Manhattan Bridge Capital Q2 Earnings Dip 18% as Competition Squeezes Margins; $935K Loan Default Emerges

summarizeSummary

Manhattan Bridge Capital reported an 18% drop in Q2 net income to $1.15M as competition compressed lending margins. A $935K loan default emerged, but credit facilities were extended, providing funding stability.

check_boxKey Events · Earnings and Guidance · LOAN

• Q2 Earnings Decline

  Net income fell 18.4% YoY to $1.15M ($0.10/share) on revenue of $2.05M, down 13.2%, as competition drove lower interest rates and origination fees.

• Loan Default Emerges

  A borrower with a $935K principal balance secured by two Florida properties became delinquent; the company has engaged foreclosure counsel but recorded no credit loss allowance, citing collateral value.

• Credit Facilities Extended

  The $32.5M Webster Credit Line maturity was extended to February 2029 with modified portfolio limits; the $10M Valley Credit Line was amended to add a $150K ACH sublimit and adjust the Fixed Charge Coverage Ratio definition.

• Dividend Maintained

  A $0.11 per share quarterly dividend ($1.26M total) was paid on July 15, 2026, consistent with prior quarters.

auto_awesomeAnalysis · LOAN · Real Estate & Construction

Net income fell 18.4% year-over-year to $1.15 million, or $0.10 per share, as increased competition forced lower interest rates and origination fees. Revenue dropped 13.2% despite higher loan volume, and the company granted $85,000 in discretionary credits to borrowers. A new $935,000 loan default in Florida adds credit risk, though management believes collateral value exceeds the balance. On the positive side, the Webster Credit Line was extended to 2029, and the Valley Credit Line was amended to add an ACH sublimit, providing operational flexibility. The stock trades near its 52-week low of $4.10, reflecting pressure on the hard-money lending model.