Hart Capital Management Inc., a Spokane-based investment firm, says the combined stock value of 12 publicly traded Inland Northwest companies, as measured in an overall index it compiles, rose 6.3 percent in the second quarter of 2014, beating out the S&P 500, which increased 4.7 percent. 

The index rose 6.9 percent during the first half of 2014. Comparatively, the S&P 500 increased by 6.1 percent and the Russell 2000 Index climbed by 2.5 percent over the same period, Hart Capital says in its quarterly report published earlier this month. 

Hart Capital’s index uses a methodology similar to that of the S&P 500.

The strongest performing stocks in the Hart index during the second quarter were Ambassadors Group Inc. Itron Inc., and Hecla Mining Co. with respective stock price increases of 16.4 percent, 14.1 percent, and 12.4 percent. 

 The weakest performer among the group was Red Lion Hotels Corp., with a stock price decline of 6 percent during the same period. 

Other companies showing second-quarter declines in stock performance were Spokane-based Northwest Bancorporation Inc., Sandpoint-based Intermountain Community Bancorp., Coeur d’Alene-based Idaho Independent Bank, and Spokane-based Clearwater Paper Corp., which were down 5.7 percent, 4 percent, 3.9 percent, and 1.5 percent, respectively. 

The investment company says Avista Corp. led the index for the first half of 2014 with an increase of 18.9 percent. While Clearwater Paper’s stock price dropped in the second quarter, its price had surged in the first quarter, giving it a 17.6 percent increase for the first six months, second highest behind Avista. Hecla Mining has the next highest six-month gain, up by 12 percent.

During the past 12 months, Idaho Independent Bank led the index with a 51.3 percent jump in stock price, the investment firm says. Clearwater Paper, Ambassadors Group, and Avista all beat the market return of 22 percent during the same time period. 

Meanwhile, in what it calls the Inland Northwest Composite, Hart Capital tracks the same companies’ combined market value, or capitalization, which is the share price multiplied by the number of outstanding shares.

As of June 30, the composite stood at $8.7 billion, down $1.6 billion—or14.8 percent—from $10.2 billion as of March 31. 

Hart Capital says the primary reason for the sharp decline was the removal from the index and composite of Sterling Financial Corp., after it merged with Umpqua Holdings Corp. on April 18, 2014, as well as the removal of Coldwater Creek Inc. after it filed bankruptcy in mid-April. 

Excluding the effect of removing those two companies, the composite increased $582.6 million, or 7.2 percent, from the end of the first quarter.

Compared to one year ago, the composite decreased $1.9 billion, or 17.8 percent, due mainly to the removal of the two aforementioned companies as well as the removal of Coeur Mining Inc., which moved its headquarters from Coeur d’Alene to Chicago last summer. Excluding the removal of the three companies, the composite increased $1.4 billion, or 9.8 percent, from one year ago.

The companies in both the index and composite reports include Ambassadors Group, Avista, Clearwater Paper, Hecla Mining, Idaho Independent Bank, Itron, Intermountain Community Bancorp, Key Tronic Corp., Northwest Bancorporation, Potlatch Corp., Red Lion Hotels, and W.T.B. Financial Corp.