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Manhattan Bridge Capital, Inc. Reports Second Quarter Results for 2025

1. LOAN's Q2 2025 revenues decreased by 3.6% year-over-year. 2. Net income remained stable at $1,413,000, or $0.12 per share. 3. Interest income dropped due to reduced loans receivable. 4. Longer loan terms are evident from extended repayment durations. 5. CEO highlights ongoing challenges from high interest rates.

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$5.5307/22 07:14 AM EDTEvent Start
$5.391407/23 01:28 PM EDTLatest Updated
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Why Bearish?

The decrease in revenues and interest income reflects operational challenges, which could negatively impact stock performance. Historical context shows similar trends can lead to declining stock prices, particularly in financial firms reliant on interest income.

How important is it?

The decline in revenue and interest income directly affects LOAN's business model, making this news pertinent for investors. Understanding these metrics is crucial for making informed investment decisions.

Why Short Term?

This analysis is based on recent quarterly results, indicating immediate, rather than long-term, market impacts. Quick responses from investors are expected due to quarterly earnings reports being a focal point for stock valuation.

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GREAT NECK, N.Y., July 22, 2025 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its total revenues for the three months ended June 30, 2025 were approximately $2,355,000, compared to approximately $2,443,000 for the three months ended June 30, 2024, a decrease of $88,000, or 3.6%. The decrease in revenue was primarily attributable to lower interest income, resulting from a reduction in loans receivable, period-over-period, partially offset by an increase of origination fees. For the three months ended June 30, 2025 and 2024, approximately $1,899,000 and $2,033,000, respectively, of the Company’s revenues were attributable to interest income on secured commercial loans that the Company offered to real estate investors, and approximately $456,000 and $411,000, respectively, of its revenues were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. Net income for the three months ended June 30, 2025 was approximately $1,413,000, or $0.12 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $1,409,000, or $0.12 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), for the three months ended June 30, 2024, an increase of $4,000. Total revenues for the six months ended June 30, 2025 were approximately $4,629,000, compared to approximately $5,016,000 for the six months ended June 30, 2024, a decrease of $387,000, or 7.7%. The decrease in revenue was primarily attributable to lower interest income, resulting from a reduction in loans receivable, period-over-period. For the six months ended June 30, 2025 and 2024, revenues of approximately $3,733,000 and $4,175,000, respectively, were attributable to interest income on secured commercial loans that the Company offered to real estate investors, and approximately $896,000 and $841,000, respectively, were attributable to origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. Net income for the six months ended June 30, 2025 was approximately $2,786,000, or $0.24 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), as compared to approximately $2,885,000, or $0.25 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares), for the six months ended June 30, 2024, a decrease of $99,000, or 3.4%. This decrease is primarily attributable to the decrease in interest income from loans, partially offset by a decrease in interest expense. As of June 30, 2025, total shareholders' equity was approximately $43,427,000. Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “Interest rates are still weighing on the real estate markets; therefore, we’re experiencing a slower pace of loan closings versus our typical pace, and longer loan terms, reflected by a higher amount of extended loans over the initial ultra short term of one year. Yet, we managed to deliver another quarter with net earnings of $0.12.” About Manhattan Bridge Capital, Inc. Manhattan Bridge Capital, Inc. offers short-term secured, non–banking loans (sometimes referred to as ‘‘hard money’’ loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com. Forward Looking Statements This press release and the statements of the Company’s representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue” are intended to identify forward-looking statements. For example, when the Company discusses the impact of interest rates on the real estate markets, including on pace of closings and terms of loans, it is using forward looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors, including but not limited to the following: (i) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive; (ix) an increase in interest rates may impact our profitability; (x) we may be unsuccessful in our efforts to extend or replace our existing credit line; and (xi) we may be unsuccessful in our efforts to refinance our 6% senior secured notes, due April 22, 2026. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission identify important factors that could cause such differences. These forward-looking statements speak only as of the date of this press release, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS AssetsJune 30, 2025(unaudited) December 31, 2024(audited)Loans receivable, net of deferred origination and other fees$65,217,737  $65,405,731 Interest and other fees receivable on loans 1,877,218   1,521,033 Cash 208,767   178,012 Cash – restricted 875   23,750 Other assets 153,112   62,080 Right-of-use asset – operating lease, net 127,633   154,039 Deferred financing costs, net 9,240   16,171 Total assets$67,594,582  $67,360,816  Liabilities and Stockholders’ Equity Liabilities:   Line of credit$16,523,205  $16,427,874 Senior secured notes (net of deferred financing costs of $59,443 and $96,985, respectively) 5,940,557   5,903,015 Accounts payable and accrued expenses 198,622   232,236 Operating lease liability 139,882   167,119 Loan holdback 50,000   50,000 Dividends payable 1,315,445   1,315,445 Total liabilities 24,167,711   24,095,689 Commitments and contingencies       Stockholders’ equity:   Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued and outstanding ---   --- Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,438,651 outstanding 11,757   11,757 Additional paid-in capital 45,568,473   45,561,941 Less: Treasury stock, at cost – 318,407 shares (1,070,406)  (1,070,406)Accumulated deficit (1,082,953)  (1,238,165)Total stockholders’ equity 43,426,871   43,265,127 Total liabilities and stockholders’ equity$67,594,582  $67,360,816          MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)  Three Months Ended June 30,Six Months Ended June 30,  2025  2024  2025  2024 Revenue:            Interest income from loans$1,899,403 $2,032,687 $3,733,317 $4,175,174 Origination fees 455,833  410,528  895,632  841,119 Total revenue 2,355,236  2,443,215  4,628,949  5,016,293                    Operating costs and expenses:    Interest and amortization of deferred financing costs 506,250  603,230  957,615  1,293,819 Referral fees 1,523  500  1,667  1,000 General and administrative expenses 437,785  434,282  891,355  844,560 Total operating costs and expenses 945,558  1,038,012  1,850,637  2,139,379 Income from operations 1,409,678  1,405,203  2,778,312  2,876,914 Other income 4,500  4,500  9,000  9,000 Income before income tax expense 1,414,178  1,409,703  2,787,312  2,885,914 Income tax expense (1,210) (650) (1,210) (650)Net income$1,412,968 $1,409,053 $2,786,102 $2,885,264      Basic and diluted net income per common share outstanding:    --Basic$                0.12 $                0.12 $                  0.24 $                  0.25 --Diluted$                0.12 $                0.12 $                0.24 $                0.25      Weighted average number of common shares outstanding:    --Basic 11,438,651  11,438,651  11,438,651  11,438,662 --Diluted 11,438,651  11,438,651  11,438,651  11,438,662               MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited) FOR THE THREE MONTHS ENDED JUNE 30, 2025  Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals SharesAmount SharesCost  Balance, April 1, 202511,757,058$11,757$45,565,207318,407$(1,070,406)$(1,180,476)$43,326,082Non-cash compensation  3,266   3,266Dividends declared and payable     (1,315,445)(1,315,445)Net income.....1,412,9681,412,968Balance, June 30, 202511,757,058$11,757$45,568,473318,407$(1,070,406)$(1,082,953)$43,426,871 FOR THE THREE MONTHS ENDED JUNE 30, 2024  Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals SharesAmount SharesCost  Balance, April 1, 202411,757,058$11,757$45,552,142318,407$(1,070,406)$(1,406,555)$43,086,938Non-cash compensation  3,266   3,266Dividends declared and payable     (1,315,445)(1,315,445)Net income.....1,409,0531,409,053Balance, June 30, 202411,757,058$11,757$45,555,408318,407$(1,070,406)$(1,312,947)$43,183,812 FOR THE SIX MONTHS ENDED JUNE 30, 2025  Common SharesAdditional Paid in CapitalTreasury StockAccumulated DeficitTotals SharesAmount SharesCost  Balance, January 1, 202511,757,058$11,757$45,561,941318,407$(1,070,406)$(1,238,165)$ 43,265,127Non-cash compensation  6,532   6,532Dividends paid     (1,315,445)(1,315,445)Dividends declared and payable     (1,315,445)(1,315,445)Net income.....2,786,1022,786,102Balance, June 30, 202511,757,058$11,757$45,568,473318,407$(1,070,406)$(1,082,953)$43,426,871 FOR THE SIX MONTHS ENDED JUNE 30, 2024  Common SharesAdditional Paidin CapitalTreasury StockAccumulated DeficitTotals SharesAmount SharesCost  Balance, January 1, 202411,757,058$11,757$45,548,876316,407$(1,060,606)$(1,567,321)$42,932,706Purchase of treasury shares   2,000(9,800) (9,800)Non-cash compensation  6,532   6,532Dividends paid     (1,315,445)(1,315,445)Dividends declared and payable     (1,315,445)(1,315,445)Net income.....2,885,2642,885,264Balance, June 30, 202411,757,058$11,757$45,555,408318,407$(1,070,406)$(1,312,947)$43,183,812 MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)   Six Months Ended June 30,    2025    2024 Cash flows from operating activities:    Net income $2,786,102  $2,885,264 Adjustments to reconcile net income to net cash provided by operating activities -    Amortization of deferred financing costs  44,473   44,191 Adjustment to right-of-use asset - operating lease and liability  (831)  190 Depreciation  2,790   2,209 Non-cash compensation expense  6,532   6,532 Changes in operating assets and liabilities:    Interest and other fees receivable on loans  (369,307)  (315,399)Other assets  (93,403)  (71,703)Accounts payable and accrued expenses  (33,614)  (53,044)Deferred origination and other fees  64,338   (72,992)Net cash provided by operating activities  2,407,080   2,425,248      Cash flows from investing activities:    Issuance of short-term loans  (23,482,540)  (19,455,000)Collections received from loans  23,619,317   25,866,190 Purchase of fixed assets  (418)  (1,191)Net cash provided by investing activities  136,359   6,409,999      Cash flows from financing activities:    Repayment of line of credit  (26,365,153)  (27,543,007)Proceeds from line of credit  26,460,484   19,736,179 Dividends paid  (2,630,890)  (2,602,518)Purchase of treasury shares  ---   (9,800)Deferred financing costs incurred  ---   (2,167)Net cash used in financing activities  (2,535,559)  (10,421,313)     Net increase (decrease) in cash                  7,880                   (1,586,066)Cash and restricted cash, beginning of period(1)  201,762   1,691,995 Cash and restricted cash, end of period(2) $         209,642  $         105,929      Supplemental Disclosure of Cash Flow Information:    Cash paid during the period for taxes $1,210  $650 Cash paid during the period for interest $903,251  $1,297,587 Cash paid during the period for operating leases $31,982  $32,208 Supplemental Schedule of Noncash Financing Activities:    Dividend declared and payable $1,315,445  $1,315,445      Supplemental Schedule of Noncash Operating and Investing Activities:    Reduction in interest receivable in connection with the increase in loans receivable $13,122  $222,520  (1) At December 31, 2024 and 2023, cash and restricted cash included $23,750 and $1,587,773, respectively, of restricted cash. (2) At June 30, 2025, cash and restricted cash included $875 of restricted cash. SOURCE: Manhattan Bridge Capital, Inc.

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