WEB NEWS Deal Flow
LONG ISLAND, N.Y., Dec. 16, 2013 (GLOBE NEWSWIRE ) -- Manhattan Bridge Capital, Inc. (Nasdaq:LOAN ) announced today that its Revolving Line of Credit with Sterling National Bank has been increased to up to $7 million, $2 million more than the previous limit. The terms of the increased line are similar to the terms of the original line established on May 2, 2012, which currently provides for an interest rate of 6% per year.
Assaf Ran, Chairman of the Board and CEO stated, "Our strong relationship with Sterling National Bank is a major asset to the Company. We are fortunate to have Sterling's trust and support, and are making sure to accommodate Sterling's expectations from the relationship."
Comments & Business Outlook
Third Quarter 2013 Results
Total revenues for the three month period ended September 30, 2013 were approximately $585,000 compared to approximately $491,000 for the three month period ended September 30, 2012, an increase of $94,000 or 19.1%.
Net income for the three month period ended September 30, 2013 was $0.05 per basic and diluted share (based on 4.263 million shares and 4.288 million shares, respectively), or $193,921, versus net income of $0.04 per basic and diluted share (based on 4.324 million shares and 4.327 million shares, respectively) or $161,600 for the three month period ended September 30, 2012, an increase of approximately $32,000.
Assaf Ran, Chairman of the Board and CEO stated, "The results of the third quarter demonstrate an all-time record of revenue and net earnings for our lending operations, while we maintain a portfolio of performing loans which had never experienced a default."
"As the marketplace recovers and in some cases even exceeds the pre-2008 crisis levels, we enhance our risk control measures even more." added Mr. Ran.
Deal Flow
On May 2, 2012, the Company entered into a one-year revolving Line of Credit Agreement with Sterling National Bank pursuant to which the Bank agreed to advance up to $3.5 million (the “Sterling Credit Line”) against assignments of mortgages and other collateral. The Sterling Credit Line was conditioned on an unlimited personal guarantee from Assaf Ran, the Company’s CEO, and requires the maintenance of certain non-financial covenants including limitations on the percentage of loans outstanding in excess of one year, loans made to affiliated groups and the extent of construction loans made by the Company. The interest rate on the Sterling Credit Line is 2% in excess of the Wall Street Journal prime rate (3.25% at March 31, 2013), but in no event less than 6%, per annum, on the money in use. Total initiation costs for the Sterling Credit Line were approximately $16,000. These costs are being amortized over one year, using the straight-line method. The amortization costs for the three month period ended March 31, 2013 were $4,006.
On January 31, 2013, the Company entered into an amendment to the Line of Credit Agreement with Sterling National Bank to increase the Sterling Credit Line from $3,500,000 to $5,000,000 , under the same terms as the original line of credit (the “Amendment”). In connection with the Amendment, Mr. Ran agreed to increase his personal guaranty to $5,000,000 . At March 31, 2013, the outstanding balance of the Sterling Credit Line was $2,700,000.
Comments & Business Outlook
First Quarter 2013 Results
Total revenues were approximately $534,000 compared to approximately $392,000 for the same period 2012, an increase of $142,000 or 36.2%.
Net income was $0.04 per basic and diluted share , versus net income of $0.03 per basic and diluted share for the same period 2012.
Assaf Ran, Chairman of the Board and CEO, stated, "The first quarter results represent once again our constant and safe pattern of growth. During that period our line of credit increased to $5,000,000, an increase that will secure further growth."
