Blueprint Capital Earns $514,801 in 2Q11 and $894,884 YTD; Total Assets Increase 170% From a Year Ago

SEATTLE, July 27, 2011 (GLOBE NEWSWIRE) -- Blueprint Capital, LLC, the leading residential construction lender in Seattle, Washington, today reported its earnings increased more than four-fold to $514,801 in the second quarter ended June 30, 2011 compared to $115,615 in the like quarter a year ago. Blueprint earned $380,083 in the first quarter this year. For the six months ended June 30, 2011, net income increased seven-fold to $894,884, from $116,992 in the like period a year ago.  The Blueprint model of providing finance and development services for smart, smaller-scale construction projects within the city limits of Seattle continues to be highly successful for its member builders and investors. 

"Our year-to-date operating results have exceeded all of our expectations and demonstrate the continuing high demand for affordable new homes in Seattle. The average time on the market for our customers' homes is 20 days," said Dan Duffus, Co-founder and Chief Executive Officer. "Blueprint funded a total of 61 projects during the first six months of 2011 amounting to almost $27.0 million; we are having a great year."  Blueprint was the largest residential construction lender in Seattle for 2010 and is gearing up to remain the largest lender in 2011.

"According the Northwest Multiple Listing Service (NWMLS), 73 new detached single-family homes were sold in Seattle during the first six months of the year, and Blueprint member builders were responsible for building 26, or 36%, of these new homes," said Mark Knoll, Co-founder and Chief Financial Officer. "For homes sold within our target market, which ranges from $400,000 to $1.0 million, Blueprint builders built 20, representing 48% of the 42 sales during the first half of the year." 

"Blueprint is growing, and we continue to generate strong loan originations for our member builders and increase our earnings potential," added Knoll. "We play a major role in sourcing projects for our member builders. In fact, we provided development services for 68% of the loans we funded this quarter.  While loan growth is stagnant for many banks, we are filling a void by providing our member builders with competitive financing as well as value-added services. The value for our customers is remarkable and sets us apart from traditional banks." Blueprint's co-operative model requires member builders to make an equity investment in the company in order to secure financing and development services for their construction projects.

Second Quarter 2011 Highlights (at, or for the period ended June 30, 2011):

• Blueprint Capital generated a profit of $514,801; YTD profits totaled $894,884.
• Raised $2.9 million in new private equity capital; approximately the same as in the first quarter this year.
• Increased available debt capital by $8.4 million.
• Funded 31 loans for a total of $14.0 million.
• Return on average assets was 9.0% and return on average equity was 13.5%, on an annualized basis.
• Superior operating efficiencies with an efficiency ratio of 21.0%.
• Operating expense/average assets ratio improved to 2.4%, on an annualized basis.

At June 30, 2011, Blueprint held 81 loans in its $38.7 million portfolio, with 79% of that dollar figure dedicated to new home construction. 13% of the remaining portfolio is existing home rehabilitation and 8% is for land acquisition and development. By dollar amount, 70% of loans are secured by detached single family homes, 25% are secured by townhomes ranging from 2 to 8 units and 5% by land under development. 

Review of Balance Sheet and Operations

Blueprint's total assets reached $25.3 million at June 30, 2011, up 23% from $20.6 million at the end of the first quarter, and grew 170% from $9.3 million for the second quarter a year ago. Gross loans receivables were $38.7 million at June 30, 2011, up 148% from $15.6 million a year ago. Gross loans at the end of the first quarter totaled $29.3 million. At June 30, 2011, net loans, excluding unfunded commitments and deferred loan fees, grew 26% to $22.4 million compared to $17.9 million in the first quarter, and rose 197% from $7.5 million a year ago. 

Loans are Blueprint's primary investment and make up 90% of assets; there were no nonperforming loans at the end of June 30, 2011. Of the remaining assets, 7% are in cash which is used for working capital and security for bank lines of credit, and 3% represent interest in property held for development. Developed property is sold or held for income and security for bank lines of credit, and is not a significant part of Blueprint's investment strategy.

"We have a strong balance sheet with 67% equity to assets," said Knoll. "Our current debt ratio is 0.49 to 1 and our target going forward is 2.0 to 1. Consequently, we have the capacity to conservatively increase leverage which will increase our return on equity. Our strategy remains the same: to use any additional capital to grow our loan portfolio and increase market share." 

Net interest income increased 24% to $651,691 in the second quarter of 2011, from $524,768 in the preceding quarter and more than tripled from $164,274 from the second quarter a year ago. Year-to-date, net interest income was $1.2 million, up 529% from $187,104 for the first six months of 2010. Blueprint's return on average assets was 9.0% and return on average equity was 13.5% in the second quarter. 

The efficiency ratio, which measures overhead expense as a percent of revenue, declined to 21.0% from 27.6% in the immediate prior quarter. At June 30, 2011, members' equity was $16.9 million, up from $13.7 million at March 31, 2010, and $7.6 million a year ago. 

ABOUT BLUEPRINT CAPITAL, LLC

Blueprint Capital, a specialty finance company, is the leading residential construction lender in Seattle, Washington. Blueprint provides loans and development services to builders of smart, smaller-scale construction among Seattle's urban neighborhoods. Using a unique, co-operative business model, Blueprint pools the resources of builders, suppliers and community stakeholders enabling local builders to meet housing demand. In addition to financing, Blueprint provides its customers with design, permitting and marketing services including ready to build projects. Blueprint's goal is to continue expanding its builder and capital base along with an efficient operations platform. www.blueprintcap.com

Safe Harbor Statement

This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by Blueprint Capital, LLC. Blueprint Capital, LLC, is a private company and undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.