The following tables set forth certain unaudited financial data for our quarterly operations in fiscal 2016 and 2015. The following information has been prepared on the same basis as the annual information presented elsewhere in this report and, in the opinion of management, includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the information for the quarterly periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.

Restatement

The Company has restated its consolidated financial statements for fiscal year 2015 contained in the Annual Reports on Form 10-K for the years ended March 31, 2016 and 2015, and unaudited interim consolidated financial statements contained in the Company's Quarterly Reports on Form 10-Q for each of the quarters ended June 30, 2015 and 2014, September 30, 2015 and 2014 and December 31, 2015 and 2014. The Restatement corrects a material error related to the accrual of data processing and other expenses related to invoices paid to the Bank's core system provider. In fiscal 2016, Carver Bancorp recognized expenses on invoices paid to its core system provider, and during the course of preparation of the fiscal 2016 financial statements and audit, management determined that $613 thousand of the expenses should have been recognized in fiscal 2015. The cumulative adjustments of the Restatement increased non-interest expense by $613 thousand for the fiscal year ended March 31, 2015 and decreased non-interest expense by $326 thousand for the first three quarters of fiscal 2016.

In fiscal 2016, Management identified an accounting error related to the reporting of earnings per share (EPS). Under the two class method of computing EPS, the Company has two classes of stock to which undistributed earnings are allocated. Previously, the impact of the undistributed earnings allocated to the shares of the Company’s Series D convertible preferred stock which are considered participating securities and had not been considered in this computation. Basic and Diluted EPS amounts are updated for all periods in a net income position to include 45,118 shares of Series D Preferred Stock which, under certain circumstances, could convert to 5,518,006 shares of common stock. There was no impact for fiscal year 2015 due to the fact that the Company recorded a net loss.

In addition to the errors described above, adjustments have been made related to other individually immaterial errors including certain corrections that had been previously identified but not recorded because they were not material to our consolidated financial statements. These corrections included adjustments to accrued liabilities, provision for loan losses and certain reclassification entries. For the year ended March 31, 2015, the Restatement for the material error reported a $613 thousand decrease in net income offset to an increase in other liabilities. The correction of certain other errors resulted in reclassifications between cash flow from operating activities to the cash flow from investing activities section of the Consolidated Statement of Cash Flow.

The tables below provide the individual line items as originally reported on the Company's Forms 10-Q and their restated amounts:



	June 30, 2015									September 30, 2015									December 31, 2015									March 31, 2016
$ in thousands, except per share data	Previously Reported			Adjustments			Restated			Previously Reported			Adjustments			Restated			Previously Reported			Adjustments			Restated
Fiscal 2016
Interest income	$	6,208		—			$	6,208		$	6,730		$	—		$	6,730		$	7,009		$	—		$	7,009		$	6,961
Interest expense	1,058			—			1,058			1,093			—			1,093			1,171			—			1,171			1,217
Net interest income	5,150			—			5,150			5,637			—			5,637			5,838			—			5,838			5,744
Provision for loan losses	117			(83		)	34			643			—			643			728			—			728			89
Non-interest income	1,193			—			1,193			1,131			—			1,131			2,741			—			2,741			1,469
Non-interest expense	6,035			(184		)	5,851			6,211			(9		)	6,202			7,347			(133		)	7,214			8,186
Income tax (expense) benefit	(13		)	—			(13		)	(79		)	—			(79		)	(67		)	—			(67		)	32
Net income (loss) attributable to Carver Bancorp, Inc.	$	178		$	267		$	445		$	(165	)	$	9		$	(156	)	$	437		$	133		$	570		$	(1,030	)
Earnings (loss) per common share
Basic ⁽¹⁾	$	0.05		$	—		$	0.05		$	(0.04	)	$	—		$	(0.04	)	$	0.12		$	(0.06	)	$	0.06		$	(0.28	)
Diluted ⁽¹⁾	$	0.05		$	—		$	0.05		$	(0.04	)	$	—		$	(0.04	)	$	0.12		$	(0.06	)	$	0.06		$	(0.28	)

⁽¹⁾Basic and Diluted EPS amounts restated for all periods in a net income position to include 45,118 shares of Series D Preferred Stock (participating securities) which, under certain circumstances, could convert to 5,518,006 shares of common stock.



	June 30, 2014									September 30, 2014									December 31, 2014									March 31, 2015
$ in thousands, except per share data	Previously Reported			Adjustments			Restated			Previously Reported			Adjustments			Restated			Previously Reported			Adjustments			Restated			Previously Reported			Adjustments			Restated
Fiscal 2015
Interest income	$	5,758		—			$	5,758		$	5,590		—			$	5,590		$	5,265		—			$	5,265		$	5,714		$	—		$	5,714
Interest expense	991			—			991			992			—			992			1,013			—			1,013			946			—			946
Net interest income	4,767			—			4,767			4,598			—			4,598			4,252			—			4,252			4,768			—			4,768
Recovery of loan losses	(780		)	(133		)	(913		)	(713		)	—			(713		)	(1,151		)	—			(1,151		)	(365		)	301			(64		)
Non-interest income	1,202			—			1,202			1,562			—			1,562			1,408			—			1,408			1,394			—			1,394
Non-interest expense	6,547			77			6,624			6,753			27			6,780			6,789			338			7,127			6,622			26			6,648
Income tax expense	(16		)	—			(16		)	(57		)	—			(57		)	(62		)	—			(62		)	(31		)	—			(31		)
Net income (loss) attributable to noncontrolling interest	(17		)	—			(17		)	147			—			147			151			—			151			—			—			—
Net income (loss) attributable to Carver Bancorp, Inc.	$	169		$	56		$	225		$	210		$	(27	)	$	183		$	111		$	(338	)	$	(227	)	$	(126	)	$	(327	)	$	(453	)
Earnings (loss) per common share*
Basic ⁽¹⁾	$	0.05		$	(0.02	)	$	0.02		$	0.06		$	(0.04	)	$	0.02		$	0.03		$	(0.09	)	$	(0.06	)	$	(0.03	)	$	(0.09	)	$	(0.12	)
Diluted ⁽¹⁾	$	0.05		$	(0.02	)	$	0.02		$	0.06		$	(0.04	)	$	0.02		$	0.03		$	(0.09	)	$	(0.06	)	$	(0.03	)	$	(0.09	)	$	(0.12	)

* Difference in total earnings per share to Consolidated Statement of Operations is due to rounding

⁽¹⁾ Basic and Diluted EPS amounts restated for all periods in a net income position to include 45,118 shares of Series D Preferred Stock (participating securities) which, under certain circumstances, could convert to 5,518,006 shares of common stock.