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

Rhea-AI Summary

Manhattan Bridge Capital (NASDAQ: LOAN) reported Q1 2025 financial results with net income of $1.37 million ($0.12 per share), down 7.0% from $1.48 million ($0.13 per share) in Q1 2024. Total revenues decreased 11.6% to $2.27 million from $2.57 million year-over-year.

The revenue decline was primarily due to lower interest income from reduced loans receivable. Interest income from secured commercial loans was $1.83 million compared to $2.14 million in Q1 2024, while origination fees were $440,000 versus $431,000. The company's total shareholders' equity stood at $43.33 million as of March 31, 2025.

Management noted that despite initial optimism in the real estate investor community, delays in interest rate reductions and global economic uncertainty have raised concerns about immediate market recovery. The company maintains its position through low leverage and strict underwriting practices.

Positive

• Maintained stable origination fees at $440,000 vs $431,000 year-over-year
• Strong balance sheet with $43.33 million in shareholders' equity
• Conservative business approach with low leverage and strict underwriting practices

Negative

• Net income decreased 7.0% to $1.37 million year-over-year
• Total revenue declined 11.6% to $2.27 million
• Interest income from loans decreased to $1.83 million from $2.14 million
• Reduced loans receivable indicating lower business volume

Insights

Financial Analyst

Manhattan Bridge Capital reported 7% lower earnings and 11.6% lower revenue year-over-year, reflecting shrinking loan portfolio amid real estate market uncertainty.

Manhattan Bridge Capital's Q1 2025 results reveal concerning financial trends with net income decreasing 7.0% to $1.37 million ($0.12 per share) compared to $1.48 million ($0.13 per share) in Q1 2024. More notably, total revenues dropped by 11.6% to $2.27 million from $2.57 million year-over-year.

The primary driver behind this revenue decline is reduced interest income from loans, which fell to $1.83 million from $2.14 million in the prior year period. This indicates a significant contraction in the company's loan portfolio volume. Origination fees remained relatively stable at $440,000 compared to $431,000 last year.

What's interesting is that while revenue declined by nearly 12%, net income fell by only 7%, suggesting some success in controlling operating expenses to partially offset the revenue shortfall. However, the shrinking loan book represents a fundamental challenge to the company's core business model.

The company maintains a solid equity foundation with approximately $43.33 million in total shareholders' equity, providing stability during uncertain market conditions. CEO Assaf Ran's comments indicate market headwinds related to delayed interest rate reductions and global economic uncertainty affecting real estate investor sentiment.

Manhattan Bridge Capital's business approach of secured commercial loans backed by real estate collateral and personal guarantees provides some protection against default risk. However, the declining loan portfolio suggests either reduced demand from qualified borrowers or more conservative lending criteria, both potentially limiting near-term growth opportunities.

The company appears to be prioritizing risk management through what the CEO describes as "low leverage, strict underwriting, and strong relationships with borrowers" rather than pursuing aggressive portfolio expansion in an uncertain environment. While this approach may constrain immediate growth, it could position the company better if real estate market conditions deteriorate further.

GREAT NECK, N.Y., April 24, 2025 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its net income for the three months ended March 31, 2025 was approximately $1,373,000, or $0.12 per share (based on approximately 11.4 million weighted-average outstanding common shares), compared to approximately $1,476,000, or $0.13 per share (based on approximately 11.4 million weighted-average outstanding common shares) for the three months ended March 31, 2024, a decrease of $103,000, or 7.0%. This decrease is primarily attributable to a decrease in interest income from loans, partially offset by a decrease in interest expense.

Total revenues for the three months ended March 31, 2025 were approximately $2,274,000 compared to approximately $2,573,000 for the three months ended March 31, 2024, a decrease of $299,000, or 11.6%. The decrease in revenue was primarily attributable to lower interest income, resulting from a reduction in loans receivable, period over period. For the three months ended March 31, 2025, approximately $1,834,000 of the Company’s revenue represents interest income on secured commercial loans that the Company offers to real estate investors, compared to approximately $2,142,000 for the same period in 2024, and approximately $440,000 and $431,000, respectively, represent 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.

As of March 31, 2025, total shareholders' equity was approximately $43,326,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “The first quarter of 2025 began with an optimistic consensus among the real estate investor community. However, due to the delays in the reduction of interest rates and global economic uncertainty, we now sense some concerns about the likelihood of an immediate recovery of the real estate market. Again, thanks to our low leverage, strict underwriting, and strong relationships with our borrowers, we believe that we remain well-positioned to navigate these challenges.”

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 its belief that it remains well-positioned to navigate market challenges, 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
Assets	March 31, 2025 (unaudited)			December 31, 2024                 (audited)
Loans receivable, net of deferred origination and other fees	$	63,672,278		$	65,405,731
Interest and other fees receivable on loans		1,618,826			1,521,033
Cash		201,363			178,012
Cash – restricted		21,769			23,750
Other assets		119,642			62,080
Right-of-use asset – operating lease, net		140,836			154,039
Deferred financing costs, net		12,706			16,171
Total assets	$	65,787,420		$	67,360,816

Liabilities and Stockholders’ Equity
Liabilities:
Line of credit	$	14,825,735		$	16,427,874
Senior secured notes (net of deferred financing costs of $78,214 and $96,985, respectively)		5,921,786			5,903,015
Accounts payable and accrued expenses		194,801			232,236
Operating lease liability		153,571			167,119
Loan holdback		50,000			50,000
Dividends payable		1,315,445			1,315,445
Total liabilities		22,461,338			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		45,565,207			45,561,941
Less: Treasury stock, at cost – 318,407 shares		(1,070,406)			(1,070,406)
Accumulated deficit		(1,180,476)			(1,238,165)
Total stockholders’ equity		43,326,082			43,265,127
Total liabilities and stockholders’ equity	$	65,787,420		$	67,360,816

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY  CONSOLIDATED STATEMENTS OF OPERATIONS  (unaudited)
	Three Months Ended March 31,
		2025		2024
Revenue:
Interest income from loans	$1,833,914		$2,142,487
Origination fees		439,799		430,591
Total revenue		2,273,713		2,573,078
Operating costs and expenses:
Interest and amortization of deferred financing costs		451,365		690,589
Referral fees		144		500
General and administrative expenses		453,570		410,278
Total operating costs and expenses		905,079		1,101,367
Income from operations		1,368,634		1,471,711
Other income		4,500		4,500
Net income	$1,373,134		$1,476,211
Basic and diluted net income per common share outstanding:
--Basic	$0.12		$0.13
--Diluted	$0.12		$0.13
Weighted average number of common shares outstanding:
--Basic		11,438,651		11,438,673
--Diluted		11,438,651		11,438,673

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited)
FOR THE THREE MONTHS ENDED MARCH 31, 2025
	Common Shares			Additional Paid-in Capital		Treasury Stock				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, January 1, 2025	11,757,058	$11,757		$45,561,941		318,407	$(1,070,406)			$(1,238,165)			$43,265,127
Non-cash compensation				3,266										3,266
Dividends declared and payable											(1,315,445)			(1,315,445)
Net income	.										1,373,134			1,373,134
Balance, March 31, 2025	11,757,058	$11,757		$45,565,207		318,407	$(1,070,406)			$(1,180,476)			$43,326,082

FOR THE THREE MONTHS ENDED MARCH 31, 2024
	Common Shares			Additional Paid-in Capital		Treasury Stock				Accumulated Deficit			Totals
	Shares	Amount				Shares	Cost
Balance, January 1, 2024	11,757,058	$11,757		$45,548,876		316,407	$(1,060,606)			$(1,567,321)			$42,932,706
Non-cash compensation				3,266									3,266
Purchase of treasury shares						2,000	(9,800)						(9,800)
Dividends declared and payable											(1,315,445)
Net income	.										1,476,211		1,476,211
Balance, March 31, 2024	11,757,058	$11,757		$45,552,142		318,407	$(1,070,406)			$(1,406,555)			$43,086,938

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	Three Months Ended March 31,
		2025		2024
Cash flows from operating activities:
Net income	$	1,373,134	$	1,476,211
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs		22,237		21,954
Adjustment to right-of-use asset - operating lease and liability		(345)		121
Depreciation		1,390		1,055
Non-cash compensation expense		3,266		3,266
Changes in operating assets and liabilities:
Interest and other fees receivable on loans		(110,915)		(231,202)
Other assets		(58,952)		(35,153)
Accounts payable and accrued expenses		(37,435)		(31,600)
Deferred origination and other fees		(11,437)		(63,996)
Net cash provided by operating activities		1,180,943		1,140,656
Cash flows from investing activities:
Issuance of short-term loans		(10,940,040)		(9,538,000)
Collections received from loans		12,698,051		10,102,525
Net cash provided by investing activities		1,758,011		564,525
Cash flows from financing activities:
Repayment of line of credit, net		(1,602,139)		(1,701,661)
Dividend paid		(1,315,445)		(1,287,073)
Purchase of treasury shares		---		(9,800
Net cash used in financing activities		(2,917,584)		(2,998,534)
Net increase (decrease) in cash		21,370		(1,293,353)
Cash and restricted cash, beginning of period(1)		201,762		1,691,995
Cash and restricted cash, end of period(2)	$	223,132	$	398,642

Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest	$	437,993	$	667,488
Cash paid during the period for operating leases	$	15,991	$	16,370
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	$	112,271

⁽¹⁾ At December 31, 2024 and 2023, cash and restricted cash included $23,750 and $1,587,773, respectively, of restricted cash.
⁽²⁾ At March 31, 2025 and 2024, cash and restricted cash included $21,769 and $311,545, respectively, of restricted cash.

SOURCE: Manhattan Bridge Capital, Inc.  

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400

FAQ

What caused Manhattan Bridge Capital (LOAN) earnings to decline in Q1 2025?

LOAN's earnings declined due to lower interest income from reduced loans receivable, resulting in an 11.6% decrease in total revenue and a 7.0% drop in net income compared to Q1 2024.

How much did Manhattan Bridge Capital (LOAN) earn per share in Q1 2025?

LOAN reported earnings of $0.12 per share in Q1 2025, compared to $0.13 per share in Q1 2024, based on approximately 11.4 million weighted-average outstanding common shares.

What is the current shareholders' equity for Manhattan Bridge Capital (LOAN)?

As of March 31, 2025, LOAN's total shareholders' equity was approximately $43.33 million.

How much interest income did Manhattan Bridge Capital (LOAN) generate from secured commercial loans in Q1 2025?

LOAN generated $1.83 million in interest income from secured commercial loans in Q1 2025, down from $2.14 million in Q1 2024.