10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

FORM 10-Q

(Mark One)

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

For the quarterly period ended December 31, 2016

OR

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

For the transition period from ______________ to _____________

Commission file number: 0-55087   

DELANCO BANCORP, INC.

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

New Jersey   (State or other jurisdiction of incorporation or organization) 80-0943940  (I.R.S. Employer Identification No.)

615 Burlington Avenue, Delanco, New Jersey 08075

(Address of principal executive offices)

(856) 461-0611

(Issuer’s telephone number)

Not Applicable

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

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

Yes ☒                  No ☐

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

Yes ☒                  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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   [    ]	Smaller reporting company                [ X ]

(Do not check if a smaller reporting company)

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

As of February 9, 2017 there were 945,425 shares of the registrant’s common stock outstanding.

DELANCO BANCORP, INC.

FORM 10-Q

Index

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Statements of Financial Condition at December 31, 2016 (Unaudited) and March 31, 2016	1
	Consolidated Statements of Income for the Three and Nine Months Ended December 31, 2016 and 2015 (Unaudited)	2
	Consolidated Statements of Comprehensive Income for the Nine Months Ended December 31, 2016 (Unaudited)	3
	Consolidated Statements of Changes in Stockholders’ Equity for the Nine Months Ended December 31, 2016 (Unaudited)	4
	Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2016 and 2015 (Unaudited)	5
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	29
Signatures		30

Part I. Financial Information

Item 1. Financial Statements

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

	December 31, 2016			March 31, 2016
	(unaudited)
ASSETS
Cash and cash equivalents
Cash and amounts due from banks	$	702,565		$	585,364
Interest-bearing deposits		10,320,101			11,542,024
Total cash and cash equivalents		11,022,666			12,127,388
Investment securities:
Securities available-for-sale (amortized cost of $2,096,668 and $2,121,777 at December 31, 2016 and March 31, 2016, respectively)		2,104,869			2,150,093
Securities held-to-maturity (fair value $21,848,380 and $21,706,150 at December 31, 2016 and March 31, 2016, respectively)		22,660,982			21,584,538
Total investment securities		24,765,851			23,734,631
Loans, net of allowance for loan losses of $1,016,218 at December 31, 2016 (unaudited), $1,099,232 at March 31, 2016		83,026,561			82,197,809
Accrued interest receivable		357,367			369,138
Real estate owned		1,722,800			1,763,628
Federal Home Loan Bank, at cost		124,300			253,800
Premises and equipment, net		6,107,352			6,290,047
Deferred income taxes		2,002,800			2,066,535
Bank-owned life insurance		173,914			174,252
Other assets		262,164			437,797
Total assets	$	129,565,775		$	129,415,025
LIABILITIES
Deposits
Non-interest bearing deposits	$	11,710,881		$	12,054,146
Interest bearing deposits		103,069,451			99,810,501
Total deposits		114,780,332			111,864,647
Advances from Federal Home Loan bank		−			3,000,000
Accrued interest payable		1,109			5,830
Advance payments by borrowers for taxes and insurance		454,354			433,034
Other liabilities		898,076			815,802
Total liabilities		116,133,871			116,119,313
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at December 31, 2016 and March 31, 2016, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at December 31, 2016 and March 31, 2016	$	9,454		$	9,454
Additional paid-in capital		10,010,014			9,988,509
Retained earnings, substantially restricted		3,999,681			3,918,476
Unearned common stock held by employee stock ownership plan		(455,514	)		(501,065	)
Accumulated other comprehensive (loss)		(131,731	)		(119,662	)
Total stockholder’s equity		13,431,904			13,295,712
Total liabilities and stockholders’ equity	$	129,565,775		$	129,415,025

See Notes to the Unaudited Consolidated Financial Statements.

1

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Unaudited)

	Three Months Ended December 31,					Nine Months Ended December 31,
	2016		2015			2016			2015
INTEREST INCOME
Loans	$	875,015	$	910,027		$	2,641,794		$	2,720,113
Investment securities		144,313		161,583			460,080			495,362
Total interest income		1,019,328		1,071,610			3,101,874			3,215,475
INTEREST EXPENSE
Interest-bearing checking accounts		11,512		10,743			33,664			29,056
Passbook and money market accounts		30,158		26,624			89,850			79,198
Certificates of deposits		90,016		101,031			272,014			300,295
Federal Home Loan Bank Advances		336		5,978			5,148			19,858
Total interest expense		132,022		144,376			400,676			428,407
Net interest income		887,306		927,234			2,701,198			2,787,068
Provision (recovery)for loan losses		26,000		−			(22,000	)		10,000
Net interest income after provision for loan losses		861,306		927,234			2,723,198			2,777,068
NON-INTEREST INCOME
Gain(Loss) on sale of real estate owned		300		(1,115	)		(2,540	)		(3,096	)
Service charges		31,351		28,358			93,781			99,019
Rental income		9,597		15,969			34,632			83,898
Other		3,581		3,656			11,010			11,237
Total non-interest income		44,829		46,868			136,883			191,058
NON-INTEREST EXPENSE
Salaries and employee benefits		403,015		416,893			1,200,653			1,248,971
Advertising		3,844		7,894			15,221			17,535
Office supplies, telephone and postage		23,613		29,560			77,620			82,039
Loan expenses		6,561		14,276			40,893			62,140
Occupancy expense		146,685		155,811			440,038			462,220
Federal insurance premiums		1,247		43,083			86,673			128,669
Real estate owned loss reserve		49,000		−			62,100			48,285
Data processing expenses		61,431		61,894			188,589			181,257
ATM expenses		11,310		7,297			27,610			21,221
Bank charges and fees		20,504		20,890			64,606			63,641
Insurance and surety bond premiums		20,575		19,981			65,304			69,069
Dues and subscriptions		8,831		10,933			33,285			35,204
Professional fees		77,164		68,037			202,784			220,087
Real Estate Owned expense		31,831		59,836			93,982			200,333
Other		35,175		36,962			105,036			104,847
Total non-interest expense		900,786		953,347			2,704,394			2,945,518
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)		5,349		20,755			155,687			22,608
Income tax expense (benefit)		2,030		8,133			74,482			(12,217	)
NET INCOME		3,319		12,622			81,205			34,825
INCOME PER COMMON SHARE	$	.00	$	.01		$	0.09		$	0.04

See Notes to the Unaudited Consolidated Financial Statements.

2

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

(Unaudited)

Nine Months Ended

	December 31, 2016			December 31, 2015
Net Income	$	81,205		$	34,825
Other comprehensive loss net of tax:
Unrealized gain (Loss) on investment securities available for sale, net of deferred tax of $3,280 and $1,710 for the nine months ended		(12,069	)		4,275
Other comprehensive income (loss)		(12,069	)		4,275
Total Comprehensive Income	$	69,136		$	39,100

See Notes to the Unaudited Consolidated Financial Statements

3

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Common Stock				Additional Paid-in			Retained		Common Stock Held			Accumulated Other- Comprehensive			Total Stockholders’
	Shares		Amount		Capital			Earnings		by ESOP			Income (Loss)			Equity
Balance at March 31, 2016		945,425	$	9,454	$	9,988,509		$	3,918,476	$	(501,065	)	$	(119,662	)	$	13,295,712
Net income									81,205								81,205
Other comprehensive income, net of tax:
Change in unrealized gain on securities- available- for-sale, net of deferred income tax()														(12,069	)		(12,069	)
Employee stock option expense						26,415											26,415
Shares of common stock transferred to ESOP for services						(4,910	)				45,551						40,641
Balance at December 31, 2016		945,425	$	9,454	$	10,010,014		$	3,999,681	$	(455,514	)	$	(131,731	)	$	13,431,904

See Notes to the Unaudited Consolidated Financial Statements.

4

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended December 31,
	2016			2015
Cash flow from operating activities
Net Income (Loss)	$	81,205		$	34,825
Adjustments to reconcile net loss to net cash provided by operating activities:
ESOP amortization		45,551			33,075
Deferred income taxes		71,780			(14,468	)
Depreciation		194,432			198,048
Discount accretion net of premium amortization		(31,307	)		5,601
Provision(recovery) for loan losses		(22,000	)		10,000
Loss on sale of real estate owned		2,540			3,096
Compensation expense for stock options		21,505			23,631
Changes in operating assets and liabilities
(Increase) decrease in:
Accrued interest receivable		11,771			54,689
Other assets		175,971			79,426
Increase (decrease) in:
Accrued interest payable		(4,721	)		(5,098	)
Other liabilities		82,274			(28,331	)
Net cash provided by operating activities		629,001			394,494
Cash flows from investing activities
Proceeds of securities available for sale		525,109			524,433
Purchases of securities available for sale		(500,000	)		(1,500,000	)
Purchases of securities held-to-maturity		(19,965,000	)		(4,736,250	)
Proceeds from maturities and principal repayments of securities held-to-maturity		18,919,864			5.503,192
(Purchase) sale of investment required by law – stock in Federal Home Loan Bank		129,500			52,500
Proceeds from sale of real estate owned		466,285			470,718
Net (increase) decrease in loans		(1,234,749	)		(3,626,310	)
Purchases of premises and equipment		(11,737	)		(61,078	)
Net cash provided by(used in) investing activities		(1,670,728	)		(3,372,795	)
Cash flows from financing activities
Increase in deposits		2,915,685			2,231,916
Increase in advance payments by borrowers for taxes and insurance		21,320			87,292
(Decrease)in Federal Home Loan Bank advance		(3,000,000	)		(1,000,000	)
Net cash provided by financing activities		(62,995	)		1,319,208

5

	Nine Months Ended December 31,
	2016			2015
Net (decrease) in cash and cash equivalents	$	(1,104,722	)	$	(1,659,093	)
Cash and cash equivalents, beginning of the period		12,127,388			10,450,448
Cash and cash equivalents, end of period		11,022,666			8,791,355
Supplemental Disclosures:
Cash paid during the period for interest		402,467			443,654
Cash paid during the period for income taxes		2,500			2,500
Loans transferred to foreclosed real estate during the period		610,148			246,382
Net change in unrealized gain on securities available-for-sale net of tax		(12,069	)		4,275

See Notes to the Unaudited Consolidated Financial Statements.

6

DELANCO BANCORP, INC. AND SUBSIDIARY

Notes to the Unaudited Consolidated Financial Statements

December 31, 2016

(1) Basis of Presentation

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

The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). However, all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. Such adjustments were of a normal recurring nature. The results of operations for the three and nine month periods ended December 31, 2016 are not necessarily indicative of the results that may be expected for the entire year or any other interim period. For additional information, refer to the consolidated financial statements and footnotes thereto of the Company included in the Company’s annual report on Form 10-K for the year ended March 31, 2016.

(2) Use of Estimates

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

(3) Deferred Income Taxes

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

The calculation of deferred taxes for GAAP capital differs from the calculation of deferred taxes for regulatory capital. For regulatory capital, deferred tax assets that are dependent upon future taxable income for realization are limited to the lesser of either the amount of deferred tax assets that the institution expects to realize within one year of the calendar quarter-end date, or 10% of the Bank’s Tier I capital. As a result of this variance, our Tier I regulatory capital ratio is lower than our GAAP capital ratio by 107 basis points.

(4) Income Taxes

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

7

Tax year 2015 remains subject to examination by Federal and 2013 through 2015 by New Jersey taxing authorities. In the event the Bank is assessed for interest and/or penalties by taxing authorities, such assessed amounts will be classified in the financial statements as income tax expense.

(5) Earnings Per Share

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

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

The calculated basic and dilutive EPS are as follows:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2016		2015		2016		2015
Numerator	$	3,319	$	12,622	$	81,205	$	34,825
Denominators:
Basic shares outstanding		910,239		906,720		910,239		906,720
Effect of dilutive securities		4,252		2,222		4,252		2,222
Dilutive shares outstanding		914,491		908,942		914,491		908,942
Earnings per share:
Basic	$	0.00	$	0.01	$	0.09	$	0.04
Dilutive	$	0.00	$	0.01	$	0.09	$	0.04

8

(6) Regulatory Agreement      

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

The Agreement requires the Bank to take the following actions:

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

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

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

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

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

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

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

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

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

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

The Agreement does not require the Bank to maintain any specific minimum regulatory capital ratios. Separately, the OCC established higher individual minimum capital ratios for the Bank. Specifically, the Bank must maintain a Tier 1 capital to adjusted total assets ratio of at least 8%, a Tier 1 capital to risk-weighted assets ratio of at least 12% and a total capital to risk-weighted assets ratio of at least 13%. The Bank's ratios of Tier 1 capital to adjusted total assets, Tier 1 capital to risk-weighted assets and total capital to risk-weighted assets at December 31, 2016 were 8.96%, 16.35% and 17.61%, respectively.

9

(7) Recent Accounting Pronouncements

There was one recent amendment to an accounting pronouncements since the March 31, 2016 audited financial statements.

In August 2015, the FASB issued ASU 2015-14: Revenue from Contracts with Customers – Deferral of the Effective Date. On May 28, 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. For public business entities, the effective date was for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. In response to stakeholders’ requests to defer the effective date of the guidance in Update 2014-09 and in consideration of feedback received through extensive outreach with preparers, practitioners and users of financial statements, the Board issued proposed Accounting Standards Update, Revenue from Contracts with Customers: Deferral of the Effective Date. The amendments in this update defer the effective date of Update 2014-09 for all entities by one year. Public business entities should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company intends to comply with the effective date of this update.

(8) Fair Value of Financial Instruments

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

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

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

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

●    Level 3 Level 3 inputs are unobservable inputs.

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

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2016
Available-for-sale securities	$	−	$	2,105	$	−
March 31, 2016
Available-for-sale securities	$	−	$	2,150	$	−

10

Assets and Liabilities on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2016 and March 31, 2015 are as follows (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2016
Impaired loans	$	−	$	−	$	4,852
Real estate owned		−		−		1,723
Total	$	−	$	−	$	6,575
March 31, 2016
Impaired loans	$	−	$	−	$	4,966
Real estate owned		−		−		1,763
Total	$	−	$	−	$	6,729

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

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

As required by ASC Topic 825-10-65, the estimated fair value of financial instruments at December 31, 2016 and March 31, 2016 was as follows:

	December 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	11,023	$	11,023	$	−	$	−
Investment securities-available for sale		2,105		−		2,105		−
Investment securities-held to maturity		22,661		−		22,661		−
Loans – net		83,027		−		−		82,942
FHLB stock		124		−		−		−
Accrued interest receivable		357		357		−		−
Bank–owned life insurance		174		174		−		−
Real estate owned		1,723		−		−		1,723
Total financial assets	$	121,194	$	11,554	$	24,766	$	84,665
Financial Liabilities:
Deposits-non-interest bearing	$	11,711	$	11,711	$	−	$	−
Deposits-interest bearing		103,069		−		102,350		−
Advance payments by borrowers for taxes and insurance		454		454		−		−
Accrued interest payable		1		1		−		−
Total financial liabilities	$	115,235	$	12,166	$	102,350	$	−

11

	March 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	12,127	$	12,127	$	−	$	−
Investment securities-available for sale		2,122		−		2,150		−
Investment securities-held to maturity		21,585		−		21,640		−
Loans receivable,– net		82,198		−		−		84,744
FHLB stock		254		254		−		−
Accrued interest receivable		369		369		−		−
Bank-owned life insurance		174		174		−		−
Real estate owned		1,763		−		−		1,763
Total financial assets	$	120,592	$	12,924	$	23,790	$	86,507
Financial Liabilities:
Deposits-non-interest bearing	$	12,054	$	12,054	$	−	$	−
Deposits-interest bearing		99,811		−		99,900		−
Advances from Federal Home Loan Bank		3,000		3,000		−		−
Advance payments by borrowers for taxes and insurance		433		433		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	115,304	$	15,493	$	99,900	$	−

Off-balance sheet instruments

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

	December 31, 2016				March 31, 2016
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	8,430	$	−	$	7,469	$	−

(9) Loans

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

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

12

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

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

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

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

Loans at December 31, 2016 and March 31, 2016 are summarized as follows (dollars in thousands):

	December 31, 2016			March 31, 2016
Residential (one-to four-family) real estate	$	62,069		$	62,251
Multi-family and commercial real estate		9,902			9,569
Commercial		2,036			2,290
Home equity		8,825			8,528
Consumer		642			682
Construction		635			54
Total loans		84,109			83,374
Net deferred loan origination fees		(66	)		(77	)
Allowance for loan losses		(1,016	)		(1,099	)
Loans, net	$	83,027		$	82,198

The Bank is subject to a loans-to-one-borrower limitation of 15% of capital funds. At December 31, 2016, the loans-to-one-borrower limitation was $1.8 million; this excluded an additional 10% of adjusted capital funds or approximately $1.2 million, which may be loaned if collateralized by readily marketable securities. At December 31, 2016, 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.

13

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

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

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

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

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

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

Non-Performing Loans

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

The Bank continues to work with its borrowers where possible and is pursuing legal action where the ability to work with the borrower does not exist.  As of December 31, 2016, the Bank has entered into formal forbearance agreements with six relationships totaling $871 thousand that require current payments while the borrowers restructure their finances.

The following table represents loans by credit quality indicator at December 31, 2016 (dollars in thousands):

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	59,112	$	−	$	−	$	2,957	$	62,069
Multi-family and commercial real estate		8,552		−		174		1,176		9,902
Commercial		1,830		−		−		206		2,036
Home equity		8,781		−		−		44		8,825
Consumer		642		−		−		−		642
Construction		582		−		−		53		635
	$	79,499	$	−	$	174	$	4,436	$	84,109

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The following table represents past-due loans as of December 31, 2016 (dollars in thousands):

	30-59 Days Past Due			60- 89 Days Past Due			Greater than 90 Days Past Due			Total Past Due			Current			Total Loan Balances
Residential real estate	$	712		$	473		$	1,993		$	3,178		$	58,891		$	62,069
Multi-family and commercial real estate		−			239			694			933			8,969			9,902
Commercial		−			214			171			385			1,651			2,036
Home Equity		−			88			216			304			8,521			8,825
Consumer		3			15			−			18			624			642
Construction		−			−			−			−			635			635
Total Loans	$	715		$	1,029		$	3,074		$	4,818		$	79,291		$	84,109
Percentage of Total Loans		0.8	%		1.2	%		3.7	%		5.7	%		94.3	%		100.0	%

Impaired loans are measured based on the present value of expected future discounted cash flows, the fair value of the loan or the fair value of the underlying collateral if the loan is collateral dependent. The recognition of interest income on impaired loans is the same for non-accrual loans discussed above. At December 31, 2016, the Bank had 18 loan relationships totaling $3.3 million in non-accrual loans as compared to 18 relationships totaling $2.8 million at March 31, 2016. The average balance of impaired loans totaled $5.2 million for the nine months ended December 31, 2016 as compared to $5.0 million for the year ended March 31, 2016, and interest income recorded on impaired loans for the nine months ended December 31, 2016 totaled $125 thousand as compared to $201 thousand for the year ended March 31, 2016.

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The following table represents data on impaired loans at December 31, 2016 and March 31, 2016 (dollars in thousands):

	December 31, 2016		March 31, 2016
Impaired loans for which a valuation allowance has been provided	$	−	$	—
Impaired loans for which no valuation allowance has been provided		5,031		4,966
Total loans determined to be impaired		5,031		4,966
Allowance for loans losses related to impaired loans		−		—
Average recorded investment in impaired loans		5,246		5,054
Cash basis interest income recognized on impaired loans		125		201

The following table presents impaired loans by portfolio class at December 31, 2016 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,371	$	2,315	$	−	$	2,822	$	38
Multi-family and commercial real estate		2,167		2,146		−		2,025		71
Commercial		206		206		−		139		7
Home equity		318		311		−		200		7
Consumer		−		−		−		2		−
Construction		58		53				58		2
Total	$	5,120	$	5,031	$	−	$	5,246	$	125

The following table presents impaired loans by portfolio class at March 31, 2016 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,964	$	2,920	$	−	$	2,913	$	71
Multi-family and commercial real estate		1,938		1,935		−		1,992		117
Commercial		56		56		−		34		9
Home equity		−		−		−		39		1
Consumer		−		−		−		16		−
Construction		59		54		−		60		3
Subtotal	$	5,017	$	4,965	$	−	$	5,054	$	201

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The following table represents nonaccrual loans as of December 31, 2016 and March 31, 2016 (dollars in thousands):

	December 31, 2016			March 31, 2016
Non-accrual loans:
Residential real estate	$	1,252		$	1,333
Multi-family and commercial real estate		508			553
Commercial		206			−
Consumer		−			21
Home Equity		44			111
Construction		−			−
Total non-accrual loans		2,010			2,018
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled Debt Restructurings:
In non-accrual status:
Residential real estate	$	914		$	744
Multi-family and commercial real estate		425			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total troubled debt restructurings in non-accrual status		1,339			744
Performing under modified terms:
Residential real estate		791			787
Multi-family and commercial real estate		243			766
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		53			54
Total troubled debt restructurings performing under modified terms:		1,087			1,607
Total troubled debt restructurings		2,426			2,351
Total non-performing loans		4,436			4,369
Real estate owned		1,723			1,764
Total non-performing assets		6,159			6,133
Non-performing loans as a percentage of loans		5.27	%		5.24	%
Non-performing assets as a percentage of loans and real estate owned		7.18	%		7.20	%
Non-performing assets as percentage of total assets		4.75	%		4.74	%

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During the nine months ended December 31, 2016, the Bank experienced a $586 thousand net increase in non-accrual loans. This change reflects the downgrading of six loan relationships to non-accrual status totaling $1.3 million during the nine months ended December 31, 2016. The downgraded loans consisted of two residential mortgages totaling $486 thousand, three commercial loan relationships consisting of five loans totaling $612 thousand and one home equity loan totaling $172 thousand. These additions to the non-accruals were offset by one residential mortgage loan for $100 thousand and one home equity loan for $77 thousand that returned to accruing status; one commercial loan for $40 thousand that was charged off and two residential mortgages totaling $468 thousand that were transferred to real estate owned.

The following table presents troubled debt restructurings that occurred during the periods ended December 31, 2016 and March 31, 2016 and loans modified as troubled debt restructurings within the previous 9 and 12 month periods and for which there was a payment default during the period.

	December 31, 2016						March 31, 2016
			Outstanding Recorded Investment						Outstanding Recorded Investment
	Number of Contracts		Pre- Modification		Post- Modification		Number of Contracts		Pre- Modification		Post- Modification
Troubled debt restructurings:
Residential real estate		1		77		95		1	$	164	$	173

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

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

	December 31, 2016			March 31, 2016
Balance, beginning of period	$	1,764		$	2,433
Additions from loan foreclosures		610			332
Additions from capitalized costs		9			−
Dispositions of REO		(595	)		(752	)
Gain (loss) on sale of REO		(3	)		(3	)
Valuation adjustments in the period		(62	)		(246	)
Balance, end of period	$	1,723		$	1,764

The following table presents the changes in fair value adjustments to REO for the periods ended December 31, 2016 and March 31, 2016:

	December 31, 2016			March 31, 2016
Balance, beginning of period	$	227		$	851
Valuation adjustments added in the period		62			247
Valuation adjustments on disposed properties during the period		(185	)		(871	)
Balance, end of period	$	104		$	227

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

	December 31, 2016			March 31, 2016
Balance at beginning of period	$	1,099		$	1,185
Provision:
Commercial		(40	)		(12	)
Commercial real estate		(23	)		9
Residential real estate		87			(132	)
Home Equity		(13	)		11
Consumer		(35	)		53
Construction		2			−
Total provision		(22	)		(71	)
Charge-offs:
Commercial		−			−
Commercial real estate		71			17
Residential real estate		102			40
Home equity		−			11
Consumer		−			71
Recoveries		(112	)		(124	)
Total Net Charge-Offs	$	61		$	15
Balance at end of period	$	1,016		$	1,099
Period-end loans outstanding	$	84,109		$	83,374
Average loans outstanding	$	83,416		$	83,666
Allowance as a percentage of period-end loans		1.21	%		1.32	%
Net charge-offs as a percentage of average loans		0.07	%		0.02	%

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Additional details for changes in the allowance for loan by loan portfolio as of December 31, 2016 are as follows (dollars in thousands):

Allowance for Loan Losses

	Commercial			Commercial Real Estate			Residential Real Estate			Home Equity			Consumer			Construction		Total
Balance, beginning of year	$	80		$	339		$	568		$	87		$	25		$	−	$	1,099
Loan charge-offs		−			(71	)		(102	)		−			−			−		(173	)
Recoveries		28			48			8			−			28			−		112
Provision for loan losses		(40	)		(23	)		87			(13	)		(35	)		2		(22	)
Balance, end of period	$	68		$	293		$	561		$	74		$	18		$	2	$	1,016
Ending balance for loans individually evaluated for impairment	$	133		$	1,666		$	2,455		$	545		$	−		$	53	$	4,852
Ending balance for loans collectively evaluated for impairment		1,903			8,236			59,614			8,280			642			582	$	79,257
Loans receivable:
Ending balance	$	2,036		$	9,902		$	62,069		$	8,825		$	642		$	635	$	84,109
Ending balance: loans individually evaluated for impairment	$	133		$	1,666		$	2,455		$	545		$	−		$	53	$	4,852
Ending balance: loans collectively evaluated for impairment	$	1,903		$	8,236		$	59,614		$	8,280		$	642		$	582	$	79,257

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

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

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

For the nine months ending December 31, 2016, the Bank experienced one full charge-off relating to one loan relationship totaling $40 thousand, one partial charge-off related to one relationship totaling $31 thousand and two charge-offs on two properties when they were transferred to real estate owned totaling $102 thousand as compared to one charge-off relating to one loan relationships totaling $71 thousand and partial charge-offs relating to three loan relationships totaling $68 thousand for the year ended March 31, 2016.

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At December 31, 2016, the Bank maintained an allowance for loan loss ratio of 1.21% to loans outstanding. Non-performing assets have increased by $26 thousand over their stated levels at March 31, 2016, representing a non-performing asset to total asset ratio of 4.75% at December 31, 2016 as compared to a non-performing asset to total asset ratio of 4.74% at March 31, 2016. 

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

(10) Investment Securities

Investment securities have been classified according to management’s intent. The amortized cost of securities and their approximate fair values as of December 31, 2016 and March 31, 2016 are as follows:

	Held-to-Maturity December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Farm Credit Bank Bond	$	8,065	$	−	$	(324	)	$	7,741
Federal Home Loan Bank Bonds		8,353		−		(368	)		7,985
Federal Home Loan Mortgage Corporation Bonds		1,000		−		(55	)		945
Federal National Mortgage Association		3,000		−		(107	)		2,893
Municipal Bond		1,536		−		(4	)		1,532
		21,954		−		(858	)		21,096
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		245		11		−			256
Federal National Mortgage Association		329		30		−			359
Government National Mortgage Corporation		133		4		−			137
		707		45		−			752
Total	$	22,661	$	45	$	(858	)	$	21,848

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	Held-to-Maturity March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Home Loan Bank Bonds	$	5,802	$	28	$	(4	)	$	5,826
Federal Farm Credit Bonds		9,438		21		(1	)		9,458
Federal Home Loan Mortgage Corporation Bonds		732		−		−			732
Federal National Mortgage Association Bond		4,000		17					4,017
Municipal Bond		736				(1	)		735
		20,708		66		(6	)		20,768
Mortgage-backed securities:
Federal Home Loan Mortgage Corporation		322		26		(8	)		340
Federal National Mortgage Association		398		40		(3	)		435
Government National Mortgage Corporation		157		7		(1	)		163
		877		73		(12	)		938
Total	$	21,585	$	139	$	(18	)	$	21,706

	Available for Sale December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificates of Deposit	$	2,000	$	10	$	−		$	2,010
Mutual Fund Shares		97		−		(2	)		95
	$	2097	$	10	$	(2	)	$	2,105

	Available-for-Sale
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal National Mortgage Association	$	500	$	−	$	(3	)	$	497
Certificates of Deposit		1,500		31		−			1,531
Mutual Fund Shares		122		2		(2	)		122
Total	$	2,122	$	33	$	(5	)	$	2,150

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The following is a summary of maturities of securities held-to-maturity and available-for-sale as of December 31, 2016 and March 31, 2016:

	December 31, 2016
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,536	$	1,532	$	−	$	−
After one year through five years		500		496		2,000		2,010
After five years through ten years		8,576		8,287		−		−
After ten years		12,049		11,533		−		−
Equity securities		−		−		97		95
	$	22,661	$	21,848	$	2,097	$	2,105

	March 31, 2015
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	736	$	735	$	−	$	−
After one year through five years		945		945		1,000		1,025
After five years through ten years		8,380		8,384		1,000		1,003
After ten years		11,524		11,642		−		−
Equity securities		−		−		122		122
	$	21,585	$	21,706	$	2,122	$	2,150

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 December 31, 2016 and March 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
December 31, 2016	Value		Losses			Value		Losses		Value		Losses
Federal Farm Credit Bonds	$	7,741	$	(324	)	$	−	$	−	$	7,741	$	(324	)
Federal Home Loan Bank Bond		7,985		(368	)		−		−		7,985		(368	)
Federal National Mortgage Association		2,893		(107	)		−		−		2,893		(107	)
Federal Home Loan Mortgage Corporation Bond		945		(55	)		−		−		945		(55	)
Municipal bonds		1,536		(4	)		−		−		1,536		(4	)
Total	$	21,100	$	(858	)	$	−	$	−	$	21,100	$	(858	)

23

	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	$	( 4	)	$	496	$	( 4	)
Federal Farm Credit Bonds		−		−			499		( 1	)		499		( 1	)
Federal National Mortgage Association		−		−			497		( 3	)		497		( 3	)
Municipal Bonds		735		( 1	)		−		−			735		( 1	)
Mutual fund shares		−		−			64		( 2	)		64		( 2	)
		735		( 1	)		1,556		( 10	)		2,291		( 11	)
Mortgage –Backed Securities:
Federal Home Loan Mortgage Corporation		−		−			103		(8	)		103		(8	)
Federal national Mortgage Association		−		−			154		(3	)		154		(3	)
Government national Mortgage Association		−		−			22		(1	)		22		(1	)
		−		−			279		(12	)		279		(12	)
Total	$	735	$	(1	)	$	1,835	$	(22	)	$	2,570	$	(23	)

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

At December 31, 2016, the 42 debt securities with unrealized losses have depreciated 3.9% from the Bank’s amortized cost basis. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other-than-temporary.

24

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

Management’s discussion and analysis of the financial condition and results of operations at and for the three and nine months ended December 31, 2016 and 2015 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the Unaudited Financial Statements and the notes thereto, appearing in Part I, Item 1 of this report.

Forward-Looking Statements

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

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

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

General

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

Balance Sheet Analysis

Overview. Total assets at December 31, 2016 were $129.6 million, an increase of $200 thousand from total assets of $129.4 million at March 31, 2016. There was no change in the total liabilities of $116.1 million for the period ending December 31, 2016 and March 31, 2016. Total stockholders’ equity increased $100 thousand to $13.4 million at December 31, 2015, primarily due to net income and a decrease in unearned common stock held by the Bank’s ESOP.

Loans. At December 31, 2016, total loans, net, were $83.0 million, or 64.0% of total assets. Overall loans increased by $829 thousand during the nine months ended December 31, 2016, primarily due to the origination of new loans. Construction loans increased by $581 thousand, commercial and multi-family real estate loans by $333 thousand and home equity loans by $297 thousand while residential real estate loans decreased by $182 thousand and commercial loans by $254 thousand.

Total nonperforming loans at December 31, 2016 increased $67 thousand from March 31, 2016 primarily due to one residential mortgage in the amount of $95 thousand that was restructured during the period and is considered non-performing.

Securities. The investment securities portfolio was $24.8 million, or 19.1% of total assets, at December 31, 2016. At that date, 2.9% of the investment portfolio was invested in mortgage-backed securities, 8.1% was invested in certificates of deposit while the remainder was invested primarily in U.S. Government agency and other debt securities. Investment securities increased $1.1 million compared to March 31, 2016.

25

Deposits. Total deposits were $114.8 million at December 31, 2016, an increase of $2.9 million compared to March 31, 2016. Deposits increased as we made a conscious effort to attract core deposits and reduce our reliance on high costing time deposits. Core deposits grew for the nine months ended December 31, 2016 by $9.3 million while time deposits decreased by $4.7 million.

Results of Operations for the Three and Nine Months Ended December 31, 2016 and 2015

Financial Highlights.  Net income for the three and nine months ended December 31, 2016 was $3 thousand and $81 thousand, respectively as compared to $13 thousand and $35 thousand for the same prior year periods. The increase in net income for the nine months ended December 31, 2016 was primarily the result of decrease in additional provisions to loan loss reserves and the real estate owned loss reserve and salaries and employee benefits.

Net Interest Income.   Net interest income decreased $40 thousand to $887 thousand for the three months and decreased $86 thousand to $2.7 million for the nine months ended December 31, 2016. The Bank saw an increase in the interest rate spread (7 basis point) and a decrease in net interest margin (9 basis points) for the nine month period. Total interest income decreased 52 thousand for the three months ending December 31, 2016 compared to the three months ended December 31, 2015. Interest income declined 3.5% for the nine months ending December 31, 2016 compared to the nine months ended December 31, 2015. Total interest expense decreased by 8.6% between the three month period and 6.5% for the nine month period ending December 31, 2016.

Average loans in the nine months ended December 31, 2016 increased $390 thousand, or 0.5%, compared with the same period in 2015, as new originations were slightly higher than payoffs and amortization of the portfolio as well as the conversion of non-performing loans into real estate owned. Average investment securities in the nine months ended December 31, 2016 decreased $3.8 million, or 14.8%, compared to the same period in 2015. The decrease in the investment portfolio was due to calls of debt securities due to the low interest rate environment during the period. Declining interest rates offset by the increase in outstanding balances in the loan portfolio resulted in an average yield on earning assets of 3.51% for the nine months ended December 31, 2016 and 2015.

Average interest-bearing deposits in the nine months ended December 31, 2016 increased $2.8 million or 2.8%, compared with the same period in 2015. Interest rates decreased the average cost of deposits to 0.52%, compared with 0.55% for the same period in 2015.

Provision for Loan Losses.  The allowance for loan losses is a valuation allowance for probable losses inherent in the loan portfolio.  We evaluate the need to establish allowances against losses on loans on a quarterly basis.  When additional allowances are necessary, a provision for loan losses is charged to earnings.  Provisions for loan losses were $26 thousand in the three months and a recovery of $22 thousand in the nine months ended December 31, 2016 compared to $0 in the three months and $10 thousand in the nine months ended December 31, 2015.  We had $77 thousand in charge-offs in the three months and $173 thousand in the nine months ended December 31, 2016, compared to $0 thousand and $122 thousand in charge-offs in the same prior year periods. We had recoveries to the allowance of $25 thousand in the three months and $112 thousand in the nine months ended December 31, 2016 as compared to $46 thousand and $101 thousand in recoveries in the same prior year period.

Non-Interest Income.  Non-interest income decreased $2 thousand in the three month period ending December 31, 2016 compared to the three month period ended December 31, 2015, primarily due to a decrease in rental income on real estate owned in the period versus the previous year. Non-interest income decreased $54 thousand in the nine months ended December 31, 2016 compared to the same period in the prior year, primarily due to the decrease in rental income on real estate owned.

Non-Interest Expenses.  Non-interest expenses decreased $53 thousand in the three months ending December 31, 2016 compared to the three months ended December 31, 2015 primarily due to a decrease in Federal insurance premium but was partially offset by the increase in the real estate owned loss reserve provision of $49 thousand over the prior period. Non-interest expense decreased in the nine months ended December 31, 2016 by $241 thousand over the same period in the prior year primarily due to the decreases in real estate owned expense, Federal insurance premium, and salaries and employee benefits.

26

 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 December 31, 2016, cash and cash equivalents totaled $11.0 million. At December 31, 2016, we had no outstanding borrowings and had arrangements to borrow up to $10.4 million from the Federal Home Loan Bank of New York and $1 million from Atlantic Central Bankers Bank.

At December 31, 2016, substantially all of our investment securities were classified as held to maturity. We have classified our investments in this manner, rather than as available for sale, because they were purchased primarily to provide a source of income and not to provide liquidity. We anticipate that a portion of future investments will be classified as available for sale in order to give us greater flexibility in the management of our investment portfolio.

A significant use of our liquidity is the funding of loan originations. At December 31, 2016, we had $2.7 million in outstanding loan commitments. In addition we had $336 thousand in unfunded construction loans and $5.3 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 December 31, 2016 totaled $21.8 million, or 56.5% of certificates of deposit. The large percentage of certificates of deposit that mature within one year reflects customers’ hesitancy to invest their funds for long periods in the recent low interest rate environment. If these maturing deposits do not remain with us, we will be required to seek other sources of funds, including other certificates of deposit and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before December 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.

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

The Company is a separate entity and apart from the Bank and must provide for its own liquidity. As of December 31, 2016, the Company had $399 thousand in cash and cash equivalents compared to $480 thousand as of December 31, 2015.  Substantially all of the Company’s cash and cash equivalents were obtained from proceeds it retained from the Bank’s mutual-to-stock conversion completed in October 2013. In addition to its operating expenses, Company may utilize its cash position for the payment of dividends or to repurchase common stock, subject to applicable restrictions.   

27

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

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

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

For the quarter ended December 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 3.   Quantitative and Qualitative Disclosures About Market Risk

Not applicable as the Company is a smaller reporting company.

Item 4.   Controls and Procedures

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

Part II. Other Information

Item 1.   Legal Proceedings

Delanco Bancorp is not involved in any pending legal proceedings. Delanco Federal Savings Bank is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings, in the aggregate, are believed by management to be immaterial to its financial condition and results of operations.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016, which could materially and adversely affect the Company’s business, financial condition or future results. The risks described in the Company’s Form 10-K are not the only risks that the Company faces. Additional risks and uncertainties not currently known to the Company or that that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.

28

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

Not Applicable.

Item 3.   Defaults upon Senior Securities

Not Applicable.

Item 4.   Mine Safety Disclosures.

Not Applicable.

Item 5.   Other Information

None.

Item 6.   Exhibits

3.1	Certificate of Incorporation(1)
3.2	Bylaws(2)
4.0	Form of Specimen Stock Certificate(3)
31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.0	Section 1350 Certification
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 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 Comprehensive Income (Loss); (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to the Consolidated Financial Statements.

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

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

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

29

Signatures

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

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

30

EX-31.1

Exhibit 31.1

Certification

I, James E. Igo, certify that:

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

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

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

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

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

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

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

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

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

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

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

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

EX-31.2

Exhibit 31.2

Certification

I, Eva Modi, certify that:

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

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

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

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

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

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

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

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

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

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

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

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

EX-32.0

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADDED BY

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Delanco Bancorp, Inc. (the “Company”) on Form 10-Q for the quarterly period ended December 31, 2016, as filed with the Securities and Exchange Commission (the “Report”), we hereby certify pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

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

XML

Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Feb. 09, 2017
Document Information [Line Items]
Entity Registrant Name	Delanco Bancorp, Inc.
Entity Central Index Key	0001577603
Trading Symbol	dlno
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		945,425
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
ASSETS
Cash and amounts due from banks	$ 702,565	$ 585,364
Interest-bearing deposits	10,320,101	11,542,024
Total cash and cash equivalents	11,022,666	12,127,388
Securities available-for-sale (amortized cost of $2,096,668 and $2,121,777 at December 31, 2016 and March 31, 2016, respectively)	2,104,869	2,150,093
Securities held-to-maturity (fair value $21,848,380 and $21,706,150 at December 31, 2016 and March 31, 2016, respectively)	22,660,982	21,584,538
Total investment securities	24,765,851	23,734,631
Loans, net of allowance for loan losses of $1,016,218 at December 31, 2016 (unaudited), $1,099,232 at March 31, 2016	83,026,561	82,197,809
Accrued interest receivable	357,367	369,138
Real estate owned	1,722,800	1,763,628
Federal Home Loan Bank, at cost	124,300	253,800
Premises and equipment, net	6,107,352	6,290,047
Deferred income taxes	2,002,800	2,066,535
Bank-owned life insurance	173,914	174,252
Other assets	262,164	437,797
Total assets	129,565,775	129,415,025
LIABILITIES
Non-interest bearing deposits	11,710,881	12,054,146
Interest bearing deposits	103,069,451	99,810,501
Total deposits	114,780,332	111,864,647
Advances from Federal Home Loan bank		3,000,000
Accrued interest payable	1,109	5,830
Advance payments by borrowers for taxes and insurance	454,354	433,034
Other liabilities	898,076	815,802
Total liabilities	116,133,871	116,119,313
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at December 31, 2016 and March 31, 2016, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at December 31, 2016 and March 31, 2016	9,454	9,454
Additional paid-in capital	10,010,014	9,988,509
Retained earnings, substantially restricted	3,999,681	3,918,476
Unearned common stock held by employee stock ownership plan	(455,514)	(501,065)
Accumulated other comprehensive (loss)	(131,731)	(119,662)
Total stockholder’s equity	13,431,904	13,295,712
Total liabilities and stockholders’ equity	$ 129,565,775	$ 129,415,025

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) (Parentheticals) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Securities available-for-sale, amortized cost	$ 2,096,668	$ 2,121,777
Securities available-for-sale, fair value	21,848,380	21,706,150
Allowance for loan losses	$ 1,016,218	$ 1,099,232
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	945,425	945,425
Common stock, shares outstanding (in shares)	945,425	945,425

XML

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
INTEREST INCOME
Loans	$ 875,015	$ 910,027	$ 2,641,794	$ 2,720,113
Investment securities	144,313	161,583	460,080	495,362
Total interest income	1,019,328	1,071,610	3,101,874	3,215,475
INTEREST EXPENSE
Interest-bearing checking accounts	11,512	10,743	33,664	29,056
Passbook and money market accounts	30,158	26,624	89,850	79,198
Certificates of deposits	90,016	101,031	272,014	300,295
Federal Home Loan Bank Advances	336	5,978	5,148	19,858
Total interest expense	132,022	144,376	400,676	428,407
Net interest income	887,306	927,234	2,701,198	2,787,068
Provision (recovery)for loan losses	26,000		(22,000)	10,000
Net interest income after provision for loan losses	861,306	927,234	2,723,198	2,777,068
NON-INTEREST INCOME
Gain (loss) on sale of REO	300	(1,115)	(2,540)	(3,096)
Service charges	31,351	28,358	93,781	99,019
Rental income	9,597	15,969	34,632	83,898
Other	3,581	3,656	11,010	11,237
Total non-interest income	44,829	46,868	136,883	191,058
NON-INTEREST EXPENSE
Salaries and employee benefits	403,015	416,893	1,200,653	1,248,971
Advertising	3,844	7,894	15,221	17,535
Office supplies, telephone and postage	23,613	29,560	77,620	82,039
Loan expenses	6,561	14,276	40,893	62,140
Occupancy expense	146,685	155,811	440,038	462,220
Federal insurance premiums	1,247	43,083	86,673	128,669
Real estate owned loss reserve	49,000		62,100	48,285
Data processing expenses	61,431	61,894	188,589	181,257
ATM expenses	11,310	7,297	27,610	21,221
Bank charges and fees	20,504	20,890	64,606	63,641
Insurance and surety bond premiums	20,575	19,981	65,304	69,069
Dues and subscriptions	8,831	10,933	33,285	35,204
Professional fees	77,164	68,037	202,784	220,087
Real Estate Owned expense	31,831	59,836	93,982	200,333
Other	35,175	36,962	105,036	104,847
Total non-interest expense	900,786	953,347	2,704,394	2,945,518
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)	5,349	20,755	155,687	22,608
Income tax expense (benefit)	2,030	8,133	74,482	(12,217)
NET INCOME	$ 3,319	$ 12,622	$ 81,205	$ 34,825
INCOME PER COMMON SHARE (in dollars per share)	$ 0	$ 0.01	$ 0.09	$ 0.04

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Net Income (Loss)	$ 81,205	$ 34,825
Unrealized gain (Loss) on investment securities available for sale, net of deferred tax of $3,280 and $1,710 for the nine months ended	(12,069)	4,275
Other comprehensive income (loss)	(12,069)	4,275
Total Comprehensive Income	$ 69,136	$ 39,100

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Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Unrealized gain (loss) on investment securities, deferred tax (benefit)	$ 3,280	$ 1,710

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Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - 9 months ended Dec. 31, 2016 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Employee Stock Ownership Plan [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Mar. 31, 2016	945,425
Balance at Mar. 31, 2016	$ 9,454	$ 9,988,509	$ 3,918,476	$ (501,065)	$ (119,662)	$ 13,295,712
Net income			81,205			81,205
Change in unrealized gain on securities- available- for-sale, net of deferred income tax()					(12,069)	(12,069)
Employee stock option expense		26,415				26,415
Shares of common stock transferred to ESOP for services		(4,910)		45,551		40,641
Balance (in shares) at Dec. 31, 2016	945,425
Balance at Dec. 31, 2016	$ 9,454	$ 10,010,014	$ 3,999,681	$ (455,514)	$ (131,731)	$ 13,431,904

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flow from operating activities
Net Income (Loss)	$ 81,205	$ 34,825
Adjustments to reconcile net loss to net cash provided by operating activities:
ESOP amortization	45,551	33,075
Deferred income taxes	71,780	(14,468)
Depreciation	194,432	198,048
Discount accretion net of premium amortization	(31,307)	5,601
Provision (recovery)for loan losses	(22,000)	10,000
Loss on sale of real estate owned	2,540	3,096
Compensation expense for stock options	21,505	23,631
(Increase) decrease in:
Accrued interest receivable	11,771	54,689
Other assets	175,971	79,426
Increase (decrease) in:
Accrued interest payable	(4,721)	(5,098)
Other liabilities	82,274	(28,331)
Net cash provided by operating activities	629,001	394,494
Cash flows from investing activities
Proceeds of securities available for sale	525,109	524,433
Purchases of securities available for sale	(500,000)	(1,500,000)
Purchases of securities held-to-maturity	(19,965,000)	(4,736,250)
Proceeds from maturities and principal repayments of securities held-to-maturity	18,919,864	5,503,192
(Purchase) sale of investment required by law – stock in Federal Home Loan Bank	129,500	52,500
Proceeds from sale of real estate owned	466,285	470,718
Net (increase) decrease in loans	(1,234,749)	(3,626,310)
Purchases of premises and equipment	(11,737)	(61,078)
Net cash provided by(used in) investing activities	(1,670,728)	(3,372,795)
Cash flows from financing activities
Increase in deposits	2,915,685	2,231,916
Increase in advance payments by borrowers for taxes and insurance	21,320	87,292
(Decrease)in Federal Home Loan Bank advance	(3,000,000)	(1,000,000)
Net cash provided by financing activities	(62,995)	1,319,208
Net (decrease) in cash and cash equivalents	(1,104,722)	(1,659,093)
Cash and cash equivalents, beginning of the period	12,127,388	10,450,448
Cash and cash equivalents, end of period	11,022,666	8,791,355
Supplemental Disclosures:
Cash paid during the period for interest	402,467	443,654
Cash paid during the period for income taxes	2,500	2,500
Loans transferred to foreclosed real estate during the period	610,148	246,382
Net change in unrealized gain on securities available-for-sale net of tax	$ (12,069)	$ 4,275

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Note 1 - Basis of Presentation

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Basis of Accounting [Text Block]

(1) Basis of Presentation

On

October

16,

2013,

Delanco Bancorp, Inc., a New Jersey corporation (the “Company”), became the holding company for Delanco Federal Savings Bank (the “Bank”) upon completion of the

“second

-step” conversion of the Bank from a mutual holding company structure to a stock holding company structure (the “Conversion”). The Conversion involved the sale by the Company of

525,423

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

420,002

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

$3,280,000,

net of costs of

$923,000.

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

10

-Q and, therefore, do not include all disclosures necessary for a complete presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). However, all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. Such adjustments were of a normal recurring nature. The results of operations for the

three

and

nine

month periods ended

December

31,

2016

are not necessarily indicative of the results that

may

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

10

-K for the year ended

March

31,

2016.

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Note 2 - Use of Estimates

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Use of Estimates [Text Block]

(2) Use of Estimates

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

XML

Note 3 - Deferred Income Taxes

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(4) Income Taxes

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

740

“Accounting for Uncertainty in Income Taxes”. ASC Topic

740

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

740

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

no

significant uncertain tax positions requiring recognition in its financial statements.   

Tax year

2015

remains subject to examination by Federal and

2013

through

2015

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

.

Deferred Income Taxes [Member]

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(3) Deferred Income Taxes

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

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

one

year of the calendar quarter-end date, or

10%

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

107

basis points.

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Note 4 - Income Taxes

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(4) Income Taxes

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

740

“Accounting for Uncertainty in Income Taxes”. ASC Topic

740

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

740

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

no

significant uncertain tax positions requiring recognition in its financial statements.   

Tax year

2015

remains subject to examination by Federal and

2013

through

2015

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

.

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Note 5 - Earnings Per Share

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

(5) Earnings Per Share

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

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

The calculated basic and dilutive EPS are as follows:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2016		2015		2016		2015
Numerator	$	3,319	$	12,622	$	81,205	$	34,825
Denominators:
Basic shares outstanding		910,239		906,720		910,239		906,720
Effect of dilutive securities		4,252		2,222		4,252		2,222
Dilutive shares outstanding		914,491		908,942		914,491		908,942
Earnings per share:
Basic	$	0.00	$	0.01	$	0.09	$	0.04
Dilutive	$	0.00	$	0.01	$	0.09	$	0.04

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Note 6 - Regulatory Agreement

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

(6) Regulatory Agreement      

On

December

17,

2012,

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

November

21,

2012.

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

March

17,

2010.

The Agreement requires the Bank to take the following actions:

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

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

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

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

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

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

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

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

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

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

The Agreement does not require the Bank to maintain any specific minimum regulatory capital ratios. Separately, the OCC established higher individual minimum capital ratios for the Bank. Specifically, the Bank must maintain a Tier

1

capital to adjusted total assets ratio of at least

8%,

a Tier

1

capital to risk-weighted assets ratio of at least

12%

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

13%.

The Bank's ratios of Tier

1

capital to adjusted total assets, Tier

1

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

December

31,

2016

were

8.96%,

16.35%

and

17.61%,

respectively.

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Note 7 - Recent Accounting Pronouncements

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

(7) Recent Accounting Pronouncements

There was

one

recent amendment to an accounting pronouncements since the

March

31,

2016

audited financial statements.

In

August

2015,

the FASB issued ASU

2015

-

14:

Revenue from Contracts with Customers – Deferral of the Effective Date. On

May

28,

2014,

the FASB issued Accounting Standards Update No.

2014

-

09,

Revenue from Contracts with Customers. For public business entities, the effective date was for annual reporting periods beginning after

December

15,

2016,

including interim periods within that reporting period. In response to stakeholders’ requests to defer the effective date of the guidance in Update

2014

-

09

and in consideration of feedback received through extensive outreach with preparers, practitioners and users of financial statements, the Board issued proposed Accounting Standards Update, Revenue from Contracts with Customers: Deferral of the Effective Date. The amendments in this update defer the effective date of Update

2014

-

09

for all entities by

one

year. Public business entities should apply the guidance in Update

2014

-

09

to annual reporting periods beginning after

December

15,

2017,

including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after

December

15,

2016,

including interim reporting periods within that reporting period. The Company intends to comply with the effective date of this update.

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Note 8 - Fair Value of Financial Instruments

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Fair Value, Measurement Inputs, Disclosure [Text Block]

(8) Fair Value of Financial Instruments

ASC Topic

820

-

10

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

820

does not require any new fair value measurements. The adoption of ASC Topic

820

-

10

did not have a material impact on the consolidated financial statements.

ASC Topic

820

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

three

broad levels, as described below:

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

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

●    Level 3 Level 3 inputs are unobservable inputs.

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

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2016
Available-for-sale securities	$	−	$	2,105	$	−
March 31, 2016
Available-for-sale securities	$	−	$	2,150	$	−

Assets and Liabilities on a Non-Recurring Basis

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

December

31,

2016

and

March

31,

2015

are as follows (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2016
Impaired loans	$	−	$	−	$	4,852
Real estate owned		−		−		1,723
Total	$	−	$	−	$	6,575
March 31, 2016
Impaired loans	$	−	$	−	$	4,966
Real estate owned		−		−		1,763
Total	$	−	$	−	$	6,729

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

may

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

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

As required by ASC Topic

825

-

10

-

65,

the estimated fair value of financial instruments at

December

31,

2016

and

March

31,

2016

was as follows:

	December 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	11,023	$	11,023	$	−	$	−
Investment securities-available for sale		2,105		−		2,105		−
Investment securities-held to maturity		22,661		−		22,661		−
Loans – net		83,027		−		−		82,942
FHLB stock		124		−		−		−
Accrued interest receivable		357		357		−		−
Bank–owned life insurance		174		174		−		−
Real estate owned		1,723		−		−		1,723
Total financial assets	$	121,194	$	11,554	$	24,766	$	84,665
Financial Liabilities:
Deposits-non-interest bearing	$	11,711	$	11,711	$	−	$	−
Deposits-interest bearing		103,069		−		102,350		−
Advance payments by borrowers for taxes and insurance		454		454		−		−
Accrued interest payable		1		1		−		−
Total financial liabilities	$	115,235	$	12,166	$	102,350	$	−

	March 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	12,127	$	12,127	$	−	$	−
Investment securities-available for sale		2,122		−		2,150		−
Investment securities-held to maturity		21,585		−		21,640		−
Loans receivable,– net		82,198		−		−		84,744
FHLB stock		254		254		−		−
Accrued interest receivable		369		369		−		−
Bank-owned life insurance		174		174		−		−
Real estate owned		1,763		−		−		1,763
Total financial assets	$	120,592	$	12,924	$	23,790	$	86,507
Financial Liabilities:
Deposits-non-interest bearing	$	12,054	$	12,054	$	−	$	−
Deposits-interest bearing		99,811		−		99,900		−
Advances from Federal Home Loan Bank		3,000		3,000		−		−
Advance payments by borrowers for taxes and insurance		433		433		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	115,304	$	15,493	$	99,900	$	−

Off-balance sheet instruments

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

	December 31, 2016				March 31, 2016
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	8,430	$	−	$	7,469	$	−

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Note 9 - Loans

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

(9) Loans

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

Residential real estate loans consist of loans secured by

one

to

four

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

one

to

four

family residential mortgage loans in amounts up to

80%

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

30

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

30

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

may

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

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

80%

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

5

to

7

years with principal amortization of up to

25

years.

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

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

one

year.

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

first

or

second

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

first

or

second

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

80%

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

Loans at

December

31,

2016

and

March

31,

2016

are summarized as follows (dollars in thousands):

	December 31, 2016			March 31, 2016
Residential (one-to four-family) real estate	$	62,069		$	62,251
Multi-family and commercial real estate		9,902			9,569
Commercial		2,036			2,290
Home equity		8,825			8,528
Consumer		642			682
Construction		635			54
Total loans		84,109			83,374
Net deferred loan origination fees		(66	)		(77	)
Allowance for loan losses		(1,016	)		(1,099	)
Loans, net	$	83,027		$	82,198

The Bank is subject to a loans-to-

one

-borrower limitation of

15%

of capital funds. At

December

31,

2016,

the loans-to-

one

-borrower limitation was

$1.8

million; this excluded an additional

10%

of adjusted capital funds or approximately

$1.2

million, which

may

be loaned if collateralized by readily marketable securities. At

December

31,

2016,

there were no loans outstanding or committed to any

one

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

one

-borrower limitations of

15%

of capital funds.

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

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

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

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

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

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

may

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

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

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

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

may

continue after the classification and potential charge-off.

Non-Performing Loans

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

ninety

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

90

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

The Bank continues to work with its borrowers where possible and is pursuing legal action where the ability to work with the borrower does not exist.  As of

December

31,

2016,

the Bank has entered into formal forbearance agreements with

six

relationships totaling

$871

thousandthat require current payments while the borrowers restructure their finances.

The following table represents loans by credit quality indicator at

December

31,

2016

(dollars in thousands):

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	59,112	$	−	$	−	$	2,957	$	62,069
Multi-family and commercial real estate		8,552		−		174		1,176		9,902
Commercial		1,830		−		−		206		2,036
Home equity		8,781		−		−		44		8,825
Consumer		642		−		−		−		642
Construction		582		−		−		53		635
	$	79,499	$	−	$	174	$	4,436	$	84,109

The following table represents past-due loans as of

December

31,

2016

(dollars in thousands):

	30-59 Days Past Due			60- 89 Days Past Due			Greater than 90 Days Past Due			Total Past Due			Current			Total Loan Balances
Residential real estate	$	712		$	473		$	1,993		$	3,178		$	58,891		$	62,069
Multi-family and commercial real estate		−			239			694			933			8,969			9,902
Commercial		−			214			171			385			1,651			2,036
Home Equity		−			88			216			304			8,521			8,825
Consumer		3			15			−			18			624			642
Construction		−			−			−			−			635			635
Total Loans	$	715		$	1,029		$	3,074		$	4,818		$	79,291		$	84,109
Percentage of Total Loans		0.8	%		1.2	%		3.7	%		5.7	%		94.3	%		100.0	%

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

December

31,

2016,

the Bank had

18

loan relationships totaling

$3.3

million in non-accrual loans as compared to

18

relationships totaling

$2.8

million at

March

31,

2016.

The average balance of impaired loans totaled

$5.2

million for the

nine

months ended

December

31,

2016

as compared to

$5.0

million for the year ended

March

31,

2016,

and interest income recorded on impaired loans for the

nine

months ended

December

31,

2016

totaled

$125

thousand as compared to

$201

thousand for the year ended

March

31,

2016

.

The following table represents data on impaired loans at

December

31,

2016

and

March

31,

2016

(dollars in thousands):

	December 31, 2016		March 31, 2016
Impaired loans for which a valuation allowance has been provided	$	−	$	—
Impaired loans for which no valuation allowance has been provided		5,031		4,966
Total loans determined to be impaired		5,031		4,966
Allowance for loans losses related to impaired loans		−		—
Average recorded investment in impaired loans		5,246		5,054
Cash basis interest income recognized on impaired loans		125		201

The following table presents impaired loans by portfolio class at

December

31,

2016

(dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,371	$	2,315	$	−	$	2,822	$	38
Multi-family and commercial real estate		2,167		2,146		−		2,025		71
Commercial		206		206		−		139		7
Home equity		318		311		−		200		7
Consumer		−		−		−		2		−
Construction		58		53				58		2
Total	$	5,120	$	5,031	$	−	$	5,246	$	125

The following table presents impaired loans by portfolio class at

March

31,

2016

(dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,964	$	2,920	$	−	$	2,913	$	71
Multi-family and commercial real estate		1,938		1,935		−		1,992		117
Commercial		56		56		−		34		9
Home equity		−		−		−		39		1
Consumer		−		−		−		16		−
Construction		59		54		−		60		3
Subtotal	$	5,017	$	4,965	$	−	$	5,054	$	201

The following table represents nonaccrual loans as of

December

31,

2016

and

March

31,

2016

(dollars in thousands):

	December 31, 2016			March 31, 2016
Non-accrual loans:
Residential real estate	$	1,252		$	1,333
Multi-family and commercial real estate		508			553
Commercial		206			−
Consumer		−			21
Home Equity		44			111
Construction		−			−
Total non-accrual loans		2,010			2,018
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled Debt Restructurings:
In non-accrual status:
Residential real estate	$	914		$	744
Multi-family and commercial real estate		425			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total troubled debt restructurings in non-accrual status		1,339			744
Performing under modified terms:
Residential real estate		791			787
Multi-family and commercial real estate		243			766
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		53			54
Total troubled debt restructurings performing under modified terms:		1,087			1,607
Total troubled debt restructurings		2,426			2,351
Total non-performing loans		4,436			4,369
Real estate owned		1,723			1,764
Total non-performing assets		6,159			6,133
Non-performing loans as a percentage of loans		5.27	%		5.24	%
Non-performing assets as a percentage of loans and real estate owned		7.18	%		7.20	%
Non-performing assets as percentage of total assets		4.75	%		4.74	%

During the

nine

months ended

December

31,

2016,

the Bank experienced a

$586

thousand net increase in non-accrual loans. This change reflects the downgrading of

six

loan relationships to non-accrual status totaling

$1.3

million during the

nine

months ended

December

31,

2016.

The downgraded loans consisted of

two

residential mortgages totaling

$486

thousand,

three

commercial loan relationships consisting of

five

loans totaling

$612

thousand and

one

home equity loan totaling

$172

thousand. These additions to the non-accruals were offset by

one

residential mortgage loan for

$100

thousand and

one

home equity loan for

$77

thousand that returned to accruing status;

one

commercial loan for

$40

thousand that was charged off and

two

residential mortgages totaling

$468

thousand that were transferred to real estate owned.

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

December

31,

2016

and

March

31,

2016

and loans modified as troubled debt restructurings within the previous

9

and

12

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

	December 31, 2016						March 31, 2016
			Outstanding Recorded Investment						Outstanding Recorded Investment
	Number of Contracts		Pre- Modification		Post- Modification		Number of Contracts		Pre- Modification		Post- Modification
Troubled debt restructurings:
Residential real estate		1		77		95		1	$	164	$	173

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

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

December

31,

2016

and

March

31,

2016:

	December 31, 2016			March 31, 2016
Balance, beginning of period	$	1,764		$	2,433
Additions from loan foreclosures		610			332
Additions from capitalized costs		9			−
Dispositions of REO		(595	)		(752	)
Gain (loss) on sale of REO		(3	)		(3	)
Valuation adjustments in the period		(62	)		(246	)
Balance, end of period	$	1,723		$	1,764

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

December

31,

2016

and

March

31,

2016:

	December 31, 2016			March 31, 2016
Balance, beginning of period	$	227		$	851
Valuation adjustments added in the period		62			247
Valuation adjustments on disposed properties during the period		(185	)		(871	)
Balance, end of period	$	104		$	227

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

	December 31, 2016			March 31, 2016
Balance at beginning of period	$	1,099		$	1,185
Provision:
Commercial		(40	)		(12	)
Commercial real estate		(23	)		9
Residential real estate		87			(132	)
Home Equity		(13	)		11
Consumer		(35	)		53
Construction		2			−
Total provision		(22	)		(71	)
Charge-offs:
Commercial		−			−
Commercial real estate		71			17
Residential real estate		102			40
Home equity		−			11
Consumer		−			71
Recoveries		(112	)		(124	)
Total Net Charge-Offs	$	61		$	15
Balance at end of period	$	1,016		$	1,099
Period-end loans outstanding	$	84,109		$	83,374
Average loans outstanding	$	83,416		$	83,666
Allowance as a percentage of period-end loans		1.21	%		1.32	%
Net charge-offs as a percentage of average loans		0.07	%		0.02	%

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

December

31,

2016

are as follows (dollars in thousands):

Allowance for Loan Losses

	Commercial			Commercial Real Estate			Residential Real Estate			Home Equity			Consumer			Construction		Total
Balance, beginning of year	$	80		$	339		$	568		$	87		$	25		$	−	$	1,099
Loan charge-offs		−			(71	)		(102	)		−			−			−		(173	)
Recoveries		28			48			8			−			28			−		112
Provision for loan losses		(40	)		(23	)		87			(13	)		(35	)		2		(22	)
Balance, end of period	$	68		$	293		$	561		$	74		$	18		$	2	$	1,016
Ending balance for loans individually evaluated for impairment	$	133		$	1,666		$	2,455		$	545		$	−		$	53	$	4,852
Ending balance for loans collectively evaluated for impairment		1,903			8,236			59,614			8,280			642			582	$	79,257
Loans receivable:
Ending balance	$	2,036		$	9,902		$	62,069		$	8,825		$	642		$	635	$	84,109
Ending balance: loans individually evaluated for impairment	$	133		$	1,666		$	2,455		$	545		$	−		$	53	$	4,852
Ending balance: loans collectively evaluated for impairment	$	1,903		$	8,236		$	59,614		$	8,280		$	642		$	582	$	79,257

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

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

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

For the

nine

months ending

December

31,

2016,

the Bank experienced

one

fullcharge-off relating to

one

loan relationship totaling

$40

thousand,

one

partial charge-off related to

one

relationship totaling

$31

thousand and

two

charge-offs on

two

properties when they were transferred to real estate owned totaling

$102

thousand as compared to

one

charge-off relating to

one

loan relationships totaling

$71

thousand and partial charge-offs relating to

three

loan relationships totaling

$68

thousand for the year ended

March

31,

2016.

At

December

31,

2016,

the Bank maintained an allowance for loan loss ratio of

1.21%

to loans outstanding. Non-performing assets have increased by

$26

thousand over their stated levels at

March

31,

2016,

representing a non-performing asset to total asset ratio of

4.75%

at

December

31,

2016

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

4.74%

at

March

31,

2016

.

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

thirty

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

may

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

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Note 10 - Investment Securities

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

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

(10) Investment Securities

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

December

31,

2016

and

March

31,

2016

are as follows:

	Held-to-Maturity December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Farm Credit Bank Bond	$	8,065	$	−	$	(324	)	$	7,741
Federal Home Loan Bank Bonds		8,353		−		(368	)		7,985
Federal Home Loan Mortgage Corporation Bonds		1,000		−		(55	)		945
Federal National Mortgage Association		3,000		−		(107	)		2,893
Municipal Bond		1,536		−		(4	)		1,532
		21,954		−		(858	)		21,096
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		245		11		−			256
Federal National Mortgage Association		329		30		−			359
Government National Mortgage Corporation		133		4		−			137
		707		45		−			752
Total	$	22,661	$	45	$	(858	)	$	21,848

	Held-to-Maturity March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Home Loan Bank Bonds	$	5,802	$	28	$	(4	)	$	5,826
Federal Farm Credit Bonds		9,438		21		(1	)		9,458
Federal Home Loan Mortgage Corporation Bonds		732		−		−			732
Federal National Mortgage Association Bond		4,000		17					4,017
Municipal Bond		736				(1	)		735
		20,708		66		(6	)		20,768
Mortgage-backed securities:
Federal Home Loan Mortgage Corporation		322		26		(8	)		340
Federal National Mortgage Association		398		40		(3	)		435
Government National Mortgage Corporation		157		7		(1	)		163
		877		73		(12	)		938
Total	$	21,585	$	139	$	(18	)	$	21,706

	Available for Sale December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificates of Deposit	$	2,000	$	10	$	−		$	2,010
Mutual Fund Shares		97		−		(2	)		95
	$	2097	$	10	$	(2	)	$	2,105

	Available-for-Sale
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal National Mortgage Association	$	500	$	−	$	(3	)	$	497
Certificates of Deposit		1,500		31		−			1,531
Mutual Fund Shares		122		2		(2	)		122
Total	$	2,122	$	33	$	(5	)	$	2,150

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

December

31,

2016

and

March

31,

2016:

	December 31, 2016
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,536	$	1,532	$	−	$	−
After one year through five years		500		496		2,000		2,010
After five years through ten years		8,576		8,287		−		−
After ten years		12,049		11,533		−		−
Equity securities		−		−		97		95
	$	22,661	$	21,848	$	2,097	$	2,105

	March 31, 2015
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	736	$	735	$	−	$	−
After one year through five years		945		945		1,000		1,025
After five years through ten years		8,380		8,384		1,000		1,003
After ten years		11,524		11,642		−		−
Equity securities		−		−		122		122
	$	21,585	$	21,706	$	2,122	$	2,150

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

December

31,

2016

and

March

31,

2016,

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

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
December 31, 2016	Value		Losses			Value		Losses		Value		Losses
Federal Farm Credit Bonds	$	7,741	$	(324	)	$	−	$	−	$	7,741	$	(324	)
Federal Home Loan Bank Bond		7,985		(368	)		−		−		7,985		(368	)
Federal National Mortgage Association		2,893		(107	)		−		−		2,893		(107	)
Federal Home Loan Mortgage Corporation Bond		945		(55	)		−		−		945		(55	)
Municipal bonds		1,536		(4	)		−		−		1,536		(4	)
Total	$	21,100	$	(858	)	$	−	$	−	$	21,100	$	(858	)

	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	$	( 4	)	$	496	$	( 4	)
Federal Farm Credit Bonds		−		−			499		( 1	)		499		( 1	)
Federal National Mortgage Association		−		−			497		( 3	)		497		( 3	)
Municipal Bonds		735		( 1	)		−		−			735		( 1	)
Mutual fund shares		−		−			64		( 2	)		64		( 2	)
		735		( 1	)		1,556		( 10	)		2,291		( 11	)
Mortgage –Backed Securities:
Federal Home Loan Mortgage Corporation		−		−			103		(8	)		103		(8	)
Federal national Mortgage Association		−		−			154		(3	)		154		(3	)
Government national Mortgage Association		−		−			22		(1	)		22		(1	)
		−		−			279		(12	)		279		(12	)
Total	$	735	$	(1	)	$	1,835	$	(22	)	$	2,570	$	(23	)

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

(1)

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

(2)

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

(3)

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

At

December

31,

2016,

the

42

debt securities with unrealized losses have depreciated

3.9%

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

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Note 5 - Earnings Per Share (Tables)

9 Months Ended

Dec. 31, 2016

Notes Tables

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2016		2015		2016		2015
Numerator	$	3,319	$	12,622	$	81,205	$	34,825
Denominators:
Basic shares outstanding		910,239		906,720		910,239		906,720
Effect of dilutive securities		4,252		2,222		4,252		2,222
Dilutive shares outstanding		914,491		908,942		914,491		908,942
Earnings per share:
Basic	$	0.00	$	0.01	$	0.09	$	0.04
Dilutive	$	0.00	$	0.01	$	0.09	$	0.04

XML

Note 8 - Fair Value of Financial Instruments (Tables)

9 Months Ended

Dec. 31, 2016

Notes Tables

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

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2016
Available-for-sale securities	$	−	$	2,105	$	−
March 31, 2016
Available-for-sale securities	$	−	$	2,150	$	−

Fair Value Measurements, Nonrecurring [Table Text Block]

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2016
Impaired loans	$	−	$	−	$	4,852
Real estate owned		−		−		1,723
Total	$	−	$	−	$	6,575
March 31, 2016
Impaired loans	$	−	$	−	$	4,966
Real estate owned		−		−		1,763
Total	$	−	$	−	$	6,729

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

	December 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	11,023	$	11,023	$	−	$	−
Investment securities-available for sale		2,105		−		2,105		−
Investment securities-held to maturity		22,661		−		22,661		−
Loans – net		83,027		−		−		82,942
FHLB stock		124		−		−		−
Accrued interest receivable		357		357		−		−
Bank–owned life insurance		174		174		−		−
Real estate owned		1,723		−		−		1,723
Total financial assets	$	121,194	$	11,554	$	24,766	$	84,665
Financial Liabilities:
Deposits-non-interest bearing	$	11,711	$	11,711	$	−	$	−
Deposits-interest bearing		103,069		−		102,350		−
Advance payments by borrowers for taxes and insurance		454		454		−		−
Accrued interest payable		1		1		−		−
Total financial liabilities	$	115,235	$	12,166	$	102,350	$	−

	March 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	12,127	$	12,127	$	−	$	−
Investment securities-available for sale		2,122		−		2,150		−
Investment securities-held to maturity		21,585		−		21,640		−
Loans receivable,– net		82,198		−		−		84,744
FHLB stock		254		254		−		−
Accrued interest receivable		369		369		−		−
Bank-owned life insurance		174		174		−		−
Real estate owned		1,763		−		−		1,763
Total financial assets	$	120,592	$	12,924	$	23,790	$	86,507
Financial Liabilities:
Deposits-non-interest bearing	$	12,054	$	12,054	$	−	$	−
Deposits-interest bearing		99,811		−		99,900		−
Advances from Federal Home Loan Bank		3,000		3,000		−		−
Advance payments by borrowers for taxes and insurance		433		433		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	115,304	$	15,493	$	99,900	$	−

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

	December 31, 2016				March 31, 2016
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	8,430	$	−	$	7,469	$	−

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Note 9 - Loans (Tables)

9 Months Ended

Dec. 31, 2016

Notes Tables

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

	December 31, 2016			March 31, 2016
Residential (one-to four-family) real estate	$	62,069		$	62,251
Multi-family and commercial real estate		9,902			9,569
Commercial		2,036			2,290
Home equity		8,825			8,528
Consumer		642			682
Construction		635			54
Total loans		84,109			83,374
Net deferred loan origination fees		(66	)		(77	)
Allowance for loan losses		(1,016	)		(1,099	)
Loans, net	$	83,027		$	82,198

Financing Receivable Credit Quality Indicators [Table Text Block]

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	59,112	$	−	$	−	$	2,957	$	62,069
Multi-family and commercial real estate		8,552		−		174		1,176		9,902
Commercial		1,830		−		−		206		2,036
Home equity		8,781		−		−		44		8,825
Consumer		642		−		−		−		642
Construction		582		−		−		53		635
	$	79,499	$	−	$	174	$	4,436	$	84,109

Past Due Financing Receivables [Table Text Block]

	30-59 Days Past Due			60- 89 Days Past Due			Greater than 90 Days Past Due			Total Past Due			Current			Total Loan Balances
Residential real estate	$	712		$	473		$	1,993		$	3,178		$	58,891		$	62,069
Multi-family and commercial real estate		−			239			694			933			8,969			9,902
Commercial		−			214			171			385			1,651			2,036
Home Equity		−			88			216			304			8,521			8,825
Consumer		3			15			−			18			624			642
Construction		−			−			−			−			635			635
Total Loans	$	715		$	1,029		$	3,074		$	4,818		$	79,291		$	84,109
Percentage of Total Loans		0.8	%		1.2	%		3.7	%		5.7	%		94.3	%		100.0	%

Impaired Financing Receivables [Table Text Block]

	December 31, 2016		March 31, 2016
Impaired loans for which a valuation allowance has been provided	$	−	$	—
Impaired loans for which no valuation allowance has been provided		5,031		4,966
Total loans determined to be impaired		5,031		4,966
Allowance for loans losses related to impaired loans		−		—
Average recorded investment in impaired loans		5,246		5,054
Cash basis interest income recognized on impaired loans		125		201

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

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Status
Impaired loans with no valuation allowance:
Residential real estate	$	2,371	$	2,315	$	−	$	2,822	$	38
Multi-family and commercial real estate		2,167		2,146		−		2,025		71
Commercial		206		206		−		139		7
Home equity		318		311		−		200		7
Consumer		−		−		−		2		−
Construction		58		53				58		2
Total	$	5,120	$	5,031	$	−	$	5,246	$	125

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While On Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	2,964	$	2,920	$	−	$	2,913	$	71
Multi-family and commercial real estate		1,938		1,935		−		1,992		117
Commercial		56		56		−		34		9
Home equity		−		−		−		39		1
Consumer		−		−		−		16		−
Construction		59		54		−		60		3
Subtotal	$	5,017	$	4,965	$	−	$	5,054	$	201

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

	December 31, 2016			March 31, 2016
Non-accrual loans:
Residential real estate	$	1,252		$	1,333
Multi-family and commercial real estate		508			553
Commercial		206			−
Consumer		−			21
Home Equity		44			111
Construction		−			−
Total non-accrual loans		2,010			2,018
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled Debt Restructurings:
In non-accrual status:
Residential real estate	$	914		$	744
Multi-family and commercial real estate		425			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total troubled debt restructurings in non-accrual status		1,339			744
Performing under modified terms:
Residential real estate		791			787
Multi-family and commercial real estate		243			766
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		53			54
Total troubled debt restructurings performing under modified terms:		1,087			1,607
Total troubled debt restructurings		2,426			2,351
Total non-performing loans		4,436			4,369
Real estate owned		1,723			1,764
Total non-performing assets		6,159			6,133
Non-performing loans as a percentage of loans		5.27	%		5.24	%
Non-performing assets as a percentage of loans and real estate owned		7.18	%		7.20	%
Non-performing assets as percentage of total assets		4.75	%		4.74	%

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	December 31, 2016						March 31, 2016
			Outstanding Recorded Investment						Outstanding Recorded Investment
	Number of Contracts		Pre- Modification		Post- Modification		Number of Contracts		Pre- Modification		Post- Modification
Troubled debt restructurings:
Residential real estate		1		77		95		1	$	164	$	173

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

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

Real Estate Owned [Table Text Block]

	December 31, 2016			March 31, 2016
Balance, beginning of period	$	1,764		$	2,433
Additions from loan foreclosures		610			332
Additions from capitalized costs		9			−
Dispositions of REO		(595	)		(752	)
Gain (loss) on sale of REO		(3	)		(3	)
Valuation adjustments in the period		(62	)		(246	)
Balance, end of period	$	1,723		$	1,764

	December 31, 2016			March 31, 2016
Balance, beginning of period	$	227		$	851
Valuation adjustments added in the period		62			247
Valuation adjustments on disposed properties during the period		(185	)		(871	)
Balance, end of period	$	104		$	227

Schedule of Charge-offs [Table Text Block]

	December 31, 2016			March 31, 2016
Balance at beginning of period	$	1,099		$	1,185
Provision:
Commercial		(40	)		(12	)
Commercial real estate		(23	)		9
Residential real estate		87			(132	)
Home Equity		(13	)		11
Consumer		(35	)		53
Construction		2			−
Total provision		(22	)		(71	)
Charge-offs:
Commercial		−			−
Commercial real estate		71			17
Residential real estate		102			40
Home equity		−			11
Consumer		−			71
Recoveries		(112	)		(124	)
Total Net Charge-Offs	$	61		$	15
Balance at end of period	$	1,016		$	1,099
Period-end loans outstanding	$	84,109		$	83,374
Average loans outstanding	$	83,416		$	83,666
Allowance as a percentage of period-end loans		1.21	%		1.32	%
Net charge-offs as a percentage of average loans		0.07	%		0.02	%

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

	Commercial			Commercial Real Estate			Residential Real Estate			Home Equity			Consumer			Construction		Total
Balance, beginning of year	$	80		$	339		$	568		$	87		$	25		$	−	$	1,099
Loan charge-offs		−			(71	)		(102	)		−			−			−		(173	)
Recoveries		28			48			8			−			28			−		112
Provision for loan losses		(40	)		(23	)		87			(13	)		(35	)		2		(22	)
Balance, end of period	$	68		$	293		$	561		$	74		$	18		$	2	$	1,016
Ending balance for loans individually evaluated for impairment	$	133		$	1,666		$	2,455		$	545		$	−		$	53	$	4,852
Ending balance for loans collectively evaluated for impairment		1,903			8,236			59,614			8,280			642			582	$	79,257
Loans receivable:
Ending balance	$	2,036		$	9,902		$	62,069		$	8,825		$	642		$	635	$	84,109
Ending balance: loans individually evaluated for impairment	$	133		$	1,666		$	2,455		$	545		$	−		$	53	$	4,852
Ending balance: loans collectively evaluated for impairment	$	1,903		$	8,236		$	59,614		$	8,280		$	642		$	582	$	79,257

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Note 10 - Investment Securities (Tables)

9 Months Ended

Dec. 31, 2016

Notes Tables

Held-to-maturity Securities [Table Text Block]

	Held-to-Maturity December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Farm Credit Bank Bond	$	8,065	$	−	$	(324	)	$	7,741
Federal Home Loan Bank Bonds		8,353		−		(368	)		7,985
Federal Home Loan Mortgage Corporation Bonds		1,000		−		(55	)		945
Federal National Mortgage Association		3,000		−		(107	)		2,893
Municipal Bond		1,536		−		(4	)		1,532
		21,954		−		(858	)		21,096
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		245		11		−			256
Federal National Mortgage Association		329		30		−			359
Government National Mortgage Corporation		133		4		−			137
		707		45		−			752
Total	$	22,661	$	45	$	(858	)	$	21,848

	Held-to-Maturity March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Home Loan Bank Bonds	$	5,802	$	28	$	(4	)	$	5,826
Federal Farm Credit Bonds		9,438		21		(1	)		9,458
Federal Home Loan Mortgage Corporation Bonds		732		−		−			732
Federal National Mortgage Association Bond		4,000		17					4,017
Municipal Bond		736				(1	)		735
		20,708		66		(6	)		20,768
Mortgage-backed securities:
Federal Home Loan Mortgage Corporation		322		26		(8	)		340
Federal National Mortgage Association		398		40		(3	)		435
Government National Mortgage Corporation		157		7		(1	)		163
		877		73		(12	)		938
Total	$	21,585	$	139	$	(18	)	$	21,706

Available-for-sale Securities [Table Text Block]

	Available for Sale December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificates of Deposit	$	2,000	$	10	$	−		$	2,010
Mutual Fund Shares		97		−		(2	)		95
	$	2097	$	10	$	(2	)	$	2,105

	Available-for-Sale
	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Federal National Mortgage Association	$	500	$	−	$	(3	)	$	497
Certificates of Deposit		1,500		31		−			1,531
Mutual Fund Shares		122		2		(2	)		122
Total	$	2,122	$	33	$	(5	)	$	2,150

Investments Classified by Contractual Maturity Date [Table Text Block]

	December 31, 2016
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,536	$	1,532	$	−	$	−
After one year through five years		500		496		2,000		2,010
After five years through ten years		8,576		8,287		−		−
After ten years		12,049		11,533		−		−
Equity securities		−		−		97		95
	$	22,661	$	21,848	$	2,097	$	2,105

	March 31, 2015
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	736	$	735	$	−	$	−
After one year through five years		945		945		1,000		1,025
After five years through ten years		8,380		8,384		1,000		1,003
After ten years		11,524		11,642		−		−
Equity securities		−		−		122		122
	$	21,585	$	21,706	$	2,122	$	2,150

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
December 31, 2016	Value		Losses			Value		Losses		Value		Losses
Federal Farm Credit Bonds	$	7,741	$	(324	)	$	−	$	−	$	7,741	$	(324	)
Federal Home Loan Bank Bond		7,985		(368	)		−		−		7,985		(368	)
Federal National Mortgage Association		2,893		(107	)		−		−		2,893		(107	)
Federal Home Loan Mortgage Corporation Bond		945		(55	)		−		−		945		(55	)
Municipal bonds		1,536		(4	)		−		−		1,536		(4	)
Total	$	21,100	$	(858	)	$	−	$	−	$	21,100	$	(858	)

	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	$	( 4	)	$	496	$	( 4	)
Federal Farm Credit Bonds		−		−			499		( 1	)		499		( 1	)
Federal National Mortgage Association		−		−			497		( 3	)		497		( 3	)
Municipal Bonds		735		( 1	)		−		−			735		( 1	)
Mutual fund shares		−		−			64		( 2	)		64		( 2	)
		735		( 1	)		1,556		( 10	)		2,291		( 11	)
Mortgage –Backed Securities:
Federal Home Loan Mortgage Corporation		−		−			103		(8	)		103		(8	)
Federal national Mortgage Association		−		−			154		(3	)		154		(3	)
Government national Mortgage Association		−		−			22		(1	)		22		(1	)
		−		−			279		(12	)		279		(12	)
Total	$	735	$	(1	)	$	1,835	$	(22	)	$	2,570	$	(23	)

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

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Note 3 - Deferred Income Taxes (Details Textual)	Dec. 31, 2016
GAAP Capital Ratio, Basis Points in Excess of Tier 1 Regulatory Capital Ratio	1.07%

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Note 4 - Income Taxes (Details Textual)	9 Months Ended
	Dec. 31, 2016 USD ($)
Liability for Uncertainty in Income Taxes, Current	$ 0
Federal and State Jurisdiction [Member] | Earliest Tax Year [Member]
Open Tax Year	2013
Federal and State Jurisdiction [Member] | Latest Tax Year [Member]
Open Tax Year	2015

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Note 5 - Earnings Per Share - Earnings Per Share Reconciliation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Net Income (Loss)	$ 3,319	$ 12,622	$ 81,205	$ 34,825
Denominators:
Basic shares outstanding (in shares)	910,239	906,720	910,239	906,720
Effect of dilutive securities (in shares)	4,252	2,222	4,252	2,222
Dilutive shares outstanding (in shares)	914,491	908,942	914,491	908,942
Earnings per share:
Basic (in dollars per share)	$ 0	$ 0.01	$ 0.09	$ 0.04
Dilutive (in dollars per share)	$ 0	$ 0.01	$ 0.09	$ 0.04

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Note 6 - Regulatory Agreement (Details Textual)	Dec. 31, 2016
Tier One Leverage Capital to Average Assets	8.96%
Tier One Risk Based Capital to Risk Weighted Assets	16.35%
Capital to Risk Weighted Assets	17.61%
In Accordance With the Written Agreement With the Office of the Comptroller of the Currency [Member]
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	8.00%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	12.00%
Capital Required for Capital Adequacy to Risk Weighted Assets	13.00%

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Available for Sale, Fair Value	$ 2,104,869	$ 2,150,093
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Available for Sale, Fair Value
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Available for Sale, Fair Value	2,105,000	2,150,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Available for Sale, Fair Value

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value On a Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Total	$ 6,575	$ 6,729
Impaired Loans [Member]
Impaired loans	4,852	4,966
Real Estate Owned [Member]
Real estate owned	$ 1,723	$ 1,763

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Note 8 - Fair Value of Financial Instruments - Estimated Fair Value of Assets and Liabilities (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Investment securities-available for sale	$ 2,104,869	$ 2,150,093
Held to Maturity, Fair Value	21,848,380	21,706,150
FHLB stock	124,300	253,800
Reported Value Measurement [Member]
Cash and cash equivalents	11,023,000	12,127,000
Investment securities-available for sale	2,105,000	2,122,000
Held to Maturity, Fair Value	22,661,000	21,585,000
Impaired loans	83,027,000	82,198,000
FHLB stock	124,000
Accrued interest receivable	357,000	369,000
Bank–owned life insurance	174,000	174,000
Real estate owned	1,723,000	1,763,000
Total financial assets	121,194,000	120,592,000
Deposits-non-interest bearing	11,711,000	12,054,000
Deposits-interest bearing	103,069,000	99,811,000
Advance payments by borrowers for taxes and insurance	454,000	433,000
Accrued interest payable	1,000	6,000
Total financial liabilities	115,235,000	115,304
FHLB stock		254,000
Advances from Federal Home Loan Bank		3,000,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents	11,023,000	12,127,000
Investment securities-available for sale
Held to Maturity, Fair Value
Impaired loans
FHLB stock
Accrued interest receivable	357,000	369,000
Bank–owned life insurance	174,000	174,000
Real estate owned
Total financial assets	11,554,000	12,924,000
Deposits-non-interest bearing	11,711,000	12,054,000
Deposits-interest bearing
Advance payments by borrowers for taxes and insurance	454,000	433,000
Accrued interest payable	1,000	6,000
Total financial liabilities	12,166,000	15,493
FHLB stock		254,000
Advances from Federal Home Loan Bank		3,000,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Cash and cash equivalents
Investment securities-available for sale	2,105,000	2,150,000
Held to Maturity, Fair Value	22,661,000	21,640,000
Impaired loans
FHLB stock
Accrued interest receivable
Bank–owned life insurance
Real estate owned
Total financial assets	24,766,000	23,790,000
Deposits-non-interest bearing
Deposits-interest bearing	102,350,000	99,900,000
Advance payments by borrowers for taxes and insurance
Accrued interest payable
Total financial liabilities	102,350,000	99,900
FHLB stock
Advances from Federal Home Loan Bank
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Cash and cash equivalents
Investment securities-available for sale
Held to Maturity, Fair Value
Impaired loans	82,942,000	84,744,000
FHLB stock
Accrued interest receivable
Bank–owned life insurance
Real estate owned	1,723,000	1,763,000
Total financial assets	84,665,000	86,507,000
Deposits-non-interest bearing
Deposits-interest bearing
Advance payments by borrowers for taxes and insurance
Accrued interest payable
Total financial liabilities
FHLB stock
Advances from Federal Home Loan Bank

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Note 8 - Fair Value of Financial Instruments - Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Commitments to Extend Credit [Member]
Commitments to extend credit, contract value	$ 8,430	$ 7,469

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Note 9 - Loans (Details Textual)	9 Months Ended	12 Months Ended
	Dec. 31, 2016 USD ($)	Mar. 31, 2016 USD ($)
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%
Adjusted Capital Funds Value	$ 1,200,000
Advances from Federal Home Loan Banks		$ 3,000,000
Financing Receivable, Recorded Investment, Nonaccrual Status	2,010,000	2,018,000
Impaired Financing Receivable, Average Recorded Investment	5,246,000	5,054,000
Impaired Financing Receivable, Interest Income, Cash Basis Method	125,000	$ 201,000
Allowance for Loan and Lease Losses, Write-offs	$ 173,000
Allowance for Loan Loss to Loans Outstanding Ratio	1.21%
Increase (Decrease) in Non-performing Assets	$ 26,000
Non-performing Assets As Percentage of Total Assets	4.75%	4.74%
Downgraded Loans [Member]
Financing Receivable, Modifications, Number of Contracts	6
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 1,300,000
Loans Transferred to Real Estate Owned [Member]
Allowance for Loan and Lease Losses, Write-offs	$ 102,000
Number of Real Estate Properties	2
Total Charge-offs [Member]
Allowance for Loan and Lease Losses, Write-offs	$ 40,000	$ 71,000
Loans Receivables, Write Offs, Number of Relationships	1	1
Partial Charge-offs [Member]
Allowance for Loan and Lease Losses, Write-offs	$ 31,000	$ 68,000
Loans Receivables, Write Offs, Number of Relationships	1	3
Nonperforming Financial Instruments [Member] | Payment Deferral [Member]
Financing Receivable, Modifications, Number of Contracts	6
Advances from Federal Home Loan Banks	$ 871,000
In Non-accrual Status [Member]
Financing Receivable, Number of Contracts, Nonaccrual Status	18	18
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 3,300,000	$ 2,800,000
Increase (Decrease) in Finance Receivables	$ 586,000
Residential Portfolio Segment [Member]
Financing Receivable, Modifications, Number of Contracts	1	1
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 1,252,000	$ 1,333,000
Allowance for Loan and Lease Losses, Write-offs	$ 102,000	40,000
Residential Portfolio Segment [Member] | Downgraded Loans [Member]
Financing Receivable, Modifications, Number of Contracts	2
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 486,000
Residential Portfolio Segment [Member] | Non-Accruals Transfer to Accruing Status [Member]
Financing Receivable, Modifications, Number of Contracts	1
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 100,000
Residential Portfolio Segment [Member] | Loans Transferred to Real Estate Owned [Member]
Financing Receivable, Modifications, Number of Contracts	2
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 468,000
Residential Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Non-owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Commercial Real Estate Portfolio Segment [Member]
Allowance for Loan and Lease Losses, Write-offs	$ 71,000	17,000
Commercial Real Estate Portfolio Segment [Member] | Downgraded Loans [Member]
Financing Receivable, Modifications, Number of Contracts	5
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 612,000
Commercial Real Estate Portfolio Segment [Member] | Non-Accruals Transfer to Accruing Status [Member]
Financing Receivable, Modifications, Number of Contracts	1
Allowance for Loan and Lease Losses, Write-offs	$ 40,000
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
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status		21,000
Allowance for Loan and Lease Losses, Write-offs		71,000
Consumer Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Home Equity Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 44,000	111,000
Allowance for Loan and Lease Losses, Write-offs		$ 11,000
Home Equity Portfolio Segment [Member] | Downgraded Loans [Member]
Financing Receivable, Modifications, Number of Contracts	1
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 172,000
Home Equity Portfolio Segment [Member] | Non-Accruals Transfer to Accruing Status [Member]
Financing Receivable, Modifications, Number of Contracts	1
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 77,000

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Note 9 - Loans - Loans (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016	Mar. 31, 2015
Loans	$ 84,109,000	$ 83,374,000
Net deferred loan origination fees	(66,000)	(77,000)
Allowance for loan losses	(1,016,218)	(1,099,232)	$ (1,185,000)
Loans, net	83,026,561	82,197,809
Residential Portfolio Segment [Member]
Loans	62,069,000	62,251,000
Allowance for loan losses	(561,000)	(568,000)
Commercial Real Estate Portfolio Segment [Member]
Loans	9,902,000	9,569,000
Allowance for loan losses	(293,000)	(339,000)
Commercial Portfolio Segment [Member]
Loans	2,036,000	2,290,000
Allowance for loan losses	(68,000)	(80,000)
Home Equity Portfolio Segment [Member]
Loans	8,825,000	8,528,000
Allowance for loan losses	(74,000)	(87,000)
Consumer Portfolio Segment [Member]
Loans	642,000	682,000
Allowance for loan losses	(18,000)	(25,000)
Construction Portfolio Segment [Member]
Loans	635,000	54,000
Allowance for loan losses	$ (2,000)

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Note 9 - Loans - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Loans	$ 84,109	$ 83,374
Nonperforming Financial Instruments [Member]
Loans	4,436
Residential Portfolio Segment [Member]
Loans	62,069	62,251
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	2,957
Commercial Real Estate Portfolio Segment [Member]
Loans	9,902	9,569
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	1,176
Commercial Portfolio Segment [Member]
Loans	2,036	2,290
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	206
Home Equity Portfolio Segment [Member]
Loans	8,825	8,528
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	44
Consumer Portfolio Segment [Member]
Loans	642	682
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans
Construction Portfolio Segment [Member]
Loans	635	$ 54
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	53
Pass [Member]
Loans	79,499
Pass [Member] | Residential Portfolio Segment [Member]
Loans	59,112
Pass [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans	8,552
Pass [Member] | Commercial Portfolio Segment [Member]
Loans	1,830
Pass [Member] | Home Equity Portfolio Segment [Member]
Loans	8,781
Pass [Member] | Consumer Portfolio Segment [Member]
Loans	642
Pass [Member] | Construction Portfolio Segment [Member]
Loans	582
Special Mention [Member]
Loans
Special Mention [Member] | Residential Portfolio Segment [Member]
Loans
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans
Special Mention [Member] | Commercial Portfolio Segment [Member]
Loans
Special Mention [Member] | Home Equity Portfolio Segment [Member]
Loans
Special Mention [Member] | Consumer Portfolio Segment [Member]
Loans
Special Mention [Member] | Construction Portfolio Segment [Member]
Loans
Classified Loans [Member]
Loans	174
Classified Loans [Member] | Residential Portfolio Segment [Member]
Loans
Classified Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Loans	174
Classified Loans [Member] | Commercial Portfolio Segment [Member]
Loans
Classified Loans [Member] | Home Equity Portfolio Segment [Member]
Loans
Classified Loans [Member] | Consumer Portfolio Segment [Member]
Loans
Classified Loans [Member] | Construction Portfolio Segment [Member]
Loans

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Note 9 - Loans - Past-due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Past due loans	$ 4,818
Current loans	79,291
Loans	$ 84,109	$ 83,374
Percentage past due loans	5.70%
Percentage of current loans	94.30%
Percentage of Total Loans	100.00%
Residential Portfolio Segment [Member]
Past due loans	$ 3,178
Current loans	58,891
Loans	62,069	62,251
Commercial Real Estate Portfolio Segment [Member]
Past due loans	933
Current loans	8,969
Loans	9,902	9,569
Commercial Portfolio Segment [Member]
Past due loans	385
Current loans	1,651
Loans	2,036	2,290
Home Equity Portfolio Segment [Member]
Past due loans	304
Current loans	8,521
Loans	8,825	8,528
Consumer Portfolio Segment [Member]
Past due loans	18
Current loans	624
Loans	642	682
Construction Portfolio Segment [Member]
Past due loans
Current loans	635
Loans	635	$ 54
Financing Receivables, 30 to 59 Days Past Due [Member]
Past due loans	$ 715
Percentage past due loans	0.80%
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 712
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans	3
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Portfolio Segment [Member]
Past due loans
Financing Receivables, 60 to 89 Days Past Due [Member]
Past due loans	$ 1,029
Percentage past due loans	1.20%
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 473
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	239
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	214
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	88
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans	15
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Portfolio Segment [Member]
Past due loans
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Past due loans	$ 3,074
Percentage past due loans	3.70%
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 1,993
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	694
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	171
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	216
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Portfolio Segment [Member]
Past due loans

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Note 9 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Impaired loans for which a valuation allowance has been provided
Impaired loans for which no valuation allowance has been provided	5,031	4,966
Total loans determined to be impaired	5,031	4,966
Allowance for loans losses related to impaired loans
Average recorded investment in impaired loans	5,246	5,054
Cash basis interest income recognized on impaired loans	$ 125	$ 201

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Note 9 - Loans - Impaired Loans by Portfolio (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Recorded Investment	$ 5,120	$ 5,017
Impaired loans for which no valuation allowance has been provided	5,031	4,966
Average Recorded Investment	5,246	5,054
Interest Income Recognized While On Impaired Statues	125	201
Residential Portfolio Segment [Member]
Recorded Investment	2,371	2,964
Impaired loans for which no valuation allowance has been provided	2,315	2,920
Average Recorded Investment	2,822	2,913
Interest Income Recognized While On Impaired Statues	38	71
Commercial Real Estate Portfolio Segment [Member]
Recorded Investment	2,167	1,938
Impaired loans for which no valuation allowance has been provided	2,146	1,935
Average Recorded Investment	2,025	1,992
Interest Income Recognized While On Impaired Statues	71	117
Commercial Portfolio Segment [Member]
Recorded Investment	206	56
Impaired loans for which no valuation allowance has been provided	206	56
Average Recorded Investment	139	34
Interest Income Recognized While On Impaired Statues	7	9
Home Equity Portfolio Segment [Member]
Recorded Investment	318
Impaired loans for which no valuation allowance has been provided	311
Average Recorded Investment	200	39
Interest Income Recognized While On Impaired Statues	7	1
Consumer Portfolio Segment [Member]
Recorded Investment
Impaired loans for which no valuation allowance has been provided
Average Recorded Investment	2	16
Interest Income Recognized While On Impaired Statues
Construction Portfolio Segment [Member]
Recorded Investment	58	59
Impaired loans for which no valuation allowance has been provided	53	54
Average Recorded Investment	58	60
Interest Income Recognized While On Impaired Statues	$ 2	$ 3

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Note 9 - Loans - Nonaccrual Loans (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2,010,000	$ 2,018,000
Accruing loans past 90 days or more
Troubled debt restructings	2,426,000	2,351,000
Real estate owned	1,722,800	1,763,628	$ 2,433,000
Total non-performing assets	$ 129,565,775	$ 129,415,025
Non-performing loans as a percentage of loans	5.27%	5.24%
Non-performing assets as a percentage of loans and real estate owned	7.18%	7.20%
Non-performing assets as percentage of total assets	4.75%	4.74%
Nonperforming Financial Instruments [Member]
Troubled debt restructings	$ 1,339,000	$ 744,000
Total non-performing loans	4,436,000	4,369,000
Real estate owned	1,723,000	1,764,000
Total non-performing assets	6,159,000	6,133,000
Performing Financial Instruments [Member]
Troubled debt restructings	1,087,000	1,607,000
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,252,000	1,333,000
Accruing loans past 90 days or more
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructings	914,000	744,000
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructings	791,000	787,000
Multi-family and Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	508,000	553,000
Accruing loans past 90 days or more
Multi-family and Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructings	425,000
Multi-family and Commercial Real Estate Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructings	243,000	766,000
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	206,000
Accruing loans past 90 days or more
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructings
Commercial Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructings
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status		21,000
Accruing loans past 90 days or more
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructings
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructings
Home Equity Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	44,000	111,000
Accruing loans past 90 days or more
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructings
Home Equity Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructings
Construction Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status
Accruing loans past 90 days or more
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructings
Construction Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructings	$ 53,000	$ 54,000

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Note 9 - Loans - Troubled Debt Restructurings (Details) - Residential Portfolio Segment [Member] $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2016 USD ($)	Mar. 31, 2016 USD ($)
Number of Contracts	1	1
Outstanding Recorded Investment Pre-Modification	$ 77	$ 164
Outstanding Recorded Investment Post-Modification	$ 95	$ 173

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Note 9 - Loans - Troubled Debt Restructurings Subsequent Default (Details) - Residential Portfolio Segment [Member]	9 Months Ended	12 Months Ended
	Dec. 31, 2016 USD ($)	Mar. 31, 2016 USD ($)
Troubled debt restructurings that subsequently defaulted, number of contracts
Troubled debt restructurings that subsequently defaulted, recorded investment

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Note 9 - Loans - Real Estate Owned (REO), Net of Valuation Allowance (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Balance, beginning of period			$ 1,763,628	$ 2,433,000	$ 2,433,000
Additions from loan foreclosures			610,000		332,000
Additions from capitalized costs			9,000
Dispositions of REO			(595,000)		(752,000)
Gain (loss) on sale of REO	$ 300	$ (1,115)	(2,540)	(3,096)	(3,000)
Valuation adjustments in the period			(62,000)		(246,000)
Balance, end of period	1,722,800		1,722,800		1,763,628
Balance, beginning of period			227,000	851,000	851,000
Valuation adjustments added in the period			62,000		247,000
Valuation adjustments on disposed properties during the period			(185,000)		(871,000)
Balance, end of period	$ 104,000		$ 227,000	$ 851,000	$ 851,000

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Note 9 - Loans - Allowance for Losses on Loans and Charge-offs (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Balance, beginning of year			$ 1,099,232	$ 1,185,000	$ 1,185,000
Provision	$ 26,000		(22,000)	$ 10,000	(71,000)
Allowance for Loan and Lease Losses, Write-offs			173,000
Recoveries			(112,000)		(124,000)
Total Net Charge-Offs			61,000		15,000
Balance, end of period	1,016,218		1,016,218		1,099,232
Period-end loans outstanding	$ 84,109,000		84,109,000		83,374,000
Average loans outstanding			$ 83,416,000		$ 83,666,000
Allowance as a percentage of period-end loans	1.21%		1.21%		1.32%
Net charge-offs as a percentage of average loans	0.07%		0.07%		0.02%
Commercial Portfolio Segment [Member]
Balance, beginning of year			$ 80,000
Provision			(40,000)		$ (12,000)
Allowance for Loan and Lease Losses, Write-offs
Recoveries			(28,000)
Balance, end of period	$ 68,000		68,000		80,000
Period-end loans outstanding	2,036,000		2,036,000		2,290,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year			339,000
Provision			(23,000)		9,000
Allowance for Loan and Lease Losses, Write-offs			71,000		17,000
Recoveries			(48,000)
Balance, end of period	293,000		293,000		339,000
Period-end loans outstanding	9,902,000		9,902,000		9,569,000
Residential Portfolio Segment [Member]
Balance, beginning of year			568,000
Provision			87,000		(132,000)
Allowance for Loan and Lease Losses, Write-offs			102,000		40,000
Recoveries			(8,000)
Balance, end of period	561,000		561,000		568,000
Period-end loans outstanding	62,069,000		62,069,000		62,251,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year			87,000
Provision			(13,000)		11,000
Allowance for Loan and Lease Losses, Write-offs					11,000
Recoveries
Balance, end of period	74,000		74,000		87,000
Period-end loans outstanding	8,825,000		8,825,000		8,528,000
Consumer Portfolio Segment [Member]
Balance, beginning of year			25,000
Provision			(35,000)		53,000
Allowance for Loan and Lease Losses, Write-offs					71,000
Recoveries			(28,000)
Balance, end of period	18,000		18,000		25,000
Period-end loans outstanding	642,000		642,000		682,000
Construction Portfolio Segment [Member]
Balance, beginning of year
Provision			2,000
Allowance for Loan and Lease Losses, Write-offs
Recoveries
Balance, end of period	2,000		2,000
Period-end loans outstanding	$ 635,000		$ 635,000		$ 54,000

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Note 9 - Loans - Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Balance, beginning of year			$ 1,099,232	$ 1,185,000	$ 1,185,000
Loan charge-offs			(173,000)
Recoveries			112,000		124,000
Provision for loan losses	$ 26,000		(22,000)	$ 10,000	(71,000)
Balance, end of period	1,016,218		1,016,218		1,099,232
Ending balance for loans individually evaluated for impairment	4,852,000		4,852,000
Ending balance for loans collectively evaluated for impairment	79,257,000		79,257,000
Ending balance	84,109,000		84,109,000		83,374,000
Ending balance: loans individually evaluated for impairment	4,852,000		4,852,000
Ending balance: loans collectively evaluated for impairment	79,257,000		79,257,000
Commercial Portfolio Segment [Member]
Balance, beginning of year			80,000
Loan charge-offs
Recoveries			28,000
Provision for loan losses			(40,000)		(12,000)
Balance, end of period	68,000		68,000		80,000
Ending balance for loans individually evaluated for impairment	133,000		133,000
Ending balance for loans collectively evaluated for impairment	1,903,000		1,903,000
Ending balance	2,036,000		2,036,000		2,290,000
Ending balance: loans individually evaluated for impairment	133,000		133,000
Ending balance: loans collectively evaluated for impairment	1,903,000		1,903,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year			339,000
Loan charge-offs			(71,000)		(17,000)
Recoveries			48,000
Provision for loan losses			(23,000)		9,000
Balance, end of period	293,000		293,000		339,000
Ending balance for loans individually evaluated for impairment	1,666,000		1,666,000
Ending balance for loans collectively evaluated for impairment	8,236,000		8,236,000
Ending balance	9,902,000		9,902,000		9,569,000
Ending balance: loans individually evaluated for impairment	1,666,000		1,666,000
Ending balance: loans collectively evaluated for impairment	8,236,000		8,236,000
Residential Portfolio Segment [Member]
Balance, beginning of year			568,000
Loan charge-offs			(102,000)		(40,000)
Recoveries			8,000
Provision for loan losses			87,000		(132,000)
Balance, end of period	561,000		561,000		568,000
Ending balance for loans individually evaluated for impairment	2,455,000		2,455,000
Ending balance for loans collectively evaluated for impairment	59,614,000		59,614,000
Ending balance	62,069,000		62,069,000		62,251,000
Ending balance: loans individually evaluated for impairment	2,455,000		2,455,000
Ending balance: loans collectively evaluated for impairment	59,614,000		59,614,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year			87,000
Loan charge-offs					(11,000)
Recoveries
Provision for loan losses			(13,000)		11,000
Balance, end of period	74,000		74,000		87,000
Ending balance for loans individually evaluated for impairment	545,000		545,000
Ending balance for loans collectively evaluated for impairment	8,280,000		8,280,000
Ending balance	8,825,000		8,825,000		8,528,000
Ending balance: loans individually evaluated for impairment	545,000		545,000
Ending balance: loans collectively evaluated for impairment	8,280,000		8,280,000
Consumer Portfolio Segment [Member]
Balance, beginning of year			25,000
Loan charge-offs					(71,000)
Recoveries			28,000
Provision for loan losses			(35,000)		53,000
Balance, end of period	18,000		18,000		25,000
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	642,000		642,000
Ending balance	642,000		642,000		682,000
Ending balance: loans individually evaluated for impairment
Ending balance: loans collectively evaluated for impairment	642,000		642,000
Construction Portfolio Segment [Member]
Balance, beginning of year
Loan charge-offs
Recoveries
Provision for loan losses			2,000
Balance, end of period	2,000		2,000
Ending balance for loans individually evaluated for impairment	53,000		53,000
Ending balance for loans collectively evaluated for impairment	582,000		582,000
Ending balance	635,000		635,000		$ 54,000
Ending balance: loans individually evaluated for impairment	53,000		53,000
Ending balance: loans collectively evaluated for impairment	$ 582,000		$ 582,000

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Note 10 - Investment Securities (Details Textual) - Debt Securities [Member]	Dec. 31, 2016
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	42
Securities in Unrealized Loss Positions, Depreciated Percentage from Amortized Cost	3.90%

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Note 10 - Investment Securities - Held-to-maturity Securities (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Held-to-Maturity, Amortized Cost	$ 22,660,982	$ 21,584,538
Held-to-Maturity, Gross Unrealized Gains	45,000	139,000
Held-to-Maturity, Gross Unrealized Losses	(858,000)	(18,000)
Held-to-Maturity, Fair Value	21,848,380	21,706,150
Federal Farm Credit Bonds [Member]
Held-to-Maturity, Amortized Cost	8,065,000	9,438,000
Held-to-Maturity, Gross Unrealized Gains		21,000
Held-to-Maturity, Gross Unrealized Losses	(324,000)	(1,000)
Held-to-Maturity, Fair Value	7,741,000	9,458,000
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Held-to-Maturity, Amortized Cost	8,353,000	5,802,000
Held-to-Maturity, Gross Unrealized Gains		28,000
Held-to-Maturity, Gross Unrealized Losses	(368,000)	(4,000)
Held-to-Maturity, Fair Value	7,985,000	5,826,000
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member]
Held-to-Maturity, Amortized Cost	1,000,000	732,000
Held-to-Maturity, Gross Unrealized Gains
Held-to-Maturity, Gross Unrealized Losses	(55,000)
Held-to-Maturity, Fair Value	945,000	732,000
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Held-to-Maturity, Amortized Cost	3,000,000	4,000,000
Held-to-Maturity, Gross Unrealized Gains		17,000
Held-to-Maturity, Gross Unrealized Losses	(107,000)
Held-to-Maturity, Fair Value	2,893,000	4,017,000
Municipal Bonds [Member]
Held-to-Maturity, Amortized Cost	1,536,000	736,000
Held-to-Maturity, Gross Unrealized Gains
Held-to-Maturity, Gross Unrealized Losses	(4,000)	(1,000)
Held-to-Maturity, Fair Value	1,532,000	735,000
Bonds [Member]
Held-to-Maturity, Amortized Cost	21,954,000	20,708,000
Held-to-Maturity, Gross Unrealized Gains		66,000
Held-to-Maturity, Gross Unrealized Losses	(858,000)	(6,000)
Held-to-Maturity, Fair Value	21,096,000	20,768,000
Mortgage Backed Securities, Federal Home Loan Mortgage Corporation [Member]
Held-to-Maturity, Amortized Cost	245,000	322,000
Held-to-Maturity, Gross Unrealized Gains	11,000	26,000
Held-to-Maturity, Gross Unrealized Losses		(8,000)
Held-to-Maturity, Fair Value	256,000	340,000
Mortgage Backed Securities, Federal National Mortgage Association [Member]
Held-to-Maturity, Amortized Cost	329,000	398,000
Held-to-Maturity, Gross Unrealized Gains	30,000	40,000
Held-to-Maturity, Gross Unrealized Losses		(3,000)
Held-to-Maturity, Fair Value	359,000	435,000
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Held-to-Maturity, Amortized Cost	133,000	157,000
Held-to-Maturity, Gross Unrealized Gains	4,000	7,000
Held-to-Maturity, Gross Unrealized Losses		(1,000)
Held-to-Maturity, Fair Value	137,000	163,000
Collateralized Mortgage Backed Securities [Member]
Held-to-Maturity, Amortized Cost	707,000	877,000
Held-to-Maturity, Gross Unrealized Gains	45,000	73,000
Held-to-Maturity, Gross Unrealized Losses		(12,000)
Held-to-Maturity, Fair Value	$ 752,000	$ 938,000

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Note 10 - Investment Securities - Available-for-sale Securities (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Available for Sale, Amortized Cost	$ 2,096,668	$ 2,121,777
Available for Sale, Gross Unrealized Gains	10,000	33,000
Available for Sale, Gross Unrealized Losses	(2,000)	(5,000)
Available for Sale, Fair Value	2,104,869	2,150,093
Certificates of Deposit [Member]
Available for Sale, Amortized Cost	2,000,000	1,500,000
Available for Sale, Gross Unrealized Gains	10,000	31,000
Available for Sale, Gross Unrealized Losses
Available for Sale, Fair Value	2,010,000	1,531,000
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Available for Sale, Amortized Cost		500,000
Available for Sale, Gross Unrealized Gains
Available for Sale, Gross Unrealized Losses		(3,000)
Available for Sale, Fair Value		497,000
Mutual Fund Shares [Member]
Available for Sale, Amortized Cost	97,000	122,000
Available for Sale, Gross Unrealized Gains		2,000
Available for Sale, Gross Unrealized Losses	(2,000)	(2,000)
Available for Sale, Fair Value	$ 95,000	$ 122,000

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Note 10 - Investment Securities - Maturities of Securities (Details) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Held to Maturity, One year or less, Amortized Cost	$ 1,536,000	$ 736,000
Held to Maturity, One year or less, Fair Value	1,532,000	735,000
Available for Sale, One year or less, Amortized Cost
Available for Sale, One year or less, Fair Value
Held to Maturity, After one year through five years, Amortized Cost	500,000	945,000
Held to Maturity, After one year through five years, Fair Value	496,000	945,000
Available for Sale, After one year through five years, Amortized Cost	2,000,000	1,000,000
Available for Sale, After one year through five years, Fair Value	2,010,000	1,025,000
Held to Maturity, After five years through ten years, Amortized Cost	8,576,000	8,380,000
Held to Maturity, After five years through ten years, Fair Value	8,287,000	8,384,000
Available for Sale, After five years through ten years, Amortized Cost		1,000,000
Available for Sale, After five years through ten years, Fair Value		1,003,000
Held to Maturity, After ten years, Amortized Cost	12,049,000	11,524,000
Held to Maturity, After ten years, Fair Value	11,533,000	11,642,000
Available for Sale, After ten years, Amortized Cost
Available for Sale, After ten years, Fair Value
Equity securities, Amortized Cost	97,000	122,000
Equity securities, Fair Value	95,000	122,000
Held-to-Maturity, Amortized Cost	22,660,982	21,584,538
Held to Maturity, Fair Value	21,848,380	21,706,150
Available for Sale, Amortized Cost	2,097,000	2,122,000
Available for Sale, Fair Value	$ 2,105,000	$ 2,150,000

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Note 10 - Investment Securities - Securities With Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value	$ 21,100	$ 735
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses	(858)	(1)
Total Fair Value	21,100	2,570
Total Unrealized Losses	(858)	(23)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		1,835
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(22)
Federal Farm Credit Bonds [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value	7,741
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses	(324)
Total Fair Value	7,741	499
Total Unrealized Losses	(324)	(1)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		499
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(1)
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value	7,985
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses	(368)
Total Fair Value	7,985	496
Total Unrealized Losses	(368)	(4)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		496
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(4)
Federal National Mortgage Association Certificates and Obligations (FNMA) [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value	2,893
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses	(107)
Total Fair Value	2,893	497
Total Unrealized Losses	(107)	(3)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		497
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(3)
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value	945
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses	(55)
Total Fair Value	945	103
Total Unrealized Losses	(55)	(8)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		103
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(8)
Municipal Bonds [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value	1,536	735
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses	(4)	(1)
Total Fair Value	1,536	735
Total Unrealized Losses	$ (4)	(1)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses
Mutual Fund Shares [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses
Total Fair Value		64
Total Unrealized Losses		(2)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		64
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(2)
Bonds [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value		735
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses		(1)
Total Fair Value		2,291
Total Unrealized Losses		(11)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		1,556
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(10)
Mortgage Backed Securities, Federal National Mortgage Association [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses
Total Fair Value		154
Total Unrealized Losses		(3)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		154
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(3)
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses
Total Fair Value		22
Total Unrealized Losses		(1)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		22
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		(1)
Commercial Mortgage Backed Securities [Member]
Continuous Unrealized Losses Existing For Less Than 12 Months Fair Value
Continuous Unrealized Losses Existing For Less Than 12 Months Unrealized Losses
Total Fair Value		279
Total Unrealized Losses		(12)
Continuous Unrealized Losses Existing For 12 Months or Greater Fair Value		279
Continuous Unrealized Losses Existing For 12 Months or Greater Unrealized Losses		$ (12)