Income Taxes (Tables)

12 Months Ended

Mar. 31, 2025

Schedule of Effective Income Tax Rate Reconciliation

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


	2025				2024
$ in thousands	Amount		Percent		Amount		Percent
Statutory Federal income tax expense (benefit)	$	(2,886)	21.0	%	$	(625)	21.0	%






Federal deferred tax adjustments	—		—		4		(0.2)
Change in valuation allowance	2,919		(21.2)		713		(23.9)
Bank owned life insurance	(37)		0.3		(96)		3.2
Other	4		(0.1)		4		(0.1)
Total income tax expense (benefit)	$	—	—	%	$	—	—	%

Deferred Tax Assets and Liabilities

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


$ in thousands	2025		2024
Deferred Tax Assets:
Allowance for credit losses	$	2,145	$	1,987

Compensation and benefits	39		39
Nonaccrual loan interest	425		188

Net operating loss carryforward	24,352		20,168
New markets tax credit	3,434		3,434





Unrealized loss on available-for-sale securities	2,510		2,668
Lease liability	3,011		3,629
Other	93		58
Total Deferred Tax Assets	36,009		32,171
Deferred Tax Liabilities:

Depreciation	355		501

ROU asset	2,799		3,366
Other	2		—
Total Deferred Tax Liabilities	3,156		3,867
Deferred Tax Assets, net	32,853		28,304
Valuation Allowance	(32,853)		(28,304)
Deferred Tax Assets, net of valuation allowance	$	—	$	—