Income Taxes

12 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

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

	2023				2022
$ in thousands	Amount		Percent		Amount		Percent
Statutory Federal income tax expense (benefit)	$	(924)	21.0	%	$	(177)	21.0	%
State and local income tax, net of Federal tax benefit	—		—		—		—
Impact of income tax rate changes	—		—		—		—
Change in valuation allowance	953		(21.7)		174		(20.7)
Other	(29)		0.7		3		(0.3)
Total income tax expense (benefit)	$	—	—	%	$	—	—	%

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

$ in thousands	2023		2022
Deferred Tax Assets:
Allowance for loan losses	$	1,742	$	1,874
Compensation and benefits	39		39
Nonaccrual loan interest	63		89
Net operating loss carryforward	19,191		17,692
New markets tax credit	3,434		3,434
Unrealized loss on available-for-sale securities	2,565		1,399
Lease liability	4,452		4,811
Other	33		41
Total Deferred Tax Assets	31,519		29,379
Deferred Tax Liabilities:
Depreciation	671		815
ROU asset	4,169		4,561
Other	52		94
Total Deferred Tax Liabilities	4,892		5,470
Deferred Tax Assets, net	26,627		23,909
Valuation Allowance	(26,627)		(23,909)
Deferred Tax Assets, net of valuation allowance	$	—	$	—

At March 31, 2023, the Company had net operating loss carryforwards for federal purposes of approximately $50.4 million, for state purposes of approximately $76.0 million and for city purposes of approximately $63.5 million which are available to offset future federal, state and city income and which expire over varying periods from March 2030 through March 2040. Federal net operating loss carryforwards of $21.1 million do not expire, as such losses were incurred after the enactment of the Tax Cuts and Jobs Act, which provides for an unlimited loss carryforward period..

The Company has no uncertain tax positions. The Company and its subsidiaries are subject to federal, New York State and New York City income taxation. The Company is no longer subject to examination by taxing authorities for years before March 31, 2018. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination; with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.