaluated for impairment	187,000
Ending balance: loans collectively evaluated for impairment	2,007,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year	274,000
Ending balance for loans individually evaluated for impairment
Loan charge-offs			(71,000)
Recoveries	17,000
Provision for loan losses	(20,000)		(61,000)
Balance, end of period	271,000		274,000
Ending balance for loans collectively evaluated for impairment	271,000
Ending balance	11,677,000		12,071,000
Ending balance: loans individually evaluated for impairment	1,407,000
Ending balance: loans collectively evaluated for impairment	10,270,000
Residential Portfolio Segment [Member]
Balance, beginning of year	575,000
Ending balance for loans individually evaluated for impairment
Loan charge-offs	0		(102,000)
Recoveries	4,000
Provision for loan losses			98,000
Balance, end of period	579,000		575,000
Ending balance for loans collectively evaluated for impairment	579,000
Ending balance	60,471,000		61,419,000
Ending balance: loans individually evaluated for impairment	2,373,000
Ending balance: loans collectively evaluated for impairment	58,098,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year	74,000
Ending balance for loans individually evaluated for impairment
Loan charge-offs			(42,000)
Recoveries	0
Provision for loan losses			29,000
Balance, end of period	74,000		74,000
Ending balance for loans collectively evaluated for impairment	74,000
Ending balance	9,021,000		8,812,000
Ending balance: loans individually evaluated for impairment	514,000
Ending balance: loans collectively evaluated for impairment	8,507,000
Consumer Portfolio Segment [Member]
Balance, beginning of year	12,000
Ending balance for loans individually evaluated for impairment
Loan charge-offs	0
Recoveries	2,000
Provision for loan losses			(45,000)
Balance, end of period	14,000		12,000
Ending balance for loans collectively evaluated for impairment	14,000
Ending balance	615,000		637,000
Ending balance: loans individually evaluated for impairment
Ending balance: loans collectively evaluated for impairment	615,000
Construction Portfolio Segment [Member]
Balance, beginning of year	2,000
Ending balance for loans individually evaluated for impairment
Loan charge-offs	0
Recoveries	0
Provision for loan losses			2,000
Balance, end of period	2,000		2,000
Ending balance for loans collectively evaluated for impairment	2,000
Ending balance	912,000		$ 680,000
Ending balance: loans individually evaluated for impairment	52,000
Ending balance: loans collectively evaluated for impairment	$ 860,000

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Note 10 - Investment Securities (Details Textual) - Debt Securities [Member]	Jun. 30, 2017
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	39
Securities in Unrealized Loss Positions, Depreciated Percentage from Amortized Cost	3.00%

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Note 10 - Investment Securities - Held-to-maturity Securities (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Held-to-maturity securities, amortized cost	$ 22,575,925	$ 22,622,835
Held-to-maturity securities, gross unrealized gains	38,000	58,000
Held-to-maturity securities, gross unrealized losses	(660,000)	(883,000)
Investment securities-held to maturity	21,954,235	21,797,695
US Government Agencies Debt Securities [Member]
Held-to-maturity securities, amortized cost	20,418,000	20,418,000
Held-to-maturity securities, gross unrealized gains
Held-to-maturity securities, gross unrealized losses	(659,000)	(865,000)
Investment securities-held to maturity	19,759,000	19,553,000
Municipal Bonds [Member]
Held-to-maturity securities, amortized cost	1,536,000	1,536,000
Held-to-maturity securities, gross unrealized gains
Held-to-maturity securities, gross unrealized losses	(1,000)	(3,000)
Investment securities-held to maturity	1,535,000	1,533,000
Collateralized Mortgage Backed Securities [Member]
Held-to-maturity securities, amortized cost	622,000	669,000
Held-to-maturity securities, gross unrealized gains	38,000	58,000
Held-to-maturity securities, gross unrealized losses		(15,000)
Investment securities-held to maturity	$ 660,000	$ 712,000

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Note 10 - Investment Securities - Available-for-sale Securities (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Available-for-sale securities - gross unrealized gains	$ 9,000	$ 8,000
Available-for-sale securities - gross unrealized losses	(1,000)	(2,000)
Available-for-sale securities - fair value	2,591,470	2,594,888
Investment securities available-for-sale, amortized cost	2,582,944	2,588,817
Certificates of Deposit [Member]
Available-for-sale securities - gross unrealized gains	9,000	8,000
Available-for-sale securities - gross unrealized losses
Available-for-sale securities - fair value	2,509,000	2,008,000
Investment securities available-for-sale, amortized cost	2,500,000	2,000,000
US Government Agencies Debt Securities [Member]
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses
Available-for-sale securities - fair value		500,000
Investment securities available-for-sale, amortized cost		500,000
Mutual Fund Shares [Member]
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses	(1,000)	(2,000)
Available-for-sale securities - fair value	82,000	87,000
Investment securities available-for-sale, amortized cost	$ 83,000	$ 89,000

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Note 10 - Investment Securities - Maturities of Securities (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
Available for Sale, Amortized Cost	$ 2,583,000	$ 2,589,000
Available for Sale, Fair Value	2,591,000	2,595,000
Held to Maturity, One year or less, Amortized Cost	1,539,000	1,536,000
Held to Maturity, One year or less, Fair Value	1,535,000	1,534,000
Available for Sale, One year or less, Amortized Cost	500,000
Available for Sale, One year or less, Fair Value	500,000
Held to Maturity, After one year through five years, Amortized Cost	500,000	500,000
Held to Maturity, After one year through five years, Fair Value	497,000	497,000
Available for Sale, After one year through five years, Amortized Cost	2,000,000
Available for Sale, After one year through five years, Fair Value	2,009,000
Held to Maturity, After five years through ten years, Amortized Cost	8,555,000	8,573,000
Held to Maturity, After five years through ten years, Fair Value	8,330,000	8,292,000
Available for Sale, After five years through ten years, Amortized Cost		2,000,000
Available for Sale, After five years through ten years, Fair Value		2,008,000
Held to Maturity, After ten years, Amortized Cost	11,982,000	12,014,000
Held to Maturity, After ten years, Fair Value	11,592,000	11,475,000
Available for Sale, After ten years, Amortized Cost		500,000
Available for Sale, After ten years, Fair Value		500,000
Mutual fund shares, held to maturity, amortized cost
Mutual fund shares, held to maturity, fair value
Equity securities, Amortized Cost	83,000	89,000
Equity securities, Fair Value	82,000	87,000
Held-to-maturity securities, amortized cost	22,575,925	22,622,835
Held to Maturity, Fair Value	$ 21,954,235	$ 21,797,695

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Note 10 - Investment Securities - Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Securities with unrealized losses, fair value	$ 21,294	$ 21,641
Securities with unrealized losses, gross unrealized losses	(660)	(885)
Securities with unrealized losses, less than 12 months, fair value	21,294	21,338
Securities with unrealized losses, less than 12 months, gross unrealized losses	(660)	(868)
Securities with unrealized losses, 12 months or greater, fair value		303
Securities with unrealized losses, 12 months or greater, gross unrealized losses		(17)
US Government Agencies Debt Securities [Member]
Securities with unrealized losses, fair value	19,759	19,553
Securities with unrealized losses, gross unrealized losses	(659)	(864)
Securities with unrealized losses, less than 12 months, fair value	19,759	19,553
Securities with unrealized losses, less than 12 months, gross unrealized losses	(659)	(864)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Municipal Bonds [Member]
Securities with unrealized losses, fair value	1,535	1,536
Securities with unrealized losses, gross unrealized losses	(1)	(3)
Securities with unrealized losses, less than 12 months, fair value	1,535	1,536
Securities with unrealized losses, less than 12 months, gross unrealized losses	(1)	(3)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Certificates of Deposit [Member]
Securities with unrealized losses, fair value		249
Securities with unrealized losses, gross unrealized losses		(1)
Securities with unrealized losses, less than 12 months, fair value		249
Securities with unrealized losses, less than 12 months, gross unrealized losses		(1)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Mutual Fund Shares [Member]
Securities with unrealized losses, fair value		87
Securities with unrealized losses, gross unrealized losses		(2)
Securities with unrealized losses, less than 12 months, fair value
Securities with unrealized losses, less than 12 months, gross unrealized losses
Securities with unrealized losses, 12 months or greater, fair value		87
Securities with unrealized losses, 12 months or greater, gross unrealized losses		(2)
Collateralized Mortgage Backed Securities [Member]
Securities with unrealized losses, fair value		216
Securities with unrealized losses, gross unrealized losses		(15)
Securities with unrealized losses, less than 12 months, fair value
Securities with unrealized losses, less than 12 months, gross unrealized losses
Securities with unrealized losses, 12 months or greater, fair value		216
Securities with unrealized losses, 12 months or greater, gross unrealized losses		$ (15)