Q4 2018 Hart Charts Press Release

For Immediate Release

January 18, 2019

Local Companies Hit by Equity Market Sell-off in the Fourth Quarter

Hart Capital Management, Inc. has released its Fourth Quarter 2018 Hart Capital Inland Northwest Index & Composite (the Hart Charts). The Index, which tracks eight of the largest and most influential publicly traded companies in the Inland Northwest in a methodology similar to that of the Standard & Poor’s 500 (S&P 500), decreased 19.4% over the last three months, compared to the S&P 500 that fell 14.0%. During the same period, the Hart Capital Inland Northwest Composite fell $2.32 billion, or 19.4%.

Idaho Independent Bank (IIBK) was the only company in the Hart Capital Inland Northwest Index and one of the few in the S&P 500 Index to produce a positive return in the quarter, rising 21.3%. The stock spiked 40.5% on its October 11th announcement that it would be acquired by First Interstate BancSystem, Inc. (FIBK) of Billings, MT. Hecla Mining Company and Avista Corporation (AVA) were the next two best performers in the Index with losses of 15.4% and 16.0% respectively. Itron, Inc. (ITRI) was the worst performer in the Index declining 26.3% in the same period due to ongoing concerns with their supply chain.

For the full year, Idaho Independent Bank (IIBK) once again led the pack with a 55.8% gain. Not only did the company benefit from the acquisition announcement in October, IIBK already had the wind at its back from improving market dynamics within the banking sector. W.T.B. Financial Corporation (WTBFB) and Key Tronic Corporation (KTCC) lost the least, declining 11.1% and 17.2%, respectively. Clearwater Paper Corporation was the laggard, losing 46.3% in the period due to declining profits.

The Hart Capital Composite fell $2.29 billion, or 19.4% in the fourth quarter and likewise fell $2.32 billion or 19.6% for the full year. However, for the year, $156 million of the loss can be attributed to Northwest Bancorporation, Inc. being acquired by First Interstate BancSystem, Inc. (FIBK). The all-stock transaction was valued at approximately $160.9 million in aggregate, or $21.03 per share.

A copy of the most recent Hart Charts has been included with this release for review.

Hart Capital Management, Inc. is an independent, research-focused investment firm that serves the Inland Northwest from its offices in Spokane, Washington and Coeur d’Alene, Idaho.

For detailed information related to Hart Capital Management, Inc. or the Hart Charts, please contact us directly.

Contact: Craig Hart, (509) 444-7007, [email protected]

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