**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**____________**

**FORM      10-QSB**

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

| o  | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT |
|---------|--------------------------------------------------------------------------------|

**DELANCO      BANCORP, INC.**

| **United                States**                                                                                   |   | **36-4519533**                                      |
|--------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
|                  (State                or other jurisdiction of incorporation or                organization) |   | (I.R.S.                Employer Identification No.) |

**615      Burlington Avenue, Delanco, New Jersey 08075**

**(856)      461-0611**

**Not      Applicable**

----

**DELANCO      BANCORP, INC.**

**FORM      10-QSB**

**Index**

|                                             | ***Page                No.*** |
|--------------------------------------------------|-------------------------------|
| **PART                I. FINANCIAL INFORMATION** |                          |
|                                             |                          |   |   |
|                                             | Item                1.        | Financial                Statements |   |
|                                             |                          |   |   |
|                                             |                          | Consolidated                Statements of Financial Condition at |   |
|                                             |                          | June                30, 2007 (Unaudited) and March 31, 2007 | 1   |
|                                             |                          |   |   |
|                                             |                          | Consolidated                Statements of Income for the three months |   |
|                                             |                          | ended                June 30, 2007 and 2006 (Unaudited) | 2   |
|                                             |                          |   |   |
|                                             |                          | Consolidated                Statements of Stockholders’ Equity for the three months |   |
|                                             |                          | ended                June 30, 2007 (Unaudited) | 3   |
|                                             |                          |   |   |
|                                             |                          | Consolidated                Statements of Cash Flows for the three months ended |   |
|                                             |                          | June                30, 2007 and 2006 (Unaudited) | 4   |
|                                             |                          |   |   |
|                                             |                          | Notes                to Unaudited Consolidated Financial Statements | 6   |
|                                             |                          |   |   |
|                                             | Item                2.        | Management’s                Discussion and Analysis or Plan of Operation | 7   |
|                                             |                          |   |   |
|                                             | Item                3.        | Controls                and Procedures | 13 |
|                                             |                          |   |   |
| **PART                II. OTHER INFORMATION**    |                          |
|                                             |                          |   |   |
|                                             | Item                1.        | Legal                Proceedings | 14 |
|                                             |                          |   |   |
|                                             | Item                2.        | Unregistered                Sales of Equity Securities and Use of Proceeds | 14 |
|                                             |                          |   |   |
|                                             | Item                3.        | Defaults                upon Senior Securities | 14 |
|                                             |                          |   |   |
|                                             | Item                4.        | Submission                of Matters to a Vote of Security Holders | 14 |
|                                             |                          |   |   |
|                                             | Item                5.        | Other                Information | 14 |
|                                             |                          |   |   |
|                                             | Item                6.        | Exhibits | 14 |
|                                             |                          |   |   |
| **Signatures**                                   |                          |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**DELANCO      BANCORP, INC. AND SUBSIDIARY**

**Consolidated      **
**Statements      of Financial Condition**

|                                                                                                                                                      |   | **June                30,****2007** |        | **March                31,****2007** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|--------------------------------------|--------|
|                                                                                                                                                      |   | **(unaudited)**                     |        |                                 |   |
| **ASSETS**                                                                                                                                                |   |                                |        |                                 |   |   |   |
| Cash                and cash equivalents                                                                                                                  |   |                                |        |                                 |   |   |   |
| Cash                and amounts due from banks                                                                                                            |   | $                                   | 511,912     |                                 | $      | 271,007 |   |
| Interest-bearing                deposits                                                                                                                  |   |                                | 1,017,739   |                                 |   | 8,405,373 |   |
| Total                cash and cash equivalents                                                                                                            |   |                                | 1,529,651   |                                 |   | 8,676,380 |   |
| Investment                securities:                                                                                                                     |   |                                |        |                                 |   |   |   |
| Securities                held-to-maturity                                                                                                                |   |                                | 14,724,992  |                                 |   | 15,822,529 |   |
| Securities                available-for-sale                                                                                                              |   |                                | 263,182     |                                 |   | 252,647 |   |
| Total                investment securities                                                                                                                |   |                                | 14,988,174  |                                 |   | 16,075,176 |   |
| Loans,                net of allowance for loan losses of $502,448 at June 30, 2007 (unaudited),                $492,448                at March 31, 2007 |   |                                | 88,188,212  |                                 |   | 76,497,739 |   |
| Accrued                interest receivable                                                                                                                |   |                                | 511,650     |                                 |   | 425,872 |   |
| Premises                and equipment, net                                                                                                                |   |                                | 8,354,326   |                                 |   | 8,422,457 |   |
| Investment                required by law-stock in Federal Home Loan Bank, at cost                                                                        |   |                                | 139,100     |                                 |   | 102,700 |   |
| Deferred                income taxes                                                                                                                      |   |                                | 246,700     |                                 |   | 240,100 |   |
| Bank-owned                life insurance                                                                                                                  |   |                                | 124,412     |                                 |   | 124,412 |   |
| Prepaid                income taxes                                                                                                                       |   |                                | 210,809     |                                 |   | 231,230 |   |
| Other                assets                                                                                                                               |   |                                | 256,801     |                                 |   | 265,204 |   |
| Total                assets                                                                                                                               |   | $                                   | 114,549,835 |                                 | $      | 111,061,270 |   |
|                                                                                                                                                      |   |                                |        |                                 |   |   |   |
| **LIABILITIES**                                                                                                                                           |   |                                |        |                                 |   |   |   |
| Deposits                                                                                                                                                  |   |                                |        |                                 |   |   |   |
| Non-interest                bearing deposits                                                                                                              |   | $                                   | 4,107,713   |                                 | $      | 3,372,058 |   |
| Interest                bearing deposits                                                                                                                  |   |                                | 95,360,934  |                                 |   | 92,617,217 |   |
| Total                deposits                                                                                                                             |   |                                | 99,468,647  |                                 |   | 95,989,275 |   |
| Accrued                interest payable                                                                                                                   |   |                                | 339,175     |                                 |   | 349,178 |   |
| Advance                payments by borrowers for taxes and insurance                                                                                      |   |                                | 276,919     |                                 |   | 260,262 |   |
| Other                liabilities                                                                                                                          |   |                                | 609,740     |                                 |   | 640,206 |   |
| Total                liabilities                                                                                                                          |   |                                | 100,694,481 |                                 |   | 97,238,921 |   |
|                                                                                                                                                      |   |                                |        |                                 |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                                                          |   |                                |        |                                 |   |   |   |
|                                                                                                                                                      |   |                                |        |                                 |   |   |   |
| **STOCKHOLDERS’                EQUITY**                                                                                                             |   |                                |        |                                 |   |   |   |
| Preferred                stock, $.01 par value, 3,000,000 shares authorized; no shares                issued                                              |   |                                |        |                                 |   |   |   |
| Common                stock, $.01 par value, 7,000,000 shares authorized; 1,634,725 shares                issued and outstanding                     |   |                                | 16,347      |                                 |   | 16,347 |   |
| Additional                paid-in capital                                                                                                                 |   |                                | 6,688,921   |                                 |   | 6,688,921 |   |
| Retained                earnings, substantially restricted                                                                                                |   |                                | 7,825,006   |                                 |   | 7,797,552 |   |
| Unearned                employee stock ownership plan                                                                                                     |   |                                | (640,810    | )                                    |   | (640,810 | ) |
| Accumulated                other comprehensive income                                                                                                     |   |                                | (34,110     | )                                    |   | (39,661 | ) |
| Total                stockholder’s equity                                                                                                           |   |                                | 13,855,354  |                                 |   | 13,822,349 |   |
| Total                liabilities and stockholders’ equity                                                                                           |   | $                                   | 114,549,835 |                                 | $      | 111,061,270 |   |

*See      Notes to the Unaudited Consolidated Financial Statements.*

----

**DELANCO      BANCORP, INC. AND SUBSIDIARY**

**Consolidated      Statements of Income**

**(Unaudited)**

|                                                               |   | **Three                Months Ended****June                30,** |      |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------|-----------|
|                                                               |   | **2007**                                                         |      | **2006** |   |
| **INTEREST                INCOME**                                 |   |                                                             |      |   |   |   |   |
| Loans                                                              |   | $                                                                | 1,472,099 |   | $ | 671,397 |   |
| Investment                securities                               |   |                                                             | 234,702   |   |   | 259,630 |   |
| Total                interest income                               |   |                                                             | 1,706,801 |   |   | 931,027 |   |
|                                                               |   |                                                             |      |   |   |   |   |
| **INTEREST                EXPENSE**                                |   |                                                             |      |   |   |   |   |
| Interest-bearing                checking accounts                  |   |                                                             | 11,364    |   |   | 11,694 |   |
| Passbook                and money market accounts                  |   |                                                             | 239,863   |   |   | 131,715 |   |
| Certificates                of deposits                            |   |                                                             | 640,750   |   |   | 295,999 |   |
| Advances                from Federal Home Loan Bank                |   |                                                             |      |   |   | 3,003 |   |
| Total                interest expense                              |   |                                                             | 891,977   |   |   | 442,411 |   |
|                                                               |   |                                                             |      |   |   |   |   |
| Net                interest income                                 |   |                                                             | 814,824   |   |   | 488,616 |   |
| Provision                for loan losses                           |   |                                                             | 10,000    |   |   | 15,000 |   |
| Net                interest income after provision for loan losses |   |                                                             | 804,824   |   |   | 473,616 |   |
|                                                               |   |                                                             |      |   |   |   |   |
| **NONINTEREST                INCOME**                              |   |                                                             |      |   |   |   |   |
| Net                gain on sale of non-marketable securities       |   |                                                             |      |   |   | 18,505 |   |
| Net                gain on sale of securities available-for-sale   |   |                                                             |      |   |   | 78,232 |   |
| Service                charges                                     |   |                                                             | 30,845    |   |   | 22,698 |   |
| Rental                income                                       |   |                                                             | 6,003     |   |   |   |   |
| Other                                                              |   |                                                             | 12,924    |   |   | 7,206 |   |
| Total                noninterest income                            |   |                                                             | 49,772    |   |   | 126,641 |   |
|                                                               |   |                                                             |      |   |   |   |   |
| **NONINTEREST                EXPENSE**                             |   |                                                             |      |   |   |   |   |
| ** **Salaries                and employee benefits            |   |                                                             | 441,248   |   |   | 359,962 |   |
| Advertising                                                        |   |                                                             | 8,273     |   |   | 10,544 |   |
| Office                supplies, telephone and postage              |   |                                                             | 36,976    |   |   | 19,029 |   |
| Net                occupancy expense                               |   |                                                             | 163,317   |   |   | 64,543 |   |
| Federal                insurance premiums                          |   |                                                             | 2,676     |   |   | 1,940 |   |
| Data                processing expenses                            |   |                                                             | 32,194    |   |   | 25,044 |   |
| ATM                expenses                                        |   |                                                             | 14,405    |   |   | 13,066 |   |
| Bank                charges and fees                               |   |                                                             | 13,290    |   |   | 12,694 |   |
| Insurance                and surety bond premium                   |   |                                                             | 13,724    |   |   | 9,575 |   |
| Dues                and subscriptions                              |   |                                                             | 13,635    |   |   | 10,546 |   |
| Professional                fees                                   |   |                                                             | 18,224    |   |   | 13,918 |   |
| On-line                banking expense                             |   |                                                             | 22,364    |   |   | 10,426 |   |
| Other                                                              |   |                                                             | 36,696    |   |   | 36,924 |   |
| Total                noninterest expense                           |   |                                                             | 817,022   |   |   | 588,211 |   |
|                                                               |   |                                                             |      |   |   |   |   |
| **INCOME                BEFORE INCOME TAX EXPENSE**                |   |                                                             | 37,574    |   |   | 12,046 |   |
|                                                               |   |                                                             |      |   |   |   |   |
| Federal                income tax                                  |   |                                                             | 7,900     |   |   | 4,373 |   |
| State                income tax                                    |   |                                                             | 2,220     |   |   | 2,186 |   |
| Total                income taxes                                  |   |                                                             | 10,120    |   |   | 6,559 |   |
|                                                               |   |                                                             |      |   |   |   |   |
| **NET                INCOME**                                      |   | $                                                                | 27,454    |   | $ | 5,487 |   |
| **INCOME                PER COMMON SHARE**                         |   |                                                             | 0.02      |   |   | N/A |   |

*See      Notes to the Unaudited Consolidated Financial Statements*
*.*

----

**DELANCO      BANCORP, INC. AND SUBSIDIARY**

**Consolidated      Statements of Stockholders’ Equity**

**(Unaudited)**

|                                                                                                                                                         |   | **Common Stock** |      |       |   |                                 |   |                     |      |                                                     |   |                                                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|------------|--------|--------------------------------------|--------|--------------------------|-----------|----------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                                                                                                                                         |   | **Shares**            |      | **Amount** |   | **Additional****Paid-in****Capital** |   | **Retained****Earnings** |      | **Unearned****Employee Stock****Ownership****Plan** |   | **Accumulated****Other-Comprehensive                  Income (Loss)** |   | **Total****Stockholders’****Equity** |   |
|                                                                                                                                                         |   |                  |      |       |   |                                 |   |                     |      |                                                     |   |                                                                  |   |   |   |
| **Balance                  at March 31, 2007**                                                                                                               |   |                  | 1,634,725 |       | $      | 16,347                               |   | $                        | 6,688,921 |                                                     | $      | 7,797,552                                                             |   | $ | (640,810 | ) | $ | (39,661 | ) | $ | 13,822,349 |   |
| **Comprehensive                  income**                                                                                                                    |   |                  |      |       |   |                                 |   |                     |      |                                                     |   |                                                                  |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                  |   |                  |      |       |   |                                 |   |                     |      |                                                     |   | 27,454                                                                |   |   |   |   |   |   |   |   | 27,454 |   |
| Other                  comprehensive income, net of tax:                                                                                                     |   |                  |      |       |   |                                 |   |                     |      |                                                     |   |                                                                  |   |   |   |   |   |   |   |   |   |   |
| Change                  in unrealized gain (loss) on securities available-for-sale, net                  of                  deferred income taxes of $4,274 |   |                  |      |       |   |                                 |   |                     |      |                                                     |   |                                                                  |   |   |   |   |   | 5,551 |   |   | 5,551 |   |
| Total                  comprehensive                  income                                                                                                 |   |                  |      |       |   |                                 |   |                     |      |                                                     |   |                                                                  |   |   |   |   |   |   |   |   | 33,005 |   |
| **Balance                  at June 30, 2007**                                                                                                                |   |                  | 1,634,725 |       | $      | 16,347                               |   | $                        | 6,688,921 |                                                     | $      | 7,825,006                                                             |   | $ | (640,810 | ) | $ | (34,110 | ) | $ | 13,855,354 |   |

*See        Notes to the Unaudited Consolidated Financial Statements.*

----

**DELANCO      BANCORP, INC. AND SUBSIDIARY**

**Consolidated      **
**Statements      of Cash Flows**

**(Unaudited)**

|                                                                                                            |   | **Three                Months Ended****June                30,** |        |
|-----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-------------|
|                                                                                                            |   | **2007**                                                         |        | **2006** |   |
| **Cash                flow from operating activities**                                                          |   |                                                             |        |   |   |   |   |
| Net                income                                                                                       |   | $                                                                | 27,454      |   | $ | 5,487 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                                             |        |   |   |   |   |
| Deferred                income taxes                                                                            |   |                                                             | (10,302     | ) |   | (14,338 | ) |
| Depreciation                                                                                                    |   |                                                             | 80,065      |   |   | 31,043 |   |
| Discount                accretion net of premium amortization                                                   |   |                                                             | (5,066      | ) |   | (3,000 | ) |
| Provision                for loan losses                                                                        |   |                                                             | 10,000      |   |   | 15,000 |   |
| Net                gain on sale of securities available-for-sale                                                |   |                                                             |        |   |   | (78,232 | ) |
| Net                gain on sale of non-marketable securities                                                    |   |                                                             |        |   |   | (18,505 | ) |
| **Changes                in operating assets and liabilities**                                                  |   |                                                             |        |   |   |   |   |
| **(Increase)                decrease in:**                                                                      |   |                                                             |        |   |   |   |   |
| Accrued                interest receivable                                                                      |   |                                                             | (85,778     | ) |   | (39,053 | ) |
| Other                assets                                                                                     |   |                                                             | 8,403       |   |   | 7,897 |   |
| Prepaid                income taxes                                                                             |   |                                                             | 20,421      |   |   | 15,934 |   |
| **Increase                (decrease) in:**                                                                      |   |                                                             |        |   |   |   |   |
| Accrued                interest payable                                                                         |   |                                                             | (10,003     | ) |   | 34,495 |   |
| Other                liabilities                                                                                |   |                                                             | (30,466     | ) |   | 116,878 |   |
|                                                                                                            |   |                                                             |        |   |   |   |   |
| Net                cash provided by operating activities                                                        |   | $                                                                | 4,728       |   | $ | 73,606 |   |
|                                                                                                            |   |                                                             |        |   |   |   |   |
| **Cash                flows from investing activities**                                                         |   |                                                             |        |   |   |   |   |
| Purchases                of securities available-for-sale                                                       |   |                                                             | (1,282      | ) |   | (1,266 | ) |
| Proceeds                from sale of securities available-for-sale                                              |   |                                                             |        |   |   | 79,581 |   |
| Proceeds                from maturities and principal repayments of securities                held-to-maturity  |   |                                                             | 1,102,603   |   |   | 572,935 |   |
| Purchase                of investment required by law - stock in                Federal Home Loan Bank          |   |                                                             | (36,400     | ) |   | (109,500 | ) |
| Net                increase in loans                                                                            |   |                                                             | (11,700,473 | ) |   | (8,875,916 | ) |
| Purchases                of premises and equipment                                                              |   |                                                             | (11,934     | ) |   | (1,205,293 | ) |
|                                                                                                            |   |                                                             |        |   |   |   |   |
| Net                cash (used in) investing activities                                                          |   | $                                                                | (10,647,486 | ) | $ | (9,539,459 | ) |
|                                                                                                            |   |                                                             |        |   |   |   |   |
| **Cash                flows from financing activities**                                                         |   |                                                             |        |   |   |   |   |
| Net                increase in deposits                                                                         |   |                                                             | 3,479,372   |   |   | 2,458,273 |   |
| Net                increase in advance payments by borrowers                for taxes and insurance             |   |                                                             | 16,657      |   |   | 40,581 |   |
| Net                increase in advances from FHLB                                                               |   |                                                             | __________  |   |   | 2,500,000 |   |
| Net                cash provided by financing activities                                                        |   | $                                                                | 3,496,029   |   | $ | 4,998,854 |   |

----

|                                                                                                        |   | **Three                Months Ended****June                30,** |       |
|-------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|
|                                                                                                        |   | **2007**                                                         |       | **2006** |   |
|                                                                                                        |   |                                                             |       |   |   |
| **Net                decrease in cash and cash equivalents**                                                |   | $                                                                | (7,146,729 | ) | $ | (4,466,999 | ) |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| Cash                and cash equivalents, beginning of the period                                           |   |                                                             | 8,676,380  |   |   | 5,553,058 |   |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| Cash                and cash equivalents, end of period                                                     |   | $                                                                | 1,529,651  |   | $ | 1,086,059 |   |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| **Supplemental                Disclosures:**                                                                |   |                                                             |       |   |   |   |   |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| Cash                paid during the period for interest                                                     |   | $                                                                | 901,980    |   | $ | 407,916 |   |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| Cash                paid during the period for income taxes                                                 |   | $                                                                | —    |   | $ | — |   |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| Loans                transferred to foreclosed real estate during the period                                |   | $                                                                | —    |   | $ | — |   |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| Proceeds                from sales of foreclosed real estate financed through                loans          |   | $                                                                | —    |   | $ | — |   |
|                                                                                                        |   |                                                             |       |   |   |   |   |
| Total                increase (decrease) in unrealized gain on securities                available-for-sale |   | $                                                                | 9,253      |   | $ | (110,904 | ) |

*See      Notes to the Unaudited Consolidated Financial Statements.*

----

**DELANCO      BANCORP, INC. AND SUBSIDIARY**

**Notes      to the Unaudited Consolidated Financial Statements**

**June      30, 2007**

**(1)**
**Basis      of Presentation**

**(2)**
**Stock      Issuance **

**(3)      **
**Earnings      Per Share**

----

|                                         |   | **Three Months Ended****June                30,** |      |
|----------------------------------------------|--------|-------------------------------------------------------------|-----------|
|                                         |   | **2007**                                                    |      | **2006** |   |
| Numerator                                    |   | $                                                           | 27,454    |   |   | — |   |
| Denominators:                                |   |                                                        |      |   |   |   |   |
| Basic                shares outstanding      |   |                                                        | 1,570,644 |   |   | — |   |
| Effect                of dilutive securities |   |                                                        | —   |   |   | — |   |
| Dilutive                shares outstanding   |   |                                                        | 1,570,644 |   |   | — |   |
| Earnings                per share:           |   |                                                        |      |   |   |   |   |
| Basic                                        |   | $                                                           | 0.02      |   |   | — |   |
| Dilutive                                     |   | $                                                           | 0.02      |   |   | — |   |

**Item      2. Management’s Discussion and Analysis or Plan of      Operation**

**Forward-Looking      Statements**

**General**

----

**Balance      Sheet Analysis**

***Overview***
**.      **

***Loans***

**Table        1: Loan Portfolio Analysis**

|                                       |   | **June                30,** |   | **March                31,** |   |
|--------------------------------------------|--------|-----------------------------|--------|------------------------------|--------|
|                                       |   | **2007**                    |   | **2007**                     |   |
| (Dollars                in thousands)      |   | **Amount**                  |   | **Percent**                  |   | **Amount** |   | **Percent** |   |
| Real                estate loans:          |   |                        |   |                         |   |   |   |   |   |   |   |   |   |
| Residential                                |   | $                           | 25,147 |                         |   | 27.9 | % | $ | 24,112 |   |   | 30.9 | % |
| Commercial                and multi-family |   |                        | 20,937 |                         |   | 23.3 |   |   | 12,681 |   |   | 16.3 |   |
| Construction                               |   |                        | 3,446  |                         |   | 3.8 |   |   | 2,061 |   |   | 2.6 |   |
| Total                real estate loans     |   |                        | 49,530 |                         |   | 55.0 |   |   | 38,854 |   |   | 49.8 |   |
| Commercial                loans            |   |                        | 14,726 |                         |   | 16.4 |   |   | 15,124 |   |   | 19.4 |   |
| Consumer                loans              |   |                        | 25,756 |                         |   | 28.6 |   |   | 24,066 |   |   | 30.8 |   |
| Total                loans                 |   |                        | 90,012 |                         |   | 100.0 | % |   | 78,044 |   |   | 100.0 | % |
| Loans                in process            |   |                        | (1,155 | )                            |   |   |   |   | (916 | ) |   |   |   |
| Net                deferred loan fees      |   |                        | (167   | )                            |   |   |   |   | (138 | ) |   |   |   |
| Allowance                for losses        |   |                        | (502   | )                            |   |   |   |   | (492 | ) |   |   |   |
| Loans,                net                  |   | $                           | 88,188 |                         |   |   |   | $ | 76,498 |   |   |   |   |

**Table        2: Nonperforming Assets**

|                                                                                                      |   | **June                30,** |    | **March                31,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|------------------------------|--------|
| (Dollars                in thousands)                                                                     |   | **2007**                    |    | **2007**                     |   |
| Nonaccrual                loans                                                                           |   |                        | — |                         |   | — |   |
| Accruing                loans past due 90 days or more                                                    |   |                        | 436     |                         |   | 564 |   |
| Total                of nonaccrual and 90 days or more past due loans                                     |   |                        | 436     |                         |   | 564 |   |
| Real                estate owned                                                                          |   |                        | — |                         |   | — |   |
| Other                nonperforming assets                                                                 |   |                        | — |                         |   | — |   |
| Total                nonperforming assets                                                                 |   |                        | 436     |                         |   | 564 |   |
| Troubled                debt restructurings                                                               |   |                        | — |                         |   | — |   |
| Troubled                debt restructurings and total nonperforming assets                                |   |                        | 436     |                         |   | 564 |   |
|                                                                                                      |   |                        |    |                         |   |   |   |
| Total                nonperforming loans to total loans                                                   |   |                        | 0.48    | %                            |   | 0.72 | % |
| Total                nonperforming loans to total assets                                                  |   |                        | 0.38    |                         |   | 0.51 |   |
| Total                nonperforming assets and troubled debt restructurings to total                assets |   |                        | 0.38    |                         |   | 0.51 |   |

***Securities.***

----

**Table        3: Investment Securities**

|                                                 |   | **June                30,** |    | **March                31,** |   |
|------------------------------------------------------|--------|-----------------------------|---------|------------------------------|--------|
|                                                 |   | **2007**                    |    | **2007**                     |   |
| (Dollars                in thousands)                |   | **Amortized****Cost**       |    | **Fair****Value**            |   | **Amortized****Cost** |   | **Fair****Value** |   |
| Securities                available for sale:        |   |                        |    |                         |   |   |   |   |   |   |   |   |   |
| Mutual                funds                          |   | $                           | 213     |                         | $      | 263 |   | $ | 212 |   | $ | 253 |   |
| Equity                securities                     |   |                        | — |                         |   | — |   |   | — |   |   | — |   |
| Total                available for sale              |   |                        | 213     |                         |   | 263 |   |   | 212 |   |   | 253 |   |
|                                                 |   |                        |    |                         |   |   |   |   |   |   |   |   |   |
| Securities                held to maturity:          |   |                        |    |                         |   |   |   |   |   |   |   |   |   |
| U.S.                Government and agency securities |   |                        | 3,500   |                         |   | 3,443 |   |   | 4,000 |   |   | 3,942 |   |
| Mortgage-backed                securities            |   |                        | 11,225  |                         |   | 11,092 |   |   | 11,823 |   |   | 11,810 |   |
| Total                held to maturity                |   |                        | 14,725  |                         |   | 14,535 |   |   | 15,823 |   |   | 15,752 |   |
| Total                                                |   | $                           | 14,938  |                         | $      | 14,798 |   | $ | 16,035 |   | $ | 16,005 |   |

***Deposits***

**Table        4: Deposits**

|                                               |   | **June                30,** |   | **March                31,** |   |
|----------------------------------------------------|--------|-----------------------------|--------|------------------------------|--------|
|                                               |   | **2007**                    |   | **2007**                     |   |
| (Dollars                in thousands)              |   | **Amount**                  |   | **Percent**                  |   | **Amount** |   | **Percent** |   |
| Noninterest-bearing                demand deposits |   | $                           | 4,107  |                         |   | 4.1 | % | $ | 3,381 |   |   | 3.5 | % |
| Interest-bearing                demand deposits    |   |                        | 7,360  |                         |   | 7.4 |   |   | 7,930 |   |   | 8.3 |   |
| Savings                and money market accounts   |   |                        | 34,078 |                         |   | 34.3 |   |   | 33,154 |   |   | 34.5 |   |
| Certificates                of deposit             |   |                        | 53,924 |                         |   | 54.2 |   |   | 51,524 |   |   | 53.7 |   |
| Total                                              |   | $                           | 99,469 |                         |   | 100.0 | % | $ | 95,989 |   |   | 100.0 | % |

***Borrowings***

**Results      of Operations for the Three Months Ended June 30, 2007 and      2006**

*** ***
***Financial      Highlights.***

| **Table                5: Summary Income Statements**             |   |     |   |     |   |                       |   |              |   |
|-------------------------------------------------------------------|--------|----------|--------|----------|--------|----------------------------|--------|-------------------|--------|
| Three                months ended June 30, (Dollars in thousands) |   | **2007** |   | **2006** |   | **2007 v. 2006** |   | **% Change** |   |
| Net                interest income                                |   | $        | 815    |     | $      | 489                        |   | $                 | 326    |   |   | 66.7 | % |
| Provision                for loan losses                          |   |     | 10     |     |   | 15                         |   |              | (5     | ) |   | 33.3 |   |
| Noninterest                income                                 |   |     | 50     |     |   | 127                        |   |              | (77    | ) |   | 60.6 |   |
| Noninterest                expenses                               |   |     | 817    |     |   | 588                        |   |              | 229    |   |   | 38.9 |   |
| Net                income                                         |   |     | 27     |     |   | 5                          |   |              | 22     |   |   | 440.0 |   |
|                                                              |   |     |   |     |   |                       |   |              |   |   |   |   |   |
| Return                on average equity (annualized)              |   |     | 0.79   | %        |   | 0.27                       | %      |              | 0.52   | % |   |   |   |
| Return                on average assets (annualized)              |   |     | 0.10   |     |   | 0.03                       |   |              | 0.07   |   |   |   |   |

----

***Net      Interest Income.***

| **Table                6: Analysis of Net Interest Income**       |   |     |    |     |   |                       |   |              |   |
|-------------------------------------------------------------------|--------|----------|---------|----------|--------|----------------------------|--------|-------------------|--------|
| Three                months ended June 30, (Dollars in thousands) |   | **2007** |    | **2006** |   | **2007 v. 2006** |   | **% Change** |   |
| **Components                of net interest income**              |   |     |    |     |   |                       |   |              |   |   |   |   |   |
| Loans                                                             |   | $        | 1,472   |     | $      | 671                        |   | $                 | 801    |   |   | 119.4 | % |
| Investment                securities                              |   |     | 235     |     |   | 260                        |   |              | (25    | ) |   | (9.6 | ) |
| Total                interest income                              |   |     | 1,707   |     |   | 931                        |   |              | 776    |   |   | 83.3 |   |
| Deposits                                                          |   |     | 892     |     |   | 439                        |   |              | 453    |   |   | 103.2 |   |
| Borrowings                                                        |   |     | — |     |   | 3                          |   |              | (3     | ) |   | (100.0 | ) |
| Total                interest expense                             |   |     | 892     |     |   | 442                        |   |              | 450    |   |   | 101.8 |   |
| Net                interest income                                |   |     | 815     |     |   | 489                        |   |              | 326    |   |   | 66.7 |   |
| **Average                yields and rates paid**                  |   |     |    |     |   |                       |   |              |   |   |   |   |   |
| Interest-earning                assets                            |   |     | 6.52    | %        |   | 5.41                       | %      |              | 1.11bp |   |   |   |   |
| Interest-bearing                liabilities                       |   |     | 3.76    |     |   | 2.69                       |   |              | 1.07   |   |   |   |   |
| Interest                rate spread                               |   |     | 2.76    |     |   | 2.72                       |   |              | 0.04   |   |   |   |   |
| Net                interest margin                                |   |     | 3.11    |     |   | 2.84                       |   |              | 0.27   |   |   |   |   |
| **Average                balances**                               |   |     |    |     |   |                       |   |              |   |   |   |   |   |
| Loans                                                             |   | $        | 85,682  |     | $      | 46,405                     |   | $                 | 39,277 |   |   | 84.6 | % |
| Investment                securities                              |   |     | 15,420  |     |   | 20,114                     |   |              | (4,694 | ) |   | 23.3 |   |
| Other                earning assets                               |   |     | 3,651   |     |   | 2,311                      |   |              | 1,340  |   |   | 58.0 |   |
| Interest-bearing                deposits                          |   |     | 94,795  |     |   | 64,924                     |   |              | 29,871 |   |   | 46.0 |   |
| Borrowings                                                        |   |     | — |     |   | 833                        |   |              | (833   | ) |   | 100.0 |   |

***Provision      for Loan Losses.***

----

| **Table                7: Analysis of Loan Loss Experience**                                              |   |
|-----------------------------------------------------------------------------------------------------------|--------|
| Three                months ended June 30, (Dollars in thousands)                                         |   | **2007** |   | **2006** |   |
| Allowance                at beginning of period                                                           |   | $ | 492 |   | $ | 237 |   |
| Provision                for loan losses                                                                  |   |   | 10 |   |   | 15 |   |
| Total                charge-offs                                                                          |   |   | — |   |   | — |   |
| Recoveries                                                                                                |   |   | — |   |   | — |   |
| Net                charge-offs                                                                            |   |   | — |   |   | — |   |
| Allowance                at end of period                                                                 |   | $ | 502 |   | $ | 252 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| Allowance                to nonperforming loans                                                           |   |   | 1.15 |   |   | 1.60 |   |
| Allowance                to total loans outstanding at the end of the period                              |   |   | 0.57 |   |   | 0.50 |   |
| Net                charge-offs (recoveries) to average loans outstanding during                the period |   |   | — |   |   | — |   |

***Non-Interest      Income.***

| **Table                8: Noninterest Income Summary**            |   |     |    |     |   |                        |   |                        |   |
|-------------------------------------------------------------------|--------|----------|---------|----------|--------|-----------------------------|--------|-----------------------------|--------|
| Three                months ended June 30, (Dollars in thousands) |   | **2007** |    | **2006** |   | **$                Change** |   | **%                Change** |   |
| Gain                (loss) on sale of securities                  |   | $        | — |     | $      | 78                          |   | $                           | (78    | ) |   | (100.0 | )% |
| Net                gain on sale of non-marketable securities      |   |     | — |     |   | 19                          |   |                        | (19    | ) |   | (100.0 | ) |
| Service                charges                                    |   |     | 31      |     |   | 23                          |   |                        | 8      |   |   | 34.8 |   |
| Rental                income                                      |   |     | 6       |     |   | —                     |   |                        | 6      |   |   | — |   |
| Other                                                             |   |     | 13      |     |   | 7                           |   |                        | 6      |   |   | 85.7 |   |
| Total                                                             |   | $        | 50      |     | $      | 127                         |   | $                           | (77    | ) |   | 60.6 | % |

***Non-Interest      Expenses.***

| **Table                9: Noninterest Expense Summary**           |   |     |   |     |   |                        |   |                        |    |
|-------------------------------------------------------------------|--------|----------|--------|----------|--------|-----------------------------|--------|-----------------------------|---------|
| Three                months ended June 30, (Dollars in thousands) |   | **2007** |   | **2006** |   | **$                Change** |   | **%                Change** |    |
| Salaries                and employee benefits                     |   | $        | 441    |     | $      | 360                         |   | $                           | 81      |   |   | 22.5 | % |
| Advertising                                                       |   |     | 8      |     |   | 10                          |   |                        | (2      | ) |   | 20.0 |   |
| Office                supplies, telephone and postage             |   |     | 37     |     |   | 19                          |   |                        | 18      |   |   | 94.7 |   |
| Net                occupancy expense                              |   |     | 163    |     |   | 64                          |   |                        | 99      |   |   | 154.7 |   |
| Federal                insurance premiums                         |   |     | 3      |     |   | 2                           |   |                        | 1       |   |   | 50.0 |   |
| Data                processing expenses                           |   |     | 32     |     |   | 25                          |   |                        | 7       |   |   | 28.0 |   |
| ATM                expenses                                       |   |     | 15     |     |   | 13                          |   |                        | 2       |   |   | 15.4 |   |
| Bank                charges and fees                              |   |     | 13     |     |   | 13                          |   |                        | — |   |   | — |   |
| Insurance                and surety bond premiums                 |   |     | 14     |     |   | 10                          |   |                        | 4       |   |   | 40.0 |   |
| Dues                and subscriptions                             |   |     | 14     |     |   | 11                          |   |                        | 3       |   |   | 27.3 |   |
| Professional                fees                                  |   |     | 18     |     |   | 14                          |   |                        | 4       |   |   | 28.6 |   |
| On-line                banking expenses                           |   |     | 22     |     |   | 10                          |   |                        | 12      |   |   | 120.0 |   |
| Other                                                             |   |     | 37     |     |   | 37                          |   |                        | — |   |   | — |   |
| Total                                                             |   | $        | 817    |     | $      | 588                         |   | $                           | 229     |   |   | 38.9 | % |

----

**Liquidity      and Capital Management**

***Liquidity      Management.***

***Capital      Management.***

**Off-Balance      Sheet Arrangements**

----

**Item      3. Controls and Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1.**
**      Legal Proceedings**

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

**Item      3.**
**      Defaults upon Senior Securities**

**Item      4.**
**      Submission of Matters to a Vote of Security Holders**

**Item      5.**
**      Other Information**

**Item      6.**
**      Exhibits**

|   | 3.1 | Charter                of Delanco Bancorp, Inc. (1) |
|--------|-----|-----------------------------------------------------|

|   | 3.2 | Bylaws                of Delanco Bancorp, Inc. (1) |
|--------|-----|----------------------------------------------------|

|   | 4.0 | Stock                Certificate of Delanco Bancorp, Inc.                (1) |
|--------|-----|------------------------------------------------------------------------------|

|   | 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 |
|--------|------|-------------------------------------------|

|   | (1) | Incorporated                  by reference into this document from the Exhibits filed with the                  Securities and Exchange Commission on the Registration Statement                  on Form                  SB-2, and any amendments thereto, Registration No.                  333-139339. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                  | DELANCO                BANCORP, INC. |
|---------------------------------------|--------------------------------------|
|                                  |                                 |   |
| Dated:                August 13, 2007 | By:                                  | /s/Robert                M. Notigan Robert                M. Notigan |
|                                  |                                 | President                and Chief Executive Officer |
|                                  |                                 | (principal                executive officer) |
|                                  |                                 |   |
|                                  |                                 |   |
| Dated:                August 13, 2007 | By:                                  | /s/                Douglas R. Allen, Jr. Douglas                R. Allen, Jr. |
|                                  |                                 | Senior                Vice President and Chief Financial Officer |
|                                  |                                 | (principal                financial and accounting officer) |