All applicable amounts relating to this Restatement have been reflected in the consolidated financial statements and disclosed in the notes to the consolidated financial statements in this 2017 Form 10-K. See Note 19 – Quarterly Financial Data (Unaudited) for further details of the restatement adjustments for the quarterly periods of fiscal years 2016 and 2017. The following analysis includes the financial statements as originally reported and as adjusted and takes into account the following adjustments.



CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

	March 31, 2016
$ in thousands except per share data	As Previously Reported			Adjustment			As Restated
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	63,156		$	(472	)	$	62,684
Money market investments	504			—			504
Total cash and cash equivalents	63,660			(472		)	63,188
Restricted cash	225			—			225
Investment securities:
Available-for-sale, at fair value	56,180			—			56,180
Held-to-maturity, at amortized cost (fair value of $15,653 at March 31, 2016)	15,311			—			15,311
Total investments	71,491			—			71,491

Loans held-for-sale (HFS)	2,495			(59		)	2,436

Loans receivable:
Real estate mortgage loans	517,785			(152		)	517,633
Commercial business loans	71,192			(239		)	70,953
Consumer loans	42			—			42
Loans, net	589,019			(391		)	588,628
Allowance for loan losses	(5,232		)	—			(5,232		)
Total loans receivable, net	583,787			(391		)	583,396
Premises and equipment, net	5,983			—			5,983
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	2,883			—			2,883
Accrued interest receivable	3,647			(1,227		)	2,420
Other assets	7,557			(525		)	7,032
Total assets	$	741,728		$	(2,674	)	$	739,054

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Savings	$	95,230		$	—		$	95,230
Non-interest bearing checking	56,634			—			56,634
Interest-bearing checking	33,106			—			33,106
Money market	163,380			—			163,380
Certificates of deposit	255,854			—			255,854
Mortgagors deposits	2,537			—			2,537
Total deposits	606,741			—			606,741
Advances from the FHLB-NY and other borrowed money	68,403			—			68,403
Other liabilities	12,369			(339		)	12,030
Total liabilities	687,513			(339		)	687,174
EQUITY
Preferred stock (par value $0.01 per share: 45,118 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding)	45,118			—			45,118
Common stock (par value $0.01 per share: 10,000,000 shares authorized; 3,698,031 issued; 3,696,087 shares outstanding at March 31, 2016)	61			—			61
Additional paid-in capital	55,470			—			55,470
Accumulated deficit	(45,710		)	(2,335		)	(48,045		)
Treasury stock, at cost (1,944 shares at March 31, 2016)	(417		)	—			(417		)
Accumulated other comprehensive loss	(307		)	—			(307		)
Total equity	54,215			(2,335		)	51,880
Total liabilities and equity	$	741,728		$	(2,674	)	$	739,054



CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

	Year Ended March 31, 2016
$ in thousands except per share data	As Previously Reported			Adjustment			As Restated
Interest income:
Loans	$	24,702		$	(344	)	$	24,358
Mortgage-backed securities	761			—			761
Investment securities	1,295			—			1,295
Money market investments	150			—			150
Total interest income	26,908			(344		)	26,564

Interest expense:
Deposits	3,269			—			3,269
Advances and other borrowed money	1,270			66			1,336
Total interest expense	4,539			66			4,605
Net interest income	22,369			(410		)	21,959
Provision for loan losses	1,495			—			1,495
Net interest income after provision for (recovery of) loan losses	20,874			(410		)	20,464

Non-interest income:
Depository fees and charges	3,112			—			3,112
Loan fees and service charges	940			(521		)	419
Gain on sale of securities, net	1			—			1
Gain on sale of loans, net	499			—			499
Gain on real estate owned, net	35			—			35
Gain on sale of building, net	1,221			—			1,221
Lower of cost or market adjustment on loans held-for-sale	1			—			1
Other	726			—			726
Total non-interest income	6,535			(521		)	6,014

Non-interest expense:
Employee compensation and benefits	11,358			—			11,358
Net occupancy expense	4,695			—			4,695
Equipment, net	635			—			635
Data processing	1,100			—			1,100
Consulting fees	1,058			—			1,058
Federal deposit insurance premiums	527			—			527
Other	8,078			666			8,744
Total non-interest expense	27,451			666			28,117

Loss before income taxes	(42		)	(1,597		)	(1,639		)
Income tax expense	128			—			128
Net loss	$	(170	)	$	(1,597	)	$	(1,767	)

Net loss	$	(170	)	$	(1,597	)	$	(1,767	)
Total other comprehensive income	738			—			738
Comprehensive income (loss)	$	568		$	(1,597	)	$	(1,029	)

Loss per common share:
Basic	$	(0.05	)	$	(0.43	)	$	(0.48	)
Diluted	$	(0.05	)	$	(0.43	)	$	(0.48	)



CONSOLIDATED STATEMENT OF CASH FLOWS

	Year Ended March 31, 2016
$ in thousands except per share data	As Previously Reported			Adjustment			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(170	)	$	(1,597	)	$	(1,767	)

Adjustments to reconcile net loss to net cash provided by operating activities:
Provision for loan losses	1,495			—			1,495
Stock based compensation expense	2			—			2
Depreciation and amortization expense	1,415			—			1,415
Loss (gain) on sale of real estate owned, net of market value adjustment	(35		)	—			(35		)
Gain on sale of securities, net	(1		)	—			(1		)
Gain on sale of loans, net	(499		)	—			(499		)
Gain on sale of building	(1,221		)	—			(1,221		)
Market adjustment on held-for-sale loans	(1		)	—			(1		)
Amortization and accretion of loan premiums and discounts and deferred charges	188			(52		)	136
Amortization and accretion of premiums and discounts - securities	322			—			322
Decrease (increase) in accrued interest receivable	(866		)	942			76
Decrease (increase) in other assets	(1,915		)	943			(972		)
Increase in other liabilities	2,010			(540		)	1,470
Net cash provided by operating activities	724			(304		)	420
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities	(52,036		)	—			(52,036		)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities	63,980			—			63,980
Net (decrease) increase in cash and cash equivalents	12,668			(304		)	12,364
Cash and cash equivalents at beginning of period	50,992			(168		)	50,824
Cash and cash equivalents at end of period	$	63,660		$	(472	)	$	63,188