Manhattan Bridge Capital, Inc. Reports Results for 2020 Nasdaq:LOAN

GREAT NECK, N.Y., March 11, 2021 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the year ended December 31, 2020 was approximately $4,229,000, or $0.44 per share (based on approximately 9.6 million weighted-average outstanding common shares), versus approximately $4,495,000, or $0.47 per share (based on approximately 9.7 million weighted-average outstanding common shares) for the year ended December 31, 2019, a decrease of $266,000, or 5.9%. This decrease is primarily attributable to a decrease in revenue, partially offset by a decrease in interest expense.

Total revenue for the year ended December 31, 2020 was approximately $7,006,000 compared to approximately $7,340,000 for the year ended December 31, 2019, a decrease of $334,000, or 4.6%. The decrease in revenue was primarily attributable to lower interest rates and origination fees charged on loans due to market conditions and intense competition from other lenders, as well as lower demand for new loans resulting from the COVID-19 pandemic. In 2020, approximately $5,989,000 of our revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $6,186,000 in 2019, and approximately $1,018,000 represents origination fees on such loans, compared to approximately $1,154,000 in 2019. The loans are principally secured by collateral consisting of real estate and, generally, accompanied by personal guarantees from the principals of the borrowers.

Total operating costs and expenses for the year ended December 31, 2020 were approximately $2,796,000 compared to approximately $2,842,000 for the year ended December 31, 2019, a decrease of $46,000 or 1.6%. The decrease in operating costs and expenses is primarily attributable to decreased interest expense due to lower LIBOR rates and decreases in travel expense, advertising fees and appraisal fees, offset by increases in payroll expenses and compensation to members of our board of directors, as well as an annual bonus paid to officers in 2020 and a voluntary waiver from the Company’s CEO forgoing his base salary for the months of November and December 2019.

As of December 31, 2020, total shareholders’ equity was approximately $31,964,000 compared to approximately $31,943,000 as of December 31, 2019.

Assaf Ran, Chairman of the Board and CEO, stated, “I’m pleased that we have managed to continue our track record of zero defaults since inception through another major crisis. During March and April of 2020, the marketplace experienced panic and hysteria. Yet, we kept our portfolio under control, we paid dividends on a regular schedule and we instituted another stock buy-back program. I believe that our performance during the challenges related to COVID-19 during 2020 demonstrates responsible underwriting, lower risk versus many of our peers and management’s commitment to provide shareholder value even in rough times,” 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.

Forward Looking Statements

This press release and the statements of our 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,”…