Hart Capital Management Inc.’s Inland Northwest Composite, which tracks the aggregate market value of 11 publicly traded companies in the region, fell by $736.5 million, or 8.8 percent, in the second quarter, to $7.64 billion, the company says.

That’s down dramatically from a record $13.6 billion composite for 15 publicly traded companies based in this region at the end of the 2011 first quarter, and from $12.4 billion as recently as the end of the 2012 third quarter. Year to date, the 11 companies now being tracked show a nearly $1.1 billion decline in total composite market capitalization.

During the latest three-month period, just three of the companies experienced an increase in market capitalization. Red Lion Hotels Corp., of Spokane, had a $19.9 million increase in market cap, which made it the top positive contributor. Second-place Idaho Independent Bank, based in Coeur d’Alene, and third-place Key Tronic Corp., of Spokane, trailed far behind, eking out market cap gains of $1.8 million and $1.2 million, respectively.

Avista Corp., of Spokane, suffered the largest drop in value, losing $222.2 million in market capitalization. Other companies that experienced big decreases in quarter-to-quarter market value included Potlatch Corp., of Spokane, down $189.1 million; Clearwater Paper Corp., of Spokane, down $156.6 million; and Hecla Mining Co., of Coeur d’Alene, down $110.4 million.

In addition to the composite, Hart Capital operates an Inland Northwest Index, which tracks the same 11 companies in an index methodology similar to that of the Standard & Poor’s Index.

Like the composite, the Inland Northwest Index declined in quarter-to-quarter comparisons, but this also was the first time since the index’s inception in 2002 that it lagged the return of the S&P Index.

The Inland Northwest Index fell 9.3 percent in the latest quarter, which compared with a miniscule 0.2 percent decline in the S&P over the same time period. Over the past 12 months, the Inland Northwest Index fell 9.9 percent, which compared with increases of 5.2 percent and 5.1 percent increases, respectively, by the S&P 500 and the Russell 2000, Hart Capital data showed.

As with the composite, Red Lion Hotels led the index, showing a 14.8 percent rise in stock price in the latest quarter, followed well back by Idaho Independent Bank, up 2.7 percent, and Key Tronic, up 1 percent.  Clearwater Paper, Potlatch, and Hecla had the worst performing stocks, with their stock prices falling in value by 12.3 percent , 11.8 percent and 11.7 percent, respectively, during the quarter.

For the last 12 months, Red Lion Hotels again led the pack, with a 39.8 percent increase in stock price, followed by Inland Northwest Bank parent Northwest Bancorporation Inc., of Spokane, up 19.3 percent, and Washington Trust Bank parent WTB Financial Corp., of Spokane, up 8.6 percent.

Itron Inc. and the soon-to-close Ambassadors Group Inc., both of Spokane, are the two other publicly traded companies here tracked by Hart Capital.

Avista, Potlatch, Itron, and Clearwater Paper are the largest publicly traded companies here, with market capitalizations of $1.91 billion, $1.44 billion, $1.32 billion, and $1.10 billion, as of June 30, the company’s data showed.

The four publicly traded companies formerly based here that have been dropped from the list over the last several years include Coeur Mining Inc., of Coeur d’Alene, which moved its headquarters to Chicago; Intermountain Community Bancorp, which merged with Tacoma, Wash.-based Columbia Banking System Inc.; Sterling Financial Corp., which merged with Portland-based Umpqua Holdings Corp.; and Sandpoint-based Coldwater Creek Inc., which shut down after filing for bankruptcy.

Hart Capital, which is located at 601 W. Main in downtown Spokane, is a privately owned wealth and asset management company.