Inland Northwest index outpaces S&P 500 in 2016

Hart Capital Management, Inc. has released its Fourth Quarter 2016 Hart Capital Inland Northwest Index and Composite (the Hart Charts).

The index, which tracks 10 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, rose 3.3 percent over the last three months, performing in line with the S&P 500 which also increased 3.3 percent over the same time period.

For the quarter, W.T.B. Financial Corp. led the index returning 20 percent. The company’s strong performance was mainly attributed to rising interest rates throughout the quarter and the expectation the banking sector will experience stronger profitability in a rising interest rate environment.

The other top performers were Idaho Independent Bank (IIBK) and Itron, Inc. (ITRI), rising 15.3 percent and 12.7 percent, respectively. Hecla Mining Co. (HL) was the weakest performer with a decline of 8.1 percent.

For the year ended 2016, Hecla Mining Co. (HL), Itron, Inc. (ITRI), and Clearwater Paper Corp. (CLW) led the index, increasing by 177.2 percent, 73.7 percent, and 44 percent, respectively. Northwest Bancorporation, Inc. (NBCT) was the worst performer in the index, even though the company’s stock increased 2.9 percent for the same period.

Hecla Mining Co.’s strong performance in 2016 was due to rebounding gold and silver prices and increased production.

Itron, Inc.’s appreciation this year can be attributed to a stronger than expected backlog in the second half of the year as well as positive commentary around increased infrastructure spending.

For the three month period ending on Dec. 31, 2016, the composite rose $286 million, or 2.7 percent. For the year-end 2016, the composite rose $3.69 billion or 51.3 percent, from $7.2 billion to $10.9 billion.

Hart Capital Management, Inc. is an independent, research-focused investment firm that serves the Inland Northwest from its headquarters in Spokane.