Blueprint Capital Reports Net Income of $647,827 in Third Quarter 2011; Earns $1.5 Million Year To Date as Loans More than Double

SEATTLE, Oct. 31, 2011 (GLOBE NEWSWIRE) -- Blueprint Capital, LLC, the leading residential construction lender in Seattle, Washington, today reported year-to-date earnings increased more than four-fold and surpassed the one million dollar threshold to $1.5 million, compared to $370,344 in the like period a year ago. For the third quarter ended September 30, 2011, net income increased 26% to $647,827, compared to $514,801 in the second quarter and increased 156% compared to $253,351 earned in the third quarter 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. 

"We continue to see impressive operating results: This quarter marks our strongest earnings yet, both in the third quarter and for the first nine months of the year," said Dan Duffus, Co-founder and Chief Executive Officer. "All leading indicators for generating strong loan originations for our member builders remain positive, with a robust pipeline and solid momentum as we enter the fourth quarter. Growing our available capital to meet demand will be our biggest challenge." Blueprint funded 41 loans in the third quarter, totaling $20.4 million; the total number of loans funded during the first nine months of 2011 was 102, for $47.4 million.  

"Seattle offers exceptional in-fill opportunities for residential development projects, with quality new homes in Seattle continuing to be in high demand," said Mark Knoll, Co-founder and Chief Financial Officer. "Traditional banks are no longer meeting the demand for builder financing due to tighter regulatory restrictions and trouble managing complex loans. We see this trend continuing as banks deploy more capital through specialty finance companies like Blueprint rather than directly to builders." Blueprint maintains a capital model in which private equity capital is conservatively leveraged with credit facilities from local banks to increase lending capacity. In addition to financing, Blueprint adds value for customers by providing development services and helping source and market new projects.

"With the exceptional progress we are making, we expect Blueprint to retain its number one position among all residential construction lenders in Seattle for 2011," Duffus added.  Blueprint was the largest residential construction lender in Seattle during 2010.

Third Quarter 2011 Highlights (at, or for the period ended September 30, 2011):

• Blueprint Capital generated a profit of $647,827; YTD profits totaled $1,542,711.
• Raised $1.3 million in new private equity capital.
• Funded 41 loans for a total of $20.4 million.
• Achieved a 9.2% annualized return on average assets and a 14.7% return on average equity.
• Superior operating efficiencies with an efficiency ratio of 22.2%.
• Operating expense/average assets ratio improved to 2.6%, on an annualized basis.

"Northwest Multiple Listing Service (NWMLS), reported 109 new detached single-family homes sold within the city limits of Seattle during the first nine months of the year; Blueprint member builders were responsible for building 33, or 30%, of these new homes," added Knoll. "Of the homes that sold within our target market, from $400,000 to $1.0 million, Blueprint builders built 26 of them, representing 43% of the 61 sales year-to-date. The average days on market for Blueprint customers' homes is 29 days."

At September 30, 2011, Blueprint held 107 loans in its $50.2 million portfolio, with 86% of that dollar figure dedicated to new home construction. Of the remaining portfolio, existing home rehabilitation account for 9% and 5% is for land acquisition and development or other purpose. By dollar amount, 68% of loans are secured by detached single family homes, 29% are secured by townhomes ranging from 2 to 8 units and 3% by land under development. 

Review of Balance Sheet and Operations

Blueprint's total assets reached $30.9 million at September 30, 2011, up 22% from $25.3 million at the end of the second quarter, and grew 122% from $13.9 million for the third quarter a year ago. At September 30, 2011, net loans, excluding unfunded commitments and deferred loan fees, increased 27% to $28.5 million compared to $22.4 million in the second quarter, and rose 150% from $11.4 million a year ago. Gross loans receivables more than doubled to $50.2 million at September 30, 2011, compared to $21.2 million a year ago. Gross loans at the end of the second quarter totaled $38.7 million. 

Loans are Blueprint's primary investment and make up 93% of assets; there were no nonperforming loans at the end of September 30, 2011. Of the remaining assets, 4% 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.

"Our balance sheet remains strong with 60% equity to assets," said Knoll. "Our current debt ratio is 0.66 to 1 and our target going forward is 2.0 to 1 or less. Consequently, we have the capacity to conservatively increase leverage which will increase our return on equity. Our strategy remains the same: use any additional capital to grow our loan portfolio and increase market share." 

Net interest income, before interest and other direct loan expenses, was $832,466 in the third quarter of 2011, up 28% from $651,691 in the preceding quarter and more than doubled from $340,561 from the third quarter a year ago. Year-to-date, net interest income increased almost four-fold to $2.0 million, compared to $527,664 for the first nine months of 2010. Blueprint's annualized return on average assets was 9.2% and return on average equity was 14.7% in the third quarter. 

The efficiency ratio, which measures overhead expense as a percent of revenue, was 22.2% up from 21.0% in the immediate prior quarter. At September 30, 2011, members' equity was $18.5 million, up 9% from $16.9 million at June 30, 2010, and up substantially from $9.7 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 for 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.