Subsequent Events

12 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On May 6, 2021, the Company entered into an agreement with Spectrum Communications Indemnity Inc., in which Spectrum would provide the Company with an unsecured and subordinated long-dated, below-market-rate loan in the amount of $1.5 million to finance eligible loans offered through the Bank's community investment initiatives loan program.

On May 13, 2021, the Company received a non-objection letter from the Federal Reserve Bank of Philadelphia to make a total payment of approximately $3.2 million in settlement of deferred interest on the subordinated debt associated with its trust preferred securities due. Payment in full was sent to the trustee on June 16, 2021 for distribution to all securities holders the following day.

On June 7, 2021, the Bank became aware of a possible fraud incident involving the unauthorized use of a borrower’s account through a third-party vendor’s online cash management system. The Bank’s preliminary investigation of this matter indicates that unauthorized wires totaling $2.1 million were fraudulently withdrawn from the borrower’s money market account

at the Bank from May 12, 2021 through June 1, 2021. The preliminary investigation indicates that an unauthorized person or entity was provided access to the borrower’s account through a third party online banking system. The Bank contacted the appropriate regulatory and law enforcement agencies, as well as its insurance provider. The total exposure to the Bank as a result of this incident is $2.1 million. However, the Bank is pursuing all available sources of recovery and other means of mitigating the potential loss. If any resulting loss is not insured or exceeds applicable insurance limits, it could have a material adverse effect on our business, financial condition and results of operations.