Manhattan Bridge Capital's Q3 Net Income Dips 14% Amid Loan Portfolio Shrink

TL;DR

**LOAN's shrinking loan book and declining profits signal a tough quarter, making its credit line renewal a must-watch for investors.**

AI Summary

MANHATTAN BRIDGE CAPITAL, INC. (LOAN) reported a decrease in net income for the three and nine months ended September 30, 2025. For the three months, net income was $1,202,180, down from $1,399,286 in the prior year, a 14.1% decrease. For the nine months, net income was $3,988,282, a 6.9% decrease from $4,284,550 in the same period of 2024. Total revenue also declined, falling to $2,035,753 for the three months (down 11.9%) and $6,664,702 for the nine months (down 9.0%). This was primarily driven by a reduction in interest income from loans, which decreased by $182,580 for the quarter and $624,437 for the nine-month period. Loans receivable, net, decreased from $65,405,731 at December 31, 2024, to $57,961,155 at September 30, 2025, representing an 11.4% reduction in the loan portfolio. The company's line of credit decreased significantly from $16,427,874 to $9,049,624, a 44.9% reduction, indicating a deleveraging strategy or reduced borrowing needs. Despite the revenue and income declines, total stockholders' equity slightly increased to $43,316,872 from $43,265,127 at year-end 2024.

Why It Matters

This filing reveals a contraction in LOAN's core lending business, with both revenue and net income declining. For investors, the 11.4% reduction in loans receivable and the 44.9% decrease in the line of credit suggest a more conservative lending environment or reduced demand for their 'hard money' loans, potentially impacting future growth. Employees might face less aggressive expansion plans, while customers (real estate investors) could find less capital available from LOAN. In a competitive market for short-term real estate financing, this could signal a loss of market share or a strategic pivot, making LOAN's ability to extend its $32.5 million Webster Credit Line by February 28, 2026, a critical factor for its operational stability.

Risk Assessment

Risk Level: medium — The company faces medium risk due to declining revenue and net income, with interest income from loans down $624,437 for the nine months ended September 30, 2025, compared to 2024. A significant risk is the upcoming expiration of the $32.5 million Webster Credit Line on February 28, 2026, which is crucial for its loan origination activities, as stated in the forward-looking statements.

Analyst Insight

Investors should monitor the renewal of the Webster Credit Line, set to expire on February 28, 2026, as its successful extension is vital for LOAN's liquidity and future loan origination capacity. Given the declining loan portfolio and net income, a cautious approach is warranted until there's clear evidence of stabilization or growth in lending activities and successful credit line renegotiation.

Financial Highlights

revenue

$6,664,702

net Income

$3,988,282

revenue Growth

-9.0%

Revenue Breakdown

Key Numbers

• $1,202,180 — Net income for Q3 2025 (Decreased from $1,399,286 in Q3 2024)
• $3,988,282 — Net income for nine months ended Sep 30, 2025 (Decreased from $4,284,550 in the same period of 2024)
• $57,961,155 — Loans receivable, net (As of September 30, 2025, down from $65,405,731 at Dec 31, 2024)
• $9,049,624 — Line of credit balance (As of September 30, 2025, down from $16,427,874 at Dec 31, 2024)
• $32.5 million — Webster Credit Line aggregate amount (Expires February 28, 2026)
• 11,438,651 — Common shares outstanding (As of October 24, 2025)
• $6,234,500 — Concentration of loans to three entities (10.7% of loan portfolio as of September 30, 2025)
• 7.8% — Interest rate on Webster Credit Line (As of September 30, 2025, including 0.5% agency fee)

Key Players & Entities

• MANHATTAN BRIDGE CAPITAL, INC. (company) — Registrant
• LOAN (company) — Ticker symbol
• Webster Business Credit Corporation (company) — Lender for credit line
• Flushing Bank (company) — Lender for credit line
• Mizrahi Tefahot Bank Ltd (company) — Lender for credit line
• MBC Funding II Corp. (company) — Wholly-owned subsidiary
• Mr. Ran (person) — Individual mentioned in credit line covenants
• Nasdaq Capital Market (regulator) — Exchange where common shares are registered
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Declining Loan Portfolio [high — financial]: The company's loans receivable, net, decreased by 11.4% from $65,405,731 at December 31, 2024, to $57,961,155 at September 30, 2025. This reduction in the core asset base directly impacts revenue generation.
• Reduced Interest Income [high — financial]: Total revenue declined 9.0% for the nine months ended September 30, 2025, to $6,664,702, primarily due to a $624,437 decrease in interest income from loans. This indicates a shrinking or less profitable loan book.
• Significant Line of Credit Reduction [medium — financial]: The company's line of credit balance decreased by 44.9% from $16,427,874 to $9,049,624 as of September 30, 2025. This could signal a deleveraging strategy or reduced access to funding, potentially limiting future growth.
• Loan Concentration Risk [medium — financial]: A significant portion of the loan portfolio, 10.7% ($6,234,500), is concentrated with three entities as of September 30, 2025. Default by any of these major borrowers could have a material adverse impact.
• Interest Rate Sensitivity [low — market]: The company's Webster Credit Line has an interest rate of 7.8% as of September 30, 2025. Fluctuations in market interest rates could impact borrowing costs and profitability.

Industry Context

Manhattan Bridge Capital operates in the real estate lending sector, specifically focusing on short-term bridge loans. This industry is sensitive to interest rate changes and economic cycles. Competition often comes from other private lenders and traditional financial institutions offering similar short-term financing solutions.

Regulatory Implications

As a lender, the company is subject to various financial regulations concerning loan origination, servicing, and capital requirements. Changes in lending standards or increased regulatory scrutiny could impact operations and profitability.

What Investors Should Do

1. Monitor loan origination and repayment trends.
2. Assess the impact of the reduced line of credit.
3. Evaluate the loan concentration risk.
4. Analyze the upcoming credit line expiration.

Key Dates

• 2025-09-30: End of third quarter 2025 — Reporting period for the 10-Q, showing declines in net income, revenue, and loan portfolio size.
• 2025-10-24: Common shares outstanding reported — Provides the number of shares (11,438,651) for per-share calculations and market capitalization.
• 2026-02-28: Webster Credit Line expiration — The $32.5 million credit line expires, requiring refinancing or repayment, which could impact liquidity and leverage.

Glossary

Loans receivable, net

The total amount of money lent out by the company that is expected to be repaid, minus any allowances for potential uncollectible loans. (Represents the company's primary asset and revenue-generating source. Its decrease indicates a shrinking business or a strategic reduction.)

Line of credit

A flexible loan from a financial institution that allows a borrower to draw funds up to a certain limit, repay them, and then borrow them again. (Indicates the company's access to short-term funding. A significant reduction suggests deleveraging or reduced operational needs.)

Stockholders' equity

The residual interest in the assets of an entity after deducting all its liabilities. It represents the net worth of the company. (A slight increase despite declining income suggests retained earnings or other equity adjustments are offsetting operational performance.)

Year-Over-Year Comparison

Compared to the prior year, Manhattan Bridge Capital, Inc. has experienced a notable downturn. Revenue for the nine months ended September 30, 2025, decreased by 9.0% to $6,664,702, driven by a 11.4% reduction in loans receivable. Net income also fell by 6.9% to $3,988,282. While total stockholders' equity saw a marginal increase, the shrinking loan portfolio and reduced interest income present a bearish outlook.

Key Financial Figures

• $20 million — r. Further, the Company may issue up to $20 million in bonds through its subsidiary, of whi
• $10 million — its subsidiary, of which not more than $10 million of such bonds may be secured by mortgag
• $1,000,000 — such guaranty not to exceed the sum of $1,000,000 plus any costs relating to the enforcem

Filing Documents

• form10-q.htm (10-Q) — 463KB
• ex31-1.htm (EX-31.1) — 15KB
• ex31-2.htm (EX-31.2) — 15KB
• ex32-1.htm (EX-32.1) — 5KB
• ex32-2.htm (EX-32.2) — 5KB
• 0001493152-25-019314.txt ( ) — 2550KB
• loan-20250930.xsd (EX-101.SCH) — 24KB
• loan-20250930_cal.xml (EX-101.CAL) — 37KB
• loan-20250930_def.xml (EX-101.DEF) — 70KB
• loan-20250930_lab.xml (EX-101.LAB) — 198KB
• loan-20250930_pre.xml (EX-101.PRE) — 144KB
• form10-q_htm.xml (XML) — 216KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 14 Item 4.

Controls and Procedures

Controls and Procedures 14 Part II OTHER INFORMATION 14 Item 6. Exhibits 14

SIGNATURES

SIGNATURES 15 EXHIBITS Forward Looking Statements This report contains forward-looking statements within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by the words "believe," "expect," "intend," "estimate" and similar expressions. Those statements appear in a number of places in this report and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial condition and results of operations and our business and growth strategies. These forward-looking projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as "Cautionary Statements"), 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 ext

View Full Filing

View this 10-Q filing on SEC EDGAR