Manhattan Bridge Capital, Inc. Reports Results for 2024

Rhea-AI Summary

Manhattan Bridge Capital (NASDAQ: LOAN) reported its 2024 financial results, showing a 2.1% increase in net income to $5.59 million ($0.49 per share) compared to $5.48 million ($0.48 per share) in 2023. Total revenue decreased by 1.1% to $9.69 million, primarily due to reduced loan originations and lower receivables.

Interest income from secured real estate loans increased to $8.05 million (2023: $7.98 million), while origination fees decreased to $1.64 million (2023: $1.82 million). Operating costs decreased by 5.5% to $4.12 million, mainly due to reduced borrowing costs and lower officer bonuses.

Total shareholders' equity grew to $43.27 million by December 31, 2024, up from $42.93 million in 2023. The company faced challenges from high interest rates affecting borrowers' liquidity and narrowing spreads between hard money and conventional bank lending rates.

Positive

• Net income increased 2.1% to $5.59 million
• Interest income from secured loans grew to $8.05 million
• Operating costs decreased 5.5% to $4.12 million
• Shareholders' equity increased to $43.27 million

Negative

• Total revenue declined 1.1% to $9.69 million
• Origination fees decreased to $1.64 million from $1.82 million
• Reduced loan originations due to market conditions
• Narrowing spread between hard money and conventional bank lending rates

Insights

Financial Analyst

Manhattan Bridge Capital's 2024 results demonstrate resilient performance amid challenging market conditions. The company posted a 2.1% increase in net income to $5.59 million ($0.49 per share) despite a slight revenue decline of 1.1%.

The revenue composition reveals important trends: while interest income from real estate loans increased to $8.05 million (up from $7.98 million), origination fees decreased to $1.64 million (from $1.82 million), indicating a slowdown in new loan originations. This suggests potential future growth constraints as fewer new loans enter the portfolio.

Management's cost discipline is particularly noteworthy, with operating expenses decreasing by 5.5% to $4.12 million. This efficiency helped offset revenue challenges and drove the bottom-line improvement. The company maintained strong capitalization with shareholders' equity of $43.27 million.

The CEO's candid characterization of 2024 as "risky and ultra challenging" reflects the reality facing real estate lenders in the high interest rate environment. With the spread between hard money lending rates and conventional bank rates narrowing, the company faces pressure on both loan volume and potentially on margins going forward. However, management's successful navigation through these challenges demonstrates operational strength and risk management capability.

GREAT NECK, N.Y., March 12, 2025 (GLOBE NEWSWIRE) --

Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that net income for the year ended December 31, 2024 was approximately $5,591,000, or $0.49 per share (based on approximately 11.4 million weighted-average outstanding common shares), versus approximately $5,476,000, or $0.48 per share (based on approximately 11.5 million weighted-average outstanding common shares) for the year ended December 31, 2023, an increase of $115,000, or 2.1%. This increase is primarily attributable to a decrease in interest expense, partially offset by a decrease in origination fees.

Total revenue for the year ended December 31, 2024, was approximately $9,689,000, compared to approximately $9,796,000 for the year ended December 31, 2023, a decrease of $107,000, or 1.1%. The decrease in revenue was due to a reduction in loans receivable, period over period, and reduced origination fees, which were impacted by a slowdown in new loan originations, partially offset by higher interest rates charged on the Company’s commercial loans. In 2024, approximately $8,047,000 of the Company’s revenue represents interest income on secured, real estate loans that the Company offers to real estate investors, compared to approximately $7,976,000 in 2023, and approximately $1,642,000 represents origination fees on such loans, compared to approximately $1,820,000 in 2023. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

Total operating costs and expenses for the year ended December 31, 2024 were approximately $4,115,000, compared to approximately $4,353,000 for the year ended December 31, 2023, a decrease of $238,000, or 5.5%. The decrease in operating costs and expenses was primarily attributable to a decrease in interest expense due to a reduction in amounts borrowed relating to the use of the Company’s credit line, and a reduction in the special bonus to its officers.

As of December 31, 2024, total shareholders' equity was approximately $43,265,000, compared to approximately $42,933,000 as of December 31, 2023.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “2024 was a risky and ultra challenging year for real estate lenders. The lingering high-interest rate environment weighs down on real estate investors' (our borrowers’) liquidity and profitability. Furthermore, the difference in interest rates between hard money lenders and conventional banks is not always significant enough to make refinancing a viable exit strategy for our loans.”

“During 2024, our underwriting and operational policies were tested like never before ­ and we passed. I hope for continuous passing and a smooth 2025,” added Mr. Ran.

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.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS December 31, 2024 and 2023
	2024		2023
Assets
Loans receivable	$  65,974,265		$  73,048,403
Interest and other fees receivable on loans	1,521,033		1,395,905
Cash	178,012		104,222
Cash - restricted	23,750		1,587,773
Other assets	62,080		63,636
Right-of-use asset - operating lease, net	154,039		207,364
Deferred financing costs, net	16,171		27,583
Total assets	$  67,929,350		$  76,434,886
Liabilities and Stockholders' Equity
Liabilities:
Line of credit	$  16,427,874		$  25,152,338
Senior secured notes (net of deferred financing costs of $96,985 and $172,069, respectively)	5,903,015		5,827,931
Deferred origination fees	568,534		719,019
Accounts payable and accrued expenses	232,236		295,292
Operating lease liability	167,119		220,527
Loan holdback	50,000		---
Dividends payable	1,315,445		1,287,073
Total liabilities	24,664,223		33,502,180
Commitments and contingencies
Stockholders' equity:
Preferred shares - $.01 par value; 5,000,000 shares authorized; none issued	---		---
Common shares - $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,438,651 and 11,440,651 outstanding, respectively	11,757		11,757
Additional paid-in capital	45,561,941		45,548,876
Less: Treasury stock, at cost - 318,407 and 316,407 shares	(1,070,406)		(1,060,606)
Accumulated deficit	(1,238,165)		(1,567,321)
Total stockholders' equity	43,265,127		42,932,706
Total liabilities and stockholders' equity	$  67,929,350		$  76,434,886

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED December 31, 2024 and 2023
		2024				2023
Revenue:
Interest income from loans	$ 8,046,560				$ 7,976,232
Origination fees		1,642,081				1,820,024
Total Revenue		9,688,641				9,796,256
Operating costs and expenses:
Interest and amortization of deferred financing costs		2,337,032				2,525,935
Referral fees		1,847				2,153
General and administrative expenses		1,776,176				1,825,227
Total operating costs and expenses		4,115,055				4,353,315
Income from operations		5,573,586				5,442,941
Other income		18,000				33,880
Income before income tax expense		5,591,586				5,476,821
Income tax expense		(650	)			(650	)
Net income	$ 5,590,936				$ 5,476,171
Basic and diluted net income per common share outstanding:
--Basic	$0.49				$0.48
--Diluted	$0.49				$0.48
Weighted average number of common shares outstanding
--Basic		11,438,656				11,469,741
--Diluted		11,438,656				11,469,741

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED December 31, 2024 and 2023
	Common Stock		Additional Paid-in Capital	Treasury Stock			Accumulated Deficit		Totals
	Shares	Amount		Shares	Cost
Balance, January 1, 2023	11,757,058	$11,757	$45,535,811	262,113	$(798,939	)	$(1,885,056	)	$42,863,573
Purchase of treasury shares				54,294	(261,667	)			(261,667	)
Non-cash compensation			13,065						13,065
Dividends paid							(3,871,363	)	(3,871,363	)
Dividends declared and payable							(1,287,073	)	(1,287,073	)
Net income for the year ended December 31, 2023	__________	__________	__________	__________	__________		5,476,171		5,476,171
Balance, December 31, 2023	11,757,058	11,757	45,548,876	316,407	(1,060,606	)	(1,567,321	)	42,932,706
Purchase of treasury shares				2,000	(9,800	)			(9,800	)
Non-cash compensation			13,065						13,065
Dividends paid							(3,946,335	)	(3,946,335	)
Dividends declared and payable							(1,315,445	)	(1,315,445	)
Net income for the year ended December 31, 2024	__________	__________	__________	__________	__________		5,590,936		5,590,936
Balance, December 31, 2024	11,757,058	$11,757	$45,561,941	318,407	$(1,070,406	)	$(1,238,165	)	$43,265,127

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED December 31, 2024 and 2023
		2024				2023
Cash flows from operating activities:
Net income	$	5,590,936			$	5,476,171
Adjustments to reconcile net income to net cash provided by operating activities -
Amortization of deferred financing costs		88,664				93,403
Depreciation		4,870				4,057
Non-cash compensation expense		13,065				13,065
Adjustment to right-of-use asset - operating lease and liability		(84	)			1,900
Changes in operating assets and liabilities:
Interest and other fees receivable on loans		(552,755	)			(245,868	)
Other assets		705				(3,042	)
Accounts payable and accrued expenses		(63,057	)			5,424
Deferred origination fees		(150,485	)			49,891
Net cash provided by operating activities		4,931,859				5,395,001
Cash flows from investing activities:
Issuance of short-term loans		(41,538,217	)			(56,087,911	)
Collections received from loans		49,089,982				57,736,436
Purchase of fixed assets		(4,018	)			(5,085	)
Net cash provided by investing activities		7,547,747				1,643,440
Cash flows from financing activities:
(Repayment of) proceeds from line of credit, net		(8,724,464	)			158,104
Dividends paid		(5,233,408	)			(5,308,231	)
Purchase of treasury shares		(9,800	)			(261,667	)
Deferred financing costs incurred		(2,167	)			(38,192	)
Net cash used in financing activities		(13,969,839	)			(5,449,986	)
Net (decrease) increase in cash and restricted cash		(1,490,233	)			1,588,455
Cash and restricted cash, beginning of year*		1,691,995				103,540
Cash and restricted cash, end of year*	$	201,762			$	1,691,995
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for taxes	$	650			$	650
Cash paid during the period for interest	$	2,323,520			$	2,423,838
Cash paid during the period for operating leases	$	63,084			$	64,055
Supplemental Schedule of Noncash Financing Activities: Dividend declared and payable	$	1,315,445			$	1,287,073
Loan holdback relating to mortgage receivable	$	50,000			$	---
Supplemental Schedule of Noncash Operating and Investing Activities:
Reduction in interest receivable in connection with the increase in loans receivable	$	427,627			$	213,465

* At December 31, 2024 and 2023, cash and restricted cash included $23,750 and $1,587,773, respectively, of restricted cash.

Contact:
Assaf Ran, CEO
Vanessa Kao, CFO
(516) 444-3400
SOURCE: Manhattan Bridge Capital, Inc.

FAQ

What was Manhattan Bridge Capital's (LOAN) net income for 2024?

LOAN reported net income of $5.59 million ($0.49 per share) for 2024, a 2.1% increase from $5.48 million in 2023.

How did LOAN's revenue performance change in 2024 compared to 2023?

Total revenue decreased by 1.1% to $9.69 million in 2024, down from $9.80 million in 2023, due to reduced loan originations.

What were the main challenges faced by Manhattan Bridge Capital (LOAN) in 2024?

LOAN faced challenges from high interest rates affecting borrowers' liquidity and reduced spread between hard money and conventional bank lending rates.

How much did LOAN's operating costs decrease in 2024?

Operating costs decreased by 5.5% to $4.12 million in 2024, down from $4.35 million in 2023.

What was LOAN's shareholders' equity as of December 31, 2024?

Total shareholders' equity was $43.27 million as of December 31, 2024, up from $42.93 million in 2023.