Revenue Increases by 28.5% to Approximately $2.9 Million

Net Income Increases by 149.6 % to Approximately $1.455 Million

LONG ISLAND, N.Y., March 23, 2015 (GLOBE NEWSWIRE) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN) announced today that net income for the year ended December 31, 2014 was $0.29 per share or approximately $1,455,000, versus $0.14 per share, or approximately $583,000 for the year ended December 31, 2013. This increase in net income was mainly due to an increase in operating income as a result of increased lending activity and minimal income tax expense for 2014 as a result of the Company's intention to elect REIT status for 2014.

Total revenue for the year ended December 31, 2014 was approximately $2,904,000 compared to approximately $2,260,000 for the year ended December 31, 2013, an increase of $644,000 or 28.5%. The increase in revenue represents an increase in lending operations. In 2014, approximately $2,401,000 of the Company's revenue represents interest income on secured, commercial loans that the Company offers to small businesses compared to approximately $1,858,000 in 2013, and approximately $503,000 represents origination fees on such loans compared to approximately $402,000 in 2013.

Total operating costs and expenses for the year ended December 31, 2014 were approximately $1,443,000 compared to approximately $1,282,000 for the year ended December 31, 2013, an increase of $161,000 or 12.6%. This increase in operating costs and expenses is primarily attributable to an increase in interest and amortization of debt service costs of approximately $121,000, which is primarily attributable to the Company's use of a line of credit in order to increase its ability to make loans.

As of December 31, 2014 total shareholders' equity was approximately $13,866,000 compared to approximately $8,893,000 as of December 31, 2013, an increase of $4,973,000.

In July 2014, we completed a public offering in which we raised net proceeds of approximately $4.3 million. As a result of the offering, we satisfy all of the requirements to be taxed as a REIT and intend to elect REIT status beginning with 2014.

In February 2015, we obtained a three-year $14 million revolving line of credit with Webster Business Credit Corporation, to replace our $7.7 million credit facility with Sterling National Bank.

Assaf Ran, Chairman of the Board and CEO, stated, "2014 was a year of major milestones for the Company. Not only did we continue our organic growth, but we also increased our line of credit, completed a stock offering and met the requirements to qualify the Company as a REIT. Due to these achievements, the Company paid $0.07 per share as cash dividends for the second and the third quarters, and $0.08 per share for the last quarter of 2014 to its shareholders."

"Due to our disciplined underwriting procedures, we have gone through one more year without a default or delinquency," 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. We operate the web site: http://www.manhattanbridgecapital.com

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 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 (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i)we may not qualify as a REIT; (ii) we have no operating history as a REIT;(iii) our loan origination activities, revenues and profits are limited by available funds (iv)we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (v) our chief executive officer is critical to our business and our future success may depend on our ability to retain him; (vi) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (vii) we may be subject to "lender liability" claims; (viii) our loan portfolio is illiquid; (ix) our due diligence may not uncover all of a borrower's liabilities or other risks to its business; (x) borrower concentration could lead to significant losses; (xi) our management has no experience managing a REIT; and (xii) 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. The accompanying information contained in this report, including the information set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations", identifies important factors that could cause such differences. These forward-looking statements speak only as of the date of this report, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2014 and 2013  
    Assets 2014   2013  
Current assets:    
Cash and cash equivalents $ 47,676 $ 1,021,023
Short term loans receivable 19,138,426 10,697,950
Interest receivable on loans 213,766 171,483
Other current assets 26,995 18,540
Total current assets 19,426,863 11,908,996
     
Investment in real estate --- 146,821
Long term loans receivable 4,894,050 3,997,000
Property and equipment, net  19,088 ---
Security deposit 6,816 6,637
Investment in privately held company 65,000 65,000
Deferred financing costs 32,500 ---
     
Total assets $ 24,444,317 $ 16,124,454
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Short term loans $ 2,469,465 $ 1,319,465
Line of credit 7,700,000 5,350,000
Accounts payable and accrued expenses 163,622 57,066
Deferred origination fees 244,776 132,017
Income taxes payable --- 373,219
Total liabilities, all current 10,577,863 7,231,767
  Commitments and contingencies    
Stockholders' equity:    
Preferred shares -- $.01 par value; 5,000,000 shares authorized; no shares issued --- ---
Common shares -- $.001 par value; 25,000,000 authorized; 6,260,689 and 4,433,190 issued; 6,083,689 and 4,256,190 outstanding 6,260 4,433
Additional paid-in capital 14,116,183 9,745,249
Treasury stock, at cost – 177,000 (369,335) (369,335)
Retained earnings (Accumulated deficit) 113,346 (487,660)
Total stockholders' equity 13,866,454 8,892,687
  Total liabilities and stockholders' equity   $ 24,444,317   $ 16,124,454
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED December 31, 2014 and 2013
    2014     2013  
Interest income from loans $ 2,401,150 $ 1,858,033
Origination fees 502,515 401,514
Total Revenue 2,903,665 2,259,547
     
Operating costs and expenses:    
Interest and amortization of debt service costs 563,368 442,661
Referral fees 2,244 1,679
General and administrative expenses 876,906 837,788
Total operating costs and expenses 1,442,518 1,282,128
     
Income from operations 1,461,147 977,419
     
Other income 21,197 27,548
Loss on write-down of investment in privately held company --- (35,000)
Total other income (loss), net 21,197 (7,452)
     
Income before income tax expense 1,482,344 969,967
Income tax expense  (27,839)  (387,000)
Net income $ 1,454,505 $ 582,967
     
Basic and diluted net income per common share outstanding:    
--Basic $0.29 $0.14
--Diluted $0.29 $0.14
Weighted average number of common shares outstanding    
--Basic 5,028,645 4,269,169
--Diluted 5,058,421 4,289,818
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED December 31, 2014 and 2013
  Common Stock Additional Paid-in Capital Treasury Stock Accumulated Deficit / Retained Earnings Totals
           
  Shares Amount   Shares Cost    
Balance, January 1, 2013 4,405,190 $4,405 $9,687,159 107,131 $(269,972) $(942,607) $8,478,985
Non cash compensation     35,578        35,578
Exercise of stock options  28,000  28 22,512        22,540
Purchase of treasury shares       69,869 (99,363)    (99,363)
Dividends paid           (128,020)  (128,020)
Net income for the year ended December 31, 2013           582,967 582,967
Balance, December 31, 2013 4,433,190 4,433 9,745,249 177,000 (369,335) (487,660)  8,892,687
Non cash compensation      28,767        28,767
Exercise of stock options  66,887  67  55,163        55,230
Exercise of warrants  6,226  6  (6)        0
Public offering 1,754,386 1,754  4,287,010        4,288,764
Dividends paid            (853,499)  (853,499)
Net income for the year ended December 31, 2014            1,454,505  1,454,505
Balance, December 31, 2014 6,260,689 $6,260 $14,116,183 177,000 $(369,335) $113,346  $13,866,454
MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED December 31, 2014 and 2013
  2014 2013
Cash flows from operating activities:      
Net income $ 1,454,505 $ 582,967
Adjustments to reconcile net income to net cash provided by operating activities --    
Amortization of deferred financing costs --- 41,735
Non cash compensation expense 28,767 35,578
Loss on write-down of investment in privately held company  ---  35,000
Changes in operating assets and liabilities    
Interest receivable on loans (42,283) (11,141)
Other current and non current assets (8,634) 217
Accounts payable and accrued expenses 106,556 (13,337)
Deferred origination fees 112,758 9,775
Income taxes payable (373,219) 104,963
Net cash provided by operating activities 1,278,450 785,757
     
Cash flows from investing activities:    
Issuance of short term loans  (22,585,990) (15,159,450)
Collections received from loans  13,248,464  14,088,866
Proceeds from exercise of option 146,821 ---
Purchase of fixed assets  (19,088)  ---
Net cash used in investing activities (9,209,793) (1,070,584)
  Cash flows from financing activities:    
Proceeds from loans and line of credit, net 3,500,000 1,770,000
Purchase of treasury shares --- (99,363)
Repayment of senior secured notes --- (500,000)
Proceeds from exercise of stock options 55,230 22,540
Proceeds from public offering, net 4,288,765 ---
Dividends paid (853,499) (128,020)
Deferred financing costs incurred (32,500) ---
Net cash provided by financing activities 6,957,996 1,065,157
     
Net (decrease) increase in cash and cash equivalents (973,347) 780,330
     
Cash and cash equivalents, beginning of year 1,021,023 240,693
     
Cash and cash equivalents, end of year $ 47,676 $ 1,021,023
     
Supplemental Cash Flow Information:    
Taxes paid during the year $ 416,083 $ 283,084
Interest paid during the year $ 563,368 $ 400,925
CONTACT: Assaf Ran, CEO         Vanessa Kao, CFO         (516) 444-3400