updated 5/5/2011 1:46:47 PM ET 2011-05-05T17:46:47

SEATTLE, May 5, 2011 (GLOBE NEWSWIRE) -- Blueprint Capital, LLC, the leading residential construction lender in Seattle, Washington, today reported that profits in the first quarter totaled $380,083. Earnings for first quarter amount to more than half the full year income earned during its first year of operations, when profits totaled $702,000. The Blueprint co-operative model of providing finance and development services for smart, smaller-scale construction projects within the city limits of Seattle is proving to be highly successful for its member builders and investors.

"Our first quarter results demonstrate that demand for affordable new homes in Seattle is vibrant and healthy," said Dan Duffus, Co-founder and Chief Executive Officer. "Our builders' average time from listing to accepting an offer was 23 days for homes sold this quarter. We are seeing strong demand and limited supply, particularly for affordable homes, in many Seattle neighborhoods."

"In the first quarter we funded another 30 projects for $12.8 million, all inside the Seattle city limits," said Mark Knoll, Co-founder and Chief Financial Officer. "Competitive financing for these projects is just the first part of our value-added model. We also provided development services, which include identifying buildable lots, project design, permitting and platting, and pre- and post-construction marketing, for 77% of the projects funded this quarter. The Blueprint financing plus service model gives us a competitive advantage when compared to the traditional banking model."

First Quarter 2011 Highlights:

  • Blueprint Capital generated a profit of $380,083;
  • Raised $2.9 million in new private equity capital, a 27% increase from December 31, 2010;
  • Funded 30 loans for a total of $12.8 million;
  • Return on average assets was 8.4% and return on average equity was 12.3%, on an annualized basis;
  • Superior operating efficiencies with an efficiency ratio of 27.6%;
  • Operating expense/average assets ratio was 3.2%, on an annualized basis;
  • Distributed a 2010 profit share of $148,000 and preferred returns of $217,000 to investors.

"By becoming involved in the projects at the very earliest stages, we are able to apply our experience and expertise with in-fill development to improve the overall metrics of the project. The benefits to the builders are more saleable projects at lower costs, and the benefits to Blueprint are stronger projects and lower risk," Duffus noted. "Since the inception of Blueprint, calls from agents and sellers of developable lots have increased dramatically. The co-op model gives our member builders first access to these great opportunities." 

"Important to our success is that our member builders are the only home builders we will lend to," Duffus added. At March 31, 2011, Blueprint held 62 loans in its $29.3 million portfolio, with 84% of that dollar figure dedicated to new home construction. The remaining portfolio is 10% existing home rehabilitation and 6% are for land acquisition and development. By dollar amount, 65% of loans are secured by detached single family homes, 30% are secured by townhomes ranging from 2 to 8 units and 5% by land under development.

Review of Balance Sheet and Operations

Blueprint's assets totaled $20.6 million at March 31, 2011, up 30% from $15.8 million at the end of December. Gross loans receivable were $29.3 million, up 38% from $21.2 million at year end. Net loans totaled $17.9 million compared to $13.4 million 3 months earlier. Loans are Blueprint's primary investment and make up 88% of assets. At March 31, 2011, there were no nonperforming loans. Of the remaining assets, 8% are in cash which is used for working capital and security for bank lines of credit, and 4% 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 expected to be a significant part of Blueprint's investment strategy.

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

In the first quarter of 2011, net interest income was $524,768 and non-interest expense was $144,684. Blueprint's return on average assets was 8.4% and return on average equity was 12.3% in the first quarter. The efficiency ratio, which measures overhead expense as a percent of revenue, was 27.6%. At March 31, 2011, members' equity was $13.7 million, up from $11.0 million at December 31, 2010, and $3.0 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.

BLUEPRINT CAPITAL, LLC
     
BALANCE SHEET  For the Quarter Ended   For the Year Ended 
  March 31, 2011 December 31, 2010
  (Unaudited) (Unaudited)
ASSETS    
Cash  $ 334,158  $ 123,518
Restricted cash  1,322,503  1,319,458
Total Cash and Cash Equivalents  1,656,661  1,442,976
     
Loans    
Total Loans Receivable  29,321,850  21,200,444
Undisbursed loan commitments  (11,112,194)  (7,527,630)
Deferred loan fees  (326,669)  (230,363)
Net Loans  17,882,987  13,442,451
Accrued interest receivables  160,207  123,811
Land and development costs  773,096  761,503
Investment in joint venture  95,267  43,767
Total Assets  $ 20,568,218  $ 15,814,508
     
LIABILITIES AND MEMBERS' EQUITY    
Liabilities    
Accounts payable  $ 132,136  $ 89,258
Lines of credit  6,165,000  4,370,547
Notes payable  550,000  350,000
Total liabilities  6,847,136  4,809,805
Members' Equity  13,721,081  11,004,703
     
Total Liabilities and Members' Equity  $ 20,568,218  $ 15,814,508
     
     
STATEMENT OF INCOME AND CHANGES IN MEMBERS' EQUITY  For the Quarter Ended   For the Quarter Ended 
  March 31, 2011 March 31, 2010
  (Unaudited) (Unaudited)
NET INTEREST INCOME    
Interest Income  $ 644,538  $ 24,393
Interest and other direct loan expense  119,771  1,563
Net Interest Income  524,768  22,830
     
NON-INTEREST EXPENSE    
Office expenses  62,622  17,934
Utilities  --   -- 
Payroll  82,063  3,518
Total non-interest expense  144,684  21,452
     
NET INCOME  $ 380,083  $ 1,378
     
MEMBERS' EQUITY    
Balance, beginning of year  $ 11,004,703  $ 2,145,000
Member contributions  2,850,470  825,000
Member distributions  (514,175)  (8,973)
Balance, end of period  $ 13,721,081  $ 2,962,405
CONTACT: Mark Knoll - Co-Founder and Chief Financial Officer
         206.933.7514

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