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Q2 2018 Hart Charts Press Release

For Immediate Release

July 16, 2018

Northwest Banks Lead the Way

Hart Capital Management, Inc. has released its Second Quarter 2018 Hart Capital Inland Northwest Index & Composite (the Hart Charts). The Index, which tracks nine 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 6.0% over the last three months, compared to the S&P 500 which increased 2.9% in the same period.

In the quarter, Northwest Bancorporation, Inc. (NBCT) led the Index by gaining 61.4%. The company announced a definitive agreement to be acquired by First Interstate BancSystem, Inc. (FIBK) on April 25 in an all-stock transaction valued at approximately $160.9 million in aggregate, or $21.03 per share. Management expects the deal to close late in the third quarter or early fourth quarter. Idaho Independent Bank (IIBK) and W.T.B. Financial Corporation (WTBFB) were the other leaders, rising 15.1% and 8.9%, respectively. Clearwater Paper Corporation (CLW) was the worst performer in the Index, declining 40.9% in the same period. The company’s performance has been negatively impacted by competitive pressures and higher input costs.

Northwest Bancorporation, Inc, Idaho Independent Bank and Key Tronic Corporation led the index on a year-to-date basis, rising 72.4%, 29.3% and 11.1% respectively. Banks have been performing well nationwide as loan losses remain historically low and yield spreads remain buoyant. Clearwater Paper Corporation was the laggard, losing 49.1% in the period.

For the twelve-month period ending June 30, Northwest Bancorporation, Inc, Idaho Independent Bank led the index once again, increasingly 78.8% and 46.1% respectively. To round out the banking theme, W.T.B. Financial Corporation (WT-BFB) rose 32.8% in the same period. Clearwater Paper Corporation lost just over half its value, down 50.6% over the last twelve months.

The Hart Capital Management Composite fell $539.4 million, or 4.3% to $12.1 billion in the second quarter. Itron, Inc.

(ITRI) pulled down the Composite with a $445.1 million reduction in its market capitalization. The company’s price fell considerably after it reported a quarterly loss that management attributed to the one-time acquisition and restructuring costs. The Composite rose $635.1 million or 5.5% for the six-month period ending 6/30/18. The increase was almost entirely due to the completion of the merger between Potlatch and Deltic Timber (now renamed PotlatchDeltic Corp) on February 20th. Avista (AVA) led the Composite over the trailing twelve months, contributing $839.7 million to the $1.15 billion increase in the Composite over this period.

A copy of the most recent Hart Charts is in 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, craig@hartcap.com

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