Great Neck, N.Y. March 11, 2022 / GLOBE Newswire – Manhattan Bridge Capital, Inc. (NASDAQ: LOAN) announced today that net income for the year ended December 31, 2021 was approximately $4,423,000, or $0.42 per share (based on approximately 10.5 million weighted-average outstanding common shares), versus approximately $4,229,000, or $0.44 per share (based on approximately 9.6 million weighted-average outstanding common shares) for the year ended December 31, 2020, an increase in net income of $194,000, or 4.6%. This increase is primarily attributable to decreases in interest and payroll expenses, offset by a decrease in revenue.

Total revenue for the year ended December 31, 2021 was approximately $6,808,000, compared to approximately $7,006,000 for the year ended December 31, 2020, a decrease of $198,000, or 2.8%. 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. In 2021, approximately $5,609,000 of the Company’s revenue represents interest income on secured, real estate loans that we offer to small businesses compared to approximately $5,989,000 in 2020, and approximately $1,199,000 represents origination fees on such loans, compared to approximately $1,018,000 in 2020. 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, 2021 were approximately $2,402,000 compared to approximately $2,796,000 for the year ended December 31, 2020, a decrease of $394,000, or 14.1%. The decrease in operating costs and expenses was primarily attributable to decreased interest expense due to lower LIBOR rates as well as a reduced outstanding credit line balance resulting from the use of net proceeds from a public offering of the Company’s common stock in July 2021, an annual bonus paid to the Company’s Chief Executive Officer in 2020, which was not repeated in 2021, and a voluntary waiver from the Company’s Chief Executive Officer forgoing his base salary for the months of October, November and December 2021.

As of December 31, 2021, total shareholders' equity was approximately $43,386,000, compared to approximately $31,964,000 as of December 31, 2020.

Assaf Ran, Chairman of the Board and CEO, stated, “2021 was an interesting year -- it started with extreme uncertainty, followed by enormous optimism and ended with flourishing real estate markets stimulated by plenty of cash all around. During the year, we had to adjust the terms of loans we made to borrowers to stay in-line with market standards. In July 2021, we completed a successful share offering at $7.20 per share, adding approximately $13 million to our equity, in order to secure future growth. It took us approximately six months to deploy the new funds raised in the public offering, so I believe that the impact of the offering on our earnings per share (EPS) will show in the first quarter of 2022,” 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 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 we discuss the state of the real estate markets, the belief that the impact of the public offering on our EPS will show in the first quarter of 2022, we are 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 and (ix) if the effect of the COVID-19 pandemic on our business is greater than anticipated. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 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.