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Income Taxes (Notes) | 12 Months Ended
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Mar. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of income tax (benefit) expense for the years ended March 31 are as follows:
$ in thousands |  | 2019 |  | 2018
Income tax expense |  |  |  |
Federal: |  |  |  |
Current expense |  | $ | — |  |  | $ | 174 |
Deferred benefit |  | — |  |  | (340 | )
Total |  | — |  |  | (166 | )
State: Current expense |  | 133 |  |  | 133 |
Total income tax expense (benefit) |  | $ | 133 |  |  | $ | (33 | )
The following is a reconciliation of the expected Federal income tax rate to the consolidated effective tax rate for the years ended March 31:
| 2019 |  | 2018
$ in thousands | Amount |  | Percent |  | Amount |  | Percent
Statutory Federal income tax expense (benefit) | $ | (1,218 | ) |  | (21.0 | )% |  | $ | 1,638 |  |  | 30.8 | %
State and local income tax, net of Federal tax benefit | 105 |  |  | 1.8 |  |  | 92 |  |  | 1.7 |
Impact of income tax rate changes | — |  |  | — |  |  | 3,283 |  |  | 61.7 |
Credit and NOL adjustments | — |  |  | — |  |  | (2,148 | ) |  | (40.4 | )
Change in valuation allowance | 1,332 |  |  | 23.0 |  |  | (3,061 | ) |  | (57.5 | )
Other | (86 | ) |  | (1.6 | ) |  | 163 |  |  | 3.1 |
Total income tax expense (benefit) | $ | 133 |  |  | 2.2 | % |  | $ | (33 | ) |  | (0.6 | )%
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 | 2019 |  | 2018
Deferred Tax Assets: |  |  |
Allowance for loan losses | $ | 1,561 |  |  | $ | 1,727 |
Nonaccrual loan interest | 41 |  |  | 109 |
Deferred gain - sale leaseback transactions | 1,803 |  |  | 2,006 |
Net operating loss carryforward | 16,248 |  |  | 12,419 |
New markets tax credit | 3,452 |  |  | 3,452 |
AMT credits | 170 |  |  | 340 |
Depreciation | 821 |  |  | 1,864 |
Unrealized loss on available-for-sale securities | 1,092 |  |  | 1,105 |
Total Deferred Tax Assets | 25,188 |  |  | 23,022 |
Deferred Tax Liabilities: |  |  |
Other | 1,073 |  |  | 676 |
Total Deferred Tax Liabilities | 1,073 |  |  | 676 |
Deferred Tax Assets, net | 24,115 |  |  | 22,346 |
Valuation Allowance | (23,945 | ) |  | (21,952 | )
Deferred Tax Assets, net of valuation allowance | $ | 170 |  |  | $ | 394 |
On June 29, 2011, the Company raised $55.0 million of equity. The capital raise triggered a change in control under Section 382 of the Internal Revenue Code. Generally, Section 382 limits the utilization of an entity's net operating loss carryforwards, general business credits, and recognized built-in losses upon a change in ownership. The Company is currently subject to an annual limitation of approximately $900 thousand, but has accumulated availability of $6.7 million as of March 31, 2019. The total cumulative availability over the carryover period (20 years) is $18.1 million. The Company has a net deferred tax asset (“DTA”) of approximately $24.1 million. Based on management's calculations, the Section 382 limitation has resulted in previous reductions of the deferred tax asset of $5.8 million. A valuation allowance for net deferred tax asset of $23.9 million has been recorded. The valuation allowance was initially recorded during fiscal year 2011, and has largely remained through March 31, 2019, as management concluded, and continues to conclude, that it is “more likely than not” that the Company will not be able to fully realize the benefit of its deferred tax assets. The Tax Cuts and Jobs Act, that was passed during the Company's fiscal year 2018, now permits a corporation to receive refunds for AMT credits even if there is no taxable income. The Company made a reasonable estimate and recorded a remeasurement of the Company’s net deferred income tax assets and liabilities based on the new reduced U.S. corporate income tax rate as of March 31, 2018. The impact on the net deferred tax asset before valuation allowances was a reduction of $3.1 million, which was offset by a corresponding decrease in the valuation allowance of the same amount. The Company recorded a benefit of $340 thousand for alternative minimum tax credits which, under the new tax law, are refundable. As of March 31, 2019, the valuation allowance was reduced by $170 thousand, the amount of the Company's AMT credits. At March 31, 2019, the Company had net operating carryforwards for federal purposes of approximately $32.3 million, for state purposes of approximately $61.0 million and for city purposes of approximately $54.0 million which are available to offset future federal, state and city income and which expire over varying periods from March 2029 through March 2039. Federal net operating carryforwards of $8.6 million do not expire. The Company has no uncertain tax positions. The Company and its subsidiaries are subject to federal, New York State and New York City income taxation. The Company is no longer subject to examination by taxing authorities for years before March 31, 2016. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination; with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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