10-K

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-K

[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended March 31, 2016

[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________ to __________

Commission File Number: 000-55087

DELANCO BANCORP, INC.

(Exact name of registrant 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 (Address of principal executive offices)	08075 (Zip Code)

Issuer’s telephone number: (856) 461-0611

Securities registered under Section 12(b) of the Exchange Act: None

Securities registered under Section 12(g) of the Exchange Act:

Common Stock, par value $0.01 per share

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ____   No X

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes  ____   No   X

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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  X  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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  X   No  ___

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   X

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

Large accelerated filer [   ]	Accelerated filer                        [   ]
Non-accelerated filer   [   ] (Do not check if a smaller reporting company)	Smaller reporting company      [X]

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes  ____   No  X

The aggregate market value of the voting and non-voting common equity held by non-affiliates as of September 30, 2015 was approximately $8.9 million.

The number of shares outstanding of the registrant’s common stock as of June 8, 2016 was 945,425.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the 2016 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K.

INDEX

		Page
Part I
Item 1.	Business	1
Item 1A.	Risk Factors	12
Item 1B.	Unresolved Staff Comments	17
Item 2.	Properties	17
Item 3.	Legal Proceedings	18
Item 4.	Mine Safety Disclosures	18
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	19
Item 6.	Selected Financial Data	20
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 8.	Financial Statements and Supplementary Data	37
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	37
Item 9A.	Controls and Procedures	37
Item 9B.	Other Information	38
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	39
Item 11.	Executive Compensation	39
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	39
Item 13.	Certain Relationships and Related Transactions, and Director Independence	40
Item 14.	Principal Accounting Fees and Services	40
Part IV
Item 15.	Exhibits and Financial Statement Schedules	40
SIGNATURES		42

This report contains certain “forward-looking statements” within the meaning of the federal securities laws that are based on assumptions and may describe future plans, strategies and expectations of Delanco Bancorp, Inc. (“Delanco Bancorp” or the “Company”) and Delanco Federal Savings Bank (“Delanco Federal” or the “Bank”). These forward-looking statements are generally identified by terms such as “expects,” “believes,” “anticipates,” “intends,” “estimates,” “projects” and similar expressions.

Management’s 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 the operations of Delanco Bancorp and its subsidiaries include, but are not limited to, the following: interest rate trends; the general economic climate in the market area in which we operate, as well as nationwide; our ability to control costs and expenses; competitive products and pricing; loan delinquency rates and changes in federal and state legislation and regulation. Additional factors that may affect our results are discussed in this Annual Report on Form 10-K under “Item 1A—Risk Factors.” These risks and uncertainties should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements. We assume no obligation to update any forward-looking statements.

PART I

ITEM 1. BUSINESS

General

We are headquartered in Delanco Township, New Jersey and operate as a community-oriented financial institution dedicated to serving the financial services needs of consumers and businesses within our market areas. Delanco Federal is engaged primarily in the business of attracting deposits from the general public and using such funds to originate one- to four-family real estate loans and to a much lesser extent, multi-family and nonresidential real estate loans, home equity and consumer loans which we primarily hold for investment. Delanco Federal also maintains an investment portfolio. Delanco Federal’s primary federal regulator is the Office of the Comptroller of the Currency (the “OCC”). The FDIC, through the Deposit Insurance Fund, insures Delanco Federal’s deposit accounts up to the applicable legal limits. Delanco Federal is a member of the Federal Home Loan Bank (“FHLB”) of New York.

Effective October 16, 2013, Delanco Bancorp completed its public stock offering in connection with the conversion of Delanco MHC (the “MHC”) from the mutual holding company to the stock holding company form of organization (the “Conversion”). As a result of the Conversion, the Company succeeded old Delanco Bancorp, a federal corporation (“old Delanco Bancorp”), as the holding company for Delanco Federal and the MHC ceased to exist. A total of 525,423 shares of Company common stock were sold in a subscription and community offering at $8.00 per share, including shares purchased by the Delanco Federal Savings Bank’s employee stock ownership plan (the “ESOP”). Additionally, approximately 420,093 shares were issued to the stockholders of old Delanco Bancorp (other than the MHC) in exchange for their shares of old Delanco Bancorp common stock at an exchange ratio of 0.5711 share of Company common stock for each share of old Delanco Bancorp common stock.

Delanco Bancorp’s business activity is the ownership of the outstanding capital stock of Delanco Federal. Delanco Bancorp does not own or lease any property but instead uses the premises, equipment and other property of Delanco Federal with the payment of appropriate rental fees, as required by applicable law and regulations, under the terms of an expense allocation agreement. In the future, Delanco Bancorp may acquire or organize other operating subsidiaries; however, there are no current plans, arrangements, agreements or understandings, written or oral, to do so.

Our website address is www.delancofsb.com. Information on our website should not be considered a part of this report.

Market Area

We are headquartered in Delanco Township, New Jersey. In addition to our main office, we operate a full-service branch office in Cinnaminson, New Jersey. Delanco and Cinnaminson are in western Burlington County, New Jersey, across the Delaware River from northeastern Philadelphia. We consider Burlington County to be our primary market area.

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The population of Burlington County has remained steady in recent years, while unemployment has remained high, creating challenges for the growth of our business. The 2015 Census-estimated population of Burlington County was approximately 450,000. Burlington County’s population is projected to remain steady through 2017. The Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metropolitan statistical area, of which Burlington County is a part, is the sixth largest in the United States as of July 2012 with an estimated population of 6.0 million. The city of Philadelphia is the fifth most populous city in the United States.

According to the National Association of REALTORS, the median sales price for existing single-family homes in the Philadelphia metropolitan area decreased from $234,900 in 2007 to $204,900 in March 2015. In comparison, the median sales price for existing single-family homes in the United States decreased from $217,900 in 2007 to $210,700 in March 2015.

Competition

We face significant competition for the attraction of deposits and origination of loans. Our most direct competition for deposits has historically come from the many financial institutions operating in our market area and, to a lesser extent, from other financial service companies such as brokerage firms, credit unions and insurance companies. Several large banks operate in our market area, including Bank of America, Wells Fargo & Company, TD Bank and PNC Bank. These institutions are significantly larger than us and, therefore, have significantly greater resources. We also face competition for customers’ funds from money market funds, mutual funds and other corporate and government securities. At June 30, 2015, which is the most recent date for which data is available from the FDIC, we held 1.08% of the deposits in Burlington County, New Jersey.

Our competition for loans comes primarily from financial institutions in our market area and, to a lesser extent, from other financial service providers, such as mortgage companies and mortgage brokers. Competition for loans also comes from non-depository financial service companies, such as insurance companies, securities companies and specialty finance companies.

We expect competition to remain intense in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry. Technological advances, for example, have lowered barriers to entry, allowed banks to expand their geographic reach by providing services over the Internet and made it possible for non-depository institutions to offer products and services that traditionally have been provided by banks. Federal law permits affiliation among banks, securities firms and insurance companies, which promotes a competitive environment in the financial services industry. Competition for deposits and the origination of loans could limit our growth in the future.

Lending Activities

One- to Four-Family Residential Loans. We offer three types of residential mortgage loans: fixed-rate loans, balloon loans and adjustable-rate loans. We offer fixed-rate mortgage loans with terms of 15, 20 or 30 years and balloon mortgage loans with terms of five, ten or 15 years. We offer adjustable-rate mortgage loans with interest rates and payments that adjust annually after an initial fixed period of one or three years. Interest rates and payments on our adjustable-rate loans generally are adjusted to a rate equal to a percentage above the one year U.S. Treasury index. The maximum amount by which the interest rate may be increased or decreased is generally 2% per adjustment period and the lifetime interest rate cap is generally 6.0% over the initial interest rate of the loan. We generally retain all of the mortgage loans that we originate, although from time to time we have sold some of the 30-year, fixed-rate mortgage loans that we originated. If we choose to sell any mortgages in the future, it would be with the servicing of the loans retained by Delanco Federal.

Borrower demand for adjustable-rate or balloon loans compared to fixed-rate loans is a function of the level of interest rates, the expectations of changes in the level of interest rates, and the difference between the interest rates and loan fees offered for fixed-rate mortgage loans as compared to the interest rates and loan fees for adjustable-rate or balloon loans. The relative amount of fixed-rate, balloon and adjustable-rate mortgage loans that can be originated at any time is largely determined by the demand for each in a competitive environment. We have seen little demand for adjustable-rate loans in the low interest rate environment that has prevailed in recent years. The loan fees, interest rates and other provisions of mortgage loans are determined by us on the basis of our own pricing criteria and competitive market conditions.

While one- to four-family residential real estate loans are normally originated with up to 30-year terms, such loans typically remain outstanding for substantially shorter periods because borrowers often prepay their loans in full either upon sale of the property pledged as security or upon refinancing the original loan. Therefore, average loan maturity is a function of, among other factors, the level of purchase and sale activity in the real estate market, prevailing interest rates and the interest rates payable on outstanding loans. We do not offer loans with negative amortization and generally do not offer interest only loans.

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We will make loans with loan-to-value ratios up to 95%; however, we require private mortgage insurance for loans with a loan-to-value ratio over 80%. We require all properties securing mortgage loans to be appraised by a board-approved independent appraiser. We generally require title insurance on all first mortgage loans. Borrowers must obtain hazard insurance, and flood insurance is required for loans on properties located in a flood zone.

Commercial and Multi-Family Real Estate Loans. We have traditionally offered fixed- and adjustable-rate mortgage loans secured by a variety of commercial and multi-family real estate, such as small office buildings, warehouses, retail properties and small apartment buildings. We originate a variety of fixed- and adjustable-rate commercial real estate and multi-family real estate loans generally for terms up to five to seven years and payments based on an amortization schedule of up to 25 years. Adjustable-rate loans are typically based on the Prime Rate and the Constant Maturity Treasury rate. Loans are secured by first mortgages, and amounts generally do not exceed 80% of the property’s appraised value.

Construction Loans. We originate loans to individuals to finance the construction of residential dwellings. We also make construction loans for small commercial development projects. Our construction loans generally provide for the payment of interest only during the construction phase, which is usually nine months for residential properties and 12 months for commercial properties. Upon completion of the construction phase, the loan typically converts to a permanent mortgage loan and is reclassified as such. Loans generally can be made with a maximum loan to value ratio of 90% on residential construction and 80% on commercial construction, based on appraised value as if complete. Before making a commitment to fund a construction loan, we require an appraisal of the property by an independent licensed appraiser. We also will require an inspection of the property before disbursement of funds during the term of the construction loan.

Commercial Loans. We offer commercial business loans to professionals, sole proprietorships and small businesses in our market area. We offer installment loans for capital improvements, equipment acquisition and long-term working capital. These loans are secured by business assets other than real estate, such as business equipment and inventory, or are backed by the personal guarantee of the borrower. We originate lines of credit to finance the working capital needs of businesses to be repaid by seasonal cash flows or to provide a period of time during which the business can borrow funds for planned equipment purchases. We also offer accounts receivable lines of credit.

When making commercial business loans, we consider the financial statements of the borrower, the borrower’s payment history of both corporate and personal debt, the debt service capabilities of the borrower, the projected cash flows of the business, the viability of the industry in which the customer operates and the value of the collateral.

Consumer Loans. Our consumer loans consist primarily of home equity loans and lines of credit. We occasionally make loans secured by passbook or certificate accounts and automobile loans.

We offer home equity loans with a maximum combined loan to value ratio of 80% or less. Home equity lines of credit have adjustable rates of interest that are indexed to the Prime Rate as published by The Wall Street Journal. Home equity loans have fixed interest rates and terms that typically range from five to 15 years. Some of our home equity loans are originated as five-year balloon loans with monthly payments based on a 20- to 30-year amortization schedule.

The procedures for underwriting consumer loans include an assessment of the applicant’s payment history on other debts and ability to meet existing obligations and payments on the proposed loan. Although the applicant’s creditworthiness is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, to the proposed loan amount.

Loan Originations, Purchases and Sales. Loan originations come from a number of sources. The primary sources of loan originations are existing customers, walk-in traffic, advertising and referrals from customers.

From time to time, we have purchased participations in loans from the Thrift Institutions Community Investment Corporation of New Jersey and other banking institutions to supplement our lending portfolio. Loan participations totaled $1.4 million at March 31, 2016. Loan participations are also subject to the same credit analysis and loan approvals as loans we originate. We are permitted to review all of the documentation relating to any loan in which we participate. However, in a purchased participation loan, we do not service the loan and thus are subject to the policies and practices of the lead lender with regard to monitoring delinquencies, pursuing collections and instituting foreclosure proceedings.

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In the past, we have sold some of the 30-year fixed rate loans that we originated to the Federal Home Loan Bank of New York for interest risk management purposes. In recent periods we have retained all of the loans that we have originated. We may sell loans from time to time in the future to help manage our asset/liability mix and limit our interest rate risk. We intend to retain the servicing on any loans sold.

Loan Approval Procedures and Authority. Our lending activities follow written, non-discriminatory, underwriting standards and loan origination procedures established by our board of directors and management. The board of directors has granted loan approval authority to our President and Chief Executive Officer up to prescribed limits, based on the officer’s experience and tenure. All loans over $500,000 with respect to residential mortgage loans and smaller amounts with respect to other types of loans must be approved by the loan committee of the board of directors or the full board.

Loans to One Borrower. The maximum amount that we may lend to one borrower and the borrower’s related entities is limited, by regulation, to generally 15% of our stated capital and reserves. At March 31, 2016, our regulatory limit on loans to one borrower was $1.8 million. At that date, our largest lending relationship was $1.4 million and was secured by residential real estate. These loans were performing in accordance with their terms at March 31, 2016.

Loan Commitments. We issue commitments for fixed- and adjustable-rate mortgage loans conditioned upon the occurrence of certain events. Commitments to originate mortgage loans are legally binding agreements to lend to our customers. Generally, our loan commitments expire after 60 days.

Loan Underwriting Risks.

Adjustable-Rate Loans. While we anticipate that adjustable-rate loans will better offset the adverse effects of an increase in interest rates as compared to fixed-rate mortgages, an increased monthly mortgage payment required of adjustable-rate loan borrowers in a rising interest rate environment could cause an increase in delinquencies and defaults. The marketability of the underlying property also may be adversely affected in a high interest rate environment. In addition, although adjustable-rate mortgage loans make our asset base more responsive to changes in interest rates, the extent of this interest sensitivity is limited by the annual and lifetime interest rate adjustment limits.

Construction Loans. Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property’s value at completion of construction and the estimated cost (including interest) of construction. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, we may be required to advance funds beyond the amount originally committed to permit completion of the building. If the estimate of value proves to be inaccurate, we may be confronted, at or before the maturity of the loan, with a building having a value which is insufficient to assure full repayment. If we are forced to foreclose on a building before or at completion due to a default, there can be no assurance that we will be able to recover all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs.

Commercial and Multi-Family Real Estate Loans. Loans secured by commercial and multi-family real estate generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans. Of primary concern in commercial and multi-family real estate lending is the borrower’s creditworthiness and the feasibility and cash flow potential of the project. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a greater extent than residential real estate loans, to adverse conditions in the real estate market or the economy. To monitor cash flows on income properties, we require borrowers and loan guarantors, if any, to provide annual financial statements on commercial and multi-family real estate loans. In reaching a decision on whether to make a commercial or multi-family real estate loan, we consider and review a global cash flow analysis of the borrower and consider the net operating income of the property, the borrower’s expertise, credit history and profitability and the value of the underlying property. We have generally required that the properties securing these real estate loans have debt service coverage ratios (the ratio of earnings before debt service to debt service) of at least 1.25x. An environmental survey or environmental risk insurance is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled hazardous materials.

Commercial Loans. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment or other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Further, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value.

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Consumer Loans. Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly, such as motor vehicles. In the latter case, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.

Investment Activities

We have legal authority to invest in various types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies and of state and municipal governments, mortgage-backed securities and certificates of deposit of federally insured institutions. Within certain regulatory limits, we also may invest a portion of our assets in corporate securities and mutual funds. We also are required to maintain an investment in Federal Home Loan Bank of New York and Atlantic Community Bankers Bank stock.

At March 31, 2016, our investment portfolio totaled $23.7 million, or 18.3% of total assets, and consisted primarily of mortgage-backed securities and debt securities of government sponsored enterprises.

Our investment objectives are to provide and maintain liquidity, to establish an acceptable level of interest rate and credit risk, to provide an alternate source of low-risk investments when demand for loans is weak and to generate a favorable return. Our board of directors has the overall responsibility for the investment portfolio, including approval of our investment policy. The Asset/Liability Committee is responsible for implementation of the investment policy and monitoring our investment performance. Our board of directors reviews the status of our investment portfolio on a monthly basis, or more frequently if warranted.

Deposit Activities and Other Sources of Funds

General. Deposits, borrowings and loan repayments are the major sources of our funds for lending and other investment purposes. Scheduled loan repayments are a relatively stable source of funds, while deposit inflows and outflows and loan prepayments are significantly influenced by general interest rates and money market conditions.

Deposit Accounts. Substantially all of our depositors are residents of New Jersey. Deposits are attracted from within our market area through the offering of a broad selection of deposit instruments, including non-interest-bearing demand deposits (such as checking accounts), interest-bearing demand accounts (such as NOW and money market accounts), savings accounts and certificates of deposit. In addition to accounts for individuals, we also offer commercial checking accounts designed for the businesses operating in our market area. We do not have any brokered deposits. From time to time we promote various accounts in an effort to increase deposits.

Deposit account terms vary according to the minimum balance required, the time periods the funds must remain on deposit and the interest rate, among other factors. In determining the terms of our deposit accounts, we consider the rates offered by our competition, our liquidity needs, profitability to us, and customer preferences and concerns. We generally review our deposit mix and pricing bi-weekly. Our deposit pricing strategy has generally been to offer competitive rates and to be towards the top of the local market for rates on all types of deposit products.

Borrowings. We have the ability to utilize advances from the Federal Home Loan Bank of New York, Atlantic Community Bankers Bank and the Federal Reserve Bank of Philadelphia to supplement our investable funds. The Federal Home Loan Bank functions as a central reserve bank providing credit for member financial institutions. As a member, we are required to own capital stock in the Federal Home Loan Bank and are authorized to apply for advances on the security of such stock and certain of our mortgage loans and other assets (principally securities which are obligations of, or guaranteed by, the United States), provided certain standards related to creditworthiness have been met. Advances are made under several different programs, each having its own interest rate and range of maturities. Depending on the program, limitations on the amount of advances are based either on a fixed percentage of an institution’s net worth or on the Federal Home Loan Bank’s assessment of the institution’s creditworthiness. Atlantic Central Bankers Bank provides correspondent banking services, both credit and noncredit, to financial institutions in the Mid-Atlantic region. As a member, we are required to own capital stock in Atlantic Central Bankers Bank and are authorized to apply for advances under an unsecured line of credit. The Federal Reserve Bank of Philadelphia functions as a central reserve bank providing credit for member financial institutions. We are authorized to apply for advances on the security of such stock and certain of our mortgage loans and other assets (principally securities which are obligations of, or guaranteed by, the United States), provided certain standards related to creditworthiness have been met. At March 31, 2016, we had arrangements to borrow up to $9.6 million from the Federal Home Loan Bank of New York and $1 million from the Atlantic Central Bankers Bank.

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Personnel

As of March 31, 2016, we had 21 full-time equivalent employees, none of whom is represented by a collective bargaining unit. We believe our relationship with our employees is good.

Subsidiaries

The only subsidiary of Delanco Bancorp is Delanco Federal. Delanco Federal has two active subsidiaries, DFSB Properties, LLC, and DFSB Properties II, LLC which is the title holder for repossessed real estate.

Regulation and Supervision

General

Delanco Federal, as a federal savings association, is currently subject to extensive regulation, examination and supervision by the OCC, as its primary federal regulator, and by the FDIC as the insurer of its deposits. Delanco Federal is a member of the Federal Home Loan Bank System and its deposit accounts are insured up to applicable limits by the Deposit Insurance Fund of the FDIC. Delanco Federal must file reports with the OCC concerning its activities and financial condition in addition to obtaining regulatory approvals before entering into certain transactions such as mergers with, or acquisitions of, other financial institutions. There are periodic examinations by the OCC to evaluate Delanco Federal’s safety and soundness and compliance with various regulatory requirements. This regulatory structure is intended primarily for the protection of the insurance fund and depositors. The regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of an adequate allowance for loan losses for regulatory purposes. Any change in such policies, whether by the OCC, the FDIC or Congress, could have a material adverse impact on Delanco Bancorp and Delanco Federal and their operations.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) made extensive changes to the regulation of Delanco Federal. Under the Dodd-Frank Act, the Office of Thrift Supervision was eliminated and responsibility for the supervision and regulation of federal savings associations such as Delanco Federal was transferred to the OCC on July 21, 2011. The OCC is the agency that is primarily responsible for the regulation and supervision of national banks. Additionally, the Dodd-Frank Act created a new Consumer Financial Protection Bureau as an independent bureau of the Federal Reserve Board. The Consumer Financial Protection Bureau assumed responsibility for the implementation of the federal financial consumer protection and fair lending laws and regulations and has authority to impose new requirements. However, institutions of less than $10 billion in assets, such as Delanco Federal, will continue to be examined for compliance with consumer protection and fair lending laws and regulations by, and be subject to the enforcement authority of, their prudential regulators.

Certain of the regulatory requirements that are applicable to Delanco Federal and Delanco Bancorp are described below. This description of statutes and regulations is not intended to be a complete explanation of such statutes and regulations and their effects on Delanco Federal and Delanco Bancorp.

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Federal Banking Regulation

Business Activities. The activities of federal savings banks, such as Delanco Federal, are governed by federal laws and regulations. Those laws and regulations delineate the nature and extent of the business activities in which federal savings banks may engage. In particular, certain lending authority for federal savings banks, e.g., commercial, non-residential real property loans and consumer loans, is limited to a specified percentage of the institution’s capital or assets.

Capital Requirements. In early July 2013, the Federal Reserve Board and the OCC approved revisions to their capital adequacy guidelines and prompt corrective action rules that implement the revised standards of the Basel Committee on Banking Supervision, commonly called Basel III, and address relevant provisions of the Dodd-Frank Act. “Basel III” refers to two consultative documents released by the Basel Committee on Banking Supervision in December 2009, the rules text released in December 2010, and loss absorbency rules issued in January 2011, which include significant changes to bank capital, leverage and liquidity requirements.

The rules include new risk-based capital and leverage ratios, which became effective January 1, 2015, and revised the definition of what constitutes “capital” for purposes of calculating those ratios. The new minimum capital level requirements applicable to Delanco Federal are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 capital ratio of 6% (increased from 4%); (iii) a total capital ratio of 8% (unchanged from current rules); and (iv) a Tier 1 leverage ratio of 4% for all institutions. In addition, the rules assign a higher risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The rules also eliminate the inclusion of certain instruments, such as trust preferred securities, from Tier 1 capital. However, instruments issued prior to May 19, 2010 will be grandfathered for institutions with consolidated assets of $15 billion or less. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of common stock will be required to be deducted from capital, subject to a two-year transition period. Finally, Tier 1 capital will include accumulated other comprehensive income (which includes all unrealized gains and losses on available for sale debt and equity securities), subject to a two-year transition period.

The rules also establish a “capital conservation buffer” of 2.5% above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital and would result in the following minimum ratios: (i) a common equity Tier 1 capital ratio of 7.0%, (ii) a Tier 1 capital ratio of 8.5%, and (iii) a total capital ratio of 10.5%. The new capital conservation buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and would increase by that amount each year until fully implemented in January 2019. An institution would be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations would establish a maximum percentage of eligible retained income that could be utilized for such actions.

The OCC also has authority to establish individual minimum capital requirements in appropriate cases upon a determination that an institution’s capital level is or may become inadequate in light of particular risks or circumstances.

Prompt Corrective Regulatory Action. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept broker deposits. The OCC is required to take certain supervisory actions against undercapitalized institutions, the severity of which depends upon the institution’s degree of undercapitalization. In addition, numerous mandatory supervisory actions become immediately applicable to an undercapitalized institution, including, but not limited to, increased monitoring by regulators and restrictions on growth, capital distributions and expansion. The OCC could also take any one of a number of discretionary supervisory actions, including the issuance of a capital directive and the replacement of senior executive officers and directors. Significantly and critically undercapitalized institutions are subject to additional mandatory and discretionary measures.

Insurance of Deposit Accounts. Delanco Federal’s deposits are insured up to applicable limits by the Deposit Insurance Fund of the FDIC. Deposit insurance per account owner is currently $250,000. Under the FDIC’s risk-based assessment system, insured institutions are assigned a risk category based on supervisory evaluations, regulatory capital levels and certain other factors. An institution’s assessment rate depends upon the category to which it is assigned, and certain adjustments specified by FDIC regulations. Institutions deemed less risky pay lower assessments. The FDIC may adjust the scale uniformly, except that no adjustment can deviate more than two basis points from the base scale without notice and comment. No institution may pay a dividend if in default of the federal deposit insurance assessment.

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The Dodd-Frank Act required the FDIC to revise its procedures to base its assessments upon each insured institution’s total assets less tangible equity instead of deposits. The FDIC finalized a rule, effective April 1, 2011, that set the assessment range at 2.5 to 45 basis points of total assets less tangible equity.

The FDIC has authority to increase insurance assessments. A significant increase in insurance premiums would likely have an adverse effect on the operating expenses and results of operations of Delanco Federal. Management cannot predict what insurance assessment rates will be in the future.

Loans to One Borrower. Federal law provides that savings associations are generally subject to the limits on loans to one borrower applicable to national banks. Generally, subject to certain exceptions, a savings association may not make a loan or extend credit to a single or related group of borrowers in excess of 15% of its unimpaired capital and surplus. An additional amount may be lent, equal to 10% of unimpaired capital and surplus, if secured by specified readily-marketable collateral.

Qualified Thrift Lender Test. Federal law requires savings associations to meet a qualified thrift lender test. Under the test, a savings association is required to either qualify as a “domestic building and loan association” under the Internal Revenue Code or maintain at least 65% of its “portfolio assets” (total assets less: (i) specified liquid assets up to 20% of total assets; (ii) intangibles, including goodwill; and (iii) the value of property used to conduct business) in certain “qualified thrift investments” (primarily residential mortgages and related investments, including certain mortgage-backed securities but also including education, credit card and small business loans) in at least nine months out of each 12-month period.

A savings association that fails the qualified thrift lender test is subject to certain operating restrictions and the Dodd-Frank Act also specifies that failing the qualified thrift lender test is a violation of law that could result in an enforcement action and dividend limitations. As of March 31, 2016, Delanco Federal maintained 92.1% of its portfolio assets in qualified thrift investments and, therefore, met the qualified thrift lender test.

Limitation on Capital Distributions. Federal regulations impose limitations upon all capital distributions by a savings association, including cash dividends, payments to repurchase its shares and payments to shareholders of another institution in a cash-out merger. Under the regulations, an application to and the prior approval of the OCC is required before any capital distribution if the institution does not meet the criteria for “expedited treatment” of applications under OCC regulations (i.e., generally, examination and Community Reinvestment Act ratings in the two top categories), the total capital distributions for the calendar year exceed net income for that year plus the amount of retained net income for the preceding two years, the institution would be undercapitalized following the distribution or the distribution would otherwise be contrary to a statute, regulation or agreement with the OCC. If an application is not required, the institution must still provide 30 days prior written notice to, and receive the non-objection of, the Federal Reserve Board of the capital distribution if, like Delanco Federal, it is a subsidiary of a holding company, as well as an informational notice filing to the OCC. If Delanco Federal’s capital ever fell below its regulatory requirements or the OCC notified it that it was in need of increased supervision, its ability to make capital distributions could be restricted. In addition, the OCC could prohibit a proposed capital distribution by any institution, which would otherwise be permitted by the regulation, if the OCC determines that such distribution would constitute an unsafe or unsound practice.

Community Reinvestment Act. All federal savings associations have a responsibility under the Community Reinvestment Act and related regulations to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. An institution’s failure to satisfactorily comply with the provisions of the Community Reinvestment Act could result in denials of regulatory applications. Responsibility for administering the Community Reinvestment Act, unlike other fair lending laws, is not being transferred to the Consumer Financial Protection Bureau. Delanco Federal received an “outstanding” Community Reinvestment Act rating in its most recently completed examination.

Transactions with Related Parties. Federal law limits Delanco Federal’s authority to engage in transactions with “affiliates” (e.g., any entity that controls or is under common control with Delanco Federal, including Delanco Bancorp and its other subsidiaries). The aggregate amount of covered transactions with any individual affiliate is limited to 10% of the capital and surplus of the savings association. The aggregate amount of covered transactions with all affiliates is limited to 20% of the savings association’s capital and surplus. Certain transactions with affiliates are required to be secured by collateral in an amount and of a type specified by federal law. The purchase of low quality assets from affiliates is generally prohibited. Transactions with affiliates must generally be on terms and under circumstances that are at least as favorable to the institution as those prevailing at the time for comparable transactions with non-affiliated companies. In addition, savings associations are prohibited from lending to any affiliate that is engaged in activities that are not permissible for bank holding companies and no savings association may purchase the securities of any affiliate other than a subsidiary.

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The Sarbanes-Oxley Act of 2002 generally prohibits loans by Delanco Bancorp to its executive officers and directors. However, the law contains a specific exception for loans by a depository institution to its executive officers and directors in compliance with federal banking laws. Under such laws, Delanco Federal’s authority to extend credit to executive officers, directors and 10% shareholders (“insiders”), as well as entities such persons control, is limited. The laws limit both the individual and aggregate amount of loans that Delanco Federal may make to insiders based, in part, on Delanco Federal’s capital level and requires that certain board approval procedures be followed. Such loans are required to be made on terms substantially the same as those offered to unaffiliated individuals and not involve more than the normal risk of repayment. There is an exception for loans made pursuant to a benefit or compensation program that is widely available to all employees of the institution and does not give preference to insiders over other employees. Loans to executive officers are subject to additional limitations based on the type of loan involved.

Enforcement. The OCC currently has primary enforcement responsibility over savings associations and has authority to bring actions against the institution and all institution-affiliated parties, including shareholders, and any attorneys, appraisers and accountants who knowingly or recklessly participate in wrongful actions likely to have an adverse effect on an insured institution. Formal enforcement action may range from the issuance of a capital directive or cease and desist order to removal of officers and/or directors to institution of receivership, conservatorship or termination of deposit insurance. Civil penalties cover a wide range of violations and can amount to $25,000 per day, or even $1.0 million per day in especially egregious cases. The FDIC has the authority to recommend to the OCC that enforcement action be taken with respect to a particular savings association. If action is not taken by the OCC, the FDIC has authority to take such action under certain circumstances. Federal law also establishes criminal penalties for certain violations.

Federal Home Loan Bank System. Delanco Federal is a member of the Federal Home Loan Bank System, which consists of 12 regional Federal Home Loan Banks. The Federal Home Loan Bank provides a central credit facility primarily for member institutions. Delanco Federal, as a member of the Federal Home Loan Bank of New York, is required to acquire and hold shares of capital stock in that Federal Home Loan Bank. Delanco Federal was in compliance with this requirement with an investment in Federal Home Loan Bank stock at March 31, 2016 of $254 thousand.

Federal Reserve Board System. The Federal Reserve Board regulations require savings associations to maintain non-interest earning reserves against their transaction accounts (primarily Negotiable Order of Withdrawal (NOW) and regular checking accounts). The regulations generally provide that reserves be maintained against aggregate transaction accounts as follows: a 3% reserve ratio is assessed on net transaction accounts up to and including $103.6 million; a 10% reserve ratio is applied above $103.6 million. The first $14.5 million of otherwise reservable balances (subject to adjustments by the Federal Reserve Board) are exempted from the reserve requirements. Delanco Federal complies with the foregoing requirements.

Other Regulations

Delanco Federal’s operations are also subject to federal laws applicable to credit transactions, including the:

● Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;

● Home Mortgage Disclosure Act of 1975, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;

● Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;

● Fair Credit Reporting Act of 1978, governing the use and provision of information to credit reporting agencies;

● Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and

● rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.

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The operations of Delanco Federal also are subject to laws such as the:

● Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;

● Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services; and

● Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check.

Holding Company Regulation

General. As a savings and loan holding company, Delanco Bancorp is subject to Federal Reserve Board regulations, examinations, supervision, reporting requirements and regulations regarding its activities. Among other things, this authority permits the Federal Reserve Board to restrict or prohibit activities that are determined to be a serious risk to Delanco Federal.

Pursuant to federal law and regulations and policy, a savings and loan holding company such as Delanco Bancorp may generally engage in the activities permitted for financial holding companies under Section 4(k) of the Bank Holding Company Act and certain other activities that have been authorized for savings and loan holding companies by regulation.

Federal law prohibits a savings and loan holding company from, directly or indirectly or through one or more subsidiaries, acquiring more than 5% of the voting stock of another savings association, or savings and loan holding company thereof, without prior written approval of the Federal Reserve Board or from acquiring or retaining, with certain exceptions, more than 5% of a non-subsidiary holding company or savings association. A savings and loan holding company is also prohibited from acquiring more than 5% of a company engaged in activities other than those authorized by federal law or acquiring or retaining control of a depository institution that is not insured by the FDIC. In evaluating applications by holding companies to acquire savings associations, the Federal Reserve Board must consider the financial and managerial resources and future prospects of the company and institution involved, the effect of the acquisition on the risk to the insurance funds, the convenience and needs of the community and competitive factors.

The Federal Reserve Board is prohibited from approving any acquisition that would result in a multiple savings and loan holding company controlling savings associations in more than one state, except: (i) the approval of interstate supervisory acquisitions by savings and loan holding companies; and (ii) the acquisition of a savings association in another state if the laws of the state of the target savings association specifically permit such acquisitions. The states vary in the extent to which they permit interstate savings and loan holding company acquisitions.

Source of Strength. The Dodd-Frank Act also extends the “source of strength” doctrine to savings and loan holding companies. The regulatory agencies must promulgate regulations implementing the “source of strength” policy that holding companies act as a source of strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress.

Dividends. The Federal Reserve Board has the power to prohibit dividends by savings and loan holding companies if their actions constitute unsafe or unsound practices. The Federal Reserve Board has issued a policy statement on the payment of cash dividends by bank holding companies, which also applies to savings and loan holding companies and which expresses the Federal Reserve Board’s view that a holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality and overall financial condition. The Federal Reserve Board also indicated that it would be inappropriate for a holding company experiencing serious financial problems to borrow funds to pay dividends. Under the prompt corrective action regulations, the Federal Reserve Board may prohibit a bank holding company from paying any dividends if the holding company’s bank subsidiary is classified as “undercapitalized.”

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Acquisition of Delanco Bancorp. Under the Federal Change in Bank Control Act, a notice must be submitted to the Federal Reserve Board if any person (including a company), or group acting in concert, seeks to acquire direct or indirect “control” of a savings and loan holding company or savings association. Under certain circumstances, a change of control may occur, and prior notice is required, upon the acquisition of 10% or more of the outstanding voting stock of the company or institution, unless the Federal Reserve Board has found that the acquisition will not result in a change of control. Under the Change in Control Act, the Federal Reserve Board generally has 60 days from the filing of a complete notice to act, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the anti-trust effects of the acquisition. Any company that acquires control would then be subject to regulation as a savings and loan holding company.

Regulatory Agreement

Delanco Federal is a party to a formal written agreement with the OCC dated November 21, 2012. The written agreement supersedes and terminates the Order to Cease and Desist issued by the Office of Thrift Supervision on March 17, 2010.

The written agreement requires Delanco Federal to take the following actions:

● prepare a three-year strategic plan that establishes objectives for Delanco Federal’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 Delanco Federal has failed to submit an acceptable capital plan or fails to implement or adhere to its capital plan, then the OCC may require Delanco Federal to develop a contingency capital plan detailing Delanco Federal’s proposal to sell, merge or liquidate Delanco Federal;

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

● implement a plan to improve Delanco Federal’s credit risk management and credit administration practices;

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

● review the capabilities of Delanco Federal’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 written agreement does not require Delanco Federal to maintain any specific minimum regulatory capital ratios. However, by letter dated January 2, 2013, the OCC established higher individual minimum capital requirements for Delanco Federal. Specifically, Delanco Federal must maintain Tier 1 capital at least equal to 8% of adjusted total assets, Tier 1 capital at least equal to 12% of risk-weighted assets, and total capital at least equal to 13% of risk-weighted assets. At March 31, 2016, Delanco Federal’s Tier 1 leverage capital ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio were 8.67%, 15.99% and 17.26%, respectively.

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ITEM 1A. RISK FACTORS

We have experienced net losses in each of the last two fiscal years and we may not return to profitability in the near future.

We have experienced net losses of $18 thousand and $633 thousand for the years ended March 31, 2016 and 2015, respectively. Our profitability has suffered due to lower net interest income resulting from the prolonged low interest rate environment, as well as heightened provisions for loan losses, expenses for and losses on the sale of real estate owned and other problem loan expenses. For the year ended March 31, 2016, we incurred net real estate owned expenses and losses of $427 thousand and other problem loan expenses of $74 thousand. For the year ended March 31, 2015, we incurred provision expenses of $390 thousand, real estate owned expenses and losses of $877 thousand, and other problem loan expenses of $160 thousand. At March 31, 2016, non-performing assets and troubled debt restructurings totaled $6.1 million, or 4.74% of total assets. As we work through our problem assets, we may incur additional expenses and losses on real estate owned and other problem loan expenses, while continued high levels of problem assets may result in additional provisions for loan losses, all of which would impede our return to profitability. In addition, our earnings have been adversely affected by a shrinking net interest margin caused by the protracted low interest rate environment and its impact on earning asset yields. Our net interest margin was 3.15% for the year ended March 31, 2016, as compared to 3.26% for the year ended March 31, 2015. Our average yield on earning assets declined to 3.63% for the year ended March 31, 2016, from 3.78% for the year ended March 31, 2015 as higher yielding loans were paid off or refinanced at lower market rates and higher yielding securities were called by the issuer and replaced with lower yielding investments. Continued low market interest rates could cause further declines in our net interest margin, as our ability to reduce our cost of funds to offset further reductions in asset yields is limited.

We are a party to a formal written agreement with the OCC and our failure to comply with that agreement may result in further regulatory enforcement actions, including restrictions on our operations.

Delanco Federal is a party to a formal written agreement with the OCC dated November 21, 2012. The written agreement supersedes and terminates the Order to Cease and Desist issued by the Office of Thrift Supervision on March 17, 2010. The written agreement requires Delanco Federal to take certain actions and implement certain policies and procedures aimed at improving Delanco Federal’s capital, earnings and asset quality. The written agreement does not require Delanco Federal to maintain any specific minimum regulatory capital ratios. However, by letter dated January 2, 2013, the OCC established higher individual minimum capital requirements for Delanco Federal. Specifically, Delanco Federal must maintain Tier 1 capital at least equal to 8% of adjusted total assets, Tier 1 capital at least equal to 12% of risk-weighted assets, and total capital at least equal to 13% of risk-weighted assets. At March 31, 2016, Delanco Federal’s Tier 1 leverage capital ratio, Tier 1 risk-based capital ratio and total risk based-capital ratio were 8.67%, 15.99% and 17.26% respectively.

The written agreement will remain in effect until terminated, modified, or suspended in writing by the OCC. A failure to comply with the written agreement could result in the initiation of further enforcement actions by the OCC, including the imposition of civil monetary penalties. The written agreement has resulted in additional regulatory compliance expense for the Company. A detailed description of the written agreement can be found at “Regulation and Supervision—Regulatory Agreement.”

A return of recessionary conditions could result in increases in our level of non-performing loans and/or reduce demand for our products and services, which could have an adverse effect on our results of operations.

Although the U.S. economy has emerged from the severe recession that occurred in 2008 and 2009, economic growth has been slow and uneven, and unemployment levels remain high. Recovery by many businesses has been impaired by lower consumer spending. A return to prolonged deteriorating economic conditions could significantly affect the markets in which we do business, the value of our loans and investments, and our ongoing operations, costs and profitability. Further declines in real estate values and sales volumes and continued elevated unemployment levels may result in higher than expected loan delinquencies, increases in our non-performing and criticized classified assets and a decline in demand for our products and services. These events may cause us to incur losses and may adversely affect our financial condition and results of operations. As a result of the economic downturn, our non-performing assets and troubled debt restructurings jumped from $1.8 million at March 31, 2008 to $9.0 million at March 31, 2009 and then to $10.3 million at March 31, 2010. Since that time, the amount of non-performing assets and troubled debt restructurings has declined to $6.1 million at March 31, 2016. Reduction in problem assets has been slow, and the process has been exacerbated by the condition of some of the properties securing non-performing loans, the lengthy foreclosure process in New Jersey, and extended workout plans with certain borrowers. As we work through the resolution of these assets, the continued economic problems that exist in the financial markets could have a negative impact on the Company.

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A return of recessionary conditions and/or continued negative developments in the domestic and international credit markets may significantly affect the markets in which we do business, the value of our loans and investments, and our ongoing operations, costs and profitability. Further declines in real estate values and sales volumes and continued high unemployment levels may result in higher than expected loan delinquencies and a decline in demand for our products and services. These negative events may cause us to incur losses and may adversely affect our capital, liquidity, and financial condition.

Adverse conditions in the local economy or real estate market could hurt our profits.

Our success depends to a large degree on the general economic conditions in Burlington County, New Jersey and the surrounding areas that comprise our market. Our market has experienced a significant downturn in which we have seen falling home prices, rising foreclosures and an increased level of commercial and consumer delinquencies. At March 31, 2016, 76.0% of our loan portfolio consisted of loans secured by real estate in Burlington County. We have relatively few loans outside of our market area, and, as a result, we have a greater risk of loan defaults and losses in the event of a further economic downturn in our market area, as adverse economic conditions may have a negative effect on the ability of our borrowers to make timely payments of their loans. Further significant decline in real estate values in our market would mean that the collateral for many of our loans would provide less security. As a result, we would be more likely to suffer losses on defaulted loans because our ability to fully recover on defaulted loans by selling the real estate collateral would be diminished.

Our local economy may affect our future growth possibilities and operations in our primary market area. Our future growth opportunities depend on the growth and stability of our regional economy and our ability to expand in our market area. Continued adverse conditions in our local economy may limit funds available for deposit and may negatively affect demand for loans, both of which could have an impact on our profitability.

An inability to maintain our regulatory capital position could require us to raise additional capital, which may not be available on favorable terms or at all.

At March 31, 2016, Delanco Federal’s Tier 1 leverage ratio was 8.67%, which was in compliance with the individual minimum capital requirement imposed by the OCC that requires Delanco Federal to maintain a Tier 1 leverage ratio of at least 8%. Losses on loans, impairments to securities, declines in earnings or a combination of these or other factors could change Delanco Federal’s capital position in a relatively short period of time. If we are unable to remain in compliance with the individual minimum capital requirement imposed by the OCC, we may be required to raise additional capital. The need to raise substantial additional funds may force our management to spend more time in managerial and financing related activities than in operational activities. We may not be able to secure the required funding or it may not be available on favorable terms. Additional offerings of our common stock will dilute the ownership interest and possibly the book value per share of our current shareholders. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any future offerings.

Our allowance for loan losses may be inadequate, which could hurt our earnings.

When borrowers default and do not repay the loans that we make to them, we may lose money. The allowance for loan losses is the amount estimated by management as necessary to cover probable losses in the loan portfolio at the statement of financial condition date. The allowance is established through the provision for loan losses, which is charged to income. Determining the amount of the allowance for loan losses necessarily involves a high degree of judgment. Among the material estimates required to establish the allowance are: loss exposure at default; the amount and timing of future cash flows on impacted loans; value of collateral; and determination of loss factors to be applied to the various elements of the portfolio. If our estimates and judgments regarding such matters prove to be incorrect, our allowance for loan losses might not be sufficient, and additional loan loss provisions might need to be made. Depending on the amount of such loan loss provisions, the adverse impact on our earnings could be material. We might increase the allowance because of changing economic conditions. For example, in a rising interest rate environment, borrowers with adjustable-rate loans could see their payments increase. There may be a significant increase in the number of borrowers who are unable or unwilling to repay their loans, resulting in our charging off more loans and increasing our allowance. In addition, when real estate values decline, the potential severity of loss on a real estate-secured loan can increase significantly, especially in the case of loans with high combined loan-to-value ratios.

The economic downturn that began in 2007 has required us to make significant additions to our allowance for loan losses. For the year ended March 31, 2008 through the year ended March 31, 2015, provisions for loan losses totaled $7.8 million. During this same period, we had net charge-offs of $7.1 million. For our most recent fiscal year ended March 31, 2016, we had recaptured $71 thousand of loan loss reserves and had net charge-offs of $15 thousand. At March 31, 2016, the allowance for loan losses was $1.1 million, which represented 1.32% of total loans and 25.2% of non-performing loans. A large loss could deplete the allowance and require substantial provisions to replenish the allowance, which would negatively affect earnings.

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In addition, bank regulators may require us to make a provision for loan losses or otherwise recognize further loan charge-offs following their periodic review of our loan portfolio, our underwriting procedures, and our loan loss allowance. Any increase in our allowance for loan losses or loan charge-offs as required by such regulatory authorities could have a material adverse effect on our financial condition and results of operations. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies – Allowance for Loan Losses” for a discussion of the procedures we follow in establishing our loan loss allowance.

Our previous emphasis on commercial lending may expose us to increased lending risks.

At March 31, 2016, $11.9 million, or 14.2%, of our loan portfolio consisted of commercial and multi-family real estate loans and commercial business loans, up from $9.9 million at March 31, 2015. Of these loans, $1.3 million were non-performing at March 31, 2016. These types of loans generally expose a lender to greater risk of non-payment and loss than one- to four-family residential mortgage loans because repayment of the loans often depends on the successful operation of the property or a business. These types of loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans. Commercial business loans expose us to additional risks since they typically are made on the basis of the borrower’s ability to make repayments from the cash flow of the borrower’s business and are secured by non-real estate collateral that may depreciate over time. In addition, since such loans generally entail greater risk than one- to four-family residential mortgage loans, we may need to increase our allowance for loan losses in the future to account for potential losses.

If our foreclosed real estate is not properly valued or if our reserves are insufficient, our earnings could be reduced.

We obtain updated valuations in the form of appraisals and broker price opinions when a loan has been foreclosed and the property taken in as foreclosed real estate and at certain other times during the holding period of the asset. Our net book value in the loan at the time of foreclosure and thereafter is compared to the updated fair value of the foreclosed property less estimated selling costs (fair value). A charge-off is recorded for any excess in the asset’s net book value over its fair value less estimated selling costs. If our valuation process is incorrect, or if property values decline, the fair value of our foreclosed real estate may not be sufficient to recover our carrying value in such assets, resulting in the need for additional charge-offs. In addition, bank regulators periodically review our foreclosed real estate and may require us to recognize further charge-offs. Significant charge-offs to our foreclosed real estate could have a material adverse effect on our financial condition and results of operations.

Historically low interest rates may adversely affect our net interest income and profitability.

In recent years it has been the policy of the Federal Reserve Board to maintain interest rates at historically low levels through its targeted federal funds rate and the purchase of mortgage-backed securities. As a result, market rates on the loans we have originated and the yields on securities we have purchased have been at lower levels than historically available. This has been a significant factor in the decrease in the amount of our net interest income to $3.7 million for the year ended March 31, 2016 from $3.8 million for the year ended March 31, 2015 and $3.9 million for the year ended March 31, 2014. Our ability to lower our interest expense to offset declines in asset yields is limited at current interest rate levels. The Federal Reserve Board has indicated its intention to maintain low interest rates in the near future. Accordingly, our net interest income (the difference between interest income earned on assets and interest expense paid on liabilities) may continue to decrease, which would have an adverse effect on our profitability.

Changes in interest rates may hurt our earnings and asset value.

Our net interest income is the interest we earn on loans and investment less the interest we pay on our deposits and borrowings. Our net interest margin is the difference between the yield we earn on our assets and the interest rate we pay for deposits and our other sources of funding. Changes in interest rates—up or down—could adversely affect our net interest margin and, as a result, our net interest income. Although the yield we earn on our assets and our funding costs tend to move in the same direction in response to changes in interest rates, one can rise or fall faster than the other, causing our net interest margin to expand or contract. Our liabilities tend to be shorter in duration than our assets, so they may adjust faster in response to changes in interest rates. As a result, when interest rates rise, our funding costs may rise faster than the yield we earn on our assets, causing our net interest margin to contract until the yield catches up. Changes in the slope of the “yield curve”—or the spread between short-term and long-term interest rates—could also reduce our net interest margin. Normally, the yield curve is upward sloping, meaning short-term rates are lower than long-term rates. Because our liabilities tend to be shorter in duration than our assets, when the yield curve flattens or even inverts, we could experience pressure on our net interest margin as our cost of funds increases relative to the yield we can earn on our assets. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Interest Rate Risk Management.”

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If we conclude that the decline in value of any of our investment securities is other than temporary, we are required to write down the value of that security through a charge to earnings.

We review our investment securities portfolio at each quarter-end reporting period to determine whether the fair value is below the current carrying value. When the fair value of any of our investment securities has declined below its carrying value, we are required to assess whether the decline is other than temporary. If we conclude that the decline is other than temporary, we are required to write down the value of that security through a charge to earnings. As of March 31, 2016, our investment portfolio included securities with an amortized cost of $23.7 million and an estimated fair value of $23.9 million. Changes in the expected cash flows of these securities and/or prolonged price declines may result in our concluding in future periods that the impairment of these securities is other than temporary, which would require a charge to earnings to write down these securities to their fair value. Any charges for other-than-temporary impairment would not impact cash flow, tangible capital or liquidity.

Impairment of our deferred tax assets could require charges to earnings, which could result in a negative impact on our results of operations.

As a result of losses in prior years, we maintain a deferred tax asset (that is an asset recognized to reflect an expected benefit to be realized in the future) that may be used to reduce the amount of tax that we would otherwise be required to pay in future periods. Deferred tax assets are only recognized to the extent it is more likely than not they will be realized. Should our management determine it is not more likely than not that the deferred tax assets will be realized, a valuation allowance with a charge to earnings would be reflected in the period. At March 31, 2016, our net deferred tax asset was $2.1 million, of which $1.9 million was disallowed for regulatory capital purposes. If we are required in the future to take a valuation allowance with respect to our deferred tax asset, our financial condition and results of operations would be negatively affected.

Strong competition within our market area could hurt our profits and slow growth.

We face intense competition in making loans, attracting deposits and hiring and retaining experienced employees. This competition has made it more difficult for us to make new loans and attract deposits. Price competition for loans and deposits sometimes results in us charging lower interest rates on our loans and paying higher interest rates on our deposits, which reduces our net interest income. Competition also makes it more difficult and costly to attract and retain qualified employees. At June 30, 2015, which is the most recent date for which data is available from the FDIC, we held 1.08% of the deposits in Burlington County, New Jersey. Many of the institutions with which we compete have substantially greater resources and lending limits than we have and may offer services that we do not provide. We expect competition to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry. Our profitability depends upon our continued ability to compete successfully in our market area.

We are dependent upon the services of key executives and we could be harmed by the loss of their services.

We rely heavily on our President and Chief Executive Officer, James E. Igo, and on our Chief Financial Officer, Eva Modi. The loss of Mr. Igo or Ms. Modi could have a material adverse impact on our operations because, as a small company, we have fewer management-level personnel that have the experience and expertise to readily replace these individuals. Changes in key personnel and their responsibilities may be disruptive to our business and could have a material adverse effect on our business, financial condition, and results of operations. We do not have employment agreements with our executive officers.

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If we do not rent the excess office space in our Cinnaminson branch building, it will negatively impact earnings.

Our Cinnaminson branch was designed and built to have rental units for third party tenants. Our inability to rent all of those units will necessitate that Delanco Federal cover some or all of the operating expenses for the building without the rental income to offset those expenses, thus having a negative impact on our earnings. Currently, none of the three rental units are occupied by third party tenants.

Regulation of the financial services industry is undergoing major changes, and future legislation could increase our cost of doing business or harm our competitive position.

In 2010 and 2011, in response to the financial crisis and recession that began in 2008, significant regulatory and legislative changes resulted in broad reform and increased regulation impacting financial institutions. The Dodd-Frank Act has created a significant shift in the way financial institutions operate. The Dodd-Frank Act restructured the regulation of depository institutions by merging the Office of Thrift Supervision, which previously regulated Delanco Federal, into the OCC, and assigning the regulation of savings and loan holding companies, including Delanco Bancorp, to the Federal Reserve Board. The Dodd-Frank Act also created the Consumer Financial Protection Bureau to administer consumer protection and fair lending laws, a function that was formerly performed by the depository institution regulators. The Dodd-Frank Act contains various other provisions designed to enhance the regulation of depository institutions and prevent the recurrence of a financial crisis such as occurred in 2008 through 2009. The full impact of the Dodd-Frank Act on our business and operations will not be known for years until regulations implementing the statute are written and adopted. The Dodd-Frank Act may have a material impact on our operations, particularly through increased regulatory burden and compliance costs. Any future legislative changes could have a material impact on our profitability, the value of assets held for investment or collateral for loans. Future legislative changes could require changes to business practices or force us to discontinue businesses and potentially expose us to additional costs, liabilities, enforcement action and reputational risk.

New capital rules generally require insured depository institutions to hold more capital. The impact of the new rules on our financial condition and operations is uncertain but could be materially adverse.

In July 2013, the federal regulators adopted final rules for the Basel III capital framework. These rules substantially amended the regulatory risk-based capital rules applicable to Delanco Federal. The rules phase in over time beginning in 2015 and become fully effective in 2019. Beginning in 2015, Delanco Federal’s minimum capital requirements were (i) a common Tier 1 equity ratio of 4.5%, (ii) a Tier 1 capital (common Tier 1 capital plus additional Tier 1 capital) of 6% (up from 4%) and (iii) a total capital ratio of 8% (the current requirement). Delanco Federal’s leverage ratio requirement will remain at 4%. Beginning in 2016, a capital conservation buffer will phase in over three years, ultimately resulting in a requirement of 2.5% on top of the common Tier 1, Tier 1 and total capital requirements, resulting in a required common Tier 1 equity ratio of 7%, a Tier 1 ratio of 8.5%, and a total capital ratio of 10.5%. Failure to satisfy any of these three capital requirements will result in limits on paying dividends, engaging in share repurchases and paying discretionary bonuses. These limitations will establish a maximum percentage of eligible retained income that could be utilized for such actions.

We operate in a highly regulated environment and we may be adversely affected by changes in laws and regulations.

We are subject to extensive regulation, supervision and examination by the Federal Reserve Board and the OCC, our primary federal regulators, and by the FDIC, as insurer of our deposits. Such regulation and supervision governs the activities in which an institution and its holding company may engage and are intended primarily for the protection of the insurance fund and the depositors and borrowers of Delanco Federal rather than for holders of Delanco Bancorp common stock. Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets and determination of the level of our allowance for loan losses. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations.

Our information systems may experience an interruption or breach in security.

We rely heavily on communications and information systems to conduct our business. Any failure, interruption, or breach in security or operational integrity of these systems could result in failures or disruptions in our customer relationship management, general ledger, deposit, loan, and other systems. While we have policies and procedures designed to prevent or limit the effect of the failure, interruption, or security breach of our information systems, we cannot assure you that any such failures, interruptions, or security breaches will not occur or, if they do occur, that they will be adequately addressed. The occurrence of any failures, interruptions, or security breaches of our information systems could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation and possible financial liability, any of which could have a material adverse effect on our financial condition and results of operations.

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We are dependent on our information technology and telecommunications systems and third-party service providers; systems failures, interruptions and security breaches could have a material adverse effect on us.

Our business is dependent on the successful and uninterrupted functioning of our information technology and telecommunications systems and third-party service providers. The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt our operations. Because our information technology and telecommunications systems interface with and depend on third-party systems, we could experience service denials if demand for such services exceeds capacity or such third-party systems fail or experience interruptions. If significant, sustained or repeated, a system failure or service denial could compromise our ability to operate effectively, damage our reputation, result in a loss of customer business, and/or subject us to additional regulatory scrutiny and possible financial liability, any of which could have a material adverse effect on us.

Our third-party service providers may be vulnerable to unauthorized access, computer viruses, phishing schemes and other security breaches. We may be required to expend significant additional resources to protect against the threat of such security breaches and computer viruses, or to alleviate problems caused by such security breaches or viruses. To the extent that the activities of our third-party service providers or the activities of our customers involve the storage and transmission of confidential information, security breaches and viruses could expose us to claims, regulatory scrutiny, litigation and other possible liabilities.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

In the ordinary course of our business, we collect and store sensitive data, including our proprietary business information and that of our customers, suppliers and business partners; and personally identifiable information of our customers and employees. The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. We, our customers, and other financial institutions with which we interact, are subject to ongoing, continuous attempts to penetrate key systems by individual hackers, organized criminals, and in some cases, state-sponsored organizations. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such unauthorized access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties; disrupt our operations and the services we provide to customers; damage our reputation; and cause a loss of confidence in our products and services, all of which could adversely affect our business, revenues and competitive position. We may be required to spend significant capital and other resources to protect against the threat of security breaches and computer viruses, or to alleviate problems caused by security breaches or viruses.

To remain competitive, we must keep pace with technological change.

Financial products and services have become increasingly technology-driven. Our ability to meet the needs of our customers competitively, and in a cost-efficient manner, is dependent on the ability to keep pace with technological advances and to invest in new technology as it becomes available. Many of our competitors have greater resources to invest in technology than we do and may be better equipped to market new technology-driven products and services. The ability to keep pace with technological change is important, and the failure to do so could have a material adverse impact on our business and therefore on our financial condition and results of operations.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

We conduct our business through our main office in Delanco, New Jersey and our branch office in Cinnaminson, New Jersey, both of which we own. The net book value of our land, buildings, furniture, fixtures and equipment was $6.3 million as of March 31, 2016.

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ITEM 3. LEGAL PROCEEDINGS

Periodically, there have been various claims and lawsuits against us, such as claims to enforce liens, condemnation proceedings on properties in which we hold security interests, claims involving the making and servicing of real property loans and other issues incident to our business. We are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The common stock of Delanco Bancorp is quoted on the OTCQB Marketplace under the symbol “DLNO.” The following table sets forth the high and low sales prices of the common stock, as reported by the OTCQB Marketplace, during each quarter of fiscal 2016 and 2015. As of June 15, 2016 there were approximately 179 holders of record of the Company’s common stock.

For the Year Ended March 31, 2016	High		Low
First Quarter	$	9.30	$	7.65
Second Quarter		9.60		8.91
Third Quarter		9.40		8.92
Fourth Quarter		10.00		9.04

For the Year Ended March 31, 2015	High		Low
First Quarter	$	8.38	$	8.00
Second Quarter		8.28		7.25
Third Quarter		8.00		6.92
Fourth Quarter		8.20		6.85

Delanco Bancorp has never declared or paid a cash dividend on its common stock. We currently intend to retain any future earnings for use in the operation of our business and do not intend to declare or pay any cash dividends in the foreseeable future. Any determination to pay dividends on our common stock will depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our board of directors considers relevant.

The Company’s ability to pay dividends may depend, in part, on its receipt of dividends from Delanco Federal. The OCC and Federal Reserve Board regulations limit dividends and other distributions from Delanco Federal to us. No insured depository institution may make a capital distribution if, after making the distribution, the institution would be undercapitalized or if the proposed distribution raises safety and soundness concerns. In addition, any payment of dividends by Delanco Federal to Delanco Bancorp that would be deemed to be drawn out of Delanco Federal’s bad debt reserves would require the payment of federal income taxes by Delanco Federal at the then current income tax rate on the amount deemed distributed. See note 14 of the notes to consolidated financial statements included herein. Delanco Bancorp does not contemplate any distribution by Delanco Federal that would result in this type of tax liability.

Under OCC regulations, an application to and the prior approval of the OCC is required prior to any capital distribution if the institution does not meet the criteria for “expedited treatment” of applications under applicable regulations (i.e., generally examination ratings in the top two categories), the total capital distributions for the calendar year exceed net income for that year plus the amount of retained net income for the preceding two years, the institution would be undercapitalized following the distribution or the distribution would otherwise be contrary to a statute, regulation or agreement with the OCC. If an application is not required, an institution must still provide prior notice to the Federal Reserve Board of the capital contribution if it is a subsidiary of a holding company. In such circumstances, notice must also be provided to the OCC. Under the terms of its written agreement with the OCC, Delanco Federal is not permitted to pay dividends without prior regulatory approval. In addition, at the request of the Federal Reserve Board, Delanco Bancorp 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 Delanco Federal without the prior written consent of the Federal Reserve Board.

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Purchases of Equity Securities

The Company did not repurchase any shares of its common stock in the year ended March 31, 2016 and currently has no publicly announced repurchase programs. At the request of the Federal Reserve Board, the Company has adopted resolutions that prohibit it from repurchasing any shares of its stock without the prior approval of the Federal Reserve Board.

ITEM 6. SELECTED FINANCIAL DATA

	Years Ended March 31,
(Dollars in thousands, except per share data)	2016			2015			2014
Financial Condition Data:
Total assets	$	129,415		$	128,573		$	127,396
Investment securities		23,735			25,745			28,949
Loans receivable, net		82,198			80,146			83,539
Deposits		111,865			110,198			110,625
Borrowings		3,000			4,000			2,000
Total stockholders’ equity		13,296			13,172			13,752
Operating Data:
Interest income		4,270			4,368			4,668
Interest expense		570			599			729
Net interest income		3,700			3,769			3,939
Provision for loan losses		(71	)		390			957
Net interest income after provision for loan losses		3,771			3,379			2,982
Noninterest income		165			186			191
Noninterest expenses		4,006			4,523			4,336
Income before taxes		(70	)		(958	)		(1,163	)
Income tax benefit		(52	)		(325	)		(400	)
Net income (loss) (1)	$	(18	)	$	(633	)	$	(763	)
Per Share Data:
Earnings (loss) per share, basic (1)	$	(0.02	)	$	(0.70	)	$	(0.85	)
Earnings (loss) per share, diluted (1)		(0.02	)		(0.70	)		(0.85	)
Weighted average shares – basic (1)		906,720			903,201			899,681
Weighted average shares – diluted (1)		906,720			903,201			899,681

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	Years Ended March 31,
	2016			2015			2014
Performance Ratios:
Return on average assets		(0.01	)%		(0.49	)%		(0.59	)%
Return on average equity		(0.14	)		(4.66	)		(6.21	)
Interest rate spread (1)		3.07			3.21			3.28
Net interest margin (2)		3.15			3.26			3.33
Noninterest expense to average assets					3.53			3.34
Efficiency ratio (3)		103.66			114.36			105.00
Average interest-earning assets to average interest-bearing liabilities		115.08			109.74			108.74
Average equity to average assets		10.34			10.60			9.47
Equity to assets at period end		10.27			10.25			10.79
Capital Ratios (4):
Tangible capital		8.67			8.66			9.23
Core capital		8.67			8.66			9.23
Total risk-based capital		17.26			16.87			17.42
Asset Quality Ratios:
Allowance for loan losses as a percent of total loans		1.32			1.46			1.70
Allowance for loan losses as a percent of nonperforming loans		25.20			30.70			24.10
Net charge-offs to average outstanding loans during the period		0.02			0.78			0.62
Non-performing loans as a percent of total loans		5.24			4.74			7.19
Non-performing assets to total assets		4.74			4.90			6.26

(1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.

(2) Represents net interest income as a percent of average interest-earning assets.

(3) Represents noninterest expense divided by the sum of net interest income and noninterest income.

(4) Capital ratios are for Delanco Federal.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The objective of this section is to help potential investors understand our views on our results of operations and financial condition. You should read this discussion in conjunction with the financial statements and notes to the financial statements that appear at the end of this report.

Overview

Our principal business is to acquire deposits from individuals and businesses in the communities surrounding our offices and to use these deposits to fund loans. We focus on providing our products and services to two segments of customers: individuals and small businesses.

We have experienced net losses of $18 thousand and $633 thousand for the years ended March 31, 2016 and 2015, respectively. Our profitability has suffered due to lower net interest income resulting from the prolonged low interest rate environment, as well as heightened provisions for loan losses, expenses for real estate owned and other problem loan expenses. For the year ended March 31, 2016, we had net interest income of $3.7 million and recognized a $71 thousand recapture of provision for loan losses, net real estate owned expenses and losses of $427 thousand, and other problem loan expenses of $74 thousand. For the year ended March 31, 2015, we had net interest income of $3.8 million and incurred provision expenses of $390 thousand, real estate owned expenses and losses of $877 thousand, and other problem loan expenses of $160 thousand. At March 31, 2016, non-performing assets and troubled debt restructurings totaled $6.1 million, or 4.74% of total assets.

Income. Our primary source of pre-tax income is net interest income. Net interest income is the difference between interest income, which is the income that we earn on our loans and investments, and interest expense, which is the interest that we pay on our deposits and borrowings. Changes in levels of interest rates affect our net interest income.

Our earnings have been adversely affected by a shrinking net interest margin caused by the protracted low interest rate environment and its impact on earning asset yields. Our net interest margin was 3.15% for the year ended March 31, 2016, as compared to 3.26% for the year ended March 31, 2015. Our average yield on earning assets declined to 3.63% for the year ended March 31, 2016, from 3.78% for the year ended March 31, 2015 as higher yielding loans were paid off or refinanced at lower market rates and higher yielding securities were called by the issuer and replaced with lower yielding investments.

A secondary source of income is non-interest income, which is revenue that we receive from providing products and services. The majority of our non-interest income generally comes from service charges (mostly from service charges on deposit accounts). In some years, we recognize income from the sale of loans and securities. Our facility in Cinnaminson includes space that we will rent to other businesses. Currently, the units are vacant.

Allowance 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.

Expenses. The noninterest expenses we incur in operating our business consist of salaries and employee benefits expenses, occupancy expenses, loan expenses, data processing expenses and other miscellaneous expenses, such as office supplies, telephone, postage, advertising and professional services.

Our largest noninterest expense is salaries and employee benefits, which consist primarily of salaries and wages paid to our employees, payroll taxes, and expenses for health insurance, retirement plans and other employee benefits. We have incurred additional noninterest expenses as a result of operating as a public company. These additional expenses consist primarily of legal and accounting fees and expenses of shareholder communications and meetings. In the future, we may recognize additional annual employee compensation expenses stemming from share-based compensation. We cannot determine the actual amount of this expense at this time because applicable accounting practices require that they be based on the fair market value of the shares of common stock at specific points in the future.

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Occupancy expenses, which are the fixed and variable costs of buildings and equipment, consist primarily of depreciation charges, furniture and equipment expenses, maintenance, real estate taxes and costs of utilities.

Critical Accounting Policies

In the preparation of our consolidated financial statements, we have adopted various accounting policies that govern the application of accounting principles generally accepted in the United States. Our significant accounting policies are described in the notes to our financial statements.

Certain accounting policies involve significant judgments and assumptions by us that have a material impact on the carrying value of certain assets and liabilities. We consider these accounting policies to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances. Actual results could differ from these judgments and estimates under different conditions, resulting in a change that could have a material impact on the carrying values of our assets and liabilities and our results of operations.

Allowance for Loan Losses. We consider the allowance for loan losses to be a critical accounting policy. The allowance for loan losses is the amount estimated by management as necessary to cover losses inherent in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses, which is either charged to or a credit to income. Determining the amount of the allowance for loan losses involves a high degree of judgment. Among the material estimates required to establish the allowance are: loss exposure at default; the amount and timing of future cash flows on impacted loans; value of collateral; and determination of loss factors to be applied to the various elements of the portfolio. All of these estimates are susceptible to significant change. Management reviews the level of the allowance at least quarterly and establishes the provision for loan losses based upon an evaluation of the portfolio, past loss experience, current economic conditions and other factors related to the collectability of the loan portfolio. Although we believe that we use the best information available to establish the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluation. In addition, the OCC, as an integral part of its examination process, periodically reviews our allowance for loan losses. Such agency may require us to recognize adjustments to the allowance based on its judgments about information available to it at the time of its examination. A large loss could deplete the allowance and require increased provisions to replenish the allowance, which would adversely affect earnings. See note 2 to the consolidated financial statements.

Deferred Income Taxes. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If current available information raises doubt as to the realization of the deferred tax assets, a valuation allowance is established. 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 Delanco Federal’s Tier I capital. As a result of this variance, our Tier I regulatory capital ratio is lower than our GAAP capital ratio by 1 basis points.

Balance Sheet Analysis

Overview. Total assets at March 31, 2016 were $129.4 million, an increase of $842 thousand, or 0.06%, from total assets of $128.6 million at March 31, 2015. The change in the asset composition primarily reflected an increase in cash and cash equivalents and outstanding loans, and a decrease in investments. Total liabilities at March 31, 2016 were $116.1 million, an increase of $719 thousand, or 0.06%, from total liabilities of $115.4 million at March 31, 2015. The change in liabilities primarily reflected a decrease in advances from Federal Home Loan Bank offset by an increase in non- interest bearing deposits as we concentrated on increasing our core deposits and chose not to match competitors’ rates on certificates of deposit. Total stockholders’ equity increased by $123 thousand, primarily due to decrease in comprehensive loss for the year of $73 thousand.

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Loans. At March 31, 2016, total loans, net, were $82.2 million, or 63.5% of total assets. During the year ended March 31, 2016, loans increased by $2.1 million due primarily to new originations of commercial real estate loans and home equity loans that exceeded the payoffs and principal repayments on existing loans. Commercial and multi-family real estate loans increased by $1.6 million, commercial loans increased by $377 thousand, home equity loans increased by $522 thousand while residential loans decreased by $538 thousand. Net loans experienced an increase for the first time since March 31, 2011 as we increased our lending activities after focusing on working out our problem assets and managing our asset size in order to maintain our capital ratios.

Table 1: Loan Portfolio Analysis

	2016						2015						2014
March 31, (Dollars in thousands)	Amount			Percent			Amount			Percent			Amount			Percent
Real estate loans:
Residential	$	62,251			74.7	%	$	62,789			77.1	%	$	63,524			74.7	%
Commercial and multi-family		9,569			11.5			7,979			9.8			10,414			12.2
Construction		54			0.1			56			0.1			1,009			1.2
Total real estate loans		71,874			86.3			70,824			87.0			74,947			88.1
Commercial loans		2,290			2.7			1,913			2.4			1,307			1.5
Consumer loans:
Home equity		8,528			10.2			8,006			9.8			8,144			9.6
Other		682			0.8			678			0.8			686			0.8
Total consumer loans		9,210			11.0			8,684			10.6			8,830			10.4
Total loans		83,374			100.0	%		81,421			100.0	%		85,084			100.0	%
Net deferred loan fees		(77	)					(90	)					(97	)
Allowance for losses		(1,099	)					(1,185	)					(1,448	)
Loans, net	$	82,198					$	80,146					$	83,539

The following table sets forth certain information at March 31, 2016 regarding the dollar amount of loan principal repayments becoming due during the periods indicated. The table does not include any estimate of prepayments which significantly shorten the average life of all loans and may cause our actual repayment experience to differ from that shown below. Demand loans having no stated schedule of repayments and no stated maturity are reported as due in one year or less. The amounts shown below exclude applicable loans in process, unearned interest in consumer loans and net deferred loan costs. Our adjustable-rate mortgage loans generally do not provide for downward adjustments below the initial discounted contract rate. When market interest rates rise, the interest rates on these loans may increase based on the contract rate (the index plus the margin) exceeding the initial interest rate floor.

Table 2: Contractual Maturities and Interest Rate Sensitivity

March 31, 2016 (Dollars in thousands)	Real Estate Loans		Commercial Loans		Consumer Loans		Total Loans
Amounts due in:
One year or less	$	2,262	$	362	$	1,367	$	3,991
More than one to five years		3,819		643		2,678		7,140
More than five years		65,793		1,285		5,165		72,243
Total	$	71,874	$	2,290	$	9,210	$	83,374
Interest rate terms on amounts due after one year:
Fixed-rate loans	$	65,549	$	875	$	4,152	$	70,576
Adjustable-rate loans		4,063		1,053		3,691		8,807
Total	$	69,612	$	1,928	$	7,843	$	79,383

Securities. The investment securities portfolio was $23.7 million, or 18.3% of total assets, at March 31, 2016. At that date 3.7% of the investment portfolio was invested in mortgage-backed securities, while the remainder was invested primarily in U.S. Government agency and other debt securities. The portfolio decreased $2 million in the year ended March 31, 2016 due to the called U.S. Government agency securities.

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Table 3: Investment Securities

	2016				2015				2014
March 31, (Dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities available for sale:
Government sponsored enterprise securities	$	500	$	497	$	1,000	$	972	$	2,000	$	1,790
Certificates of Deposit		1,500		1,531		−		−		−		−
Mutual funds		122		122		154		155		186		183
Total available for sale		2,122		2,150		1,154		1,127		2,186		1,973
Securities held to maturity:
Government sponsored enterprise securities		19,972		20,033		23,002		22,862		25,007		23,350
Municipal securities		736		735		470		472		547		548
Mortgage-backed securities		877		938		1,145		1,233		1,422		1,513
Total held to maturity		21,585		21,706		24,617		24,567		26,976		25,411
Total	$	23,707	$	23,856	$	25,771	$	25,694	$	29,162	$	27,384

The following table sets forth the stated maturities and weighted average yields of our investment securities at March 31, 2016. Approximately $392 thousand of mortgage-backed securities have adjustable interest rates and will reprice annually within the various maturity ranges. These re-pricing schedules are not reflected in the table below.

Table 4: Investment Maturities Schedule

	One Year or Less					More than One Year to Five Years					More than Five Years to Ten Years					More than Ten Years					Total
March 31, 2016 (Dollars in thousands)	Carrying Value		Weighted Average Yield			Carrying Value		Weighted Average Yield			Carrying Value		Weighted Average Yield			Carrying Value		Weighted Average Yield			Carrying Value		Weighted Average Yield
Securities available-for-sale:
Government sponsored enterprise securities	$	−		−	%	$	−		−	%	$	−		−	%		500		2.35	%	$	500		2.75
Certificates of deposit		−		−			1,000		2.26			500		2.4			−		−			1,500		2.31
Mutual funds		−		−			−		−			−		−			−		−			122		−
Total available for sale		−		−			1,000		2,26			500		2.4			500		2.35			2,122		−
Securities held to maturity:
Government sponsored enterprise securities	$	−		−	%	$	945		1.48	%	$	8,111		2.37	%		10,916		2.83	%	$	19,972		2.58
Municipal securities		736		0.75			−		−			−		−			−		−			736		0.75
Mortgage-backed securities		−		−			−		−			252		2.53			625		3.56			877		3.26
Total held to maturity		736		0.75			945		1.48			8,363		2.37			11,541		2.87			21,585		2.54
Total		736		0.75	%		1,945		1.88	%		8,863		2.37	%		12,041		2.87	%		23,707		−

Deposits. Our deposit base is comprised of demand deposits, money market and passbook accounts and time deposits. We consider demand deposits and money market and passbook accounts to be core deposits. At March 31, 2016, core deposits were 65.0% of total deposits, up from 60.7% at March 31, 2015. We do not have any brokered deposits. Total deposits increased by $1.7 million in the year ended March 31, 2016 as core deposits increased by $5.9 million and certificates of deposit decreased by $4.2 million. During the year ended March 31, 2016, we chose not to match the highest time deposit rates in our market in an effort to reduce our funding costs.

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Table 5: Deposits

	2016					2015					2014
March 31, (Dollars in thousands)	Amount		Percent			Amount		Percent			Amount		Percent
Noninterest-bearing demand deposits	$	12,054		10.8	%	$	10,733		9.74	%	$	7,852		7.1	%
Interest-bearing demand deposits		23,028		20.6			20,816		18.89			19,638		17.8
Savings and money market accounts		37,682		33.7			35,330		32.06			36,896		33.3
Certificates of deposit		39,101		34.9			43,319		39.31			46,239		41.8
Total	$	111,865		100.0	%	$	110,198		100.0	%	$	110,625		100.0	%

Table 6: Time Deposit Maturities of $100,000 or more

March 31, 2016 (Dollars in thousands)	Certificates of Deposit
Maturity Period
Three months or less	$	1,845
Over three through six months		1,613
Over six through twelve months		3,025
Over twelve months		5,777
Total	$	12,260

Table 7: Time deposits by rate

			At March 31,
(Dollars in thousands)			2016		2015		2014
0.00	-	0.99%	$	21,696	$	26,143	$	27,342
1.00	-	1.99%		14,773		12,866		12,374
2.00	-	2.99%		2,632		4,310		6,351
3.00	-	3.99%		−		−		172
Total			$	39,101	$	43,319	$	46,239

Table 8: Time deposits by rate and maturity

			Amount Due
(Dollars in thousands)			Less Than One Year		More Than One Year to Two Years		More Than Two Years to Three Years		More Than Three Years to Four Years		More Than Four Years		Total at March 31, 2015		Percent of Total Certificate Accounts
0.00	-	0.99%	$	17,373	$	4,044	$	279	$	−	$	−	$	21,696		55.5	%
1.00	-	1.99%		3,404		4,138		3,095		2,359		1,777		14,773		37.8
2.00	-	2.99%		2,313		−		−		−		319		2,632		6.7
Total			$	23,090	$	8,182	$	3,374	$	2,359	$	2,096	$	39,101		100.0	%

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Borrowings. We have borrowing arrangements with the FHLB and Atlantic Community Banker’s Bank to provide an additional source of liquidity.

Table 9: Borrowings

March 31, (Dollars in thousands)	2016			2015			2014
Maximum amount outstanding at any month end during the period:
Advances	$	4,000		$	5,000		$	2,000
Average amount outstanding during the period (1):
Advances		3,500			3,667			458
Weighted average interest rate during the period (1):
Advances		0.64	%		0.66	%		0.43	%
Balance outstanding at end of period:
Advances	$	3,000		$	4,000			2,000
Weighted average interest rate at end of period:
Advances		0.57	%		0.69	%		0.43	%

(1) Averages are based on month-end balances.

Results of Operations for the Years Ended March 31, 2016 and 2015

Financial Highlights. Net loss for the year ended March 31, 2016 was $18 thousand compared to net loss of $633 thousand for the year ended March 31, 2015. Our profitability has suffered due to expenses for real estate owned and other problem loan expenses. In addition, our earnings have been adversely affected by a shrinking net interest margin caused by the protracted low interest rate environment and its impact on earning asset yields. Our net interest margin was 3.15% for the year ended March 31, 2016, as compared to 3.26% for the year ended March 31, 2015. Our average yield on earning assets declined to 3.63% for the year ended March 31, 2016, from 3.78% for the year ended March 31, 2015 as higher yielding loans were paid off or refinanced at lower market rates and higher yielding securities were called by the issuer and replaced with lower yielding investments.

Table 10: Summary Income Statements

Year Ended March 31, (Dollars in thousands)	2016			2015			2016 v. 2015			% Change
Net interest income	$	3,700		$	3,769		$	(69	)		(1.8	)%
Provision for loan losses		(71	)		390			(461	)		NM
Noninterest income		165			186			(21	)		11.3
Noninterest expenses		4,007			4,523			(516	)		11.4
Net income (loss)		(18	)		(633	)		(615	)		(97.2	)
Return on average equity		(0.14	)%		(4.66	)%
Return on average assets		(0.01	)		(0.49	)

Net Interest Income. Net interest income for the year ended March 31, 2016 was $3.7 million compared to $3.8 million for the year ended March 31, 2015, a decrease of 1.8%. The net interest margin decreased 11 basis points to 3.15% for the year ended March 31, 2016, as average interest-earning assets increased $1.9 million while average interest-bearing liabilities decreased $3.3 million. Also contributing to the decrease in the net interest margin was a 15 basis point decrease in the average yield on interest-earning assets, which exceeded the 1 basis point decrease in the average cost of interest-bearing liabilities.

For the year ended March 31, 2016, interest income declined 2.2% compared to the prior year. Interest income on loans decreased $45 thousand as the average balance increased $2.6 million and the average yield declined 20 basis points. Interest income on investment securities decreased $53 thousand, as lower average volumes exceeded lower yields on investments.

For the year ended March 31, 2016, interest expense declined 5.0% compared to the prior year, as the average balance of interest bearing deposits decreased $3.1 million and the average rate paid decreased 1 basis points. The decrease in deposits was driven by a decrease of $4.2 million in certificates of deposit, which was partially offset by increases in demand deposits and savings and money market accounts.

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Table 11: Analysis of Net Interest Income

Year Ended March 31, (Dollars in thousands)	2016			2015			2016 v. 2015			% Change
Components of net interest income
Loans	$	3,600		$	3,645		$	(45	)		(1.2	)%
Investment securities		670			723			(53	)		(7.3	)
Total interest income		4,270			4,368			(98	)		(2.2	)
Deposits		544			576			(32	)		(5.5	)
Borrowings		26			23			3			13.0
Total interest expense		570			599			(29	)		(4.8	)
Net interest income		3,700			3,769			(69	)		(1.8	)
Average yields and rates paid
Interest-earning assets		3.63	%		3.78	%	(15		)bp
Interest-bearing liabilities		0.56			0.57			(1	)
Interest rate spread		3.07			3.21			(14	)
Net interest margin		3.15			3.26			(11	)
Average balances
Loans	$	83,666		$	81,079		$	2,587			3.2	%
Investment securities		25,420			27,725			(2,305	)		(8.3	)
Earning assets		117,487			115,628			1,859			1.6
Interest-bearing deposits		98,587			101.696			(3,109	)		(3.1	)
Interest bearing borrowings		3,500			3,666			(166	)		(4.5	)

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. If it is determined that the amount in the allowance is greater than is necessary according to evaluation, a negative provision is recorded and is reflected in earnings. Provisions for loan losses were a negative $71 thousand in the year ended March 31, 2016 compared to $390 thousand in the year ended March 31, 2015. The negative provision for loan losses was primarily attributable to management’s systematic evaluation of risk associated with the loan portfolio and continuing lower historical loss rates. We had $139 thousand in charge-offs in the year ended March 31, 2016, compared to $763 thousand in charge-offs in the year ended March 31, 2015.

The allowance for loan losses was $1.1 million, or 1.32% of total loans outstanding as of March 31, 2016 as compared with $1.2 million, or 1.46% as of March 31, 2015. An analysis of the changes in the allowance for loan losses is presented under “Risk Management – Analysis and Determination of the Allowance for Loan Losses.”

Noninterest Income. Noninterest income was $164 thousand for the year ended March 31, 2016 compared to $186 thousand for the prior year.

Table 12: Noninterest Income Summary

Year Ended March 31, (Dollars in thousands)	2016		2015		$ Change			% Change
Service charges	$	125	$	137	$	(12	)		(8.8	)%
Rental income		19		29		(10	)		34.5
Income from bank owned life insurance		5		4		1			25
Other		15		16		(1	)		(6.3	)
Total	$	164	$	186	$	(22	)		(11.8	)%

Noninterest Expense. Noninterest expense was $4.0 million for the year ended March 31, 2016 compared to $4.5 million for the prior year. The decrease in noninterest expense over the prior year was primarily due to decrease in impairment losses on real estate owned and loan expenses partially offset by a increase in real estate owned expenses.

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Table 13: Noninterest Expense Summary

Year Ended March 31, (Dollars in thousands)	2016		2015		$ Change			% Change
Salaries and employee benefits	$	1,659	$	1,629	$	30			1.8	%
Advertising		24		24		−			−
Office supplies, telephone and postage		110		108		2			1.8
Loan expenses		74		160		(86	)		(53.7	)
Occupancy expense		622		615		7			1.1
Federal deposit insurance premiums		171		171		−			−
Real estate owned impairment losses		247		642		(395	)		(61.5	)
Data processing expenses		238		223		15			6.7
ATM expenses		35		36		(1	)		(2.8	)
Bank charges and fees		85		70		15			21.4
Insurance and surety bond premiums		88		99		(11	)		(11.1	)
Dues and subscriptions		46		30		16			53.3
Professional fees		285		349		(64	)		(18.3	)
Real estate owned expenses, net		177		153		24			15.7
Net loss on sale of real estate owned		3		82		(79	)		(96.3	)
Other		142		132		10			7.6
Total	$	4,006	$	4,523	$	(517	)		(11.4	)%

Income Tax Expense (Benefit). The benefit for income taxes was $53 thousand for 2016, compared to a benefit of $325 thousand for 2015.

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Average Balance Sheets and Related Yields and Rates

The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. For purposes of this table, average balances have been calculated using month-end balances, and nonaccrual loans are included in average balances only. Management does not believe that use of month-end balances instead of daily average balances has caused any material differences in the information presented. Loan fees are included in interest income on loans and are insignificant.

Table 14: Average Balance Tables

Year Ended March 31, (Dollars in thousands)	Average Balance			2016 Interest and Dividends		Yield/ Cost			Average Balance			2015 Interest and Dividends		Yield/ Cost
Assets:
Interest-earning assets:
Loans	$	83,666		$	3,600		4.30	%	$	81,079		$	3,645		4.50	%
Investment securities		25,420			661		2.60			27,725			719		2.59
Other interest-earning assets		8,401			9		0.11			6,824			4		0.06
Total interest-earning assets		117,487			4,270		3.63			115,628			4,368		3.78
Noninterest-earning assets		10,245								12,349
Total assets	$	127,732							$	127,977
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	21,959		$	40		0.18	%	$	22,132		$	40		0.18	%
Savings and money market accounts		35,557			108		0.30			35,059			104		0.30
Certificates of deposit		41,071			396		0.96			44,505			432		0.97
Total interest-bearing deposits		98,587			544		0.55			101,696			576		0.57
FHLB advances		3,500			26		0.74			3,666			23		0.63
Total interest-bearing liabilities		102,087			570		0.56			105,362			599		0.57
Noninterest-bearing demand deposits		11,537								8,578
Other noninterest-bearing liabilities		895								470
Total liabilities		114,519								114,410
Retained earnings		13,213								13,567
Total liabilities and retained earnings	$	127,732							$	127,977
Net interest income				$	3,700							$	3,769
Interest rate spread							3.07	%							3.21	%
Net interest margin							3.15								3.26
Average interest-earning assets to average interest-bearing liabilities		115.08	%							109.74	%

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Rate/Volume Analysis. The following tables set forth the effects of changing rates and volumes on our net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). Changes due to both volume and rate have been allocated proportionally to the volume and rate changes. The net column represents the sum of the prior columns.

Table 15: Net Interest Income – Changes Due to Rate and Volume

2016 Compared to 2015 (Dollars in thousands)	Volume			Rate			Net
Interest income:
Loans receivable	$	122		$	(167	)	$	(45	)
Investment securities		(60	)		2			(58	)
Other interest-earning assets		1			4			5
Total		63			(161	)		(98	)
Interest expense:
Deposits		(12	)		(20	)		(32	)
FHLB advances		(1	)		4			3
Total		(13	)		(16	)		(29	)
Increase (decrease) in net interest income		76			(145	)		(69	)

Risk Management

Overview. Managing risk is an essential part of successfully managing a financial institution. Our most prominent risk exposures are credit risk, interest rate risk and market risk. Credit risk is the risk of not collecting the interest and/or the principal balance of a loan or investment when it is due. Interest rate risk is the potential reduction of interest income as a result of changes in interest rates. Market risk arises from fluctuations in interest rates that may result in changes in the values of financial instruments, such as available-for-sale securities that are accounted for on a mark-to-market basis. Other risks that we face are operational risks, liquidity risks and reputation risk. Operational risks include risks related to fraud, regulatory compliance, processing errors, technology and disaster recovery. Liquidity risk is the possible inability to fund obligations to depositors, lenders or borrowers. Reputation risk is the risk that negative publicity or press, whether true or not, could cause a decline in our customer base or revenue.

Credit Risk Management. Our strategy for credit risk management focuses on having well-defined credit policies and uniform underwriting criteria and providing prompt attention to potential problem loans. In January 2013, we engaged an independent third party to conduct periodic loan portfolio reviews. See “Regulation and Supervision—Regulatory Agreement” for further information on certain regulatory directives applicable to our credit functions.

When a borrower fails to make a required loan payment, we take a number of steps to have the borrower cure the delinquency and restore the loan to current status, including contacting the borrower by letter and phone at regular intervals. When the borrower is in default, we may commence collection proceedings. If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure sale, the real property securing the loan generally is acquired at foreclosure and subsequently sold. Generally, when a consumer loan becomes 60 days past due, we institute collection proceedings and attempt to repossess any personal property that secures the loan. Management informs the board of directors monthly of the amount of loans delinquent more than 30 days, all loans in foreclosure and repossessed property that we own.

Analysis of Nonperforming and Classified Assets. We consider repossessed assets and loans that are 90 days or more past due to be nonperforming assets. Loans are generally placed on nonaccrual status when they become 90 days delinquent at which time the accrual of interest ceases and the allowance for any uncollectible accrued interest is established and charged against operations. Typically, payments received on a nonaccrual loan are applied to the outstanding principal and interest as determined at the time of collection of the loan.

Real estate that we acquire as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until it is sold. When property is acquired it is recorded at the lower of its cost, which is the unpaid balance of the loan, plus foreclosure costs, or fair market value at the date of foreclosure. Holding costs and declines in fair value after acquisition of the property result in charges against income.

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Table 16: Nonperforming Assets

March 31, (Dollars in thousands)	2016			2015			2014
Nonaccrual loans:
Residential real estate	$	1,333		$	880		$	1,277
Commercial and multi-family real estate		553			662			981
Construction		−			−			−
Commercial		21			−			107
Home equity		111			11			219
Consumer		−			71			−
Total		2,018			1,624			2,584
Accruing loans past due 90 days or more:
Residential real estate		−			−			−
Commercial and multi-family real estate		−			−			100
Construction		−			−			−
Commercial		−			−			−
Consumer		−			−			−
Total		−			−			100
Troubled debt restructurings:
In nonaccrual status		744			713			1,519
Performing under modified terms		1,607			1,525			1,917
Total debt restructurings		2,351			2,238			3,436
Total non-performing loans		4,369			3,862			6,120
Real estate owned		1,764			2,433			1,950
Total nonperforming assets	$	6,133		$	6,295		$	8,070
Total nonperforming loans to total loans		5.24	%		4.74	%		7.19	%
Total nonperforming loans to total assets		3.38			3.00			4.80
Total nonperforming assets and troubled debt restructurings to total assets		4.74			4.90			6.33

Table 17: Loan Delinquencies

	March 31,
	2016				2015				2014
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		30-59 Days Past Due		60-89 Days Past Due
Residential real estate	$	577	$	224	$	495	$	1,325	$	1,473	$	307
Commercial real estate		-		289		-		117		494		870
Commercial		340		21		98		-		199		-
Home equity		50		-		34		89		255		241
Consumer		-		-		30		-		79		-
Total	$	967	$	534	$	657	$	1,531	$	2,500	$	1,418

At March 31, 2016, we had 18 loan relationships totaling $2.8 million in nonaccrual loans as compared to 17 relationships totaling $2.3 million at March 31, 2015.  During the year ended March 31, 2016, we experienced a $425 thousand net increase in nonaccrual loans.  This change reflects the transfer to real estate owned of three loans totaling $279 thousand and the return of one loan totaling $229 thousand to accruing status, the full payoff of two loans for $179 thousand, and the charge-off of one loan for $71 thousand. The changes were offset by the downgrading of eight loan relationships to nonaccrual status totaling $1.2 million during the year ended March 31, 2016.  The downgraded loans consisted of four relationships representing residential mortgages totaling $902 thousand, one home equity loan totaling $34 thousand, one commercial loan totaling $21 thousand and two commercial real estate loans totaling $221 thousand.

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At March 31, 2016, our real estate owned consisted of ten single family homes with a total carrying value of $1.25 million, two mixed-use properties with a total carrying value of $159 thousand, one office building with a carrying value of $100 thousand and one commercial office condominium with a carrying value of $253 thousand. At that same date, we had thirteen loans in the process of foreclosure with respect to property that had an appraised value of $3.3 million.

Interest income that would have been recorded for the year ended March 31, 2016 had non-accruing loans been current according to their original terms amounted to $141 thousand. No uncollected interest related to nonaccrual loans was included in interest income for the year ended March 31, 2016.

Federal regulations require us to review and classify our assets on a regular basis. In addition, the OCC has the authority to identify problem assets and, if appropriate, require them to be classified. There are three classifications for problem assets: substandard, doubtful and loss. “Substandard assets” must have one or more defined weaknesses and are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. This category includes other real estate owned. “Doubtful assets” have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. An asset classified “loss” is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. The regulations also provide for a “special mention” category, described as assets which do not currently expose us to a sufficient degree of risk to warrant classification but do possess credit deficiencies or potential weaknesses deserving our close attention. These are considered criticized assets. If we classify an asset as loss, we charge off an amount equal to 100% of the portion of the asset classified loss.

Table 18: Criticized/Classified Assets

March 31, (Dollars in thousands)	2016		2015		2014
Special mention assets	$	343	$	737	$	363
Substandard assets		6,274		6,794		8,078
Doubtful assets		-		-		260
Loss assets		-		-		-
Total criticized/classified assets	$	6,617	$	7,531	$	8,701

Other than disclosed in the above tables, there are no other loans that management has serious doubts about the ability of the borrowers to comply with the present loan repayment terms.

Analysis and Determination of the Allowance 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.

Our methodology for assessing the appropriateness of the allowance for loan losses consists of: (1) a specific valuation allowance on identified problem loans; (2) a general valuation allowance on the remainder of the loan portfolio; and (3) an unallocated component. Although we determine the amount of each element of the allowance separately, the entire allowance for loan losses is available to absorb losses in the loan portfolio.

For loans that are classified as impaired, we establish an allowance when the discounted cash flows (or collateral value or observable market price) of the loan is lower than its carrying value. We also establish a specific allowance for classified loans that do not have an individual allowance. The evaluation is based on our asset review and classified loan list.

We establish a general allowance for loans that are not classified to recognize the inherent losses associated with lending activities. This general valuation allowance is determined by segregating the loans by loan category and assigning allowance percentages to each category. The allowance percentages have been derived using percentages commonly applied under the regulatory framework for Delanco Federal and other similarly-sized institutions. The percentages may be adjusted for significant factors that, in management’s judgment, affect the collectability of the portfolio as of the evaluation date. These significant factors may include changes in lending policies and procedures, changes in existing general economic and business conditions affecting our primary lending areas, credit quality trends, collateral value, loan volumes and concentrations, seasoning of the loan portfolio, recent loss experience in particular segments of the portfolio, duration of the current business cycle and bank regulatory examination results. The applied loss factors are reevaluated periodically to ensure their relevance in the current economic environment. An unallocated component is maintained to cover uncertainties that could affect our estimate of probable losses.

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We identify loans that may need to be charged off as a loss by reviewing all delinquent loans, classified loans and other loans that management may have concerns about collectability. For individually reviewed loans, the borrower’s inability to make payments under the terms of the loan or a shortfall in collateral value would result in our charging off the loan or the portion of the loan that was impaired.

The OCC, as an integral part of its examination process, periodically reviews our allowance for loan losses. The OCC may require us to make additional provisions for loan losses based on judgments different from ours.

At March 31, 2016, our allowance for loan losses represented 1.32% of total gross loans. The allowance for loan losses decreased 7.3% from March 31, 2015 to March 31, 2016.

The following table sets forth the breakdown of the allowance for loan losses by loan category at the dates indicated.

Table 19: Allocation of Allowance of Loan Losses

	2016					2015					2014
March 31, (Dollars in thousands)	Amount		% of Loans in Category to Total Loans			Amount		% of Loans in Category to Total Loans			Amount		% of Loans in Category to Total Loans
Residential real estate	$	568		74.7	%	$	702		77.1	%	$	656		74.7	%
Commercial and multi-family real estate		339		11.5			289		9.8			635		12.2
Construction		-		0.1			-		0.1			4		1.2
Commercial		80		2.7			86		2.4			58		1.5
Home equity		87		10.2			87		9.8			65		9.6
Consumer		25		0.8			21		0.8			30		0.8
Unallocated		-		-			-		-			-		-
Total allowance for loan losses	$	1,099		100.0	%	$	1,185		100.0	%	$	1,448		100.0	%

Although we believe that we use the best information available to establish the allowance for loan losses, future adjustments to the allowance for loan losses may be necessary and our results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations. Furthermore, while we believe we have established our allowance for loan losses in conformity with generally accepted accounting principles, there can be no assurance that regulators, in reviewing our loan portfolio, will not require us to increase our allowance for loan losses. In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance for loan losses is adequate or that increases will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above. Any material increase in the allowance for loan losses may adversely affect our financial condition and results of operations.

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Table 20: Analysis of Loan Loss Experience 

Year Ended March 31, (Dollars in thousands)	2016			2015			2014
Allowance at beginning of period	$	1,185		$	1,448		$	1,033
Provision for loan losses		(71	)		390			957
Charge offs:
Residential real estate loans		40			142			100
Commercial and multi-family real estate loans		17			598			378
Construction loans		−			−			−
Commercial loans		−			19			127
Home equity loans		11			−			4
Consumer loans		71			4			16
Total charge-offs		139			763			625
Recoveries		124			110			83
Net charge-offs		15			653			542
Allowance at end of period	$	1,099		$	1,185		$	1,448
Allowance to nonperforming loans		25.2	%		30.7	%		23.66	%
Allowance to total loans outstanding at the end of the period		1.32			1.46			1.70
Net charge-offs (recoveries) to average loans outstanding during the period		0.02			0.78			0.62

Interest Rate Risk Management. Our earnings and the market value of our assets and liabilities are subject to fluctuations caused by changes in the level of interest rates. We manage the interest rate sensitivity of our interest-bearing liabilities and interest-earning assets in an effort to minimize the adverse effects of changes in the interest rate environment. Deposit accounts typically react more quickly to changes in market interest rates than mortgage loans because of the shorter maturities of deposits. As a result, sharp increases in interest rates may adversely affect our earnings while decreases in interest rates may beneficially affect our earnings. To reduce the potential volatility of our earnings, we have sought to improve the match between asset and liability maturities and rates, while maintaining an acceptable interest rate spread. Our strategy for managing interest rate risk emphasizes originating balloon loans or loans with adjustable interest rates and promoting core deposit products and short-term time deposits.

We have an Asset/Liability Management Committee to coordinate all aspects involving asset/liability management. The committee consists of our President and Chief Executive Officer, Chief Financial Officer, Senior Vice President, two lending officers and the manager of our Cinnaminson office. The committee establishes and monitors the volume, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals.

We use an interest rate sensitivity analysis prepared by a third party vendor to review our level of interest rate risk. Economic Value of Equity (EVE) is a measure of long-term interest rate risk. This analysis measures the difference between the market values of the assets and the liabilities. In this analysis the program calculates the discounted cash flow (market value) of each category on the balance sheet under each of five rate conditions. This analysis assesses the risk of loss in market risk sensitive instruments in the event of a sudden and sustained 100 to 300 basis point increase or a 100 basis point decreases in market interest rates with no effect given to any steps that we might take to counter the effect of that interest rate movement. We measure interest rate risk by modeling the changes in EVE over a variety of interest rate scenarios. The following table presents the change in our EVE at March 31, 2016 that would occur in the event of an immediate change in interest rates based on our assumptions, with no effect given to any steps that we might take to counteract that change.

35

Table 21: EVE Analysis

	Economic Value of Equity (Dollars in thousands)								Economic Value of Equity as % of Market Value of Assets
Basis Point (“bp”) Change in Rates	$ Amount		$ Change			% Change			NPV Ratio			Change
300		12,512		(3,475	)		(21.7	)%		10.80	%		(11.0	)%
200		13,452		(2,535	)		(15.9	)		10.99			(9.5	)
100		15,146		(841	)		(5.3	)		11.88			(2.1	)
0		15,987		−			−			12.14
(100)		19,774		3,787			23.7			14.52			19.6

The program uses certain assumptions in assessing the interest rate risk of savings associations. These assumptions relate to interest rates, loan prepayment rates, deposit decay rates, and the market values of certain assets under differing interest rate scenarios, among others. As with any method of measuring interest rate risk, certain shortcomings are inherent in the method of analysis presented in the foregoing table. For example, although certain assets and liabilities may have similar maturities or periods to re-pricing, they may react in different degrees to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. Additionally, certain assets, such as adjustable-rate mortgage loans, have features that restrict changes in interest rates on a short-term basis and over the life of the asset. Further, in the event of a change in interest rates, expected rates of prepayments on loans and early withdrawals from certificates could deviate significantly from those assumed in calculating the table.

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 March 31, 2016, cash and cash equivalents totaled $12.1 million. At March 31, 2016, we had $3 million in outstanding borrowings and had arrangements to borrow up to $9.6 million from the Federal Home Loan Bank of New York and $1 million from Atlantic Central Bankers Bank.

At March 31, 2016, the majority 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 have designated a portion of our investments 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 March 31, 2016, we had $1.2 million in loan commitments outstanding. In addition, we had $6.2 million in unused lines of credit. 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 March 31, 2016 totaled $23.1 million, or 59.0% 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, such as other deposits 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 March 31, 2017. 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.

36

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.

Delanco Bancorp is a separate entity apart from Delanco Federal and must provide for its own liquidity. As of March 31, 2016, Delanco Bancorp had $480 thousand in cash and cash equivalents compared to $461 thousand as of March 31, 2015.  Substantially all of Delanco Bancorp’s cash and cash equivalents were obtained from proceeds it retained from the stock offering completed in October 2013.  In addition to its operating expenses, Delanco Bancorp may utilize its cash position for the payment of dividends or to repurchase common stock, subject to applicable restrictions.

Delanco Bancorp can receive dividends from Delanco Federal.  Payment of such dividends to Delanco Bancorp by Delanco Federal 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, Delanco Federal is not permitted to pay dividends without prior regulatory approval. In addition, at the request of the Federal Reserve, Delanco Bancorp 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 Delanco Federal 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 “Regulation and Supervision—Regulation of Federal Savings Associations—Capital Requirements,” “Regulation and Supervision—Regulatory Agreement” and note 24 to the consolidated financial statements.

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 information about our loan commitments and unused lines of credit, see note 21 to the consolidated financial statements..

For the year ended March 31, 2016, 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 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information required by this item is incorporated herein by reference to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Information required by this item is included herein beginning on page F-1.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

(a)

Disclosure 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.

37

(b)	Internal Control Over Financial Reporting
	Management’s report on internal control over financial reporting is incorporated herein by reference to the section captioned “Management’s Report on Internal Control Over Financial Reporting” immediately preceding the Company’s Consolidated Financial Statements beginning on page F-1 of this Annual Report on Form 10-K.

(c)	Changes in Internal Control Over Financial Reporting
	Except as indicated herein, there were no changes in the Company’s internal control over financial reporting during the three months ended March 31, 2016 that have materially affected, or are reasonable likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

38

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Directors

For information concerning Delanco Bancorp’s directors, the information contained under the section captioned “Item 1—Election of Directors” in the Company’s Proxy Statement for the 2016 Annual Meeting of Stockholders (the “Proxy Statement”) is incorporated herein by reference.

Executive Officers

For information relating to officers of Delanco Bancorp, the section captioned “Item 1—Election of Directors” in the Proxy Statement is incorporated by reference.

Compliance with Section 16(a) of the Exchange Act

For information regarding compliance with Section 16(a) of the Exchange Act, the information contained under the section captioned “Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement is incorporated herein by reference.

Disclosure of Code of Ethics

The Board of Directors has adopted a Code of Ethics that applies to all employees of the Company. A copy of the code of ethics can be obtained, without charge, upon written request to James E. Igo, Delanco Bancorp, Inc., 615 Burlington Avenue, Delanco, New Jersey 08075.

Audit Committee Matters

For information regarding the audit committee and its composition and the audit committee financial expert, the section captioned “Corporate Governance—Committees of the Board of Directors—Audit Committee” in the Proxy Statement is incorporated by reference.

ITEM 11. EXECUTIVE COMPENSATION

The information regarding executive compensation is set forth under the section captioned “Executive Compensation” in the Proxy Statement and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Stock Ownership

a)	Security Ownership of Certain Beneficial Owners
	Information required by this item is incorporated herein by reference to the section captioned “Stock Ownership” in the Proxy Statement.

b)	Security Ownership of Management
	Information required by this item is incorporated herein by reference to the section captioned “Stock Ownership” in the Proxy Statement.

c)	Changes in Control
	Management of Delanco Bancorp knows of no arrangements, including any pledge by any person or securities of Delanco Bancorp, the operation of which may at a subsequent date result in a change in control of the registrant.

39

d)	Equity Compensation
	The following table sets forth information as of March 31, 2016 about Company common stock that may be issued under the Delanco Bancorp, Inc. 2008 Equity Incentive Plan. The plan was approved by Delanco Bancorp’s stockholders on August 18, 2008.

Plan Category	Number of securities to be issued upon the exercise of outstanding options, warrants and rights (a)		Weighted-average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the column (a)) (c)
Equity compensation plans approved by stockholders		20,000	$	8.00		44,043
Equity compensation plans not approved by stockholders		N/A		N/A		N/A
Total		20,000	$	8.00		44,043

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information relating to certain relationships and related transactions and director independence is set forth under the sections captioned “Transactions with Related Persons” and “Corporate Governance and Board Matters – Director Independence” in the Proxy Statement and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information relating to the principal accountant fees and services is set forth under the section captioned “Ratification of the Independent Registered Public Accounting Firm” in the Proxy Statement and is incorporated herein by reference.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(1) The financial statements required in response to this item are incorporated by reference from Item 8 of this report.

(2) All financial statement schedules are omitted because they are not required or applicable, or the required information is shown in the consolidated financial statements or the notes thereto.

40

(3) Exhibits

3.1 Certificate of Incorporation of Delanco Bancorp, Inc. (Incorporated herein by reference to Exhibit 3.1 to the Registration Statement on Form S-1 (File No. 333-189244) filed with the Securities and Exchange Commission on June 12, 2013)

3.2 Bylaws of Delanco Bancorp, Inc. (Incorporated herein by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (File No. 333-189244) filed with the Securities and Exchange Commission on June 12, 2013)

4.0 Stock Certificate of Delanco Bancorp, Inc. (Incorporated herein by reference to Exhibit 4.0 to the Registration Statement on Form S-1 (File No. 333-189244) filed with the Securities and Exchange Commission on June 12, 2013)

10.1 Regulatory Agreement dated November 21, 2012, by and between Delanco Federal and the OCC (Incorporated herein by reference to Exhibit 10.1 to the Form 8-K filed with the Securities and Exchange Commission on December 21, 2012)

10.2 Delanco Federal Employee Severance Compensation Plan (Incorporated by reference from Exhibit 10.5 of the Form 10-KSB filed with the Securities and Exchange Commission on July 13, 2007)

10.3 Delanco Federal Directors Retirement Plan (Incorporated herein by reference to Exhibit 10.5 to the Registration Statement on Form SB-2 (File No. 333-139339))

10.4 Delanco Bancorp, Inc. 2008 Equity Incentive Plan (Incorporated herein by reference the Company’s definitive proxy materials for the Annual Meeting of Stockholders filed with the Securities and Exchange Commission on July 17, 2008)

21.0 Subsidiaries

23.1 Consent of Connolly, Grady & Cha, P.C.

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 Annual Report on Form 10-K for the year ended March 31, 2016, 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.

41

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	DELANCO BANCORP, INC.
Date: June 29, 2016	By:	/s/ James E. Igo
		James E. Igo
		Chairman, President and Chief Executive Officer

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.

Name	Title	Date
/s/ James E. Igo	Chairman, President and Chief Executive Officer	June 29, 2016
James E. Igo
/s/ Eva Modi	Senior Vice President and Chief Financial Officer	June 29, 2016
Eva Modi	(principal financial and accounting officer)
/s/ Thomas J. Coleman, III	Director	June 29, 2016
Thomas J. Coleman, III
/s/ John A. Latimer	Director	June 29, 2016
John A. Latimer
/s/ Daniel R. Roccato	Director	June 29, 2016
Daniel R. Roccato
/s/ James W. Verner	Director	June 29, 2016
James W. Verner
/s/ Renee C. Vidal	Director	June 29, 2016
Renee C. Vidal

42

MANAGEMENT’S REPORT ON

INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting and of the preparation of our consolidated financial statements for external purposes in accordance with United States generally accepted accounting principles.

A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management assessed the effectiveness of its internal control over financial reporting as of March 31, 2016, using the criteria established in Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, management has concluded that, as of March 31, 2016, the Company’s internal control over financial reporting was effective based on the criteria.

This annual report does not include an attestation report of the Company’s Independent Registered Public Accounting Firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s Independent Registered Public Accounting Firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

43

Delanco Bancorp, Inc. and Subsidiary

March 31, 2016 and 2015

Contents

		Page
Report of Independent Registered Public Accounting Firm		F-1
Financial Statements
	Consolidated Statements of Financial Condition As of March 31, 2016 and 2015	F-2
	Consolidated Statements of Operations Years Ended March 31, 2016 and 2015	F-3
	Consolidated Statements of Comprehensive (Loss) Years Ended March 31, 2016 and 2015	F-4
	Consolidated Statements of Changes in Stockholders’ Equity Years Ended March 31, 2016 and 2015	F-5
	Consolidated Statements of Cash Flows Years Ended March 31, 2016 and 2015	F-6
	Notes to Consolidated Financial Statements	F-7

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Delanco Bancorp, Inc.

615 Burlington Avenue

Delanco, New Jersey 08075

We have audited the accompanying consolidated statements of financial condition of Delanco Bancorp, Inc. and Subsidiary (the Company) as of March 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Delanco Bancorp, Inc. and Subsidiary as of March 31, 2016 and 2015, and the results of their operations and their cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

/s/ Connolly, Grady & Cha, P.C.

Certified Public Accountants

Philadelphia, Pennsylvania

June 29, 2016

F-1

Delanco Bancorp, Inc. and Subsidiary

Consolidated Statements of Financial Condition

	March 31,
	2016			2015
Assets
Cash and amount due from depository institutions	$	585,364		$	687,488
Interest-bearing deposits with depository institutions		11,542,024			9,762,960
Total cash and cash equivalents		12,127,388			10,450,448
Investment securities
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)		2,150,093			1,127,515
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)		21,584,538			24,617,338
Total investment securities		23,734,631			25,744,853
Loans, net of allowance for loan losses of $1,099,232 and $1,185,178 at March 31, 2016 and 2015, respectively		82,197,809			80,146,397
Accrued interest receivable		369,138			436,840
Real estate owned		1,763,628			2,433,483
Federal Home Loan Bank stock, at cost		253,800			306,300
Premises and equipment, net		6,290,047			6,490,331
Deferred income taxes, net		2,066,535			2,060,233
Bank-owned life insurance		174,252			169,252
Other assets		437,797			334,613
Total Assets	$	129,415,025		$	128,572,750
Liabilities and Stockholders’ Equity
Liabilities
Deposits
Non-interest bearing	$	12,054,146		$	10,733,275
Interest-bearing		99,810,501			99,464,844
Total deposits		111,864,647			110,198,119
Advances from Federal Home Loan Bank		3,000,000			4,000,000
Accrued interest payable		5,830			5,763
Advance payments by borrowers for taxes and insurance		433,034			320,356
Other liabilities		815,802			876,221
Total liabilities		116,119,313			115,400,459
Commitments and Contingencies (Note 21)
Stockholders’ Equity
Preferred stock, $.01 par value, 5,000,000 shares authorized at March 31, 2016 and 2015: None issued
Common stock, $.01 par value, 20,000,000 shares authorized:
945,425 shares issued and outstanding at March 31, 2016 and 2015	$	9,454		$	9,454
Additional paid-in capital		9,988,509			9,965,764
Retained earnings, substantially restricted		3,918,476			3,936,546
Unearned common stock held by employee stock ownership plan		( 501,065	)		( 546,617	)
Accumulated other comprehensive loss		( 119,662	)		( 192,856	)
Total stockholders’ equity		13,295,712			13,172,291
Total Liabilities and Stockholders’ Equity	$	129,415,025		$	128,572,750

See accompanying notes to consolidated financial statements.

F-2

Delanco Bancorp, Inc. and Subsidiary

Consolidated Statements of Operations

	Years Ended March 31,
	2016			2015
Interest Income
Loans, including fees	$	3,600,437		$	3,645,438
Investment securities		660,372			718,807
Interest-bearing deposits		9,314			3,842
Total interest income		4,270,123			4,368,087
Interest Expense
Interest-bearing checking accounts		39,947			40,215
Passbook and money market accounts		107,676			104,164
Certificates of deposits		396,524			431,709
Advances from Federal Home Loan Bank		25,606			23,381
Total interest expense		569,753			599,469
Net interest income		3,700,370			3,768,618
Provision (recapture) for loan losses		( 70,700	)		390,000
Net interest income after provision (recapture) for loan losses		3,771,070			3,378,618
Non-Interest Income
Service charges		124,697			137,440
Increase in cash surrender value of bank-owned life insurance		5,000			4,055
Rental income		19,488			28,662
Other		15,416			16,093
Total non-interest income		164,601			186,250
Non-Interest Expense
Salaries and employee benefits		1,659,019			1,628,823
Advertising		23,988			24,241
Office supplies, telephone and postage		110,250			107,985
Loan expense		74,112			160,085
Occupancy expense		622,254			614,899
Federal insurance premiums		170,570			170,785
Real estate owned – impairment losses		246,879			642,080
Data processing expenses		237,737			223,337
ATM expenses		34,975			35,939
Bank charges and fees		85,603			69,781
Insurance and surety bond premium		87,582			99,529
Dues and subscriptions		45,655			29,511
Professional fees		285,465			349,038
Real estate owned expenses, net		176,740			152,503
Net loss on sale of real estate owned		3,519			82,062
Other		141,991			132,322
Total non-interest expense		4,006,339			4,522,920
(Loss) Before Income Tax Benefit		( 70,668	)		( 958,052	)
Income tax (benefit)		( 52,598	)		( 325,220	)
Net (Loss)	$	( 18,070	)	$	( 632,832	)
(Loss) per share
Basic	$	( 0.02	)	$	( 0.70	)
Diluted	$	( 0.02	)	$	( 0.70	)
Average shares outstanding
Basic		906,720			903,201
Diluted		906,720			903,201

See accompanying notes to consolidated financial statements.

F-3

Delanco Bancorp, Inc. and Subsidiary

Consolidated Statements of Comprehensive (Loss)

Years Ended March 31, 2016 and 2015

	March 31,
	2016			2015
Net (loss)	$	( 18,070	)	$	( 632,832	)
Other comprehensive income (loss), net of tax:
Postretirement benefit plan adjustment, net of deferred taxes (benefit) of ($26,708) and ($75,238) in 2016 and 2015, respectively		40,063			( 112,857	)
Unrealized gains (loss) available-for-sale:
Unrealized holding gains (loss), net of deferred tax (benefits) of $22,088 and $74,589 in 2016 and 2015, respectively		33,131			111,884
Reclassification adjustment for net (gains) losses on available-for-sale securities included in net (loss) (net of tax (benefit) of $ -0- and ($315) in 2016 and 2015, respectively)					( 472	)
Total other comprehensive (loss) income		73,194			( 1,445	)
Comprehensive (Loss) Income	$	55,124		$	( 634,277	)

See accompanying notes to consolidated financial statements.

F-4

Delanco Bancorp, Inc. and Subsidiary

Consolidated Statements of Changes in Stockholders’ Equity

Years Ended March 31, 2016 and 2015

														Accumulated
					Additional						Common			Other			Total
	Common Stock				Paid-in			Retained			Stock Held			Comprehensive			Stockholders’
	Shares		Amount		Capital			Earnings			By ESOP			(Loss)			Equity
BALANCES, MARCH 31, 2014		945,425	$	9,454	$	9,956,750		$	4,569,378		$	( 592,168	)	$	( 191,411	)	$	13,752,003
Net (loss)									( 632,832	)								( 632,832	)
Other comprehensive (loss), net of tax															( 1,445	)		( 1,445	)
3518.69 shares of common stock transferred to ESOP for services						( 21,202	)					45,551						24,349
Stock option expense						30,216												30,216
BALANCES, MARCH 31, 2015		945,425	$	9,454	$	9,965,764		$	3,936,546		$	( 546,617	)	$	( 192,856	)	$	13,172,291
Net (loss)									( 18,070	)								( 18,070	)
Other comprehensive (loss), net of tax															73,194			73,194
3518.69 shares of common stock transferred to ESOP for services						( 12,475	)					45,552						33,077
Stock option expense						35,220												35,220
BALANCES, MARCH 31, 2016		945,425	$	9,454	$	9,988,509		$	3,918,476		$	( 501,065	)	$	( 119,662	)	$	13,295,712

See accompanying notes to consolidated financial statements.

F-5

Delanco Bancorp, Inc. and Subsidiary

Consolidated Statements of Cash Flows

	Years Ended
	March 31,
Cash Flows from Operating Activities	2016			2015
Net (loss)	$	( 18,070	)	$	( 632,832	)
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Compensation expense of ESOP		12,475			21,202
Deferred income tax (benefit)		32,275			( 520,932	)
Depreciation		264,356			257,153
Amortization of premiums and accretion of discounts on securities, net		( 1,087	)		4,956
Income from bank owned life insurance		( 5,000	)		( 4,055	)
Real estate owned impairment losses		246,879			642,080
Loss on sale of real estate owned		3,519			82,062
Provision (recapture) for loan losses		( 70,700	)		390,000
Share based compensation expense		35,220			30,216
Changes in operating assets and liabilities
(Increase) decrease in:
Accrued interest receivable		67,702			25,444
Other assets		( 103,184	)		632
Increase (decrease) in:
Accrued interest payable		67			( 793	)
Other liabilities		( 60,419	)		191,932
Net cash provided by operating activities		404,033			487,065
Cash Flows from Investing Activities
Purchases of securities available-for-sale		( 1,500,000	)
Proceeds from sale of securities available-for-sale		32,641			31,541
Proceeds from maturities of securities available-for-sale		500,000			1,000,000
Purchases of securities held-to-maturity		( 12,473,250	)		( 3,000,000	)
Proceeds from maturities and principal repayments of securities held-to-maturity		15,507,137			5,353,613
Proceeds from redemption (purchases) of Federal Home Loan Bank stock		52,500			( 35,000	)
Principal collected on loans		11,825,655			10,405,771
Loans originated		( 14,138,862	)		( 9,735,588	)
Proceeds from sale of real estate owned		751,952			1,125,062
Purchases of premises and equipment		( 64,072	)		( 79,616	)
Net cash provided by investing activities		493,701			5,065,783
Cash Flows from Financing Activities
Net increase (decrease) in deposits		1,666,528			( 426,580	)
Net increase (decrease) in advance payments by borrowers for taxes and insurance		112,678			( 8,459	)
Advances from Federal Home Loan Bank		1,000,000			4,000,000
Payments on advances from Federal Home Loan Bank		( 2,000,000	)		( 2,000,000	)
Net cash provided by financing activities		779,206			1,564,961
Net Increase in Cash and Cash Equivalents	$	1,676,940		$	7,117,809
Cash and Cash Equivalents, Beginning of Year		10,450,448			3,332,639
Cash and Cash Equivalents, End of Year	$	12,127,388		$	10,450,448
Supplemental Disclosures of Cash Flow Information
Cash paid during the year for interest	$	569,686		$	600,262
Cash paid during the year for income taxes	$	2,500		$	2,750
Supplemental Disclosure of Noncash Items
Loans transferred to real estate owned	$	332,495		$	2,332,862

See accompanying notes to consolidated financial statements.

F-6

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

1.     NATURE OF OPERATIONS

On October 16, 2013, Delanco Bancorp, Inc., a New Jersey corporation (the “Company”), became the holding company for 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.

Delanco Bancorp, Inc. (the “Company”) is a federally-chartered subsidiary holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, Delanco Federal Savings Bank (the “Bank”), and its wholly-owned subsidiaries, Delanco Financial Services Corporation, an inactive subsidiary, DFSB Properties, LLC, and DFSB Properties II, LLC, real estate companies that hold other real estate acquired in foreclosure. The Bank provides a variety of financial services to individual and business customers located primarily in Southern New Jersey and Southeastern Pennsylvania. The Bank’s primary source of revenue is from single-family residential, commercial and multi-family real estate loans. The Bank is subject to regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

Subsequent Events

The Company has evaluated events and transactions occurring subsequent to March 31, 2016, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through June 29, 2016, the date these consolidated financial statements were issued.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation

The accounting and reporting policies of the Company conform with accounting principles and predominant practices within the banking industry. The consolidated financial statements of the Company include the accounts of Delanco Federal Savings Bank and its subsidiaries. Intercompany balances and transactions are eliminated in consolidation.     

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates and assumptions that are particularly susceptible to significant changes relate to the determination of the allowance for losses on loans, the fair value of financial instruments, the valuation of foreclosed real estate and the valuation of deferred tax assets. In connection with the determination of the estimated losses on loans and foreclosed real estate, management obtains independent appraisals for significant properties.

A majority of the Bank’s loan portfolio consists of single-family residential, commercial and multi-family real estate loans in Southern New Jersey and Southeastern Pennsylvania. Accordingly, the ultimate collectibility of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate are susceptible to changes in local market conditions.

F-7

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

While management uses available information to recognize losses on loans and foreclosed real estate, further reductions in the carrying amounts of loans and foreclosed assets may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and foreclosed real estate. Such agencies may require the Bank to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans and foreclosed real estate may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.

Investment and Mortgage-Backed Securities

Securities Held-to-Maturity: Securities that management has the positive intent and ability to hold to maturity are reported at cost, adjusted for amortization of premiums and accretion of discounts that are recognized in interest income using methods approximating the interest method over the period to maturity. Mortgage-backed securities represent participating interests in pools of long-term first mortgage loans originated and serviced by issuers of the securities. Mortgage-backed securities are carried at unpaid principal balances, adjusted for unamortized premiums and unearned discounts. Premiums and discounts are amortized using methods approximating the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments.

Securities Available-for-Sale: Available-for-sale securities consist of investment securities not classified as trading securities nor as held-to-maturity securities. Unrealized holding gains and losses, net of tax, on available-for-sale securities are included in other comprehensive income. Realized gains (losses) on available-for-sale securities are included in other income (expense) and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Gains and losses on the sale of available-for-sale securities are determined using the specific-identification method. The amortization of premiums and the accretion of discounts are recognized in interest income using methods approximating the interest method over the period of maturity.

Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other than temporary impairment losses, management considers (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.

Loans Receivable

The Bank grants mortgage, commercial, consumer and lines of credit loans to customers. A substantial portion of the loan portfolio is represented by mortgage, commercial and multi-family real estate loans in Southern New Jersey and Southeastern Pennsylvania. The ability of the Bank’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in these areas.

Loans are stated at unpaid principal balances, less the allowance for loan losses and net deferred loan fees and unearned discounts.

Loan origination and commitment fees, as well as certain direct origination costs, are deferred and amortized as a yield adjustment over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status.

F-8

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The recognition of income on a loan is discontinued and previously accrued interest is reversed, when interest or principal payments become ninety (90) days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Interest is subsequently recognized only as received until the loan is returned to accrual status. A loan is restored to accrual status when all interest and principal payments are current and the borrower has demonstrated to management the ability to make payments of principal and interest as scheduled. The Bank’s practice is to charge off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, the depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons.

Allowance For Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

Loan Impairment

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reason for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.

F-9

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Troubled Debt Restructurings

In situations where, for economic or legal reasons related to a customer’s financial difficulties, the Bank grants a concession for other than an insignificant period of time to the customer that the Bank would not otherwise consider, the related loan is classified as a troubled debt restructuring (TDR). The Bank strives to identify customers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where the Bank grants the customer new terms that provide for a reduction of either interest or principal, the Bank measures any impairment on the restructuring as previously noted for impaired loans.

Bank-Owned Life Insurance

The Bank owns a life insurance policy on the life of a retired member of the Board of Directors. The cash surrender value of the policy is recorded as an asset of the bank and changes in this value are reflected in non-interest income. Death benefit proceeds in excess of the policy’s cash surrender value will be recognized as income upon receipt. There are no policy loans offset against the cash surrender value or restrictions on the use of the proceeds.

Premises and Equipment

Land is carried at cost. Other premises and equipment are recorded at cost and are depreciated on the straight-line method. Charges for maintenance and repairs are expensed as incurred. Depreciation and amortization are provided over the estimated useful lives of the respective assets.

Real Estate Owned

Real estate owned is comprised of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Real estate owned is recorded at the lower of the carrying value of the loan or the fair value of the property, net of estimated selling costs. Costs relating to the development or improvement of the properties are capitalized while expenses related to the operation and maintenance of properties are recorded as an expense as incurred. Gains or losses upon dispositions are reflected in earnings as realized. The Company had $1,763,628 and $2,433,483 in real estate owned at March 31, 2016 and 2015, respectively. The Company recorded losses of $3,519 and $82,062 on sale of real estate owned for the years ended March 31, 2016 and 2015, respectively.

Comprehensive Income

The Company presents in the consolidated statement of comprehensive income those amounts arising from transactions and other events which currently are excluded from the statements of operations and are recorded directly to stockholders’ equity. For the years ended March 31, 2016 and 2015, the only components of comprehensive income were net (loss), unrealized holding (loss) gains, net of income tax (benefit) expense, on available for sale securities and reclassifications related to realized gains on sale of securities recognized in earnings, net of tax and postretirement benefit plan adjustments, net of tax. Reclassifications are made to avoid double counting in comprehensive income items which are displayed as part of net income for the period.

Income Taxes

Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to tax net operating loss carryforwards and differences between the basis of available-for-sale securities, allowance for loan losses, estimated losses on real estate owned, accumulated depreciation, and accrued employee benefits for financial and income tax reporting.

F-10

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part be beyond the Company’s control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes could change in the near term.

Segment Information

Delanco Bancorp, Inc. has one reportable segment, “Community Banking”. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit.

Statements of Cash Flows

The Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other banks with original maturities of less than 90 days to be cash equivalents for purposes of the statements of cash flows.

Advertising Costs

Advertising costs are expensed as incurred. Advertising expenses totaled $23,988 and $24,241 for the years ended March 31, 2016 and 2015, respectively.

Employee Stock Ownership Plan (“ESOP”)

The Company maintains an employee stock ownership plan as (“ESOP”) for substantially all of its full-time employees. The ESOP purchased 64,081 shares of the Company’s common stock for an aggregate cost of approximately $640,810 in fiscal 2008. In October 2013, the Company completed a “second step” conversion and as a result, the original 64,081 shares purchased by the ESOP were converted to 36,596 shares of the new Bancorp. In addition, the ESOP purchased an additional 23,644 shares of the Company’s common stock in October 2013 for an aggregated cost of approximately $189,152. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. Shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to equity as additional paid-in capital. As of March 31, 2016, the Company had allocated a total of 21,535 shares from the suspense account to participants. For the years ended March 31, 2016 and 2015, the Company recognized $33,076 and $24,349, respectively in salaries and employee benefits related to the ESOP. At March 31, 2016, 60,240 shares were held in the ESOP.

F-11

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Stock Based Compensation

The Company accounts for stock-based compensation issued to employees, and where appropriate, non-employees, at fair value. Under fair value provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate vesting period using the straight-line method. The amount of stock-based compensation recognized at any date must at least equal the portion of the grant date fair value of the award that is vested at that date and as a result it may be necessary to recognize the expense using a ratable method. Determining the fair value of stock-based awards at the date of grant requires judgment, including estimating the expected term of the stock options and the expected volatility of the Company’s stock. In addition, judgment is required in estimating the amount of stock-based awards that are expected to be forfeited. If actual results differ significantly from these estimates or different key assumptions were used, it could have a material effect on the Company’s consolidated financial statements.

Federal Home Loan Bank Stock

FHLB Stock, which represents the required investment in the common stock of a correspondent bank, is carried at cost.

Earnings Per Share

Basic earnings per share is calculated on the basis of net income divided by the weighted average number of shares outstanding. Diluted earnings per share includes dilutive potential shares as computed under the treasury stock method using average common stock prices. Diluted earnings per share is calculated on the basis of the weighted average number of shares outstanding plus the weighted average number of additional dilutive shares.

3.     RECENT ACCOUNTING PRONOUNCEMENTS

Below is a discussion of recent accounting standards that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future.

In January 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”. The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on the Company’s consolidated financial statements.

F-12

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

3.      RECENT ACCOUNTING PRONOUNCEMENTS (Continued)

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. This ASU is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40).  The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met:  (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed.  Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor.  The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements -Going Concern (Subtopic 205-40).  The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  The amendments in this Update are first effective for the annual period ending after December 15, 2015, and for annual periods and interim periods within such annual periods thereafter. Early application is permitted.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity.  An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This ASU is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement –Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards.  This Update eliminates from GAAP the concept of extraordinary items.  The amendments in this Update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  This ASU is not expected to have a significant impact on the Company’s financial statements.

F-13

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

3.     RECENT ACCOUNTING PRONOUNCEMENTS (Continued)

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810). The amendments in this Update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.  The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015.  For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, and for interim periods within fiscal years beginning after December 15, 2017.  This ASU is not expected to have a significant impact on the Company’s financial statements.

4. RESTRICTIONS ON CASH AND DUE FROM BANKS

The Company is required to maintain reserve funds in vault cash or on deposit with the Federal Reserve Bank. The Company’s vault cash satisfied the required reserve at March 31, 2016 and 2015.

5. INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities held-to-maturity and available-for-sale are as follows:

	Available-for-Sale
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal National Mortgage Association	$	500,000	$		$	(2,753	)	$	497,247
Certificates of Deposit		1,500,000		30,854					1,530,854
Mutual Fund Shares		121,777		2,104		(1,889	)		121,992
Total	$	2,121,777	$	32,958	$	( 4,642	)	$	2,150,093

F-14

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

5.     INVESTMENT SECURITIES (Continued)

	Available-for-Sale
	March 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	500,000	$		$	( 10,117	)	$	489,883
Federal National Mortgage Association		500,000				( 17,442	)		482,558
Mutual Fund Shares		154,418		656					155,074
Total	$	1,154,418	$	656	$	( 27,559	)	$	1,127,515

	Held-to-Maturity
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	5,802,109	$	27,488	$	( 3,680	)	$	5,825,917
Federal Farm Credit Bonds		9,437,611		21,157		( 1,087	)		9,457,681
Federal Home Loan Mortgage Corporation Bonds		732,000		425					732,425
Federal National Mortgage Association		4,000,000		17,253					4,017,253
Municipal Bond		736,250				( 1,513	)		734,737
		20,707,970		66,323		( 6,280	)		20,768,013
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		322,014		25,607		( 7,728	)		339,893
Federal National Mortgage Association		397,541		41,321		( 3,418	)		435,444
Government National Mortgage Corporation		157,013		6,926		( 1,139	)		162,800
		876,568		73,854		( 12,285	)		938,137
Total	$	21,584,538	$	140,177	$	( 18,565	)	$	21,706,150

F-15

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

5.     INVESTMENT SECURITIES (Continued)

	Held-to-Maturity
	March 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	7,569,330	$	25,212	$	( 61,886	)	$	7,532,656
Federal Farm Credit Bonds		6,436,634		245		( 55,041	)		6,381,838
Federal Home Loan Mortgage Corporation Bonds		1,997,490		1,869		( 20,411	)		1,978,948
Federal National Mortgage Association		6,998,982		15,848		( 46,455	)		6,968,375
Municipal Bond		470,250		1,653					471,903
		23,472,686		44,827		( 183,793	)		23,333,720
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		453,850		32,959					486,809
Federal National Mortgage Association		494,759		49,073					543,832
Government National Mortgage Corporation		196,043		6,499					202,542
		1,144,652		88,531					1,233,183
Total	$	24,617,338	$	133,358	$	( 183,793	)	$	24,566,903

The following is a summary of the amortized cost and fair value of the Company’s investment securities held-to-maturity and available-for-sale by contractual maturity as of March 31, 2016 and 2015.

	March 31, 2016
	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Amounts maturing in:
One year or less	$		$		$	736,250	$	734,737
After one year through five years		1,000,000		1,024,569		945,000		945,091
After five years through ten years		1,000,000		1,003,532		8,379,581		8,384,588
After ten years						11,523,707		11,641,734
Mutual fund shares		121,777		121,992
	$	2,121,777	$	2,150,093	$	21,584,538	$	21,706,150

	March 31, 2015
	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Amounts maturing in:
One year or less	$		$		$	970,771	$	980,256
After one year through five years						1,000,639		999,302
After five years through ten years						8,910,976		8,838,675
After ten years		1,000,000		972,441		13,734,952		13,748,670
Mutual fund shares		154,418		155,074
	$	1,154,418	$	1,127,515	$	24,617,338	$	24,566,903

F-16

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

5.     INVESTMENT SECURITIES (Continued)

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 March 31, 2016 and 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as 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
March 31, 2016	Value		Losses			Value		Losses			Value		Losses
Federal Home Loan Bank Bonds	$		$			$	496,320	$	( 3,680	)	$	496,320	$	( 3,680	)
Federal Farm Credit Bonds							498,913		( 1,087	)		498,913		( 1,087	)
Federal Home Loan Mortgage Corporation							102,967		( 7,728	)		102,967		( 7,728	)
Federal National Mortgage Association							497,247		( 2,753	)		497,247		( 2,753	)
Municipal Bonds		734,737		( 1,513	)							734,737		( 1,513	)
Mutual fund shares							64,031		( 1,889	)		64,031		( 1,889	)
		734,737		( 1,513	)		1,659,478		( 17,137	)		2,394,215		( 18,650	)
Mortgage-Backed Securities:
Federal National Mortgage Association							154,705		( 3,418	)		154,705		( 3,418	)
Government National Mortgage Association							21,613		( 1,139	)		21,613		( 1,139	)
							176,318		( 4,557	)		176,318		( 4,557	)
Total	$	734,737	$	( 1,513	)	$	1,835,796	$	( 21,694	)	$	2,570,533	$	( 23,207	)

	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, 2015	Value		Losses			Value		Losses			Value		Losses
Federal Home Loan Bank Bonds	$	2,456,736	$	( 20,116	)	$	2,450,731	$	( 51,887	)	$	4,907,467	$	(72,003	)
Federal Farm Credit Bonds		2,478,672		( 13,569	)		2,903,103		( 41,472	)		5,381,775		(55,041	)
Federal Home Loan Mortgage Corporation		987,910		( 12,090	)		491,679		( 8,321	)		1,479,589		(20,411	)
Federal National Mortgage Association		1,492,801		( 6,857	)		2,442,960		( 57,040	)		3,935,761		(63,897	)
Mutual fund shares
		7,416,119		( 52,632	)		8,288,473		( 158,720	)		15,704,592		(211,352	)
Mortgage-Backed Securities:
Government National Mortgage Association
Total	$	7,416,119	$	( 52,632	)	$	8,288,473	$	( 158,720	)	$	15,704,592	$	( 211,352	)

F-17

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

5.     INVESTMENT SECURITIES (Continued)

In estimating other-than-temporary impairment losses, the Company considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near term prospects of the issuer, (iii) that the Company does not intend to sell these securities and (iv) it is more likely than not that the Company will not be required to sell before a period of time sufficient to allow for any anticipated recovery in fair value. The temporary impaired securities consisted of nine debt securities with an aggregated book value of $2,570,533 at March 31, 2016. These unrealized losses relate principally to market changes in interest rates for similar types of securities.

The Company has pledged investment securities with a carrying amount of approximately $2,515,000 and $1,016,000 at March 31, 2016 and 2015, respectively, to the New Jersey Commissioner of Banking and Insurance under the provisions of the Government Unit Deposit Protection Act that enables the Bank to act as a public depository.

6. 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 and 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.

Multi-family and 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. Multi-family and 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.

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.

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.

F-18

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

Loans at March 31, 2016 and 2015 are summarized as follows:

	March 31,
	2016			2015
Residential (one to four family) real estate	$	62,250,645		$	62,788,782
Multi-family and commercial real estate		9,569,328			7,979,569
Commercial		2,290,405			1,913,466
Home equity		8,527,420			8,005,627
Consumer		682,193			677,964
Construction		54,268			56,027
Total loans		83,374,259			81,421,435
Net deferred loan origination fees		( 77,218	)		( 89,860	)
Allowance for loan losses		( 1,099,232	)		( 1,185,178	)
		( 1,176,450	)		( 1,275,038	)
Loans, net	$	82,197,809		$	80,146,397

The Bank is subject to a loans-to-one borrower limitation of 15% of capital funds. At March 31, 2016, the loans-to-one-borrower limitation was $1.8 million; this excluded an additional 10% of adjusted capital funds or approximately $million, which may be loaned if collateralized by readily marketable securities. At March 31, 2016 and 2015, 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.

F-19

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

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 following table represents loans by credit quality indicator at March 31, 2016:

			Special				Non-
			Mention		Classified		Performing
	Pass		Loans		Loans		Loans		Total
Residential real estate	$	59,385,578	$		$		$	2,865,067	$	62,250,645
Multi-family and commercial real estate		7,962,420		288,784				1,318,124		9,569,328
Commercial		2,074,394		53,942		140,751		21,318		2,290,405
Home equity		8,416,499						110,921		8,527,420
Consumer		682,193								682,193
Construction								54,268		54,268
	$	78,521,084	$	342,726	$	140,751	$	4,369,698	$	83,374,259

The following table represents past-due loans as of March 31, 2016:

	30-59			60-89			Greater Than
	Days			Days			90 Days			Total						Total Loan
	Past Due			Past Due			Past Due			Past Due			Current			Balances
Residential real estate	$	577,002		$	224,111		$	1,967,082		$	2,768,195		$	59,482,450		$	62,250,645
Multi-family and commercial real estate					288,784			663,068			951,852			8,617,476			9,569,328
Commercial		339,654			21,318						360,972			1,929,433			2,290,405
Home equity		50,000						110,471			160,471			8,366,949			8,527,420
Consumer														682,193			682,193
Construction														54,268			54,268
Total Loans	$	966,656		$	534,213		$	2,740,621		$	4,241,490		$	79,132,769		$	83,374,259
Percentage of Total Loans		1.16	%		0.64	%		3.29	%		5.09	%		94.91	%		100.0	%

F-20

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

The following table represents loans by credit quality indicator at March 31, 2015:

			Special				Non-
			Mention		Classified		Performing
	Pass		Loans		Loans		Loans		Total
Residential real estate	$	60,728,444	$		$		$	2,060,338	$	62,788,782
Multi-family and commercial real estate		5,308,521		713,658		294,250		1,663,140		7,979,569
Commercial		1,685,655		23,568		204,243				1,913,466
Home equity		7,994,767						10,860		8,005,627
Consumer		606,577						71,387		677,964
Construction								56,027		56,027
	$	76,323,964	$	737,226	$	498,493	$	3,861,752	$	81,421,435

The following table represents past-due loans as of March 31, 2015:

	30-59			60-89			Greater Than
	Days			Days			90 Days			Total						Total Loan
	Past Due			Past Due			Past Due			Past Due			Current			Balances
Residential real estate	$	495,322		$	1,324,777		$	1,364,792		$	3,184,891		$	59,603,891		$	62,788,782
Multi-family and commercial real estate					116,763			890,200			1,006,963			6,972,606			7,979,569
Commercial		98,280									98,280			1,815,186			1,913,466
Home equity		34,371			88,625			10,860			133,856			7,871,771			8,005,627
Consumer		29,967						71,387			101,354			576,610			677,964
Construction														56,027			56,027
Total Loans	$	657,940		$	1,530,165		$	2,337,239		$	4,525,344		$	76,896,091		$	81,421,435
Percentage of Total Loans		0.81	%		1.88	%		2.87	%		5.56	%		94.44	%		100.0	%

The Bank determines whether a restructuring of debt constitutes a troubled debt restructuring (“TDR”) in accordance with guidance under FASB ASC Topic 310 Receivables. The Company considers a loan a TDR when the borrower is experiencing financial difficulty and the Bank grants a concession that they would not otherwise consider but for the borrower’s financial difficulties. A TDR includes a modification of debt terms or assets received in satisfaction of the debt (including a foreclosure or a deed in lieu of foreclosure) or a combination of types. The Bank evaluates selective criteria to determine if a borrower is experiencing financial difficulty, including the ability of the borrower to obtain funds from sources other than the Bank at market rates. The Bank considers all TDR loans as impaired loans and, generally, they are put on non-accrual status. The Bank will not consider the loan a TDR if the loan modification was made for customer retention purposes. The Bank’s policy for returning a loan to accruing status requires the preparation of a well-documented credit evaluation which includes the following:

● A review of the borrower’s current financial condition in which the borrower must demonstrate sufficient cash flow to support the repayment of all principal and interest including any amounts previously charged-off;

● An updated appraisal or home valuation which must demonstrate sufficient collateral value to support the debt;

● Sustained performance based on the restructured terms for at least six consecutive months;

● Approval by senior management.

F-21

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

The Bank had eleven loans totaling $2,351,531 and eleven loans totaling $2,237,988 whose terms were modified in a manner that met the criteria for a TDR as of March 31, 2016 and 2015, respectively. Restructured loans deemed to be TDRs typically are the result of extensions of the loan maturity date or a reduction of the interest rate to a rate that is below market, a combination of rate and maturity extension, or by other means including covenant modifications, forbearance and other concessions. However, the Company generally only restructures loans by modifying the payment structure to require payments of interest only or interest and escrows for a period of time or by reducing the actual interest rate to a current market rate, or a combination of both. In one instance, the Company restructured a loan by repaying loans with another lender who had a priority lien position and restructuring the whole indebtedness into an amortizing loan at market rates while taking additional collateral. As of March 31, 2016, three of the TDRs were commercial real estate loans with an aggregate outstanding balance of $676,293, one residential construction loan with an aggregate outstanding balance of $54,268, and seven were residential real estate loans with an aggregate outstanding balance of $1,620,970. The Company had one accruing TDR in the amount of $172,933 as of March 31, 2016 that was modified during the year. As of March 31, 2015, three of the TDRs were commercial real estate loans with an aggregate outstanding balance of $653,944, one residential construction loan with an aggregate outstanding balance of $56,027, and seven were residential real estate loans with an aggregate outstanding balance of $1,528,017. The Company had one accruing TDR in the amount of $110,205 as of March 31, 2015 that was modified during the year. All TDRs are considered impaired loans. If the Bank determines that the value of a modified loan is less than the recorded impairment in the loan, impairment is recognized through a charge to the allowance for loan losses at the time of determination.

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 March 31, 2016, the Bank had eighteen loan relationships totaling $2,761,939 in non-accrual loans as compared to seventeen relationships totaling $2,337,239 at March 31, 2015. At March 31, 2016, the Bank had no impaired loan relationships in which impaired loans had a related allowance for credit losses. During the quarter ended December 31, 2011 and in connection with the Bank’s change in regulators from the Office of Thrift Supervision to the Office of the Comptroller of the Currency, the Bank revised its allowance for loan loss reserve methodology based on regulatory guidance to the effect that the use of specific reserves was no longer permitted. As of March 31, 2016 and 2015, the Bank no longer maintained specific valuation allowances against impaired loans. Any valuation adjustments on impaired loans are now charged against the loan balances at the time of valuation. The average balance of impaired loans totaled $4,965,658 for 2016 as compared to $4,707,275 for 2015, and interest income recorded on impaired loans during the year ended March 31, 2016 totaled $200,787 as compared to $201,449 for March 31, 2015.

The following table represents data on impaired loans at March 31, 2016 and 2015:

	March 31,
	2016		2015
Impaired loans for which a valuation allowance has been provided	$		$
Impaired loans for which no valuation allowance has been provided		4,965,658		4,521,712
Total loans determined to be impaired	$	4,965,658	$	4,521,712
Allowance for loans losses related to impaired loans	$		$
Average recorded investment in impaired loans	$	5,054,436	$	4,707,275
Cash basis interest income recognized on impaired loans	$	200,787	$	201,449

F-22

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

The following table presents impaired loans with no valuation allowance by portfolio class at March 31, 2016:

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,964,318	$	2,920,343	$	$	2,912,541	$	70,879
Multi-family and commercial real estate		1,938,180		1,935,352			1,992,465		117,115
Commercial		55,695		55,695			34,346		9,207
Home equity							39,066		775
Consumer							15,864
Construction		59,105		54,268			60,154		2,811
Subtotal	$	5,017,298	$	4,965,658	$	$	5,054,436	$	200,787

Total Impaired Loans by Portfolio Class at March 31, 2016

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Total impaired loans:
Residential real estate	$	2,964,318	$	2,920,343	$	$	2,912,541	$	70,879
Multi-family and commercial real estate		1,938,180		1,935,352			1,992,465		117,115
Commercial		55,695		55,695			34,346		9,207
Home equity							39,066 775
Consumer							15,864
Construction		59,105		54,268			60,154		2,811
Total	$	5,017,298	$	4,965,658	$	$	5,054,436	$	200,787

F-23

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

The following table presents impaired loans with no valuation allowance by portfolio class at March 31, 2015:

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,600,317	$	2,535,471	$	$	2,742,623	$	65,065
Multi-family and commercial real estate		1,860,348		1,813,440			1,727,671		129,426
Commercial		34,526		34,526			30,991		1,314
Home equity		10,860		10,860			129,542		176
Consumer		71,388		71,388			18,185		2,169
Construction		56,027		56,027			58,263		3,299
Subtotal	$	4,633,466	$	4,521,712	$	$	4,707,275	$	201,449

Total Impaired Loans by Portfolio Class at March 31, 2015

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Total impaired loans:
Residential real estate	$	2,600,317	$	2,535,471	$	$	2,742,623	$	65,065
Multi-family and commercial real estate		1,860,348		1,813,440			1,727,671		129,426
Commercial		34,526		34,526			30,991		1,314
Home equity		10,860		10,860			129,542		176
Consumer		71,388		71,388			18,185		2,169
Construction		56,027		56,027			58,263		3,299
Total	$	4,633,466	$	4,521,712	$	$	4,707,275	$	201,449

The following table presents non-performing assets as of March 31, 2016 and 2015.

	March 31,
	2016		2015
Non-accrual loans:
Residential real estate	$	1,333,383	$	880,061
Multi-family and commercial real estate		552,545		661,456
Commercial		21,318
Home equity		110,921		10,860
Consumer				71,387
Construction
Total non-accrual loans		2,018,167		1,623,764

F-24

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6. LOANS (Continued)

	March 31,
	2016			2015
Accruing loans past due 90 days or more:
Residential real estate	$			$
Multi-family and commercial real estate
Commercial
Consumer
Construction
Total accruing loans past due 90 days or more
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	744,222		$	484,731
Multi-family and commercial real estate					228,744
Commercial
Home equity
Consumer
Construction
Total troubled debt restructurings in non-accrual status		744,222			713,475
Performing under modified terms:
Residential real estate	$	787,462		$	695,546
Multi-family and commercial real estate		765,579			772,940
Commercial
Home equity
Consumer
Construction		54,268			56,027
Total troubled debt restructurings performing under modified terms		1,607,309			1,524,513
Total troubled debt restructurings		2,351,531			2,237,988
Total non-performing loans		4,369,698			3,861,752
Real estate owned		1,763,627			2,433,483
Total non-performing assets	$	6,133,325		$	6,295,235
Non-performing loans as a percentage of loans		5.24	%		4.74	%
Non-performing assets as a percentage of loans and real estate owned		7.20	%		7.51	%
Non-performing assets as a percentage of total assets		4.74	%		4.90	%

F-25

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

The following table presents troubled debt restructurings that occurred during the years ended March 31, 2016 and 2015 and loans modified as troubled debt restructurings with the previous 12 months and for which there was a payment default during the period.

	2016						2015
			Outstanding Recorded						Outstanding Recorded
			Investment						Investment
	Number of		Pre-		Post-		Number of		Pre-		Post-
	Contracts		Modification		Modification		Contracts		Modification		Modification
Troubled debt restructurings:
Residential real estate		1	$	163,767	$	172,933		1	$	95,511	$	111,000

	Number of		Recorded	Number of		Recorded
	Contracts		Investment	Contracts		Investment
Troubled debt restructurings that subsequently defaulted:
Residential real estate		-0-	$		-0-	$

The following table presents the changes in real estate owned (REO), net of valuation allowance, for the years ended March 31, 2016 and 2015.

	March 31,
	2016			2015
Balance, beginning of year	$	2,433,483		$	1,949,825
Additions from loan foreclosures		332,495			2,332,861
Additions from capitalized costs
Dispositions of REO		( 751,952	)		( 1,591,941	)
(Loss) on sale of REO		( 3,519	)		( 82,062	)
Valuation adjustments during the year		( 246,879	)		( 175,200	)
Balance, end of year	$	1,763,628		$	2,433,483

The following table presents the changes in fair value adjustments to REO for the years ended March 31, 2016 and 2015.

	March 31,
	2016			2015
Balance, beginning of year	$	850,865		$	675,665
Valuation adjustments added during the year		246,879			642,080
Valuation adjustments on disposed properties during the year		( 870,513	)		( 466,880	)
Balance, end of year	$	227,231		$	850,865

F-26

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

The following table sets forth with respect to the Bank’s allowance for losses on loans:

	March 31,
	2016			2015
Balance at beginning of year	$	1,185,178		$	1,448,298
Provision:
Residential real estate		( 132,262	)		177,490
Multi-family and commercial real estate		9,520			175,662
Commercial		( 11,855	)		44,689
Home equity loans		10,741			21,478
Consumer		53,156			( 25,522	)
Construction		-0-			( 3,797	)
Total Provision (Recapture)	$	( 70,700	)	$	390,000
Charge-Offs:
Residential real estate		39,730			142,279
Multi-family and commercial real estate		16,871			597,896
Commercial					19,325
Home equity		10,860
Consumer		71,388			4,054
Recoveries		( 123,603	)		( 110,434	)
Total Net Charge-Offs		15,246			653,120
Balance at end of year	$	1,099,232		$	1,185,178
Year-end loans outstanding	$	83,374,259		$	81,421,435
Average loans outstanding	$	83,665,599		$	83,252,940
Allowance as a percentage of year-end loans		1.32	%		1.46	%
Net charge-offs as a percentage of average loans		0.02	%		0.78	%

F-27

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.     LOANS (Continued)

Additional details for changes in the allowance for loan by loan portfolio as of March 31, 2016 are as follows:

	Residential Real Estate			Multi-Family and Commercial Real Estate			Commercial			Home Equity			Consumer			Construction		Total
Allowance for loan losses:
Beginning balance	$	702,105		$	288,893		$	86,300		$	86,847		$	21,033		$	-0-	$	1,185,178
Loan charge-offs		(39,730	)		(16,871	)					(10,860	)		(71,388	)				(138,849	)
Recoveries		38,221			57,480			5,543						22,359					123,603
Provision for loan losses		(132,262	)		9,520			(11,855	)		10,741			53,156					(70,700	)
Ending balance	$	568,334		$	339,022		$	79,988		$	86,728		$	25,160		$		$	1,099,232
Ending balance:
individually evaluated for impairment	$			$			$			$			$			$		$
Ending balance:
collectively evaluated for impairment	$	568,334		$	339,022		$	79,988		$	86,728		$	25,160		$		$	1,099,232
Loans:
Ending balance	$	62,250,645		$	9,569,328		$	2,290,405		$	8,527,420		$	682,193		$	54,268	$	83,374,259
Ending balance:
individually evaluated for impairment	$	2,448,138		$	1,637,617		$	132,657		$	517,079		$			$	54,268	$	4,789,759
Ending balance:
collectively evaluated for impairment	$	59,802,507		$	7,931,711		$	2,157,748		$	8,010,341		$	682,193		$		$	78,584,500

Additional details for changes in the allowance for loan by loan portfolio as of March 31, 2015 are as follows:

	Residential Real Estate			Multi-Family and Commercial Real Estate			Commercial			Home Equity		Consumer			Construction			Total
Allowance for loan losses:
Beginning balance	$	656,156		$	634,968		$	58,399		$	65,369	$	29,609		$	3,797		$	1,448,298
Loan charge-offs		(142,279	)		(597,896	)		(19,325	)				(4,054	)					(763,554	)
Recoveries		10,738			76,159			2,537					21,000						110,434
Provision for loan losses		177,490			175,662			44,689			21,478		(25,522	)		(3,797	)		390,000
Ending balance	$	702,105		$	288,893		$	86,300		$	86,847	$	21,033		$	-0-		$	1,185,178
Ending balance:
individually evaluated for impairment	$			$			$			$		$			$			$
Ending balance:
collectively evaluated for impairment	$	702,105		$	288,893		$	86,300		$	86,847	$	21,033		$			$	1,185,178
Loans:
Ending balance	$	62,788,782		$	7,979,569		$	1,913,466		$	8,005,627	$	677,964		$	56,027		$	81,421,435
Ending balance:
individually evaluated for impairment	$	2,548,574		$	1,813,440		$	34,526		$	10,860	$			$			$	4,407,400
Ending balance:
collectively evaluated for impairment	$	60,240,208		$	6,166,129		$	1,878,940		$	7,994,767	$	677,964		$	56,027		$	77,014,035

F-28

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

6.      LOANS (Continued)

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. 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. 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. At March 31, 2016, the Bank maintained an allowance for loan loss ratio of 1.32% to year end loans outstanding. On a linked basis, non-performing assets have decreased by $161,910 over their stated levels at March 31, 2015 representing a non-performing asset to total asset ratio of 4.74% at March 31, 2016 as compared to a non-performing asset to total asset ratio of 4.90% at March 31, 2015.     

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.

For the year ending March 31, 2016, the Bank experienced one charge-off relating to one loan relationship totaling $71,388 and partial charge-offs relating to three loan relationships totaling $67,461 as compared to two charge-offs relating to two loan relationships totaling $22,694 and partial charge-offs relating to seventeen loan relationships totaling $740,860 for the year ended March 31, 2015.

In the ordinary course of business, the Bank has and expects to continue to have transactions, including borrowings, with its officers and directors. In the opinion of management, transactions with directors were on substantially the same terms, including interest rates and collateral, as those prevailing at the time of comparable transactions with other persons and did not involve more than a normal risk of collectability or present any other unfavorable features to the Bank. Officers of the Company are entitled to 1% loan discount, under a Bank-wide employee discount program, from those prevailing at the time of comparable transactions with other persons and did not involve more than a normal risk of collectability or present any other unfavorable features to the Bank. Loans to such borrowers are summarized as follows:

	March 31,
	2016			2015
Balance, beginning of year	$	786,325		$	776,516
Payments		(56,887	)		(30,691	)
Borrower no longer associated with Bank		(40,712	)
Borrowings		1,000,000			40,500
Balance, end of year	$	1,688,726		$	786,325

F-29

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

7.     LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying statement of financial condition. The unpaid principal balances of these loans at March 31, 2016 and 2015 are summarized as follows:

	March 31,
	2016		2015
Mortgage Loan Servicing Portfolio:
Mortgage Partnership
Finance FHLB New York	$	125,666	$	130,080

8.     ACCRUED INTEREST RECEIVABLE

Accrued interest receivable at March 31, 2016 and 2015 consists of the following:

	March 31,
	2016		2015
Loans	$	249,245	$	261,564
Investment securities		116,358		165,257
Mortgage backed securities		3,535		10,019
	$	369,138	$	436,840

9.    PREMISES AND EQUIPMENT

Premises and equipment at March 31, 2016 and 2015 consists of the following:

	March 31,
	2016			2015
Land	$	1,451,203		$	1,451,203
Buildings		6,864,728			6,848,967
Furniture, fixtures and equipment		2,054,765			2,006,454
		10,370,696			10,306,624
Accumulated depreciation		( 4,080,649	)		( 3,816,293	)
	$	6,290,047		$	6,490,331

Depreciation expense amounted to $264,356 and $257,153 for the years ended March 31, 2016 and 2015, respectively.

10. FEDERAL HOME LOAN BANK STOCK

The Company is a member of the Federal Home Loan Bank System. As a member, the Company maintains an investment in the capital stock of the Federal Home Loan Bank of New York in an amount not less than 1% of its outstanding home loans or 1/20 of its outstanding notes payable, if any, to the Federal Home Loan Bank of New York, whichever is greater, as calculated December 31 of each year.

F-30

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

11.   DEPOSITS

Deposit account balances at March 31, 2016 and 2015 are summarized as follows:

			March 31, 2016
					Weighted Average			Percent of
			Amount		Interest Rate			Portfolio
Non interest bearing accounts			$	12,054,146			%		10.78
Interest bearing checking accounts				23,027,846		0.19			20.59
Passbook savings accounts				17,724,072		0.10			15.84
Money Market accounts				19,813,982		0.49			17.71
Club accounts				143,488		0.10			0.13
				72,763,534					65.05
Certificates of Deposits:
0.10%	to	0.99%		21,695,607		0.59			19.39
1.00%	to	1.99%		14,773,019		1.29			13.21
2.00%	to	2.99%		2,632,487		2.23			2.35
				39,101,113					34.95
			$	111,864,647					100.00	%

			March 31, 2015
					Weighted Average			Percent of
			Amount		Interest Rate			Portfolio
Non interest bearing accounts			$	10,733,275			%		9.74
Interest bearing checking accounts				20,816,278		0.20			18.89
Passbook savings accounts				15,415,613		0.10			13.99
Money Market accounts				19,780,377		0.44			17.95
Club accounts				133,586		0.10			0.12
				66,879,129					60.69
Certificates of Deposits:
0.10%	to	0.99%		26,142,514		0.56			23.72
1.00%	to	1.99%		12,866,189		1.29			11.68
2.00%	to	2.99%		4,310,287		2.31			3.91
				43,318,990					39.31
			$	110,198,119					100.00	%

Certificates of deposit and other time deposits issued in denominations that meets or exceeds the FDIC insurance limit of $250,000 totaled $2,485,471 and $1,884,049 at March 31, 2016 and 2015, respectively, and are included in interest-bearing deposits in the balance sheet.

F-31

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

11.   DEPOSITS (Continued)

Scheduled maturities of certificates of deposits at March 31, 2016 and 2015 are as follows:

	March 31,
	2016		2015
2016	$		$	25,527,548
2017		23,090,517		9,336,093
2018		8,181,234		3,584,198
2019		3,374,490		2,252,245
2020		2,358,507		2,618,906
2021		2,096,365
	$	39,101,113	$	43,318,990

The Company held deposits from officers and directors of approximately $755,000 and $957,000 at March 31, 2016 and 2015, respectively. These transactions were on the same terms as those prevailing at the time of comparable transactions with other persons.

12. LINE OF CREDIT FROM ATLANTIC COMMUNITY BANKERS BANK

The Company maintains a line of credit with Atlantic Community Bankers Bank at a rate to be determined by the lender when funds are borrowed. At March 31, 2016 and 2015, the outstanding balance on the $1 million unsecured line of credit was $ -0-.

13. ADVANCES FROM FEDERAL HOME LOAN BANK

Advances from the Federal Home Loan Bank of New York as of March 31, 2016 and 2015 are as follows:

Maturity	Interest
Date	Rate			2016		2015
October 19, 2016		0.45	%	$		$	1,000,000
April 18, 2016		0.74	%		2,000,000		2,000,000
October 17, 2016		0.81	%		1,000,000		1,000,000
				$	3,000,000	$	4,000,000

Specific repos and other securities, with balances approximating $16,800,000 and $18,088,000 at March 31, 2016 and 2015, respectively, were pledged to the FHLB of New York as collateral. As of March 31, 2016, the Company had a borrowing capacity in a combination of term advances and overnight borrowings of up to $9,586,016 at the FHLB of New York.

14.   INCOME TAXES

The Company is subject to federal and New Jersey state income tax.

F-32

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

14.   INCOME TAXES (Continued)

The Company and subsidiary file a consolidated federal income tax return. The Company’s consolidated (credit) for income taxes for the years ended March 31, 2016 and 2015 consists of the following:

	Years Ended
	March 31,
	2016			2015
Income Tax Expense (benefit)
Current federal tax expense
Federal	$	-		$	-
State		3,000			3,000
Deferred tax (benefit)
Federal		(85,569	)		(241,825	)
State		29,971			(86,395	)
Total	$	(52,598	)	$	(325,220	)

The consolidated provision for income taxes for the years ended March 31, 2016 and 2015 differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis:

	Years Ended
	March 31,
	2016			2015
Expected federal tax provision (benefit) at 34% rate	$	(24,027	)	$	(325,738	)
Municipal bond interest		(469	)		(899	)
Increase in cash surrender value of life insurance		(1,700	)		(1,972	)
State income tax		(26,402	)		(64,021	)
Valuation allowance for state operating loss carryforward					67,410
Total income tax (benefit)		(52,598	)		(325,220	)
Effective tax rate (benefit)		(74.4%	)		(33.9%	)

A summary of deferred tax assets and liabilities as of March 31, 2016 and 2015 are as follows:

	March 31,
	2016		2015
Deferred tax assets:
Accrued pension costs	$	9,500	$	7,200
Allowance for loan losses		438,935		722,503
Directors’ benefit plans		131,500		122,000
Employee stock option		32,200		18,200
FASB 158 – unrecognized transition costs		91,100		118,000
Federal tax loss carryforward		1,050,900		774,000
State tax loss carryforward		372,800		391,000
Unrealized losses on securities available-for-sale				11,000
Non accrual interest		15,000		16,000
Total deferred tax assets	$	2,141,935	$	2,179,903
Valuation allowance		-		(67,410	)

F-33

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

14.   INCOME TAXES (Continued)

	March 31,
	2016			2015
Deferred tax liabilities:
Accumulated depreciation	$	(64,000	)	$	(52,260	)
Unrealized gains on securities available-for-sale		(11,400	)
Total deferred tax liabilities		(75,400	)		(52,260	)
NET DEFERRED TAX ASSETS	$	2,066,535		$	2,060,233

The Company accounts for uncertainties in income taxes in accordance with FASB ASC Topic 740 “Accounting for Uncertainty in Income Taxes”. The Company has determined that there are no significant uncertain tax positions requiring recognition in its financial statements.

In the event the Company is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense. As of March 2016, the Internal Revenue Service had concluded an audit of the Company's tax returns for the years ended December 31, 2013 and 2014 and no adverse findings were noted. The federal income tax returns for taxable years through December 31, 2014 have been closed for purposes of examination by the Internal Revenue Service. Tax year 2015 remains subject to examination by federal taxing authorities. Tax years 2012 through 2015 remain subject to examination by New Jersey and Pennsylvania taxing authorities.

The Company has considered future market growth, forecasted earnings, future taxable income, and prudent, feasible and permissible tax planning strategies in determining the realizability of deferred tax assets. If the Company were to determine that it would not be able to realize a portion of its net deferred tax assets in the future, an adjustment to the net deferred tax assets would be charged to earnings in the period such determination was made.

As of March 31, 2016, the Company had approximately $3,400,000 federal net operating loss carryforwards, which result in a deferred tax asset of $1,050,900, expiring from 2029 through 2035.

As of March 31, 2016, the Company had approximately $4,140,000 of state net operating loss carryforwards, which result in a deferred tax asset of $372,800, expiring from 2029 through 2035.

15. EMPLOYEE BENEFITS

Cash/Deferred Profit Sharing Plan

The Company maintains a cash/deferred profit sharing plan covering all full time employees with one year of service and who are at least twenty-one years of age. Participants enter the Plan on the 1st of January or 1st of July subsequent to meeting the above requirements.

The Company may contribute up to 10% of the annual compensation of each eligible employee. The Company’s contribution to the plan was $-0- for the years ended March 31, 2016 and 2015.

F-34

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

16. BOARD OF DIRECTORS’ RETIREMENT PLAN

The Company established a Defined Benefit Retirement Plan for the Bank’s Board of Directors on January 1, 2002. This plan provides a monthly retirement benefit equal to 4% of the board fees payable as of their retirement date, multiplied by their completed years of service, up to a maximum of 80% of the final fee amount. Directors must complete at least ten years of service in order to receive a retirement benefit under the plan. Director retirement benefits are payable in equal monthly installments during the director’s lifetime, unless the director elects to receive a life annuity with the first 129 months guaranteed or a life annuity with either 50% or 100% (joint and survivor benefits) continuing for the spouse’s lifetime after the Director dies. Under these other options, the retirement benefit is reduced to account for the value of the potential additional payments.

The estimated past service liability that will be amortized from accumulated other comprehensive income into net periodic pension costs over the next fiscal year is zero.

Net pension expense was $59,196 and $30,648 for years ended March 31, 2016 and 2015, respectively. The components of net pension cost are as follows:

	Years Ended
	March 31,
	2016		2015
Service cost	$	18,012	$	7,080
Interest cost		23,276		18,924
Amortization of gain		17,908		4,644
Net amortization and deferral		-0-		-0-
Net periodic pension cost	$	59,196	$	30,648

     The following table presents a reconciliation of the funded status of the defined benefit pension plan at March 31, 2016 and 2015:          

	March 31,
	2016		2015
Accumulated benefit obligation	$	540,070	$	558,403
Projected benefit obligation		556,522		599,324
Fair value of plan assets		-0-		-0-
Unfunded projected benefit obligation		556,522		599,324

     The following table presents a reconciliation of benefit obligations and plan assets:          

	March 31,
	2016			2015
Change in Benefit Obligation
Projected benefit obligation at beginning of year	$	599,324		$	415,803
Service cost		18,012			7,080
Interest cost		23,276			18,924
Actuarial (gain) loss		(48,863	)		192,737
Benefits paid		(35,227	)		(35,220	)
Benefit obligation at end of year	$	556,522		$	599,324

F-35

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

16. BOARD OF DIRECTORS’ RETIREMENT PLAN (Continued)

	March 31,
	2016			2015
Change in Plan Assets
Fair value of Plan assets at beginning of year	$	-0-		$	-0-
Actual return on Plan assets		-0-			-0-
Employer contributions		35,227			35,220
Benefits paid		(35,227	)		(35,220	)
Fair value of Plan assets at end of year	$	-0-		$	-0-

Actuarial assumptions used in determining pension amounts are as follows:

	Years Ended
	March 31,
	2016			2015
Discount rate for periodic pension cost		4.00	%		4.75	%
Discount rate for benefit obligation		4.25	%		4.00	%
Rate of increase in compensation levels and social security wage base		2.00	%		2.00	%
Expected long-term rate of return on plan assets		N/A			N/A

17. EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)

The Company has an Employee Stock Ownership Plan (“ESOP”) for the benefit of employees who meet the eligibility requirements as defined in the ESOP. The ESOP purchased 64,081 shares of common stock in the offering completed in March 2007 using proceeds of a loan from the former mid-tier holding company. The Company made annual payments of principal and interest over a term of 20 years at a rate of 8.25% to the Company. On October 16, 2013, the remaining unallocated shares were converted at a conversion rate of .5711 to 1 of the new Company shares. The remaining loan balance was refinanced over a term of 14 years at a rate of 3.25%. The ESOP has a second loan from the Company to fund the purchase of 23,644 additional shares in connection with the second step conversion completed on October 16, 2013 under which the Company makes annual payments of principal and interest over a term of 14 years at a rate of 3.25% to the Company. The loans are secured by the shares of the stock purchased.

The following table presents the components of the ESOP shares purchased.

	Years Ended
	March 31,
	2016		2015
Shares released for allocation		21,534		18,016
Unearned shares		38,706		42,224
Total ESOP shares		60,240		60,240

18.   STOCK BASED COMPENSATION

On May 19, 2008, the Board of Directors adopted and the stockholders approved on August 18, 2008, the Delanco Bancorp, Inc. 2008 Equity Incentive Plan. The 2008 Equity Incentive Plan authorized the granting of up to 80,101 stock options and 32,040 shares of restricted stock. All of the Company’s employees, officers, and directors are eligible to participate in the 2008 Plan.

On October 16, 2013, options to purchase a total of 20,000 shares were granted at a price of $8.00 per share. The option will expire on the tenth anniversary of the date of the grant and will become exercisable in equal 20% installments on each anniversary of the grant date.

F-36

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

18.   STOCK BASED COMPENSATION (Continued)

The following table is a summary of the status of the shares under the 2008 Equity Incentive Plan as of March 31, 2016 and changes during the year ended March 31, 2016.

	Year Ended March 31, 2016
			Weighted Average
	Number of		Grant Date
	Shares		Fair Value
Restricted at the beginning of the period		16,000	$	8.69
Granted
Vested		4,000
Forfeited
Restricted at the end of the period		12,000		8.69

19.   EARNINGS PER SHARE

The following table sets forth the composition of the weighted average shares (denominator) used in the basic and dilutive earnings per share computation for the years ended March 31, 2016 and 2015.

	2016			2015
Net (Loss)		(18,070	)	$	(632,832	)
Weighted average shares outstanding		945,425			945,425
Adjusted average unearned ESOP shares		(38,705	)		(42,224	)
Weighted average share outstanding - basic		906,720			903,201
Effect of dilutive common stock equivalents		-			-
Adjusted weighted average shares outstanding - dilutive		906,720			903,201
Basic loss per share	$	(0.02	)	$	(0.70	)
Diluted loss per share	$	(0.02	)	$	(0.70	)

The effect of the 20,000 stock options outstanding as of March 31, 2016 is antidilutive and therefore not presented in the above table.

20. FAIR VALUE MEASUREMENTS

FASB ASC 825, Financial Instruments, permits entities to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The election to use the fair value option is available when an entity first recognizes a financial asset or financial liability or upon entering into a commitment. Subsequent changes must be recorded in earnings.

FASB ASC 820, Fair Value Measurement clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Under this guidance, fair value measurements are not adjusted for transaction costs. This guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under this guidance are described below.

Level 1  Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

F-37

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

20. FAIR VALUE MEASUREMENTS (Continued)

Level 2

Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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

The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. As required by this guidance, the Company does not adjust the quoted price for such instruments.

The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid entities, state, municipal and provincial obligations, and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or market value. Market value is measured based on the value of the collateral securing these loans and is classified at a Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of real estate collateral is determined based on appraisal by qualified licensed appraisers hired by the Company. The value of business equipment, inventory and accounts receivable collateral is based on the net book value on the business’ financial statements and, if necessary, discounted based on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified previously.

The following tables set forth the Company’s assets and liabilities that were accounted for or disclosed at fair value on a recurring basis as of March 31, 2016 and 2015.

				Significant
				Other		Significant
	Carrying			Observable		Unobservable
	Value		Quoted Prices	Inputs		Inputs
	(Fair Value)		(Level 1)	(Level 2)		(Level 3)
March 31, 2016
Securities available for sale:
Certificates of Deposit	$	1,530,854	$	$	1,530,854	$
Federal National Mortgage Association		497,247			497,247
Mutual Fund Shares		121,992			121,992
Totals	$	2,150,093	$	$	2,150,093	$

F-38

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

20. FAIR VALUE MEASUREMENTS (Continued)

Those assets as of March 31, 2015 which are to be measured at fair value on a recurring basis are as follows:

				Significant
				Other		Significant
	Carrying			Observable		Unobservable
	Value		Quoted Prices	Inputs		Inputs
	(Fair Value)		(Level 1)	(Level 2)		(Level 3)
March 31, 2015
Securities available for sale:
Federal Home Loan Bank Bonds	$	489,883	$	$	489,883	$
Federal National Mortgage Association		482,558			482,558
Mutual Fund Shares		155,074			155,074
Totals	$	1,127,515	$	$	1,127,515	$

Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The Company measures impaired loans and real estate owned at fair value on a non-recurring basis.

Impaired Loans

The Company considers loans to be impaired when it becomes more likely than not that the Company will be unable to collect all amounts due in accordance with the contractual terms of the loan agreements. Collateral dependent impaired loans are based on the fair value of the collateral which is based on appraisals and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, age of the comparables included in the appraisal, and known changes in the market and in the collateral. These adjustments are based upon unobservable inputs, and therefore, the fair value measurement would be categorized as a Level 3 measurement. These loans are reviewed for impairment and written down to their net realizable value by charges against the allowance for loan losses.

Real Estate Owned

Once an asset is determined to be uncollectible, the underlying collateral is generally repossessed and reclassified to foreclosed real estate and repossessed assets. These repossessed assets are carried at the lower of cost or fair value of the collateral, based on independent appraisals, less cost to sell and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including age of the appraisal, age of the comparables included in the appraisal, and known changes in the market and in the collateral. Thus the evaluations are based upon unobservable inputs, and therefore, the fair value measurement would be categorized as a Level 3 measurement.

The following tables set forth the Company’s assets and liabilities that were accounted for and or disclosed at fair value on a nonrecurring basis as of March 31, 2016 and 2015:

					Significant
				Other	Significant
	Carrying			Observable	Unobservable
	Value		Quoted Prices	Inputs	Inputs
	(Fair Value)		(Level 1)	(Level 2)	(Level 3)
March 31, 2016
Impaired loans	$	4,965,658	$	$	$	4,965,658
Real estate owned		1,763,628				1,763,628
Total	$	6,729,286	$	$		6,729,286

F-39

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

20. FAIR VALUE MEASUREMENTS (Continued)

				Significant
				Other	Significant
	Carrying			Observable	Unobservable
	Value		Quoted Prices	Inputs	Inputs
	(Fair Value)		(Level 1)	(Level 2)	(Level 3)
March 31, 2015
Impaired loans	$	4,521,712	$	$	$	4,521,712
Real estate owned		2,433,483				2,433,483
Total	$	6,955,195	$	$	$	6,955,195

The following table provides information describing the valuation processes used to determine nonrecurring fair value measurement categorized within Level 3 of the fair value hierarchy as of March 31, 2016 and 2015:

	March 31, 2016
	Fair		Valuation
	Value		Technique	Unobservable Input	Range
Impaired loans	$	4,965,658	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount
Real estate owned	$	1,763,628	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount

	March 31, 2016
	Fair		Valuation
	Value		Technique	Unobservable Input	Range
Impaired loans	$	4,521,712	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount
Real estate owned	$	2,433,483	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount

The fair value of financial instruments amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

F-40

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

20. FAIR VALUE MEASUREMENTS (Continued)

In accordance with the disclosure requirements of FASB ASC 825, Financial Instruments, the estimated fair values of the Company’s financial instruments are as follows:

					Fair Value Measurements
							Significant		Significant
							Other		Unobserv-
					Quoted		Observable		able
	Carrying				Prices		Inputs		Inputs
March 31,2016	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	12,127,388	$	12,127,388	$	12,127,388	$		$
Investment securities available for sale		2,121,777		2,150,093				2,150,093
Investment and mortgage-backed securities held to maturity		21,584,538		84,744,000				21,639,610
Loans receivable, net		82,197,809								84,744,000
Accrued interest receivable		369,138		369,138		369,138
Federal Home Loan Bank stock		253,800		253,800		253,800
Bank owned life insurance		174,252		174,252		174,252
Financial Liabilities:
Deposits – non-interest bearing		12,054,146		12,054,146		12,054,146
Deposits – interest bearing		99,810,501						99,899,854
Advances from Federal Home Loan Bank		3,000,000		3,000,000		3,000,000
Accrued interest payable		5,830		5,830		5,830
Advances from borrowers for taxes and insurance		433,034		433,034		433,034

					Fair Value Measurements
							Significant		Significant
							Other		Unobserv-
					Quoted		Observable		able
	Carrying				Prices		Inputs		Inputs
March 31, 2016	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	10,450,448	$	10,450,448	$	10,450,448	$		$
Investment securities available for sale		1,154,418		1,127,515				1,127,515
Investment and mortgage-backed securities held to maturity		24,617,338		24,566,903				24,566,903
Loans receivable, net		80,146,397		79,675,000						79,675,000
Accrued interest receivable		436,840		436,840		436,840
Federal Home Loan Bank stock		306,300		306,300		306,300
Bank owned life insurance		169,252		169,252		169,252
Financial Liabilities:
Deposits – non-interest bearing		10,733,275		10,733,275		10,733,275
Deposits – interest bearing		99,464,844		99,411,000				99,411,000
Advances from Federal Home Loan Bank		4,000,000		4,000,000		4,000,000
Accrued interest payable		5,763		5,763		5,763
Advances from borrowers for taxes and insurance		320,356		320,356		320,356

F-41

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

20. FAIR VALUE MEASUREMENTS (Continued)

Cash and Cash Equivalents – For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value.

Investments and Mortgage-Backed Securities – The fair value of investment securities and mortgage-backed securities is based on quoted market prices, dealer quotes, and prices obtained from independent pricing services.

Loans Receivable – The fair value of loans is estimated based on present value using the current market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The carrying value that fair value is compared to is net of the allowance for loan losses and other associated premiums and discounts. Due to the significant judgment involved in evaluating credit quality, loans are classified within level 3 of the fair value hierarchy.

Accrued Interest Receivable – For accrued interest receivable, the carrying amount is a reasonable estimate of fair value.

Federal Home Loan Bank (FHLB) Stock – Although FHLB stock is an equity interest in an FHLB, it is carried at cost because it does not have a readily determinable fair value as its ownership is restricted and it lacks a market. The estimated fair value approximates the carrying amount.

Bank Owned Life Insurance – The fair value of bank owned life insurance is based on the cash surrender value obtained from an independent advisor that are derivable from observable market inputs.

Deposits – The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Advances from the Federal Home Loan Bank – The carrying amounts of advances from the Federal Home Loan Bank approximate the fair value.

Accrued Interest Payable – For accrued interest payable, the carrying amount is a reasonable estimate of fair value.

Advances from Borrowers for Taxes and Insurance – For advances from borrowers for taxes and insurance, the carrying amount is a reasonable estimate of fair value.

21.   COMMITMENTS AND CONTINGENCIES

Financial Instruments

In the normal course of business, there are outstanding commitments, contingent liabilities and other financial instruments that are not reflected in the accompanying financial statements. These include commitments to extend credit and standby letters of credit, which are some of the instruments used by the Company to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet.

F-42

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

21.   COMMITMENTS AND CONTINGENCIES (Continued)

The Company’s exposure to credit loss in the event of nonperformance by the other parties to the financial instrument for these commitments is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. These commitments as of March 31, 2016 and 2015 were as follows:

	2016		2015
	Contractual		Contractual
	Amount		Amount
Financial instruments whose notional or contract amounts represent credit risk:
Construction loan commitments	$		$	225,000
Unused commercial lines of credit		1,212,000		1,425,000
Unused home equity lines of credit		4,969,000		4,450,000
Personal lines of credit		635		2,500
1-4 family residential mortgage commitments		1,232,000		1,683,000
Commercial real estate mortgage commitments				1,000,000
Standby letters of credit		55,000		55,000
Total	$	7,468,635	$	8,840,500

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Certain commitments have fixed expiration dates, or other termination clauses, and may require payment of a fee. Many of the commitments are expected to expire without being drawn upon; accordingly, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral or other security obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include deposits held in financial institutions; U.S. Treasury securities; other marketable securities; accounts receivable; inventory; property and equipment; personal residences; income-producing commercial properties and land under development. Personal guarantees are also obtained to provide added security for certain commitments.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to guarantee the installation of real property improvements and similar transactions. The credit risk involved in issued letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral and obtains personal guarantees supporting those commitments for which collateral or other security is deemed necessary.

The Company has not been required to perform on any financial guarantees during the past two years. The Company has not incurred any losses on its commitments in either 2016 or 2015.

Litigation

The Company is subject to claims and lawsuits which arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the financial position of the Company.

22. RELATED PARTY TRANSACTIONS

The Company obtained legal services and insurance products from other entities which were affiliated with Directors of the Bank. The aggregate payment for these products and services amounted to $186,985 and $183,345, for the years ended March 31, 2016 and 2015, respectively.

F-43

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

23.   REGULATORY CAPITAL

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines involving quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and Tier 1 Capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of March 31, 2016 and 2015, that the Bank meets all capital adequacy requirements to which it was subject.

As of March 31, 2016, the Bank exceeded all regulatory capital requirements necessary to be considered a “well capitalized” bank, but was classified as “adequately capitalized” because it was subject to a written agreement with the OCC.

The Bank’s actual and required capital amounts and ratios as of March 31, 2016 and 2015 are as follows:

										Minimum to be Well
										Capitalized Under Prompt
						For Capital				Corrective Action
	Actual					Adequacy Purposes				Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
As of March 31, 2016:
Total Capital (to Risk-Weighted Assets)	$	11,859,000		17.26	%	≥	$5,498,000	≥	8.0%	≥	$6,873,000	≥	10.0%
Tier 1 Capital (to Risk-Weighted Assets)	$	10,988,000		15.99	%	≥	$4,123,500	≥	6.0%	≥	$5,498,000	≥	8.0%
Tier 1 Common (to Risk-Weighted Assets)	$	10,988,000		15.99	%	≥	$3,092,625	≥	4.5%	≥	$4,467,125	≥	6.5%
Tier 1 Capital (to Average Assets)	$	10,988,000		8.67	%	≥	$5,068,000	≥	4.0%	≥	$6,335,000	≥	5.0%

										Minimum to be Well
										Capitalized Under Prompt
						For Capital				Corrective Action
	Actual					Adequacy Purposes				Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
As of March 31, 2015:
Total Capital (to Risk-Weighted Assets)	$	11,839,000		16.97	%	≥	$5,615,000	≥	8.0%	≥	$7,019,000	≥	10.0%
Tier 1 Capital (to Risk-Weighted Assets)	$	10,958,000		15.61	%	≥	$4,211,520	≥	6.0%	≥	$5,615,000	≥	8.0%
Tier 1 Common (to Risk-Weighted Assets)	$	10,958,000		15.61	%	≥	$3,158,640	≥	4.5%	≥	$4,562,000	≥	6.5%
Tier 1 Capital (to Total Assets)	$	10,958,000		8.66	%	≥	$5,059,000	≥	4.0%	≥	$6,324,000	≥	5.0%

F-44

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

24.   REGULATORY MATTERS

Federal regulations place certain restrictions on dividends paid by the Bank to the Company. The total amount of dividends that may be paid at any date is generally limited to the earnings of the Bank year to date plus retained earnings for the prior two fiscal years, net of any prior capital distributions. In addition, dividends paid by the Bank to the Company would be prohibited if the distribution would cause the Bank’s capital to be reduced below the applicable minimum capital requirements.

The Bank is party to 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 issued by 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.

The Agreement will remain in effect until terminated, modified, or suspended in writing by the OCC.

The written agreement does not require the Bank to maintain any specific minimum regulatory capital ratios. However, by letter dated January 2, 2013, the OCC established higher individual minimum capital requirements for the Bank. Specifically, the Bank must maintain Tier 1 capital at least equal to 8% of adjusted total assets, Tier 1 capital at least equal to 12% of risk-weighted assets, and total capital at least equal to 13% of risk-weighted assets. At March 31, 2016, the Bank’s Tier 1 leverage capital ratio, Tier 1 risk-based capital ratio and total risk based-capital ratio were 8.67%, 15.99% and 17.26%, respectively.

F-45

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

25. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BALANCES

The following presents the changes in accumulated other comprehensive income (loss) by component net of tax:

	Unrealized
	Gains (Losses)			Defined			Accumulated
	On Available			Benefit			Other
	For Sale			Pension			Comprehensive
	Securities			Plans			Income (Loss)
Balance as of April 1, 2015	$	(16,142	)	$	(176,714	)	$	(192,856	)
Other comprehensive income before reclassification		33,131			40,063			73,194
Total other comprehensive income		33,131			40,063			73,194
Balance as of March 31, 2016	$	16,989		$	(136,651	)	$	(119,662	)

26. FINANCIAL INFORMATION OF PARENT COMPANY

Delanco Bancorp, Inc. (Parent Company Only)

	For the Years Ended
	March 31,
	2016		2015
Statement of Financial Condition
Assets:
Cash and cash equivalents	$	480,129	$	460,783
Investment in Bank		9,536,490		9,592,799
Deferred income taxes		32,219		18,130
Total assets	$	10,048,838	$	10,071,712
Stockholders’ equity:
Total stockholders’ equity		10,048,838		10,071,712
Total liabilities and stockholders’ equity	$	10,048,838	$	10,071,712

F-46

Delanco Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

March 31, 2016 and 2015

26.     FINANCIAL INFORMATION OF PARENT COMPANY (Continued)

	For the Years Ended
	March 31,
	2016			2015
Income Statement
Interest on ESOP loan	$	20,556		$	21,938
Other interest income		456			706
Total income	$	21,012		$	22,644
Management fee		45,000			45,000
Compensation expense		35,220			30,216
Total expense		80,220			75,216
(Loss) before income tax benefit and equity in undistributed net loss of subsidiary		(59,208	)		(52,572	)
Equity in undistributed net income (loss) of subsidiary		27,549			(591,847	)
Income tax benefit		13,589			11,587
Net (loss)	$	(18,070	)	$	(632,832	)

		For the Years Ended
		March 31,
		2016			2015
Cash Flows
Adjustments to reconcile net loss to net cash used in operating activities:
Share based compensation expense	$	35,220		$	30,216
Operating activities:
Net (loss)		(18,070	)	$	(632,832	)
Undistributed net (income) loss of subsidiary		(27,549	)		591,847
Increase in deferred income taxes		(14,089	)		(12,087	)
Net cash (used in) operating activities		(24,488	)		(22,856	)
Investing activities:
Distribution to subsidiary					(275,000	)
Net cash (used in) investing activities					(275,000	)
Financing activities:
Proceeds from ESOP loan		43,834			42,451
Net cash provided by financing activities		43,834			42,451
Net increase (decrease) in cash and cash equivalents		19,346			(255,405	)
Cash and cash equivalents, beginning of year		460,783			716,188
Cash and cash equivalents, end of year	$	480,129		$	460,783

F-47

EX-21.0

Exhibit 21.0

LIST OF SUBSIDIARIES

Registrant:     Delanco Bancorp, Inc. 

Subsidiaries	Percentage Ownership	Jurisdiction or State of Incorporation
Delanco Federal Savings Bank	100%	United States
DFSB Properties, LLC (1)	100%	New Jersey
DFSB Properties II, LLC (1)	100%	New Jersey

_________________

(1) Wholly-owned subsidiary of Delanco Federal Savings Bank.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Delanco Bancorp, Inc. Registration Statement No. 333-194172 on Form S-8 of our report dated June 29, 2016 relating to our audit of the consolidated financial statements of Delanco Bancorp, Inc. and subsidiaries as of March 31, 2016 appearing in the Annual Report on Form 10-K.

/s/ Connolly, Grady & Cha, P.C.

Certified Public Accountants

Philadelphia, Pennsylvania

June 29, 2016

EX-31.1

Exhibit 31.1

Certification

I, James E. Igo, certify that:

1.	I have reviewed this annual report on Form 10-K 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: June 29, 2016	/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 annual report on Form 10-K 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: June 29, 2016	/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 Annual Report of Delanco Bancorp, Inc. (the “Company”) on Form 10-K for the fiscal year ended March 31, 2016, as filed with the Securities and Exchange Commission (the “Report”), the undersigned 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 operations of the Company as of and for the periods covered by this Report.

By:	/s/ James E. Igo
	James E. Igo
	Chairman, President and Chief Executive Officer
	June 29, 2016
By:	/s/ Eva Modi
	Eva Modi
	Chief Financial Officer
	June 29, 2016

XML

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Mar. 31, 2016	Jun. 08, 2016	Sep. 30, 2015
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
Entity Public Float			$ 8.9
Document Type	10-K
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Amendment Flag	false

XML

Consolidated Statements of Financial Condition - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Assets
Cash and amount due from depository institutions	$ 585,364	$ 687,488
Interest-bearing deposits with depository institutions	11,542,024	9,762,960
Total cash and cash equivalents	12,127,388	10,450,448
Investment Securities
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	2,150,093	1,127,515
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	21,584,538	24,617,338
Total investment securities	23,734,631	25,744,853
Loans, net of allowance for loan losses of $1,099,232 and $1,185,178 at March 31, 2016 and 2015, respectively	82,197,809	80,146,397
Accrued interest receivable	369,138	436,840
Real estate owned	1,763,628	2,433,483
Federal Home Loan Bank stock, at cost	253,800	306,300
Premises and equipment, net	6,290,047	6,490,331
Deferred income taxes, net	2,066,535	2,060,233
Bank-owned life insurance	174,252	169,252
Other assets	437,797	334,613
Total Assets	129,415,025	128,572,750
Liabilities
Non-interest bearing	12,054,146	10,733,275
Interest-bearing	99,810,501	99,464,844
Total deposits	111,864,647	110,198,119
Advances from Federal Home Loan Bank	3,000,000	4,000,000
Accrued interest payable	5,830	5,763
Advance payments by borrowers for taxes and insurance	433,034	320,356
Other liabilities	815,802	876,221
Total liabilities	$ 116,119,313	$ 115,400,459
Commitments and Contingencies (Note 21)
Stockholders’ Equity
Preferred stock, $.01 par value, 5,000,000 shares authorized at March 31, 2016 and 2015: None issued
Common stock, $.01 par value, 20,000,000 shares authorized: 945,425 shares issued and outstanding at March 31, 2016 and 2015	$ 9,454	$ 9,454
Additional paid-in capital	9,988,509
Retained earnings, substantially restricted	3,918,476
Unearned common stock held by employee stock ownership plan	(501,065)	(546,617)
Accumulated other comprehensive loss	(119,662)	(192,856)
Total stockholders’ equity	13,295,712	13,172,291
Total Liabilities and Stockholders’ Equity	$ 129,415,025	$ 128,572,750

XML

Consolidated Statements of Financial Condition (Parentheticals) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Securities available-for-sale, amortized cost	$ 2,121,777	$ 1,154,418
Securities held-to-maturity, fair value	21,706,150	24,566,903
Allowance for loan losses	$ 1,099,232	$ 1,185,178
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	945,425	945,425
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Common stock, shares outstanding (in shares)	945,425	945,425
Preferred stock, shares issued (in shares)

XML

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Income
Loans, including fees	$ 3,600,437	$ 3,645,438
Investment securities	660,372	718,807
Interest-bearing deposits	9,314	3,842
Total interest income	4,270,123	4,368,087
Interest Expense
Interest-bearing checking accounts	39,947	40,215
Passbook and money market accounts	107,676	104,164
Certificates of deposits	396,524	431,709
Advances from Federal Home Loan Bank	25,606	23,381
Total interest expense	569,753	599,469
Net interest income	3,700,370	3,768,618
Provision (recapture) for loan losses	(70,700)	390,000
Net interest income after provision (recapture) for loan losses	3,771,070	3,378,618
Non-Interest Income
Service charges	124,697	137,440
Increase in cash surrender value of bank-owned life insurance	5,000	4,055
Rental income	19,488	28,662
Other	15,416	16,093
Total non-interest income	164,601	186,250
Non-Interest Expense
Salaries and employee benefits	1,659,019	1,628,823
Advertising	23,988	24,241
Office supplies, telephone and postage	110,250	107,985
Loan expense	74,112	160,085
Occupancy expense	622,254	614,899
Federal insurance premiums	170,570	170,785
Real estate owned – impairment losses	246,879	642,080
Data processing expenses	237,737	223,337
ATM expenses	34,975	35,939
Bank charges and fees	85,603	69,781
Insurance and surety bond premium	87,582	99,529
Dues and subscriptions	45,655	29,511
Professional fees	285,465	349,038
Real estate owned expenses, net	176,740	152,503
Net loss on sale of real estate owned	3,519	82,062
Other	141,991	132,322
Total non-interest expense	4,006,339	4,522,920
(Loss) Before Income Tax Benefit	(70,668)	(958,052)
Income tax (benefit)	(52,598)	(325,220)
Net (Loss)	$ (18,070)	$ (632,832)
(Loss) per share
Basic (in dollars per share)	$ (0.02)	$ (0.70)
Diluted (in dollars per share)	$ (0.02)	$ (0.70)
Basic (in shares)	906,720	903,201
Diluted (in shares)	906,720	903,201

XML

Consolidated Statements of Comprehensive (Loss) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net (loss)	$ (18,070)	$ (632,832)
Other comprehensive income (loss), net of tax:
Postretirement benefit plan adjustment, net of deferred taxes (benefit) of ($26,708) and ($75,238) in 2016 and 2015, respectively	40,063	(112,857)
Unrealized holding gains (loss), net of deferred tax (benefits) of $22,088 and $74,589 in 2016 and 2015, respectively	$ 33,131	111,884
Reclassification adjustment for net (gains) losses on available-for-sale securities included in net (loss) (net of tax (benefit) of $ -0- and ($315) in 2016 and 2015, respectively)		(472)
Total other comprehensive (loss) income	$ 73,194	(1,445)
Comprehensive (Loss) Income	$ 55,124	$ (634,277)

XML

Consolidated Statements of Comprehensive (Loss) (Parentheticals) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Postretirement benefit plan adjustment, deferred tax (benefit)	$ (26,708)	$ (75,238)
Unrealized gain (loss) on investment securities, deferred tax (benefit)	22,088	74,589
Reclassification adjustment for net (gains) losses on available-for-sale securities included in net (loss), tax expense (benefit)	$ 0	$ (315)

XML

Consolidated Statements of Changes In Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Employee Stock Ownership Plan [Member]	AOCI Attributable to Parent [Member]	Total
BALANCES (in shares) at Mar. 31, 2014	945,425
BALANCES at Mar. 31, 2014	$ 9,454	$ 9,956,750	$ 4,569,378	$ (592,168)	$ (191,411)	$ 13,752,003
Net (loss)			(632,832)			(632,832)
Other comprehensive (loss), net of tax					(1,445)	(1,445)
3518.69 shares of common stock transferred to ESOP for services		(21,202)		45,551		24,349
Stock option expense		30,216				30,216
BALANCES (in shares) at Mar. 31, 2015	945,425
BALANCES at Mar. 31, 2015	$ 9,454	9,965,764	3,936,546	(546,617)	(192,856)	13,172,291
Net (loss)			(18,070)			(18,070)
Other comprehensive (loss), net of tax					73,194	73,194
3518.69 shares of common stock transferred to ESOP for services		(12,475)		45,552		33,077
Stock option expense		35,220				35,220
BALANCES (in shares) at Mar. 31, 2016	945,425
BALANCES at Mar. 31, 2016	$ 9,454	$ 9,988,509	$ 3,918,476	$ (501,065)	$ (119,662)	$ 13,295,712

XML

Consolidated Statements of Changes In Stockholders' Equity (Parentheticals) - shares	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Unearned Employee Stock Ownership Plan [Member]
Shares of ESOP (in shares)	3,518.69	3,518.69

XML

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities
Net (loss)	$ (18,070)	$ (632,832)
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Compensation expense of ESOP	12,475	21,202
Deferred income tax (benefit)	32,275	(520,932)
Depreciation	264,356	257,153
Amortization of premiums and accretion of discounts on securities, net	(1,087)	4,956
Income from bank owned life insurance	(5,000)	(4,055)
Real estate owned – impairment losses	246,879	642,080
Net loss on sale of real estate owned	3,519	82,062
Provision (recapture) for loan losses	(70,700)	390,000
Share based compensation expense	35,220	30,216
(Increase) decrease in:
Accrued interest receivable	67,702	25,444
Other assets	(103,184)	632
Increase (decrease) in:
Accrued interest payable	67	(793)
Other liabilities	(60,419)	191,932
Net cash provided by operating activities	404,033	$ 487,065
Cash Flows from Investing Activities
Purchases of securities available-for-sale	(1,500,000)
Proceeds from sale of securities available-for-sale	32,641	$ 31,541
Proceeds from maturities of securities available-for-sale	500,000	1,000,000
Purchases of securities held-to-maturity	(12,473,250)	(3,000,000)
Proceeds from maturities and principal repayments of securities held-to-maturity	15,507,137	5,353,613
Proceeds from redemption (purchases) of Federal Home Loan Bank stock	52,500	(35,000)
Principal collected on loans	11,825,655	10,405,771
Loans originated	(14,138,862)	(9,735,588)
Proceeds from sale of real estate owned	751,952	1,125,062
Purchases of premises and equipment	(64,072)	(79,616)
Net cash provided by investing activities	493,701	5,065,783
Cash Flows from Financing Activities
Net increase (decrease) in deposits	1,666,528	(426,580)
Net increase (decrease) in advance payments by borrowers for taxes and insurance	112,678	(8,459)
Advances from Federal Home Loan Bank	1,000,000	4,000,000
Payments on advances from Federal Home Loan Bank	(2,000,000)	(2,000,000)
Net cash provided by financing activities	779,206	1,564,961
Net Increase in Cash and Cash Equivalents	1,676,940	7,117,809
Cash and Cash Equivalents, Beginning of Year	10,450,448	3,332,639
Cash and Cash Equivalents, End of Year	12,127,388	10,450,448
Supplemental Disclosures of Cash Flow Information
Cash paid during the year for interest	569,686	600,262
Cash paid during the year for income taxes	2,500	2,750
Supplemental Disclosure of Noncash Items
Loans transferred to real estate owned	$ 332,495	$ 2,332,862

XML

Note 1 - Nature of Operations

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Nature of Operations [Text Block]

1.     NATURE OF OPERATIONS

On October 16, 2013, Delanco Bancorp, Inc., a New Jersey corporation (the “Company”), became the holding company for 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.

Delanco Bancorp, Inc. (the “Company”) is a federally-chartered subsidiary holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, Delanco Federal Savings Bank (the “Bank”), and its wholly-owned subsidiaries, Delanco Financial Services Corporation, an inactive subsidiary, DFSB Properties, LLC, and DFSB Properties II, LLC, real estate companies that hold other real estate acquired in foreclosure. The Bank provides a variety of financial services to individual and business customers located primarily in Southern New Jersey and Southeastern Pennsylvania. The Bank’s primary source of revenue is from single-family residential, commercial and multi-family real estate loans. The Bank is subject to regulation by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

Subsequent Events

The Company has evaluated events and transactions occurring subsequent to March 31, 2016, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through June 29, 2016, the date these consolidated financial statements were issued.

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Note 2 - Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of

Presentation and Consolidation

The accounting and reporting policies of the Company conform with accounting principles and predominant practices within the banking industry. The consolidated financial statements of the Company include the accounts of Delanco Federal Savings Bank and its subsidiaries. Intercompany balances and transactions are eliminated in consolidation.     

Use of Estimates

in the Preparation of Financial Statements

The preparation of financial statements in conformity with 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates and assumptions that are particularly susceptible to significant changes relate to the determination of the allowance for losses on loans, the fair value of financial instruments, the valuation of foreclosed real estate and the valuation of deferred tax assets. In connection with the determination of the estimated losses on loans and foreclosed real estate, management obtains independent appraisals for significant properties.

A majority of the Bank’s loan portfolio consists of single-family residential, commercial and multi-family real estate loans in Southern New Jersey and Southeastern Pennsylvania. Accordingly, the ultimate collectibility of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate are susceptible to changes in local market conditions.

While management uses available information to recognize losses on loans and foreclosed real estate, further reductions in the carrying amounts of loans and foreclosed assets may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and foreclosed real estate. Such agencies may require the Bank to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans and foreclosed real estate may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.

Investment

and Mortgage-Backed

Securities

Securities Held-to-Maturity

: Securities that management has the positive intent and ability to hold to maturity are reported at cost, adjusted for amortization of premiums and accretion of discounts that are recognized in interest income using methods approximating the interest method over the period to maturity. Mortgage-backed securities represent participating interests in pools of long-term first mortgage loans originated and serviced by issuers of the securities. Mortgage-backed securities are carried at unpaid principal balances, adjusted for unamortized premiums and unearned discounts. Premiums and discounts are amortized using methods approximating the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments.

Securities Available-for-Sale

: Available-for-sale securities consist of investment securities not classified as trading securities nor as held-to-maturity securities. Unrealized holding gains and losses, net of tax, on available-for-sale securities are included in other comprehensive income. Realized gains (losses) on available-for-sale securities are included in other income (expense) and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Gains and losses on the sale of available-for-sale securities are determined using the specific-identification method. The amortization of premiums and the accretion of discounts are recognized in interest income using methods approximating the interest method over the period of maturity.

Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other than temporary impairment losses, management considers (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.

Loans

Receivable

The Bank grants mortgage, commercial, consumer and lines of credit loans to customers. A substantial portion of the loan portfolio is represented by mortgage, commercial and multi-family real estate loans in Southern New Jersey and Southeastern Pennsylvania. The ability of the Bank’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in these areas.

Loans are stated at unpaid principal balances, less the allowance for loan losses and net deferred loan fees and unearned discounts.

Loan origination and commitment fees, as well as certain direct origination costs, are deferred and amortized as a yield adjustment over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status.

The recognition of income on a loan is discontinued and previously accrued interest is reversed, when interest or principal payments become ninety (90) days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Interest is subsequently recognized only as received until the loan is returned to accrual status. A loan is restored to accrual status when all interest and principal payments are current and the borrower has demonstrated to management the ability to make payments of principal and interest as scheduled. The Bank’s practice is to charge off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, the depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons.

Allowance For Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

Loan Impairment

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reason for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.

Troubled Debt Restructurings

In situations where, for economic or legal reasons related to a customer’s financial difficulties, the Bank grants a concession for other than an insignificant period of time to the customer that the Bank would not otherwise consider, the related loan is classified as a troubled debt restructuring (TDR). The Bank strives to identify customers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where the Bank grants the customer new terms that provide for a reduction of either interest or principal, the Bank measures any impairment on the restructuring as previously noted for impaired loans.

Bank-Owned Life Insurance

The Bank owns a life insurance policy on the life of a retired member of the Board of Directors. The cash surrender value of the policy is recorded as an asset of the bank and changes in this value are reflected in non-interest income. Death benefit proceeds in excess of the policy’s cash surrender value will be recognized as income upon receipt. There are no policy loans offset against the cash surrender value or restrictions on the use of the proceeds.

Premises and Equipment

Land is carried at cost. Other premises and equipment are recorded at cost and are depreciated on the straight-line method. Charges for maintenance and repairs are expensed as incurred. Depreciation and amortization are provided over the estimated useful lives of the respective assets.

Real Estate Owned

Real estate owned is comprised of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Real estate owned is recorded at the lower of the carrying value of the loan or the fair value of the property, net of estimated selling costs. Costs relating to the development or improvement of the properties are capitalized while expenses related to the operation and maintenance of properties are recorded as an expense as incurred. Gains or losses upon dispositions are reflected in earnings as realized. The Company had $1,763,628 and $2,433,483 in real estate owned at March 31, 2016 and 2015, respectively. The Company recorded losses of $3,519 and $82,062 on sale of real estate owned for the years ended March 31, 2016 and 2015, respectively.

Comprehensive Income

The Company presents in the consolidated statement of comprehensive income those amounts arising from transactions and other events which currently are excluded from the statements of operations and are recorded directly to stockholders’ equity. For the years ended March 31, 2016 and 2015, the only components of comprehensive income were net (loss), unrealized holding (loss) gains, net of income tax (benefit) expense, on available for sale securities and reclassifications related to realized gains on sale of securities recognized in earnings, net of tax and postretirement benefit plan adjustments, net of tax. Reclassifications are made to avoid double counting in comprehensive income items which are displayed as part of net income for the period.

Income Taxes

Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to tax net operating loss carryforwards and differences between the basis of available-for-sale securities, allowance for loan losses, estimated losses on real estate owned, accumulated depreciation, and accrued employee benefits for financial and income tax reporting.

The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part be beyond the Company’s control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes could change in the near term.

Segment Information

Delanco Bancorp, Inc. has one reportable segment, “Community Banking”. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit.

Statements of Cash Flows

The Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other banks with original maturities of less than 90 days to be cash equivalents for purposes of the statements of cash flows.

Advertising Costs

Advertising costs are expensed as incurred. Advertising expenses totaled $23,988 and $24,241 for the years ended March 31, 2016 and 2015, respectively.

Employee Stock Ownership Plan (“ESOP”)

The Company maintains an employee stock ownership plan as (“ESOP”) for substantially all of its full-time employees. The ESOP purchased 64,081 shares of the Company’s common stock for an aggregate cost of approximately $640,810 in fiscal 2008. In October 2013, the Company completed a “second step” conversion and as a result, the original 64,081 shares purchased by the ESOP were converted to 36,596 shares of the new Bancorp. In addition, the ESOP purchased an additional 23,644 shares of the Company’s common stock in October 2013 for an aggregated cost of approximately $189,152. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. Shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to equity as additional paid-in capital. As of March 31, 2016, the Company had allocated a total of 21,535 shares from the suspense account to participants. For the years ended March 31, 2016 and 2015, the Company recognized $33,076 and $24,349, respectively in salaries and employee benefits related to the ESOP. At March 31, 2016, 60,240 shares were held in the ESOP.

Stock Based Compensation

The Company accounts for stock-based compensation issued to employees, and where appropriate, non-employees, at fair value. Under fair value provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate vesting period using the straight-line method. The amount of stock-based compensation recognized at any date must at least equal the portion of the grant date fair value of the award that is vested at that date and as a result it may be necessary to recognize the expense using a ratable method. Determining the

fair value of stock-based awards at the date of grant requires judgment, including estimating the expected term of the stock options and the expected volatility of the Company’s stock. In addition, judgment is required in estimating the amount of stock-based awards that are expected to be forfeited. If actual results differ significantly from these estimates or different key assumptions were used, it could have a material effect on the Company’s consolidated financial statements.

Federal Home Loan Bank Stock

FHLB Stock, which represents the required investment in the common stock of a correspondent bank, is carried at cost.

Earnings Per Share

Basic earnings per share is calculated on the basis of net income divided by the weighted average number of shares outstanding. Diluted earnings per share includes dilutive potential shares as computed under the treasury stock method using average common stock prices. Diluted earnings per share is calculated on the basis of the weighted average number of shares outstanding plus the weighted average number of additional dilutive shares.

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Note 3 - Recent Accounting Pronouncements

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

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

3.     RECENT ACCOUNTING PRONOUNCEMENTS

Below is a discussion of recent accounting standards that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future.

In January 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”. The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09

, Revenue from Contracts with Customers (a new revenue recognition standard).

 The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. This ASU is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-14, 

Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40).

  The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met:  (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed.  Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor.  The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-15, 

Presentation of Financial Statements -Going Concern (Subtopic 205-40).

  The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  The amendments in this Update are first effective for the annual period ending after December 15, 2015, and for annual periods and interim periods within such annual periods thereafter. Early application is permitted.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-17, 

Business Combinations (Topic 805):

 Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity.  An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This ASU is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01

, Income Statement –Extraordinary and Unusual Items,

as part of its initiative to reduce complexity in accounting standards.  This Update eliminates from GAAP the concept of extraordinary items.  The amendments in this Update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In February 2015, the FASB issued ASU 2015-02, 

Consolidation (Topic 810)

. The amendments in this Update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.  The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015.  For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, and for interim periods within fiscal years beginning after December 15, 2017.  This ASU is not expected to have a significant impact on the Company’s financial statements.

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Note 4 - Restrictions on Cash and Due from Banks

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

4. RESTRICTIONS ON CASH AND DUE FROM BANKS

The Company is required to maintain reserve funds in vault cash or on deposit with the Federal Reserve Bank. The Company’s vault cash satisfied the required reserve at March 31, 2016 and 2015.

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Note 5 - Investment Securities

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

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

5. INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities held-to-maturity and available-for-sale are as follows:

	Available-for-Sale
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal National Mortgage Association	$	500,000	$		$	(2,753	)	$	497,247
Certificates of Deposit		1,500,000		30,854					1,530,854
Mutual Fund Shares		121,777		2,104		(1,889	)		121,992
Total	$	2,121,777	$	32,958	$	( 4,642	)	$	2,150,093

	Available-for-Sale
	March 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	500,000	$		$	( 10,117	)	$	489,883
Federal National Mortgage Association		500,000				( 17,442	)		482,558
Mutual Fund Shares		154,418		656					155,074
Total	$	1,154,418	$	656	$	( 27,559	)	$	1,127,515

	Held-to-Maturity
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	5,802,109	$	27,488	$	( 3,680	)	$	5,825,917
Federal Farm Credit Bonds		9,437,611		21,157		( 1,087	)		9,457,681
Federal Home Loan Mortgage Corporation Bonds		732,000		425					732,425
Federal National Mortgage Association		4,000,000		17,253					4,017,253
Municipal Bond		736,250				( 1,513	)		734,737
		20,707,970		66,323		( 6,280	)		20,768,013
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		322,014		25,607		( 7,728	)		339,893
Federal National Mortgage Association		397,541		41,321		( 3,418	)		435,444
Government National Mortgage Corporation		157,013		6,926		( 1,139	)		162,800
		876,568		73,854		( 12,285	)		938,137
Total	$	21,584,538	$	140,177	$	( 18,565	)	$	21,706,150

	Held-to-Maturity
	March 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	7,569,330	$	25,212	$	( 61,886	)	$	7,532,656
Federal Farm Credit Bonds		6,436,634		245		( 55,041	)		6,381,838
Federal Home Loan Mortgage Corporation Bonds		1,997,490		1,869		( 20,411	)		1,978,948
Federal National Mortgage Association		6,998,982		15,848		( 46,455	)		6,968,375
Municipal Bond		470,250		1,653					471,903
		23,472,686		44,827		( 183,793	)		23,333,720
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		453,850		32,959					486,809
Federal National Mortgage Association		494,759		49,073					543,832
Government National Mortgage Corporation		196,043		6,499					202,542
		1,144,652		88,531					1,233,183
Total	$	24,617,338	$	133,358	$	( 183,793	)	$	24,566,903

The following is a summary of the amortized cost and fair value of the Company’s investment securities held-to-maturity and available-for-sale by contractual maturity as of March 31, 2016 and 2015.

	March 31, 2016
	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Amounts maturing in:
One year or less	$		$		$	736,250	$	734,737
After one year through five years		1,000,000		1,024,569		945,000		945,091
After five years through ten years		1,000,000		1,003,532		8,379,581		8,384,588
After ten years						11,523,707		11,641,734
Mutual fund shares		121,777		121,992
	$	2,121,777	$	2,150,093	$	21,584,538	$	21,706,150

	March 31, 2015
	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Amounts maturing in:
One year or less	$		$		$	970,771	$	980,256
After one year through five years						1,000,639		999,302
After five years through ten years						8,910,976		8,838,675
After ten years		1,000,000		972,441		13,734,952		13,748,670
Mutual fund shares		154,418		155,074
	$	1,154,418	$	1,127,515	$	24,617,338	$	24,566,903

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 March 31, 2016 and 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as 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
March 31, 2016	Value		Losses			Value		Losses			Value		Losses
Federal Home Loan Bank Bonds	$		$			$	496,320	$	( 3,680	)	$	496,320	$	( 3,680	)
Federal Farm Credit Bonds							498,913		( 1,087	)		498,913		( 1,087	)
Federal Home Loan Mortgage Corporation							102,967		( 7,728	)		102,967		( 7,728	)
Federal National Mortgage Association							497,247		( 2,753	)		497,247		( 2,753	)
Municipal Bonds		734,737		( 1,513	)							734,737		( 1,513	)
Mutual fund shares							64,031		( 1,889	)		64,031		( 1,889	)
		734,737		( 1,513	)		1,659,478		( 17,137	)		2,394,215		( 18,650	)
Mortgage-Backed Securities:
Federal National Mortgage Association							154,705		( 3,418	)		154,705		( 3,418	)
Government National Mortgage Association							21,613		( 1,139	)		21,613		( 1,139	)
							176,318		( 4,557	)		176,318		( 4,557	)
Total	$	734,737	$	( 1,513	)	$	1,835,796	$	( 21,694	)	$	2,570,533	$	( 23,207	)

	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, 2015	Value		Losses			Value		Losses			Value		Losses
Federal Home Loan Bank Bonds	$	2,456,736	$	( 20,116	)	$	2,450,731	$	( 51,887	)	$	4,907,467	$	(72,003	)
Federal Farm Credit Bonds		2,478,672		( 13,569	)		2,903,103		( 41,472	)		5,381,775		(55,041	)
Federal Home Loan Mortgage Corporation		987,910		( 12,090	)		491,679		( 8,321	)		1,479,589		(20,411	)
Federal National Mortgage Association		1,492,801		( 6,857	)		2,442,960		( 57,040	)		3,935,761		(63,897	)
Mutual fund shares
		7,416,119		( 52,632	)		8,288,473		( 158,720	)		15,704,592		(211,352	)
Mortgage-Backed Securities:
Government National Mortgage Association
Total	$	7,416,119	$	( 52,632	)	$	8,288,473	$	( 158,720	)	$	15,704,592	$	( 211,352	)

In estimating other-than-temporary impairment losses, the Company considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near term prospects of the issuer, (iii) that the Company does not intend to sell these securities and (iv) it is more likely than not that the Company will not be required to sell before a period of time sufficient to allow for any anticipated recovery in fair value. The temporary impaired securities consisted of nine debt securities with an aggregated book value of $2,570,533 at March 31, 2016. These unrealized losses relate principally to market changes in interest rates for similar types of securities.

The Company has pledged investment securities with a carrying amount of approximately $2,515,000 and $1,016,000 at March 31, 2016 and 2015, respectively, to the New Jersey Commissioner of Banking and Insurance under the provisions of the Government Unit Deposit Protection Act that enables the Bank to act as a public depository.

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Note 6 - Loans

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

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

6. 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 and 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.

Multi-family and 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. Multi-family and 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.

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.

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.

Loans at March 31, 2016 and 2015 are summarized as follows:

	March 31,
	2016			2015
Residential (one to four family) real estate	$	62,250,645		$	62,788,782
Multi-family and commercial real estate		9,569,328			7,979,569
Commercial		2,290,405			1,913,466
Home equity		8,527,420			8,005,627
Consumer		682,193			677,964
Construction		54,268			56,027
Total loans		83,374,259			81,421,435
Net deferred loan origination fees		( 77,218	)		( 89,860	)
Allowance for loan losses		( 1,099,232	)		( 1,185,178	)
		( 1,176,450	)		( 1,275,038	)
Loans, net	$	82,197,809		$	80,146,397

The Bank is subject to a loans-to-one borrower limitation of 15% of capital funds. At March 31, 2016, the loans-to-one-borrower limitation was $1.8 million; this excluded an additional 10% of adjusted capital funds or approximately $million, which may be loaned if collateralized by readily marketable securities. At March 31, 2016 and 2015, 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 following table represents loans by credit quality indicator at March 31, 2016:

			Special				Non-
			Mention		Classified		Performing
	Pass		Loans		Loans		Loans		Total
Residential real estate	$	59,385,578	$		$		$	2,865,067	$	62,250,645
Multi-family and commercial real estate		7,962,420		288,784				1,318,124		9,569,328
Commercial		2,074,394		53,942		140,751		21,318		2,290,405
Home equity		8,416,499						110,921		8,527,420
Consumer		682,193								682,193
Construction								54,268		54,268
	$	78,521,084	$	342,726	$	140,751	$	4,369,698	$	83,374,259

The following table represents past-due loans as of March 31, 2016:

	30-59			60-89			Greater Than
	Days			Days			90 Days			Total						Total Loan
	Past Due			Past Due			Past Due			Past Due			Current			Balances
Residential real estate	$	577,002		$	224,111		$	1,967,082		$	2,768,195		$	59,482,450		$	62,250,645
Multi-family and commercial real estate					288,784			663,068			951,852			8,617,476			9,569,328
Commercial		339,654			21,318						360,972			1,929,433			2,290,405
Home equity		50,000						110,471			160,471			8,366,949			8,527,420
Consumer														682,193			682,193
Construction														54,268			54,268
Total Loans	$	966,656		$	534,213		$	2,740,621		$	4,241,490		$	79,132,769		$	83,374,259
Percentage of Total Loans		1.16	%		0.64	%		3.29	%		5.09	%		94.91	%		100.0	%

The following table represents loans by credit quality indicator at March 31, 2015:

			Special				Non-
			Mention		Classified		Performing
	Pass		Loans		Loans		Loans		Total
Residential real estate	$	60,728,444	$		$		$	2,060,338	$	62,788,782
Multi-family and commercial real estate		5,308,521		713,658		294,250		1,663,140		7,979,569
Commercial		1,685,655		23,568		204,243				1,913,466
Home equity		7,994,767						10,860		8,005,627
Consumer		606,577						71,387		677,964
Construction								56,027		56,027
	$	76,323,964	$	737,226	$	498,493	$	3,861,752	$	81,421,435

The following table represents past-due loans as of March 31, 2015:

	30-59			60-89			Greater Than
	Days			Days			90 Days			Total						Total Loan
	Past Due			Past Due			Past Due			Past Due			Current			Balances
Residential real estate	$	495,322		$	1,324,777		$	1,364,792		$	3,184,891		$	59,603,891		$	62,788,782
Multi-family and commercial real estate					116,763			890,200			1,006,963			6,972,606			7,979,569
Commercial		98,280									98,280			1,815,186			1,913,466
Home equity		34,371			88,625			10,860			133,856			7,871,771			8,005,627
Consumer		29,967						71,387			101,354			576,610			677,964
Construction														56,027			56,027
Total Loans	$	657,940		$	1,530,165		$	2,337,239		$	4,525,344		$	76,896,091		$	81,421,435
Percentage of Total Loans		0.81	%		1.88	%		2.87	%		5.56	%		94.44	%		100.0	%

The Bank determines whether a restructuring of debt constitutes a troubled debt restructuring (“TDR”) in accordance with guidance under FASB ASC Topic 310 Receivables. The Company considers a loan a TDR when the borrower is experiencing financial difficulty and the Bank grants a concession that they would not otherwise consider but for the borrower’s financial difficulties. A TDR includes a modification of debt terms or assets received in satisfaction of the debt (including a foreclosure or a deed in lieu of foreclosure) or a combination of types. The Bank evaluates selective criteria to determine if a borrower is experiencing financial difficulty, including the ability of the borrower to obtain funds from sources other than the Bank at market rates. The Bank considers all TDR loans as impaired loans and, generally, they are put on non-accrual status. The Bank will not consider the loan a TDR if the loan modification was made for customer retention purposes. The Bank’s policy for returning a loan to accruing status requires the preparation of a well-documented credit evaluation which includes the following:

● A review of the borrower’s current financial condition in which the borrower must demonstrate sufficient cash flow to support the repayment of all principal and interest including any amounts previously charged-off;

● An updated appraisal or home valuation which must demonstrate sufficient collateral value to support the debt;

● Sustained performance based on the restructured terms for at least six consecutive months;

● Approval by senior management.

The Bank had eleven loans totaling $2,351,531 and eleven loans totaling $2,237,988 whose terms were modified in a manner that met the criteria for a TDR as of March 31, 2016 and 2015, respectively. Restructured loans deemed to be TDRs typically are the result of extensions of the loan maturity date or a reduction of the interest rate to a rate that is below market, a combination of rate and maturity extension, or by other means including covenant modifications, forbearance and other concessions. However, the Company generally only restructures loans by modifying the payment structure to require payments of interest only or interest and escrows for a period of time or by reducing the actual interest rate to a current market rate, or a combination of both. In one instance, the Company restructured a loan by repaying loans with another lender who had a priority lien position and restructuring the whole indebtedness into an amortizing loan at market rates while taking additional collateral. As of March 31, 2016, three of the TDRs were commercial real estate loans with an aggregate outstanding balance of $676,293, one residential construction loan with an aggregate outstanding balance of $54,268, and seven were residential real estate loans with an aggregate outstanding balance of $1,620,970. The Company had one accruing TDR in the amount of $172,933 as of March 31, 2016 that was modified during the year. As of March 31, 2015, three of the TDRs were commercial real estate loans with an aggregate outstanding balance of $653,944, one residential construction loan with an aggregate outstanding balance of $56,027, and seven were residential real estate loans with an aggregate outstanding balance of $1,528,017. The Company had one accruing TDR in the amount of $110,205 as of March 31, 2015 that was modified during the year. All TDRs are considered impaired loans. If the Bank determines that the value of a modified loan is less than the recorded impairment in the loan, impairment is recognized through a charge to the allowance for loan losses at the time of determination.

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 March 31, 2016, the Bank had eighteen loan relationships totaling

$2,761,939 in non-accrual loans as compared to seventeen relationships totaling $2,337,239 at March 31, 2015. At March 31, 2016, the Bank had no impaired loan relationships in which impaired loans had a related allowance for credit losses. During the quarter ended December 31, 2011 and in connection with the Bank’s change in regulators from the Office of Thrift Supervision to the Office of the Comptroller of the Currency, the Bank revised its allowance for loan loss reserve methodology based on regulatory guidance to the effect that the use of specific reserves was no longer permitted. As of March 31, 2016 and 2015, the Bank no longer maintained specific valuation allowances against impaired loans. Any valuation adjustments on impaired loans are now charged against the loan balances at the time of valuation. The average balance of impaired loans totaled $4,965,658 for 2016 as compared to $4,707,275 for 2015, and interest income recorded on impaired loans during the year ended March 31, 2016 totaled $200,787 as compared to $201,449 for March 31, 2015.

The following table represents data on impaired loans at March 31, 2016 and 2015:

	March 31,
	2016		2015
Impaired loans for which a valuation allowance has been provided	$		$
Impaired loans for which no valuation allowance has been provided		4,965,658		4,521,712
Total loans determined to be impaired	$	4,965,658	$	4,521,712
Allowance for loans losses related to impaired loans	$		$
Average recorded investment in impaired loans	$	5,054,436	$	4,707,275
Cash basis interest income recognized on impaired loans	$	200,787	$	201,449

The following table presents impaired loans with no valuation allowance by portfolio class at March 31, 2016:

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,964,318	$	2,920,343	$	$	2,912,541	$	70,879
Multi-family and commercial real estate		1,938,180		1,935,352			1,992,465		117,115
Commercial		55,695		55,695			34,346		9,207
Home equity							39,066		775
Consumer							15,864
Construction		59,105		54,268			60,154		2,811
Subtotal	$	5,017,298	$	4,965,658	$	$	5,054,436	$	200,787

Total Impaired Loans by Portfolio Class at March 31,

2016

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Total impaired loans:
Residential real estate	$	2,964,318	$	2,920,343	$	$	2,912,541	$	70,879
Multi-family and commercial real estate		1,938,180		1,935,352			1,992,465		117,115
Commercial		55,695		55,695			34,346		9,207
Home equity							39,066 775
Consumer							15,864
Construction		59,105		54,268			60,154		2,811
Total	$	5,017,298	$	4,965,658	$	$	5,054,436	$	200,787

The following table presents impaired loans with no valuation allowance by portfolio class at March 31, 2015:

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,600,317	$	2,535,471	$	$	2,742,623	$	65,065
Multi-family and commercial real estate		1,860,348		1,813,440			1,727,671		129,426
Commercial		34,526		34,526			30,991		1,314
Home equity		10,860		10,860			129,542		176
Consumer		71,388		71,388			18,185		2,169
Construction		56,027		56,027			58,263		3,299
Subtotal	$	4,633,466	$	4,521,712	$	$	4,707,275	$	201,449

Total Impaired Loans by Portfolio Class at March 31,

2015

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Total impaired loans:
Residential real estate	$	2,600,317	$	2,535,471	$	$	2,742,623	$	65,065
Multi-family and commercial real estate		1,860,348		1,813,440			1,727,671		129,426
Commercial		34,526		34,526			30,991		1,314
Home equity		10,860		10,860			129,542		176
Consumer		71,388		71,388			18,185		2,169
Construction		56,027		56,027			58,263		3,299
Total	$	4,633,466	$	4,521,712	$	$	4,707,275	$	201,449

The following table presents non-performing assets as of March 31, 2016 and 2015.

	March 31,
	2016		2015
Non-accrual loans:
Residential real estate	$	1,333,383	$	880,061
Multi-family and commercial real estate		552,545		661,456
Commercial		21,318
Home equity		110,921		10,860
Consumer				71,387
Construction
Total non-accrual loans		2,018,167		1,623,764

	March 31,
	2016			2015
Accruing loans past due 90 days or more:
Residential real estate	$			$
Multi-family and commercial real estate
Commercial
Consumer
Construction
Total accruing loans past due 90 days or more
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	744,222		$	484,731
Multi-family and commercial real estate					228,744
Commercial
Home equity
Consumer
Construction
Total troubled debt restructurings in non- accrual status		744,222			713,475
Performing under modified terms:
Residential real estate	$	787,462		$	695,546
Multi-family and commercial real estate		765,579			772,940
Commercial
Home equity
Consumer
Construction		54,268			56,027
Total troubled debt restructurings performing under modified terms		1,607,309			1,524,513
Total troubled debt restructurings		2,351,531			2,237,988
Total non-performing loans		4,369,698			3,861,752
Real estate owned		1,763,627			2,433,483
Total non-performing assets	$	6,133,325		$	6,295,235
Non-performing loans as a percentage of loans		5.24	%		4.74	%
Non-performing assets as a percentage of loans and real estate owned		7.20	%		7.51	%
Non-performing assets as a percentage of total assets		4.74	%		4.90	%

The following table presents troubled debt restructurings that occurred during the years ended March 31, 2016 and 2015 and loans modified as troubled debt restructurings with the previous 12 months and for which there was a payment default during the period.

	2016						2015
			Outstanding Recorded						Outstanding Recorded
			Investment						Investment
	Number of		Pre-		Post-		Number of		Pre-		Post-
	Contracts		Modification		Modification		Contracts		Modification		Modification
Troubled debt restructurings:
Residential real estate		1	$	163,767	$	172,933		1	$	95,511	$	111,000

	Number of		Recorded	Number of		Recorded
	Contracts		Investment	Contracts		Investment
Troubled debt restructurings that subsequently defaulted:
Residential real estate		-0-	$		-0-	$

The following table presents the changes in real estate owned (REO), net of valuation allowance, for the years ended March 31, 2016 and 2015.

	March 31,
	2016			2015
Balance, beginning of year	$	2,433,483		$	1,949,825
Additions from loan foreclosures		332,495			2,332,861
Additions from capitalized costs
Dispositions of REO		( 751,952	)		( 1,591,941	)
(Loss) on sale of REO		( 3,519	)		( 82,062	)
Valuation adjustments during the year		( 246,879	)		( 175,200	)
Balance, end of year	$	1,763,628		$	2,433,483

The following table presents the changes in fair value adjustments to REO for the years ended March 31, 2016 and 2015.

	March 31,
	2016			2015
Balance, beginning of year	$	850,865		$	675,665
Valuation adjustments added during the year		246,879			642,080
Valuation adjustments on disposed properties during the year		( 870,513	)		( 466,880	)
Balance, end of year	$	227,231		$	850,865

The following table sets forth with respect to the Bank’s allowance for losses on loans:

	March 31,
	2016			2015
Balance at beginning of year	$	1,185,178		$	1,448,298
Provision:
Residential real estate		( 132,262	)		177,490
Multi-family and commercial real estate		9,520			175,662
Commercial		( 11,855	)		44,689
Home equity loans		10,741			21,478
Consumer		53,156			( 25,522	)
Construction		-0-			( 3,797	)
Total Provision (Recapture)	$	( 70,700	)	$	390,000
Charge-Offs:
Residential real estate		39,730			142,279
Multi-family and commercial real estate		16,871			597,896
Commercial					19,325
Home equity		10,860
Consumer		71,388			4,054
Recoveries		( 123,603	)		( 110,434	)
Total Net Charge-Offs		15,246			653,120
Balance at end of year	$	1,099,232		$	1,185,178
Year-end loans outstanding	$	83,374,259		$	81,421,435
Average loans outstanding	$	83,665,599		$	83,252,940
Allowance as a percentage of year-end loans		1.32	%		1.46	%
Net charge-offs as a percentage of average loans		0.02	%		0.78	%

Additional details for changes in the allowance for loan by loan portfolio as of March 31, 2016 are as follows:

	Residential Real Estate			Multi-Family and Commercial Real Estate			Commercial			Home Equity			Consumer			Construction		Total
Allowance for loan losses:
Beginning balance	$	702,105		$	288,893		$	86,300		$	86,847		$	21,033		$	-0-	$	1,185,178
Loan charge-offs		(39,730	)		(16,871	)					(10,860	)		(71,388	)				(138,849	)
Recoveries		38,221			57,480			5,543						22,359					123,603
Provision for loan losses		(132,262	)		9,520			(11,855	)		10,741			53,156					(70,700	)
Ending balance	$	568,334		$	339,022		$	79,988		$	86,728		$	25,160		$		$	1,099,232
Ending balance:
individually evaluated for impairment	$			$			$			$			$			$		$
Ending balance:
collectively evaluated for impairment	$	568,334		$	339,022		$	79,988		$	86,728		$	25,160		$		$	1,099,232
Loans:
Ending balance	$	62,250,645		$	9,569,328		$	2,290,405		$	8,527,420		$	682,193		$	54,268	$	83,374,259
Ending balance:
individually evaluated for impairment	$	2,448,138		$	1,637,617		$	132,657		$	517,079		$			$	54,268	$	4,789,759
Ending balance:
collectively evaluated for impairment	$	59,802,507		$	7,931,711		$	2,157,748		$	8,010,341		$	682,193		$		$	78,584,500

Additional details for changes in the allowance for loan by loan portfolio as of March 31, 2015 are as follows:

	Residential Real Estate			Multi-Family and Commercial Real Estate			Commercial			Home Equity		Consumer			Construction			Total
Allowance for loan losses:
Beginning balance	$	656,156		$	634,968		$	58,399		$	65,369	$	29,609		$	3,797		$	1,448,298
Loan charge-offs		(142,279	)		(597,896	)		(19,325	)				(4,054	)					(763,554	)
Recoveries		10,738			76,159			2,537					21,000						110,434
Provision for loan losses		177,490			175,662			44,689			21,478		(25,522	)		(3,797	)		390,000
Ending balance	$	702,105		$	288,893		$	86,300		$	86,847	$	21,033		$	-0-		$	1,185,178
Ending balance:
individually evaluated for impairment	$			$			$			$		$			$			$
Ending balance:
collectively evaluated for impairment	$	702,105		$	288,893		$	86,300		$	86,847	$	21,033		$			$	1,185,178
Loans:
Ending balance	$	62,788,782		$	7,979,569		$	1,913,466		$	8,005,627	$	677,964		$	56,027		$	81,421,435
Ending balance:
individually evaluated for impairment	$	2,548,574		$	1,813,440		$	34,526		$	10,860	$			$			$	4,407,400
Ending balance:
collectively evaluated for impairment	$	60,240,208		$	6,166,129		$	1,878,940		$	7,994,767	$	677,964		$	56,027		$	77,014,035

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. 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. 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. At March 31, 2016, the Bank maintained an allowance for loan loss ratio of 1.32% to year end loans outstanding. On a linked basis, non-performing assets have decreased by $161,910 over their stated levels at March 31, 2015 representing a non-performing asset to total asset ratio of 4.74% at March 31, 2016 as compared to a non-performing asset to total asset ratio of 4.90% at March 31, 2015.     

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.

For the year ending March 31, 2016, the Bank experienced one charge-off relating to one loan relationship totaling $71,388 and partial charge-offs relating to three loan relationships totaling $67,461 as compared to two charge-offs relating to two loan relationships totaling $22,694 and partial charge-offs relating to seventeen loan relationships totaling $740,860 for the year ended March 31, 2015.

In the ordinary course of business, the Bank has and expects to continue to have transactions, including borrowings, with its officers and directors. In the opinion of management, transactions with directors were on substantially the same terms, including interest rates and collateral, as those prevailing at the time of comparable transactions with other persons and did not involve more than a normal risk of collectability or present any other unfavorable features to the Bank. Officers of the Company are entitled to 1% loan discount, under a Bank-wide employee discount program, from those prevailing at the time of comparable transactions with other persons and did not involve more than a normal risk of collectability or present any other unfavorable features to the Bank. Loans to such borrowers are summarized as follows:

	March 31,
	2016			2015
Balance, beginning of year	$	786,325		$	776,516
Payments		(56,887	)		(30,691	)
Borrower no longer associated with Bank		(40,712	)
Borrowings		1,000,000			40,500
Balance, end of year	$	1,688,726		$	786,325

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Note 7 - Loan Servicing

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Transfers and Servicing of Financial Assets [Text Block]

7.     LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying statement of financial condition. The unpaid principal balances of these loans at March 31, 2016 and 2015 are summarized as follows:

	March 31,
	2016		2015
Mortgage Loan Servicing Portfolio:
Mortgage Partnership
Finance FHLB New York	$	125,666	$	130,080

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Note 8 - Accrued Interest Receivable

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Other Assets Disclosure [Text Block]

8.     ACCRUED INTEREST RECEIVABLE

Accrued interest receivable at March 31, 2016 and 2015 consists of the following:

	March 31,
	2016		2015
Loans	$	249,245	$	261,564
Investment securities		116,358		165,257
Mortgage backed securities		3,535		10,019
	$	369,138	$	436,840

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Note 9 - Premises and Equipment

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

9.    PREMISES AND EQUIPMENT

Premises and equipment at March 31, 2016 and 2015 consists of the following:

	March 31,
	2016			2015
Land	$	1,451,203		$	1,451,203
Buildings		6,864,728			6,848,967
Furniture, fixtures and equipment		2,054,765			2,006,454
		10,370,696			10,306,624
Accumulated depreciation		( 4,080,649	)		( 3,816,293	)
	$	6,290,047		$	6,490,331

Depreciation expense amounted to $264,356 and $257,153 for the years ended March 31, 2016 and 2015, respectively.

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Note 10 - Federal Home Loan Bank Stock

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Investment Holdings [Text Block]

10. FEDERAL HOME LOAN BANK STOCK

The Company is a member of the Federal Home Loan Bank System. As a member, the Company maintains an investment in the capital stock of the Federal Home Loan Bank of New York in an amount not less than 1% of its outstanding home loans or 1/20 of its outstanding notes payable, if any, to the Federal Home Loan Bank of New York, whichever is greater, as calculated December 31 of each year.

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Note 11 - Deposits

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Deposit Liabilities Disclosures [Text Block]

11.   DEPOSITS

Deposit account balances at March 31, 2016 and 2015 are summarized as follows:

			March 31, 2016
					Weighted Average			Percent of
			Amount		Interest Rate			Portfolio
Non interest bearing accounts			$	12,054,146			%		10.78
Interest bearing checking accounts				23,027,846		0.19			20.59
Passbook savings accounts				17,724,072		0.10			15.84
Money Market accounts				19,813,982		0.49			17.71
Club accounts				143,488		0.10			0.13
				72,763,534					65.05
Certificates of Deposits:
0.10%	to	0.99%		21,695,607		0.59			19.39
1.00%	to	1.99%		14,773,019		1.29			13.21
2.00%	to	2.99%		2,632,487		2.23			2.35
				39,101,113					34.95
			$	111,864,647					100.00	%

			March 31, 2015
					Weighted Average			Percent of
			Amount		Interest Rate			Portfolio
Non interest bearing accounts			$	10,733,275			%		9.74
Interest bearing checking accounts				20,816,278		0.20			18.89
Passbook savings accounts				15,415,613		0.10			13.99
Money Market accounts				19,780,377		0.44			17.95
Club accounts				133,586		0.10			0.12
				66,879,129					60.69
Certificates of Deposits:
0.10%	to	0.99%		26,142,514		0.56			23.72
1.00%	to	1.99%		12,866,189		1.29			11.68
2.00%	to	2.99%		4,310,287		2.31			3.91
				43,318,990					39.31
			$	110,198,119					100.00	%

Certificates of deposit and other time deposits issued in denominations that meets or exceeds the FDIC insurance limit of $250,000 totaled $2,485,471 and $1,884,049 at March 31, 2016 and 2015, respectively, and are included in interest-bearing deposits in the balance sheet.

Scheduled maturities of certificates of deposits at March 31, 2016 and 2015 are as follows:

	March 31,
	2016		2015
2016	$		$	25,527,548
2017		23,090,517		9,336,093
2018		8,181,234		3,584,198
2019		3,374,490		2,252,245
2020		2,358,507		2,618,906
2021		2,096,365
	$	39,101,113	$	43,318,990

The Company held deposits from officers and directors of approximately $755,000 and $957,000 at March 31, 2016 and 2015, respectively. These transactions were on the same terms as those prevailing at the time of comparable transactions with other persons.

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Note 12 - Line of Credit from Atlantic Community Bankers Bank

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

12. LINE OF CREDIT FROM ATLANTIC COMMUNITY BANKERS BANK

The Company maintains a line of credit with Atlantic Community Bankers Bank at a rate to be determined by the lender when funds are borrowed. At March 31, 2016 and 2015, the outstanding balance on the $1 million unsecured line of credit was $ -0-.

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Note 13 - Advances from Federal Home Loan Bank

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

13. ADVANCES FROM FEDERAL HOME LOAN BANK

Advances from the Federal Home Loan Bank of New York as of March 31, 2016 and 2015 are as follows:

Maturity	Interest
Date	Rate			2016		2015
October 19, 2016		0.45	%	$		$	1,000,000
April 18, 2016		0.74	%		2,000,000		2,000,000
October 17, 2016		0.81	%		1,000,000		1,000,000
				$	3,000,000	$	4,000,000

Specific repos and other securities, with balances approximating $16,800,000 and $18,088,000 at March 31, 2016 and 2015, respectively, were pledged to the FHLB of New York as collateral. As of March 31, 2016, the Company had a borrowing capacity in a combination of term advances and overnight borrowings of up to $9,586,016 at the FHLB of New York.

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Note 14 - Income Taxes

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14.   INCOME TAXES

The Company is subject to federal and New Jersey state income tax.

The Company and subsidiary file a consolidated federal income tax return. The Company’s consolidated (credit) for income taxes for the years ended March 31, 2016 and 2015 consists of the following:

	Years Ended
	March 31,
	2016			2015
Income Tax Expense (benefit)
Current federal tax expense
Federal	$	-		$	-
State		3,000			3,000
Deferred tax (benefit)
Federal		(85,569	)		(241,825	)
State		29,971			(86,395	)
Total	$	(52,598	)	$	(325,220	)

The consolidated provision for income taxes for the years ended March 31, 2016 and 2015 differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis:

	Years Ended
	March 31,
	2016			2015
Expected federal tax provision (benefit) at 34% rate	$	(24,027	)	$	(325,738	)
Municipal bond interest		(469	)		(899	)
Increase in cash surrender value of life insurance		(1,700	)		(1,972	)
State income tax		(26,402	)		(64,021	)
Valuation allowance for state operating loss carryforward					67,410
Total income tax (benefit)		(52,598	)		(325,220	)
Effective tax rate (benefit)		(74.4%	)		(33.9%	)

A summary of deferred tax assets and liabilities as of March 31, 2016 and 2015 are as follows:

	March 31,
	2016		2015
Deferred tax assets:
Accrued pension costs	$	9,500	$	7,200
Allowance for loan losses		438,935		722,503
Directors’ benefit plans		131,500		122,000
Employee stock option		32,200		18,200
FASB 158 – unrecognized transition costs		91,100		118,000
Federal tax loss carryforward		1,050,900		774,000
State tax loss carryforward		372,800		391,000
Unrealized losses on securities available-for-sale				11,000
Non accrual interest		15,000		16,000
Total deferred tax assets	$	2,141,935	$	2,179,903
Valuation allowance		-		(67,410	)

	March 31,
	2016			2015
Deferred tax liabilities:
Accumulated depreciation	$	(64,000	)	$	(52,260	)
Unrealized gains on securities available-for-sale		(11,400	)
Total deferred tax liabilities		(75,400	)		(52,260	)
NET DEFERRED TAX ASSETS	$	2,066,535		$	2,060,233

The Company accounts for uncertainties in income taxes in accordance with FASB ASC Topic 740 “Accounting for Uncertainty in Income Taxes”. The Company has determined that there are no significant uncertain tax positions requiring recognition in its financial statements.

In the event the Company is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense. As of March 2016, the Internal Revenue Service had concluded an audit of the Company's

 tax returns for the years ended December 31, 2013 and 2014 and no adverse findings were noted. The federal income tax returns for taxable years through December 31, 2014 have been closed for purposes of examination by the Internal Revenue Service. Tax year 2015 remains subject to examination by federal taxing authorities. Tax years 2012 through 2015 remain subject to examination by New Jersey and Pennsylvania taxing authorities.

The Company has considered future market growth, forecasted earnings, future taxable income, and prudent, feasible and permissible tax planning strategies in determining the realizability of deferred tax assets. If the Company were to determine that it would not be able to realize a portion of its net deferred tax assets in the future, an adjustment to the net deferred tax assets would be charged to earnings in the period such determination was made.

As of March 31, 2016, the Company had approximately $3,400,000 federal net operating loss carryforwards, which result in a deferred tax asset of $1,050,900, expiring from 2029 through 2035.

As of March 31, 2016, the Company had approximately $4,140,000 of state net operating loss carryforwards, which result in a deferred tax asset of $372,800, expiring from 2029 through 2035.

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Note 15 - Employee Benefits

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

15. EMPLOYEE BENEFITS

Cash/Deferred Profit Sharing Plan

The Company maintains a cash/deferred profit sharing plan covering all full time employees with one year of service and who are at least twenty-one years of age. Participants enter the Plan on the 1st of January or 1st of July subsequent to meeting the above requirements.

The Company may contribute up to 10% of the annual compensation of each eligible employee. The Company’s contribution to the plan was $-0- for the years ended March 31, 2016 and 2015.

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Note 16 - Board of Directors' Retirement Plan

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

16. BOARD OF DIRECTORS’ RETIREMENT PLAN

The Company established a Defined Benefit Retirement Plan for the Bank’s Board of Directors on January 1, 2002. This plan provides a monthly retirement benefit equal to 4% of the board fees payable as of their retirement date, multiplied by their completed years of service, up to a maximum of 80% of the final fee amount. Directors must complete at least ten years of service in order to receive a retirement benefit under the plan. Director retirement benefits are payable in equal monthly installments during the director’s lifetime, unless the director elects to receive a life annuity with the first 129 months guaranteed or a life annuity with either 50% or 100% (joint and survivor benefits) continuing for the spouse’s lifetime after the Director dies. Under these other options, the retirement benefit is reduced to account for the value of the potential additional payments.

The estimated past service liability that will be amortized from accumulated other comprehensive income into net periodic pension costs over the next fiscal year is zero.

Net pension expense was $59,196 and $30,648 for years ended March 31, 2016 and 2015, respectively. The components of net pension cost are as follows:

	Years Ended
	March 31,
	2016		2015
Service cost	$	18,012	$	7,080
Interest cost		23,276		18,924
Amortization of gain		17,908		4,644
Net amortization and deferral		-0-		-0-
Net periodic pension cost	$	59,196	$	30,648

     The following table presents a reconciliation of the funded status of the defined benefit pension plan at March 31, 2016 and 2015:          

	March 31,
	2016		2015
Accumulated benefit obligation	$	540,070	$	558,403
Projected benefit obligation		556,522		599,324
Fair value of plan assets		-0-		-0-
Unfunded projected benefit obligation		556,522		599,324

     The following table presents a reconciliation of benefit obligations and plan assets:          

	March 31,
	2016			2015
Change in Benefit Obligation
Projected benefit obligation at beginning of year	$	599,324		$	415,803
Service cost		18,012			7,080
Interest cost		23,276			18,924
Actuarial (gain) loss		(48,863	)		192,737
Benefits paid		(35,227	)		(35,220	)
Benefit obligation at end of year	$	556,522		$	599,324

	March 31,
	2016			2015
Change in Plan Assets
Fair value of Plan assets at beginning of year	$	-0-		$	-0-
Actual return on Plan assets		-0-			-0-
Employer contributions		35,227			35,220
Benefits paid		(35,227	)		(35,220	)
Fair value of Plan assets at end of year	$	-0-		$	-0-

Actuarial assumptions used in determining pension amounts are as follows:

	Years Ended
	March 31,
	2016			2015
Discount rate for periodic pension cost		4.00	%		4.75	%
Discount rate for benefit obligation		4.25	%		4.00	%
Rate of increase in compensation levels and social security wage base		2.00	%		2.00	%
Expected long-term rate of return on plan assets		N/A			N/A

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Note 17 - Employee Stock Ownership Plan (ESOP)

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Employee Stock Ownership Plan ESOP [Text Block]

17. EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)

The Company has an Employee Stock Ownership Plan (“ESOP”) for the benefit of employees who meet the eligibility requirements as defined in the ESOP. The ESOP purchased 64,081 shares of common stock in the offering completed in March 2007 using proceeds of a loan from the former mid-tier holding company. The Company made annual payments of principal and interest over a term of 20 years at a rate of 8.25% to the Company. On October 16, 2013, the remaining unallocated shares were converted at a conversion rate of .5711 to 1 of the new Company shares. The remaining loan balance was refinanced over a term of 14 years at a rate of 3.25%. The ESOP has a second loan from the Company to fund the purchase of 23,644 additional shares in connection with the second step conversion completed on October 16, 2013 under which the Company makes annual payments of principal and interest over a term of 14 years at a rate of 3.25% to the Company. The loans are secured by the shares of the stock purchased.

The following table presents the components of the ESOP shares purchased.

	Years Ended
	March 31,
	2016		2015
Shares released for allocation		21,534		18,016
Unearned shares		38,706		42,224
Total ESOP shares		60,240		60,240

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Note 18 - Stock Based Compensation

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

18.   STOCK BASED COMPENSATION

On May 19, 2008, the Board of Directors adopted and the stockholders approved on August 18, 2008, the Delanco Bancorp, Inc. 2008 Equity Incentive Plan. The 2008 Equity Incentive Plan authorized the granting of up to 80,101 stock options and 32,040 shares of restricted stock. All of the Company’s employees, officers, and directors are eligible to participate in the 2008 Plan.

On October 16, 2013, options to purchase a total of 20,000 shares were granted at a price of $8.00 per share. The option will expire on the tenth anniversary of the date of the grant and will become exercisable in equal 20% installments on each anniversary of the grant date.

The following table is a summary of the status of the shares under the 2008 Equity Incentive Plan as of March 31, 2016 and changes during the year ended March 31, 2016.

	Year Ended March 31, 2016
			Weighted Average
	Number of		Grant Date
	Shares		Fair Value
Restricted at the beginning of the period		16,000	$	8.69
Granted
Vested		4,000
Forfeited
Restricted at the end of the period		12,000		8.69

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Note 19 - Earnings Per Share

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

19.   EARNINGS PER SHARE

The following table sets forth the composition of the weighted average shares (denominator) used in the basic and dilutive earnings per share computation for the years ended March 31, 2016 and 2015.

	2016			2015
Net (Loss)		(18,070	)	$	(632,832	)
Weighted average shares outstanding		945,425			945,425
Adjusted average unearned ESOP shares		(38,705	)		(42,224	)
Weighted average share outstanding - basic		906,720			903,201
Effect of dilutive common stock equivalents		-			-
Adjusted weighted average shares outstanding - dilutive		906,720			903,201
Basic loss per share	$	(0.02	)	$	(0.70	)
Diluted loss per share	$	(0.02	)	$	(0.70	)

The effect of the 20,000 stock options outstanding as of March 31, 2016 is antidilutive and therefore not presented in the above table.

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Note 20 - Fair Value Measurements

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Fair Value, Measurement Inputs, Disclosure [Text Block]

20. FAIR VALUE MEASUREMENTS

FASB ASC 825, Financial Instruments, permits entities to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The election to use the fair value option is available when an entity first recognizes a financial asset or financial liability or upon entering into a commitment. Subsequent changes must be recorded in earnings.

FASB ASC 820, Fair Value Measurement clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Under this guidance, fair value measurements are not adjusted for transaction costs. This guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under this guidance are described below.

Level 1  Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2

Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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

The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. As required by this guidance, the Company does not adjust the quoted price for such instruments.

The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid entities, state, municipal and provincial obligations, and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy.

Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or market value. Market value is measured based on the value of the collateral securing these loans and is classified at a Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of real estate collateral is determined based on appraisal by qualified licensed appraisers hired by the Company. The value of business equipment, inventory and accounts receivable collateral is based on the net book value on the business’ financial statements and, if necessary, discounted based on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified previously.

The following tables set forth the Company’s assets and liabilities that were accounted for or disclosed at fair value on a recurring basis as of March 31, 2016 and 2015.

				Significant
				Other		Significant
	Carrying			Observable		Unobservable
	Value		Quoted Prices	Inputs		Inputs
	(Fair Value)		(Level 1)	(Level 2)		(Level 3)
March 31, 2016
Securities available for sale:
Certificates of Deposit	$	1,530,854	$	$	1,530,854	$
Federal National Mortgage Association		497,247			497,247
Mutual Fund Shares		121,992			121,992
Totals	$	2,150,093	$	$	2,150,093	$

Those assets as of March 31, 2015 which are to be measured at fair value on a recurring basis are as follows:

				Significant
				Other		Significant
	Carrying			Observable		Unobservable
	Value		Quoted Prices	Inputs		Inputs
	(Fair Value)		(Level 1)	(Level 2)		(Level 3)
March 31, 2015
Securities available for sale:
Federal Home Loan Bank Bonds	$	489,883	$	$	489,883	$
Federal National Mortgage Association		482,558			482,558
Mutual Fund Shares		155,074			155,074
Totals	$	1,127,515	$	$	1,127,515	$

Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The Company measures impaired loans and real estate owned at fair value on a non-recurring basis.

Impaired Loans

The Company considers loans to be impaired when it becomes more likely than not that the Company will be unable to collect all amounts due in accordance with the contractual terms of the loan agreements. Collateral dependent impaired loans are based on the fair value of the collateral which is based on appraisals and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, age of the comparables included in the appraisal, and known changes in the market and in the collateral. These adjustments are based upon unobservable inputs, and therefore, the fair value measurement would be categorized as a Level 3 measurement. These loans are reviewed for impairment and written down to their net realizable value by charges against the allowance for loan losses.

Real Estate Owned

Once an asset is determined to be uncollectible, the underlying collateral is generally repossessed and reclassified to foreclosed real estate and repossessed assets. These repossessed assets are carried at the lower of cost or fair value of the collateral, based on independent appraisals, less cost to sell and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including age of the appraisal, age of the comparables included in the appraisal, and known changes in the market and in the collateral. Thus the evaluations are based upon unobservable inputs, and therefore, the fair value measurement would be categorized as a Level 3 measurement.

The following tables set forth the Company’s assets and liabilities that were accounted for and or disclosed at fair value on a nonrecurring basis as of March 31, 2016 and 2015:

					Significant
				Other	Significant
	Carrying			Observable	Unobservable
	Value		Quoted Prices	Inputs	Inputs
	(Fair Value)		(Level 1)	(Level 2)	(Level 3)
March 31, 2016
Impaired loans	$	4,965,658	$	$	$	4,965,658
Real estate owned		1,763,628				1,763,628
Total	$	6,729,286	$	$		6,729,286

				Significant
				Other	Significant
	Carrying			Observable	Unobservable
	Value		Quoted Prices	Inputs	Inputs
	(Fair Value)		(Level 1)	(Level 2)	(Level 3)
March 31, 2015
Impaired loans	$	4,521,712	$	$	$	4,521,712
Real estate owned		2,433,483				2,433,483
Total	$	6,955,195	$	$	$	6,955,195

The following table provides information describing the valuation processes used to determine nonrecurring fair value measurement categorized within Level 3 of the fair value hierarchy as of March 31, 2016 and 2015:

	March 31, 2016
	Fair		Valuation
	Value		Technique	Unobservable Input	Range
Impaired loans	$	4,965,658	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount
Real estate owned	$	1,763,628	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount

	March 31, 2016
	Fair		Valuation
	Value		Technique	Unobservable Input	Range
Impaired loans	$	4,521,712	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount
Real estate owned	$	2,433,483	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount

The fair value of financial instruments amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

In accordance with the disclosure requirements of FASB ASC 825, Financial Instruments, the estimated fair values of the Company’s financial instruments are as follows:

					Fair Value Measurements
							Significant		Significant
							Other		Unobserv-
					Quoted		Observable		able
	Carrying				Prices		Inputs		Inputs
March 31,2016	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	12,127,388	$	12,127,388	$	12,127,388	$		$
Investment securities available for sale		2,121,777		2,150,093				2,150,093
Investment and mortgage-backed securities held to maturity		21,584,538		84,744,000				21,639,610
Loans receivable, net		82,197,809								84,744,000
Accrued interest receivable		369,138		369,138		369,138
Federal Home Loan Bank stock		253,800		253,800		253,800
Bank owned life insurance		174,252		174,252		174,252
Financial Liabilities:
Deposits – non-interest bearing		12,054,146		12,054,146		12,054,146
Deposits – interest bearing		99,810,501						99,899,854
Advances from Federal Home Loan Bank		3,000,000		3,000,000		3,000,000
Accrued interest payable		5,830		5,830		5,830
Advances from borrowers for taxes and insurance		433,034		433,034		433,034

					Fair Value Measurements
							Significant		Significant
							Other		Unobserv-
					Quoted		Observable		able
	Carrying				Prices		Inputs		Inputs
March 31, 2016	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	10,450,448	$	10,450,448	$	10,450,448	$		$
Investment securities available for sale		1,154,418		1,127,515				1,127,515
Investment and mortgage-backed securities held to maturity		24,617,338		24,566,903				24,566,903
Loans receivable, net		80,146,397		79,675,000						79,675,000
Accrued interest receivable		436,840		436,840		436,840
Federal Home Loan Bank stock		306,300		306,300		306,300
Bank owned life insurance		169,252		169,252		169,252
Financial Liabilities:
Deposits – non-interest bearing		10,733,275		10,733,275		10,733,275
Deposits – interest bearing		99,464,844		99,411,000				99,411,000
Advances from Federal Home Loan Bank		4,000,000		4,000,000		4,000,000
Accrued interest payable		5,763		5,763		5,763
Advances from borrowers for taxes and insurance		320,356		320,356		320,356

Cash and Cash Equivalents – For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value.

Investments and Mortgage-Backed Securities – The fair value of investment securities and mortgage-backed securities is based on quoted market prices, dealer quotes, and prices obtained from independent pricing services.

Loans Receivable – The fair value of loans is estimated based on present value using the current market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The carrying value that fair value is compared to is net of the allowance for loan losses and other associated premiums and discounts. Due to the significant judgment involved in evaluating credit quality, loans are classified within level 3 of the fair value hierarchy.

Accrued Interest Receivable – For accrued interest receivable, the carrying amount is a reasonable estimate of fair value.

Federal Home Loan Bank (FHLB) Stock – Although FHLB stock is an equity interest in an FHLB, it is carried at cost because it does not have a readily determinable fair value as its ownership is restricted and it lacks a market. The estimated fair value approximates the carrying amount.

Bank Owned Life Insurance – The fair value of bank owned life insurance is based on the cash surrender value obtained from an independent advisor that are derivable from observable market inputs.

Deposits – The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, and NOW and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Advances from the Federal Home Loan Bank – The carrying amounts of advances from the Federal Home Loan Bank approximate the fair value.

Accrued Interest Payable – For accrued interest payable, the carrying amount is a reasonable estimate of fair value.

Advances from Borrowers for Taxes and Insurance – For advances from borrowers for taxes and insurance, the carrying amount is a reasonable estimate of fair value.

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Note 21 - Commitments and Contingencies

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

21.   COMMITMENTS AND CONTINGENCIES

Financial Instruments

In the normal course of business, there are outstanding commitments, contingent liabilities and other financial instruments that are not reflected in the accompanying financial statements. These include commitments to extend credit and standby letters of credit, which are some of the instruments used by the Company to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet.

The Company’s exposure to credit loss in the event of nonperformance by the other parties to the financial instrument for these commitments is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. These commitments as of March 31, 2016 and 2015 were as follows:

	2016		2015
	Contractual		Contractual
	Amount		Amount
Financial instruments whose notional or contract amounts represent credit risk:
Construction loan commitments	$		$	225,000
Unused commercial lines of credit		1,212,000		1,425,000
Unused home equity lines of credit		4,969,000		4,450,000
Personal lines of credit		635		2,500
1-4 family residential mortgage commitments		1,232,000		1,683,000
Commercial real estate mortgage commitments				1,000,000
Standby letters of credit		55,000		55,000
Total	$	7,468,635	$	8,840,500

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Certain commitments have fixed expiration dates, or other termination clauses, and may require payment of a fee. Many of the commitments are expected to expire without being drawn upon; accordingly, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral or other security obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include deposits held in financial institutions; U.S. Treasury securities; other marketable securities; accounts receivable; inventory; property and equipment; personal residences; income-producing commercial properties and land under development. Personal guarantees are also obtained to provide added security for certain commitments.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to guarantee the installation of real property improvements and similar transactions. The credit risk involved in issued letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral and obtains personal guarantees supporting those commitments for which collateral or other security is deemed necessary.

The Company has not been required to perform on any financial guarantees during the past two years. The Company has not incurred any losses on its commitments in either 2016 or 2015.

Litigation

The Company is subject to claims and lawsuits which arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the financial position of the Company.

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Note 22 - Related Party Transactions

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

22. RELATED PARTY TRANSACTIONS

The Company obtained legal services and insurance products from other entities which were affiliated with Directors of the Bank. The aggregate payment for these products and services amounted to $186,985 and $183,345, for the years ended March 31, 2016 and 2015, respectively.

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Note 23 - Regulatory Capital

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

23.   REGULATORY CAPITAL

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines involving quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and Tier 1 Capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of March 31, 2016 and 2015, that the Bank meets all capital adequacy requirements to which it was subject.

As of March 31, 2016, the Bank exceeded all regulatory capital requirements necessary to be considered a “well capitalized” bank, but was classified as “adequately capitalized” because it was subject to a written agreement with the OCC.

The Bank’s actual and required capital amounts and ratios as of March 31, 2016 and 2015 are as follows:

										Minimum to be Well
										Capitalized Under Prompt
						For Capital				Corrective Action
	Actual					Adequacy Purposes				Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
As of March 31, 2016:
Total Capital (to Risk-Weighted Assets)	$	11,859,000		17.26	%	≥	$5,498,000	≥	8.0%	≥	$6,873,000	≥	10.0%
Tier 1 Capital (to Risk-Weighted Assets)	$	10,988,000		15.99	%	≥	$4,123,500	≥	6.0%	≥	$5,498,000	≥	8.0%
Tier 1 Common (to Risk-Weighted Assets)	$	10,988,000		15.99	%	≥	$3,092,625	≥	4.5%	≥	$4,467,125	≥	6.5%
Tier 1 Capital (to Average Assets)	$	10,988,000		8.67	%	≥	$5,068,000	≥	4.0%	≥	$6,335,000	≥	5.0%

										Minimum to be Well
										Capitalized Under Prompt
						For Capital				Corrective Action
	Actual					Adequacy Purposes				Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
As of March 31, 2015:
Total Capital (to Risk-Weighted Assets)	$	11,839,000		16.97	%	≥	$5,615,000	≥	8.0%	≥	$7,019,000	≥	10.0%
Tier 1 Capital (to Risk-Weighted Assets)	$	10,958,000		15.61	%	≥	$4,211,520	≥	6.0%	≥	$5,615,000	≥	8.0%
Tier 1 Common (to Risk-Weighted Assets)	$	10,958,000		15.61	%	≥	$3,158,640	≥	4.5%	≥	$4,562,000	≥	6.5%
Tier 1 Capital (to Total Assets)	$	10,958,000		8.66	%	≥	$5,059,000	≥	4.0%	≥	$6,324,000	≥	5.0%

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Note 24 - Regulatory Matters

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

24.   REGULATORY MATTERS

Federal regulations place certain restrictions on dividends paid by the Bank to the Company. The total amount of dividends that may be paid at any date is generally limited to the earnings of the Bank year to date plus retained earnings for the prior two fiscal years, net of any prior capital distributions. In addition, dividends paid by the Bank to the Company would be prohibited if the distribution would cause the Bank’s capital to be reduced below the applicable minimum capital requirements.

The Bank is party to 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 issued by 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.

The Agreement will remain in effect until terminated, modified, or suspended in writing by the OCC.

The written agreement does not require the Bank to maintain any specific minimum regulatory capital ratios. However, by letter dated January 2, 2013, the OCC established higher individual minimum capital requirements for the Bank. Specifically, the Bank must maintain Tier 1 capital at least equal to 8% of adjusted total assets, Tier 1 capital at least equal to 12% of risk-weighted assets, and total capital at least equal to 13% of risk-weighted assets. At March 31, 2016, the Bank’s Tier 1 leverage capital ratio, Tier 1 risk-based capital ratio and total risk based-capital ratio were 8.67%, 15.99% and 17.26%, respectively.

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Note 25 - Changes in Accumulated Other Comprehensive Income (Loss) Balances

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

25. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BALANCES

The following presents the changes in accumulated other comprehensive income (loss) by component net of tax:

	Unrealized
	Gains (Losses)			Defined			Accumulated
	On Available			Benefit			Other
	For Sale			Pension			Comprehensive
	Securities			Plans			Income (Loss)
Balance as of April 1, 2015	$	(16,142	)	$	(176,714	)	$	(192,856	)
Other comprehensive income before reclassification		33,131			40,063			73,194
Total other comprehensive income		33,131			40,063			73,194
Balance as of March 31, 2016	$	16,989		$	(136,651	)	$	(119,662	)

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Note 26 - Financial Information of Parent Company

12 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

26. FINANCIAL INFORMATION OF PARENT COMPANY

Delanco

Bancorp, Inc.

(Parent Company Only)

	For the Years Ended
	March 31,
	2016		2015
Statement of Financial Condition
Assets:
Cash and cash equivalents	$	480,129	$	460,783
Investment in Bank		9,536,490		9,592,799
Deferred income taxes		32,219		18,130
Total assets	$	10,048,838	$	10,071,712
Stockholders’ equity:
Total stockholders’ equity		10,048,838		10,071,712
Total liabilities and stockholders’ equity	$	10,048,838	$	10,071,712

	For the Years Ended
	March 31,
	2016			2015
Income Statement
Interest on ESOP loan	$	20,556		$	21,938
Other interest income		456			706
Total income	$	21,012		$	22,644
Management fee		45,000			45,000
Compensation expense		35,220			30,216
Total expense		80,220			75,216
(Loss) before income tax benefit and equity in undistributed net loss of subsidiary		(59,208	)		(52,572	)
Equity in undistributed net income (loss) of subsidiary		27,549			(591,847	)
Income tax benefit		13,589			11,587
Net (loss)	$	(18,070	)	$	(632,832	)

		For the Years Ended
		March 31,
		2016			2015
Cash Flows
Adjustments to reconcile net loss to net cash used in operating activities:
Share based compensation expense	$	35,220		$	30,216
Operating activities:
Net (loss)		(18,070	)	$	(632,832	)
Undistributed net (income) loss of subsidiary		(27,549	)		591,847
Increase in deferred income taxes		(14,089	)		(12,087	)
Net cash (used in) operating activities		(24,488	)		(22,856	)
Investing activities:
Distribution to subsidiary					(275,000	)
Net cash (used in) investing activities					(275,000	)
Financing activities:
Proceeds from ESOP loan		43,834			42,451
Net cash provided by financing activities		43,834			42,451
Net increase (decrease) in cash and cash equivalents		19,346			(255,405	)
Cash and cash equivalents, beginning of year		460,783			716,188
Cash and cash equivalents, end of year	$	480,129		$	460,783

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Significant Accounting Policies (Policies)

12 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of

Presentation and Consolidation

The accounting and reporting policies of the Company conform with accounting principles and predominant practices within the banking industry. The consolidated financial statements of the Company include the accounts of Delanco Federal Savings Bank and its subsidiaries. Intercompany balances and transactions are eliminated in consolidation.     

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

in the Preparation of Financial Statements

The preparation of financial statements in conformity with 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates and assumptions that are particularly susceptible to significant changes relate to the determination of the allowance for losses on loans, the fair value of financial instruments, the valuation of foreclosed real estate and the valuation of deferred tax assets. In connection with the determination of the estimated losses on loans and foreclosed real estate, management obtains independent appraisals for significant properties.

A majority of the Bank’s loan portfolio consists of single-family residential, commercial and multi-family real estate loans in Southern New Jersey and Southeastern Pennsylvania. Accordingly, the ultimate collectibility of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate are susceptible to changes in local market conditions.

While management uses available information to recognize losses on loans and foreclosed real estate, further reductions in the carrying amounts of loans and foreclosed assets may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and foreclosed real estate. Such agencies may require the Bank to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans and foreclosed real estate may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.

Marketable Securities, Policy [Policy Text Block]

Investment

and Mortgage-Backed

Securities

Securities Held-to-Maturity

: Securities that management has the positive intent and ability to hold to maturity are reported at cost, adjusted for amortization of premiums and accretion of discounts that are recognized in interest income using methods approximating the interest method over the period to maturity. Mortgage-backed securities represent participating interests in pools of long-term first mortgage loans originated and serviced by issuers of the securities. Mortgage-backed securities are carried at unpaid principal balances, adjusted for unamortized premiums and unearned discounts. Premiums and discounts are amortized using methods approximating the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments.

Securities Available-for-Sale

: Available-for-sale securities consist of investment securities not classified as trading securities nor as held-to-maturity securities. Unrealized holding gains and losses, net of tax, on available-for-sale securities are included in other comprehensive income. Realized gains (losses) on available-for-sale securities are included in other income (expense) and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Gains and losses on the sale of available-for-sale securities are determined using the specific-identification method. The amortization of premiums and the accretion of discounts are recognized in interest income using methods approximating the interest method over the period of maturity.

Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other than temporary impairment losses, management considers (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.

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Loans

Receivable

The Bank grants mortgage, commercial, consumer and lines of credit loans to customers. A substantial portion of the loan portfolio is represented by mortgage, commercial and multi-family real estate loans in Southern New Jersey and Southeastern Pennsylvania. The ability of the Bank’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in these areas.

Loans are stated at unpaid principal balances, less the allowance for loan losses and net deferred loan fees and unearned discounts.

Loan origination and commitment fees, as well as certain direct origination costs, are deferred and amortized as a yield adjustment over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status.

The recognition of income on a loan is discontinued and previously accrued interest is reversed, when interest or principal payments become ninety (90) days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Interest is subsequently recognized only as received until the loan is returned to accrual status. A loan is restored to accrual status when all interest and principal payments are current and the borrower has demonstrated to management the ability to make payments of principal and interest as scheduled. The Bank’s practice is to charge off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, the depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance For Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Loan Impairment

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reason for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment.

Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block]

Troubled Debt Restructurings

In situations where, for economic or legal reasons related to a customer’s financial difficulties, the Bank grants a concession for other than an insignificant period of time to the customer that the Bank would not otherwise consider, the related loan is classified as a troubled debt restructuring (TDR). The Bank strives to identify customers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where the Bank grants the customer new terms that provide for a reduction of either interest or principal, the Bank measures any impairment on the restructuring as previously noted for impaired loans.

Bank Owed Life Insurance Policy [Policy Text Block]

Bank-Owned Life Insurance

The Bank owns a life insurance policy on the life of a retired member of the Board of Directors. The cash surrender value of the policy is recorded as an asset of the bank and changes in this value are reflected in non-interest income. Death benefit proceeds in excess of the policy’s cash surrender value will be recognized as income upon receipt. There are no policy loans offset against the cash surrender value or restrictions on the use of the proceeds.

Property, Plant and Equipment, Policy [Policy Text Block]

Premises and Equipment

Land is carried at cost. Other premises and equipment are recorded at cost and are depreciated on the straight-line method. Charges for maintenance and repairs are expensed as incurred. Depreciation and amortization are provided over the estimated useful lives of the respective assets.

Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block]

Real Estate Owned

Real estate owned is comprised of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Real estate owned is recorded at the lower of the carrying value of the loan or the fair value of the property, net of estimated selling costs. Costs relating to the development or improvement of the properties are capitalized while expenses related to the operation and maintenance of properties are recorded as an expense as incurred. Gains or losses upon dispositions are reflected in earnings as realized. The Company had $1,763,628 and $2,433,483 in real estate owned at March 31, 2016 and 2015, respectively. The Company recorded losses of $3,519 and $82,062 on sale of real estate owned for the years ended March 31, 2016 and 2015, respectively.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income

The Company presents in the consolidated statement of comprehensive income those amounts arising from transactions and other events which currently are excluded from the statements of operations and are recorded directly to stockholders’ equity. For the years ended March 31, 2016 and 2015, the only components of comprehensive income were net (loss), unrealized holding (loss) gains, net of income tax (benefit) expense, on available for sale securities and reclassifications related to realized gains on sale of securities recognized in earnings, net of tax and postretirement benefit plan adjustments, net of tax. Reclassifications are made to avoid double counting in comprehensive income items which are displayed as part of net income for the period.

Income Tax, Policy [Policy Text Block]

Income Taxes

Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to tax net operating loss carryforwards and differences between the basis of available-for-sale securities, allowance for loan losses, estimated losses on real estate owned, accumulated depreciation, and accrued employee benefits for financial and income tax reporting.

The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part be beyond the Company’s control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes could change in the near term.

Segment Reporting, Policy [Policy Text Block]

Segment Information

Delanco Bancorp, Inc. has one reportable segment, “Community Banking”. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit.

Cash and Cash Equivalents, Policy [Policy Text Block]

Statements of Cash Flows

The Company considers all cash and amounts due from depository institutions and interest-bearing deposits in other banks with original maturities of less than 90 days to be cash equivalents for purposes of the statements of cash flows.

Advertising Costs, Policy [Policy Text Block]

Advertising Costs

Advertising costs are expensed as incurred. Advertising expenses totaled $23,988 and $24,241 for the years ended March 31, 2016 and 2015, respectively.

Employee Stock Ownership Plan (ESOP), Policy [Policy Text Block]

Employee Stock Ownership Plan (“ESOP”)

The Company maintains an employee stock ownership plan as (“ESOP”) for substantially all of its full-time employees. The ESOP purchased 64,081 shares of the Company’s common stock for an aggregate cost of approximately $640,810 in fiscal 2008. In October 2013, the Company completed a “second step” conversion and as a result, the original 64,081 shares purchased by the ESOP were converted to 36,596 shares of the new Bancorp. In addition, the ESOP purchased an additional 23,644 shares of the Company’s common stock in October 2013 for an aggregated cost of approximately $189,152. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants. Shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to equity as additional paid-in capital. As of March 31, 2016, the Company had allocated a total of 21,535 shares from the suspense account to participants. For the years ended March 31, 2016 and 2015, the Company recognized $33,076 and $24,349, respectively in salaries and employee benefits related to the ESOP. At March 31, 2016, 60,240 shares were held in the ESOP.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

The Company accounts for stock-based compensation issued to employees, and where appropriate, non-employees, at fair value. Under fair value provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate vesting period using the straight-line method. The amount of stock-based compensation recognized at any date must at least equal the portion of the grant date fair value of the award that is vested at that date and as a result it may be necessary to recognize the expense using a ratable method. Determining the

fair value of stock-based awards at the date of grant requires judgment, including estimating the expected term of the stock options and the expected volatility of the Company’s stock. In addition, judgment is required in estimating the amount of stock-based awards that are expected to be forfeited. If actual results differ significantly from these estimates or different key assumptions were used, it could have a material effect on the Company’s consolidated financial statements.

Federal Home Loan Bank Stock Policy [Policy Text Block]

Federal Home Loan Bank Stock

FHLB Stock, which represents the required investment in the common stock of a correspondent bank, is carried at cost.

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

Basic earnings per share is calculated on the basis of net income divided by the weighted average number of shares outstanding. Diluted earnings per share includes dilutive potential shares as computed under the treasury stock method using average common stock prices. Diluted earnings per share is calculated on the basis of the weighted average number of shares outstanding plus the weighted average number of additional dilutive shares.

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Note 5 - Investment Securities (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Available-for-sale Securities [Table Text Block]

	Available-for-Sale
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal National Mortgage Association	$	500,000	$		$	(2,753	)	$	497,247
Certificates of Deposit		1,500,000		30,854					1,530,854
Mutual Fund Shares		121,777		2,104		(1,889	)		121,992
Total	$	2,121,777	$	32,958	$	( 4,642	)	$	2,150,093

	Available-for-Sale
	March 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	500,000	$		$	( 10,117	)	$	489,883
Federal National Mortgage Association		500,000				( 17,442	)		482,558
Mutual Fund Shares		154,418		656					155,074
Total	$	1,154,418	$	656	$	( 27,559	)	$	1,127,515

Held-to-maturity Securities [Table Text Block]

	Held-to-Maturity
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	5,802,109	$	27,488	$	( 3,680	)	$	5,825,917
Federal Farm Credit Bonds		9,437,611		21,157		( 1,087	)		9,457,681
Federal Home Loan Mortgage Corporation Bonds		732,000		425					732,425
Federal National Mortgage Association		4,000,000		17,253					4,017,253
Municipal Bond		736,250				( 1,513	)		734,737
		20,707,970		66,323		( 6,280	)		20,768,013
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		322,014		25,607		( 7,728	)		339,893
Federal National Mortgage Association		397,541		41,321		( 3,418	)		435,444
Government National Mortgage Corporation		157,013		6,926		( 1,139	)		162,800
		876,568		73,854		( 12,285	)		938,137
Total	$	21,584,538	$	140,177	$	( 18,565	)	$	21,706,150

	Held-to-Maturity
	March 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal Home Loan Bank Bonds	$	7,569,330	$	25,212	$	( 61,886	)	$	7,532,656
Federal Farm Credit Bonds		6,436,634		245		( 55,041	)		6,381,838
Federal Home Loan Mortgage Corporation Bonds		1,997,490		1,869		( 20,411	)		1,978,948
Federal National Mortgage Association		6,998,982		15,848		( 46,455	)		6,968,375
Municipal Bond		470,250		1,653					471,903
		23,472,686		44,827		( 183,793	)		23,333,720
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		453,850		32,959					486,809
Federal National Mortgage Association		494,759		49,073					543,832
Government National Mortgage Corporation		196,043		6,499					202,542
		1,144,652		88,531					1,233,183
Total	$	24,617,338	$	133,358	$	( 183,793	)	$	24,566,903

Investments Classified by Contractual Maturity Date [Table Text Block]

	March 31, 2016
	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Amounts maturing in:
One year or less	$		$		$	736,250	$	734,737
After one year through five years		1,000,000		1,024,569		945,000		945,091
After five years through ten years		1,000,000		1,003,532		8,379,581		8,384,588
After ten years						11,523,707		11,641,734
Mutual fund shares		121,777		121,992
	$	2,121,777	$	2,150,093	$	21,584,538	$	21,706,150

	March 31, 2015
	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Amounts maturing in:
One year or less	$		$		$	970,771	$	980,256
After one year through five years						1,000,639		999,302
After five years through ten years						8,910,976		8,838,675
After ten years		1,000,000		972,441		13,734,952		13,748,670
Mutual fund shares		154,418		155,074
	$	1,154,418	$	1,127,515	$	24,617,338	$	24,566,903

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
March 31, 2016	Value		Losses			Value		Losses			Value		Losses
Federal Home Loan Bank Bonds	$		$			$	496,320	$	( 3,680	)	$	496,320	$	( 3,680	)
Federal Farm Credit Bonds							498,913		( 1,087	)		498,913		( 1,087	)
Federal Home Loan Mortgage Corporation							102,967		( 7,728	)		102,967		( 7,728	)
Federal National Mortgage Association							497,247		( 2,753	)		497,247		( 2,753	)
Municipal Bonds		734,737		( 1,513	)							734,737		( 1,513	)
Mutual fund shares							64,031		( 1,889	)		64,031		( 1,889	)
		734,737		( 1,513	)		1,659,478		( 17,137	)		2,394,215		( 18,650	)
Mortgage-Backed Securities:
Federal National Mortgage Association							154,705		( 3,418	)		154,705		( 3,418	)
Government National Mortgage Association							21,613		( 1,139	)		21,613		( 1,139	)
							176,318		( 4,557	)		176,318		( 4,557	)
Total	$	734,737	$	( 1,513	)	$	1,835,796	$	( 21,694	)	$	2,570,533	$	( 23,207	)

	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, 2015	Value		Losses			Value		Losses			Value		Losses
Federal Home Loan Bank Bonds	$	2,456,736	$	( 20,116	)	$	2,450,731	$	( 51,887	)	$	4,907,467	$	(72,003	)
Federal Farm Credit Bonds		2,478,672		( 13,569	)		2,903,103		( 41,472	)		5,381,775		(55,041	)
Federal Home Loan Mortgage Corporation		987,910		( 12,090	)		491,679		( 8,321	)		1,479,589		(20,411	)
Federal National Mortgage Association		1,492,801		( 6,857	)		2,442,960		( 57,040	)		3,935,761		(63,897	)
Mutual fund shares
		7,416,119		( 52,632	)		8,288,473		( 158,720	)		15,704,592		(211,352	)
Mortgage-Backed Securities:
Government National Mortgage Association
Total	$	7,416,119	$	( 52,632	)	$	8,288,473	$	( 158,720	)	$	15,704,592	$	( 211,352	)

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Note 6 - Loans (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

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

	March 31,
	2016			2015
Residential (one to four family) real estate	$	62,250,645		$	62,788,782
Multi-family and commercial real estate		9,569,328			7,979,569
Commercial		2,290,405			1,913,466
Home equity		8,527,420			8,005,627
Consumer		682,193			677,964
Construction		54,268			56,027
Total loans		83,374,259			81,421,435
Net deferred loan origination fees		( 77,218	)		( 89,860	)
Allowance for loan losses		( 1,099,232	)		( 1,185,178	)
		( 1,176,450	)		( 1,275,038	)
Loans, net	$	82,197,809		$	80,146,397

Financing Receivable Credit Quality Indicators [Table Text Block]

			Special				Non-
			Mention		Classified		Performing
	Pass		Loans		Loans		Loans		Total
Residential real estate	$	59,385,578	$		$		$	2,865,067	$	62,250,645
Multi-family and commercial real estate		7,962,420		288,784				1,318,124		9,569,328
Commercial		2,074,394		53,942		140,751		21,318		2,290,405
Home equity		8,416,499						110,921		8,527,420
Consumer		682,193								682,193
Construction								54,268		54,268
	$	78,521,084	$	342,726	$	140,751	$	4,369,698	$	83,374,259

			Special				Non-
			Mention		Classified		Performing
	Pass		Loans		Loans		Loans		Total
Residential real estate	$	60,728,444	$		$		$	2,060,338	$	62,788,782
Multi-family and commercial real estate		5,308,521		713,658		294,250		1,663,140		7,979,569
Commercial		1,685,655		23,568		204,243				1,913,466
Home equity		7,994,767						10,860		8,005,627
Consumer		606,577						71,387		677,964
Construction								56,027		56,027
	$	76,323,964	$	737,226	$	498,493	$	3,861,752	$	81,421,435

Past Due Financing Receivables [Table Text Block]

	30-59			60-89			Greater Than
	Days			Days			90 Days			Total						Total Loan
	Past Due			Past Due			Past Due			Past Due			Current			Balances
Residential real estate	$	577,002		$	224,111		$	1,967,082		$	2,768,195		$	59,482,450		$	62,250,645
Multi-family and commercial real estate					288,784			663,068			951,852			8,617,476			9,569,328
Commercial		339,654			21,318						360,972			1,929,433			2,290,405
Home equity		50,000						110,471			160,471			8,366,949			8,527,420
Consumer														682,193			682,193
Construction														54,268			54,268
Total Loans	$	966,656		$	534,213		$	2,740,621		$	4,241,490		$	79,132,769		$	83,374,259
Percentage of Total Loans		1.16	%		0.64	%		3.29	%		5.09	%		94.91	%		100.0	%

	30-59			60-89			Greater Than
	Days			Days			90 Days			Total						Total Loan
	Past Due			Past Due			Past Due			Past Due			Current			Balances
Residential real estate	$	495,322		$	1,324,777		$	1,364,792		$	3,184,891		$	59,603,891		$	62,788,782
Multi-family and commercial real estate					116,763			890,200			1,006,963			6,972,606			7,979,569
Commercial		98,280									98,280			1,815,186			1,913,466
Home equity		34,371			88,625			10,860			133,856			7,871,771			8,005,627
Consumer		29,967						71,387			101,354			576,610			677,964
Construction														56,027			56,027
Total Loans	$	657,940		$	1,530,165		$	2,337,239		$	4,525,344		$	76,896,091		$	81,421,435
Percentage of Total Loans		0.81	%		1.88	%		2.87	%		5.56	%		94.44	%		100.0	%

Impaired Financing Receivables [Table Text Block]

	March 31,
	2016		2015
Impaired loans for which a valuation allowance has been provided	$		$
Impaired loans for which no valuation allowance has been provided		4,965,658		4,521,712
Total loans determined to be impaired	$	4,965,658	$	4,521,712
Allowance for loans losses related to impaired loans	$		$
Average recorded investment in impaired loans	$	5,054,436	$	4,707,275
Cash basis interest income recognized on impaired loans	$	200,787	$	201,449

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

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,964,318	$	2,920,343	$	$	2,912,541	$	70,879
Multi-family and commercial real estate		1,938,180		1,935,352			1,992,465		117,115
Commercial		55,695		55,695			34,346		9,207
Home equity							39,066		775
Consumer							15,864
Construction		59,105		54,268			60,154		2,811
Subtotal	$	5,017,298	$	4,965,658	$	$	5,054,436	$	200,787

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Total impaired loans:
Residential real estate	$	2,964,318	$	2,920,343	$	$	2,912,541	$	70,879
Multi-family and commercial real estate		1,938,180		1,935,352			1,992,465		117,115
Commercial		55,695		55,695			34,346		9,207
Home equity							39,066 775
Consumer							15,864
Construction		59,105		54,268			60,154		2,811
Total	$	5,017,298	$	4,965,658	$	$	5,054,436	$	200,787

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,600,317	$	2,535,471	$	$	2,742,623	$	65,065
Multi-family and commercial real estate		1,860,348		1,813,440			1,727,671		129,426
Commercial		34,526		34,526			30,991		1,314
Home equity		10,860		10,860			129,542		176
Consumer		71,388		71,388			18,185		2,169
Construction		56,027		56,027			58,263		3,299
Subtotal	$	4,633,466	$	4,521,712	$	$	4,707,275	$	201,449

								Interest
								Income
						Average		Recognized
			Unpaid		Related	Annual		While On
	Recorded		Principal		Valuation	Recorded		Impaired
	Investment		Balance		Allowance	Investment		Status
Total impaired loans:
Residential real estate	$	2,600,317	$	2,535,471	$	$	2,742,623	$	65,065
Multi-family and commercial real estate		1,860,348		1,813,440			1,727,671		129,426
Commercial		34,526		34,526			30,991		1,314
Home equity		10,860		10,860			129,542		176
Consumer		71,388		71,388			18,185		2,169
Construction		56,027		56,027			58,263		3,299
Total	$	4,633,466	$	4,521,712	$	$	4,707,275	$	201,449

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

	March 31,
	2016		2015
Non-accrual loans:
Residential real estate	$	1,333,383	$	880,061
Multi-family and commercial real estate		552,545		661,456
Commercial		21,318
Home equity		110,921		10,860
Consumer				71,387
Construction
Total non-accrual loans		2,018,167		1,623,764

	March 31,
	2016			2015
Accruing loans past due 90 days or more:
Residential real estate	$			$
Multi-family and commercial real estate
Commercial
Consumer
Construction
Total accruing loans past due 90 days or more
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	744,222		$	484,731
Multi-family and commercial real estate					228,744
Commercial
Home equity
Consumer
Construction
Total troubled debt restructurings in non- accrual status		744,222			713,475
Performing under modified terms:
Residential real estate	$	787,462		$	695,546
Multi-family and commercial real estate		765,579			772,940
Commercial
Home equity
Consumer
Construction		54,268			56,027
Total troubled debt restructurings performing under modified terms		1,607,309			1,524,513
Total troubled debt restructurings		2,351,531			2,237,988
Total non-performing loans		4,369,698			3,861,752
Real estate owned		1,763,627			2,433,483
Total non-performing assets	$	6,133,325		$	6,295,235
Non-performing loans as a percentage of loans		5.24	%		4.74	%
Non-performing assets as a percentage of loans and real estate owned		7.20	%		7.51	%
Non-performing assets as a percentage of total assets		4.74	%		4.90	%

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	2016						2015
			Outstanding Recorded						Outstanding Recorded
			Investment						Investment
	Number of		Pre-		Post-		Number of		Pre-		Post-
	Contracts		Modification		Modification		Contracts		Modification		Modification
Troubled debt restructurings:
Residential real estate		1	$	163,767	$	172,933		1	$	95,511	$	111,000

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

	Number of		Recorded	Number of		Recorded
	Contracts		Investment	Contracts		Investment
Troubled debt restructurings that subsequently defaulted:
Residential real estate		-0-	$		-0-	$

Real Estate Owned [Table Text Block]

	March 31,
	2016			2015
Balance, beginning of year	$	2,433,483		$	1,949,825
Additions from loan foreclosures		332,495			2,332,861
Additions from capitalized costs
Dispositions of REO		( 751,952	)		( 1,591,941	)
(Loss) on sale of REO		( 3,519	)		( 82,062	)
Valuation adjustments during the year		( 246,879	)		( 175,200	)
Balance, end of year	$	1,763,628		$	2,433,483

	March 31,
	2016			2015
Balance, beginning of year	$	850,865		$	675,665
Valuation adjustments added during the year		246,879			642,080
Valuation adjustments on disposed properties during the year		( 870,513	)		( 466,880	)
Balance, end of year	$	227,231		$	850,865

Schedule of Charge-offs [Table Text Block]

	March 31,
	2016			2015
Balance at beginning of year	$	1,185,178		$	1,448,298
Provision:
Residential real estate		( 132,262	)		177,490
Multi-family and commercial real estate		9,520			175,662
Commercial		( 11,855	)		44,689
Home equity loans		10,741			21,478
Consumer		53,156			( 25,522	)
Construction		-0-			( 3,797	)
Total Provision (Recapture)	$	( 70,700	)	$	390,000
Charge-Offs:
Residential real estate		39,730			142,279
Multi-family and commercial real estate		16,871			597,896
Commercial					19,325
Home equity		10,860
Consumer		71,388			4,054
Recoveries		( 123,603	)		( 110,434	)
Total Net Charge-Offs		15,246			653,120
Balance at end of year	$	1,099,232		$	1,185,178
Year-end loans outstanding	$	83,374,259		$	81,421,435
Average loans outstanding	$	83,665,599		$	83,252,940
Allowance as a percentage of year-end loans		1.32	%		1.46	%
Net charge-offs as a percentage of average loans		0.02	%		0.78	%

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

	Residential Real Estate			Multi-Family and Commercial Real Estate			Commercial			Home Equity			Consumer			Construction		Total
Allowance for loan losses:
Beginning balance	$	702,105		$	288,893		$	86,300		$	86,847		$	21,033		$	-0-	$	1,185,178
Loan charge-offs		(39,730	)		(16,871	)					(10,860	)		(71,388	)				(138,849	)
Recoveries		38,221			57,480			5,543						22,359					123,603
Provision for loan losses		(132,262	)		9,520			(11,855	)		10,741			53,156					(70,700	)
Ending balance	$	568,334		$	339,022		$	79,988		$	86,728		$	25,160		$		$	1,099,232
Ending balance:
individually evaluated for impairment	$			$			$			$			$			$		$
Ending balance:
collectively evaluated for impairment	$	568,334		$	339,022		$	79,988		$	86,728		$	25,160		$		$	1,099,232
Loans:
Ending balance	$	62,250,645		$	9,569,328		$	2,290,405		$	8,527,420		$	682,193		$	54,268	$	83,374,259
Ending balance:
individually evaluated for impairment	$	2,448,138		$	1,637,617		$	132,657		$	517,079		$			$	54,268	$	4,789,759
Ending balance:
collectively evaluated for impairment	$	59,802,507		$	7,931,711		$	2,157,748		$	8,010,341		$	682,193		$		$	78,584,500

	Residential Real Estate			Multi-Family and Commercial Real Estate			Commercial			Home Equity		Consumer			Construction			Total
Allowance for loan losses:
Beginning balance	$	656,156		$	634,968		$	58,399		$	65,369	$	29,609		$	3,797		$	1,448,298
Loan charge-offs		(142,279	)		(597,896	)		(19,325	)				(4,054	)					(763,554	)
Recoveries		10,738			76,159			2,537					21,000						110,434
Provision for loan losses		177,490			175,662			44,689			21,478		(25,522	)		(3,797	)		390,000
Ending balance	$	702,105		$	288,893		$	86,300		$	86,847	$	21,033		$	-0-		$	1,185,178
Ending balance:
individually evaluated for impairment	$			$			$			$		$			$			$
Ending balance:
collectively evaluated for impairment	$	702,105		$	288,893		$	86,300		$	86,847	$	21,033		$			$	1,185,178
Loans:
Ending balance	$	62,788,782		$	7,979,569		$	1,913,466		$	8,005,627	$	677,964		$	56,027		$	81,421,435
Ending balance:
individually evaluated for impairment	$	2,548,574		$	1,813,440		$	34,526		$	10,860	$			$			$	4,407,400
Ending balance:
collectively evaluated for impairment	$	60,240,208		$	6,166,129		$	1,878,940		$	7,994,767	$	677,964		$	56,027		$	77,014,035

Loans Receivable Activity Officers and Directors [Table Text Block]

	March 31,
	2016			2015
Balance, beginning of year	$	786,325		$	776,516
Payments		(56,887	)		(30,691	)
Borrower no longer associated with Bank		(40,712	)
Borrowings		1,000,000			40,500
Balance, end of year	$	1,688,726		$	786,325

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Note 7 - Loan Servicing (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Servicing Assets at Fair Value [Table Text Block]

	March 31,
	2016		2015
Mortgage Loan Servicing Portfolio:
Mortgage Partnership
Finance FHLB New York	$	125,666	$	130,080

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Note 8 - Accrued Interest Receivable (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Other Assets [Table Text Block]

	March 31,
	2016		2015
Loans	$	249,245	$	261,564
Investment securities		116,358		165,257
Mortgage backed securities		3,535		10,019
	$	369,138	$	436,840

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Note 9 - Premises and Equipment (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Property, Plant and Equipment [Table Text Block]

	March 31,
	2016			2015
Land	$	1,451,203		$	1,451,203
Buildings		6,864,728			6,848,967
Furniture, fixtures and equipment		2,054,765			2,006,454
		10,370,696			10,306,624
Accumulated depreciation		( 4,080,649	)		( 3,816,293	)
	$	6,290,047		$	6,490,331

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Note 11 - Deposits (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Deposit Account Balances [Table Text Block]

			March 31, 2016
					Weighted Average			Percent of
			Amount		Interest Rate			Portfolio
Non interest bearing accounts			$	12,054,146			%		10.78
Interest bearing checking accounts				23,027,846		0.19			20.59
Passbook savings accounts				17,724,072		0.10			15.84
Money Market accounts				19,813,982		0.49			17.71
Club accounts				143,488		0.10			0.13
				72,763,534					65.05
Certificates of Deposits:
0.10%	to	0.99%		21,695,607		0.59			19.39
1.00%	to	1.99%		14,773,019		1.29			13.21
2.00%	to	2.99%		2,632,487		2.23			2.35
				39,101,113					34.95
			$	111,864,647					100.00	%

			March 31, 2015
					Weighted Average			Percent of
			Amount		Interest Rate			Portfolio
Non interest bearing accounts			$	10,733,275			%		9.74
Interest bearing checking accounts				20,816,278		0.20			18.89
Passbook savings accounts				15,415,613		0.10			13.99
Money Market accounts				19,780,377		0.44			17.95
Club accounts				133,586		0.10			0.12
				66,879,129					60.69
Certificates of Deposits:
0.10%	to	0.99%		26,142,514		0.56			23.72
1.00%	to	1.99%		12,866,189		1.29			11.68
2.00%	to	2.99%		4,310,287		2.31			3.91
				43,318,990					39.31
			$	110,198,119					100.00	%

Schedule of Maturities of Deposits [Table Text Block]

	March 31,
	2016		2015
2016	$		$	25,527,548
2017		23,090,517		9,336,093
2018		8,181,234		3,584,198
2019		3,374,490		2,252,245
2020		2,358,507		2,618,906
2021		2,096,365
	$	39,101,113	$	43,318,990

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Note 13 - Advances from Federal Home Loan Bank (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block]

Maturity	Interest
Date	Rate			2016		2015
October 19, 2016		0.45	%	$		$	1,000,000
April 18, 2016		0.74	%		2,000,000		2,000,000
October 17, 2016		0.81	%		1,000,000		1,000,000
				$	3,000,000	$	4,000,000

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Note 14 - Income Taxes (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Years Ended
	March 31,
	2016			2015
Income Tax Expense (benefit)
Current federal tax expense
Federal	$	-		$	-
State		3,000			3,000
Deferred tax (benefit)
Federal		(85,569	)		(241,825	)
State		29,971			(86,395	)
Total	$	(52,598	)	$	(325,220	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Years Ended
	March 31,
	2016			2015
Expected federal tax provision (benefit) at 34% rate	$	(24,027	)	$	(325,738	)
Municipal bond interest		(469	)		(899	)
Increase in cash surrender value of life insurance		(1,700	)		(1,972	)
State income tax		(26,402	)		(64,021	)
Valuation allowance for state operating loss carryforward					67,410
Total income tax (benefit)		(52,598	)		(325,220	)
Effective tax rate (benefit)		(74.4%	)		(33.9%	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	March 31,
	2016		2015
Deferred tax assets:
Accrued pension costs	$	9,500	$	7,200
Allowance for loan losses		438,935		722,503
Directors’ benefit plans		131,500		122,000
Employee stock option		32,200		18,200
FASB 158 – unrecognized transition costs		91,100		118,000
Federal tax loss carryforward		1,050,900		774,000
State tax loss carryforward		372,800		391,000
Unrealized losses on securities available-for-sale				11,000
Non accrual interest		15,000		16,000
Total deferred tax assets	$	2,141,935	$	2,179,903
Valuation allowance		-		(67,410	)

	March 31,
	2016			2015
Deferred tax liabilities:
Accumulated depreciation	$	(64,000	)	$	(52,260	)
Unrealized gains on securities available-for-sale		(11,400	)
Total deferred tax liabilities		(75,400	)		(52,260	)
NET DEFERRED TAX ASSETS	$	2,066,535		$	2,060,233

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Note 16 - Board of Directors' Retirement Plan (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Net Benefit Costs [Table Text Block]

	Years Ended
	March 31,
	2016		2015
Service cost	$	18,012	$	7,080
Interest cost		23,276		18,924
Amortization of gain		17,908		4,644
Net amortization and deferral		-0-		-0-
Net periodic pension cost	$	59,196	$	30,648

Schedule of Net Funded Status [Table Text Block]

	March 31,
	2016		2015
Accumulated benefit obligation	$	540,070	$	558,403
Projected benefit obligation		556,522		599,324
Fair value of plan assets		-0-		-0-
Unfunded projected benefit obligation		556,522		599,324

Schedule of Changes in Projected Benefit Obligations [Table Text Block]

	March 31,
	2016			2015
Change in Benefit Obligation
Projected benefit obligation at beginning of year	$	599,324		$	415,803
Service cost		18,012			7,080
Interest cost		23,276			18,924
Actuarial (gain) loss		(48,863	)		192,737
Benefits paid		(35,227	)		(35,220	)
Benefit obligation at end of year	$	556,522		$	599,324

Schedule of Changes in Fair Value of Plan Assets [Table Text Block]

	March 31,
	2016			2015
Change in Plan Assets
Fair value of Plan assets at beginning of year	$	-0-		$	-0-
Actual return on Plan assets		-0-			-0-
Employer contributions		35,227			35,220
Benefits paid		(35,227	)		(35,220	)
Fair value of Plan assets at end of year	$	-0-		$	-0-

Schedule of Assumptions Used [Table Text Block]

	Years Ended
	March 31,
	2016			2015
Discount rate for periodic pension cost		4.00	%		4.75	%
Discount rate for benefit obligation		4.25	%		4.00	%
Rate of increase in compensation levels and social security wage base		2.00	%		2.00	%
Expected long-term rate of return on plan assets		N/A			N/A

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Note 17 - Employee Stock Ownership Plan (ESOP) (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block]

	Years Ended
	March 31,
	2016		2015
Shares released for allocation		21,534		18,016
Unearned shares		38,706		42,224
Total ESOP shares		60,240		60,240

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Note 18 - Stock Based Compensation (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Year Ended March 31, 2016
			Weighted Average
	Number of		Grant Date
	Shares		Fair Value
Restricted at the beginning of the period		16,000	$	8.69
Granted
Vested		4,000
Forfeited
Restricted at the end of the period		12,000		8.69

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Note 19 - Earnings Per Share (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

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

	2016			2015
Net (Loss)		(18,070	)	$	(632,832	)
Weighted average shares outstanding		945,425			945,425
Adjusted average unearned ESOP shares		(38,705	)		(42,224	)
Weighted average share outstanding - basic		906,720			903,201
Effect of dilutive common stock equivalents		-			-
Adjusted weighted average shares outstanding - dilutive		906,720			903,201
Basic loss per share	$	(0.02	)	$	(0.70	)
Diluted loss per share	$	(0.02	)	$	(0.70	)

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Note 20 - Fair Value Measurements (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

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

				Significant
				Other		Significant
	Carrying			Observable		Unobservable
	Value		Quoted Prices	Inputs		Inputs
	(Fair Value)		(Level 1)	(Level 2)		(Level 3)
March 31, 2016
Securities available for sale:
Certificates of Deposit	$	1,530,854	$	$	1,530,854	$
Federal National Mortgage Association		497,247			497,247
Mutual Fund Shares		121,992			121,992
Totals	$	2,150,093	$	$	2,150,093	$

				Significant
				Other		Significant
	Carrying			Observable		Unobservable
	Value		Quoted Prices	Inputs		Inputs
	(Fair Value)		(Level 1)	(Level 2)		(Level 3)
March 31, 2015
Securities available for sale:
Federal Home Loan Bank Bonds	$	489,883	$	$	489,883	$
Federal National Mortgage Association		482,558			482,558
Mutual Fund Shares		155,074			155,074
Totals	$	1,127,515	$	$	1,127,515	$

Fair Value Measurements, Nonrecurring [Table Text Block]

					Significant
				Other	Significant
	Carrying			Observable	Unobservable
	Value		Quoted Prices	Inputs	Inputs
	(Fair Value)		(Level 1)	(Level 2)	(Level 3)
March 31, 2016
Impaired loans	$	4,965,658	$	$	$	4,965,658
Real estate owned		1,763,628				1,763,628
Total	$	6,729,286	$	$		6,729,286

				Significant
				Other	Significant
	Carrying			Observable	Unobservable
	Value		Quoted Prices	Inputs	Inputs
	(Fair Value)		(Level 1)	(Level 2)	(Level 3)
March 31, 2015
Impaired loans	$	4,521,712	$	$	$	4,521,712
Real estate owned		2,433,483				2,433,483
Total	$	6,955,195	$	$	$	6,955,195

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

	March 31, 2016
	Fair		Valuation
	Value		Technique	Unobservable Input	Range
Impaired loans	$	4,965,658	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount
Real estate owned	$	1,763,628	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount

	March 31, 2016
	Fair		Valuation
	Value		Technique	Unobservable Input	Range
Impaired loans	$	4,521,712	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount
Real estate owned	$	2,433,483	Property appraisals	Management discount for selling costs, property type discount and market volatility	7%	-	12% discount

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

					Fair Value Measurements
							Significant		Significant
							Other		Unobserv-
					Quoted		Observable		able
	Carrying				Prices		Inputs		Inputs
March 31,2016	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	12,127,388	$	12,127,388	$	12,127,388	$		$
Investment securities available for sale		2,121,777		2,150,093				2,150,093
Investment and mortgage-backed securities held to maturity		21,584,538		84,744,000				21,639,610
Loans receivable, net		82,197,809								84,744,000
Accrued interest receivable		369,138		369,138		369,138
Federal Home Loan Bank stock		253,800		253,800		253,800
Bank owned life insurance		174,252		174,252		174,252
Financial Liabilities:
Deposits – non-interest bearing		12,054,146		12,054,146		12,054,146
Deposits – interest bearing		99,810,501						99,899,854
Advances from Federal Home Loan Bank		3,000,000		3,000,000		3,000,000
Accrued interest payable		5,830		5,830		5,830
Advances from borrowers for taxes and insurance		433,034		433,034		433,034

					Fair Value Measurements
							Significant		Significant
							Other		Unobserv-
					Quoted		Observable		able
	Carrying				Prices		Inputs		Inputs
March 31, 2016	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	10,450,448	$	10,450,448	$	10,450,448	$		$
Investment securities available for sale		1,154,418		1,127,515				1,127,515
Investment and mortgage-backed securities held to maturity		24,617,338		24,566,903				24,566,903
Loans receivable, net		80,146,397		79,675,000						79,675,000
Accrued interest receivable		436,840		436,840		436,840
Federal Home Loan Bank stock		306,300		306,300		306,300
Bank owned life insurance		169,252		169,252		169,252
Financial Liabilities:
Deposits – non-interest bearing		10,733,275		10,733,275		10,733,275
Deposits – interest bearing		99,464,844		99,411,000				99,411,000
Advances from Federal Home Loan Bank		4,000,000		4,000,000		4,000,000
Accrued interest payable		5,763		5,763		5,763
Advances from borrowers for taxes and insurance		320,356		320,356		320,356

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Note 21 - Commitments and Contingencies (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Other Commitments [Table Text Block]

	2016		2015
	Contractual		Contractual
	Amount		Amount
Financial instruments whose notional or contract amounts represent credit risk:
Construction loan commitments	$		$	225,000
Unused commercial lines of credit		1,212,000		1,425,000
Unused home equity lines of credit		4,969,000		4,450,000
Personal lines of credit		635		2,500
1-4 family residential mortgage commitments		1,232,000		1,683,000
Commercial real estate mortgage commitments				1,000,000
Standby letters of credit		55,000		55,000
Total	$	7,468,635	$	8,840,500

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Note 23 - Regulatory Capital (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

										Minimum to be Well
										Capitalized Under Prompt
						For Capital				Corrective Action
	Actual					Adequacy Purposes				Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
As of March 31, 2016:
Total Capital (to Risk-Weighted Assets)	$	11,859,000		17.26	%	≥	$5,498,000	≥	8.0%	≥	$6,873,000	≥	10.0%
Tier 1 Capital (to Risk-Weighted Assets)	$	10,988,000		15.99	%	≥	$4,123,500	≥	6.0%	≥	$5,498,000	≥	8.0%
Tier 1 Common (to Risk-Weighted Assets)	$	10,988,000		15.99	%	≥	$3,092,625	≥	4.5%	≥	$4,467,125	≥	6.5%
Tier 1 Capital (to Average Assets)	$	10,988,000		8.67	%	≥	$5,068,000	≥	4.0%	≥	$6,335,000	≥	5.0%

										Minimum to be Well
										Capitalized Under Prompt
						For Capital				Corrective Action
	Actual					Adequacy Purposes				Provisions
	Amount		Ratio			Amount		Ratio		Amount		Ratio
As of March 31, 2015:
Total Capital (to Risk-Weighted Assets)	$	11,839,000		16.97	%	≥	$5,615,000	≥	8.0%	≥	$7,019,000	≥	10.0%
Tier 1 Capital (to Risk-Weighted Assets)	$	10,958,000		15.61	%	≥	$4,211,520	≥	6.0%	≥	$5,615,000	≥	8.0%
Tier 1 Common (to Risk-Weighted Assets)	$	10,958,000		15.61	%	≥	$3,158,640	≥	4.5%	≥	$4,562,000	≥	6.5%
Tier 1 Capital (to Total Assets)	$	10,958,000		8.66	%	≥	$5,059,000	≥	4.0%	≥	$6,324,000	≥	5.0%

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Note 25 - Changes in Accumulated Other Comprehensive Income (Loss) Balances (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Unrealized
	Gains (Losses)			Defined			Accumulated
	On Available			Benefit			Other
	For Sale			Pension			Comprehensive
	Securities			Plans			Income (Loss)
Balance as of April 1, 2015	$	(16,142	)	$	(176,714	)	$	(192,856	)
Other comprehensive income before reclassification		33,131			40,063			73,194
Total other comprehensive income		33,131			40,063			73,194
Balance as of March 31, 2016	$	16,989		$	(136,651	)	$	(119,662	)

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Note 26 - Financial Information of Parent Company (Tables)

12 Months Ended

Mar. 31, 2016

Notes Tables

Condensed Balance Sheet [Table Text Block]

	For the Years Ended
	March 31,
	2016		2015
Statement of Financial Condition
Assets:
Cash and cash equivalents	$	480,129	$	460,783
Investment in Bank		9,536,490		9,592,799
Deferred income taxes		32,219		18,130
Total assets	$	10,048,838	$	10,071,712
Stockholders’ equity:
Total stockholders’ equity		10,048,838		10,071,712
Total liabilities and stockholders’ equity	$	10,048,838	$	10,071,712

Condensed Income Statement [Table Text Block]

	For the Years Ended
	March 31,
	2016			2015
Income Statement
Interest on ESOP loan	$	20,556		$	21,938
Other interest income		456			706
Total income	$	21,012		$	22,644
Management fee		45,000			45,000
Compensation expense		35,220			30,216
Total expense		80,220			75,216
(Loss) before income tax benefit and equity in undistributed net loss of subsidiary		(59,208	)		(52,572	)
Equity in undistributed net income (loss) of subsidiary		27,549			(591,847	)
Income tax benefit		13,589			11,587
Net (loss)	$	(18,070	)	$	(632,832	)

Condensed Cash Flow Statement [Table Text Block]

		For the Years Ended
		March 31,
		2016			2015
Cash Flows
Adjustments to reconcile net loss to net cash used in operating activities:
Share based compensation expense	$	35,220		$	30,216
Operating activities:
Net (loss)		(18,070	)	$	(632,832	)
Undistributed net (income) loss of subsidiary		(27,549	)		591,847
Increase in deferred income taxes		(14,089	)		(12,087	)
Net cash (used in) operating activities		(24,488	)		(22,856	)
Investing activities:
Distribution to subsidiary					(275,000	)
Net cash (used in) investing activities					(275,000	)
Financing activities:
Proceeds from ESOP loan		43,834			42,451
Net cash provided by financing activities		43,834			42,451
Net increase (decrease) in cash and cash equivalents		19,346			(255,405	)
Cash and cash equivalents, beginning of year		460,783			716,188
Cash and cash equivalents, end of year	$	480,129		$	460,783

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Note 1 - Nature of Operations (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 2 - Summary of Significant Accounting Policies (Details Textual)		1 Months Ended	12 Months Ended
	Oct. 16, 2013 shares	Oct. 31, 2013 USD ($) shares	Mar. 31, 2016 USD ($) shares	Mar. 31, 2015 USD ($) shares	Mar. 31, 2008 USD ($) shares	Mar. 31, 2014 USD ($)	Mar. 31, 2007 shares
Employee Stock Ownership Plan [Member] | Converted to Shares of Bancorp [Member]
Conversion of Stock, Shares Issued | shares		36,596
Real Estate Acquired Through Foreclosure			$ 1,763,628	$ 2,433,483		$ 1,949,825
Gains (Losses) on Sales of Other Real Estate			$ (3,519)	(82,062)
Number of Reportable Segments			1
Advertising Expense			$ 23,988	24,241
Stock Issued During Period, Shares, Employee Stock Ownership Plan | shares	23,644	23,644			64,081
Stock Issued During Period, Value, Employee Stock Ownership Plan		$ 189,152	$ 33,077	$ 24,349	$ 640,810
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | shares			21,535	18,016
Employee Stock Ownership Plan (ESOP), Compensation Expense			$ 33,076	$ 24,349
Employee Stock Ownership Plan (ESOP), Shares in ESOP | shares			60,240	60,240			64,081

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Note 5 - Investment Securities (Details Textual)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Debt Securities [Member]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	9
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	$ 2,570,533
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	2,570,533	$ 15,704,592
Held-to-maturity Securities Pledged as Collateral	$ 2,515,000	$ 1,016,000

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Note 5 - Investment Securities - Available-for-Sale Securities (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Securities available-for-sale, amortized cost	$ 500,000	$ 500,000
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses	$ (2,753)	$ (17,442)
Available-for-sale securities - fair value	497,247	482,558
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Securities available-for-sale, amortized cost		$ 500,000
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses		$ (10,117)
Available-for-sale securities - fair value		489,883
Certificates of Deposit [Member]
Securities available-for-sale, amortized cost	1,500,000
Available-for-sale securities - gross unrealized gains	$ 30,854
Available-for-sale securities - gross unrealized losses
Available-for-sale securities - fair value	$ 1,530,854
Mutual Fund Shares [Member]
Securities available-for-sale, amortized cost	121,777	154,418
Available-for-sale securities - gross unrealized gains	2,104	$ 656
Available-for-sale securities - gross unrealized losses	(1,889)
Available-for-sale securities - fair value	121,992	$ 155,074
Securities available-for-sale, amortized cost	2,121,777	1,154,418
Available-for-sale securities - gross unrealized gains	32,958	656
Available-for-sale securities - gross unrealized losses	(4,642)	(27,559)
Available-for-sale securities - fair value	$ 2,150,093	$ 1,127,515

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Note 5 - Investment Securities - Held-to-Maturity Securities (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	$ 5,802,109	$ 7,569,330
Held-to-maturity securities, gross unrealized gains	27,488	25,212
Held-to-maturity securities, gross unrealized losses	(3,680)	(61,886)
Securities held-to-maturity, fair value	5,825,917	7,532,656
Federal Farm Credit Bonds [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	9,437,611	6,436,634
Held-to-maturity securities, gross unrealized gains	21,157	245
Held-to-maturity securities, gross unrealized losses	(1,087)	(55,041)
Securities held-to-maturity, fair value	9,457,681	6,381,838
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	732,000	1,997,490
Held-to-maturity securities, gross unrealized gains	$ 425	1,869
Held-to-maturity securities, gross unrealized losses		(20,411)
Securities held-to-maturity, fair value	$ 732,425	1,978,948
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	4,000,000	6,998,982
Held-to-maturity securities, gross unrealized gains	$ 17,253	15,848
Held-to-maturity securities, gross unrealized losses		(46,455)
Securities held-to-maturity, fair value	$ 4,017,253	6,968,375
Municipal Bonds [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	$ 736,250	470,250
Held-to-maturity securities, gross unrealized gains		$ 1,653
Held-to-maturity securities, gross unrealized losses	$ (1,513)
Securities held-to-maturity, fair value	734,737	$ 471,903
Bonds [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	20,707,970	23,472,686
Held-to-maturity securities, gross unrealized gains	66,323	44,827
Held-to-maturity securities, gross unrealized losses	(6,280)	(183,793)
Securities held-to-maturity, fair value	20,768,013	23,333,720
Mortgage Backed Securities, Federal Home Loan Mortgage Corporation [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	322,014	453,850
Held-to-maturity securities, gross unrealized gains	25,607	$ 32,959
Held-to-maturity securities, gross unrealized losses	(7,728)
Securities held-to-maturity, fair value	339,893	$ 486,809
Mortgage Backed Securities, Federal National Mortgage Association [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	397,541	494,759
Held-to-maturity securities, gross unrealized gains	41,321	$ 49,073
Held-to-maturity securities, gross unrealized losses	(3,418)
Securities held-to-maturity, fair value	435,444	$ 543,832
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	157,013	196,043
Held-to-maturity securities, gross unrealized gains	6,926	$ 6,499
Held-to-maturity securities, gross unrealized losses	(1,139)
Securities held-to-maturity, fair value	162,800	$ 202,542
Collateralized Mortgage Backed Securities [Member]
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	876,568	1,144,652
Held-to-maturity securities, gross unrealized gains	73,854	$ 88,531
Held-to-maturity securities, gross unrealized losses	(12,285)
Securities held-to-maturity, fair value	938,137	$ 1,233,183
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	21,584,538	24,617,338
Held-to-maturity securities, gross unrealized gains	140,177	133,358
Held-to-maturity securities, gross unrealized losses	(18,565)	(183,793)
Securities held-to-maturity, fair value	$ 21,706,150	$ 24,566,903

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Note 5 - Investment Securities - Maturities of Securities (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Available-for-sale securities, amortized cost - one year or less
Available-for-sale securities, fair value - one year or less
Held-to-maturity securities, amortized cost - one year or less	$ 736,250	$ 970,771
Held-to-maturity securities, fair value - one year or less	734,737	$ 980,256
Available-for-sale securities, amortized cost - after one year through five years	1,000,000
Available-for-sale securities, fair value - after one year through five years	1,024,569
Held-to-maturity securities, amortized cost - after one year through five years	945,000	$ 1,000,639
Held-to-maturity securities, fair value - after one year through five years	945,091	$ 999,302
Available-for-sale securities, amortized cost - after five years through ten years	1,000,000
Available-for-sale securities, fair value - after five years through ten years	1,003,532
Held-to-maturity securities, amortized cost - after five years through ten years	8,379,581	$ 8,910,976
Held-to-maturity securities, fair value - after five years through ten years	$ 8,384,588	8,838,675
Available-for-sale securities, amortized cost - after ten years		1,000,000
Available-for-sale securities, fair value - after ten years		972,441
Held-to-maturity securities, amortized cost - after ten years	$ 11,523,707	13,734,952
Held-to-maturity securities, fair value - after ten years	11,641,734	13,748,670
Mutual fund shares, available-for-sale, amortized cost	121,777	154,418
Mutual fund shares, available-for-sale securities, fair value	$ 121,992	$ 155,074
Mutual fund shares, held-to-maturity securities, amortized cost
Mutual fund shares, held-to-maturity securities, fair value
Available-for-sale securities, amortized cost	$ 2,121,777	$ 1,154,418
Available-for-sale securities, fair value	2,150,093	1,127,515
Investment and mortgage backed securities held-to-maturity (fair value of $21,706,150 and $24,566,903 at March 31, 2016 and 2015, respectively)	21,584,538	24,617,338
Securities held-to-maturity, fair value	$ 21,706,150	$ 24,566,903

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Note 5 - Investment Securities - Securities With Gross Unrealized Losses (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Securities with unrealized losses, less than 12 months, fair value		$ 2,456,736
Securities with unrealized losses, less than 12 months, gross unrealized losses		(20,116)
Securities with unrealized losses, 12 months or greater, fair value	$ 496,320	2,450,731
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(3,680)	(51,887)
Securities with unrealized losses, fair value	496,320	4,907,467
Securities with unrealized losses, gross unrealized losses	$ (3,680)	(72,003)
Federal Farm Credit Bonds [Member]
Securities with unrealized losses, less than 12 months, fair value		2,478,672
Securities with unrealized losses, less than 12 months, gross unrealized losses		(13,569)
Securities with unrealized losses, 12 months or greater, fair value	$ 498,913	2,903,103
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(1,087)	(41,472)
Securities with unrealized losses, fair value	498,913	5,381,775
Securities with unrealized losses, gross unrealized losses	$ (1,087)	(55,041)
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member]
Securities with unrealized losses, less than 12 months, fair value		987,910
Securities with unrealized losses, less than 12 months, gross unrealized losses		(12,090)
Securities with unrealized losses, 12 months or greater, fair value	$ 102,967	491,679
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(7,728)	(8,321)
Securities with unrealized losses, fair value	102,967	1,479,589
Securities with unrealized losses, gross unrealized losses	$ (7,728)	(20,411)
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Securities with unrealized losses, less than 12 months, fair value		1,492,801
Securities with unrealized losses, less than 12 months, gross unrealized losses		(6,857)
Securities with unrealized losses, 12 months or greater, fair value	$ 497,247	2,442,960
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(2,753)	(57,040)
Securities with unrealized losses, fair value	497,247	3,935,761
Securities with unrealized losses, gross unrealized losses	(2,753)	(63,897)
Municipal Bonds [Member]
Securities with unrealized losses, less than 12 months, fair value	734,737
Securities with unrealized losses, less than 12 months, gross unrealized losses	$ (1,513)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Securities with unrealized losses, fair value	$ 734,737
Securities with unrealized losses, gross unrealized losses	(1,513)
Bonds [Member]
Securities with unrealized losses, less than 12 months, fair value	734,737	7,416,119
Securities with unrealized losses, less than 12 months, gross unrealized losses	(1,513)	(52,632)
Securities with unrealized losses, 12 months or greater, fair value	1,659,478	8,288,473
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(17,137)	(158,720)
Securities with unrealized losses, fair value	2,394,215	15,704,592
Securities with unrealized losses, gross unrealized losses	$ (18,650)	(211,352)
Mutual Fund Shares [Member]
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	$ 64,031
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(1,889)
Securities with unrealized losses, fair value	64,031
Securities with unrealized losses, gross unrealized losses	$ (1,889)
Mortgage Backed Securities, Federal National Mortgage Association [Member]
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	$ 154,705
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(3,418)
Securities with unrealized losses, fair value	154,705
Securities with unrealized losses, gross unrealized losses	$ (3,418)
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
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	$ 21,613
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(1,139)
Securities with unrealized losses, fair value	21,613
Securities with unrealized losses, gross unrealized losses	$ (1,139)
Commercial Mortgage Backed Securities [Member]
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	$ 176,318
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(4,557)
Securities with unrealized losses, fair value	176,318
Securities with unrealized losses, gross unrealized losses	(4,557)
Securities with unrealized losses, less than 12 months, fair value	734,737	7,416,119
Securities with unrealized losses, less than 12 months, gross unrealized losses	(1,513)	(52,632)
Securities with unrealized losses, 12 months or greater, fair value	1,835,796	8,288,473
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(21,694)	(158,720)
Securities with unrealized losses, fair value	2,570,533	15,704,592
Securities with unrealized losses, gross unrealized losses	$ (23,207)	$ (211,352)

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Note 6 - Loans (Details Textual)	12 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Total Charge-offs [Member]
Loans Receivables, Write Offs, Number of Relationships	1	2
Allowance for Loan and Lease Losses, Write-offs	$ 71,388	$ 22,694
Partial Charge-offs [Member]
Loans Receivables, Write Offs, Number of Relationships	3	17
Allowance for Loan and Lease Losses, Write-offs	$ 67,461	$ 740,860
Residential Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Residential Portfolio Segment [Member]
Financing Receivable, Modifications, Number of Contracts	1	1
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 1,333,383	$ 880,061
Impaired Financing Receivable, Average Recorded Investment	2,912,541	2,742,623
Impaired Financing Receivable, Interest Income, Cash Basis Method	70,879	65,065
Allowance for Loan and Lease Losses, Write-offs	$ 39,730	142,279
Owner and Non-owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Commercial Real Estate Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Interest Rate Maturity Or Re-price	7 years
Loan Amortization Period	25 years
Commercial Real Estate Portfolio Segment [Member] | Minimum [Member]
Interest Rate Maturity Or Re-price	5 years
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 552,545	661,456
Impaired Financing Receivable, Average Recorded Investment	1,992,465	1,727,671
Impaired Financing Receivable, Interest Income, Cash Basis Method	117,115	129,426
Allowance for Loan and Lease Losses, Write-offs	$ 16,871	597,896
Consumer Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 0	71,387
Impaired Financing Receivable, Average Recorded Investment	$ 15,864	18,185
Impaired Financing Receivable, Interest Income, Cash Basis Method		2,169
Allowance for Loan and Lease Losses, Write-offs	$ 71,388	4,054
Construction Portfolio Segment [Member] | Maximum [Member]
Loan Term	1 year
Construction Portfolio Segment [Member]
Impaired Financing Receivable, Average Recorded Investment	$ 60,154	58,263
Impaired Financing Receivable, Interest Income, Cash Basis Method	$ 2,811	$ 3,299
Allowance for Loan and Lease Losses, Write-offs
Commercial Real Estate [Member]
Financing Receivable, Modifications, Number of Contracts	3	3
Financing Receivable, Modifications, Recorded Investment	$ 676,293	$ 653,944
Construction [Member]
Financing Receivable, Modifications, Number of Contracts	1	1
Financing Receivable, Modifications, Recorded Investment	$ 54,268	$ 56,027
Residential Real Estate Loans [Member]
Financing Receivable, Modifications, Number of Contracts	7	7
Financing Receivable, Modifications, Recorded Investment	$ 1,620,970	$ 1,528,017
Modified During the Year [Member]
Financing Receivable, Modifications, Number of Contracts	1	1
Financing Receivable, Modifications, Recorded Investment	$ 172,933	$ 110,205
In Non-accrual Status [Member]
Financing Receivable, Number of Contracts, Nonaccrual Status	18	17
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2,761,939	$ 2,337,239
Financing Receivable, Modifications, Number of Contracts	11	11
Maximum Loan to One Borrower Limitation, Percentage of Capital Funds	15.00%
Maximum Loan to One Borrower Limitation	$ 1,800,000
Additional Loan to One Borrower Limitation if Collateralized, Percentage of Adjusted Capital Funds	10.00%
Financing Receivable, Modifications, Recorded Investment	$ 2,351,531	$ 2,237,988
Financing Receivable, Recorded Investment, Nonaccrual Status	2,018,167	1,623,764
Impaired Financing Receivable, Average Recorded Investment	4,965,658	4,707,275
Impaired Financing Receivable, Interest Income, Cash Basis Method	$ 200,787	$ 201,449
Allowance for Loan Loss to Loans Outstanding Ratio	1.32%
Increase (Decrease) in Non-performing Assets	$ (161,910)
Non-performing Assets As Percentage of Total Assets	4.74%	4.90%
Allowance for Loan and Lease Losses, Write-offs	$ 138,849	$ 763,554
Loan Discount, Percentage	1.00%

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Note 6 - Loans - Loans (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Residential Portfolio Segment [Member]
Loans	$ 62,250,645	$ 62,788,782
Allowance for loan losses	(568,334)	(702,105)	$ (656,156)
Commercial Real Estate Portfolio Segment [Member]
Loans	9,569,328	7,979,569
Allowance for loan losses	(339,022)	(288,893)	(634,968)
Commercial Portfolio Segment [Member]
Loans	2,290,405	1,913,466
Allowance for loan losses	(79,988)	(86,300)	(58,399)
Home Equity Portfolio Segment [Member]
Loans	8,527,420	8,005,627
Allowance for loan losses	(86,728)	(86,847)	(65,369)
Consumer Portfolio Segment [Member]
Loans	682,193	677,964
Allowance for loan losses	(25,160)	(21,033)	(29,609)
Construction Portfolio Segment [Member]
Loans	$ 54,268	56,027
Allowance for loan losses		0	(3,797)
Loans	$ 83,374,259	81,421,435
Net deferred loan origination fees	(77,218)	(89,860)
Allowance for loan losses	(1,099,232)	(1,185,178)	$ (1,448,298)
	(1,176,450)	(1,275,038)
Loans, net	$ 82,197,809	$ 80,146,397

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Note 6 - Loans - Loans by Credit Quality Indicator (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Pass [Member] | Residential Portfolio Segment [Member]
Loans	$ 59,385,578	$ 60,728,444
Pass [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans	7,962,420	5,308,521
Pass [Member] | Commercial Portfolio Segment [Member]
Loans	2,074,394	1,685,655
Pass [Member] | Home Equity Portfolio Segment [Member]
Loans	8,416,499	7,994,767
Pass [Member] | Consumer Portfolio Segment [Member]
Loans	682,193	606,577
Pass [Member]
Loans	$ 78,521,084	$ 76,323,964
Special Mention [Member] | Residential Portfolio Segment [Member]
Loans
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans	$ 288,784	$ 713,658
Special Mention [Member] | Commercial Portfolio Segment [Member]
Loans	53,942	23,568
Special Mention [Member]
Loans	$ 342,726	$ 737,226
Classified Loans [Member] | Residential Portfolio Segment [Member]
Loans
Classified Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans		$ 294,250
Classified Loans [Member] | Commercial Portfolio Segment [Member]
Loans	$ 140,751	204,243
Classified Loans [Member]
Loans	140,751	498,493
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	2,865,067	2,060,338
Residential Portfolio Segment [Member]
Loans	62,250,645	62,788,782
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	1,318,124	1,663,140
Commercial Real Estate Portfolio Segment [Member]
Loans	9,569,328	$ 7,979,569
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	21,318
Commercial Portfolio Segment [Member]
Loans	2,290,405	$ 1,913,466
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	110,921	10,860
Home Equity Portfolio Segment [Member]
Loans	8,527,420	8,005,627
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans		71,387
Consumer Portfolio Segment [Member]
Loans	682,193	677,964
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	54,268	56,027
Construction Portfolio Segment [Member]
Loans	54,268	56,027
Nonperforming Financial Instruments [Member]
Loans	4,369,698	3,861,752
Loans	$ 83,374,259	$ 81,421,435

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Note 6 - Loans - Past-Due Loans (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 577,002	$ 495,322
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	339,654	98,280
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	50,000	34,371
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans		29,967
Financing Receivables, 30 to 59 Days Past Due [Member]
Past due loans	$ 966,656	$ 657,940
Percentage past due loans	1.16%	0.81%
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 224,111	$ 1,324,777
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	288,784	$ 116,763
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	21,318
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans		$ 88,625
Financing Receivables, 60 to 89 Days Past Due [Member]
Past due loans	$ 534,213	$ 1,530,165
Percentage past due loans	0.64%	1.88%
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 1,967,082	$ 1,364,792
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	663,068	890,200
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	110,471	10,860
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans		71,387
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Past due loans	$ 2,740,621	$ 2,337,239
Percentage past due loans	3.29%	2.87%
Residential Portfolio Segment [Member]
Past due loans	$ 2,768,195	$ 3,184,891
Current loans	59,482,450	59,603,891
Loans	62,250,645	62,788,782
Commercial Real Estate Portfolio Segment [Member]
Past due loans	951,852	1,006,963
Current loans	8,617,476	6,972,606
Loans	9,569,328	7,979,569
Commercial Portfolio Segment [Member]
Past due loans	360,972	98,280
Current loans	1,929,433	1,815,186
Loans	2,290,405	1,913,466
Home Equity Portfolio Segment [Member]
Past due loans	160,471	133,856
Current loans	8,366,949	7,871,771
Loans	8,527,420	8,005,627
Consumer Portfolio Segment [Member]
Past due loans		101,354
Current loans	682,193	576,610
Loans	682,193	677,964
Construction Portfolio Segment [Member]
Current loans	54,268	56,027
Loans	54,268	56,027
Past due loans	4,241,490	4,525,344
Current loans	79,132,769	76,896,091
Loans	$ 83,374,259	$ 81,421,435
Percentage past due loans	5.09%	5.56%
Percentage of current loans	94.91%	94.44%
Percentage of Total Loans	100.00%	100.00%

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Note 6 - Loans - Impaired Loans (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Impaired loans for which a valuation allowance has been provided
Impaired loans for which no valuation allowance has been provided	$ 4,965,658	$ 4,521,712
Total loans determined to be impaired	$ 4,965,658	$ 4,521,712
Allowance for loans losses related to impaired loans
Average recorded investment in impaired loans	$ 4,965,658	$ 4,707,275
Cash basis interest income recognized on impaired loans	$ 200,787	$ 201,449

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Note 6 - Loans - Impaired Loans by Portfolio (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Residential Portfolio Segment [Member]
Recorded Investment, with No Valuation Allowance	$ 2,964,318	$ 2,600,317
Impaired loans for which no valuation allowance has been provided	2,920,343	2,535,471
Average Annual Recorded Investment, with No Valuation Allowance	2,912,541	2,742,623
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	70,879	65,065
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	70,879	65,065
Recorded Investment, Total	2,964,318	2,600,317
Unpaid Principal Balance, Total	2,920,343	2,535,471
Impaired Financing Receivable, Average Recorded Investment	2,912,541	2,742,623
Impaired Financing Receivable, Interest Income, Cash Basis Method	70,879	65,065
Cash basis interest income recognized on impaired loans	70,879	65,065
Total non-performing loans	2,964,318	2,600,317
Recorded Investment, with No Valuation Allowance	2,964,318	2,600,317
Commercial Real Estate Portfolio Segment [Member]
Recorded Investment, with No Valuation Allowance	1,938,180	1,860,348
Impaired loans for which no valuation allowance has been provided	1,935,352	1,813,440
Average Annual Recorded Investment, with No Valuation Allowance	1,992,465	1,727,671
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	117,115	129,426
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	117,115	129,426
Recorded Investment, Total	1,938,180	1,860,348
Unpaid Principal Balance, Total	1,935,352	1,813,440
Impaired Financing Receivable, Average Recorded Investment	1,992,465	1,727,671
Impaired Financing Receivable, Interest Income, Cash Basis Method	117,115	129,426
Cash basis interest income recognized on impaired loans	117,115	129,426
Total non-performing loans	1,938,180	1,860,348
Recorded Investment, with No Valuation Allowance	1,938,180	1,860,348
Commercial Portfolio Segment [Member]
Recorded Investment, with No Valuation Allowance	55,695	34,526
Impaired loans for which no valuation allowance has been provided	55,695	34,526
Average Annual Recorded Investment, with No Valuation Allowance	34,346	30,991
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	9,207	1,314
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	9,207	1,314
Recorded Investment, Total	55,695	34,526
Unpaid Principal Balance, Total	55,695	34,526
Impaired Financing Receivable, Average Recorded Investment	34,346	30,991
Impaired Financing Receivable, Interest Income, Cash Basis Method	9,207	1,314
Cash basis interest income recognized on impaired loans	9,207	1,314
Total non-performing loans	55,695	34,526
Recorded Investment, with No Valuation Allowance	$ 55,695	34,526
Home Equity Portfolio Segment [Member]
Recorded Investment, with No Valuation Allowance		10,860
Impaired loans for which no valuation allowance has been provided		10,860
Average Annual Recorded Investment, with No Valuation Allowance	$ 39,066	129,542
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	775	176
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	$ 775	176
Recorded Investment, Total		10,860
Unpaid Principal Balance, Total		10,860
Impaired Financing Receivable, Average Recorded Investment	$ 39,066,775	129,542
Impaired Financing Receivable, Interest Income, Cash Basis Method		176
Cash basis interest income recognized on impaired loans		176
Total non-performing loans		10,860
Recorded Investment, with No Valuation Allowance		10,860
Consumer Portfolio Segment [Member]
Recorded Investment, with No Valuation Allowance		71,388
Impaired loans for which no valuation allowance has been provided		71,388
Average Annual Recorded Investment, with No Valuation Allowance	$ 15,864	18,185
Interest Income Recognized While On Impaired Status, with No Valuation Allowance		2,169
Interest Income Recognized While On Impaired Status, with No Valuation Allowance		2,169
Recorded Investment, Total		71,388
Unpaid Principal Balance, Total		71,388
Impaired Financing Receivable, Average Recorded Investment	$ 15,864	18,185
Impaired Financing Receivable, Interest Income, Cash Basis Method		2,169
Cash basis interest income recognized on impaired loans		2,169
Total non-performing loans		71,388
Recorded Investment, with No Valuation Allowance		71,388
Construction Portfolio Segment [Member]
Recorded Investment, with No Valuation Allowance	$ 59,105	56,027
Impaired loans for which no valuation allowance has been provided	54,268	56,027
Average Annual Recorded Investment, with No Valuation Allowance	60,154	58,263
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	2,811	3,299
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	2,811	3,299
Recorded Investment, Total	59,105	56,027
Unpaid Principal Balance, Total	54,268	56,027
Impaired Financing Receivable, Average Recorded Investment	60,154	58,263
Impaired Financing Receivable, Interest Income, Cash Basis Method	2,811	3,299
Cash basis interest income recognized on impaired loans	2,811	3,299
Total non-performing loans	59,105	56,027
Recorded Investment, with No Valuation Allowance	59,105	56,027
Recorded Investment, with No Valuation Allowance	5,017,298	4,633,466
Impaired loans for which no valuation allowance has been provided	4,965,658	4,521,712
Average Annual Recorded Investment, with No Valuation Allowance	5,054,436	4,707,275
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	200,787	201,449
Interest Income Recognized While On Impaired Status, with No Valuation Allowance	200,787	201,449
Recorded Investment, Total	5,017,298	4,633,466
Unpaid Principal Balance, Total	4,965,658	4,521,712
Impaired Financing Receivable, Average Recorded Investment	4,965,658	4,707,275
Impaired Financing Receivable, Interest Income, Cash Basis Method	200,787	201,449
Cash basis interest income recognized on impaired loans	200,787	201,449
Total non-performing loans	5,017,298	4,633,466
Recorded Investment, with No Valuation Allowance	$ 5,017,298	$ 4,633,466

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Note 6 - Loans - Nonaccrual Loans (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings	$ 744,222	$ 484,731
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	787,462	695,546
Residential Portfolio Segment [Member]
Non-accrual loans	$ 1,333,383	$ 880,061
90 days past due and still accruing
Total non-performing loans	$ 2,964,318	$ 2,600,317
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings	765,579	772,940
Commercial Real Estate Portfolio Segment [Member]
Non-accrual loans	$ 552,545	661,456
90 days past due and still accruing		228,744
Total non-performing loans	$ 1,938,180	1,860,348
Commercial Portfolio Segment [Member]
Non-accrual loans	21,318	0
Total non-performing loans	55,695	34,526
Home Equity Portfolio Segment [Member]
Non-accrual loans	$ 110,921	10,860
Total non-performing loans		10,860
Consumer Portfolio Segment [Member]
Non-accrual loans	$ 0	71,387
Total non-performing loans		71,388
Construction Portfolio Segment [Member]
90 days past due and still accruing	$ 54,268	56,027
Total non-performing loans	59,105	56,027
Nonperforming Financial Instruments [Member]
Troubled debt restructurings	744,222	713,475
Total non-performing loans	4,369,698	3,861,752
Real estate owned	1,763,627	2,433,483
Total non-performing assets	6,133,325	6,295,235
Performing Financial Instruments [Member]
Troubled debt restructurings	1,607,309	1,524,513
Non-accrual loans	2,018,167	1,623,764
Troubled debt restructurings	2,351,531	2,237,988
Total non-performing loans	5,017,298	4,633,466
Real estate owned	1,763,628	2,433,483	$ 1,949,825
Total non-performing assets	$ 129,415,025	$ 128,572,750
Non-performing loans as a percentage of loans	5.24%	4.74%
Non-performing assets as a percentage of loans and real estate owned	7.20%	7.51%
Non-performing assets as a percentage of total assets	4.74%	4.90%

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Note 6 - Loans - Troubled Debt Restructurings (Details)	12 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)
Residential Portfolio Segment [Member]
Number of Contracts	1	1
Outstanding Recorded Investment Pre-Modification	$ 163,767	$ 95,511
Outstanding Recorded Investment Post-Modification	$ 172,933	$ 111,000
Number of Contracts	11	11

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Note 6 - Loans - Troubled Debt Restructurings Subsequent Default (Details) - Residential Portfolio Segment [Member]	12 Months Ended
	Mar. 31, 2016 USD ($)
Troubled debt restructurings that subsequently defaulted, number of contracts
Troubled debt restructurings that subsequently defaulted, recorded investment	$ 0

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Note 6 - Loans - Real Estate Owned (REO), Net of Valuation Allowance (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Balance, beginning of year	$ 2,433,483	$ 1,949,825
Loans transferred to real estate owned	332,495	2,332,862
Dispositions of REO	(751,952)	(1,591,941)
(Loss) on sale of REO	(3,519)	(82,062)
Valuation adjustments during the year	(246,879)	(175,200)
Balance, end of year	1,763,628	2,433,483
Balance, beginning of year	850,865	675,665
Valuation adjustments added during the year	246,879	642,080
Valuation adjustments on disposed properties during the year	(870,513)	(466,880)
Balance, end of year	$ 227,231	$ 850,865

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Note 6 - Loans - Allowance for Losses on Loans and Charge-Offs (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Residential Portfolio Segment [Member]
Beginning balance	$ 702,105	$ 656,156
Provision (recapture) for loan losses	(132,262)	177,490
Charge-offs	39,730	142,279
Recoveries	(38,221)	(10,738)
Ending balance	568,334	702,105
Loans	62,250,645	62,788,782
Commercial Real Estate Portfolio Segment [Member]
Beginning balance	288,893	634,968
Provision (recapture) for loan losses	9,520	175,662
Charge-offs	16,871	597,896
Recoveries	(57,480)	(76,159)
Ending balance	339,022	288,893
Loans	9,569,328	7,979,569
Commercial Portfolio Segment [Member]
Beginning balance	86,300	58,399
Provision (recapture) for loan losses	$ (11,855)	44,689
Charge-offs		19,325
Recoveries	$ (5,543)	(2,537)
Ending balance	79,988	86,300
Loans	2,290,405	1,913,466
Home Equity Portfolio Segment [Member]
Beginning balance	86,847	65,369
Provision (recapture) for loan losses	10,741	$ 21,478
Charge-offs	$ 10,860
Recoveries
Ending balance	$ 86,728	$ 86,847
Loans	8,527,420	8,005,627
Consumer Portfolio Segment [Member]
Beginning balance	21,033	29,609
Provision (recapture) for loan losses	53,156	(25,522)
Charge-offs	71,388	4,054
Recoveries	(22,359)	(21,000)
Ending balance	25,160	21,033
Loans	682,193	677,964
Construction Portfolio Segment [Member]
Beginning balance	$ 0	3,797
Provision (recapture) for loan losses		$ (3,797)
Charge-offs
Recoveries
Ending balance		$ 0
Loans	$ 54,268	56,027
Beginning balance	1,185,178	1,448,298
Provision (recapture) for loan losses	(70,700)	390,000
Charge-offs	138,849	763,554
Recoveries	(123,603)	(110,434)
Total Net Charge-Offs	15,246	653,120
Ending balance	1,099,232	1,185,178
Loans	83,374,259	81,421,435
Average loans outstanding	$ 83,665,599	$ 83,252,940
Allowance as a percentage of year-end loans	1.32%	1.46%
Net charge-offs as a percentage of average loans	0.02%	0.78%

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Note 6 - Loans - Allowance for Loan Losses (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Residential Portfolio Segment [Member]
Beginning balance	$ 702,105	$ 656,156
Loan charge-offs	(39,730)	(142,279)
Recoveries	38,221	10,738
Provision (recapture) for loan losses	(132,262)	177,490
Ending balance	$ 568,334	$ 702,105
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	$ 568,334	$ 702,105
Ending balance	62,250,645	62,788,782
Ending balance: loans individually evaluated for impairment	2,448,138	2,548,574
Ending balance: loans collectively evaluated for impairment	59,802,507	60,240,208
Commercial Real Estate Portfolio Segment [Member]
Beginning balance	288,893	634,968
Loan charge-offs	(16,871)	(597,896)
Recoveries	57,480	76,159
Provision (recapture) for loan losses	9,520	175,662
Ending balance	$ 339,022	$ 288,893
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	$ 339,022	$ 288,893
Ending balance	9,569,328	7,979,569
Ending balance: loans individually evaluated for impairment	1,637,617	1,813,440
Ending balance: loans collectively evaluated for impairment	7,931,711	6,166,129
Commercial Portfolio Segment [Member]
Beginning balance	$ 86,300	58,399
Loan charge-offs		(19,325)
Recoveries	$ 5,543	2,537
Provision (recapture) for loan losses	(11,855)	44,689
Ending balance	$ 79,988	$ 86,300
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	$ 79,988	$ 86,300
Ending balance	2,290,405	1,913,466
Ending balance: loans individually evaluated for impairment	132,657	34,526
Ending balance: loans collectively evaluated for impairment	2,157,748	1,878,940
Home Equity Portfolio Segment [Member]
Beginning balance	86,847	$ 65,369
Loan charge-offs	$ (10,860)
Recoveries
Provision (recapture) for loan losses	$ 10,741	$ 21,478
Ending balance	$ 86,728	$ 86,847
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	$ 86,728	$ 86,847
Ending balance	8,527,420	8,005,627
Ending balance: loans individually evaluated for impairment	517,079	10,860
Ending balance: loans collectively evaluated for impairment	8,010,341	7,994,767
Consumer Portfolio Segment [Member]
Beginning balance	21,033	29,609
Loan charge-offs	(71,388)	(4,054)
Recoveries	22,359	21,000
Provision (recapture) for loan losses	53,156	(25,522)
Ending balance	$ 25,160	$ 21,033
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	$ 25,160	$ 21,033
Ending balance	$ 682,193	$ 677,964
Ending balance: loans individually evaluated for impairment
Ending balance: loans collectively evaluated for impairment	$ 682,193	$ 677,964
Construction Portfolio Segment [Member]
Beginning balance	$ 0	$ 3,797
Loan charge-offs
Recoveries
Provision (recapture) for loan losses		$ (3,797)
Ending balance		$ 0
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment
Ending balance	$ 54,268	$ 56,027
Ending balance: loans individually evaluated for impairment	$ 54,268
Ending balance: loans collectively evaluated for impairment		$ 56,027
Beginning balance	$ 1,185,178	1,448,298
Loan charge-offs	(138,849)	(763,554)
Recoveries	123,603	110,434
Provision (recapture) for loan losses	(70,700)	390,000
Ending balance	$ 1,099,232	$ 1,185,178
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	$ 1,099,232	$ 1,185,178
Ending balance	83,374,259	81,421,435
Ending balance: loans individually evaluated for impairment	4,789,759	4,407,400
Ending balance: loans collectively evaluated for impairment	$ 78,584,500	$ 77,014,035

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Note 6 - Loans - Loans to Officers and Directors (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Borrowers Associated with Bank [Member]
Payments	$ (56,887)	$ (30,691)
Borrower No Longer Associated with Bank [Member]
Payments	(40,712)
Balance, beginning of year	786,325	$ 776,516
Borrowings	1,000,000	40,500
Balance, end of year	$ 1,688,726	$ 786,325

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Note 7 - Loan Servicing - Mortgage Loans Servicing Portfolio (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Finance FHLB New York	$ 125,666	$ 130,080

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Note 8 - Accrued Interest Receivable - Accrued Interest Receivable (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Loans Receivable [Member]
Accrued interest receivables	$ 249,245	$ 261,564
Investment Securities [Member]
Accrued interest receivables	116,358	165,257
Mortgage Backed Security [Member]
Accrued interest receivables	3,535	10,019
Accrued interest receivables	$ 369,138	$ 436,840

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Note 9 - Premises and Equipment (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Depreciation	$ 264,356	$ 257,153

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Note 9 - Premises and Equipment - Premises and Equipment (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Land [Member]
Property, plant and equipment, gross	$ 1,451,203	$ 1,451,203
Building [Member]
Property, plant and equipment, gross	6,864,728	6,848,967
Furniture and Fixtures [Member]
Property, plant and equipment, gross	2,054,765	2,006,454
Property, plant and equipment, gross	10,370,696	10,306,624
Accumulated depreciation	(4,080,649)	(3,816,293)
	$ 6,290,047	$ 6,490,331

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Note 11 - Deposits (Details Textual) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Time Deposits, at or Above FDIC Insurance Limit	$ 2,485,471	$ 1,884,049
Related Party Deposit Liabilities	$ 755,000	$ 957,000

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Note 11 - Deposits - Deposits Account Balances (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Range One [Member]
Certificates of deposits	$ 21,695,607	$ 26,142,514
Certificates of deposits, weighted average interest rate	0.59%	0.56%
Certificates of deposits, percent of portfolio	19.39%	23.72%
Range Two [Member]
Certificates of deposits	$ 14,773,019	$ 12,866,189
Certificates of deposits, weighted average interest rate	1.29%	1.29%
Certificates of deposits, percent of portfolio	13.21%	11.68%
Range Three [Member]
Certificates of deposits	$ 2,632,487	$ 4,310,287
Certificates of deposits, weighted average interest rate	2.23%	2.31%
Certificates of deposits, percent of portfolio	2.35%	3.91%
Non interest bearing accounts	$ 12,054,146	$ 10,733,275
Non interest bearing accounts, percent of portfolio	10.78%	9.74%
Interest bearing checking accounts	$ 23,027,846	$ 20,816,278
Interest bearing checking accounts, weighted average interest rate	0.19%	0.20%
Interest bearing checking accounts, percent of portfolio	20.59%	18.89%
Passbook savings accounts	$ 17,724,072	$ 15,415,613
Passbook savings accounts, weighted average interest rate	0.10%	0.10%
Passbook savings accounts, percent of portfolio	15.84%	13.99%
Money Market accounts	$ 19,813,982	$ 19,780,377
Money Market accounts, weighted average interest rate	0.49%	0.44%
Money Market accounts, percent of portfolio	17.71%	17.95%
Club accounts	$ 143,488	$ 133,586
Club accounts, weighted average interest rate	0.10%	0.10%
Club accounts, percent of portfolio	0.13%	0.12%
Deposits - excluding certificates of deposit	$ 72,763,534	$ 66,879,129
Deposits - excluding certificates of deposit, percent of portfolio	65.05%	60.69%
Certificates of deposits	$ 39,101,113	$ 43,318,990
Certificates of deposits, percent of portfolio	34.95%	39.31%
Total deposits	$ 111,864,647	$ 110,198,119
Total deposits, percent of porfolio	100.00%	100.00%

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Note 11 - Deposits - Scheduled Maturities of Certificates of Deposits (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
2016		$ 25,527,548
2017	$ 23,090,517	9,336,093
2018	8,181,234	3,584,198
2019	3,374,490	2,252,245
2020	2,358,507	$ 2,618,906
2021	2,096,365
	$ 39,101,113	$ 43,318,990

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Note 12 - Line of Credit from Atlantic Community Bankers Bank (Details Textual) - Atlantic Community Bankers Bank [Member] - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Long-term Line of Credit	$ 0	$ 0
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000

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Note 13 - Advances from Federal Home Loan Bank (Details Textual) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	$ 16,800,000	$ 18,088,000
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available	$ 9,586,016

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Note 13 - Advances from Federal Home Loan Bank - Advances from Federal Home Loan Bank of New York (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Maturity Date, October 19, 2016 [Member]
Interest rate	0.45%
Advances from Federal Home Loan Bank		$ 1,000,000
Maturity Date, April 18, 2016 [Member]
Interest rate	0.74%
Advances from Federal Home Loan Bank	$ 2,000,000	2,000,000
Maturity Date, October 17, 2016 [Member]
Interest rate	0.81%
Advances from Federal Home Loan Bank	$ 1,000,000	1,000,000
Advances from Federal Home Loan Bank	$ 3,000,000	$ 4,000,000

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Note 14 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Domestic Tax Authority [Member]
Operating Loss Carryforwards	$ 3,400,000
Federal and State Jurisdiction [Member] | Earliest Tax Year [Member]
Open Tax Year	2011
Federal and State Jurisdiction [Member] | Latest Tax Year [Member]
Open Tax Year	2015
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	$ 4,140,000
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	1,050,900	$ 774,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 372,800	$ 391,000

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Note 14 - Income Taxes - Components of Income tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Federal
State	$ 3,000	$ 3,000
Federal	(85,569)	(241,825)
State	29,971	(86,395)
Total	$ (52,598)	$ (325,220)

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Note 14 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Expected federal tax provision (benefit) at 34% rate	$ (24,027)	$ (325,738)
Municipal bond interest	(469)	(899)
Increase in cash surrender value of life insurance	(1,700)	(1,972)
State income tax	$ (26,402)	(64,021)
Valuation allowance for state operating loss carryforward		67,410
Total income tax (benefit)	$ (52,598)	$ (325,220)
Effective tax rate (benefit)	(74.40%)	(33.90%)

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Note 14 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) (Parentheticals)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Federal tax rate	34.00%	34.00%

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Note 14 - Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Accrued pension costs	$ 9,500	$ 7,200
Allowance for loan losses	438,935	722,503
Directors’ benefit plans	131,500	122,000
Employee stock option	32,200	18,200
FASB 158 – unrecognized transition costs	91,100	118,000
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	1,050,900	774,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 372,800	391,000
Unrealized losses on securities available-for-sale		11,000
Non accrual interest	$ 15,000	16,000
Total deferred tax assets	$ 2,141,935	2,179,903
Valuation allowance		(67,410)
Accumulated depreciation	$ (64,000)	$ (52,260)
Unrealized gains on securities available-for-sale	(11,400)
Total deferred tax liabilities	(75,400)	$ (52,260)
NET DEFERRED TAX ASSETS	$ 2,066,535	$ 2,060,233

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Note 15 - Employee Benefits (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0	$ 0
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	10.00%

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Note 16 - Board of Directors' Retirement Plan (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jan. 01, 2002
Defined Benefit Plan Monthly Retirement Benefit Percentage of Board Fees Payable			4.00%
Defined Benefit Plan Maximum Retirement Benefit Percentage of Final Fee Amount			80.00%
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year	$ 0
Pension Expense	$ 59,196	$ 30,648

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Note 16 - Board of Directors' Retirement Plan - Net Pension Expense (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Service cost	$ 18,012	$ 7,080
Interest cost	23,276	18,924
Amortization of gain	17,908	4,644
Net amortization and deferral	0	0
Net periodic pension cost	$ 59,196	$ 30,648

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Note 16 - Board of Directors' Retirement Plan - Funded Status of Defined Benefit Pension Plan (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Accumulated benefit obligation	$ 540,070	$ 558,403
Projected benefit obligation	556,522	599,324	$ 415,803
Fair value of plan assets	0	0
Unfunded projected benefit obligation	$ 556,522	$ 599,324

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Note 16 - Board of Directors' Retirement Plan - Projected Benefit Obligations (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Projected benefit obligation at beginning of year	$ 599,324	$ 415,803
Service cost	18,012	7,080
Interest cost	23,276	18,924
Actuarial (gain) loss	(48,863)	192,737
Benefits paid	(35,227)	(35,220)
Benefit obligation at end of year	$ 556,522	$ 599,324

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Note 16 - Board of Directors' Retirement Plan - Changes in Plan Assets (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair value of plan assets	$ 0	$ 0
Actual return on Plan assets	0	0
Employer contributions	35,227	35,220
Benefits paid	$ (35,227)	$ (35,220)

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Note 16 - Board of Directors' Retirement Plan - Actuarial Assumptions Used in Determining Pension Amounts (Details)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Discount rate for periodic pension cost	4.00%	4.75%
Discount rate for benefit obligation	4.25%	4.00%
Rate of increase in compensation levels and social security wage base	2.00%	2.00%
Expected long-term rate of return on plan assets

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Note 17 - Employee Stock Ownership Plan (ESOP) (Details Textual)		1 Months Ended		12 Months Ended
	Oct. 16, 2013 shares	Oct. 31, 2013 shares	Mar. 31, 2007 shares	Mar. 31, 2008 shares	Mar. 31, 2016 shares	Mar. 31, 2015 shares
ESOP Loan One [Member] | Refinanced [Member]
Maximum ESOP Loan Repayment Period	14 years
ESOP Loan One [Member]
Maximum ESOP Loan Repayment Period			20 years
Debt Instrument, Interest Rate, Stated Percentage	3.25%		8.25%
ESOP Loan Two [Member]
Maximum ESOP Loan Repayment Period	14 years
Debt Instrument, Interest Rate, Stated Percentage	3.25%
Employee Stock Ownership Plan (ESOP), Shares in ESOP			64,081		60,240	60,240
Conversion of Stock Shares Converted Ratio	0.5711
Stock Issued During Period, Shares, Employee Stock Ownership Plan	23,644	23,644		64,081

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Note 17 - Employee Stock Ownership Plan (ESOP) - Components of the ESOP (Details) - shares	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2007
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares	21,535	18,016
Unearned shares (in shares)	38,706	42,224
Total ESOP shares (in shares)	60,240	60,240	64,081

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Note 18 - Stock Based Compensation (Details Textual) - $ / shares	Oct. 16, 2013	May 19, 2008
Employee Stock Option [Member] | Equity Incentive Plan 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		80,101
Restricted Stock [Member] | Equity Incentive Plan 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		32,040
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	20,000
Share Price	$ 8
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	20.00%

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Note 18 - Stock Based Compensation - Equity Incentive Plan Activity (Details)	12 Months Ended
	Mar. 31, 2016 $ / shares shares
Restricted at the beginning of the period (in shares) | shares	16,000
Restricted at the beginning of the period (in dollars per share) | $ / shares	$ 8.69
Granted (in shares) | shares
Granted (in dollars per share) | $ / shares
Vested (in shares) | shares	4,000
Vested (in dollars per share) | $ / shares
Forfeited (in shares) | shares
Forfeited (in dollars per share) | $ / shares
Restricted at the end of the period (in shares) | shares	12,000
Restricted at the end of the period (in dollars per share) | $ / shares	$ 8.69

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Note 19 - Earnings Per Share (Details Textual)	12 Months Ended
	Mar. 31, 2016 shares
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	20,000

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Note 19 - Earnings Per Share - Earnings Per Share Reconciliation (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net (Loss)	$ (18,070)	$ (632,832)
Weighted average shares outstanding (in shares)	945,425	945,425
Adjusted average unearned ESOP shares (in shares)	(38,705)	(42,224)
Weighted average share outstanding - basic (in shares)	906,720	903,201
Adjusted weighted average shares outstanding - dilutive (in shares)	906,720	903,201
Basic loss per share (in dollars per share)	$ (0.02)	$ (0.70)
Diluted loss per share (in dollars per share)	$ (0.02)	$ (0.70)

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Note 20 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	$ 1,530,854
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	1,530,854
Fair Value, Measurements, Recurring [Member] | Federal Home Loan Bank Certificates and Obligations (FHLB) [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)		$ 489,883
Fair Value, Measurements, Recurring [Member] | Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)		489,883
Fair Value, Measurements, Recurring [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	497,247	482,558
Fair Value, Measurements, Recurring [Member] | Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	497,247	482,558
Fair Value, Measurements, Recurring [Member] | Mutual Fund Shares [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	121,992	155,074
Fair Value, Measurements, Recurring [Member] | Mutual Fund Shares [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	121,992	155,074
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	2,150,093	1,127,515
Fair Value, Measurements, Recurring [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	2,150,093	1,127,515
Certificates of Deposit [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	1,530,854
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)		489,883
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	497,247	482,558
Mutual Fund Shares [Member]
Securities available for sale:
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	121,992	155,074
Investment securities available-for-sale (amortized cost of $2,121,777 and $1,154,418 at March 31, 2016 and 2015, respectively)	$ 2,150,093	$ 1,127,515

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Note 20 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value On a Non-recurring Basis (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Impaired loans	$ 4,965,658	$ 4,521,712
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Impaired loans	4,965,658	4,521,712
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Real estate owned	1,763,628	2,433,483
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member]
Real estate owned	1,763,628	2,433,483
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Total	6,729,286
Fair Value, Measurements, Nonrecurring [Member]
Total	$ 6,729,286
Fair Value, Inputs, Level 3 [Member]
Total		6,955,195
Total		$ 6,955,195

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Note 20 - Fair Value Measurements - Valuation Processes Used to Determine Nonrecurring Fair Value Measurement Within Level 3 (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member]
Nonrecurring assets, range	7.00%	7.00%
Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member]
Nonrecurring assets, range	12.00%	12.00%
Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Nonrecurring assets, fair value	$ 4,965,658	$ 4,521,712
Market Approach Valuation Technique [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member]
Nonrecurring assets, range	7.00%	7.00%
Market Approach Valuation Technique [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member]
Nonrecurring assets, range	12.00%	12.00%
Market Approach Valuation Technique [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Nonrecurring assets, fair value	$ 1,763,628	$ 2,433,483
Fair Value, Inputs, Level 3 [Member]
Nonrecurring assets, fair value		6,955,195
Nonrecurring assets, fair value		$ 6,955,195

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Note 20 - Fair Value of Financial Instruments - Estimated Fair Value of Assets and Liabilities (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Reported Value Measurement [Member]
Cash and cash equivalents	$ 12,127,388	$ 10,450,448
Available-for-sale securities - fair value	2,121,777	1,154,418
Investment and mortgage-backed securities held to maturity	21,584,538	24,617,338
Impaired loans	82,197,809	80,146,397
Accrued interest receivables	369,138	436,840
Federal Home Loan Bank stock	253,800	306,300
Bank owned life insurance	174,252	169,252
Deposits – non-interest bearing	12,054,146	10,733,275
Deposits – interest bearing	99,810,501	99,464,844
Advances from Federal Home Loan Bank	3,000,000	4,000,000
Accrued interest payable	5,830	5,763
Advances from borrowers for taxes and insurance	433,034	320,356
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents	$ 12,127,388	$ 10,450,448
Available-for-sale securities - fair value
Investment and mortgage-backed securities held to maturity
Impaired loans
Accrued interest receivables	$ 369,138	$ 436,840
Federal Home Loan Bank stock	253,800	306,300
Bank owned life insurance	174,252	169,252
Deposits – non-interest bearing	$ 12,054,146	$ 10,733,275
Deposits – interest bearing
Advances from Federal Home Loan Bank	$ 3,000,000	$ 4,000,000
Accrued interest payable	5,830	5,763
Advances from borrowers for taxes and insurance	$ 433,034	$ 320,356
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Cash and cash equivalents
Available-for-sale securities - fair value	$ 2,150,093	$ 1,127,515
Investment and mortgage-backed securities held to maturity	$ 21,639,610	$ 24,566,903
Impaired loans
Federal Home Loan Bank stock
Deposits – non-interest bearing
Deposits – interest bearing	$ 99,899,854	$ 99,411,000
Advances from Federal Home Loan Bank
Advances from borrowers for taxes and insurance
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Cash and cash equivalents
Available-for-sale securities - fair value
Investment and mortgage-backed securities held to maturity
Impaired loans	$ 84,744,000	$ 79,675,000
Accrued interest receivables
Federal Home Loan Bank stock
Bank owned life insurance
Deposits – non-interest bearing
Deposits – interest bearing
Advances from Federal Home Loan Bank
Accrued interest payable
Advances from borrowers for taxes and insurance
Estimate of Fair Value Measurement [Member]
Cash and cash equivalents	$ 12,127,388	$ 10,450,448
Available-for-sale securities - fair value	2,150,093	1,127,515
Investment and mortgage-backed securities held to maturity	$ 84,744,000	24,566,903
Impaired loans		79,675,000
Accrued interest receivables	$ 369,138	436,840
Federal Home Loan Bank stock	253,800	306,300
Bank owned life insurance	174,252	169,252
Deposits – non-interest bearing	$ 12,054,146	10,733,275
Deposits – interest bearing		99,411,000
Advances from Federal Home Loan Bank	$ 3,000,000	4,000,000
Accrued interest payable	5,830	5,763
Advances from borrowers for taxes and insurance	433,034	320,356
Available-for-sale securities - fair value	2,150,093	1,127,515
Investment and mortgage-backed securities held to maturity	21,706,150	24,566,903
Accrued interest receivables	369,138	436,840
Bank owned life insurance	174,252	169,252
Advances from Federal Home Loan Bank	3,000,000	4,000,000
Advances from borrowers for taxes and insurance	$ 433,034	$ 320,356

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Note 21 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Guarantee Obligations [Member]
Loss Contingency, Loss in Period	$ 0	$ 0

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Note 21 - Commitments and Contingencies - Outstanding Commitment to Originate Loans (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Construction [Member]
Financial instruments whose notional or contract amounts represent credit risk		$ 225,000
Unused Commercial Lines of Credit [Member]
Financial instruments whose notional or contract amounts represent credit risk	$ 1,212,000	1,425,000
Unused Home Equity Lines of Credit [Member]
Financial instruments whose notional or contract amounts represent credit risk	4,969,000	4,450,000
Personal Lines of Credit [Member]
Financial instruments whose notional or contract amounts represent credit risk	635	2,500
Family 1 to 4Residential Mortgage Commitments [Member]
Financial instruments whose notional or contract amounts represent credit risk	$ 1,232,000	1,683,000
Commercial Real Estate Mortgage Commitments [Member]
Financial instruments whose notional or contract amounts represent credit risk		1,000,000
Standby Letters of Credit 1 [Member]
Financial instruments whose notional or contract amounts represent credit risk	$ 55,000	55,000
Financial instruments whose notional or contract amounts represent credit risk	$ 7,468,635	$ 8,840,500

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Note 22 - Related Party Transactions (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Related Party Transaction, Amounts of Transaction	$ 186,985	$ 183,345

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Note 23 - Regulatory Capital - The Bank's Actual and Required Capital Amounts and Ratios (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015
Total Capital (to Risk-Weighted Assets)	$ 11,859,000	$ 11,839,000
Capital to Risk Weighted Assets	17.26%	16.97%
Total Capital (to Risk-Weighted Assets)	$ 5,498,000	$ 5,615,000
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Total Capital (to Risk-Weighted Assets)	$ 6,873,000	$ 7,019,000
Total Capital (to Risk-Weighted Assets)	10.00%	10.00%
Tier 1 Capital (to Risk-Weighted Assets)	$ 10,988,000	$ 10,958,000
Tier One Risk Based Capital to Risk Weighted Assets	15.99%	15.61%
Tier 1 Capital (to Risk-Weighted Assets)	$ 4,123,500	$ 4,211,520
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier 1 Capital (to Risk-Weighted Assets)	$ 5,498,000	$ 5,615,000
Tier 1 Capital (to Risk-Weighted Assets)	8.00%	8.00%
Tier 1 Common (to Risk-Weighted Assets)	$ 10,988,000	$ 10,958,000
Tier 1 Common (to Risk-Weighted Assets)	15.99%	15.61%
Tier 1 Common (to Risk-Weighted Assets)	$ 3,092,625	$ 3,158,640
Tier 1 Common (to Risk-Weighted Assets)	4.50%	4.50%
Tier 1 Common (to Risk-Weighted Assets)	$ 4,467,125	$ 4,562,000
Tier 1 Common (to Risk-Weighted Assets)	6.50%	6.50%
Tier 1 Capital (to Average Assets)	$ 10,988,000	$ 10,958,000
Tier One Leverage Capital to Average Assets	8.67%	8.66%
Tier 1 Capital (to Average Assets)	$ 5,068,000	$ 5,059,000
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier 1 Capital (to Average Assets)	$ 6,335,000	$ 6,324,000
Tier 1 Capital (to Average Assets)	5.00%	5.00%

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Note 24 - Regulatory Matters (Details Textual)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
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%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%		4.00%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%		6.00%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%		8.00%
Tier One Leverage Capital to Average Assets	8.67%		8.66%
Tier One Risk Based Capital to Risk Weighted Assets	15.99%		15.61%
Capital to Risk Weighted Assets	17.26%		16.97%

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Note 25 - Changes in Accumulated Other Comprehensive Income (Loss) Balances - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance as of April 1, 2015	$ (16,142)
Other comprehensive income before reclassification	33,131
Total other comprehensive income	33,131
Balance as of March 31, 2016	16,989	$ (16,142)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance as of April 1, 2015	(176,714)
Other comprehensive income before reclassification	40,063
Total other comprehensive income	40,063
Balance as of March 31, 2016	(136,651)	(176,714)
Balance as of April 1, 2015	(192,856)
Other comprehensive income before reclassification	73,194
Total other comprehensive income	73,194	(1,445)
Balance as of March 31, 2016	$ (119,662)	$ (192,856)

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Note 26 - Financial Information of Parent Company - Statement of Financial Condition (Parent Company Only) (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Parent Company [Member]
Assets
Cash and cash equivalents	$ 480,129	$ 460,783	$ 716,188
Investment in Bank	9,536,490	9,592,799
Deferred income taxes	32,219	18,130
Total non-performing assets	10,048,838	10,071,712
Stockholders’ Equity
Total stockholders’ equity	10,048,838	10,071,712
Total liabilities and stockholders’ equity	10,048,838	10,071,712
Cash and cash equivalents	12,127,388	10,450,448	3,332,639
Deferred income taxes	2,066,535	2,060,233
Total non-performing assets	129,415,025	128,572,750
Total stockholders’ equity	13,295,712	13,172,291	$ 13,752,003
Total liabilities and stockholders’ equity	$ 129,415,025	$ 128,572,750

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Note 26 - Financial Information of Parent Company - Income Statement (Parent Company Only) (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Parent Company [Member]
Interest on ESOP loan	$ 20,556	$ 21,938
Other interest income	456	706
Total income	21,012	22,644
Management fee	45,000	45,000
Compensation expense	35,220	30,216
Total expense	80,220	75,216
(Loss) before income tax benefit and equity in undistributed net loss of subsidiary	(59,208)	(52,572)
Equity in undistributed net income (loss) of subsidiary	27,549	(591,847)
Total income tax (benefit)	13,589	11,587
Net (Loss)	(18,070)	(632,832)
Interest on ESOP loan	3,600,437	3,645,438
Compensation expense	1,659,019	1,628,823
Total expense	4,006,339	4,522,920
(Loss) before income tax benefit and equity in undistributed net loss of subsidiary	(70,668)	(958,052)
Total income tax (benefit)	(52,598)	(325,220)
Net (Loss)	$ (18,070)	$ (632,832)

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Note 26 - Financial Information of Parent Company - Cash Flow Statement (Parent Company Only) (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Parent Company [Member]
Adjustments to reconcile net loss to net cash used in operating activities:
Share based compensation expense	$ 35,220	$ 30,216
Operating activities:
Net (Loss)	(18,070)	(632,832)
Undistributed net (income) loss of subsidiary	(27,549)	591,847
Increase in deferred income taxes	(14,089)	(12,087)
Net cash (used in) operating activities	$ (24,488)	(22,856)
Investing activities:
Distribution to subsidiary		(275,000)
Net cash (used in) investing activities		(275,000)
Financing activities:
Proceeds from ESOP loan	$ 43,834	42,451
Net cash provided by financing activities	43,834	42,451
Net increase (decrease) in cash and cash equivalents	19,346	(255,405)
Cash and Cash Equivalents, Beginning of Year	460,783	716,188
Cash and Cash Equivalents, End of Year	480,129	460,783
Share based compensation expense	35,220	30,216
Net (Loss)	(18,070)	(632,832)
Net cash (used in) operating activities	404,033	487,065
Net cash (used in) investing activities	493,701	5,065,783
Net cash provided by financing activities	779,206	1,564,961
Net increase (decrease) in cash and cash equivalents	1,676,940	7,117,809
Cash and Cash Equivalents, Beginning of Year	10,450,448	3,332,639
Cash and Cash Equivalents, End of Year	$ 12,127,388	$ 10,450,448