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 September 30, 2017

OR

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

For the transition period from ________________________ to _______________________

Commission file number: 0-55087

DELANCO BANCORP, INC.

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

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

615 Burlington Avenue, Delanco, New Jersey 08075

(Address of principal executive offices)

(856) 461-0611

(Issuer’s telephone number)

Not Applicable

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

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

Yes ☒     No ☐

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

Yes ☒     No ☐

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

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

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

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

As of November 3, 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 September 30, 2019 (Unaudited) and March 31, 2017	1
	Consolidated Statements of Income for the Three and Six Months Ended September 30, 2017 and 2016 (Unaudited)	2
	Consolidated Statements of Comprehensive Income for the Six Months Ended September 30, 2017 and 2016 (Unaudited)	3
	Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended September 30, 2017 (Unaudited)	4
	Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2017 and 2016 (Unaudited)	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	31
Signatures		32

Part I. Financial Information

Item 1. Financial Statements

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

	September 30, 2017			March 31, 2017
	(unaudited)
ASSETS
Cash and cash equivalents
Cash and amounts due from banks	$	671,467		$	511,355
Interest-bearing deposits		8,302,679			6,487,188
Total cash and cash equivalents		8,974,146			6,998,543
Investment securities:
Securities available-for-sale (amortized cost of $2,074,499 and $2,588,817 at September 30, 2017 and March 31, 2017, respectively)		2,086,322			2,594,888
Securities held-to-maturity (fair value $21,418,582 and $21,797,695 at September 30, 2017 and March 31, 2017, respectively)		21,956,622			22,622,835
Total investment securities		24,042,944			25,217,723
Loans, net of allowance for loan losses of $1,010,552 at September 30, 2017 (unaudited), $1,001,449 at March 31, 2017		83,898,782			84,414,361
Accrued interest receivable		389,247			378,243
Real estate owned		1,461,198			1,271,302
Federal Home Loan Bank, at cost		102,000			124,300
Premises and equipment, net		5,936,959			6,047,703
Deferred income taxes		1,813,750			1,981,950
Bank-owned life insurance		178,514			178,514
Other assets		252,663			374,714
Total assets	$	127,050,203		$	126,987,353
LIABILITIES
Deposits
Non-interest bearing deposits	$	10,255,268		$	11,703,567
Interest bearing deposits		101,710,880			100,377,179
Total deposits		111,966,148			112,080,746
Accrued interest payable		6,285			6,273
Advance payments by borrowers for taxes and insurance		504,348			500,485
Other liabilities		901,705			908,005
Total liabilities		113,378,486			113,495,509
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at September 30, 2017 and March 31, 2017, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at September 30, 2017 and March 31, 2017	$	9,454		$	9,454
Additional paid-in capital		10,052,460			10,029,506
Retained earnings, substantially restricted		4,189,933			4,036,465
Unearned common stock held by employee stock ownership plan		(455,514	)		(455,514	)
Accumulated other comprehensive (loss)		(124,616	)		(128,067	)
Total stockholder’s equity		13,671,717			13,491,844
Total liabilities and stockholders’ equity	$	127,050,203		$	126,987,353

See Notes to the Unaudited Consolidated Financial Statements.

1

 DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Unaudited)

	Three Months Ended September 30,					Six Months Ended September 30,
	2017			2016		2017			2016
INTEREST INCOME
Loans	$	909,639		$	874,301	$	1,808,618		$	1,766,779
Investment securities		160,117			140,834		317,638			315,767
Total interest income		1,069,756			1,015,135		2,126,256			2,082,546
INTEREST EXPENSE
Interest-bearing checking accounts		8,435			11,411		16,773			22,152
Passbook and money market accounts		31,867			30,025		62,844			59,692
Certificates of deposits		85,836			90,558		170,131			181,998
Federal Home Loan Bank Advances		−			2,064		15			4,812
Total interest expense		126,138			134,058		249,763			268,654
Net interest income		943,618			881,077		1,876,493			1,813,892
Recapture of loan losses		(65,000	)		−		(85,000	)		(48,000	)
Net interest income after recapture for loan losses		1,008,618			881,077		1,961,493			1,861,892
NON-INTEREST INCOME
Gain on sale of an asset		−			−		71,516			−
Gain (Loss) on sale of real estate owned		23,415			2,692		23,415			(2,840	)
Service charges		34,331			29,595		63,351			62,430
Rental income		9,600			12,600		19,200			25,035
Other		3,906			3,949		8,013			7,429
Total non-interest income		71,252			48,836		185,495			92,054
NON-INTEREST EXPENSE
Salaries and employee benefits		406,427			400,610		816,803			797,638
Advertising		3,689			6,812		7,907			11,377
Office supplies, telephone and postage		28,113			28,775		54,213			54,007
Loan expenses		6,860			5,956		20,233			34,332
Occupancy expense		140,104			149,977		281,198			293,353
Federal insurance premiums		20,031			42,628		42,062			85,426
Real estate owned loss reserve		28,000			−		80,218			13,100
Data processing expenses		63,887			62,544		125,704			127,158
ATM expenses		13,701			9,995		25,144			16,300
Bank charges and fees		19,487			22,609		41,628			44,102
Insurance and surety bond premiums		20,146			23,622		40,767			44,729
Dues and subscriptions		9,817			12,925		17,055			24,454
Professional fees		69,832			70,769		150,615			125,620
Real Estate Owned expense, net		26,442			29,566		54,422			62,151
Other		31,134			35,699		67,651			69,861
Total non-interest expense		887,670			902,487		1,825,620			1,803,608
INCOME - BEFORE INCOME TAX EXPENSE		192,200			27,426		321,368			150,338
Income tax		94,652			9,357		167,900			72,452
NET INCOME		97,548			18,069		153,468			77,886
INCOME PER COMMON SHARE	$	0.11		$	0.02	$	0.17		$	0.09

See Notes to the Unaudited Consolidated Financial Statements.

2

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

(Unaudited)

Six Months Ended
	September 30, 2017		September 30, 2016
Net income	$	153,468	$	77,886
Unrealized gain - available for sale:
Unrealized holding gain - net of deferred tax - of $4,729 and $16,918 in 2017 and 2016		3,451		2,753
Total other comprehensive income	$	156,919	$	80,639

See Notes to the Unaudited Consolidated Financial Statements

3

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Common Stock								Unearned Employee			Accumulated
	Shares		Amount		Additional Paid-in Capital		Retained Earnings		Stock Ownership Plan			Other- Comprehensive Income (Loss)			Total Stockholders' Equity
Balance at March 31, 2017		945,425		9,454	$	10,029,506	$	4,036,465		(455,514	)		(128,067	)		13,491,844
Comprehensive income
Net income								153,468								153,468
Other comprehensive income, net of tax:													3,451			3,451
Employee stock option expense						22,954										22,954
Balance at September 30, 2017		945,425		9,454		10,052,460		4,189,933		(455,514	)		(124,616	)		13,671,717

See Notes to the Unaudited Consolidated Financial Statements.

4

DELANCO BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended September 30,
	2017			2016
Cash flow from operating activities
Net income	$	153,468		$	77,886
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax expense		165,899			70,501
Depreciation		117,144			132,491
Discount accretion net of premium amortization		242			(31,427	)
Recapture for loan losses		(85,000	)		(48,000	)
Gain (Loss) on sale of real estate owned		(23,415	)		2,840
Gain on sale of an asset		(71,516	)		−
Compensation expense for stock options		22,954			17,610
Changes in operating assets and liabilities
(Increase) decrease in:
Accrued interest receivable		(11,003	)		18,398
Other assets		122,051			105,994
Increase (decrease) in:
Accrued interest payable		12			78
Other liabilities		(6,300	)		57,504
Net cash provided by operating activities	$	384,536		$	403,875
Cash flows from investing activities
Proceeds of securities available for sale		514,318			513,976
Purchase of securities available for sale		−			(500,000	)
Purchases of securities held-to-maturity		−			(14,965,000	)
Proceeds from maturities and principal repayments of securities held-to-maturity		665,972			15,930,445
Redemption of investment required by law – stock in Federal Home Loan Bank		22,300			84,500
Proceeds from sale of real estate owned		163,300			466,285
Net (increase) decrease in loans		342,312			(1,281,527	)
Purchases of premises and equipment		(6,400	)		(5,545	)
Net cash provided by investing activities	$	1,701,802		$	243,134
Cash flows from financing activities
(Decrease) increase in deposits		(114,598	)		1,225,772
Increase in advance payments by borrowers for taxes and insurance		3,863			48,791
Decrease in Federal Home Loan bank Advances		−			(2,000,000	)
Net cash used in financing activities	$	(110,735	)	$	(725,437	)
Net decrease in cash and cash equivalents	$	1,975,603		$	(78,428	)
Cash and cash equivalents, beginning of the period		6,998,543			12,127,388
Cash and cash equivalents, end of period	$	8,974,146		$	12,048,960
Supplemental Disclosures:
Cash paid during the period for interest	$	249,738		$	274,562
Cash paid during the period for income taxes	$	2,500		$	2,500
Loans transferred to foreclosed real estate during the period	$	410,000			148,931
Net change in unrealized gain on securities available-for-sale net of tax	$	3,451		$	2,753

See Notes to the Unaudited Consolidated Financial Statements.

5

DELANCO BANCORP, INC. AND SUBSIDIARY

Notes to the Unaudited Consolidated Financial Statements

September 30, 2017

(1) Basis of Presentation

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

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

(2) Use of Estimates

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

(3) Deferred Income Taxes

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

The calculation of deferred taxes for GAAP capital differs from the calculation of deferred taxes for regulatory capital. For regulatory capital, deferred tax assets that are dependent upon future taxable income for realization are limited to the lesser of either the amount of deferred tax assets that the institution expects to realize within one year of the calendar quarter-end date, or 10% of the Bank’s Tier I capital. As a result of this variance, our Tier I regulatory capital ratio is lower than our GAAP capital ratio by 125 basis points.

6

(4) Income Taxes

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

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

(5) Earnings Per Share

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

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

The calculated basic and dilutive EPS are as follows:

	Six Months Ended September 30,
	2017		2016
Numerator	$	153,468	$	77,886
Denominators:
Basic shares outstanding		910,239		906,720
Effect of dilutive securities		7,602		4,136
Dilutive shares outstanding		917,841		910,856
Earnings per share:
Basic	$	0.17	$	0.09
Dilutive	$	0.17	$	0.09

7

(6)     Termination of Regulatory Agreement

On September 27, 2017, the Office of the Comptroller of the Currency (the “OCC”) terminated the formal written agreement dated November 21, 2012 between the OCC and the Bank, effective immediately. In addition, the OCC terminated the higher individual minimum capital ratios that the OCC had required for the Bank. At September 30, 2017, the Bank exceeded the minimum regulatory requirements to be considered “well capitalized.” As a result of the OCC's action, the Bank is no longer considered to be in “troubled condition.”

(7) Recent Accounting Pronouncements

In August 2017, the FASB issued ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU-2017 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in the interim period, permitted. The Company plans to adopt ASU-2017 on April 1, 2019. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. While the Company continues to assess all potential impacts of the standard, the Company currently expects the adoption to have immaterial impact to the financial statements.

In May 2017, the FASB issued ASU 2017-09: Compensation —Stock Compensation (Topic 718): Scope of Modification Accounting. The Board is issuing this update to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation – Stock Compensation, to a change to the terms or conditions of a shared-based payment amount. The amendments in this update affect any entity that changes the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. To date, the Company has not changed the terms or conditions of a share-based payment award. As a result, the company does not anticipate an impact to the consolidated financial statements.

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

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

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

8

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

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

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

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

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

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

9

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

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

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

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

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

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

10

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

(8) Fair Value of Financial Instruments

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

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

●	Level 1	Level 1 input are unadjusted quoted prices in active markets for identical assets or liabilities.
●	Level 2	Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observable inputs other than quoted prices such as interest rates.
●	Level 3	Level 3 inputs are unobservable inputs.

      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)
September 30, 2017
Available-for-sale securities	$	−	$	2,086	$	−
March 31, 2017
Available-for-sale securities	$	−	$	2,595	$	−

11

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

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
September 30, 2017
Impaired loans	$	−	$	−	$	3,573
Real estate owned		−		−		1,461
Total	$	−	$	−	$	5,034
March 31, 2017
Impaired loans	$	−	$	−	$	4,883
Real estate owned		−		−		1,271
Total	$	−	$	−	$	6,154

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

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

12

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

	September 30, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	8,974	$	8,974	$	−	$	−
Investment securities-available for sale		2,074		−		2,086		−
Investment securities-held to maturity		21,957		−		21,419		−
Loans – net		83,899		−		−		83,270
FHLB stock		102		102		−		−
Accrued interest receivable		389		389		−		−
Bank–owned life insurance		179		179		−		−
Real Estate Owned		1,461		−		−		1,461
Total financial assets	$	119,035	$	9,644	$	23,505	$	84,731
Financial Liabilities:
Deposits-non-interest bearing	$	10,255	$	10,255	$	−	$	−
Deposits-interest bearing		101,711		−		100,367		−
Advance payments by borrowers for taxes and insurance		504		504		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	112,476	$	10,765	$	100,367	$	−

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

13

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.

	September 30, 2017				March 31, 2017
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	5,580	$	−	$	6,620	$	−

(9) Loans

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

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

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

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

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

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

14

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

	September 30,			March 31,
	2017			2017
Residential (one-to four-family) real estate	$	61,019		$	61,419
Multi-family and commercial real estate		11,634			12,071
Commercial		2,493			1,858
Home equity		8,695			8,812
Consumer		676			637
Construction		446			680
Total loans		84,963			85,477
Net deferred loan origination fees		(54	)		(62	)
Allowance for loan losses		(1,010	)		(1,001	)
Loans, net	$	83,899		$	84,414

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

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

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

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

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

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

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

15

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 September 30, 2017, the Bank has entered into formal forbearance agreements with six relationships totaling $861 thousand that require current payments while the borrowers restructure their finances.

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

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	58,749	$	−	$	−	$	2,270	$	61,019
Multi-family and commercial real estate		10,637		−		88		909		11,634
Commercial		2,210		−		166		117		2,493
Home equity		8,470		−		−		225		8,695
Consumer		676		−		−		−		676
Construction		394		−		−		52		446
	$	81,136	$	−	$	254	$	3,573	$	84,963

16

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

	30-59 Days Past			60- 89 Days Past			Greater than 90 Days Past			Total Past						Total Loan
	Due			Due			Due			Due			Current			Balances
Residential real estate	$	96		$	418		$	1,244		$	1,758		$	59,261		$	61,019
Multi-family and commercial real estate		405			484			589			1,478			10,156			11,634
Commercial		34			−			117			151			2,342			2,493
Home Equity		−			25			−			25			8,670			8,695
Consumer		−			25			−			25			651			676
Construction		−			−			−			−			446			446
Total Loans		535			952			1,950			3,437			81,526			84,963
Percentage of Total Loans		0.63	%		1.12	%		2.30	%		4.05	%		95.95	%		100.00	%

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 September 30, 2017, the Bank had 14 loan relationships totaling $2.1 million in non-accrual loans as compared to 17 relationships totaling $3.2 million at March 31, 2017. The average balance of impaired loans totaled $4.4 million for the six months ended September 30, 2017 as compared to $5.1 million for the year ended March 31, 2017, and interest income recorded on impaired loans for the six months ended September 30, 2017 totaled $79 thousand as compared to $173 thousand for the year ended March 31, 2017.

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

	September 30, 2017		March 31, 2017
Impaired loans for which a valuation allowance has been provided	$	−	$	−
Impaired loans for which no valuation allowance has been provided	$	3,573	$	4,883
Total loans determined to be impaired	$	3,573	$	4,883
Allowance for loans losses related to impaired loans	$	−	$	−
Average recorded investment in impaired loans	$	4,425	$	5,225
Cash basis interest income recognized on impaired loans	$	79	$	173

17

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

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While on Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	1,985	$	1,930	$	−	$	2,240	$	37
Multi-family and commercial real estate		1,253		1,249		−		1,712		25
Commercial		117		117		−		144		5
Home equity		225		225		−		272		11
Consumer		−		−		−				−
Construction		57		52		−		57		1
Total	$	3,637	$	3,573	$	−	$	4,425	$	79

The following table presents impaired loans by portfolio class at March 31, 2017 (dollars in thousands):

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

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

	September 30, 2017			March 31, 2017
Non-accrual loans:
Residential real estate	$	1,256		$	1,180
Multi-family and commercial real estate		250			506
Commercial		117			172
Consumer		−			−
Home equity		−			53
Construction		−			−
Total non-accrual loans		1,623			1,911
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	328		$	740
Multi-family and commercial real estate		186			425
Commercial		−			−
Consumer		−			−
Home Equity		−			131
Construction		−			−
Total troubled debt restructurings in non-accrual status		514			1,296
Performing under modified terms:
Residential real estate		686			693
Multi-family and commercial real estate		473			240
Commercial		−			−
Consumer		−			−
Home Equity		225			95
Construction		52			52
Total troubled debt restructurings performing under modified terms:		1,436			1,080
Total troubled debt restructurings		1,950			2,376
Total non-performing loans		3,573			4,287
Real estate owned		1,461			1,271
Total non-performing assets		5,034			5,558
Non-performing loans as a percentage of loans		4.21	%		5.02	%
Non-performing assets as a percentage of loans and real estate owned		5.82	%		6.41	%
Non-performing assets as percentage of total assets		3.96	%		4.38	%

19

During the six months ended September 30, 2017, the Bank experienced a $1.1 million net decrease in non-accrual loans. This change reflects one commercial real estate loan for $239 thousand, one commercial loan for $54 thousand and two home equity loans for $184 thousand that returned to accruing status, one commercial real estate note for $253 thousand that was sold, a partial charge-off of $50 thousand to one commercial real estate loan, one residential loan in the amount of $410 thousand that was transferred to real estate owned and repayments on loans of $7 thousand. These decreases were offset by the downgrading of one loan relationship to non-accrual status totaling $112 thousand during the six months ended September 30, 2017. The downgraded loan consisted of one residential mortgage totaling $112 thousand.

The following table presents troubled debt restructurings that occurred during the periods ended September 30, 2017 and March 31, 2017 and loans modified as troubled debt restructurings within the previous 6 and 12 month periods and for which there was a payment default during the period.

September 30, 2017

March 31, 2017

Outstanding Recorded Investment

Outstanding Recorded Investment

Number of Contracts

Pre- Modification

Post- Modification

Number of Contracts

Pre- Modification

Post- Modification

Troubled debt restructurings:

Residential real estate

−

−

−

1

$

77

$

96

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

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

	September 30,			March 31,
	2017			2017
Balance, beginning of period	$	1,271		$	1,763
Additions from loan foreclosures		410			500
Additions from capitalized costs		−			26
Dispositions of REO		(193	)		(922	)
Gain (loss) on sale of REO		24			(34	)
Valuation adjustments in the period		(51	)		(62	)
Balance, end of period	$	1,461		$	1,271

20

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

	September 30,			March 31,
	2017			2017
Balance, beginning of period	$	104		$	227
Valuation adjustments added in the period		80			62
Valuation adjustments on disposed properties during the period		(29	)		(185	)
Balance, end of period	$	155		$	104

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

	September 30, 2017			March 31, 2017
Balance at beginning of period	$	1,001		$	1,099
Provision:
Commercial		−			(45	)
Commercial real estate		21			(61	)
Residential real estate		(70	)		98
Home Equity		(35	)		29
Consumer		(1	)		(45	)
Construction		−			2
Total Provision		(85	)		(22	)
Charge-Offs:
Commercial		−			−
Commercial Real Estate		50			71
Residential real estate		−			102
Home Equity		−			42
Consumer		−			−
Recoveries		(144	)		(139	)
Total Net Charge-Offs		(94	)		76
Balance at end of period	$	1,010		$	1,001
Period-end loans outstanding	$	84,963		$	85,477
Average loans outstanding	$	84,793		$	84,426
Allowance as a percentage of period-end loans		1.19	%		1.17	%
Net charge-offs as a percentage of average loans		(0.11	%)		0.09	%

21

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

Allowance for Loan Losses

	Commercial		Commercial Real Estate			Residential Real Estate			Home Equity			Consumer			Construction		Total
Balance, beginning of year		64		274			575			74			12			2		1,001
Loan charge-offs		−		(50	)		−			−			−			−		(50	)
Recoveries		1		31			71			35			6			−		144
Provision for loan losses		−		21			(70	)		(35	)		(1	)		−		(85	)
Balance, end of period		65		276			576			74			17			2		1,010
Ending balance for loans individually evaluated for impairment		186		808			2,036			459			−			52		3,541
Ending balance for loans collectively evaluated for impairment		2,307		10,826			58,983			8,236			676			394		81,422
Loans receivable:
Ending balance		2,493		11,634			61,019			8,695			676			446		84,963
Ending balance: loans individually evaluated for impairment		186		808			2,036			459			−			52		3,541
Ending balance: loans collectively evaluated for impairment		2,307		10,826			58,983			8,236			676			394		81,422

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.

22

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 six months ending September 30, 2017, the Bank experienced one partial charge-off relating to one relationship totaling $50 thousand as compared to one charge-off relating to one loan relationship totaling $40 thousand and partial charge-offs relating to three loan relationships totaling $175 thousand for the year ended March 31, 2017.

At September 30, 2017, the Bank maintained an allowance for loan loss ratio of 1.19% to loans outstanding. Non-performing assets have decreased by $524 thousand over their stated levels at March 31, 2017, representing a non-performing asset to total asset ratio of 3.96% at September 30, 2017 as compared to a non-performing asset to total asset ratio of 4.38% at March 31, 2017.

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

(10) Investment Securities

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

	Held-to-Maturity September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	19,918	$	−	$	(574	)	$	19,344
Municipal Bond		1,446		−		(1	)		1,445
Mortgage-Backed Securities		593		53		(16	)		630
Total	$	21,957	$	53	$	(591	)	$	21,419

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

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	Available for Sale
	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificate of deposit		2,000		12		−		2,012
Mutual Fund Shares		74		−		−		74
	$	2,074	$	12	$	−	$	2,086

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

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

	September 30, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,446	$	1,445	$	−	$	−
After one year through five years		500		497		2,000		2,012
After five years through ten years		8,046		7,854		−		−
After ten years		11,965		11,623		−		−
Equity securities		−		−		74		74
	$	21,957	$	21,419	$	2,074	$	2,086

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

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

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

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
September 30, 2017	Value		Losses			Value		Losses			Value		Losses
U.S. government Agency Bonds		7,585		(101	)		11,775		(473	)		19,360		(574	)
Municipal Bonds		1,445		(1	)		−		−			1,445		(1	)
Mortgage Backed Securities		−		−			381		(16	)		381		(16	)
Total		9,030		(102	)		12,156		(489	)		21,186		(591	)

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

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

At September 30, 2017, the 42 debt securities with unrealized losses have depreciated 2.7% 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.

(11)     Subsequent Event

On October 18, 2017, the Company and First Bank entered into an Agreement and Plan of Reorganization which provides for the acquisition of the Company by First Bank (the “Merger”) pursuant to the merger of the Company with and into a to-be-formed subsidiary of First Bank (“Merger Sub”) with Merger Sub as the surviving corporation. Simultaneously upon the completion of the Merger, the Bank will merge with and into First Bank. At the effective time of the Merger, the outstanding shares of capital stock of the Company will be converted into the right to receive 1.11 shares of First Bank common stock. The transaction is expected to close in the first quarter of 2018, subject to the satisfaction of customary closing conditions, including the receipt of all required regulatory approvals and the approval of the Company’s shareholders.

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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 six months ended September 30, 2017 and 2016 is intended to assist in understanding our financial condition and results of operations. The information contained in this section should be read in conjunction with the Unaudited Financial Statements and the notes thereto, appearing in Part I, Item 1 of this report.

Forward-Looking Statements

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

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

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.

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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 September 30, 2017 were $127.1 million, an increase of $63 thousand from total assets of $127.0 million at March 31, 2017. Total liabilities decreased $117 thousand from $113.5 million at March 31, 2017 to $113.4 million at September 30, 2017. Total stockholders’ equity increased $180 thousand to $13.7 million at September 30, 2017, primarily due to net income and by the increase in other comprehensive income related to higher values in the available for sale securities portfolio.

Loans. At September 30, 2017, total loans, net, were $83.9 million, or 66.0% of total assets. Overall loans decreased by $515 thousand from March 31, 2017. New loan production exceeded the payoff and amortization of loans by $148 thousand but were offset by the transfer of a $410 thousand residential mortgage to REO and the sale of a non-performing commercial real estate note for $253 thousand. Commercial and multi-family real estate loans decreased by $437 thousand, residential real estate loans by $400 thousand, residential construction loans by $234 thousand and home equity loans by $117 thousand while commercial loans increased by $635 thousand and consumer loans by $39 thousand.

Total nonperforming loans at September 30, 2017 decreased $714 thousand from March 31, 2017.

Securities. The investment securities portfolio was $24.0 million, or 18.9% of total assets, at September 30, 2017. At that date, 2.5% of the investment portfolio was invested in mortgage-backed securities, while the remainder was invested primarily in U.S. Government agency and other debt securities. Investment securities decreased $1.2 million compared to March 31, 2017. The decrease was primarily due to calls of debt securities.

Deposits. Total deposits were $112.0 million at September 30, 2017, a decrease of $115 thousand compared to March 31, 2017. Deposits decreased as the Bank made a conscious effort to reduce its reliance on high costing time deposits. Core deposits increased $873 thousand for the six months ended September 30, 2017 while time deposits decreased by $988 thousand.

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

Financial Highlights.  Net income for the three months ended September 30, 2017 was $98 thousand as compared to net income of $18 thousand for the same prior year period. Net income for the six months ended September 30, 2017 was $153 thousand as compared to a net income of $78 thousand for the same prior year period. The increase in net income for the three-month period was primarily the result of an increase in net interest income, an increase in the non interest income such as gain on sale of real estate owned, a recapture of loan losses and a decrease in non-interest expenses such as Federal Insurance premiums, offset by a larger income tax expense. The increase in net income for the six-month period was primarily the result of an increase in net interest income, an increase in the non interest income such as gains on sale of real estate owned and of an asset, a recapture of loan loss reserve, offset by a larger income tax expense .

Net Interest Income.   Net interest income increased $63 thousand to $1.9 million for the six months ended September 30, 2017 as compared to the prior year period. The Bank saw an increase in the interest rate spread (17 basis points) and an increase in net interest margin (13 basis points) for the six month period.  The rates earned on assets increased, resulting in a 2.1% increase in total net interest income for the six months ended September 30, 2017 compared to the six months ended September 20, 2016. Total interest expense decreased by 7.0% between the same periods.

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Average loans in the six months ended September 30, 2017 increased $664 thousand, or 0.8%, compared with the same period in 2016, driven by increased production in the commercial real estate mortgage and commercial loan portfolios, offset by lower balances in the residential mortgage portfolio. Average investment securities in the six months ended September 30, 2017 decreased $2.4 million, or 9.6%, compared to the same period in 2016. The decrease in the investment portfolio was due to calls of debt securities. Higher interest rates on our earning assets and lower non-performing assets increased the average yield on earning assets to 3.63% for the six months ended September 30, 2017, compared with 3.54% for the same period in 2016.

Average interest-bearing deposits in the six months ended September 30, 2017 decreased $1.0 million or 1.0%, compared with the same period in 2016. Lower interest rates paid on our deposit accounts and the continued shift in the deposit mix decreased the average cost of deposits to 0.45% compared with 0.51% for the same period in 2016.

Provision for Loan Losses.  The allowance for loan losses is a valuation allowance for probable losses inherent in the loan portfolio.  We evaluate the need to establish allowances against losses on loans on a quarterly basis.  When additional allowances are necessary, a provision for loan losses is charged to earnings.  There was a provision recapture of $65 thousand for the three months ended September 30, 2017 and a recapture of $85 thousand in the six months ended September 30, 2017 compared to $-0- and $48 thousand, respectively, for the comparable 2016 periods.  We had $70 thousand and $94 thousand in net recoveries in the three and six months ended September 30, 2017, respectively, compared to $73 thousand and $9 thousand in net charge-offs in the same prior year periods.

Non-Interest Income.  Non-interest income increased by $22 thousand in the three-month period and $93 thousand in the six-month period ending September 30, 2017 compared to the same periods ended September 20, 2016 primarily due to gains on sale of real estate owned and other assets for the three and six months ending September 30, 2017.

Non-Interest Expenses.  Non-interest expenses decreased $15 thousand in the three months and increased $22 thousand for the six months ending September 30, 2017, respectively, as compared to the three and six months ended September 30, 2016.

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 September 30, 2017, cash and cash equivalents totaled $9 million. At September 30, 2017, we had no outstanding borrowings and had arrangements to borrow up to $10.4 million from the Federal Home Loan Bank of New York and $1.0 million from Atlantic Central Bankers Bank.

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

A significant use of our liquidity is the funding of loan originations. At September 30, 2017, we had $158 thousand in loan commitments outstanding. We also had $5.4 million in unused lines of credit and $9 thousand in unfunded construction loans. 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 September 30, 2017 totaled $20.3 million, or 54.6% 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 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 September 30, 2018. We believe, however, based on past experience that a significant portion of our certificates of deposit will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered.

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

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

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

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

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable as the Company is a smaller reporting company.

Item 4. Controls and Procedures

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

Part II. Other Information

Item 1. Legal Proceedings

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

Item 1A.   Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017, which could materially and adversely affect the Company’s business, financial condition or future results. The risks described in the Company’s Form 10-K are not the only risks that the Company faces. Additional risks and uncertainties not currently known to the Company or that that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.

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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)
10.1	Employment Agreement between Delanco Federal Savings Bank and James E. Igo
10.2	Employment Agreement between Delanco Federal Savings Bank and Eva Modi
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 September 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of 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.

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

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

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EX-10.1

Exhibit 10.1

DELANCO FEDERAL SAVINGS BANK

EMPLOYMENT AGREEMENT

THIS AGREEMENT (the “Agreement”), made this 3^rd day of October, 2017, by and between DELANCO FEDERAL SAVINGS BANK, a federally chartered savings bank (the “Bank”), and JAMES E. IGO (the “Executive”).

WHEREAS, Executive serves in a position of substantial responsibility; and

WHEREAS, the Bank wishes to assure Executive’s services for the term of this Agreement; and

WHEREAS, Executive is willing to serve in the employ of the Bank during the term of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and upon the other terms and conditions provided for in this Agreement, the parties hereby agree as follows:

1.Employment. The Bank will employ Executive as President and Chief Executive Officer for the term set forth herein. Executive will perform all duties and shall have all powers commonly incident to his positions, or which, consistent with those positions, the Board of Directors of the Bank (the “Board”) delegates to Executive. Executive also agrees to serve, if elected, as an officer and/or director of any subsidiary or affiliate of the Bank and to carry out the duties and responsibilities reasonably appropriate to those offices.

2.Location and Facilities. The Bank will furnish Executive with the working facilities and staff customary for executive officers with the titles and duties set forth in Section 1 and as are necessary for him to perform his duties. The location of such facilities and staff shall be at the principal administrative offices of the Bank, or at such other site or sites customary for such offices.

3.Term.

a. The term of this Agreement shall commence on the date of this Agreement (the “Effective Date”) and shall end on the first anniversary of the Effective Date and shall include all extensions of this initial term made pursuant to this Section 3.

b. Commencing on the first anniversary of the Effective Date and continuing on each anniversary of the Effective Date thereafter, the disinterested members of the Board may extend the Agreement term for an additional year, so that the remaining term of the Agreement again becomes twelve (12) months, unless Executive elects not to extend the term of this Agreement by giving written notice in accordance with Section 19 of this Agreement. The Board will review the Agreement and Executive’s performance annually for purposes of determining whether to extend the Agreement term and will include the rationale and results of its review in the minutes of its meeting. The Board will notify Executive as soon as possible after its annual review whether it has determined to extend the Agreement.

4.Base Compensation.

a. For his services as President and Chief Executive Officer, the Bank agrees to pay Executive an annual base salary at the rate of $185,000.00 per year, payable in accordance with customary payroll practices.

b. During the term of this Agreement, the Board will review the level of Executive’s base salary at least annually, based upon factors deemed relevant, in order to determine Executive’s base salary through the remaining term of the Agreement.

5.Bonuses. Executive will participate in discretionary bonuses or other incentive compensation programs that the Bank or the Bank may sponsor for or award from time to time to senior management employees.

6.Benefit Plans. Executive will participate in life insurance, medical, dental, pension, profit sharing, retirement and stock-based compensation plans and other programs and arrangements that the Bank or may sponsor or maintain for the benefit of their employees.

7.Vacations and Leave.

a. Executive may take vacations and other leave in accordance with applicable policy for senior executives, or otherwise as approved by the Board.

b. In addition to paid vacations and other leave, the Board may grant Executive a leave or leaves of absence, with or without pay, at such time or times and upon such terms and conditions as the Board, in its discretion, may determine.

8.Expense Payments and Reimbursements. The Bank will reimburse Executive for all reasonable out-of-pocket business expenses incurred in connection with his services under this Agreement upon substantiation of such expenses in accordance with applicable policies of the Bank.

9.Loyalty and Confidentiality.

a. During the term of this Agreement, Executive will devote all his business time, attention, skill, and efforts to the faithful performance of his duties under this Agreement; provided, however, that from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations that will not present any conflict of interest with the Bank or any of its subsidiaries or affiliates, unfavorably affect the performance of Executive’s duties pursuant to this Agreement, or violate any applicable statute or regulation. Executive will not engage in any business or activity contrary to the business affairs or interests of the Bank or any of its subsidiaries or affiliates.

b. Nothing contained in this Agreement will prevent or limit Executive’s right to invest in the capital stock or other securities or interests of any business dissimilar from that of the Bank, or, solely as a passive, minority investor, in any business.

c. Executive agrees to maintain the confidentiality of any and all information concerning the operations or financial status of the Bank and its affiliates; the names or addresses of any borrowers, depositors and other customers; any information concerning or obtained from such customers; and any other information concerning the Bank or its affiliates to which he may be exposed during the course of his employment. Executive further agrees that, unless required by law or specifically permitted by the Board in writing, he will not disclose to any person or entity, either during or subsequent to his employment, any of the above-mentioned information which is not generally known to the public, nor will he use the information in any way other than for the benefit of the Bank or its affiliates.

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10.Termination and Termination Pay. Subject to Section 11 of this Agreement, Executive’s employment under this Agreement may be terminated in the following circumstances:

a. Death. Executive’s employment under this Agreement will terminate upon his death during the term of this Agreement, in which event Executive’s estate will receive the compensation due to Executive through the last day of the calendar month in which his death occurred.

b. Retirement. This Agreement will terminate upon Executive’s retirement under the retirement benefit plan or plans in which he participates pursuant to Section 6 of this Agreement or otherwise.

c. Disability.

i. The Board or Executive may terminate Executive’s employment after having determined Executive has a Disability. For purposes of this Agreement, “Disability” means a physical or mental infirmity that impairs Executive’s ability to substantially perform his duties under this Agreement and results in Executive becoming eligible for long-term disability benefits under any long-term disability plans of the Bank (or, if no such plans exist, that impairs Executive’s ability to substantially perform his duties under this Agreement for a period of one hundred eighty (180) consecutive days). The Board will determine whether or not Executive is and continues to be permanently disabled for purposes of this Agreement in good faith, based upon competent medical advice and other factors that the Board reasonably believes to be relevant. As a condition to any benefits, the Board may require Executive to submit to physical or mental evaluations and tests as the Board or its medical experts deem reasonably appropriate.

ii. In the event of his Disability, Executive will no longer be obligated to perform services under this Agreement. Upon Executive’s Disability, the Bank will pay Executive, as Disability pay, an amount equal to one hundred percent (100%) of Executive’s rate of base salary in effect as of the date of his termination of employment due to Disability. The Bank will make Disability payments as base salary continuation in the form of installments in accordance with the Bank’s customary payroll practices for the payment of base salary to executives without interruption following the effective date of Executive’s Disability (whether or not Executive remains employed with the Bank) and ending on the earlier of: (A) the date he returns to full-time employment in the same capacity as he was employed prior to his Disability; (B) his death; (C) his attainment of age 65 or (D) the expiration of the term of this Agreement in effect pursuant to Section 3 hereof on the effective date of Executive’s Disability. The Bank will reduce Disability payments by the amount of any short- or long-term disability benefits payable to Executive under any other disability programs sponsored by the Bank. In addition, during any period of Executive’s Disability, the Bank will continue to provide Executive and his dependents, to the greatest extent possible, with continued coverage under all benefit plans (including, without limitation, retirement plans and medical, dental and life insurance plans) in which Executive and/or his dependents participated prior to his Disability on the same terms as if he remained actively employed by the Bank.

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d. Termination for Cause.

i. The Board may, by written notice to Executive in the form and manner specified in this paragraph, immediately terminate his employment at any time for “Cause.” Executive shall have no right to receive compensation or other benefits for any period after termination for Cause, except for already vested benefits. Termination for Cause shall mean termination because of, in the good faith determination of the Board, Executive’s:

(1) Personal dishonesty;

(2) Incompetence;

(3) Willful misconduct;

(4) Breach of fiduciary duty involving personal profit;

(5) Intentional failure to perform stated duties;

(6) Willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order; or

(7) Material breach of any provision of this Agreement.

ii. Notwithstanding the foregoing, Executive’s termination for Cause will not become effective unless the Bank has delivered to Executive a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of the Board, at a meeting of the Board called and held for the purpose of finding that, in the good faith opinion of the Board (after reasonable notice to Executive and an opportunity for Executive to be heard before the Board with counsel), Executive was guilty of the conduct described above and specifying the particulars of this conduct.

e. Voluntary Termination by Executive. In addition to his other rights to terminate employment under this Agreement, Executive may voluntarily terminate employment during the term of this Agreement upon at least sixty (60) days prior written notice to the Board. Upon Executive’s voluntary termination, he will receive only his compensation and vested rights and benefits through the date of his termination. Following his voluntary termination of employment under this Section 10(e), Executive will be subject to the restrictions set forth in Section 10(h) of this Agreement for a period of one (1) year from his termination date.

f. Without Cause or With Good Reason.

i. In addition to termination pursuant to Sections 10(a) through 10(e), the Board may, by written notice to Executive, immediately terminate his employment at any time for a reason other than Cause (a termination “Without Cause”) and Executive may, by written notice to the Board, terminate his employment following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”).

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ii. Subject to Section 11 of this Agreement, in the event of termination of Executive’s employment under this Section 10(f), Executive will, within ten calendar days of the termination of Executive’s employment, receive a lump-sum cash payment equal to his base salary as of his termination date for the remaining term of the Agreement. Executive will also continue to participate in any benefit plans of the Bank that provide medical, dental and life insurance coverage for the remaining term of the Agreement, under terms and conditions no less favorable than the most favorable terms and conditions provided to senior executives during the same period. If the Bank cannot provide such coverage because Executive is no longer an employee, the Bank will provide Executive with comparable coverage on an individual policy basis or the cash equivalent.

iii. “Good Reason” exists if, without Executive’s express written consent, the Bank materially breaches any of its obligations under this Agreement. Without limitation, such a material breach will occur upon any of the following:

(1) A material reduction in Executive’s responsibilities or authority in connection with his employment with the Bank (other than a reduction resulting from the change in Executive’s position described in Section 1 of this Agreement);

(2) A material reduction in base salary contrary to the terms of this Agreement (other than a reduction resulting from the change in Executive’s position described in Sections 1 and 4 of this Agreement), or, following a Change in Control as defined in Section 11 of this Agreement, a material reduction in salary or material reduction in benefits below the amounts Executive was entitled to receive prior to the Change in Control;

(3) A requirement that Executive relocate his principal business office or his principal place of residence outside of the area consisting of a thirty-five (35) mile radius from the current main office and any branch of the Bank, or the assignment to Executive of duties that would reasonably require such a relocation.

Good Reason shall not exist unless and until Executive provides the Bank with written notice of the events alleged to constitute Good Reason within ninety (90) days of Executive’s knowledge of the occurrence of such events, and the Bank fails to cure such event within thirty (30) days of receipt of such notice, if curable. Executive must terminate his employment within ninety (90) days following the expiration of such cure period for the termination to be on account of Good Reason.

g. Termination Stemming from Regulatory Intervention. If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(3) and (g)(1)), the Bank’s obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion (i) pay the Executive all or part of the compensation withheld while its contract obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended.

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If the Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(4) and (g)(1)), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but the vested rights of each party shall not be affected.

If the Bank is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Act), all obligations under this Agreement shall terminate as of the date of default, but the provisions of this paragraph shall not affect any vested rights of the parties hereto.

All obligations under this Agreement shall be terminated, except to the extent determined that continuation of the contract is necessary of the continued operation of the Bank: (i) by the Comptroller of the Currency (the “Comptroller”) or his or her designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act, or (ii) by the Comptroller or his or her designee, at the time the Comptroller or his or her designee approves a supervisory merger to resolve problems related to the operations of the Bank or when the Bank is determined by the Comptroller to be in an unsafe or unsound condition.

Any payments made to the Executive pursuant to this Agreement, or otherwise, are subject to, and conditioned upon, their compliance with 12 U.S.C. Section 1828(k) and FDIC Regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

The Bank retains the right to demand the return of any severance payment made to Executive under Section 10 or 11 of this Agreement and the value of any benefit provided under Section 12 of this Agreement in the event the Bank obtains information indicating that Executive has committed, is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12 C.F.R. §359.4(a)(4). In the event the Bank exercises its right to demand the return of any payment made under this Agreement, Executive will return the payments to the Bank within 90 days of receipt of written notice from the Bank that Executive has committed, is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12 C.F.R. §359.4(a)(4).

h. Continuing Covenant Not to Compete or Interfere with Relationships. Regardless of anything herein to the contrary, following a termination of employment by the Bank or Executive pursuant to Section 10(e) or 10(g):

i. Executive’s obligations under Section 9(c) of this Agreement will continue in effect; and

ii. During the period ending on the first anniversary of such termination, Executive will not serve as an officer, director or employee of any bank holding company, bank, savings association, savings and loan holding company, mortgage company or other financial institution that offers products or services competing with those offered by the Bank or its affiliates from any office within thirty-five (35) miles from the main office or any branch of the Bank or its affiliates and, further, Executive will not interfere with the relationship of the Bank or its affiliates and any of their employees, agents, or representatives.

i. To the extent Executive is a member of the Board on the date of termination of employment, Executive will resign from the Board immediately following such termination of employment. Executive will be obligated to tender this resignation regardless of the method or manner of termination, and such resignation will not be conditioned upon any event or payment.

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11.Termination in Connection with a Change in Control.

a. For purposes of this Agreement, a “Change in Control” means any of the following events:

i. Merger: The Bank merges into or consolidates with another entity, or merges another corporation into the Bank, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Bank immediately before the merger or consolidation;

ii. Acquisition of Significant Share Ownership: There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Bank’s voting securities, but this clause (ii) shall not apply to beneficial ownership of Bank voting shares held in a fiduciary capacity by an entity of which the Bank directly or indirectly beneficially owns 50% or more of its outstanding voting securities;

iii. Change in Board Composition: During any period of two consecutive years, individuals who constitute the Bank’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Bank’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the members) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or

iv. Sale of Assets: The Bank sells to a third party all or substantially all of its assets.

b. Termination. If within the period ending one year after a Change in Control, (i) the Bank terminates Executive’s employment without Cause, or (ii) Executive voluntarily terminates his employment With Good Reason, the Bank will, within ten calendar days of the termination of Executive’s employment, make a lump-sum cash payment to him equal to one times Executive’s current annual base salary. The cash payment made under this Section 11(b) shall be made in lieu of any payment also required under Section 10(f) of this Agreement because of Executive’s termination of employment; however, Executive’s rights under Section 10(f) are not otherwise affected by this Section 11. Following termination of employment, Executive will also continue to participate in any benefit plans of the Bank that provide medical, dental and life insurance coverage upon terms no less favorable than the most favorable terms provided to senior executives. If the Bank cannot provide such coverage because Executive is no longer an employee, the Bank will provide Executive with comparable coverage on an individual basis or the cash equivalent. The medical, dental and life insurance coverage provided under this Section 11(b) shall cease upon the earlier of: (i) Executive’s death; (ii) Executive’s employment by another employer other than one of which he is the majority owner; or (iii) eighteen (18) months after his termination of employment.Notwithstanding the foregoing, in accordance with 12 C.F.R. Part 359, in no event will the value of the cash severance benefits plus the continuation of insurance benefits provided to the Executive under this paragraph (b) exceed twelve months of the Executive’s base salary at the time of his termination of employment.

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c. The provisions of Section 11 and Sections 13 through 25, including the defined terms used in such sections, shall continue in effect until the later of the expiration of this Agreement or one year following a Change in Control.

12.          Indemnification and Liability Insurance.

a. Indemnification. The Bank agrees to indemnify Executive (and his heirs, executors, and administrators), and to advance expenses related to this indemnification, to the fullest extent permitted under applicable law and regulations against any and all expenses and liabilities that Executive reasonably incurs in connection with or arising out of any action, suit, or proceeding in which he may be involved by reason of his service as an officer or director of the Bank or any of its subsidiaries or affiliates (whether or not he continues to be an officer or director at the time of incurring any such expenses or liabilities). Covered expenses and liabilities include, but are not limited to, judgments, court costs, and attorneys’ fees and the costs of reasonable settlements, subject to Board approval, if the action is brought against Executive in his capacity as an officer or director of the Bank or any of its subsidiaries or affiliates. Indemnification for expenses will not extend to matters related to Executive’s termination for Cause. Notwithstanding anything in this Section 12(a) to the contrary, the Bank will not be required to provide indemnification prohibited by applicable law or regulation. The obligations of this Section 12 will survive the term of this Agreement by a period of six (6) years.

b. Insurance. During the period for which the Bank must indemnify Executive, the Bank will provide Executive (and his heirs, executors, and administrators) with coverage under a directors’ and officers’ liability policy, at the Bank’s expense, that is at least equivalent to the coverage provided to directors and senior executives of the Bank.

13.          Reimbursement of Executive’s Expenses to Enforce this Agreement. The Bank will reimburse Executive for all out-of-pocket expenses, including, without limitation, reasonable attorneys’ fees, incurred by Executive in connection with his successful enforcement of the Bank’s obligations under this Agreement. Successful enforcement means the grant of an award of money or the requirement that the Bank take some specified action: (i) as a result of court order; or (ii) otherwise following an initial failure of the Bank to pay money or take action promptly following receipt of a written demand from Executive stating the reason that the Bank must make payment or take action under this Agreement.

14.          Limitation of Benefits Under Certain Circumstances. If the payments and benefits pursuant to Section 11 of this Agreement, either alone or together with other payments and benefits Executive has the right to receive from the Bank, would constitute a “parachute payment” under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), the payments and benefits pursuant to Section 11 shall be reduced or revised, in the manner determined by Executive, by the amount, if any, which is the minimum necessary to result in no portion of the payments and benefits under Section 11 being non-deductible to the Bank pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. The Bank’s independent public accountants will determine any reduction in the payments and benefits to be made pursuant to Section 11; the Bank will pay for the accountant’s opinion. If the Bank and/or Executive do not agree with the accountant’s opinion, the Bank will pay to Executive the maximum amount of payments and benefits pursuant to Section 11, as selected by Executive, that the opinion indicates have a high probability of not causing any of the payments and benefits to be non-deductible to the Bank and subject to the excise tax imposed under Section 4999 of the Code. The Bank may also request, and Executive has the right to demand that the Bank request, a ruling from the IRS as to whether the disputed payments and benefits pursuant to Section 11 have such tax consequences. The Bank will promptly prepare and file the request for a ruling from the IRS, but in no event will the Bank make this filing later than thirty (30) days from the date of the accountant’s opinion referred to above. The request will be subject to Executive’s approval prior to filing; Executive shall not unreasonably withhold his approval. The Bank and Executive agree to be bound by any ruling received from the IRS and to make appropriate payments to each other to reflect any IRS rulings, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. Nothing contained in this Agreement shall result in a reduction of any payments or benefits to which Executive may be entitled upon termination of employment other than pursuant to Section 11 hereof, or a reduction in the payments and benefits specified in Section 11, below zero.

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15.           Application of Section 409A.

a. This Agreement shall at all times be interpreted and operated in compliance with Section 409A of the Code (“Section 409A”). The parties intend that the payments and benefits under this Agreement will qualify for any available exceptions from coverage under Section 409A and this Agreement shall be interpreted accordingly. Without limiting the generality of the foregoing and notwithstanding any other provision of this Agreement to the contrary, (i) with respect to any payments and benefits under this Agreement to which Section 409A applies, all references in this Agreement to termination of Executive’s employment are intended to mean Executive’s “separation from service” within the meaning of Section 409A(a)(2)(A)(i), (ii) each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments, (iii) each such payment that is made within 2-1/2 months following the end of the calendar year that contains the date of Executive’s employment termination is intended to be exempt from Section 409A as a short-term deferral within the meaning of the final regulations under Section 409A, (iv) each such payment that does not qualify for exemption as a short-term deferral is intended to be exempt under the two-times pay exception of Treasury Reg. § 1.409A-1(b)(9)(iii), up to the limitation on the availability of that exception specified in the regulation, and (v) each payment that does not qualify for exemption as a short-term deferral or under the two-times pay exception shall be subject to delay (if necessary) as provided for “specified employees” below.

b. If Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination of employment , then to the extent necessary to avoid subjecting Executive to the imposition of any additional tax under Section 409A, amounts that would otherwise be payable under this Agreement during the six-month period immediately following Executive’s termination of employment shall not be paid to Executive during such period, but shall instead be accumulated and paid to Executive (or, in the event of Executive’s death, to Executive’s estate) in a lump sum on the first business day after the earlier of the date that is six months following Executive’s separation from service or the date of Executive’s death.

c. To the extent any reimbursements or in-kind benefits due to Executive under this Agreement are subject to Section 409A, (i) the expenses must be incurred during the term of this Agreement; (ii) the expenses eligible for reimbursement or the in-kind benefits provided in any given calendar year will not affect the expenses eligible for reimbursement or the in-kind benefits provided in any other calendar year; (iii) the reimbursement of an eligible expense must be made no later than the last day of calendar year following the calendar year in which the expense was incurred; and (iv) the right to reimbursements or in-kind benefits cannot be liquidated or exchanged for any other benefit.

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d. Notwithstanding the foregoing, no provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with Section 409A from Executive or any other individual to the Bank or any of their affiliates.

16.          Injunctive Relief. Upon a breach or threatened breach of Section 10(g) of this Agreement or the prohibitions upon disclosure contained in Section 9(c) of this Agreement, the parties agree that there is no adequate remedy at law for such breach, and the Bank shall be entitled to injunctive relief restraining Executive from such breach or threatened breach, but such relief shall not be the exclusive remedy for a breach of this Agreement. The parties further agree that Executive, without limitation, may seek injunctive relief to enforce the obligations of the Bank under this Agreement.

17.          Successors and Assigns.

a. This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Bank which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Bank.

b. Since the Bank is contracting for the unique and personal skills of Executive, Executive shall not assign or delegate his rights or duties under this Agreement without first obtaining the written consent of the Bank.

18.        No Mitigation. Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment.

19.         Notices. All notices, requests, demands and other communications in connection with this Agreement shall be made in writing and shall be deemed to have been given when delivered by hand or 48 hours after mailing at any general or branch United States Post Office, by registered or certified mail, postage prepaid, addressed to the Bank at its principal business office and to Executive at his home address as maintained in the records of the Bank.

20.         No Plan Created by this Agreement. Executive and the Bank expressly declare and agree that this Agreement was negotiated among them and that no provision or provisions of this Agreement are intended to, or shall be deemed to, create any plan for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”) or any other law or regulation, and each party expressly waives any right to assert the contrary. Any assertion in any judicial or administrative filing, hearing, or process that an ERISA plan was created by this Agreement shall be deemed a material breach of this Agreement by the party making the assertion.

21.         Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided.

22.         Applicable Law. Except to the extent preempted by federal law, the laws of the State of New Jersey shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.

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23.        Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any one provision shall not affect the validity or enforceability of the other provisions of this Agreement.

24.         Headings. Headings contained in this Agreement are for convenience of reference only.

25.        Entire Agreement. This Agreement, together with any modifications subsequently agreed to in writing by the parties, shall constitute the entire agreement among the parties with respect to the foregoing subject matter, other than written agreements applicable to specific plans, programs or arrangements described in Sections 5 and 6.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

ATTEST:	DELANCO FEDERAL SAVINGS BANK
/s/ Wendy E. Cruise	By:	/s/ Thomas J. Coleman
Witness		For the Entire Board of Directors
WITNESS:	EXECUTIVE
/s/ Mary A. Bonnette	By:	/s/ James E. Igo
		James E. Igo

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EX-10.2

Exhibit 10.2

DELANCO FEDERAL SAVINGS BANK

EMPLOYMENT AGREEMENT

THIS AGREEMENT (the “Agreement”), made this 3^rd day of October, 2017, by and between DELANCO FEDERAL SAVINGS BANK, a federally chartered savings bank (the “Bank”), and EVA MODI (the “Executive”).

WHEREAS, Executive serves in a position of substantial responsibility; and

WHEREAS, the Bank wishes to assure Executive’s services for the term of this Agreement; and

WHEREAS, Executive is willing to serve in the employ of the Bank during the term of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and upon the other terms and conditions provided for in this Agreement, the parties hereby agree as follows:

1.Employment. The Bank will employ Executive as Senior Vice-President and Chief Financial Officer for the term set forth herein. Executive will perform all duties and shall have all powers commonly incident to her positions, or which, consistent with those positions, the Board of Directors of the Bank (the “Board”) delegates to Executive. Executive also agrees to serve, if elected, as an officer and/or director of any subsidiary or affiliate of the Bank and to carry out the duties and responsibilities reasonably appropriate to those offices.

2.Location and Facilities. The Bank will furnish Executive with the working facilities and staff customary for executive officers with the titles and duties set forth in Section 1 and as are necessary for him to perform her duties. The location of such facilities and staff shall be at the principal administrative offices of the Bank, or at such other site or sites customary for such offices.

3.Term.

a. The term of this Agreement shall commence on the date of this Agreement (the “Effective Date”) and shall end on the first anniversary of the Effective Date and shall include all extensions of this initial term made pursuant to this Section 3.

b. Commencing on the first anniversary of the Effective Date and continuing on each anniversary of the Effective Date thereafter, the disinterested members of the Board may extend the Agreement term for an additional year, so that the remaining term of the Agreement again becomes twelve (12) months, unless Executive elects not to extend the term of this Agreement by giving written notice in accordance with Section 19 of this Agreement. The Board will review the Agreement and Executive’s performance annually for purposes of determining whether to extend the Agreement term and will include the rationale and results of its review in the minutes of its meeting. The Board will notify Executive as soon as possible after its annual review whether it has determined to extend the Agreement.

4.Base Compensation.

a. For her services as Senior Vice-President and Chief Financial Officer, the Bank agrees to pay Executive an annual base salary at the rate of $130,500 per year, payable in accordance with customary payroll practices.

b. During the term of this Agreement, the Board will review the level of Executive’s base salary at least annually, based upon factors deemed relevant, in order to determine Executive’s base salary through the remaining term of the Agreement.

5.Bonuses. Executive will participate in discretionary bonuses or other incentive compensation programs that the Bank or the Bank may sponsor for or award from time to time to senior management employees.

6.Benefit Plans. Executive will participate in life insurance, medical, dental, pension, profit sharing, retirement and stock-based compensation plans and other programs and arrangements that the Bank or may sponsor or maintain for the benefit of their employees.

7. Vacations and Leave.

a. Executive may take vacations and other leave in accordance with applicable policy for senior executives, or otherwise as approved by the Board.

b. In addition to paid vacations and other leave, the Board may grant Executive a leave or leaves of absence, with or without pay, at such time or times and upon such terms and conditions as the Board, in its discretion, may determine.

8.Expense Payments and Reimbursements. The Bank will reimburse Executive for all reasonable out-of-pocket business expenses incurred in connection with her services under this Agreement upon substantiation of such expenses in accordance with applicable policies of the Bank.

9.Loyalty and Confidentiality.

a. During the term of this Agreement, Executive will devote all her business time, attention, skill, and efforts to the faithful performance of her duties under this Agreement; provided, however, that from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations that will not present any conflict of interest with the Bank or any of its subsidiaries or affiliates, unfavorably affect the performance of Executive’s duties pursuant to this Agreement, or violate any applicable statute or regulation. Executive will not engage in any business or activity contrary to the business affairs or interests of the Bank or any of its subsidiaries or affiliates.

b. Nothing contained in this Agreement will prevent or limit Executive’s right to invest in the capital stock or other securities or interests of any business dissimilar from that of the Bank, or, solely as a passive, minority investor, in any business.

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c. Executive agrees to maintain the confidentiality of any and all information concerning the operations or financial status of the Bank and its affiliates; the names or addresses of any borrowers, depositors and other customers; any information concerning or obtained from such customers; and any other information concerning the Bank or its affiliates to which she may be exposed during the course of her employment. Executive further agrees that, unless required by law or specifically permitted by the Board in writing, she will not disclose to any person or entity, either during or subsequent to her employment, any of the above-mentioned information which is not generally known to the public, nor will she use the information in any way other than for the benefit of the Bank or its affiliates.

10.      Termination and Termination Pay. Subject to Section 11 of this Agreement, Executive’s employment under this Agreement may be terminated in the following circumstances:

a. Death. Executive’s employment under this Agreement will terminate upon her death during the term of this Agreement, in which event Executive’s estate will receive the compensation due to Executive through the last day of the calendar month in which her death occurred.

b. Retirement. This Agreement will terminate upon Executive’s retirement under the retirement benefit plan or plans in which he participates pursuant to Section 6 of this Agreement or otherwise.

c. Disability.

i. The Board or Executive may terminate Executive’s employment after having determined Executive has a Disability. For purposes of this Agreement, “Disability” means a physical or mental infirmity that impairs Executive’s ability to substantially perform her duties under this Agreement and results in Executive becoming eligible for long-term disability benefits under any long-term disability plans of the Bank (or, if no such plans exist, that impairs Executive’s ability to substantially perform her duties under this Agreement for a period of one hundred eighty (180) consecutive days). The Board will determine whether or not Executive is and continues to be permanently disabled for purposes of this Agreement in good faith, based upon competent medical advice and other factors that the Board reasonably believes to be relevant. As a condition to any benefits, the Board may require Executive to submit to physical or mental evaluations and tests as the Board or its medical experts deem reasonably appropriate.

ii. In the event of her Disability, Executive will no longer be obligated to perform services under this Agreement. Upon Executive’s Disability, the Bank will pay Executive, as Disability pay, an amount equal to one hundred percent (100%) of Executive’s rate of base salary in effect as of the date of her termination of employment due to Disability. The Bank will make Disability payments as base salary continuation in the form of installments in accordance with the Bank’s customary payroll practices for the payment of base salary to executives without interruption following the effective date of Executive’s Disability (whether or not Executive remains employed with the Bank) and ending on the earlier of: (A) the date she returns to full-time employment in the same capacity as she was employed prior to her Disability; (B) her death; (C) her attainment of age 65 or (D) the expiration of the term of this Agreement in effect pursuant to Section 3 hereof on the effective date of Executive’s Disability. The Bank will reduce Disability payments by the amount of any short- or long-term disability benefits payable to Executive under any other disability programs sponsored by the Bank. In addition, during any period of Executive’s Disability, the Bank will continue to provide Executive and her dependents, to the greatest extent possible, with continued coverage under all benefit plans (including, without limitation, retirement plans and medical, dental and life insurance plans) in which Executive and/or her dependents participated prior to her Disability on the same terms as if she remained actively employed by the Bank.

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d. Termination for Cause.

i. The Board may, by written notice to Executive in the form and manner specified in this paragraph, immediately terminate her employment at any time for “Cause.” Executive shall have no right to receive compensation or other benefits for any period after termination for Cause, except for already vested benefits. Termination for Cause shall mean termination because of, in the good faith determination of the Board, Executive’s:

(1) Personal dishonesty;

(2) Incompetence;

(3) Willful misconduct;

(4) Breach of fiduciary duty involving personal profit;

(5) Intentional failure to perform stated duties;

(6) Willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order; or

(7) Material breach of any provision of this Agreement.

ii. Notwithstanding the foregoing, Executive’s termination for Cause will not become effective unless the Bank has delivered to Executive a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of the Board, at a meeting of the Board called and held for the purpose of finding that, in the good faith opinion of the Board (after reasonable notice to Executive and an opportunity for Executive to be heard before the Board with counsel), Executive was guilty of the conduct described above and specifying the particulars of this conduct.

e. Voluntary Termination by Executive. In addition to her other rights to terminate employment under this Agreement, Executive may voluntarily terminate employment during the term of this Agreement upon at least sixty (60) days prior written notice to the Board. Upon Executive’s voluntary termination, she will receive only her compensation and vested rights and benefits through the date of her termination. Following her voluntary termination of employment under this Section 10(e), Executive will be subject to the restrictions set forth in Section 10(h) of this Agreement for a period of one (1) year from her termination date.

f. Without Cause or With Good Reason.

i. In addition to termination pursuant to Sections 10(a) through 10(e), the Board may, by written notice to Executive, immediately terminate her employment at any time for a reason other than Cause (a termination “Without Cause”) and Executive may, by written notice to the Board, terminate her employment following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”).

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ii. Subject to Section 11 of this Agreement, in the event of termination of Executive’s employment under this Section 10(f), Executive will, within ten calendar days of the termination of Executive’s employment, receive a lump-sum cash payment equal to her base salary as of her termination date for the remaining term of the Agreement. Executive will also continue to participate in any benefit plans of the Bank that provide medical, dental and life insurance coverage for the remaining term of the Agreement, under terms and conditions no less favorable than the most favorable terms and conditions provided to senior executives during the same period. If the Bank cannot provide such coverage because Executive is no longer an employee, the Bank will provide Executive with comparable coverage on an individual policy basis or the cash equivalent.

iii. “Good Reason” exists if, without Executive’s express written consent, the Bank materially breaches any of its obligations under this Agreement. Without limitation, such a material breach will occur upon any of the following:

(1) A material reduction in Executive’s responsibilities or authority in connection with her employment with the Bank (other than a reduction resulting from the change in Executive’s position described in Section 1 of this Agreement);

(2) A material reduction in base salary contrary to the terms of this Agreement (other than a reduction resulting from the change in Executive’s position described in Sections 1 and 4 of this Agreement), or, following a Change in Control as defined in Section 11 of this Agreement, a material reduction in salary or material reduction in benefits below the amounts Executive was entitled to receive prior to the Change in Control;

(3) A requirement that Executive relocate her principal business office or his principal place of residence outside of the area consisting of a thirty-five (35) mile radius from the current main office and any branch of the Bank, or the assignment to Executive of duties that would reasonably require such a relocation.

Good Reason shall not exist unless and until Executive provides the Bank with written notice of the events alleged to constitute Good Reason within ninety (90) days of Executive’s knowledge of the occurrence of such events, and the Bank fails to cure such event within thirty (30) days of receipt of such notice, if curable. Executive must terminate her employment within ninety (90) days following the expiration of such cure period for the termination to be on account of Good Reason.

g. Termination Stemming from Regulatory Intervention. If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(3) and (g)(1)), the Bank’s obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion (i) pay the Executive all or part of the compensation withheld while its contract obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended.

5

If the Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(4) and (g)(1)), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but the vested rights of each party shall not be affected.

If the Bank is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Act), all obligations under this Agreement shall terminate as of the date of default, but the provisions of this paragraph shall not affect any vested rights of the parties hereto.

All obligations under this Agreement shall be terminated, except to the extent determined that continuation of the contract is necessary of the continued operation of the Bank: (i) by the Comptroller of the Currency (the “Comptroller”) or his or her designee, at the time the Federal Deposit Insurance Corporation enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act, or (ii) by the Comptroller or his or her designee, at the time the Comptroller or his or her designee approves a supervisory merger to resolve problems related to the operations of the Bank or when the Bank is determined by the Comptroller to be in an unsafe or unsound condition.

Any payments made to the Executive pursuant to this Agreement, or otherwise, are subject to, and conditioned upon, their compliance with 12 U.S.C. Section 1828(k) and FDIC Regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

The Bank retains the right to demand the return of any severance payment made to Executive under Section 10 or 11 of this Agreement and the value of any benefit provided under Section 12 of this Agreement in the event the Bank obtains information indicating that Executive has committed, is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12 C.F.R. §359.4(a)(4). In the event the Bank exercises its right to demand the return of any payment made under this Agreement, Executive will return the payments to the Bank within 90 days of receipt of written notice from the Bank that Executive has committed, is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses outlined under 12 C.F.R. §359.4(a)(4).

h. Continuing Covenant Not to Compete or Interfere with Relationships. Regardless of anything herein to the contrary, following a termination of employment by the Bank or Executive pursuant to Section 10(e) or 10(g):

i. Executive’s obligations under Section 9(c) of this Agreement will continue in effect; and

ii. During the period ending on the first anniversary of such termination, Executive will not serve as an officer, director or employee of any bank holding company, bank, savings association, savings and loan holding company, mortgage company or other financial institution that offers products or services competing with those offered by the Bank or its affiliates from any office within thirty-five (35) miles from the main office or any branch of the Bank or its affiliates and, further, Executive will not interfere with the relationship of the Bank or its affiliates and any of their employees, agents, or representatives.

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11.          Termination in Connection with a Change in Control.

a. For purposes of this Agreement, a “Change in Control” means any of the following events:

i. Merger: The Bank merges into or consolidates with another entity, or merges another corporation into the Bank, and as a result, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Bank immediately before the merger or consolidation;

ii. Acquisition of Significant Share Ownership: There is filed, or is required to be filed, a report on Schedule 13D or another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner of 25% or more of a class of the Bank’s voting securities, but this clause (ii) shall not apply to beneficial ownership of Bank voting shares held in a fiduciary capacity by an entity of which the Bank directly or indirectly beneficially owns 50% or more of its outstanding voting securities;

iii.   Change in Board Composition: During any period of two consecutive years, individuals who constitute the Bank’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a majority of the Bank’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the members) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or

iv.  Sale of Assets: The Bank sells to a third party all or substantially all of its assets.

b. Termination. If within the period ending one year after a Change in Control, (i) the Bank terminates Executive’s employment without Cause, or (ii) Executive voluntarily terminates her employment With Good Reason, the Bank will, within ten calendar days of the termination of Executive’s employment, make a lump-sum cash payment to her equal to one times Executive’s current annual base salary. The cash payment made under this Section 11(b) shall be made in lieu of any payment also required under Section 10(f) of this Agreement because of Executive’s termination of employment; however, Executive’s rights under Section 10(f) are not otherwise affected by this Section 11. Following termination of employment, executive will also continue to participate in any benefit plans of the Bank that provide medical, dental and life insurance coverage upon terms no less favorable than the most favorable terms provided to senior executives. If the Bank cannot provide such coverage because Executive is no longer an employee, the Bank will provide Executive with comparable coverage on an individual basis or the cash equivalent. The medical, dental and life insurance coverage provided under this Section 11(b) shall cease upon the earlier of: (i) Executive’s death; (ii) Executive’s employment by another employer other than one of which he is the majority owner; or (iii) eighteen (18) months after his termination of employment. Notwithstanding the foregoing, in accordance with 12 C.F.R. Part 359, in no event will the value of the cash severance benefits plus the continuation of insurance benefits provided to the Executive under this paragraph (b) exceed twelve months of the Executive’s base salary at the time of her termination of employment.

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c. The provisions of Section 11 and Sections 13 through 25, including the defined terms used in such sections, shall continue in effect until the later of the expiration of this Agreement or one year following a Change in Control.

12.          Indemnification and Liability Insurance.

a. Indemnification. The Bank agrees to indemnify Executive (and her heirs, executors, and administrators), and to advance expenses related to this indemnification, to the fullest extent permitted under applicable law and regulations against any and all expenses and liabilities that Executive reasonably incurs in connection with or arising out of any action, suit, or proceeding in which she may be involved by reason of her service as an officer of the Bank or any of its subsidiaries or affiliates (whether or not she continues to be an officer at the time of incurring any such expenses or liabilities). Covered expenses and liabilities include, but are not limited to, judgments, court costs, and attorneys’ fees and the costs of reasonable settlements, subject to Board approval, if the action is brought against Executive in her capacity as an officer or director of the Bank or any of its subsidiaries or affiliates. Indemnification for expenses will not extend to matters related to Executive’s termination for Cause. Notwithstanding anything in this Section 12(a) to the contrary, the Bank will not be required to provide indemnification prohibited by applicable law or regulation. The obligations of this Section 12 will survive the term of this Agreement by a period of six (6) years.

b. Insurance. During the period for which the Bank must indemnify Executive, the Bank will provide Executive (and her heirs, executors, and administrators) with coverage under a directors’ and officers’ liability policy, at the Bank’s expense, that is at least equivalent to the coverage provided to directors and senior executives of the Bank.

13.         Reimbursement of Executive’s Expenses to Enforce this Agreement. The Bank will reimburse Executive for all out-of-pocket expenses, including, without limitation, reasonable attorneys’ fees, incurred by Executive in connection with her successful enforcement of the Bank’s obligations under this Agreement. Successful enforcement means the grant of an award of money or the requirement that the Bank take some specified action: (i) as a result of court order; or (ii) otherwise following an initial failure of the Bank to pay money or take action promptly following receipt of a written demand from Executive stating the reason that the Bank must make payment or take action under this Agreement.

14.          Limitation of Benefits Under Certain Circumstances. If the payments and benefits pursuant to Section 11 of this Agreement, either alone or together with other payments and benefits Executive has the right to receive from the Bank, would constitute a “parachute payment” under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), the payments and benefits pursuant to Section 11 shall be reduced or revised, in the manner determined by Executive, by the amount, if any, which is the minimum necessary to result in no portion of the payments and benefits under Section 11 being non-deductible to the Bank pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code. The Bank’s independent public accountants will determine any reduction in the payments and benefits to be made pursuant to Section 11; the Bank will pay for the accountant’s opinion. If the Bank and/or Executive do not agree with the accountant’s opinion, the Bank will pay to Executive the maximum amount of payments and benefits pursuant to Section 11, as selected by Executive, that the opinion indicates have a high probability of not causing any of the payments and benefits to be non-deductible to the Bank and subject to the excise tax imposed under Section 4999 of the Code. The Bank may also request, and Executive has the right to demand that the Bank request, a ruling from the IRS as to whether the disputed payments and benefits pursuant to Section 11 have such tax consequences. The Bank will promptly prepare and file the request for a ruling from the IRS, but in no event will the Bank make this filing later than thirty (30) days from the date of the accountant’s opinion referred to above. The request will be subject to Executive’s approval prior to filing; Executive shall not unreasonably withhold her approval. The Bank and Executive agree to be bound by any ruling received from the IRS and to make appropriate payments to each other to reflect any IRS rulings, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. Nothing contained in this Agreement shall result in a reduction of any payments or benefits to which Executive may be entitled upon termination of employment other than pursuant to Section 11 hereof, or a reduction in the payments and benefits specified in Section 11, below zero.

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15.Application of Section 409A.

a. This Agreement shall at all times be interpreted and operated in compliance with Section 409A of the Code (“Section 409A”). The parties intend that the payments and benefits under this Agreement will qualify for any available exceptions from coverage under Section 409A and this Agreement shall be interpreted accordingly. Without limiting the generality of the foregoing and notwithstanding any other provision of this Agreement to the contrary, (i) with respect to any payments and benefits under this Agreement to which Section 409A applies, all references in this Agreement to termination of Executive’s employment are intended to mean Executive’s “separation from service” within the meaning of Section 409A(a)(2)(A)(i), (ii) each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments, (iii) each such payment that is made within 2-1/2 months following the end of the calendar year that contains the date of Executive’s employment termination is intended to be exempt from Section 409A as a short-term deferral within the meaning of the final regulations under Section 409A, (iv) each such payment that does not qualify for exemption as a short-term deferral is intended to be exempt under the two-times pay exception of Treasury Reg. § 1.409A-1(b)(9)(iii), up to the limitation on the availability of that exception specified in the regulation, and (v) each payment that does not qualify for exemption as a short-term deferral or under the two-times pay exception shall be subject to delay (if necessary) as provided for “specified employees” below.

b. If Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination of employment , then to the extent necessary to avoid subjecting Executive to the imposition of any additional tax under Section 409A, amounts that would otherwise be payable under this Agreement during the six-month period immediately following Executive’s termination of employment shall not be paid to Executive during such period, but shall instead be accumulated and paid to Executive (or, in the event of Executive’s death, to Executive’s estate) in a lump sum on the first business day after the earlier of the date that is six months following Executive’s separation from service or the date of Executive’s death.

c. To the extent any reimbursements or in-kind benefits due to Executive under this Agreement are subject to Section 409A, (i) the expenses must be incurred during the term of this Agreement; (ii) the expenses eligible for reimbursement or the in-kind benefits provided in any given calendar year will not affect the expenses eligible for reimbursement or the in-kind benefits provided in any other calendar year; (iii) the reimbursement of an eligible expense must be made no later than the last day of calendar year following the calendar year in which the expense was incurred; and (iv) the right to reimbursements or in-kind benefits cannot be liquidated or exchanged for any other benefit.

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d. Notwithstanding the foregoing, no provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with Section 409A from Executive or any other individual to the Bank or any of their affiliates.

16.         Injunctive Relief. Upon a breach or threatened breach of Section 10(g) of this Agreement or the prohibitions upon disclosure contained in Section 9(c) of this Agreement, the parties agree that there is no adequate remedy at law for such breach, and the Bank shall be entitled to injunctive relief restraining Executive from such breach or threatened breach, but such relief shall not be the exclusive remedy for a breach of this Agreement. The parties further agree that Executive, without limitation, may seek injunctive relief to enforce the obligations of the Bank under this Agreement.

17.          Successors and Assigns.

a. This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Bank which shall acquire, directly or indirectly, by merger, consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Bank.

b. Since the Bank is contracting for the unique and personal skills of Executive, Executive shall not assign or delegate her rights or duties under this Agreement without first obtaining the written consent of the Bank.

18.        No Mitigation. Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment.

19.         Notices. All notices, requests, demands and other communications in connection with this Agreement shall be made in writing and shall be deemed to have been given when delivered by hand or 48 hours after mailing at any general or branch United States Post Office, by registered or certified mail, postage prepaid, addressed to the Bank at its principal business office and to Executive at her home address as maintained in the records of the Bank.

20.         No Plan Created by this Agreement. Executive and the Bank expressly declare and agree that this Agreement was negotiated among them and that no provision or provisions of this Agreement are intended to, or shall be deemed to, create any plan for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”) or any other law or regulation, and each party expressly waives any right to assert the contrary. Any assertion in any judicial or administrative filing, hearing, or process that an ERISA plan was created by this Agreement shall be deemed a material breach of this Agreement by the party making the assertion.

21.         Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided.

22.         Applicable Law. Except to the extent preempted by federal law, the laws of the State of New Jersey shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.

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23.         Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any one provision shall not affect the validity or enforceability of the other provisions of this Agreement.

24.         Headings. Headings contained in this Agreement are for convenience of reference only.

25.        Entire Agreement. This Agreement, together with any modifications subsequently agreed to in writing by the parties, shall constitute the entire agreement among the parties with respect to the foregoing subject matter, other than written agreements applicable to specific plans, programs or arrangements described in Sections 5 and 6.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

ATTEST:	DELANCO FEDERAL SAVINGS BANK
/s/ Wendy E. Cruise	By:	/s/ Thomas J. Coleman
		For the Entire Board of Directors
WITNESS:	EXECUTIVE
/s/ Mary A. Bonnette	By:	/s/ Eva Modi
		Eva Modi

11

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: November 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: November 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 September 30, 2017, as filed with the Securities and Exchange Commission (the “Report”), we hereby certify pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

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

XML

Document And Entity Information - shares	6 Months Ended
	Sep. 30, 2017	Nov. 03, 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	Sep. 30, 2017
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
ASSETS
Cash and amounts due from banks	$ 671,467	$ 511,355
Interest-bearing deposits	8,302,679	6,487,188
Total cash and cash equivalents	8,974,146	6,998,543
Investment Securities
Securities available-for-sale (amortized cost of $2,074,499 and $2,588,817 at September 30, 2017 and March 31, 2017, respectively)	2,086,322	2,594,888
Securities held-to-maturity (fair value $21,418,582 and $21,797,695 at September 30, 2017 and March 31, 2017, respectively)	21,956,622	22,622,835
Total investment securities	24,042,944	25,217,723
Loans, net of allowance for loan losses of $1,010,552 at September 30, 2017 (unaudited), $1,001,449 at March 31, 2017	83,898,782	84,414,361
Accrued interest receivable	389,247	378,243
Real estate owned	1,461,198	1,271,302
Federal Home Loan Bank, at cost	102,000	124,300
Premises and equipment, net	5,936,959	6,047,703
Deferred income taxes	1,813,750	1,981,950
Bank-owned life insurance	178,514	178,514
Other assets	252,663	374,714
Total assets	127,050,203	126,987,353
LIABILITIES
Non-interest bearing deposits	10,255,268	11,703,567
Interest bearing deposits	101,710,880	100,377,179
Total deposits	111,966,148	112,080,746
Accrued interest payable	6,285	6,273
Advance payments by borrowers for taxes and insurance	504,348	500,485
Other liabilities	901,705	908,005
Total liabilities	113,378,486	113,495,509
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value, 5,000,000 authorized at September 30, 2017 and March 31, 2017, no shares issued
Common stock, $.01 par value, 20,000,000 shares authorized; 945,425 shares issued and outstanding at September 30, 2017 and March 31, 2017	9,454	9,454
Additional paid-in capital	10,052,460	10,029,506
Retained earnings, substantially restricted	4,189,933	4,036,465
Unearned common stock held by employee stock ownership plan	(455,514)	(455,514)
Accumulated other comprehensive (loss)	(124,616)	(128,067)
Total stockholder’s equity	13,671,717	13,491,844
Total liabilities and stockholders’ equity	$ 127,050,203	$ 126,987,353

XML

Consolidated Statements of Financial Condition (Current Period Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Investment securities available-for-sale, amortized cost	$ 2,074,499	$ 2,588,817
Investment and mortgage backed securities held-to-maturity, fair value	21,418,582	21,797,695
Loans, allowance for loan losses	$ 1,010,552	$ 1,001,449
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		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INTEREST INCOME
Loans	$ 909,639	$ 874,301	$ 1,808,618	$ 1,766,779
Investment securities	160,117	140,834	317,638	315,767
Total interest income	1,069,756	1,015,135	2,126,256	2,082,546
INTEREST EXPENSE
Interest-bearing checking accounts	8,435	11,411	16,773	22,152
Passbook and money market accounts	31,867	30,025	62,844	59,692
Certificates of deposits	85,836	90,558	170,131	181,998
Federal Home Loan Bank Advances		2,064	15	4,812
Total interest expense	126,138	134,058	249,763	268,654
Net interest income	943,618	881,077	1,876,493	1,813,892
Recapture of loan losses	(65,000)		(85,000)	(48,000)
Net interest income after recapture for loan losses	1,008,618	881,077	1,961,493	1,861,892
NON-INTEREST INCOME
Gain on sale of an asset			71,516
Gain (Loss) on sale of real estate owned	23,415	2,692	23,415	(2,840)
Service charges	34,331	29,595	63,351	62,430
Rental income	9,600	12,600	19,200	25,035
Other	3,906	3,949	8,013	7,429
Total non-interest income	71,252	48,836	185,495	92,054
NON-INTEREST EXPENSE
Salaries and employee benefits	406,427	400,610	816,803	797,638
Advertising	3,689	6,812	7,907	11,377
Office supplies, telephone and postage	28,113	28,775	54,213	54,007
Loan expenses	6,860	5,956	20,233	34,332
Occupancy expense	140,104	149,977	281,198	293,353
Federal insurance premiums	20,031	42,628	42,062	85,426
Real estate owned loss reserve	28,000		80,218	13,100
Data processing expenses	63,887	62,544	125,704	127,158
ATM expenses	13,701	9,995	25,144	16,300
Bank charges and fees	19,487	22,609	41,628	44,102
Insurance and surety bond premiums	20,146	23,622	40,767	44,729
Dues and subscriptions	9,817	12,925	17,055	24,454
Professional fees	69,832	70,769	150,615	125,620
Real Estate Owned expense, net	26,442	29,566	54,422	62,151
Other	31,134	35,699	67,651	69,861
Total non-interest expense	887,670	902,487	1,825,620	1,803,608
INCOME - BEFORE INCOME TAX EXPENSE	192,200	27,426	321,368	150,338
Income tax	94,652	9,357	167,900	72,452
NET INCOME	$ 97,548	$ 18,069	$ 153,468	$ 77,886
INCOME PER COMMON SHARE (in dollars per share)	$ 0.11	$ 0.02	$ 0.17	$ 0.09

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 153,468	$ 77,886
Unrealized holding gain - net of deferred tax - of $4,729 and $16,918 in 2017 and 2016	3,451	2,753
Total other comprehensive income	$ 156,919	$ 80,639

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($)	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Unrealized holding gains, deferred tax	$ 4,729	$ 16,918

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 6 months ended Sep. 30, 2017 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Employee Stock Ownership Plan [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Mar. 31, 2017	945,425
Balance at Mar. 31, 2017	$ 9,454	$ 10,029,506	$ 4,036,465	$ (455,514)	$ (128,067)	$ 13,491,844
Net income			153,468			153,468
Other comprehensive income, net of tax:					3,451	3,451
Employee stock option expense		22,954				22,954
Balance (in shares) at Sep. 30, 2017	945,425
Balance at Sep. 30, 2017	$ 9,454	$ 10,052,460	$ 4,189,933	$ (455,514)	$ (124,616)	$ 13,671,717

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flow from operating activities
Net income	$ 153,468	$ 77,886
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax expense	165,899	70,501
Depreciation	117,144	132,491
Discount accretion net of premium amortization	242	(31,427)
Recapture of loan losses	(85,000)	(48,000)
Gain (Loss) on sale of real estate owned	(23,415)	2,840
Gain on sale of an asset	(71,516)
Compensation expense for stock options	22,954	17,610
(Increase) decrease in:
Accrued interest receivable	(11,003)	18,398
Other assets	122,051	105,994
Increase (decrease) in:
Accrued interest payable	12	78
Other liabilities	(6,300)	57,504
Net cash provided by operating activities	384,536	403,875
Cash flows from investing activities
Proceeds of securities available for sale	514,318	513,976
Purchase of securities available for sale		(500,000)
Purchases of securities held-to-maturity		(14,965,000)
Proceeds from maturities and principal repayments of securities held-to-maturity	665,972	15,930,445
Redemption of investment required by law – stock in Federal Home Loan Bank	22,300	84,500
Proceeds from sale of real estate owned	163,300	466,285
Net (increase) decrease in loans	342,312	(1,281,527)
Purchases of premises and equipment	(6,400)	(5,545)
Net cash provided by investing activities	1,701,802	243,134
Cash flows from financing activities
(Decrease) increase in deposits	(114,598)	1,225,772
Increase in advance payments by borrowers for taxes and insurance	3,863	48,791
Decrease in Federal Home Loan bank Advances		(2,000,000)
Net cash used in financing activities	(110,735)	(725,437)
Net decrease in cash and cash equivalents	1,975,603	(78,428)
Cash and cash equivalents, beginning of the period	6,998,543	12,127,388
Cash and cash equivalents, end of period	8,974,146	12,048,960
Supplemental Disclosures:
Cash paid during the period for interest	249,738	274,562
Cash paid during the period for income taxes	2,500	2,500
Loans transferred to foreclosed real estate during the period	410,000	148,931
Net change in unrealized gain on securities available-for-sale net of tax	$ 3,451	$ 2,753

XML

Note 1 - Basis of Presentation

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Basis of Accounting [Text Block]

( 1 ) Basis of Presentation

On

October 16, 2013,

Delanco Bancorp, Inc., a New Jersey corporation (the “

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

525,423

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

420,002

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

$3,280,000,

net of costs of

$923,000.

The accompanying unaudited consolidated financial statements have been prepared in accordance with instruction

s 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

six

month periods ended

September 30, 2017

are

not

necessarily indicative of the results that

may

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

10

-K for the year ended

March 31, 2017.

XML

Note 2 - Use of Estimates

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Use of Estimates [Text Block]

( 2 ) Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumption

s 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

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 4 ) Income Taxes

 

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

740

“Accounting for Uncertainty in Income Taxes”. ASC Topic

740

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

740

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

no

significant uncertain tax positions requiring recognition in its financial statements.   

Tax year

2016

remains subject to examination by Federal and

2014

through

2016

by New Jersey taxing authorities. In the event the Bank is assessed for interest and/or penalties by taxing authorities, such assessed amou

nts 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 recover

ed 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 regula

tory 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

125

basis points.

XML

Note 4 - Income Taxes

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

( 4 ) Income Taxes

 

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

740

“Accounting for Uncertainty in Income Taxes”. ASC Topic

740

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

740

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

no

significant uncertain tax positions requiring recognition in its financial statements.   

Tax year

2016

remains subject to examination by Federal and

2014

through

2016

by New Jersey taxing authorities. In the event the Bank is assessed for interest and/or penalties by taxing authorities, such assessed amou

nts will be classified in the financial statements as income tax expense

.

XML

Note 5 - Earnings Per Share

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

( 5 ) Earnings Per Share

Basic earnings per share (“

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

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

The calculated basic and dilutive EPS are as follows:

	Six Months Ended September 30,
	2017		2016
Numerator	$	153,468	$	77,886
Denominators:
Basic shares outstanding		910,239		906,720
Effect of dilutive securities		7,602		4,136
Dilutive shares outstanding		917,841		910,856
Earnings per share:
Basic	$	0.17	$	0.09
Dilutive	$	0.17	$	0.09

XML

Note 6 - Termination of Regulatory Agreement

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

(

6

)

     Termination of Regulatory Agreement

On

September 27, 2017,

the Office of the Comptroller of the Currency (the “

OCC”) terminated the formal written agreement dated

November 21, 2012

between the OCC and the Bank, effective immediately. In addition, the OCC terminated the higher individual minimum capital ratios that the OCC had required for the Bank. At

September 30, 2017,

the Bank exceeded the minimum regulatory requirements to be considered “well capitalized.” As a result of the OCC's action, the Bank is

no

longer considered to be in “troubled condition.”

XML

Note 7 - Recent Accounting Pronouncements

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

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

( 7 ) Recent Accounting Pronouncements

In

August 2017,

the FASB issued ASU

2017

-

12:

Derivatives and Hedging (Topic

815

): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU-

2017

is effective for public business entities for fiscal years beginning after

December 15, 2018,

with early adoption, including adoption in the interim period, permitted. The Company plans to adopt ASU-

2017

on

April 1, 2019.

ASU

2017

-

12

requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. While the Company continues to assess all potential impacts of the standard, the Company currently expects the adoption to have immaterial impact to the financial statements.

In Ma

y

2017,

the FASB issued ASU

2017

-

09:

Compensation —Stock Compensation (Topic

718

): Scope of Modification Accounting. The Board is issuing this update to provide clarity and reduce both (

1

) diversity in practice and (

2

) cost and complexity when applying the guidance in Topic

718,

Compensation – Stock Compensation, to a change to the terms or conditions of a shared-based payment amount. The amendments in this update affect any entity that changes the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718.

To date, the Company has

not

changed the terms or conditions of a share-based payment award. As a result, the company does

not

anticipate an impact to the consolidated financial statements.

In

March 2017,

the FASB issued ASU

2017

-

08:

Receivables

—Nonrefundable Fees and Other Costs (Subtopic

310

-

20

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

December 15, 2018.

The Company does

not

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

not

anticipate an impact to the consolidated financial statements.

Also in

March 2017,

the FASB issued ASU

2017

-

07:

Compensation

—Retirement Benefits (Topic

715

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

715,

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

may

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

December 15, 2017,

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

not

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

2017.

As a result, the Company does

not

anticipate an impact to the consolidated financial statements.

In

January 2017,

the FASB issued ASU

2017

-

03:

Accounting Changes and Error Correcti

ons (Topic

250

) and Investments—Equity Method and Joint Ventures (Topic

323

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

September 22, 2016

and

November 17, 2016

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

not

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

Also in

January 2017,

the FASB issued ASU

2017

-

01:

Business Combinations (Topic

805

), Clarifying the Definition of a Business. The amendme

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

December 15, 2017,

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

not

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

In

December 2016,

the FASB issued ASU

2016

-

20;

Technical Corrections and Improvement

s to Topic

606,

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

No.

2014

-

09

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

not

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

not

anticipate a material impact to the consolidated financial statements.

Also in

December 2016,

the FASB issued ASU

2016

-

19:

Technical Corrections and Improvements. The amendments in this update cover a wide range of Topics in the Codification. The amendments in this

update represent changes to make corrections or improvements to the Codification that are

not

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

not

anticipate a material impact to the consolidated financial statements.

In

November 2016,

the FASB issued ASU

2016

-

18:

Statement of Cash Flows (Topic

230

): Restricted Cash, a consensus of the FASB Emerging Task Force. Stakeholders indicated that diversity exists in

the classification and presentation of changes in restricted cash on the statement of cash flows under Topic

230.

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

230.

The Company evaluated the amendments of this update and does

not

anticipate an impact to the consolidated financial statements.

In

August 2016,

the FASB issued ASU

2016

-

15:

Statement of C

ash Flows (Topic

230

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

230,

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

eight

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

zero

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

not

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

230.

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

December 15, 2017,

and interim periods within those fiscal years. The Company does

not

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

In

June 2016,

the FASB issued AS

U

2016

-

13:

Financial Instruments—Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments. Topic

326

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

326

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

326

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

not

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

not

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

December 15, 2019.

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

In

May 2016,

the FASB issued ASU

2016

-

12:

Revenue from Contracts with Customers (Topic

606

): Narrow-Scope Improvements and Practical Expedients. The amendments in this update address nar

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

No,

2014

-

09,

Revenue from Contracts with Customers (Topic

606

), which is

not

yet effective. The Company does

not

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

In

April 2016,

the FASB issued ASU

2016

-

10:

Revenue from Contracts with Customers (Topic

606

): Identifying Performance Obligatio

ns and Licensing. The amendments in this update clarify the following

two

aspects of Topic

606:

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

not

change the core principle of the guidance in Topic

606.

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

as

the effective date and transition requirements in Topic

606.

The Company does

not

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

In

March 2016,

the FASB issued ASU

2016

-

09:

Compensation

—Stock Compensation (Topic

718

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

718

that was indefinitely deferred shortly after the issuance of FASB Statement

No,

123

(revised

2004

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

December 15, 2016,

and interim periods within those annual periods. The Company does

not

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

Also in

March 2016,

the FASB issued ASU

2016

-

08:

Revenue from Contracts with Customers (Topic

606

): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The a

mendments in this update clarify the implementation guidance included in Topic

606

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

606.

The Company does

not

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

Also in

March 2016,

the FASB issued ASU

2016

-

07:

Investments

– Equity Method and Joint Ventures (Topic

323

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

323

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

December 15, 2016.

The Company does

not

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

Also in

March 2016,

the FASB issued ASU

2016

-

05:

Derivatives and Hedging (Topic

815

): Effect of Derivative Contract Novations on Existing

Hedge Accounting Relationships. The term novation refers to replacing

one

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

815,

does

not,

in and of itself, require de

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

December 15, 2016,

and interim periods within those fiscal years. The Company does

not

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

Also in

March 2016,

the FASB issued ASU

2016

-

04:

Liabilities

— Extinguishments of Liabilities (Subtopic

405

-

20

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

third

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

405

-

20

includes de

-recognition guidance for both financial liabilities and nonfinancial liabilities, and Topic

606.

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

405

-

20

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

606,

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

December 15, 2017,

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

not

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

XML

Note 8 - Fair Value of Financial Instruments

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Fair Value, Measurement Inputs, Disclosure [Text Block]

( 8 ) Fair Value of Financial Instruments

ASC Topic

820

-

10

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

Topic

820

does

not

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

820

-

10

did

not

have a material impact on the consolidated financial statements.

ASC Topic

820

establishes a fair value hierarchy that prioritizes the inputs to valuatio

n techniques used to measure fair value into

three

broad levels, as described below:

●	Level 1	Level 1 input are  unadjusted quoted prices in active markets for identical assets or liabilities.
●	Level 2	Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets, quoted prices in markets that are not considered to be active, and observab le 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)
September 30, 2017
Available-for-sale securities	$	−	$	2,086	$	−
March 31, 2017
Available-for-sale securities	$	−	$	2,595	$	−

Assets and liabilities measured at fair value on a

non-recurring basis at

September 30, 2017

and

March 31, 2017

are as follows (dollars in thousands):

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
September 30, 2017
Impaired loans	$	−	$	−	$	3,573
Real estate owned		−		−		1,461
Total	$	−	$	−	$	5,034
March 31, 2017
Impaired loans	$	−	$	−	$	4,883
Real estate owned		−		−		1,271
Total	$	−	$	−	$	6,154

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

may

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

A fina

ncial 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

September 30,

201

7

and

March 31, 2017

was as follows:

	September 30, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	8,974	$	8,974	$	−	$	−
Investment securities -available for sale		2,074		−		2,086		−
Investment securities-held to maturity		21,957		−		21,419		−
Loans – net		83,899		−		−		83,270
FHLB stock		102		102		−		−
Accrued interest receivable		389		389		−		−
Bank –owned life insurance		179		179		−		−
Real Estate Owned		1,461		−		−		1,461
Total financial assets	$	119,035	$	9,644	$	23,505	$	84,731
Financial Liabilities:
Deposits -non-interest bearing	$	10,255	$	10,255	$	−	$	−
Deposits-interest bearing		101,711		−		100,367		−
Advance payments by borrowers for taxes and insurance		504		504		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	112,476	$	10,765	$	100,367	$	−

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

Off-balance sheet instruments

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

have nominal value prior to funding.

	September 30, 2017				March 31, 2017
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	5,580	$	−	$	6,620	$	−

XML

Note 9 - Loans

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

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

( 9 ) Loans

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

for loan losses.

Residential real estate loans consist of loans secured by

one

to

four

family residences located in the Bank

’s market area. The Bank has originated

one

to

four

family residential mortgage loans in amounts up to

80%

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

30

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

30

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

may

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

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

80%

of the appraised value or cost of the property and are secured by improved property such as multi-family dwelling units, office buildings, retail stores, wareh

ouses, 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 gener

ally 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 accomm

odations 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

September 30, 2017

and

March 31, 2017

are summarized as follows (dollars in thousands):

	Septemb er 30,			March 31,
	2017			2017
Residential (one-to four-family) real estate	$	61,019		$	61,419
Multi-family and commercial real estate		11,634			12,071
Commercial		2,493			1,858
Home equity		8,695			8,812
Consumer		676			637
Construction		446			680
Total loans		84,963			85,477
Net deferred loan origination fees		(54	)		(62	)
Allowance for loan losses		(1,010	)		(1,001	)
Loans, net	$	83,899		$	84,414

The Bank is subject to a loans-to-

one

-borrower limitation of

15%

of capital funds. At

September 30, 2017,

the loans-to-

one

-borrower limitation was

$1.9

million; this excluded an additional

10%

of adjusted capital funds or approximately

$1.3

million, which

may

be loaned if collateralized by readily marketable securities. At

September 30, 2017,

there were

no

loans outstanding or committed to any

one

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

one

-borrower limitations of

15%

of capital funds.

 

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

Pass

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

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

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

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

Special Mention

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

may

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

not

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

Classified

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

An asset is considered

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

Assets classified as “

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

not

yet fully ascertainable in amount.

Assets classified as “

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

may

continue after the classification and potential charge-off.

Non-Performing Loans

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

ninety

days delinquent and still accruing interest, renegotiated loans and impaired loans.

Loans are generally placed on non-accrual status if, in the opinion of management, collection is doubtful, or when principal or interest is past due

90

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

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

not

exist.

  As of

September 30, 2017,

the Bank has entered into formal forbearance agreements with

six

relationships totaling

$861

thousandthat require current payments while the borrowers restructure their finances

.

The following table represents loans by credit quality indicator at

September 30, 2017 (

dollars in thousands):

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	58,749	$	−	$	−	$	2,270	$	61,019
Multi-family and commercial real estate		10,637		−		88		909		11,634
Commercial		2,210		−		166		117		2,493
Home equity		8,470		−		−		225		8,695
Consumer		676		−		−		−		676
Construction		394		−		−		52		446
	$	81,136	$	−	$	254	$	3,573	$	84,963

The following table represents past-due loans as of

September 30, 2017 (

dollars in thousands):

	30-59 Days Past			60- 89 Days Past			Greater than 90 Days Past			Total Past						Total Loan
	Due			Due			Due			Due			Current			Balances
Residential real estate	$	96		$	418		$	1,244		$	1,758		$	59,261		$	61,019
Multi-family and commercial real estate		405			484			589			1,478			10,156			11,634
Commercial		34			−			117			151			2,342			2,493
Home Equity		−			25			−			25			8,670			8,695
Consumer		−			25			−			25			651			676
Construction		−			−			−			−			446			446
Total Loans		535			952			1,950			3,437			81,526			84,963
Percentage of Total Loans		0.63	%		1.12	%		2.30	%		4.05	%		95.95	%		100.00	%

Impaired loans are measured based on the present value of expected future discounted cash flows, the fair value of the loa

n 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

September 30, 2017,

the Bank had

14

loan relationships totaling

$2.1

million in non-accrual loans as compared to

17

relationships totaling

$3.2

million at

March 31, 2017.

The average balance of impaired loans totaled

$4.4

million for the

six

months ended

September 30, 2017

as compared to

$5.1

million for the year ended

March 31, 2017,

and interest income recorded on impaired loans for the

six

months ended

September 30, 2017

totaled

$79

thousand as compared to

$173

thousand for the year ended

March 31, 2017.

The following table represents data on impaired loans at

Sep

tember

30,

2017

and

March 31, 2017 (

dollars in thousands):

	September 30, 2017		March 31, 2017
Impaired loans for which a valuation allowance has been provided	$	−	$	−
Impaired loans for which no valuation allowance has been provided	$	3,573	$	4,883
Total loans determined to be impaired	$	3,573	$	4,883
Allowance for loans losses related to impaired loans	$	−	$	−
Average recorded investment in impaired loans	$	4,425	$	5,225
Cash basis interest income recognized on impaired loans	$	79	$	173

The following table presents impaired loans by portfolio class at

September 30, 2017 (

dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While on Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	1,985	$	1,930	$	−	$	2,240	$	37
Multi-family and commercial real estate		1,253		1,249		−		1,712		25
Commercial		117		117		−		144		5
Home equity		225		225		−		272		11
Consumer		−		−		−				−
Construction		57		52		−		57		1
Total	$	3,637	$	3,573	$	−	$	4,425	$	79

The following table presents impaired loans by portfolio class at

March 31, 2017 (

dollars in thousands):

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

The following table represents nonaccrual loans as of

September 30, 2017

and

March 31, 2017 (

dollars in thousands):

	September 30, 201 7			March 31, 201 7
Non-accrual loans:
Residential real estate	$	1,256		$	1,180
Multi-family and commercial real estate		250			506
Commercial		117			172
Consumer		−			−
Home equity		−			53
Construction		−			−
Total non-accrual loans		1,623			1,911
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	328		$	740
Multi-family and commercial real estate		186			425
Commercial		−			−
Consumer		−			−
Home Equity		−			131
Construction		−			−
Total troubled debt restructurings in non-accrual status		514			1,296
Performing under modified terms:
Residential real estate		686			693
Multi-family and commercial real estate		473			240
Commercial		−			−
Consumer		−			−
Home Equity		225			95
Construction		52			52
Total troubled debt restructurings performing under modified terms:		1,436			1,080
Total troubled debt restructurings		1,950			2,376
Total non-performing loans		3,573			4,287
Real estate owned		1,461			1,271
Total non-performing assets		5,034			5,558
Non-performing loans as a percentage of loans		4.21	%		5.02	%
Non-performing assets as a percentage of loans and real estate owned		5.82	%		6.41	%
Non-performing assets as percentage of total assets		3.96	%		4.38	%

During the

six

months ended

September 30, 2017,

the Bank experienced a

$1.1

million net decrease in non-accrual loans.

This change reflects

one

commercial real estate loan for

$239

thousand,

one

commercial loan for

$54

thousand and

two

home equity loans for

$184

thousand that returned to accruing status,

one

commercial real estate note for

$253

thousand that was sold, a partial charge-off of

$50

thousand to

one

commercial real estate loan,

one

residential loan in the amount of

$410

thousandthat was transferred to real estate owned and repayments on loans of

$7

thousand

. These decreases were offset by the downgrading of

one

loan relationship to non-accrual status totaling

$112

thousand during the

six

months ended

September 30, 2017.

The downgraded loan consisted of

one

residential mortgage totaling

$112

thousand.

The following table presents troubled debt restructurings that occurred during the perio

ds ended

September 30, 2017

and

March 31, 2017

and loans modified as troubled debt restructurings within the previous

6

and

12

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

September 30, 2017

March 31, 2017

Outstanding Recorded Investment

Outstanding Recorded Investment

Number of Contracts

Pre- Modification

Post- Modification

Number of Contracts

Pre- Modification

Post- Modification

Troubled debt restructurings:

Residential real estate

−

−

−

1

$

77

$

96

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

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

September 30, 2017

and

March 31, 2017:

	September 30,			March 31,
	2017			2017
Balance, beginning of period	$	1,271		$	1,763
Additions from loan foreclosures		410			500
Additions from capitalized costs		−			26
Dispositions of REO		(193	)		(922	)
Gain (loss) on sale of REO		24			(34	)
Valuation adjustments in the period		(51	)		(62	)
Balance, end of period	$	1,461		$	1,271

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

September 30, 2017

and

March 31, 2017:

	September 30,			March 31,
	2017			2017
Balance, beginning of period	$	104		$	227
Valuation adjustments added in the period		80			62
Valuation adjustments on disposed properties during the period		(29	)		(185	)
Balance, end of period	$	155		$	104

The following

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

	September 30, 2017			March 31, 2017
Balance at beginning of period	$	1,001		$	1,099
Provision:
Commercial		−			(45	)
Commercial real estate		21			(61	)
Residential real estate		(70	)		98
Home Equity		(35	)		29
Consumer		(1	)		(45	)
Construction		−			2
Total Provision		(85	)		(22	)
Charge-Offs:
Commercial		−			−
Commercial Real Estate		50			71
Residential real estate		−			102
Home Equity		−			42
Consumer		−			−
Recoveries		(144	)		(139	)
Total Net Charge-Offs		(94	)		76
Balance at end of period	$	1,010		$	1,001
Period-end loans outstanding	$	84,963		$	85,477
Average loans outstanding	$	84,793		$	84,426
Allowance as a percentage of period-end loans		1.19	%		1.17	%
Net charge-offs as a percentage of average loans		(0.11	%)		0.09	%

Additional

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

September 30, 2017

are as follows (dollars in thousands):

Allowance

for Loan Losses

	Commercial		Commercial Real Estate			Residential Real Estate			Home Equity			Consumer			Construction		Total
Balance, beginning of year		64		274			575			74			12			2		1,001
Loan charge-offs		−		(50	)		−			−			−			−		(50	)
Recoveries		1		31			71			35			6			−		144
Provision for loan losses		−		21			(70	)		(35	)		(1	)		−		(85	)
Balance, end of period		65		276			576			74			17			2		1,010
Ending balance for loans individually evaluated for impairment		186		808			2,036			459			−			52		3,541
Ending balance for loans collectively evaluated for impairment		2,307		10,826			58,983			8,236			676			394		81,422
Loans receivable:
Ending balance		2,493		11,634			61,019			8,695			676			446		84,963
Ending balance: loans individually evaluated for impairment		186		808			2,036			459			−			52		3,541
Ending balance: loans collectively evaluated for impairment		2,307		10,826			58,983			8,236			676			394		81,422

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

six

months ending

September 30, 2017,

the Bank experienced

one

partial charge-off relating to

one

relationship totaling

$50

thousand

as compared to

one

charge-off relating to

one

loan relationship totaling

$40

thousand and partial charge-offs relating to

three

loan relationships totaling

$175

thousand for the year ended

March 31, 2017.

At

September 30, 2017,

the Bank maintained an allowance for loan loss ratio of

1.19%

to loans

outstanding. Non-performing assets have decreased by

$524

thousand over their stated levels at

March 31, 2017,

representing a non-performing asset to total asset ratio of

3.96%

at

September 30, 2017

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

4.38%

at

March 31, 2017.

The Bank

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

thirty

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

may

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

XML

Note 10 - Investment Securities

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

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

( 10 ) Investment Securities  

Investment securities have been classified according to management

’s intent. The amortized cost of securities and their approximate fair values as of

September 30, 2017

and

March 31, 2017

are as follows:

	Held-to-Maturity September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	19,918	$	−	$	(574	)	$	19,344
Municipal Bond		1,446		−		(1	)		1,445
Mortgage-Ba cked Securities		593		53		(16	)		630
Total	$	21,957	$	53	$	(591	)	$	21,419

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

	Available for Sale
	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificate of deposit		2,000		12		−		2,012
Mutual Fund Shares		74		−		−		74
	$	2,074	$	12	$	−	$	2,086

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

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

September 30, 2017

and

March 31, 2017:

	September 30, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,446	$	1,445	$	−	$	−
After one year through five years		500		497		2,000		2,012
After five years through ten years		8,046		7,854		−		−
After ten years		11,965		11,623		−		−
Equity securities		−		−		74		74
	$	21,957	$	21,419	$	2,074	$	2,086

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

The

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

may

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

Information pertaining to securities with gross unrealized losses at

September 30, 2017

and

March 31, 2017,

aggregated by investment category and length of time that individual securities

have been in a continuous loss position, follows:

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
S eptember 30, 2017	Value		Losses			Value		Losses			Value		Losses
U.S. government Agency Bonds		7,585		(101	)		11,775		(473	)		19,360		(574	)
Municipal Bonds		1,445		(1	)		−		−			1,445		(1	)
Mortgage Backed Securities		−		−			381		(16	)		381		(16	)
Total		9,030		(102	)		12,156		(489	)		21,186		(591	)

	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
M arch 31, 2017	Value		Losses			Value		Losses			Value		Losses
U.S Government Agency Bonds	$	19,553	$	(864	)	$	−	$	−		$	19,553	$	(864	)
Certificates of deposit		249		(1	)		−		−			249		(1	)
Municipal Bonds		1,536		(3	)		−		−			1,536		(3	)
Mutual fund shares		−		−			87		(2	)		87		(2	)
Mortgage –Backed Securities:		−		−			216		(15	)		216		(15	)
Total		21,338		(868	)		303		(17	)		21,641		(885	)

Management evaluates securities for ot

her-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

September 30, 2017,

the

42

debt securities with unrealized losses have depreciated

2.7%

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.

XML

Note 11 - Subsequent Event

6 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

(

11

)

     Subsequent Event

On

October 18, 2017,

the Company and Fi

rst Bank entered into an Agreement and Plan of Reorganization which provides for the acquisition of the Company by First Bank (the “Merger”) pursuant to the merger of the Company with and into a to-be-formed subsidiary of First Bank (“Merger Sub”) with Merger Sub as the surviving corporation. Simultaneously upon the completion of the Merger, the Bank will merge with and into First Bank. At the effective time of the Merger, the outstanding shares of capital stock of the Company will be converted into the right to receive

1.11

shares of First Bank common stock. The transaction is expected to close in the

first

quarter of

2018,

subject to the satisfaction of customary closing conditions, including the receipt of all required regulatory approvals and the approval of the Company’s shareholders.

XML

Note 5 - Earnings Per Share (Tables)

6 Months Ended

Sep. 30, 2017

Notes Tables

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

	Six Months Ended September 30,
	2017		2016
Numerator	$	153,468	$	77,886
Denominators:
Basic shares outstanding		910,239		906,720
Effect of dilutive securities		7,602		4,136
Dilutive shares outstanding		917,841		910,856
Earnings per share:
Basic	$	0.17	$	0.09
Dilutive	$	0.17	$	0.09

XML

Note 8 - Fair Value of Financial Instruments (Tables)

6 Months Ended

Sep. 30, 2017

Notes Tables

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

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
September 30, 2017
Available-for-sale securities	$	−	$	2,086	$	−
March 31, 2017
Available-for-sale securities	$	−	$	2,595	$	−

Fair Value Measurements, Nonrecurring [Table Text Block]

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
September 30, 2017
Impaired loans	$	−	$	−	$	3,573
Real estate owned		−		−		1,461
Total	$	−	$	−	$	5,034
March 31, 2017
Impaired loans	$	−	$	−	$	4,883
Real estate owned		−		−		1,271
Total	$	−	$	−	$	6,154

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

	September 30, 2017
	Carrying Amount		Level 1		Level 2		Level 3
(Dollars in Thousands)
Financial Assets:
Cash and cash equivalents	$	8,974	$	8,974	$	−	$	−
Investment securities -available for sale		2,074		−		2,086		−
Investment securities-held to maturity		21,957		−		21,419		−
Loans – net		83,899		−		−		83,270
FHLB stock		102		102		−		−
Accrued interest receivable		389		389		−		−
Bank –owned life insurance		179		179		−		−
Real Estate Owned		1,461		−		−		1,461
Total financial assets	$	119,035	$	9,644	$	23,505	$	84,731
Financial Liabilities:
Deposits -non-interest bearing	$	10,255	$	10,255	$	−	$	−
Deposits-interest bearing		101,711		−		100,367		−
Advance payments by borrowers for taxes and insurance		504		504		−		−
Accrued interest payable		6		6		−		−
Total financial liabilities	$	112,476	$	10,765	$	100,367	$	−

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

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

	September 30, 2017				March 31, 2017
	Contract Value		Estimated Fair Value		Contract Value		Estimated Fair Value
Off-balance sheet instruments
Commitments to extend credit	$	5,580	$	−	$	6,620	$	−

XML

Note 9 - Loans (Tables)

6 Months Ended

Sep. 30, 2017

Notes Tables

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

	Septemb er 30,			March 31,
	2017			2017
Residential (one-to four-family) real estate	$	61,019		$	61,419
Multi-family and commercial real estate		11,634			12,071
Commercial		2,493			1,858
Home equity		8,695			8,812
Consumer		676			637
Construction		446			680
Total loans		84,963			85,477
Net deferred loan origination fees		(54	)		(62	)
Allowance for loan losses		(1,010	)		(1,001	)
Loans, net	$	83,899		$	84,414

Financing Receivable Credit Quality Indicators [Table Text Block]

	Pass		Special Mention Loans		Classified Loans		Non- Performing Loans		Total
Residential real estate	$	58,749	$	−	$	−	$	2,270	$	61,019
Multi-family and commercial real estate		10,637		−		88		909		11,634
Commercial		2,210		−		166		117		2,493
Home equity		8,470		−		−		225		8,695
Consumer		676		−		−		−		676
Construction		394		−		−		52		446
	$	81,136	$	−	$	254	$	3,573	$	84,963

Past Due Financing Receivables [Table Text Block]

	30-59 Days Past			60- 89 Days Past			Greater than 90 Days Past			Total Past						Total Loan
	Due			Due			Due			Due			Current			Balances
Residential real estate	$	96		$	418		$	1,244		$	1,758		$	59,261		$	61,019
Multi-family and commercial real estate		405			484			589			1,478			10,156			11,634
Commercial		34			−			117			151			2,342			2,493
Home Equity		−			25			−			25			8,670			8,695
Consumer		−			25			−			25			651			676
Construction		−			−			−			−			446			446
Total Loans		535			952			1,950			3,437			81,526			84,963
Percentage of Total Loans		0.63	%		1.12	%		2.30	%		4.05	%		95.95	%		100.00	%

Impaired Financing Receivables [Table Text Block]

	September 30, 2017		March 31, 2017
Impaired loans for which a valuation allowance has been provided	$	−	$	−
Impaired loans for which no valuation allowance has been provided	$	3,573	$	4,883
Total loans determined to be impaired	$	3,573	$	4,883
Allowance for loans losses related to impaired loans	$	−	$	−
Average recorded investment in impaired loans	$	4,425	$	5,225
Cash basis interest income recognized on impaired loans	$	79	$	173

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

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance		Average Recorded Investment		Interest Income Recognized While on Impaired Statues
Impaired loans with no valuation allowance:
Residential real estate	$	1,985	$	1,930	$	−	$	2,240	$	37
Multi-family and commercial real estate		1,253		1,249		−		1,712		25
Commercial		117		117		−		144		5
Home equity		225		225		−		272		11
Consumer		−		−		−				−
Construction		57		52		−		57		1
Total	$	3,637	$	3,573	$	−	$	4,425	$	79

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

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

	September 30, 201 7			March 31, 201 7
Non-accrual loans:
Residential real estate	$	1,256		$	1,180
Multi-family and commercial real estate		250			506
Commercial		117			172
Consumer		−			−
Home equity		−			53
Construction		−			−
Total non-accrual loans		1,623			1,911
Accruing loans past due 90 days or more:
Residential real estate	$	−		$	−
Multi-family and commercial real estate		−			−
Commercial		−			−
Consumer		−			−
Home Equity		−			−
Construction		−			−
Total accruing loans past due 90 days or more		−			−
Troubled debt restructurings:
In non-accrual status:
Residential real estate	$	328		$	740
Multi-family and commercial real estate		186			425
Commercial		−			−
Consumer		−			−
Home Equity		−			131
Construction		−			−
Total troubled debt restructurings in non-accrual status		514			1,296
Performing under modified terms:
Residential real estate		686			693
Multi-family and commercial real estate		473			240
Commercial		−			−
Consumer		−			−
Home Equity		225			95
Construction		52			52
Total troubled debt restructurings performing under modified terms:		1,436			1,080
Total troubled debt restructurings		1,950			2,376
Total non-performing loans		3,573			4,287
Real estate owned		1,461			1,271
Total non-performing assets		5,034			5,558
Non-performing loans as a percentage of loans		4.21	%		5.02	%
Non-performing assets as a percentage of loans and real estate owned		5.82	%		6.41	%
Non-performing assets as percentage of total assets		3.96	%		4.38	%

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

September 30, 2017

March 31, 2017

Outstanding Recorded Investment

Outstanding Recorded Investment

Number of Contracts

Pre- Modification

Post- Modification

Number of Contracts

Pre- Modification

Post- Modification

Troubled debt restructurings:

Residential real estate

−

−

−

1

$

77

$

96

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

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

Real Estate Owned [Table Text Block]

	September 30,			March 31,
	2017			2017
Balance, beginning of period	$	1,271		$	1,763
Additions from loan foreclosures		410			500
Additions from capitalized costs		−			26
Dispositions of REO		(193	)		(922	)
Gain (loss) on sale of REO		24			(34	)
Valuation adjustments in the period		(51	)		(62	)
Balance, end of period	$	1,461		$	1,271

	September 30,			March 31,
	2017			2017
Balance, beginning of period	$	104		$	227
Valuation adjustments added in the period		80			62
Valuation adjustments on disposed properties during the period		(29	)		(185	)
Balance, end of period	$	155		$	104

Schedule of Charge-offs [Table Text Block]

	September 30, 2017			March 31, 2017
Balance at beginning of period	$	1,001		$	1,099
Provision:
Commercial		−			(45	)
Commercial real estate		21			(61	)
Residential real estate		(70	)		98
Home Equity		(35	)		29
Consumer		(1	)		(45	)
Construction		−			2
Total Provision		(85	)		(22	)
Charge-Offs:
Commercial		−			−
Commercial Real Estate		50			71
Residential real estate		−			102
Home Equity		−			42
Consumer		−			−
Recoveries		(144	)		(139	)
Total Net Charge-Offs		(94	)		76
Balance at end of period	$	1,010		$	1,001
Period-end loans outstanding	$	84,963		$	85,477
Average loans outstanding	$	84,793		$	84,426
Allowance as a percentage of period-end loans		1.19	%		1.17	%
Net charge-offs as a percentage of average loans		(0.11	%)		0.09	%

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

	Commercial		Commercial Real Estate			Residential Real Estate			Home Equity			Consumer			Construction		Total
Balance, beginning of year		64		274			575			74			12			2		1,001
Loan charge-offs		−		(50	)		−			−			−			−		(50	)
Recoveries		1		31			71			35			6			−		144
Provision for loan losses		−		21			(70	)		(35	)		(1	)		−		(85	)
Balance, end of period		65		276			576			74			17			2		1,010
Ending balance for loans individually evaluated for impairment		186		808			2,036			459			−			52		3,541
Ending balance for loans collectively evaluated for impairment		2,307		10,826			58,983			8,236			676			394		81,422
Loans receivable:
Ending balance		2,493		11,634			61,019			8,695			676			446		84,963
Ending balance: loans individually evaluated for impairment		186		808			2,036			459			−			52		3,541
Ending balance: loans collectively evaluated for impairment		2,307		10,826			58,983			8,236			676			394		81,422

XML

Note 10 - Investment Securities (Tables)

6 Months Ended

Sep. 30, 2017

Notes Tables

Held-to-maturity Securities [Table Text Block]

	Held-to-Maturity September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
U.S. Government Agency Bonds	$	19,918	$	−	$	(574	)	$	19,344
Municipal Bond		1,446		−		(1	)		1,445
Mortgage-Ba cked Securities		593		53		(16	)		630
Total	$	21,957	$	53	$	(591	)	$	21,419

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

Available-for-sale Securities [Table Text Block]

	Available for Sale
	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificate of deposit		2,000		12		−		2,012
Mutual Fund Shares		74		−		−		74
	$	2,074	$	12	$	−	$	2,086

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

Investments Classified by Contractual Maturity Date [Table Text Block]

	September 30, 2017
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,446	$	1,445	$	−	$	−
After one year through five years		500		497		2,000		2,012
After five years through ten years		8,046		7,854		−		−
After ten years		11,965		11,623		−		−
Equity securities		−		−		74		74
	$	21,957	$	21,419	$	2,074	$	2,086

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

Schedule of Unrealized Loss on Investments [Table Text Block]

	Continuous Unrealized					Continuous Unrealized
	Losses Existing For					Losses Existing For
	Less Than 12 Months					12 Months or Greater					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
S eptember 30, 2017	Value		Losses			Value		Losses			Value		Losses
U.S. government Agency Bonds		7,585		(101	)		11,775		(473	)		19,360		(574	)
Municipal Bonds		1,445		(1	)		−		−			1,445		(1	)
Mortgage Backed Securities		−		−			381		(16	)		381		(16	)
Total		9,030		(102	)		12,156		(489	)		21,186		(591	)

	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
M arch 31, 2017	Value		Losses			Value		Losses			Value		Losses
U.S Government Agency Bonds	$	19,553	$	(864	)	$	−	$	−		$	19,553	$	(864	)
Certificates of deposit		249		(1	)		−		−			249		(1	)
Municipal Bonds		1,536		(3	)		−		−			1,536		(3	)
Mutual fund shares		−		−			87		(2	)		87		(2	)
Mortgage –Backed Securities:		−		−			216		(15	)		216		(15	)
Total		21,338		(868	)		303		(17	)		21,641		(885	)

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

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Note 3 - Deferred Income Taxes (Details Textual)	Sep. 30, 2017
GAAP Capital Ratio, Basis Points in Excess of Tier 1 Regulatory Capital Ratio	125.00%

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Note 4 - Income Taxes (Details Textual) $ in Thousands	6 Months Ended
	Sep. 30, 2017 USD ($)
Liability for Uncertainty in Income Taxes, Current	$ 0
Earliest Tax Year [Member] | Federal and State Jurisdiction [Member]
Open Tax Year	2014
Latest Tax Year [Member] | Federal and State Jurisdiction [Member]
Open Tax Year	2016

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Note 5 - Earnings Per Share - Earnings Per Share Reconciliation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator	$ 97,548	$ 18,069	$ 153,468	$ 77,886
Denominators:
Basic shares outstanding (in shares)			910,239	906,720
Effect of dilutive securities (in shares)			7,602	4,136
Dilutive shares outstanding (in shares)			917,841	910,856
Earnings per share:
Basic (in dollars per share)			$ 0.17	$ 0.09
Dilutive (in dollars per share)			$ 0.17	$ 0.09

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Available-for-sale securities	$ 2,086,322	$ 2,594,888
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	2,086,000	2,595,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities

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Note 8 - Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value On a Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Fair Value, Inputs, Level 1 [Member]
Total
Fair Value, Inputs, Level 2 [Member]
Total
Fair Value, Inputs, Level 3 [Member]
Total	5,034	6,154
Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member]
Impaired loans
Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
Impaired loans
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Impaired loans	3,573	4,883
Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member]
Real estate owned
Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
Real estate owned
Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member]
Real estate owned	$ 1,461	$ 1,271

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Note 8 - Fair Value of Financial Instruments - Estimated Fair Value of Assets and Liabilities (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Financial Assets:
Investment securities-available for sale	$ 2,086,322	$ 2,594,888
Investment securities-held to maturity	21,418,582	21,797,695
Accrued interest receivable	389,247	378,243
Bank-owned life insurance	178,514	178,514
Financial Liabilities:
Advance payments by borrowers for taxes and insurance	504,348	500,485
Reported Value Measurement [Member]
Financial Assets:
Cash and cash equivalents	8,974,000	6,999,000
Investment securities-available for sale	2,074,000	2,589,000
Investment securities-held to maturity	21,957,000	22,623,000
Impaired loans	83,899,000	84,414,000
FHLB stock	102,000	124,000
Accrued interest receivable	389,000	378,000
Bank-owned life insurance	179,000	179,000
Real Estate Owned	1,461,000	1,271,000
Total financial assets	119,035,000	118,577,000
Loans receivable,– net	83,899,000	84,414,000
Financial Liabilities:
Deposits-non-interest bearing	10,255,000	11,704,000
Deposits-interest bearing	101,711,000	100,377,000
Advance payments by borrowers for taxes and insurance	504,000	500,000
Accrued interest payable	6,000	6,000
Total financial liabilities	112,476,000	112,587,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Financial Assets:
Cash and cash equivalents	8,974,000	6,999,000
Investment securities-available for sale
Investment securities-held to maturity
Impaired loans
FHLB stock	102,000	124,000
Accrued interest receivable	389,000	378,000
Bank-owned life insurance	179,000	179,000
Real Estate Owned
Total financial assets	9,644,000	7,680,000
Loans receivable,– net
Financial Liabilities:
Deposits-non-interest bearing	10,255,000	11,704,000
Deposits-interest bearing
Advance payments by borrowers for taxes and insurance	504,000	500,000
Accrued interest payable	6,000	6,000
Total financial liabilities	10,765,000	12,210,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Assets:
Cash and cash equivalents
Investment securities-available for sale	2,086,000	2,595,000
Investment securities-held to maturity	21,419,000	21,798,000
Impaired loans
FHLB stock
Accrued interest receivable
Bank-owned life insurance
Real Estate Owned
Total financial assets	23,505,000	24,393,000
Loans receivable,– net
Financial Liabilities:
Deposits-non-interest bearing
Deposits-interest bearing	100,367,000	99,183,000
Advance payments by borrowers for taxes and insurance
Accrued interest payable
Total financial liabilities	100,367,000	99,183,000
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Assets:
Cash and cash equivalents
Investment securities-available for sale
Investment securities-held to maturity
Impaired loans	83,270,000	83,833,000
FHLB stock
Real Estate Owned	1,461,000	1,271,000
Total financial assets	84,731,000	85,104,000
Loans receivable,– net	83,270,000	83,833,000
Financial Liabilities:
Deposits-non-interest bearing
Deposits-interest bearing
Advance payments by borrowers for taxes and insurance
Total financial liabilities

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Note 8 - Fair Value of Financial Instruments - Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Commitments to Extend Credit [Member]
Commitments to extend credit	$ 5,580	$ 6,620

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Note 9 - Loans (Details Textual) $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
Maximum Loan to One Borrower Limitation, Percentage of Capital Funds	15.00%
Maximum Loan to One Borrower Limitation	$ 1,900
Additional Loan to One Borrower Limitation if Collateralized, Percentage of Adjusted Capital Funds	10.00%
Adjusted Capital Funds Value	$ 1,300
Financing Receivable, Recorded Investment, Nonaccrual Status	1,623	$ 1,911
Impaired Financing Receivable, Average Recorded Investment	4,425	5,225
Impaired Financing Receivable, Interest Income, Cash Basis Method	79	173
Financing Receivable Nonaccrual, Downgraded from Accruing Status	112
Allowance for Loan and Lease Losses, Write-offs	$ 50
Allowance for Loan Loss to Loans Outstanding Ratio	1.19%
Increase (Decrease) in Non-performing Assets		$ (524)
Non-performing Assets As Percentage of Total Assets	3.96%	4.38%
Partial Charge-offs [Member]
Loans Receivables, Write Offs, Number of Relationships	1	3
Allowance for Loan and Lease Losses, Write-offs	$ 50	$ 175
Total Charge-offs [Member]
Loans Receivables, Write Offs, Number of Relationships		1
Allowance for Loan and Lease Losses, Write-offs		$ 40
Nonperforming Financial Instruments [Member] | Payment Deferral [Member]
Financing Receivable, Modifications, Number of Contracts	6
Advances from Federal Home Loan Banks	$ 861
In Non-accrual Status [Member]
Financing Receivable, Number of Contracts, Nonaccrual Status	14	17
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2,100	$ 3,200
Increase (Decrease) in Finance Receivables	(1,100)
Proceeds from Collection of Loans Receivable	$ 7
Residential Portfolio Segment [Member]
Financing Receivable, Modifications, Number of Contracts		1
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 1,256	$ 1,180
Financing Receivable Nonaccrual Status, Transferred to Real Estate Owned	410
Financing Receivable Nonaccrual, Downgraded from Accruing Status	112
Allowance for Loan and Lease Losses, Write-offs	$ 0	102
Residential Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Non-owner Occupied Property [Member] | Maximum [Member]
Loan Term	30 years
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 250	506
Financing Receivable Non-accrual, Returned to Accruing Status	239
Financing Receivable, Non-accrual Status, Sold During Period	253
Financing Receivable, Nonaccrual Status, Partial Charge-Offs	50,000
Allowance for Loan and Lease Losses, Write-offs	$ 50	71
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
Allowance for Loan and Lease Losses, Write-offs	$ 0
Consumer Portfolio Segment [Member] | Maximum [Member]
Loan Origination, Percentage of Appraised Value or Selling Price	80.00%
Construction Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status
Allowance for Loan and Lease Losses, Write-offs	$ 0
Construction Portfolio Segment [Member] | Maximum [Member]
Loan Term	1 year
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 117	172
Financing Receivable Non-accrual, Returned to Accruing Status	54
Allowance for Loan and Lease Losses, Write-offs
Home Equity Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status		53
Financing Receivable Non-accrual, Returned to Accruing Status	184
Allowance for Loan and Lease Losses, Write-offs		$ 42

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Note 9 - Loans - Loans (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Loans	$ 84,963,000	$ 85,477,000
Net deferred loan origination fees	(54,000)	(62,000)
Allowance for loan losses	(1,010,552)	(1,001,449)	$ (1,099,000)
Loans, net	83,898,782	84,414,361
Residential Portfolio Segment [Member]
Loans	61,019,000	61,419,000
Allowance for loan losses	(576,000)	(575,000)
Commercial Real Estate Portfolio Segment [Member]
Loans	11,634,000	12,071,000
Allowance for loan losses	(276,000)	(274,000)
Commercial Portfolio Segment [Member]
Loans	2,493,000	1,858,000
Allowance for loan losses	(65,000)	(64,000)
Home Equity Portfolio Segment [Member]
Loans	8,695,000	8,812,000
Allowance for loan losses	(74,000)	(74,000)
Consumer Portfolio Segment [Member]
Loans	676,000	637,000
Allowance for loan losses	(17,000)	(12,000)
Construction Portfolio Segment [Member]
Loans	446,000	680,000
Allowance for loan losses	$ (2,000)	$ (2,000)

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Note 9 - Loans - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Loans	$ 84,963	$ 85,477
Nonperforming Financial Instruments [Member]
Loans	3,573
Pass [Member]
Loans	81,136
Special Mention [Member]
Loans
Classified Loans [Member]
Loans	254
Residential Portfolio Segment [Member]
Loans	61,019	61,419
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	2,270
Residential Portfolio Segment [Member] | Pass [Member]
Loans	58,749
Residential Portfolio Segment [Member] | Special Mention [Member]
Loans
Residential Portfolio Segment [Member] | Classified Loans [Member]
Loans
Commercial Real Estate Portfolio Segment [Member]
Loans	11,634	12,071
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	909
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]
Loans	10,637
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Real Estate Portfolio Segment [Member] | Classified Loans [Member]
Loans	88
Commercial Portfolio Segment [Member]
Loans	2,493	1,858
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	117
Commercial Portfolio Segment [Member] | Pass [Member]
Loans	2,210
Commercial Portfolio Segment [Member] | Special Mention [Member]
Loans
Commercial Portfolio Segment [Member] | Classified Loans [Member]
Loans	166
Home Equity Portfolio Segment [Member]
Loans	8,695	8,812
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	225
Home Equity Portfolio Segment [Member] | Pass [Member]
Loans	8,470
Home Equity Portfolio Segment [Member] | Special Mention [Member]
Loans
Home Equity Portfolio Segment [Member] | Classified Loans [Member]
Loans
Consumer Portfolio Segment [Member]
Loans	676	637
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans
Consumer Portfolio Segment [Member] | Pass [Member]
Loans	676
Consumer Portfolio Segment [Member] | Special Mention [Member]
Loans
Consumer Portfolio Segment [Member] | Classified Loans [Member]
Loans
Construction Portfolio Segment [Member]
Loans	446	$ 680
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans	52
Construction Portfolio Segment [Member] | Pass [Member]
Loans	394
Construction Portfolio Segment [Member] | Special Mention [Member]
Loans
Construction Portfolio Segment [Member] | Classified Loans [Member]
Loans

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Note 9 - Loans - Past Due Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Past due loans	$ 3,437
Current loans	81,526
Loans	$ 84,963	$ 85,477
Percentage past due loans	4.05%
Percentage of current loans	95.95%
Percentage of Total Loans	100.00%
Residential Portfolio Segment [Member]
Past due loans	$ 1,758
Current loans	59,261
Loans	61,019	61,419
Commercial Real Estate Portfolio Segment [Member]
Past due loans	1,478
Current loans	10,156
Loans	11,634	12,071
Commercial Portfolio Segment [Member]
Past due loans	151
Current loans	2,342
Loans	2,493	1,858
Home Equity Portfolio Segment [Member]
Past due loans	25
Current loans	8,670
Loans	8,695	8,812
Consumer Portfolio Segment [Member]
Past due loans	25
Current loans	651
Loans	676	637
Construction Portfolio Segment [Member]
Current loans	446
Loans	446	$ 680
Financing Receivables, 30 to 59 Days Past Due [Member]
Past due loans	$ 535
Percentage past due loans	0.63%
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 96
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	405
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	34
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
Financing Receivables, 60 to 89 Days Past Due [Member]
Past due loans	$ 952
Percentage past due loans	1.12%
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 418
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	484
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans	25
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Past due loans	25
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Past due loans	$ 1,950
Percentage past due loans	2.30%
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member]
Past due loans	$ 1,244
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Past due loans	589
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member]
Past due loans	117
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity Portfolio Segment [Member]
Past due loans

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Note 9 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2017	Mar. 31, 2017
Impaired loans for which a valuation allowance has been provided
Impaired loans for which no valuation allowance has been provided	3,573	4,883
Total loans determined to be impaired	3,573	4,883
Allowance for loans losses related to impaired loans
Average recorded investment in impaired loans	4,425	5,225
Cash basis interest income recognized on impaired loans	$ 79	$ 173

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Note 9 - Loans - Impaired Loans by Portfolio (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2017	Mar. 31, 2017
Recorded investment, no valuation allowance	$ 3,637	$ 4,963
Unpaid principal balance, no valuation allowance	3,573	4,883
Average annual recorded investment, no valuation allowance	4,425	5,225
Interest income recognized while on impaired status, no valuation allowance	79	173
Residential Portfolio Segment [Member]
Recorded investment, no valuation allowance	1,985	2,289
Unpaid principal balance, no valuation allowance	1,930	2,239
Average annual recorded investment, no valuation allowance	2,240	2,711
Interest income recognized while on impaired status, no valuation allowance	37	60
Commercial Real Estate Portfolio Segment [Member]
Recorded investment, no valuation allowance	1,253	2,162
Unpaid principal balance, no valuation allowance	1,249	2,141
Average annual recorded investment, no valuation allowance	1,712	2,060
Interest income recognized while on impaired status, no valuation allowance	25	94
Commercial Portfolio Segment [Member]
Recorded investment, no valuation allowance	117	171
Unpaid principal balance, no valuation allowance	117	171
Average annual recorded investment, no valuation allowance	144	153
Interest income recognized while on impaired status, no valuation allowance	5	9
Home Equity Portfolio Segment [Member]
Recorded investment, no valuation allowance	225	283
Unpaid principal balance, no valuation allowance	225	279
Average annual recorded investment, no valuation allowance	272	242
Interest income recognized while on impaired status, no valuation allowance	11	7
Consumer Portfolio Segment [Member]
Recorded investment, no valuation allowance
Unpaid principal balance, no valuation allowance
Average annual recorded investment, no valuation allowance		1
Interest income recognized while on impaired status, no valuation allowance
Construction Portfolio Segment [Member]
Recorded investment, no valuation allowance	57	58
Unpaid principal balance, no valuation allowance	52	53
Average annual recorded investment, no valuation allowance	57	58
Interest income recognized while on impaired status, no valuation allowance	$ 1	$ 3

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Note 9 - Loans - Nonaccrual Loans (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Nonaccrual loans	$ 1,623,000	$ 1,911,000
Accruing loans past 90 days or more
Troubled debt restructurings	1,950,000	2,376,000
Real estate owned	1,461,198	1,271,302	$ 1,763,000
Total non-performing assets	$ 127,050,203	$ 126,987,353
Non-performing loans as a percentage of loans	4.21%	5.02%
Non-performing assets as a percentage of loans and real estate owned	5.82%	6.41%
Non-performing assets as percentage of total assets	3.96%	4.38%
Nonperforming Financial Instruments [Member]
Troubled debt restructurings	$ 514,000	$ 1,296,000
Total non-performing loans	3,573,000	4,287,000
Real estate owned	1,461,000	1,271,000
Total non-performing assets	5,034,000	5,558,000
Performing Financial Instruments [Member]
Troubled debt restructurings	1,436,000	1,080,000
Residential Portfolio Segment [Member]
Nonaccrual loans	1,256,000	1,180,000
Accruing loans past 90 days or more
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings	328,000	740,000
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	686,000	693,000
Commercial Real Estate Portfolio Segment [Member]
Nonaccrual loans	250,000	506,000
Accruing loans past 90 days or more
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings	186,000	425,000
Commercial Real Estate Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	473,000	240,000
Commercial Portfolio Segment [Member]
Nonaccrual loans	117,000	172,000
Accruing loans past 90 days or more
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings
Commercial Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings
Consumer Portfolio Segment [Member]
Nonaccrual loans
Accruing loans past 90 days or more
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings
Home Equity Portfolio Segment [Member]
Nonaccrual loans		53,000
Accruing loans past 90 days or more
Home Equity Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings		131,000
Home Equity Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	225,000	95,000
Construction Portfolio Segment [Member]
Nonaccrual loans
Accruing loans past 90 days or more
Construction Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Troubled debt restructurings
Construction Portfolio Segment [Member] | Performing Financial Instruments [Member]
Troubled debt restructurings	$ 52,000	$ 52,000

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Note 9 - Loans - Troubled Debt Restructurings (Details) - Residential Portfolio Segment [Member] $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
Number of contracts		1
Outstanding recorded investment pre-modification		$ 77
Outstanding recorded investment post-modification		$ 96

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Note 9 - Loans - Troubled Debt Restructurings, Subsequent Default (Details) - Residential Portfolio Segment [Member]	6 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)
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		6 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
Balance, beginning of period			$ 1,271,302	$ 1,763,000	$ 1,763,000
Additions from loan foreclosures			410,000		500,000
Additions from capitalized costs					26,000
Dispositions of REO			(193,000)		(922,000)
Gain (Loss) on sale of real estate owned	$ 23,415	$ 2,692	23,415	(2,840)	(34,000)
Valuation adjustments in the period			(51,000)		(62,000)
Balance, end of period	1,461,198		1,461,198		1,271,302
Balance, beginning of period			104,000	$ 227,000	227,000
Valuation adjustments added in the period			80,000		62,000
Valuation adjustments on disposed properties during the period			(29,000)		(185,000)
Balance, end of period	$ 155,000		$ 155,000		$ 104,000

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Note 9 - Loans - Allowance for Losses on Loans and Charge-offs (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
Balance, beginning of year			$ 1,001,449	$ 1,099,000	$ 1,099,000
Provision	$ (65,000)		(85,000)	$ (48,000)	(22,000)
Loan charge-offs			50,000
Recoveries			(144,000)		(139,000)
Total Net Charge-Offs			(94,000)		76,000
Balance, end of period	1,010,552		1,010,552		1,001,449
Loans	$ 84,963,000		84,963,000		85,477,000
Average loans outstanding			$ 84,793,000		$ 84,426,000
Allowance as a percentage of period-end loans	1.19%		1.19%		1.17%
Net charge-offs as a percentage of average loans	(0.11%)		(0.11%)		0.09%
Commercial Portfolio Segment [Member]
Balance, beginning of year			$ 64,000
Provision					$ (45,000)
Loan charge-offs
Recoveries			(1,000)
Balance, end of period	$ 65,000		65,000		64,000
Loans	2,493,000		2,493,000		1,858,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year			274,000
Provision			21,000		(61,000)
Loan charge-offs			50,000		71,000
Recoveries			(31,000)
Balance, end of period	276,000		276,000		274,000
Loans	11,634,000		11,634,000		12,071,000
Residential Portfolio Segment [Member]
Balance, beginning of year			575,000
Provision			(70,000)		98,000
Loan charge-offs			0		102,000
Recoveries			(71,000)
Balance, end of period	576,000		576,000		575,000
Loans	61,019,000		61,019,000		61,419,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year			74,000
Provision			(35,000)		29,000
Loan charge-offs					42,000
Recoveries			(35,000)
Balance, end of period	74,000		74,000		74,000
Loans	8,695,000		8,695,000		8,812,000
Consumer Portfolio Segment [Member]
Balance, beginning of year			12,000
Provision			(1,000)		(45,000)
Loan charge-offs			0
Recoveries			(6,000)
Balance, end of period	17,000		17,000		12,000
Loans	676,000		676,000		637,000
Construction Portfolio Segment [Member]
Balance, beginning of year			2,000
Provision					2,000
Loan charge-offs			0
Recoveries			0
Balance, end of period	2,000		2,000		2,000
Loans	$ 446,000		$ 446,000		$ 680,000

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Note 9 - Loans - Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
Balance, beginning of year			$ 1,001,449	$ 1,099,000	$ 1,099,000
Loan charge-offs			(50,000)
Recoveries			144,000		139,000
Provision for loan losses	$ (65,000)		(85,000)	$ (48,000)	(22,000)
Balance, end of period	1,010,552		1,010,552		1,001,449
Ending balance for loans individually evaluated for impairment	3,541,000		3,541,000
Ending balance for loans collectively evaluated for impairment	81,422,000		81,422,000
Ending balance	84,963,000		84,963,000		85,477,000
Ending balance: loans individually evaluated for impairment	3,541,000		3,541,000
Ending balance: loans collectively evaluated for impairment	81,422,000		81,422,000
Commercial Portfolio Segment [Member]
Balance, beginning of year			64,000
Loan charge-offs
Recoveries			1,000
Provision for loan losses					(45,000)
Balance, end of period	65,000		65,000		64,000
Ending balance for loans individually evaluated for impairment	186,000		186,000
Ending balance for loans collectively evaluated for impairment	2,307,000		2,307,000
Ending balance	2,493,000		2,493,000		1,858,000
Ending balance: loans individually evaluated for impairment	186,000		186,000
Ending balance: loans collectively evaluated for impairment	2,307,000		2,307,000
Commercial Real Estate Portfolio Segment [Member]
Balance, beginning of year			274,000
Loan charge-offs			(50,000)		(71,000)
Recoveries			31,000
Provision for loan losses			21,000		(61,000)
Balance, end of period	276,000		276,000		274,000
Ending balance for loans individually evaluated for impairment	808,000		808,000
Ending balance for loans collectively evaluated for impairment	10,826,000		10,826,000
Ending balance	11,634,000		11,634,000		12,071,000
Ending balance: loans individually evaluated for impairment	808,000		808,000
Ending balance: loans collectively evaluated for impairment	10,826,000		10,826,000
Residential Portfolio Segment [Member]
Balance, beginning of year			575,000
Loan charge-offs			0		(102,000)
Recoveries			71,000
Provision for loan losses			(70,000)		98,000
Balance, end of period	576,000		576,000		575,000
Ending balance for loans individually evaluated for impairment	2,036,000		2,036,000
Ending balance for loans collectively evaluated for impairment	58,983,000		58,983,000
Ending balance	61,019,000		61,019,000		61,419,000
Ending balance: loans individually evaluated for impairment	2,036,000		2,036,000
Ending balance: loans collectively evaluated for impairment	58,983,000		58,983,000
Home Equity Portfolio Segment [Member]
Balance, beginning of year			74,000
Loan charge-offs					(42,000)
Recoveries			35,000
Provision for loan losses			(35,000)		29,000
Balance, end of period	74,000		74,000		74,000
Ending balance for loans individually evaluated for impairment	459,000		459,000
Ending balance for loans collectively evaluated for impairment	8,236,000		8,236,000
Ending balance	8,695,000		8,695,000		8,812,000
Ending balance: loans individually evaluated for impairment	459,000		459,000
Ending balance: loans collectively evaluated for impairment	8,236,000		8,236,000
Consumer Portfolio Segment [Member]
Balance, beginning of year			12,000
Loan charge-offs			0
Recoveries			6,000
Provision for loan losses			(1,000)		(45,000)
Balance, end of period	17,000		17,000		12,000
Ending balance for loans individually evaluated for impairment
Ending balance for loans collectively evaluated for impairment	676,000		676,000
Ending balance	676,000		676,000		637,000
Ending balance: loans individually evaluated for impairment
Ending balance: loans collectively evaluated for impairment	676,000		676,000
Construction Portfolio Segment [Member]
Balance, beginning of year			2,000
Loan charge-offs			0
Recoveries			0
Provision for loan losses					2,000
Balance, end of period	2,000		2,000		2,000
Ending balance for loans individually evaluated for impairment	52,000		52,000
Ending balance for loans collectively evaluated for impairment	394,000		394,000
Ending balance	446,000		446,000		$ 680,000
Ending balance: loans individually evaluated for impairment	52,000		52,000
Ending balance: loans collectively evaluated for impairment	$ 394,000		$ 394,000

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Note 10 - Investment Securities (Details Textual) - Debt Securities [Member]	Sep. 30, 2017
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	42
Securities in Unrealized Loss Positions, Depreciated Percentage from Amortized Cost	2.70%

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Note 10 - Investment Securities - Held-to-maturity Securities (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Held-to-maturity securities, amortized cost	$ 21,956,622	$ 22,622,835
Held-to-maturity securities, gross unrealized gains	53,000	58,000
Held-to-maturity securities, gross unrealized losses	(591,000)	(883,000)
Held-to-maturity securities, fair value	21,418,582	21,797,695
US Government Agencies Debt Securities [Member]
Held-to-maturity securities, amortized cost	19,918,000	20,418,000
Held-to-maturity securities, gross unrealized gains
Held-to-maturity securities, gross unrealized losses	(574,000)	(865,000)
Held-to-maturity securities, fair value	19,344,000	19,553,000
Municipal Bonds [Member]
Held-to-maturity securities, amortized cost	1,446,000	1,536,000
Held-to-maturity securities, gross unrealized gains
Held-to-maturity securities, gross unrealized losses	(1,000)	(3,000)
Held-to-maturity securities, fair value	1,445,000	1,533,000
Collateralized Mortgage Backed Securities [Member]
Held-to-maturity securities, amortized cost	593,000	669,000
Held-to-maturity securities, gross unrealized gains	53,000	58,000
Held-to-maturity securities, gross unrealized losses	(16,000)	(15,000)
Held-to-maturity securities, fair value	$ 630,000	$ 712,000

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Note 10 - Investment Securities - Available-for-sale Securities (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Available-for-sale securities - amortized cost	$ 2,074,499	$ 2,588,817
Available-for-sale securities - gross unrealized gains	12,000	8,000
Available-for-sale securities - gross unrealized losses		(2,000)
Available-for-sale securities - fair value	2,086,322	2,594,888
Certificates of Deposit [Member]
Available-for-sale securities - amortized cost	2,000,000	2,000,000
Available-for-sale securities - gross unrealized gains	12,000	8,000
Available-for-sale securities - gross unrealized losses
Available-for-sale securities - fair value	2,012,000	2,008,000
US Government Agencies Debt Securities [Member]
Available-for-sale securities - amortized cost		500,000
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses
Available-for-sale securities - fair value		500,000
Mutual Fund Shares [Member]
Available-for-sale securities - amortized cost	74,000	89,000
Available-for-sale securities - gross unrealized gains
Available-for-sale securities - gross unrealized losses		(2,000)
Available-for-sale securities - fair value	$ 74,000	$ 87,000

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Note 10 - Investment Securities - Maturities of Securities (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Held to maturity, one year or less, amortized cost	$ 1,446,000	$ 1,536,000
Held to maturity, one year or less, fair value	1,445,000	1,534,000
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	500,000
Held to maturity, after one year through five years, fair value	497,000	497,000
Available for sale, after one year through five years, amortized cost	2,000,000
Available for sale, after one year through five years, fair value	2,012,000
Held to maturity, after five years through ten years, amortized cost	8,046,000	8,573,000
Held to maturity, after five years through ten years, fair value	7,854,000	8,292,000
Available for sale, after five years through ten years, amortized cost		2,000,000
Available for sale, after five years through ten years, fair value		2,008,000
Held to maturity, after ten years, amortized cost	11,965,000	12,014,000
Held to maturity, after ten years, fair value	11,623,000	11,475,000
Available for sale, after ten years, amortized cost		500,000
Available for sale, after ten years, fair value		500,000
Held to maturity, no single maturity, amortized cost
Held to maturity, no single maturity, fair value
Available for sale, no single maturity, amortized cost	74,000	89,000
Available for sale, no single maturity, fair value	74,000	87,000
Held to maturity, amortized cost	21,956,622	22,622,835
Held to maturity, fair value	21,418,582	21,797,695
Available for sale, amortized cost	2,074,000	2,589,000
Available for sale, fair value	$ 2,086,000	$ 2,595,000

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Note 10 - Investment Securities - Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Mar. 31, 2017
Securities with unrealized losses, less than 12 months, fair value	$ 9,030	$ 21,338
Securities with unrealized losses, less than 12 months, gross unrealized losses	(102)	(868)
Securities with unrealized losses, 12 months or greater, fair value	12,156	303
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(489)	(17)
Securities with unrealized losses, fair value	21,186	21,641
Securities with unrealized losses, gross unrealized losses	(591)	(885)
US Government Agencies Debt Securities [Member]
Securities with unrealized losses, less than 12 months, fair value	7,585	19,553
Securities with unrealized losses, less than 12 months, gross unrealized losses	(101)	(864)
Securities with unrealized losses, 12 months or greater, fair value	11,775
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(473)
Securities with unrealized losses, fair value	19,360	19,553
Securities with unrealized losses, gross unrealized losses	(574)	(864)
Municipal Bonds [Member]
Securities with unrealized losses, less than 12 months, fair value	1,445	1,536
Securities with unrealized losses, less than 12 months, gross unrealized losses	(1)	(3)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Securities with unrealized losses, fair value	1,445	1,536
Securities with unrealized losses, gross unrealized losses	(1)	(3)
Certificates of Deposit [Member]
Securities with unrealized losses, less than 12 months, fair value		249
Securities with unrealized losses, less than 12 months, gross unrealized losses		(1)
Securities with unrealized losses, 12 months or greater, fair value
Securities with unrealized losses, 12 months or greater, gross unrealized losses
Securities with unrealized losses, fair value		249
Securities with unrealized losses, gross unrealized losses		(1)
Collateralized Mortgage Backed Securities [Member]
Securities with unrealized losses, less than 12 months, fair value
Securities with unrealized losses, less than 12 months, gross unrealized losses
Securities with unrealized losses, 12 months or greater, fair value	381	216
Securities with unrealized losses, 12 months or greater, gross unrealized losses	(16)	(15)
Securities with unrealized losses, fair value	381	216
Securities with unrealized losses, gross unrealized losses	$ (16)	(15)
Mutual Fund Shares [Member]
Securities with unrealized losses, less than 12 months, fair value
Securities with unrealized losses, less than 12 months, gross unrealized losses
Securities with unrealized losses, 12 months or greater, fair value		87
Securities with unrealized losses, 12 months or greater, gross unrealized losses		(2)
Securities with unrealized losses, fair value		87
Securities with unrealized losses, gross unrealized losses		$ (2)

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Note 11 - Subsequent Event (Details Textual)	Oct. 18, 2017 shares
Subsequent Event [Member] | First Bank [Member] | Delanco Bancorp [Member]
Business Acquisition, Number of Acquirer Shares Convertible for Each Acquiree Share	1.11