SEATTLE – March 26, 2013 – Blueprint Capital, LLC, the leading residential construction lender in Seattle, today announced its financial results for the fourth quarter and year ended December 31, 2012.

2012 Financial and Operational Highlights

• Year-over-year net income growth of 76%
• Year-over-year increase in net loans receivable of 74%
• Raised $15.4 million in new equity capital
• Low debt-to-equity ratio of 0.58 to 1 at December 31, 2012
• Efficiency ratio of 22.4%
• Portfolio mix of 93% new construction
• Collateral mix of 96% one- to four- family residential
• Zero non-performing loans since inception
• Posted 34 consecutive monthly distributions to investors as of December 2012
• Market share of 39% of new homes sold between $400,000 and $1.0 million in Seattle

“Our outstanding operating results for 2012 showcase the success of our business model as well as the benefit to our investors,” said Mark Knoll, Co-Founder and CEO of Blueprint Capital.  “In our third year of operations, we retained our leadership as Seattle’s top one- to four- family construction lender, expanding our target market share to 39% in 2012 from 32% last year.  We returned an average of 10.95% on members’ equity investments, and through the end of 2012, we’ve made 34 consecutive monthly preferred distributions to investors as well as declaring three special distributions.

“We believe that the most effective way to maximize value is continuing the hard work of building complementary service and finance businesses,” Knoll continued.  “This integrated model benefits our customers and, coupled with our technology platform, strengthens our enterprise.  Looking ahead, we plan to expand the Blueprint model to East King County with an independent investment fund. The new eastside fund, called Blueprint Capital II, will focus on lending in Kirkland, Bellevue and Redmond.

Operating Results

Blueprint achieved a 76% increase in net income to $4.4 million for 2012 compared to $2.5 million for 2011.  For the year, the company funded 164 loans totaling $114.6 million, compared to 131 loans totaling $62.1 million in 2011.

The company’s efficiency ratio, which measures overhead expense as a percent of revenue, was 22.4% for 2012 compared to 23.7% for 2011.

Net income for the fourth quarter of 2012 was $1.4 million, an increase of 46% from $960,801 for the fourth quarter of 2011.  Blueprint funded 35 loans for a total commitment of $27.2 million in the fourth quarter of 2012 compared to 29 loans totaling $14.9 million in the year-ago quarter.

Loan Portfolio and Balance Sheet

Net loans receivable increased 74% to $57.9 million at December 31, 2012 from $33.3 million at December 31, 2011, and the company maintained its record of zero non-performing loans as of year-end.  At December 31, 2012, Blueprint held 147 loans in portfolio, with 93% of that dollar figure dedicated to new home construction. Of the remaining portfolio, existing home rehabilitation accounted for 6% and land acquisition and development or other purposes accounted for 1%. By dollar amount, 96% of loans are secured by one to-four family residential homes and 4% of loans are secured by multifamily residential.  As of year-end 2012, Blueprint climbed to fifth place among Washington’s community bank portfolios of one- to four- family construction loans.

Total assets were $60.2 million at December 31, 2012, compared to $36.5 million at December 31, 2011.  At December 31, 2012, members’ equity was $38.0 million, compared to $21.5 million at December 31, 2011.

Dan Duffus, Co-Founder and Director of Builder Services commented, “I am proud of our industry leadership, our track record and our trusted role among customers and investors.  In 2013 we will continue to use our strengths to serve member builders, grow our business and deliver favorable performance to our investors.”

About Blueprint Capital, LLC

Blueprint Capital is the leading residential construction lender in Seattle, Washington.  Blueprint provides loans and development services to builders for smart, small-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.  More information is available at www.bluprintcap.com.

Forward-Looking Statements

This press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Blueprint. We caution you that these statements are based on management’s current expectations and assumptions regarding Blueprint’s business and performance, the economy and other future conditions and forecasts of future events, circumstances and results and that actual events or results may differ materially. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances. Blueprint’s actual results may differ materially from those set forth in its forward-looking statements. Blueprint assumes no obligation to update these forward-looking statements.

Dear Fellow Members,

Blueprint Capital is celebrating its third anniversary and, with your support, we again finished the year as Seattle’s top one- to four- family construction lender.  Regionally, we climbed to fifth place in the same segment among Washington’s community banks.  With a 74% increase in net loans receivable we achieved a 76% increase in net income to $4.4 million compared to $2.5 million for 2011.  Our target market share grew to 39% from 32% in 2011 and we returned an average of 10.95% on members’ equity investments.  Through the end of 2012, we’ve made 34 consecutive monthly preferred distributions to investors as well as declaring three special distributions.

Throughout the year, Blueprint continued to grow its capital base to meet the growing demand for construction financing.  Indicative of our strong customer and community support, we raised $15.4 million in additional equity capital in 2012, surpassing our goal of $5.0 million, and closed the year with total equity capital of $35.4 million.  We met our goal of raising an additional $10-20 million in available debt financing by increasing our line of credit $14.2 million to $33.3 million.

Enterprise Value

The outstanding operating results for 2012 showcase the success of our business model as well as the benefit to our investors.  While Blueprint’s primary investment objective is distributing current income, our long-term goal is to increase our enterprise value and position the company for a positive liquidity event.  We believe that the most effective way to maximize value is continuing the hard work of building complementary service and finance businesses.  This integrated model benefits our customers and, coupled with our technology platform, strengthens our enterprise.  It’s a different approach than the traditional lending model, but the upside is that from a competitive standpoint, our business is hard to replicate.  A sustainable competitive advantage – one that is also scalable – will be accretive to our enterprise value as we grow and position ourselves in the industry.

Competitive Landscape

When we made the decision to start Blueprint, part of our thesis was that the long-term trend for banks would be reduced participation in residential construction financing to the advantage of non-bank competitors.  Regulations such as those imposed by Basel III and Dodd-Frank place strict restrictions on lending limits for smaller community banks, who represent our closest competition.  The result is that those banks who would normally serve small-scale builders do not have the regulatory capacity to meet demand, regardless of their willingness to make construction loans.  And, we assumed that larger community banks who survived the recession would rebalance their portfolios with less weight on construction loans.  While it is still early in the business cycle, our thesis appears to be playing out as the top ten Washington community banks collectively decreased one- to four- family construction loans by 11.3% in 2012.

Looking Ahead

Despite the fragile economy in many parts of the nation, the outlook for the Puget Sound regional economy is strong.  Local economist Dick Conway (The Puget Sound Economic Forecaster) predicts our economy will likely grow faster than the nation’s over the next decade due to population, job and salary growth.  At the same time, the new housing market continues its rebound.  In Seattle for 2012, we saw an increase in new single family home sales of 33% over 2011.

Against the backdrop of restricted capital availability, a positive economic outlook and robust new home sales we plan to expand the Blueprint model to East King County with an independent investment fund.  The new eastside fund, called Blueprint Capital II, will focus on lending in Kirkland, Bellevue and Redmond.  While the geography will change with the new fund, the philosophy will remain the same.  Namely, establishing relationships with select builders and focusing on smart, smaller-scale residential projects.  We plan to share overhead expenses with the new fund which will result in lower operating costs for us.

In addition to opening a new market fund, we hope to soon present a plan to you that, if approved, will convert Blueprint Capital, LLC to a real estate investment trust (REIT).  This new structure has many advantages and will position us for growth.  As the details of the conversion plan are finalized we will share them with you.

Over the last three years, we’ve seen the economic weather change from “thunder storms” to “cloudy” and now “partly cloudy with a chance of sun.”  Regardless of tomorrow’s forecast, we will continue to work hard on our two primary objectives:  Serving residential builders and creating value for our investors.  This clarity of purpose guides all of our actions and aligns our company interests with those of all stakeholders.  Our continued pledge is to deliver attractive returns over the long term through a consistent, focused strategy that you can understand and monitor.  Thank you and we look forward to continued success in 2013.

Sincerely,

Mark Knoll

CEO

The Principles of Smart Growth:

• Urban Density: We support Washington’s Growth Management Act, which encourages urban density as an intelligent alternative to suburban sprawl. Smart land use code saves open space by enabling more people to live in our urban neighborhoods.
• Sustainable Development: We believe that our city—and planet—is best served by sustainable development. Simply put, smaller homes are more sustainable than bigger homes and new homes are more energy efficient than old homes. Smart land use code encourages development of smaller homes and more efficient homes.
• Economic Opportunity: We believe that homebuilding provides an important economic contribution to our city and also recognize that economic incentive is necessary to meet housing demand. Smart land use code imposes regulation without creating unnecessary economic barriers.
• Architectural Diversity: We believe that architectural diversity is part of the heritage of our neighborhoods and gives Seattle a unique personality. Smart land use code respects basic development patterns without discriminating against diverse designs.
• Housing Choice: Public policies, such as those implemented through the Seattle Jobs Plan, are attracting businesses and creating jobs across all income levels. Smart land use code supports housing choice by enabling homebuilders meet the needs of new workers.

Stay Informed

To subscribe for updates and take action please visit www.smartgrowthseattle.org

About Smart Growth Seattle

Smart Growth Seattle is a new advocacy group promoting fresh land use codes to manage neighborhood growth. We collaborate with homebuilders and community stakeholders to help government adopt codes that are appropriate for meeting housing demand and preserving neighborhood character. Our approach starts by identifying ways that the land use code can be improved. We collect ideas relevant to these initiatives and weigh them against a set of principles shared among our supporters. Then, we communicate with government officials to help them enact the smartest solutions.

SEATTLE – November 5, 2012 – Blueprint Capital, LLC, the leading residential construction lender in Seattle, today reported its tenth consecutive quarterly profit.  For the third quarter ended September 30, 2012, earnings increased 47 percent to $951,358 compared to $647,827 in the third quarter a year ago.  Year-to-date earnings were $2.8 million compared to $1.5 million in the like period a year ago. 

“Blueprint’s strong earnings are driven by growth in our portfolio of one- to four- family construction loans,” said Mark Knoll, co-founder and chief executive officer.  “This is a result of our continued focus on smart, small-scale development within Seattle’s urban neighborhoods.”  At the end of the third quarter, Blueprint’s committed loans receivable increased to $94.7 million compared to $50.2 million for the third quarter last year.  

“In the third quarter, we funded 49 loans for $35.8 million, which is a record amount for us,” said Dan Duffus, co-founder and director of builder services.  “Our financing plus service model is what sets us apart.  Everything we do is focused on helping our member builders succeed.”  In addition to financing, Blueprint adds value for customers by sourcing new projects, providing development services and marketing their homes.

Third Quarter 2012 Highlights (at, or for the period ended September 30, 2012):

•     Raised $4.3 million in new equity capital
•     Funded 49 loans for a total commitment of $35.8 million
•     Low debt-to-equity ratio of 0.59 to 1
•     Collateral mix of 94% one- to four-family residential, 5% multifamily and 1% land
•     Portfolio mix of 92% new construction, 5% rehab and 3% A&D/other
•     Zero non-performing loans
•     Posted 32 consecutive monthly distributions to investors
•     Market share of 34% of new homes sold between $400,000 and $1.0 million in Seattle

About Blueprint Capital, LLC

Blueprint Capital is the leading residential construction lender in Seattle, Washington.  Blueprint provides loans and development services to builders for smart, small-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.  More information is available at 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.

SEATTLE, August 15, 2012– Blueprint Capital, LLC., the leading residential construction lender in Seattle, announced today that Robert Fuller joined as CFO and chief credit officer. In his new designated role, Fuller will lead the administration of the company’s growing loan portfolio, manage financial reporting and assist in executing Blueprint Capital’s growth plan.

As CFO and chief credit officer, Fuller complements Blueprint Capital’s core executive leadership. Concurrent with his hiring, company co-founder Mark Knoll was named CEO and co-founder Dan Duffus was named director of builder services.

“Rob has remarkable and relevant community bank experience managing risk, leading strategic growth and improving franchise value,” said Knoll. “We are delighted to have someone of Rob’s caliber as we continue to grow Blueprint Capital’s business and explore new markets.”

Fuller has two and a half decades of senior financial executive experience, with extensive experience in commercial lending, capital fundraising and regulatory compliance. Prior to joining Blueprint Capital, Fuller held senior executive positions at US Bank, Sterling Savings Bank and Golf Savings Bank. His service at Golf Savings Bank, one of the Puget Sound area’s largest residential construction lenders, included tenures as the chief financial officer and chief operating officer, where he was instrumental in managing the bank’s successful sale to Sterling Savings Bank.

ABOUT BLUEPRINT CAPITAL
Blueprint Capital, LLC., is the leading residential construction lender in Seattle, Washington. The company provides loans and development services to builders of smaller-scale construction among Seattle’s urban neighborhoods. Using a unique, co-operative business model, Blueprint Capital pools the resources of local builders, suppliers and community stakeholders enabling builders to meet housing demand. In addition to financing, Blueprint Capital provides its member builders with design, permitting and marketing services, including ready-to-build projects.

SEATTLE, August 9, 2012 – Blueprint Capital, LLC, the leading residential construction lender in Seattle, today reported its tenth consecutive quarterly profit. Earnings increased 68 percent to $865,475 for the second quarter ended June 30, 2012, compared to $514,802 for the second quarter a year ago. For the first half of 2012, earnings doubled to $1.8 million compared to $894,884 for the first six months of 2011. Blueprint continues to successfully execute on its specialized business model that uniquely blends builder investment, local expertise and technology to create reliable financing for its customers and stable returns for its investors. Its builder members are leaders in environmentally-conscious building practices.

“We continue to benefit from the strong consumer demand for well-priced, new homes within the city of Seattle, and the shifting dynamics of the finance industry,” said Mark Knoll, co-founder and Chief Financial Officer.

Second quarter 2012 Highlights, for the period ended June 30, 2012:

• Funded 51 loans totaling $34.3 million; total assets grew 78 percent to $45 million
• Return on average assets (annualized) was 8.5 percent and
• Return on average equity was 13.6 percent

“Housing supply in the greater Seattle area continues to decline, creating shortages and bidding wars in a number of desirable neighborhoods,” said Dan Duffus, co-founder and Chief Executive Officer. “According to the Puget Sound Economic Forecaster’s June 30 Housing Report, available housing supply in the region fell 66 percent in the first quarter of 2012 from the fourth quarter of 2011.”

The firm’s propriety software platform called Blueprint Connect™ is contributing significantly to its ability to originate, fund and service construction loans. “This technology has the potential to allow us to replicate the Blueprint business model in multiple markets, said Knoll, adding, “raising equity capital for expansion within both the Seattle market and new locations remains a priority.”

Blueprint’s primary investments are its loans, which make up 97.5 percent of total assets. With no nonperforming loans at the end of June 30, 2012, the remaining assets are held in cash, used for working capital and security for bank lines of credit. Net loans, excluding unfunded commitments and deferred loan fees, totaled $43.5 million at quarter end, and net interest income grew 87 percent to $1.2 million in the second quarter, compared to $651,691 in the second quarter a year ago.

About Blueprint Capital, LLC: Blueprint Capital is the leading residential construction lender in Seattle, Washington. As a specialty finance company, Blueprint provides loans and development services to builders of smart, smaller-scale construction among Seattle’s urban neighborhoods. Blueprint uses a unique, co-operative business model, pooling the resources of builders, suppliers and community stakeholders to meet the demand for sustainable in-fill housing. In addition to financing, Blueprint provides its customers with design, permitting and marketing services including ready to build projects. 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.

SEATTLE, WA – May 2, 2012 – Blueprint Capital, LLC, the leading residential construction lender in Seattle, today reported its ninth consecutive quarterly profit. Earnings increased 145% to $929,896 for the first quarter ended March 31, 2012, compared to $380,083 for first quarter a year ago. Blueprint continues to successfully execute on its specialized business model that uniquely blends builder investment, local expertise and technology to create reliable financing for its customers and stable returns for its investors.

“We embarked on our third year of operations with another quarter of solid earnings,” said Dan Duffus, Co-founder and Chief Executive Officer. “We funded 29 loans in the first quarter, totaling $17.2 million, again reflecting strong loan originations for our member builders. Our focus is on smart, smaller-scale ‘in-fill’ development. Our growth and portfolio quality is greatly attributed to our ability to help our member builders identify viable in-fill projects and navigate the complex entitlement process. This value-added ‘Blueprint Advantage’ is what sets us apart. In fact, we provided development services for approximately 79% of the residential projects we funded in the first quarter of 2012.” Blueprint Capital is the number one residential construction lender in Seattle and focuses on eco-friendly and energy efficient homes. Their builder members are leaders in environmentally-conscious building practices.

First Quarter 2012 Highlights (at, or for the period ended March 31, 2012):

• Average market time for Blueprint-funded homes was 17 days.
• Return on average assets (annualized) was 10.1%, and return on average equity was 17.1%.
• Blueprint Capital profits grew 145% to $929,896, from $380,083 earned in the first quarter a year ago, marking its ninth consecutive quarterly profit.
• Funded 29 loans for a total of $17.2 million.
• Equity to assets was 60% at quarter end.
• Superior operating efficiencies with an efficiency ratio of 26.3%.
• Operating expense/average assets ratio ended the quarter at 3.2%, on an annualized basis.

“Blueprint continues to make major strides in developing our propriety software platform called Blueprint Connect™,” said Mark Knoll, Co-founder and Chief Financial Officer. “Blueprint Connect™ completely integrates the origination, funding, servicing and risk management functions of our lending operation. The functionality and underlying technology is designed to scale with our growth and provides a platform for the Blueprint business model to expand into other markets.”

“Seattle continues to be a vibrant market and we are seeing accelerating demand within the city limits for entry and mid-level homes,” Knoll continued. “According to Jon Talton of the Seattle Times in his March 17th column, Seattle is not only healthy but it’s booming again, which is a real and broad advantage to the entire region. Consequently, Seattle’s urban neighborhoods are also flourishing which is good for Blueprint as demand for new housing gets stronger.”

Talton further noted, “More jobs are being created too. In fact, over the past year, regional employment has increased at twice the national rate, 2.9% compared to 1.5%. Amazon’s new headquarters could bring as many as 12,000 high-paid jobs to the area. In addition, The Bill and Melinda Gates Foundation has opened its new campus and Boeing is leasing space in downtown Seattle.”

“So, the trend continues which can only be good news for Blueprint as we remain committed to financing the excellent development opportunities within Seattle’s urban neighborhoods,” added Knoll. “One of our biggest challenges to growth is raising capital. We continue to seek new investors to expand capacity and are working on a $20 million secured debt offering tailored for investment funds and high net worth individuals.”

“We are very pleased to have been invited again to attend the 14th Annual D.A. Davidson & Company Financial Services Conference on May 9 and 10, at the Bell Harbor Conference Center in Seattle,” added Duffus. “This event is well-attended by top community bank CEOs, financial analysts and investment bankers.”

At March 31, 2012, Blueprint held 107 loans in its $57.6 million portfolio, with 88% of that dollar figure dedicated to new home construction. Of the remaining portfolio, existing home rehabilitation accounted for 7% and 5% was for land acquisition and development or other purpose. By dollar amount, 91% of loans are secured by detached one- to four- family homes, 5% of loans are secured by multifamily properties, and 4% by commercial and land under development.

Review of Balance Sheet and Operations

Total assets grew 78% to $36.9 million at March 31, 2012 from $20.6 million a year ago and increased slightly from $36.5 million at December 31, 2011. Blueprint’s primary investments are its loans, which make up 95.7% of total assets. With no nonperforming loans at the end of March 31, 2012, the remaining assets are held in cash, which is used for working capital and security for bank lines of credit.

Net loans, excluding unfunded commitments and deferred loan fees, totaled $35.0 million at quarter end, almost double the net loans of $17.9 million at March 31, 2011 and up from $33.3 million at December 31, 2011. Gross loans receivables grew to $57.6 million at March 31, 2012, up 97% from $29.3 million a year ago. Gross loans at the end of December totaled $53.8 million.

“We continue to maintain a strong balance sheet with an equity to asset ratio of 60%. Our current debt ratio remains very low at 0.65 to 1, with a target of 2 to 1,” said Knoll. “While preserving the strength of our balance sheet, we want to conservatively increase leverage and, at the same time, increase our return on equity. Any additional capital is used to grow our loan portfolio, which increases our market share.”

Net interest income, after interest and other direct loan expenses, more than doubled to $1.1 million in the first quarter, compared to $524,767 in the first quarter a year ago, and grew 5% from the quarter ended December 31, 2011. Blueprint’s annualized return on average assets was 10.1% and return on average equity was 17.1% in the first quarter.

The efficiency ratio, which measures overhead expense as a percent of revenue was 26.3% in the first quarter, compared to 24.2% from the preceding quarter. At March 31, 2012, members’ equity grew 62% to $22.2 million from $13.7 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.

To Our Members:

In our second full year of operations, Blueprint Capital achieved the goals we laid out last year and remained Seattle’s number one residential construction lender. At year end, our Seattle portfolio of one- to four- family construction loans ranked us sixth among the same portfolio segment of Washington’s community banks. Our success continues to demonstrate the strength of our business philosophy that combines builder investment, local expertise and technology to create reliable financing for our customers and stable returns for our investors. We are very proud of our accomplishments in 2011, which include the following:

• Blueprint Capital earned $2.5 million, up 253% from the $702,000 earned in 2010.
• Returned an average of 10.75% on our members’ equity investment.
• Funded 131 loans for a total of $62.1 million; double the dollar volume from a year ago.
• Increased available debt financing to $19.1 million from $10.9 million in 2010.
• Raised an additional $9.3 million in equity capital bringing total investment capital to $20.0 million
• Expanded our financing of eco-friendly, “green” building projects, becoming the leader in this fast
growing segment.
• Finished the Morgan Junction 7-unit joint venture development project with 3 sales in 2011 and 4 pending for
first quarter 2012.
• Excellent asset quality, with no non-performing loans since inception.

The Seattle market continues to see strong demand for new housing. Demand is primarily driven by job growth which in turn drives loan growth. Our region is home to some of the most prominent and varied companies in the nation: Amazon, Costco, Starbucks, Nordstrom, and of course, Boeing and Microsoft. Despite the recession, Puget Sound companies continue to add well-paying jobs. Along with jobs, population growth drives housing demand. From 2000 to 2010, the population within the City of Seattle grew by over 45,000 people to 608,660, an increase of 8%. This trend is likely to continue.

We believe that more jobs and more people will continue to offer excellent opportunities for development within Seattle’s urban neighborhoods. This type of smart, smaller-scale development is our focus and commonly known as “in-fill” development. Housing can be provided as multiple units built on the same lot or by creating new lots through subdivision and lot line adjustments. In-fill development, even for the smallest projects, is complex and requires local expertise. Our growth and portfolio quality is greatly attributed to our ability to help our member builders source viable in-fill projects and navigate the complex entitlement process. In fact, we sourced or provided development services for about 66% of the projects we funded in 2011. We call this value-added service the “Blueprint Advantage”.

Another driver of growth is the emerging demand for eco-friendly and energy efficient homes. Commonly known as “built green”, these homes are certified through third party programs and provide a healthier alternative to traditional construction. Blueprint works to prioritize green projects, and we are proud of our builder members who are leaders in environmentally-conscious building practices.

As part of our efforts to manage growth, improve our competitive advantage and maintain a high level of service, we have created a new proprietary software suite called Blueprint Connect™. This comprehensive platform will facilitate the origination, funding, servicing and reporting of our lending operation. The functionality and underlying technology of Blueprint Connect™ is designed to scale with our growth and enable the Blueprint business model to be deployed in other markets.

Our goals for 2012 include completing our software deployment, meeting the growing demand for construction finance, and continuing to provide steady and reliable returns to our investors. To meet demand, we plan to raise an additional $5 million in equity capital and conservatively increase our leverage by seeking an additional $10-20 million in debt financing.

While many community banks continue to struggle with construction loans, we believe that Blueprint is well positioned to expand our leadership through focused effort and a commitment to our core philosophy. The potential we see in the green building sector, and the potential for expansion that Blueprint Connect™ can bring, is exciting. We appreciate the support of our investors, our builder members and the many people in our community who are working with us to achieve success. We look forward to sharing our progress with you throughout 2012.

Sincerely,

Mark Knoll
CFO

Dan Duffus
CEO

Download the full story:  CNBC 3_20_2012

Download PDF:  Blueprint Seattle Times 3_4_2012