Hart Capital Management's Inland Northwest Update

March 9, 2012

2012-03-09T16:48:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Community Bancorp ended up 8.7% for the week, up 31.6% Year-to-Date.

Red Lion Hotels ended up 6.1% for the week, up 13.6% Year-to-Date.

Coldwater Creek ended up 6.1% for the week, down 11.0% Year-to-Date.

Avista ended up 3.8% for the week, down 0.4% Year-to-Date.

Idaho Independent ended down 3.3% for the week, down 2.4% Year-to-Date.

Coeur d’Alene Mines ended down 4.5% for the week, up 9.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +2.1% and the S&P 500 weekly performance was +0.1%.

Coldwater Creek (CWTR) traded higher for the week after reporting fourth quarter earnings. The Company reported a fourth quarter loss per share of $0.11 with $224.4 million dollars in revenue. Analysts were expecting a fourth quarter loss of $0.20 per share with revenue of $221.4 million. Management provided initial first quarter earnings per share guidance of negative $0.18-$0.24, compared to consensus estimates of a loss per share of $0.19. The Company also announced they plan to close approximately 15 retail stores in fiscal 2012. The store closures are part of an ongoing store optimization plan that calls for a total of 35-45 store closures through fiscal 2013. Dennis Pence, Chairman and Chief Executive Officer, stated in the earnings release that “our progress thus far gives us confidence that the turnaround strategies we have implemented are the right ones for our brand.”

March 2, 2012

2012-03-02T16:41:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Community Bancorp ended up 4.5% for the week, up 21.1% Year-to-Date.
Potlatch ended up 0.3% for the week, down 0.7% Year-to-Date.

Clearwater Paper ended down 3.9% for the week, down 3.6% Year-to-Date.

Idaho Independent ended down 4.8% for the week, up 1.0% Year-to-Date.

Hecla Mining ended down 8.7% for the week, down 5.2% Year-to-Date.

Coldwater Creek ended down 9.2% for the week, down 16.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was –2.3% and the S&P 500 weekly performance was +0.3%.

Red Lion Hotels (RLH) traded 2% lower for the week after reporting fourth quarter earnings. On a comparable basis, total revenue increased $0.4 million, from $32.8 million, and adjusted EBITDA from continuing operations before special items increased $1.9 million, from -$0.2 million, compared to the fourth quarter 2010. The Company reported a pre-tax goodwill impairment charge of $20.5 million, of which $14.2 million is related to a goodwill impairment due to a decline in overall profitability. The other $6.3 is related to a fair value adjustment. For 2012 the Company is projecting revenue per available room to increase 2 to 4 percent and to invest $10 million in capital improvements. Jon Eliassen, President and Chief Executive Officer, stated in the earnings release for 2011 that the Company’s revenue per available room growth has exceeded their competitors’ and the Company has maintained their market share.

February 24, 2012

2012-02-24T17:18:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Hecla Mining ended up 8.2% for the week, up 3.8% Year-to-Date.
Key Tronic ended up 4.1% for the week, up 121.5% Year-to-Date.
Coeur d’Alene Mines ended up 1.8% for the week, up 17.6% Year-to-Date.
Intermountain Community Bancorp ended down 6% for the week, up 15.8% Year-to-Date.
Ambassadors Group ended down 6.5% for the week, up 20.8% Year-to-Date.
Itron ended down 6.7% for the week, up 24.9% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -1.3% and the S&P 500 weekly performance was +0.3%.

Shares of Hecla Mining (HL) traded 8% higher for the week after reporting fourth quarter earnings. In lieu of recent mining accidents and the closure of the Lucky Friday mine, the Company posted solid results. Hecla reported fourth quarter EPS of $0.07 and revenue of $102.9 million, compared to consensus estimates of EPS of $0.07 with revenue of $98.8 million. The Company reported silver production of 2.5 million ounces with a cash cost at $2.28 per ounce for the quarter. Hecla reiterated its 2012 silver production estimate of 7 million ounces, which excludes production from the Lucky Friday mine. Production at the Lucky Friday mine is expected to resume early 2013.

Coeur d’Alene Mines (CDE) traded higher for the week after posting fourth quarter earnings. The Company posted fourth quarter adjusted EPS of $0.50 and revenue of $246.4 million, compared to consensus estimates of EPS of $0.40 with revenue of $240.4 million. The Company reported silver production of 5.3 million ounces and gold production of 49,544 ounces during the fourth quarter. Management gave 2012 silver and gold production estimates of 18.5-20 million ounces and 210,000-230,000 ounces, respectively. The Company produced 19.1 million ounces of silver and 220,382 million ounces of gold during 2011.

Idaho Independent Bank (IIBK) reported fourth quarter and full year fiscal results for 2011 this week. The bank had flat EPS year over year, with -$0.46 in the fourth quarter 2011 compared to -$0.46 in the fourth quarter 2010. For fiscal year 2011 EPS was down slightly year over year at -$0.96 versus -$0.89 in 2010. Despite the slip in earnings Jack Gustavel, Chairman and CEO, was positive in his outlook for the bank. He sighted the bank’s improving total risk-based capital ratio, which ticked up to 17.93% at 12/31/2011 from 16.85% at 12/31/2010. “[Idaho Independent Bank] has strong capital ratios that are above the thresholds required to be considered ‘Well-Capitalized’ under regulatory guidelines,” Gustavel stated in the Company’s press release. The bank also reported that Nonperforming assets dropped 13.9% to $35.8 million in 2011. Gustavel said in 2012 the bank would “work on improving asset quality, maintaining cost controls, and managing growth”. Idaho Independent Bank traded flat for the week.

Clearwater Paper (CLW) traded 5.1% lower after posting fourth quarter results. The Company reported fourth quarter adjusted EPS of $0.55 and revenue of $466.4 million, compared to consensus estimates of EPS of $0.54 and revenue of $483.5 million. The adjusted EPS is including a $1.8 million in after-tax charges related to the sale of the Lewiston, Idaho sawmill. Gordon Jones, Chairman and CEO, stated that he “Remains excited about the growing tissue business and the new tissue machine and additional converting lines are scheduled for start-up in December 2012”.

February 17, 2012

2012-02-17T13:59:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Ambassadors Group ended up 19.0% for the week, up 29% Year-to-Date.
Itron ended up 15.5% for the week, up 34% Year-to-Date.
Intermountain Community Bancorp ended up 11.4% for the week, up 23% Year-to-Date.
Idaho Independent Bank ended up 5.0% for the week, up 6% Year-to-Date.
Hecla Mining ended down 1.4% for the week, down 4% Year-to-Date
Clearwater Paper ended down 2.1% for the week, up 6% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +2.7% and the S&P 500 weekly performance was +1.4%%.

Shares of Itron (ITRI) traded 15.5% higher for the week after reporting solid fourth quarter earnings. Itron reported fourth quarter non GAAP EPS of $1.19 and revenue of $642.5 million, compared to consensus estimates of non GAAP EPS of $0.99 and revenue of $582.1 million. The results in North America, specifically within the Open Way segment, were the main drivers that exceeded analysts’ expectations. Management gave FY 2012 EPS guidance of $3.80-$4.20 with revenue of $2.1-$2.3 billion, while analysts were expecting FY 2012 EPS of $3.86 with revenue of $2.26 billion. EPS guidance is especially pleasing in view of the -$0.10 dilutive impact of the announced acquisition of SmartSynch (see below). Previously management provided FY12 revenue guidance to be flat to down 5% on a year over year basis. Now management expects revenue to be down 10%. Management stated that revenue in North America will continue to be strained until housing starts approach one million and utility companies feel more comfortable pushing project costs on to consumers. Management believes European and International segments will continue to provide incremental growth opportunities in the face of domestic weakness.

Itron is acquiring SmartSynch, an industry leading cellular-based AMI solution company for $100 million. The deal is being financed through cash and an increase in the Company’s revolver. The deal is expected to add $50 million of revenue and be less than $0.10 per share dilutive in 2012.

Avista (AVA) traded lower 0.4% for the week after reporting fourth quarter earnings. Avista reported fourth quarter EPS of $0.42 and revenue of $438.9 million, compared to consensus estimates of EPS $0.45 and revenue of $426 million. Management gave FY 2012 EPS guidance of $1.65-$1.95 while analysts were expecting $1.76. The Company expects Avista Utilities to contribute in the range of $1.51-$1.66 and Ecova to contribute $0.16-$0.19 per diluted share for 2012.

This week Intermountain Community Bancorp (IMCB) reported the first profitable quarter since 9/30/2008. Before this quarter the Company had reported twelve consecutive quarters of losses. The Company reported a fourth quarter EPS gain of $0.11 and interest revenue of $9.8 million. Operating expenses decreased by $646,000 from the prior quarter and $973,000 from the fourth quarter last year, reflecting Management’s ongoing focus to control operating costs. Provision for loan losses for the quarter was $706,000 compared to $2.2 million in the previous quarter, reflecting a continued improvement in the credit quality of the portfolio.

February 10, 2012

2012-02-10T16:51:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Key Tronic ended up 10.2% for the week, up 111.5% Year-to-Date.
Coldwater Creek ended up 9.5% for the week, down 11.9% Year-to-Date.
Itron ended up 4.2% for the week, up 15.9% Year-to-Date.
Intermountain Community Bancorp ended down 5.4% for the week, up 10.5% Year-to-Date.
Hecla Mining ended down 5.7% for the week, down 2.7% Year-to-Date.
Northwest Bancorp ended down 9.8% for the week, down 9.8% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -0.9% and the S&P 500 weekly performance was -0.2%.

Shares of Ambassadors Group (EPAX) traded 5% lower for the week after reporting fourth quarter earnings. Ambassadors Group reported a fourth quarter EPS loss of $0.45 and revenue of $2.0 million, compared to a fourth quarter loss of $0.36 and revenue of $4.8 million in the prior year period. Program participants were down 10% in 2011 to 23,928 from 26,657 in 2010, largely due to continued domestic macro-economic weakness, the tsunami in Japan, and political turmoil in the Middle East. Looking into 2012, the Company stated that as of 2/5/2012, enrolled revenue for 2012 travel programs was $158.1 million, down 10.5% from the same point last year, based on enrolled travelers of 24,966 compared to 28,172. Jeff Thomas, Ambassadors Group’s President and Chief Executive Officer, pointed to the Company’s strong balance sheet in the press release, with no outstanding debt as means to manage through this transitional period.

February 3, 2012

2012-02-03T16:23:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Key Tronic ended up 44.0% for the week, up 91.9% Year-to-Date.
Ambassadors Group ended up 12.9% for the week, up 14.2% Year-to-Date.
Idaho Independent ended up 12.4% for the week, up 4.0% Year-to-Date.
Red Lion Hotels ended up 10.3% for the week, up 14.0% Year-to-Date.
Potlatch ended down 6.0% for the week, down 0.1% Year-to-Date
Intermountain Community Bancorp ended down 11.2% for the week, up 16.8% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +1.8% and the S&P 500 weekly performance was +2.2%.

Shares of Key Tronic (KTCC) traded higher 44% for the week after reporting strong quarterly earnings. Key Tronic reported second quarter EPS of $0.30 and revenue of $84.5 million, while management had previously given guidance for quarterly EPS to be in the range of $0.15 to $0.20 and revenue of $75 to $80 million. Management gave third quarter guidance for quarterly EPS to be in the range of $0.30 to $0.35 and revenue of $92 to $97 million. If management is able to achieve the midpoint of their quarterly revenue guidance, that would represent year over year revenue growth of 49%. Craig Gates, President and Chief Executive Officer, stated in the press release that as the Company is moving into the third quarter they “expect continued strong growth in revenue and earnings. As a result of the increasing recognition of our unique combination of world-class engineering, global logistics, and cost-effective production, we’re capturing market share from many of our competitors.”

Potlatch (PCH) traded 6% lower for the week after reporting third quarter earnings. Potlatch reported third quarter EPS of -$0.04 and revenue of $109.9 million, while analysts were expecting EPS of $0.13 and revenue of $117.34 million. The shortfall was mostly caused by lower Real Estate sales and higher than expect cost of sales. Michael Covey, Chairman, President, and Chief Executive Officer, stated in the press release that their outlook for 2012 remains “cautious and conservative, which is in line with our harvest and dividend reduction announced December 5th. Although there was a slight increase in housing starts late in 2011, the housing market remains depressed and we expect only a modest improvement in housing starts in 2012.”

Avista (AVA) declared a quarterly dividend of $0.29 per share on 2/3/2012, an increase of $0.015 per share. This dividend increase will raise the Company’s current dividend yield to 4.5%. The dividend is payable on 3/15/2012 to shareholders as of market close on 2/24/2012. Chairman, President, and Chief Executive Officer Scott Morris was quoted in the press release discussing Avista’s consecutive history of raising their dividend and the board’s overall confidence in the financial strength of the Company.

January 27, 2012

2012-01-27T16:52:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Community Bancorp ended up 21.4% for the week, up 31.6% Year-to-Date.
Hecla Mining ended up 11.3% for the week, up 1.7% Year-to-Date.
Coeur d’Alene Mines ended up 9.7% for the week, up 20.0% Year-to-Date.
Key Tronic ended up 6.7% for the week, up 33.3% Year-to-Date.
Potlatch ended down 3.9% for the week, up 6.3% Year-to-Date
Idaho Independent ended down 8.3% for the week, down 7.4% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +0.1% and the S&P 500 weekly performance was +2.0%.

Sterling Financial (STSA) was up 3.3% for the week after reporting its fourth straight quarter of profitability. The Company reported fourth quarter EPS of $0.24, beating the consensus estimate by $0.01. EPS for the full year ended 2011 was $0.63, a marked improvement from the $53.05 loss in 2010. Interest income for the quarter was $71.8 million and $295.2 million for the full year. In addition, Sterling announced that the Memorandum of Understanding (MOU) between the FDIC and the Bank has been terminated. An MOU is an agreement between a bank and the FDIC that the Bank needs to improve its financial position. This termination shows the continued improvement the Company has achieved over the last year.

Intermountain Community Bancorp (IMCB) announced on 1/23/12 it has successfully closed its previously announced $47.3 million private capital raise. The Company will issue 47.3 million new shares at $1.00 per share and new convertible preferred stock. The Company plans to use the proceeds from the capital raise and the planned rights offering to further strengthen their financial condition.

January 20, 2012

2012-01-20T17:03:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Key Tronic ended up 6.7% for the week, up 24.9% Year-to-Date.
Ambassadors Group ended up 4.8% for the week, up 2.2% Year-to-Date.
Potlatch ended up 3.5% for the week, up 10.6% Year-to-Date.
Intermountain Community Bancorp ended up 3.0% for the week, up 8.4% Year-to-Date.
Coeur d’Alene Mines ended up 2.6% for the week, up 9.4% Year-to-Date.
Avista ended down 0.6% for the week, down 3.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +1.3% and the S&P 500 weekly performance was +2.0%.

January 13, 2012

2012-01-13T14:24:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Community ended up 6.4% for the week, up 5.3% Year-to-Date.
Potlatch ended up 5.7% for the week, up 6.9% Year-to-Date.
Key Tronic ended up 5.6% for the week, up 17.1% Year-to-Date.
Avista ended down 2.6% for the week, down 2.6% Year-to-Date.
Coldwater Creek ended down 10.9% for the week, down 23.7% Year-to-Date.
Hecla Mining ended down 16.3% for the week, down 9.8% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +0.2% and the S&P 500 weekly performance was +0.9%.

Shares of Hecla Mining (HL) fell 21%, to $4.61, on 1/11/12, after the Company announced that their Lucky Friday mine may be shut down for all of 2012. The U.S. Mine Safety and Health Administration has ordered the primary mine shaft to be closed so built-up sand and concrete can be removed. Management has reduced their 2012 production estimates by 2.5 million ounces for a new 2012 production estimate of 7 million ounces. Management had previously expected the Lucky Friday mine to be open by the end of this February.

Coldwater Creek (CWTR) announced an increased fourth quarter projected loss as same-store sales continue to disappoint. Same-store sales for the nine-week period ended 12/31/2011 declined by about 9%. Management now expects a fourth-quarter loss of $0.18 to $0.24. Management had previously expected a fourth-quarter loss of $0.11 to $0.21.

January 6, 2012

2012-01-06T16:26:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Key Tronic ended up 10.9% for the week.
Hecla Mining ended up 7.8% for the week.
Coeur d’Alene Mines ended up 6.2% for the week.
Sterling Financial ended up 4.8% for the week.
Ambassadors Group ended down 4.7% for the week.
Coldwater Creek ended down 14.4% for the week.

The Hart Capital Inland N.W. Index's weekly performance was +1.7% and the S&P 500 weekly performance was +1.6%.

On 1/5/2012, Avista (AVA) announced that Ecova, an indirect subsidiary of Avista, will acquire LPB Energy Management (“LPB”). LPB is a privately held energy management company headquartered in Dallas, Texas. The transaction is expected to be funded by Ecova through an expansion of its credit facilities and an equity infusion from existing shareholders. LPB reported revenue of $18.4 million for the year ended 12/31/2010. Annualizing reported revenue for nine months ended 9/30/2011, LPB would report revenue of $20 million for the year ended 12/31/2011. Using the annualized 2011 revenue figure of $20 million, LPB would have year-over-year revenue growth of 8.7%. Management expects the transaction to be neutral to Ecova’s earnings in 2012.

December 30, 2011

2011-12-30T13:55:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Northwest Bancorp ended up 10.3% for the week, down 62.8% Year-to-Date.
Washington Trust ended up 5.6% for the week, up 8.1% Year-to-Date.
Intermountain Community ended up 5.6% for the week, down 35.8% Year-to-Date.
Ambassadors Group ended down 3.8% for the week, down 60.7% Year-to-Date.
Hecla Mining ended down 4.4% for the week, down 53.5% Year-to-Date.
Coeur d’Alene Mines ended down 5.4% for the week, down 11.6% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -0.71% and the S&P 500 weekly performance was -0.61%.

Preliminary reports indicate the Hart Capital Management Inland Northwest Index increased by $520 million, or 8.8%, in the fourth quarter, as market forces regained value after the third quarter selloff. During the last quarter, nine of the fifteen companies in the Index increased in value, with Key Tronic (KTCC) and Sterling Financial (STSA) showing the largest increases in share price. The S&P 500 increased 11.2% for the fourth quarter to end the year essentially flat.

December 23, 2011

2011-12-23T22:39:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Ambassadors Group ended up 9.3% for the week, down 59.1% Year-to-Date.

Sterling Financial ended up 6.7% for the week, down 11.7% Year-to-Date.

Clearwater Paper ended up 5.2% for the week, down 8.6% Year-to-Date.

Potlatch ended up 4.7% for the week, down 3.9% Year-to-Date.
Coldwater Creek ended down 2.7% for the week, down 66.2% Year-to-Date.
Intermountain Community ended down 10.9% for the week, down 39.2% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +3.38% and the S&P 500 weekly performance was +3.74%.

Hecla Mining (HL) announced on 12/21/2011 initial 2012 production estimates. Management expects to increase silver production in 2012 to more than 9.5 million ounces, which is 500,000 ounces higher than management’s current 2011 production estimates. Management also announced plans to develop a new haulage way in response to a rock burst at the Lucky Friday mine on 12/14/2011. Construction of the bypass will result in the loss of two months of production at the Lucky Friday mine. The 2012 production estimate reflects this loss.

Hart Capital Management would like to wish you a Merry Christmas and happy holiday season.

December 16, 2011

2011-12-16T16:15:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Community ended up 14.8% for the week, down 31.8% Year-to-Date.
Coldwater Creek ended up 1.9% for the week, down 65.3% Year-to-Date.
Clearwater Paper ended down 4.7% for the week, down 13.1% Year-to-Date.
Northwest Bancorp ended down 10.1% for the week, down 18.4% Year-to-Date.
Coeur d’Alene Mines ended down 13.6% for the week, down 7.5% Year-to-Date.
Hecla Mining ended down 14.6% for the week, down 51.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -4.58% and the S&P 500 weekly performance was -2.83%.

Bandera Partners LLC and Stadium Capital Management both announced increased ownership in Ambassadors Group (EPAX) this week. Bandera Partners LLC announced on 12/12/2011 a purchase of 16,666 shares at an average price of $4.30. Bandera Partners LLC currently owns a total of 1,894,766 shares of the Company. Stadium Capital Management announced an increased stake in the Company to 10.4% from 8.7%. Stadium Capital Management released a 13G filling on 12/9/2011 indicating the number of shares owned as of 9/30/2011. Stadium Capital Management increased their position in the Company during the previous quarter.

December 9, 2011

2011-12-09T16:17:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Coldwater Creek ended up 18.7% for the week, down 65.9% Year-to-Date.
Northwest Bancorp ended up 11.3% for the week, down 18.4% Year-to-Date.
Hecla Mining ended up 8.0% for the week, down 42.7% Year-to-Date.
Potlatch ended down 1.7% for the week, down 5.6% Year-to-Date.
Key Tronic ended down 1.9% for the week, down 9.4% Year-to-Date.
Intermountain Community ended down 12.9% for the week, down 40.5% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +2.0% and the S&P 500 weekly performance was +0.9%.

Potlatch (PCH) announced a reduction in the Company’s dividend payment on 12/5/2011. The dividend payment was reduced to $1.24 per year, or $0.31 per quarter. The new dividend yield, around 4%, is more in line with the yield of the Timber REIT industry. The Company was able to maintain the previous dividend through this prolonged housing downturn by selling non-strategic assets. In addition, the Company announced plans to reduce harvest levels by 15% to 3.5 million tons. The majority of the harvest reduction will come from the southern region of the United States, where timber prices are weaker.

December, 2, 2011

2011-12-02T16:34:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Ambassadors Group ended up 14.4% for the week, down 61.4% Year-to-Date.
Hecla Mining ended up 12.6% for the week, down 47.0% Year-to-Date.
Coeur d'Alene Mines ended up 11.5% for the week, up 4.7% Year-to-Date.
Northwest Bancorp ended down 1.1% for the week, down 9.2% Year-to-Date.
Key Tronic ended down 2.4% for the week, down 7.7% Year-to-Date.
Intermountain Community ended down 15.8% for the week, down 31.8% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +7.76% and the S&P 500 weekly performance was +7.39%.

Shares of Coldwater Creek (CWTR) traded higher for the week after the Company reported third quarter earnings. The Company posted a third quarter net loss of $29.2 million, or $0.31 per share, with net sales of $187.5 million. Analysts were expecting a quarterly net loss of $0.33 per share and net sales of $185.6 million. Management is projecting a fourth quarter loss in the range of $0.21 to $0.13 a share. Dennis Pence, Chairman and Chief Executive Officer, stated in the earnings release that “although we expect the environment for consumer spending to remain challenging during the fourth quarter, we are encouraged by the progress we are seeing from the implementation of our merchandising and design initiatives and remain confident that our strategies will lead to an improvement in our long-term operating performance.”

Avista (AVA) announced on 11/21/2011, that Ecova, an indirect subsidiary of Avista, will acquire Prenova, Inc. Prenova, Inc. is a privately held enterprise energy management company headquartered in Atlanta, GA. The transaction is expected to be funded by Ecova and have a neutral effect on earnings in 2012.

Craig Gates, President and Chief Executive Officer of Key Tronic (KTTC), purchased 42,360 shares of the Company at an average price of $4.80 on 11/22/2011 and 11/23/2011.

November 18, 2011

2011-11-18T16:32:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Northwest Bancorp ended up 6.0% for the week, down 9.2% Year-to-Date.
Red Lion Hotels ended up 5.9% for the week, down 12.3% Year-to-Date.
Key Tronic ended up 3.5% for the week, down 8.6% Year-to-Date.
Coldwater Creek ended down 8.1% for the week, down 67.8% Year-to-Date.
Ambassadors Group ended down 9.9% for the week, down 62.8% Year-to-Date.
Hecla Mining ended down 10.9% for the week, down 47.0% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -3.25% and the S&P 500 weekly performance was -3.81%.

Idaho Independent (IIBK) reported third quarter fiscal results on 11/7/2011. The Company posted a quarterly net loss of $608,000, or $0.10 per diluted share, with revenue of $4.1 million. Both nonperforming assets and provisions for loan losses decreased during the quarter. Nonperforming assets decreased $15.8 million to $31.5 million and provisions for loan losses were decreased to $300,000 from $800,000 in second quarter 2011, down from $3.4 million in the third quarter 2010. As of the earnings filing date, the Company was still in the process of a rights offering. As of 11/4/2011, the Company had sold 1,723,324 shares at a price of $3.40 per share, raising approximately $5.9 million of additional capital.

November 11, 2011

2011-11-11T17:02:00.000-08:00

Hart Capital Management Inland Northwest Index Movers:

Coeur d’Alene Mines ended up 7.9% for the week, up 7.6% Year-to-Date.
Ambassadors Group ended up 5.6% for the week, down 58.7% Year-to-Date.
Key Tronic ended up 4.1% for the week, down 11.7% Year-to-Date.
Sterling Savings ended up 2.7% for the week, down 18.3% Year-to-Date.
Itron ended down 4.3% for the week, down 33.6% Year-to-Date.
Red Lion Hotels ended down 7.0% for the week, down 17.2% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was +0.78% and the S&P 500 weekly performance was +0.85%.

Shares of Hecla Mining (HL) traded higher 2.6% for the week after reporting third quarter earnings. Hecla reported third quarter EPS of $0.13 and revenue of $120.5 million, while analysts were expecting EPS of $0.13 and revenue of $125.6 million. The Company reported third quarter silver production of 2.3 million ounces at a net cash cost of $0.67 per ounce. Hecla’s President and Chief Executive Officer, Phil Baker, stated in the earnings release that, “Hecla’s financial position and asset base is the strongest it’s been in its history after a unique third quarter generating the highest net income and cash position, establishing a dividend, approving the #4 Shaft, initiating work to reopen three mines, and settling the Basin Litigation.” In addition, the Company reiterated their 2011 silver production estimate of 9-10 million ounces at cash cost of $1.00.

Coeur d’Alene Mines (CDE) traded higher for the week after reporting third quarter earnings. Coeur d’Alene Mines reported third quarter EPS of $1.05 and revenue of $343.6 million, while analysts were expecting EPS of $0.69 and revenue of $288.83 million. These third quarter fiscal results represent an all-time quarterly record of both sales and operating cash flow The Company revised their 2011 gold production guidance from 240,000-250,000 ounces to a new estimate of 220,000 ounces of production. In addition, management expects fiscal year silver production of 19.5 million ounces, which is at the lower end of its previous guidance of 19.5-20.5 million ounces. The Company is planning on reducing production at its Kensington Mine in southeast Alaska for six months. During these six months the Company plans to finish construction and other projects aimed at making Kensington more efficient and competitive in the future. The slowdown will begin this year and continue into 2012. After construction is complete the mine is expected to reach production levels of at least 125,000 ounces and operate below current cost levels.

Northwest Bancorp (NBCT) posted third quarter fiscal results on 11/8/2011. The Company posted a net loss of $659 thousand for the third quarter, or -$0.21 a share. Profitability was affected by one large loan during the quarter that added $2.5 million to the loan loss reserve. Total revenue (net interest income plus noninterest income) increased 2.1% on a year over year basis. In addition, nonperforming assets and impaired loans decreased during the quarter.

Sterling Savings (STSA) announced on 11/6/2011 they have entered into agreement with First Independent Investment Group to acquire certain assets and liabilities from their wholly-owned subsidiary, First Independent Bank (FIB). Sterling will pay $8 million up front and potentially an additional $9 million, depending on the performance of the assets acquired. The performance of the assets is based on credit performance, deposit retention, and fee income levels. The deal is expected to close in early 2012 and is subject to regulatory approval.

Red Lion Hotels (RLH) announced on 11/9/2011 that the Company has listed two Hotels for sale. The Red Lion Hotel Medford in Oregon and the Red Lion Inn Missoula in Montana are the two Hotels that are now for sale. Jon Eliassen, President and Chief Executive Officer, stated in the release that “selling these two properties furthers our effort to restructure our balance sheet, which will give the Company more financial flexibility and increase shareholder value.”

November 4, 2011

2011-11-04T16:40:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Key Tronic ended up 9.9% for the week, down 15.1% Year-to-Date.

Coldwater Creek ended up 7.8% for the week, down 65.3% Year-to-Date.

Itron ended up 3.4% for the week, down 30.6% Year-to-Date.

Avista ended down 3.4% for the week, up 10.3% Year-to-Date.

Potlatch ended down 4.1% for the week, down 1.0% Year-to-Date.

Ambassadors Group ended down 11.1% for the week, down 60.9% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -1.25% and the S&P 500 weekly performance was -2.48%.

Shares of Avista (AVA) traded lower for the week after reporting third quarter earnings. Avista reported third quarter EPS of $0.18 and revenue of $343.7 million, while analysts were expecting EPS of $0.17 and revenue of $377.6 million. In addition, the Company confirmed previously stated earnings guidance for fiscal 2011 and expects to be in the upper half of their guidance range of $1.60 to $1.80. Quarterly earnings from Ecova (previously known as Advantage IQ) continue to grow nicely due to increased demand for its energy and expense management services, with additional growth tied to a recent acquisition. Quarterly earnings for Ecova grew 13% to $0.06 per share, $0.01 higher than last year.

Shares of Key Tronic (KTCC) traded higher 10% for the week after reporting first quarter earnings. Key Tronic reported first quarter EPS of $0.12 and record quarterly revenue of $69.8 million. Management had previously guided for first quarter EPS in the range of $0.10 to $0.15 and revenue in the range of $65 to $69 million. First quarter EPS was helped by a taxed rate of 17.5%, EPS on a fully tax, 32% basis would have been $0.10. Management expects to report second quarter revenue in the range of $75 to $80 million and earnings in the range of $0.15 and $0.20. Key Tronic also gained three new customers and five new program wins during the quarter.

Red Lion Hotels (RLH) traded flat for the week after posting third quarter earnings and announcing the acquisition of ten previously leased properties. Red Lion reported third quarter EPS of -$0.01 and revenue of $46.2 million, while analysts were expecting EPS of $0.15 and revenue of $51.23 million. Jon Eliassen, President and Chief Executive Officer, stated that the Company was “pleased with our Rev Par (revenue per available room) growth this quarter, particularly when compared with national results among midscale hotels.” Red Lion paid $37 million to purchase ten hotels formerly leased from a subsidiary of iStar. The purchase was funded with cash proceeds received from the sale of a hotel in Seattle. The hotel, located on Fifth Avenue in downtown Seattle, was sold earlier in the year for $32 million.

Intermountain Community Bank (IMCB) reported a net loss applicable to common shareholders for the third quarter of $1.2 million, or $0.14 per share, down $0.01 from a loss of $0.13 in the second quarter. The Company reported interest revenue of $10.6 million which was also down slightly from the second quarter. However, the Company improved their loan portfolio with nonperforming assets, 30 day delinquencies, and provisions all decreasing in the quarter. Management also commented on the cancelation of their planned capital raise and stated that they are currently working to complete a new capital raise.

October 28, 2011

2011-10-28T17:34:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Coeur d’Alene Mines ended up 21.2% for the week, down 2.2% Year-to-Date.
Itron ended up 18.2% for the week, down 32.9% Year-to-Date.
Hecla Mining ended up 18.1% for the week, down 42.0% Year-to-Date.
Idaho Independent ended down 5.2% for the week, down 20.0% Year-to-Date.
Clearwater Paper ended down 5.4% for the week, down 12.7% Year-to-Date.
Ambassadors Group ended down 15.4% for the week, down 56.0% Year-to-Date. 3.78

The Hart Capital Inland N.W. Index's weekly performance was +5.56% and the S&P 500 weekly performance was +3.78%.

Shares of Itron (ITRI) traded higher 18.2% for the week after reporting third quarter earnings. Itron reported third quarter EPS of $0.92 and revenue of $615.6 million, while analysts were expecting EPS of $ 1.04 and revenue of $583.2 million. While earnings per share for the quarter came in below the consensus estimate, profitability was mainly affected by one time charges including warranty issues and goodwill impairment. In addition, management also announced more details regarding their restructuring of manufacturing operations. Management will cut 750 full-time jobs globally to increase efficiency and lower manufacturing costs.

Ambassadors Group (EPAX) shares traded to a 52 week low after posting third quarter earnings and a downbeat outlook for the 2012 travel season. Ambassadors Group posted third quarter EPS of $0.34 and revenue of $26.74 million, while analysts were expecting EPS of $0.40 and revenue of $25.85. Jeff Thomas, President and Chief Executive Officer, stated that “looking to the 2012 travel season for our core product, we have 16,239 delegates enrolled as of October 23, 2011, a decrease of 13 percent compared to the same time last year.” The decrease of 13 percent in enrolled delegates is especially worrisome because student travel in 2011 was already down substantially. To offset this decline in enrollment, management plans to increase marketing efforts and will offset this incremental expense through increased operational efficiency. The Company does currently maintain a strong balance sheet with no outstanding debt, providing for financial flexibility during this cyclical downturn.

Sterling Savings (STSA) shares traded higher 13.1% for the week after reporting a third consecutive quarter of profitability. Sterling reported third quarter EPS of $0.18 and interest revenue of $74.8 million, while analysts were expecting EPS of $0.11 and interest revenue of $75.8 million. The Company was able to exceed consensus estimates by increasing mortgage revenue, reducing loan loss provision, and reducing operating costs.

Potlatch (PCH) shares traded lower after reporting third quarter earnings. Potlatch reported third quarter EPS of $0.63 and revenue of $152.9 million, while analysts were expecting EPS of $0.55 and revenue of $158.2 million. Management has been able to maintain its annual $2.04 dividend through the housing downturn by selling off non-core assets. The Company still maintains good financial liquidity and will be able to pay the current dividend amount for the next fiscal year with a $150 million undrawn bank revolver and $80 million in cash. Management did acknowledge that if housing fails to recover the Company will not sell core assets to fund the dividend. Management maintains that the most likely scenario is still for the dividend to remain at $2.04.

Clearwater Paper (CLW) shares traded lower after reporting third quarter earnings. Clearwater reported third quarter EPS of $0.37 and revenue of $501 million, while analysts were expecting EPS of $0.72 and revenue of $509 million. Clearwater did not provide fiscal guidance for the upcoming quarter or its 2012 fiscal year.

October 21, 2011

2011-10-21T16:59:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Idaho Independent ended up 9.7% for the week, down 15.6% Year-to-Date.

Key Tronic ended up 6.3% for the week, down 25.3% Year-to-Date.

Washington Trust ended up 3.8% for the week, up 3.8% Year-to-Date.

Hecla Mining ended down 7.7% for the week, down 50.9% Year-to-Date.

Coeur d’Alene Mines ended down 7.9% for the week, down 19.4 Year-to-Date.

Coldwater Creek ended down 17.4% for the week, down 70.0% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -2.14% and the S&P 500 weekly performance was +1.12%.

Coldwater Creek (CWTR) announced on 10/18/2011 an underwriting agreement with Piper Jaffray to offer 26.5 million shares at $0.85 per share. These additional shares will increase the total number of shares outstanding by 28.6% from 92.7 million as of 8/29/11 to 119.2 million. In conjunction with this announcement, Dennis Pence, Chairman and Chief Executive Officer, purchased an additional 8,235,000 shares of common stock.

Also on 10/18/2011, Coldwater Creek preannounced third quarter earnings and provided an outlook on fourth quarter profitability. For the thirteen-week period ending 10/29/2011, the Company expects consolidated net sales in the range of $180 to $190 million and a net loss in the range of $0.30 to $0.40 per share. Analysts were expecting consolidated net sales for the quarter of $190 million and a net loss of $0.28 per share. For the thirteen-week period ending 1/28/2012, the Company expects a net loss in the range of $0.17 to $0.26 per share and gross margins to improve 200 to 400 basis points compared to the same period in 2010. Analysts were expecting the Company to report a net loss of $0.28 per share. Management will provide full details on its fiscal third quarter as part of its earnings release scheduled on 12/1/2011.

October 14, 2011

2011-10-14T17:00:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Community ended up 13.4% for the week, down 14.2% Year-to-Date.
Coeur d’Alene Mines ended up 11.1% for the week, down 12.4% Year-to-Date.
Hecla Mining ended up 10.5% for the week, down 46.8% Year-to-Date.
Sterling Financial ended up 10.4% for the week, down 26.2% Year-to-Date.
Washington Trust ended down 6.3% for the week, unchanged Year-to-Date.
Idaho Independent ended down 8.8% for the week, down 23.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 6.22% and the S&P 500 weekly performance was 5.98%.

Red Lion Hotels (RLH) announced on 10/10/2011 the addition of one new franchise in the state of New Mexico. The new franchise is a 126-room limited service hotel located on the historic Route 66, about 80 miles west of Albuquerque. The property is owned by Positive Investments, which owns the other two recently announced franchise agreements in New Mexico. This additional franchise agreement marks the third new franchise announcement for Red Lion Hotels in New Mexico this year.

Hecla Mining (HL) announced an expansion of their credit facility with Scotia Capital on 10/11/2011. The Company obtained a $100 million secured revolving line of credit under the new facility. This represents an expansion of $40 million from their previous agreement. The financial covenants and interest rate remain unchanged from the previous agreement at LIBOR plus 2.75% to 3.50% depending on the leverage ratio of the Company. Phillips S. Baker, President and Chief Executive Officer, stated that the expansion “demonstrates the continued confidence in our ability to execute our operation and development plans.”

October 7, 2011: Quarterly Update

2011-10-07T16:08:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Itron ended up 4.5% for the week, down 44.7% Year-to-Date.
Potlatch ended up 3.2% for the week, down 0.1% Year-to-Date.
Sterling Financial ended up 2.4% for the week, down 33.2% Year-to-Date.
Ambassadors Group ended down 1.9% for the week, down 51.1% Year-to-Date.
Coldwater Creek ended down 8.8% for the week, down 64.0% Year-to-Date.
Intermountain Community ended down 10.4% for the week, down 24.3% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 1.85% and the S&P 500 weekly performance was 2.12%.

Hart Capital Management, Inc.’s Inland Northwest Composite declined by $2.3 billion, or 19%, for the quarter, bringing year-to-date losses to 13%, or $1.4 billion. During the quarter fourteen of the fifteen companies in the Composite declined in value with Itron, Coeur d’Alene Mines, and Hecla Mining registering the greatest losses.

For the nine month period ending September 30th, two companies remain in positive territory: Avista Corp and W.T.B. Financial (the holding company for Washington Trust Bank). As of September 30th, 2011 the total Composite Value was $9.5 billion.

The Hart Capital Management Inland Northwest Composite and the Hart Capital Management Inland Northwest Index include the 15 largest and most influential publicly traded companies in the Inland Northwest. The Composite tracks the aggregate market value of the 15 companies, while the Index tracks the same companies in an index methodology similar to that of the Standard & Poor’s 500 Index.

A complete breakdown of the 15 companies in the Composite as of September 30th, 2011 can be found at www.hartcap.com.

The Hart Capital Inland Northwest Index decreased 18% during the three-month period ended September 30th, 2011, while the S&P 500 Index decreased 14%. The best performers in the Index in terms of percentage appreciation over the three month period were Intermountain Community Bancorp (+4.2%), Clearwater Paper (-0.5%), and W.T.B. Financial (-3.5%). The worst performing stock in the Index was Itron (-38.7%).

A three year chart of the Hart Capital Inland Northwest Index and Composite can be found at http://www.hartcap.com/.

September 30, 2011

2011-09-30T14:17:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Key Tronic ended up 4.2% for the week, down 33.7% Year-to-Date.
Red Lion Hotels ended up 4.2% for the week, down 15.9% Year-to-Date.
Avista ended up 2.2% for the week, up 5.9% Year-to-Date.
Hecla Mining ended down 5.8% for the week, down 52.4% Year-to-Date.
Itron ended down 11.0% for the week, down 46.8% Year-to-Date.
Intermountain Community ended down 14.4% for the week, down 15.5% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -1.57% and the S&P 500 weekly performance was -0.44%.

Washington Trust (WTBFB) has paid off its $115.5 million Troubled Asset Relief Program (TARP) liability it borrowed in January 2009. Washington Trust used $26.3 million of its own cash and $89.2 million of new borrowings from the Small Business Lending Fund. The Small Business Lending Fund is a U.S. Treasury Department program intended to stimulate job growth by injecting $30 billion into banks for small-business lending. The program lends qualified community banks funding that costs as little as 1% if they increase small-business loans by 10% or more. The overall cost of funding is directly tied to the volume of small-business loans. The initial dividend each bank has to pay to the Treasury is set at 5% and can be adjusted as high as 9% if the bank fails to increase lending. Repaying TARP will allow Washington Trust to wash away the stigma of having TARP on their balance sheet and will allow the company to break free of restrictions that came with the program. TARP placed restrictions on each company that received assets including limits on executive compensation and transparency requirements. Northwest Bancorp (NBCT) and Intermountain Community (IMCB) have not repaid TARP payments they received as of 6/30/2011.

September 23, 2011

2011-09-23T14:43:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Sterling Financial ended down 10.2% for the week, down 33.0% Year-to-Date.
Itron ended down 11.1% for the week, down 40.3% Year-to-Date.
Coldwater Creek ended down 12.7% for the week, down 60.9% Year-to-Date.
Ambassadors Group ended down 15.7% for the week, down 49.9% Year-to-Date.
Coeur d’Alene Mines ended down 17.3% for the week, down 17.2% Year-to-Date.
Hecla Mining ended down 21.2% for the week, down 49.5% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -10.1% and the S&P 500 weekly performance was -6.5%.

On 9/20/2011 Hecla Mining (HL) announced a common stock dividend policy that links dividend payments to Hecla’s average quarterly realized silver price in the preceding quarter. The company announced that the initial quarterly dividend will be $0.03 per share based on an average realized silver price for the third quarter for $40.00 per ounce. For each $5.00 change in the realized price of silver the dividend will change by $0.01.

Intermountain Community Bancorp (IMCB) announced on 9/22/2011 that the previously announced capital raise and subsequent rights offering will be re-structured. On 4/6/2011, the Company originally announced plans to raise $70 million in capital and conduct a $5 million rights offering after the closing of the capital raise. On 9/20/2011, two investors separately informed the Company that each was terminating their purchase agreement. The closing of the transaction was subject to certain customary conditions including bank regulatory approval and confirmations for the transactions within a specific time frame. All required approvals were not granted within this time period, resulting in a termination of the current agreement.

Coeur d’Alene Mines (CDE) announced the appointment of Frank Hanagarne as its new Chief Financial Officer and Senior Vice President on 9/19/2011, effective 10/1/2011. In addition, the Company announced that Leon Hardy has been promoted to Chief Operating Officer and Senior Vice President from Senior Vice President of Operations. Furthermore, Mitchell Krebs, President and Chief Executive Officer at Coeur d’Alene Mines, presented new goals for the company at the Denver Gold Show on 9/20/2011. Krebs stated that he wants to nearly triple silver production in five years, increase gold production by 60%, and revenue to hit $1 billion this year.

Red Lion Hotels (RLH) announced on 9/20/2011 the addition of two new franchises in the state of New Mexico. The first new franchise is a 192 room full service located in the Four Corner region of New Mexico. The second franchise is a 126 room full service hotel located on the historic Route 66, 130 miles west of Albuquerque. Both of the new franchises were formally Best Westerns Inn & Suites.

September 16, 2011

2011-09-16T16:34:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Coldwater Creek ended up 18.3% for the week, down 55.2% Year-to-Date.

Sterling Financial ended up 12.7% for the week, down 25.4% Year-to-Date.

Potlatch ended up 7.3% for the week, up 1.0% Year-to-Date.

Clearwater Paper ended up 6.5% for the week, down 4.0% Year-to-Date.

Coeur d’Alene Mines ended down 6.0% for the week, up 0.1% Year-to-Date.

Hecla Mining ended down 7.1% for the week, down 35.9% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 3.9% and the S&P 500 weekly performance was 5.4%.

Coldwater Creek (CWTR) shares traded higher for the second week in a row after news that Dennis Pence, the Chairman and Chief Executive Officer, purchased an additional 481,714 shares of common stock. Of these, 240,857 shares were purchased on 9/12/2011 at an average price of $1.33 and 240,857 shares were purchased on 9/13/2011 at an average price of $1.40 for a weekly total of $656,769. Coldwater Creek shares traded higher last week 46.3% on news that Pence purchased 342,876 shares. During the last two weeks he purchased a total of 824,590 common shares for a transaction total of $970,500. Currently Pence owns a total of 13,547,710 shares of common stock, around 15% of the total common stock outstanding as of 7/30/2011. Insider buying is viewed by many as a positive indicator because top level executives have the best access to company information.

Red Lion Hotels (RLH) reported an expansion of their credit facility with Wells Fargo Bank on 9/13/2011. The Company obtained $18 million in term debt in addition to the $12 million outstanding under the original facility. Also, a new $10 million collateralized revolving line of credit will be available under the new facility. Julie Shiflett, Executive Vice President and Chief Financial Officer, stated that “this credit facility with Wells Fargo represents another significant step in the process of restructuring our balance sheet.” Shares of Red Lion traded higher for the week up 5.1%.

September 9, 2011

2011-09-09T15:17:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Coldwater Creek ended up 46.3% for the week, down 62.1% Year-to-Date.
Idaho Independent Bank ended up 3.2% for the week, down 16.7% Year-to-Date.
Red Lion Hotels ended up 1.7% for the week, down 17.2% Year-to-Date.
Potlatch ended down 2.4% for the week, down 5.9% Year-to-Date.
Key Tronic ended down 6.8% for the week, down 29.5% Year-to-Date.
Ambassadors Group ended down 7.5% for the week, down 44.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 1.83% and the S&P 500 weekly performance was -1.68%.

Coldwater Creek (CWTR) shares traded higher 46.3% this week after news that the Chairman and Chief Executive Officer, Dennis Pence, purchased a total of 342,876 shares of common stock on 9/6/2011 and 9/7/2011. 171,438 shares were purchased on 9/6/2011 at an average price of $0.89 and 171,438 were shares purchased on 9/7/201 at an average price of $0.94 for a transaction total of $313,731. Currently Dennis Pence owns a total of 12,723,130 shares of common stock, around 14% of the common stock currently outstanding as of 7/30/2011. Insider buying, such as this, is viewed by many as a positive indicator because top level executives have the best access to company information.

Hecla Mining Co. (HL) announced on Friday that they have been approved by the U.S. District Court for the District of Idaho for a $263.4 million settlement that will resolve all claims against them for historic environmental liability. The settlement is related to the Coeur d’Alene Basin Superfund site, and will result in disbursements to the United States, the State of Idaho, and the Coeur d’Alene Tribe. The Company will pay $167 million by 10/8/2011 with the remaining amount being paid out over the following two years. The company also agreed to pay all quarterly proceeds from any Series 1 & 3 warrants exercised, with a total price of $56 million, until August 2014 when the remaining balance must be paid in full. Hecla Mining Co. stated in their press release that they have a strong balance sheet and have enough cash to pay off the cost of the settlement agreement.

September 2, 2011

2011-09-02T14:05:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Clearwater Paper ended up 5.4% for the week, down 9.4% Year-to-Date.
Coeur d’Alene Mines ended up 4.1% for the week, up 6.7% Year-to-Date.
Intermountain Community ended up 2.9% for the week, down 2.7% Year-to-Date.
Sterling Financial ended down 6.8% for the week, down 32.6% Year-to-Date.
Idaho Independent Bank ended down 10.0% for the week, down 19.2% Year-to-Date.
Coldwater Creek ended down 15.5% for the week, down 74.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -2.0% and the S&P 500 weekly performance was -0.2%.

Coldwater Creek (CWTR) shares traded lower 15.5% for the week after posting worse than expected quarterly results. Coldwater Creek posted second quarter EPS of -$0.30 and revenue of $181.4 million. Analysts were expecting second quarter EPS of -$0.22 and revenue of $206.46 million. Management had previously warned that this quarter would still be transitional as the summer assortment does not fully reflect the new merchandise direction. Management also announced that they plan to close 35-45 underperforming stores in the coming 24 months. A key positive that investors can take away from the conference call include management’s decision to defer a majority of their advertising budget to the second half of the year when the new merchandise direction is fully implemented.

Idaho Independent Bank (IIBK) announced plans to pursue a rights offering for the sale of up to approximately $7.0 million of its common stock. (A rights offering is an issue of additional shares by a company to raise new capital.) Existing shareholders will have the right to buy a specified number of new shares during a fixed time period. The Company has priced the new shares at $3.40, resulting in an additional 2,058,824 new shares if the offering is fully subscribed. Investors will have from 8/6/11 to 8/30/11 to participate in the offering.

Itron (ITRI) announced LeRoy Nosbaum will succeed Malcolm Unsworth as the new President and Chief Executive Officer. Nosbaum previously served as the Company’s Chief Executive Officer for nine years during 2000-2009. Overall, analysts view the change as net positive as Nosbaum has had previous success as CEO of Itron.

Red Lion Hotels (RLH) has named Julie Shiflett as Executive Vice President and Chief Financial Officer effective 9/1/11. Shiflett was previously the Vice President of Finance at Red Lion. Shiflett replaces Dan Jackson, whose last day at the Company was 8/31/11.

Clearwater Paper (CLW) completed a two-for-one stock split on 8/26/11, giving each shareholder one additional share of common stock held of record as of 8/12/11.

August 26, 2011

2011-08-26T14:58:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Sterling Financial ended up 13.9% for the week, down 27.7% Year-to-Date.
Key Tronic ended up 12.1% for the week, down 25.7% Year-to-Date.
Ambassadors Group ended up 11.8% for the week, down 38.1% Year-to-Date.
Coeur d’Alene Mines ended up 9.8% for the week, up 2.5% Year-to-Date.
Red Lion Hotels ended up 8.9% for the week, down 13.0% Year-to-Date.
Intermountain Community ended down 2.8% for the week, down 5.4% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 7.0% and the S&P 500 weekly performance was 4.7%.

Key Tronic (KTCC) shares traded higher after posting better than expected quarterly results. Key Tronic reported fourth quarter EPS of $0.15 and revenue of $66.0 million. For the full year of fiscal 2011 total revenue was $253.8 million, up 27% from $199.6 million. Net income was $5.7 million or $0.55 per diluted share, compared to $8.7 million or $0.85 per diluted share for fiscal 2010. Management had previously announced fourth quarter guidance of revenue in the range of $61-65 million and earnings in the range of $0.07-0.12 per diluted share. The increased profitability can be attributed to the end of an industry-wide component shortage and new production ramp ups from both new and longstanding customers. Key positives investors can take away from the conference call include the increased diversification of their customer base and three new program wins. Management announced that for the first quarter of 2012 they expect to report revenue in the range of $65-69 million and earnings in the range of $0.10-0.15 per diluted share. Management also expects gross margins in the range of 8-9% and operating margin to remain flat for the coming quarter. Management concluded the press release with an upbeat tone for investors, “Despite current macroeconomic uncertainty, we expect to continue to capture market share and capitalize emerging opportunities.”

The President and Chief Executive Officer of Hecla Mining (HL), Phillips Baker, purchased 33,000 shares of common stock between 8/15/11-8/17/11. The 33,000 shares were purchased at an average price of $7.36 for a transaction total of $242,880. Insider buying, such as this, is viewed by many as a positive indicator because top level executives have the best access to company information.

August 19, 2011

2011-08-19T14:39:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Coldwater Creek ended up 8.1% for the week, down 70.7% Year-to-Date.
Sterling Financial ended down 8.9% for the week, down 36.5% Year-to-Date.
Key Tronic ended down 8.9% for the week, down 33.7% Year-to-Date.
Ambassadors Group ended down 9.1% for the week, down 44.6% Year-to-Date.
Itron ended down 10.9% for the week, down 36.8% Year-to-Date.
Idaho Independent Bank ended down 12.5% for the week, down 10.3% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -5.0% and the S&P 500 weekly performance was -4.7%.

Red Lion Hotels (RLH) announced on 8/16/11 that Dan Jackson, Executive Vice President and Chief Financial Officer, will resign from his position, effective 8/31/11. Mr. Jackson was appointed Chief Financial Officer in November 2010. The Company expects to have a new Chief Financial Officer indentified by the time of resignation.

Key Tronic (KTCC) will report quarterly results on 8/23/11 after market close. Management previously announced quarterly guidance of revenue in the range of $61-65 million dollars and earnings in the range of $0.07-0.12 per diluted share. During the same fiscal period in 2010 the Company posted revenue of $61.9 million and earnings of $0.22 per diluted share. If the Company posts revenue in the top end of the range it will represent revenue growth of 5% year-over-year.

August 12, 2011

2011-08-12T14:31:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Bancorp ended up 21.7% for the week, down 5.4% Year-to-Date.
Northwest Bancorp ended up 12.5% for the week, down 8.2% Year-to-Date.
Coeur d’Alene Mines ended up 5.2% for the week, down 5.9% Year-to-Date.
Ambassadors Group ended down 10.1% for the week, down 39.0% Year-to-Date.
Sterling Financial ended down 15.7% for the week, down 30.3% Year-to-Date.
Coldwater Creek ended down 18.9% for the week, down 72.9% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -1.61% and the S&P 500 weekly performance was -1.72%.

Shares of Coeur d’Alene Mines (CDE) traded higher 5.2% for the week after reporting solid second quarter earnings. Coeur d’Alene reported second quarter EPS of $0.65 and revenue of $231.1M, while analysts were expecting EPS of $0.77 and revenue of $280.5M. Although the company missed the consensus forecasts, management reiterated their production forecasts for 2011 based on better forecasted second half results from Rochester, San Bartolome and Martha mines. Quarterly results were mainly affected by a $24 million buildup of metal in inventories, slightly lower production, and slightly lower ore grade which all are projected to turn around in the second half of the year. Operating results were driven by another strong performance from the Palmarejo mine.

Hecla Mining (HL) shares also traded higher 1.0% after reporting second quarter earnings. Hecla reported second quarter EPS of $0.11 and revenue of $117.9M, while analysts were expecting EPS of $0.14 and revenue of $121.1M. The key update this quarter was the announcement that the Board for Directors has approved the Lucky Friday #4 shaft. Management expects the new shaft will increase annual production by 2 million ounces. In addition to the #4 shaft production increase, management announced they are aiming for a 50-60% production growth by 2016. The high price for silver is allowing management to reconsider the economics at previously closed mines and explore new sites at its Green Creek mine.

August 5, 2011

2011-08-05T15:09:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Washington Trust ended up 0.4% for the week, up 8.6% Year-to-Date.
Red Lion Hotels ended down 9.4% for the week, down 14.5% Year-to-Date.
Sterling Financial ended down 9.6% for the week, down 17.3% Year-to-Date.
Coeur d’Alene Mines ended down 10.4% for the week, down 10.5% Year-to-Date.
Northwest Bancorp ended down 11.1% for the week, down 18.4% Year-to-Date.
Coldwater Creek ended down 15.9% for the week, down 66.6% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was –7.44% and the S&P 500 weekly performance was -7.19%.

Shares of Avista (AVA) traded lower 8.9% for the week after reporting second quarter earnings. Avista reported second quarter EPS of $0.39 and revenue of $360.6M, while analysts were expecting EPS of $0.49 and revenue of $366.2M. The lower than expected earnings can be attributed to higher operating costs including an increase in other operating expense, depreciation, and taxes other than income taxes. The increase in other operating expense is related to plant maintenance costs that were both scheduled and unscheduled. Key positives investors can take away from the conference call include a continued favorable hydroelectric generation season, solid operating performance from Advantage IQ, and strong fiscal year guidance. Despite the increase in quarterly operating expenses, management said the company remains on track to be in the “upper half” of their 2011 EPS guidance range of $1.60-$1.80.

Red Lion Hotels (RLH) traded lower 9.4% for the week after reporting solid second quarter earnings. Red Lion reported second quarter EPS of $-0.02 and revenue of $45.38M, while analysts were expecting EPS of $-0.02 and revenue of $43.0M. (The second quarter EPS number is calculated without a $33.5 million gain on the sale of the Seattle Fifth Avenue hotel for comparability purposes.) These earnings are more impressive when compared to industry statistics. According to Smith Travel Research, national midscale hotels had a quarterly decline in average daily rate on average of 1.2%, whereas Red Lion had an increase of 1.2%. In addition, Red Lion’s occupancy rate increased 290 basis points to 61.3%. These increases both contributed to a 6.3% increase in revenue per available room year over year.

Northwest Bancorp (NBCT) shares traded lower for the week after reporting second quarter earnings. The company reported a net loss of $249 thousand for the second quarter 2011, compared to a profit of $269 thousand reported for the second quarter 2010. The decrease in profitability can be attributed to a decrease in non-interest income, an increase in non-interest expense, and an increase in provision for loan loss. Non-interest expense increased year over year due to an increase in employee headcount. In addition, the company increased the provision for loan loss due to a higher level of charged-off loans and an analysis of the loan loss reserve. The earnings release also included a reduction in impaired loans and growth in core deposits. Total impaired loans decreased $3.7 million, or 10.1%, from 12/31/2010 to 6/30/2011. In addition, core deposits grew $26.2 million, or 14.1%, year over year.

Shares of Itron (ITRI) traded temporarily higher after announcing a major water meter contract. Itron announced on 8/2/2011 that it has been selected by Larsen & Toubro, the largest construction company in India, to supply 250,000 water meters in Delhi. This contract strengthens Itron’s presence in India as this project follows an earlier one of 100,000 water meters. This contract comes after management highlighted the international opportunity for expanding gas and water meter projects in their quarterly earnings conference call held last week.

August 1, 2011

2011-08-01T09:01:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Clearwater Paper ended up 10.9% for the week, down 3.4% Year-to-Date.
Intermountain Community ended up 5.9% for the week, down 15.5% Year-to-Date.
Idaho Independent Bank ended up 3.9% for the week, up 2.6% Year-to-Date.
Potlatch ended down 6.1% for the week, up 2.1% Year-to-Date.
Hecla Mining Company ended down 6.8% for the week, down 31.0% Year-to-Date.
Itron ended down 12.6% for the week, down 22.4% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -3.07% and the S&P 500 weekly performance was -3.92%.

Shares of Potlatch (PCH) traded lower 6.1% for the week after reporting decent second quarter results. The housing market continues to remain weak and the outlook for a near term recovery remains fragile. Housing starts (an important economic indicator for the housing market issued by the U.S. Consensus Bureau that reports the number of residential building construction projects that began during any particular month) still remain at recession lows as the market continues to work off the large supply of distressed properties. Even with a weak housing market investors can take away several key positives including management’s ability to increase operating efficiencies and balance sheet metrics resulting in a ratings upgrade by Moody's. Potlatch has generally impressed Wall Street by maintaining their dividend through this housing downturn.

Itron (ITRI) traded lower 12.6% this week after reporting second quarter results. At first glance, Itron had a solid second quarter with EPS and revenue coming in higher than analysts’ consensus. Itron reported second quarter EPS of $1.20 and revenue of $612.4M, while analysts were expecting EPS of $1.05 and revenue of $572.8M. Itron shares fell, as investors contributed much of the earnings surprise to a favorable quarterly tax rate and a favorable foreign currency conversion. Key positives investors can take away from the conference call include the international opportunity for expanding gas and water meter projects and strong fiscal year guidance. Management gave a FY11 EPS guidance range of $4.20-$4.60 while analysts' consensus was $4.23 and a revenue guidance range of $2.3-2.4B while analysts' consensus was $2.31B.

Ambassadors Group (EPAX) shares fell 3.1% after reporting second quarter earnings. Ambassadors Group reported EPS of $0.75 compared to analysts’ consensus of $0.81. Results fell short of consensus due to gross margin pressures, higher legal expenses, and higher than projected expenses to attract and retain delegates. Gross margins pressures were a result of a change in product mix and increased land and air travel costs. In addition, the overall number of program participants remains lower on a year over year basis as unfavorable macroeconomic conditions both domestically and internationally remain. The conference call also reported a debt-free balance sheet, a new authorized $15 million share repurchase program, and a new marking campaign with a former American Idol winner.

Clearwater Paper (CLW) traded considerably higher after reporting second quarter results. Clearwater posted second quarter operating earnings of $1.65 and revenue of $494.6M, while analysts were expecting operating earnings of $1.62 and revenue of $480.1M. Clearwater Paper shares traded higher 10.9% based on three surprises: management announced the annual synergies from the integration of Cellu Tissue would come in at $35-40 million (up from the previous estimate of $15-20 million), a new $30 million share repurchase program, and a 2:1 stock split scheduled for 8/12/2011.

Sterling Financial (STSA) shares traded positive 3.1% for the week after posting favorable second quarter earnings. Sterling reported second quarter EPS of $0.12 compared to analysts’ consensus of $0.06. Sterling reported an improvement in credit with nonperforming assets falling to 5.38% of assets down from 6.72% in the first quarter of 2011. Investors still wait patiently for a recovery in the financial industry as net interest income grew only 1.4% sequentially.

July 22, 2011

2011-07-22T15:10:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Itron ended up 5.8% for the week, down 11.2% Year-to-Date.
Sterling Financial ended up 5.0% for the week, down 11.3% Year-to-Date.
Avista ended up 2.0% for the week, up 16.4% Year-to-Date.
Coeur d’Alene Mines ended up 2.0% for the week, up 4.8% Year-to-Date.
Hecla Mining Company ended up 1.8% for the week, down 25.9% Year-to-Date.
KeyTronic ended down 6.7% for the week, down 17.6% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 2.28% and the S&P 500 weekly performance was 2.19%.

Itron (ITRI) shares advanced 5.8% this week partly in response to an analyst report. Itron’s management will report earnings on Wednesday, July 27, after the market closes. J.P. Morgan equity analyst, Paul Coster, released a research report recommending Itron shares before management reports earnings. The reported based the recommendation on a strong quarter for the advanced meter infrastructure (ami) programs and an expectation that management will increase full-year guidance towards the top end of the prior range.

Sterling Financial (STSA) gained 5.0% this week after numerous financial companies reported favorable earnings. Sterling will report earnings on Wednesday, July 27, after the market closes. Banner Bank (BANR) headquartered in Walla Walla, Washington, reported a solid fiscal quarter which drove Banner share price up 6.74% for the week.

KeyTronic (KTCC) shares fell 6.7% this week after an industry competitor announced lower earnings forecast for the next quarter. Plexus (PLXS) reported a solid fiscal quarter with EPS and revenue coming in higher than analysts’ consensus but shares fell after management released Q4 guidance. Management gave an eps guidance range of $0.50-$0.55 while analysts' consensus was $0.60 and a revenue guidance range of $530-560M while analysts' consensus was 585M.

July 15, 2011

2011-07-15T15:26:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Coeur d’Alene Mines ended up 9.6% for the week, up 2.8% Year-to-Date.
Intermountain Community ended up 2.6% for the week, down 20.3% Year-to-Date.
Hecla Mining Company ended up 2.4% for the week, down 27.3% Year-to-Date.
Potlatch ended down 3.9% for the week, up 8.5% Year-to-Date.
Itron ended down 4.9% for the week, down 16.1% Year-to-Date.
Coldwater Creek ended down 9.9% for the week, down 16.1% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -1.47%, Year-to-Date performance is -10.07 %. The S&P 500 weekly performance was -2.06%, Year-to-Date performance is 4.65%.

Coeur d’Alene Mines (CDE) announced today that Mitchell Krebs has been appointed as President and Chief Executive Officer of the Company. Dennis Wheeler resigned from CDE as President, CEO and Chairman of the Board of Directors on July 11, 2011. Mr. Wheeler will continue to serve the Company as a consultant until July 2012 in order to facilitate a smooth transition. Mr. Krebs was previously the Company’s Senior Vice President and Chief Financial Officer, and will continue to serve as CFO. Coeur d’Alene Mines traded higher 9.6% for the week and is now positive 2.8% for the year.

July 8, 2011

2011-07-08T14:54:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Coeur d’Alene Mines ended up 7.2% for the week, down 6.2% Year-to-Date.
Hecla Mining Company ended up 4.0% for the week, down 29.0% Year-to-Date.
KeyTronic ended up 2.9% for the week, down 11.1% Year-to-Date.
Washington Trust Bank ended down 2.4% for the week, up 6.0% Year-to-Date.
Sterling Savings Bank ended down 2.5% for the week, down 15.2% Year-to-Date.
Clearwater Paper ended down 2.6% for the week, down 12.4% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 0.89%, Year-to-Date performance is -10.32 %. The S&P 500 weekly performance was 0.31%, Year-to-Date performance is 6.85%.

Avista (AVA) filed with the Idaho Public Utilities Commission (IPUC) on 7/6/2011 to increase electric and gas rates for customers. If the request is approved, a residential customer will see an increase in their monthly bill of $3.06 for electric and $2.15 for natural gas. On average, electricity expense will increase by 3.7% and natural gas by 3.5% for an average total bill of $62.91. Avista plans to use the increase in revenue to replace or upgrade aging infrastructure. Updating two 1950s-era turbines at Noxon Rapids hydroelectric project in Montana and an upgrade of the 82-year-old spill gates at Nine Mile hydroelectric project are on the planned upgrade list. Avista has announced increases in service costs in both Washington and Idaho this quarter. Avista shares traded up this week 1.1% and remain positive for the year 16.3%

Itron (ITRI) announced that they have installed more than 150,000 of the planned 1.2 million gas meter communication modules in the greater Houston area. Itron expects the 1.2 million gas meters to be installed by 2013. Itron shares traded up 0.2% for the week but remain lower 11.7% for the year.

July 1, 2011

2011-07-01T14:52:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Clearwater Paper ended up 12.0% for the week, down 10.0% Year-to-Date.
Coldwater Creek ended up 7.6% for the week, down 55.5% Year-to-Date.
KeyTronic ended up 6.1% for the week, down 13.6% Year-to-Date.
Hecla Mining ended up 5.5% for the week, down 31.7% Year-to-Date.
Idaho Independent Bank ended up 5.3% for the week, up 2.6% Year-to-Date.
Intermountain Community ended down 6.7% for the week, down 24.3% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 4.76%, Year-to-Date performance is -9.26 %. The S&P 500 weekly performance was 5.61%, Year-to-Date performance is 6.52%.

The winning streak for Avista (AVA) continues this week as shares hit a 52 week high and management announced details on two energy projects. Avista shares hit a 52 week high first on 6/29/2011 and set a new high on 7/1/2011 at $26.21. The first energy project was in regard to the previously announced $28 million Smart Grid Demonstration Project in the city of Pullman, Washington. The project will use smart grid technologies to automate part of the energy distribution system to increase overall energy efficiencies. The second energy project is an agreement to purchase power generated by the Palouse Wind project in Whitman County, Washington. The wind energy facility will provide Avista with approximately 40 average megawatts or roughly enough energy to power 30,000 homes. Avista shares traded higher 4.1% for the week and are up 15.1% for the year.

June 24, 2011

2011-06-24T15:36:00.000-07:00

Hart Capital Managment Inland Northwest Index Movers:

Northwest Bancorp ended up 13.8% for the week, down 7.1% Year-to-Date
Hecla Mining ended up 4.3% for the week, down 35.3% Year-to-Date.
Red Lion Hotels ended up 3.9% for the week, down 2.3% Year-to-Date
Coldwater Creek ended down 2.2% for the week, down 58.7% Year-to-Date.
Sterling Financial ended down 10.4% for the week, down 16.6% Year-to-Date.
Idaho Independent Bank ended down 10.6% for the week, down 2.6% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -0.62%, Year-to-Date performance is -13.39 %. The S&P 500 weekly performance was -0.24%, Year-to-Date performance is 0.86%.

Clearwater Paper (CLW) announced this week the opening of its newest tissue facility located in Shelby, North Carolina. The new facility is expected to include seven converting lines capable of producing ultra-grades of private label tissue products and a Through-Air-Dried (TAD) paper machine. The TAD paper machine which will come on line next year and will increase their premium and ultra tissue offering. Consumer products represents 58% of total revenue and according to Gordon Jones, chairman and president of Clearwater Paper, “this facility represents a continued focus on growing the consumer products segment.” Clearwater Paper traded up for the week 1.6% and remains lower 19.7% for the year.

Despite the lower price of gold this week, Hecla Mining (HL) and Coeur d’Alene Mines (CDE) finished the week up 4.3% and 1.7% respectively.

June 17, 2011

2011-06-17T15:04:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Avista ended up 3.0% for the week, up 9.5% Year-to-Date.
Potlatch ended up 1.0% for the week, up 5.0% Year-to-Date.
Sterling Financial ended down 0.1% for the week, down 6.9% Year-to-Date.
Hecla Mining ended down 5.3% for the week, down 37.9% Year-to-Date.
Northwest Bancorp ended down 12.1% for the week, down 18.4% Year-to-Date.
Intermountain Bancorp ended down 20.0% for the week, down 18.9% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -0.76%, Year-to-Date performance is -12.85%. The S&P 500 weekly performance was 0.04%, Year-to-Date performance is 1.10%.

Hecla Mining (HL) has made a settlement with the Coeur d’Alene Tribe and the state of Idaho after twenty years of litigation. Hecla Mining will pay $263 million to resolve claims stemming from the release of wastes from its mining operations. As we previously mentioned, Hecla will pay out the $167 million within the first thirty days after entry of the Consent Decree and the remaining $96 million will be paid periodically through August 2014. The initial payment of $167 million will be comprised of $102 million cash, $55 million cash or Hecla stock, and $9.5 million from conversion of Series 3 warrants. All settlement funds will be dedicated to restoration and remediation of natural resources in the Coeur d’Alene River and its tributaries. Hecla traded down for the week 5.3% and remains lower 37.9% for the year.

Red Lion Hotels (RLH) announced the close of the previously announced sale of the Red Lion Hotel on Fifth Avenue in Seattle, WA. Red Lion sold its flagship hotel to Lowe Enterprises (LEI) for $71 million (approximately $239,000 a room). The 297-room property will continue to operate under the Red Lion banner and the proceeds will be allocated to the recapitalization of their balance sheet. Red Lion shares traded down for the week 1.1% and remain lower 5.9% for the year.

June 10, 2011

2011-06-10T17:03:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Bancorp ended up 15.4% for the week, up 1.4% Year-to-Date.
Washington Trust ended up 1.8% for the week, up 9.5% Year-to-Date.
Northwest Bancorp ended flat for the week, down 7.1% Year-to-Date.
Hecla Mining ended down 6.6% for the week, down 34.5% Year-to-Date.
Idaho Independent Bank ended down 7.4% for the week, up 12.8% Year-to-Date.
Coldwater Creek ended down 17.3% for the week, down 56.2% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -3.15%, Year-to-Date performance is -12.18 %. The S&P 500 weekly performance was -2.24%, Year-to-Date performance is 1.06%.

Speaking in generalities, the Hart Capital Inland Northwest Index was negatively impacted by market pressures this week, particularly in the cyclical industry. The Cyclical Index (^CYC) declined 2.2% for the week and is down 8.6% for the quarter. Other sectors performing worse than the cyclical industry include the Bank (^BKX) down 10%, Gold/Silver (^XAU) down 11%, and Oil & Service (^OSX) down 13%. Hecla Mining (HL), Coeur d’Alene Mines (CDE), Clearwater Paper (CLW), and Potlatch (PCH) have all been negatively affected by this decrease. These four firms represent over 50% of the total performance of the Index due to the market capitalization weight of the Index. The Inland Northwest Index is more heavily weighted toward the cyclical sector than the S&P 500, resulting in the weekly underperformance.

2011-06-03T15:39:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Northwest Bancorp ended up 13.8% for the week, down 7.1% Year-to-Date.
Idaho Independent Bank ended up 4.4% for the week, up 21.8% Year-to-Date.
KeyTronic ended up 1.8% for the week, down 13.6% Year-to-Date.
Washington Trust ended down 9.6% for the week, up 7.6% Year-to-Date.
Coldwater Creek ended down 12.0% for the week, down 47.0% Year-to-Date.
Intermountain Bancorp ended down 13.3% for the week, down 12.2% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -3.11%, Year-to-Date performance is -8.52%. The S&P 500 weekly performance was -2.32%, Year-to-Date performance is 3.38%.

Shares of Coldwater Creek (CWTR) hit a 52 week low after management released earnings on 6/1/2011. Previously, management had announced expected quarterly earnings that were considerably below analysts’ expectations on 5/17/2011. The quarterly earnings report was largely in line with the preannouncement. Coldwater Creek shares traded down to $1.62 on 6/3/2011, from a 52 week high of $5.82 representing a 72% decrease in value. There are several key takeaways from the conference call that are positive for investors. Management has been able to control variable expenditures including selling, general, and administrative, and have kept inventory low. In addition, management has not withdrawn on their credit revolver and has a completely revamped fall and holiday line up. On 5/24/2011 management announced a shelf offering of an aggregate amount of one hundred million dollars. Coldwater Creek shares traded lower 12% for the week and remain lower 47% for the year.

Potlatch (PCH) traded higher on Friday 4.87% after an analyst upgrade. In addition, Potlatch management presented at the 2011 REIT Week conference in New York on 6/2/2011.

May 27, 2011

2011-05-27T14:10:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Intermountain Bancorp ended up 32.7% for the week, up 1.4% Year-to-Date.
Coeur d’Alene Mines ended up 8.3% for the week, up 0.1% Year-to-Date.
Hecla Mining ended up 5.9% for the week, down 24.5% Year-to-Date.
Itron ended down 6.6% for the week, down 8.5% Year-to-Date.
Idaho Independent Bank ended down 9.9% for the week, up 41% Year-to-Date.
Coldwater Creek ended down 11.6% for the week, down 39.7% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -1.52%, Year-to-Date performance is -5.97%. The S&P 500 weekly performance was -0.16%, Year-to-Date performance is 5.84%.

Shares of Itron (ITRI) traded sharply lower for the week and remain negative for the year after management presented at their annual analyst day on 5/26/11. The presentation outlined aggressive growth ambitions. The company plans to double revenue to about $4.5 billion by 2015 while attaining an 18% adjusted EBITDA margin. Revenue growth will be driven by an expansion in water products across geographies and into new business verticals. A meaningful portion (15-35%) of the expected revenue growth will be derived through acquisitions. The day following the analyst presentation, 5/27/11, RW Baird, a sell side analyst firm, downgraded Itron shares from neutral to underperform. RW Baird said Itron has “no clear plan on how it will offset a drop-off in 2012 revenue as major advanced metering infrastructure deployments reach completion.” Additionally, the firm sees risks of write downs and/or restructuring costs, which would decrease profitability. RW Baird lowered their projected price target from $60 a share to $44. JP Morgan currently has an overweight rating with a $80 price target. Itron shares traded lower for the week 6.6% and remain 8.5% lower for the year.

May 20, 2011

2011-05-20T16:52:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Sterling Financial ended up 3.2% for the week, down 3.6% Year-to-Date.
Idaho Independent Bank ended up 0.6% for the week, up 29.5% Year-to-Date.
Intermountain Bancorp ended down 9.6% for the week, down 23.6% Year-to-Date.
Coldwater Creek ended down 25.5% for the week, down 31.9% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was -1.54%, Year-to-Date performance is -4.52%. The S&P 500 weekly performance was -0.34%, Year-to-Date performance is 6.01%.

One component company of the Index and Composite reported earnings this week:

On 5/17/2011 Coldwater Creek (CWTR) announced disappointing preliminary first quarter 2011 results. For the three months ended 4/29/2011, management is expecting net sales of $180 million and a loss per share of $0.32-$0.34. Wall Street analysts were expecting net sales for the quarter of $236 million and a loss per share of $0.10. Following the release, CWTR shares traded 21% lower, down to $2.31 from $2.92. The decrease in profitability was addressed by Dennis Pence, Chairman and CEO, “During the first quarter, we experienced continued weak trends in traffic and sales as our merchandise offering were not well received by our customers. We are in the process of repositioning our brand and view 2011 as a transitional year.” As we previously highlighted in our 4/1/2011 blog post, Coldwater Creek is in a reorganization phase of their merchandise with new inventory hitting stores for the first time this summer. Coldwater shares traded lower 26% for the week and remain lower 32% for the year.

On 5/16/2011 Avista (AVA) announced a request to increase electric and gas rates to restore aging infrastructure and upgrade generation facilities. Avista filed the request with the Washington Utilities and Transportation Commission which now has eleven months to review the filing and issue a decision. The request would increase electric revenue $38.3 million or, 9%, and increase natural gas revenue $6.2 million or, 4%. For the average consumer the request will result in a monthly bill increase of $7.13 or, 9% in electric and $3.26 or, 5% for natural gas for a total monthly increase of $10.39 or, 14%. Avista shares traded flat for the week and remain higher 12% for the year.

May 13, 2011

2011-05-13T17:25:00.000-07:00

Hart Capital Management Inland Northwest Index Movers:

Northwest Bancorp ended up 12.8% for the week, down 8.0% Year-to-Date.
Washington Trust Bank ended up 8.7% for the week, up 19.0% Year-to-Date.
Idaho Independent Bank ended up 5.7% for the week, up 28.7% Year-to-Date.
Coeur d’Alene Mines ended down 8.8% for the week, down 7.6% Year-to-Date.

The Hart Capital Inland N.W. Index's weekly performance was 1.31%, Year-to-Date performance is -3.03%. The S&P 500 weekly performance was -0.18%, Year-to-Date performance is 6.37%.

Three component companies of the Index and Composite reported earnings this week:

Hecla Mining (HL) released first quarter 2011 earnings on Monday with both revenue and earnings beating Wall Street estimates. Hecla’s first quarter results were records for revenue, gross profit, and net income. Hecla reported revenue for the quarter of $126.4 million verse consensus of $118.6 million and earnings per share of $0.16 verse consensus of $0.13. The increased profitability was derived from better than expected ore grades at Green’s Creek. In addition, Silver production was flat at 2.5 million ounces which is in line with management’s full year guidance of 9-10 million ounces. Management commented on ongoing litigation which is currently awaiting plaintiff’s approval. With approval Hecla Mining will payout $102 million in cash, $55 million in cash of Hecla stock, and $9.5 million from conversion of Series 3 warrants. Hecla traded up for the week 0.5% and remains lower 27.8% for the year.

Coeur d’Alene Mines (CDE) also released first quarter 2011 earnings on Monday. Management was pleased to announce the highest first quarter production, metal sales, and cash flow in the Company’s history. Coeur d’Alene Mines reported metal sales of $199.6 million compared to $88.3 million for the same period last year and earnings per share of $0.14 compared to $(0.12) for the same period last year. Even with the recent price volatility of silver and gold, the Coeur d’Alene Mines Management team remains confident for the remaining fiscal year, “We are anticipating 2011 to be the best year ever by a wide margin with record cash flows.” The company expects consistent increases in production for the rest of 2011. Coeur d’Alene Mines also received reconfirmation from Bolivia regarding their mining contract this week. Earlier this quarter the Bolivian President, Eco Morales, announced plans to expropriate mines but this announcement did not include Coeur d’Alene Mines’ contract. Shares of Coeur d’Alene Mines traded sharply lower after the announcement from the Bolivian President. Coeur d’Alene mines traded 8.8% lower for the week and is down 7.6% for the year.

Idaho Independent Bank (IIBK) was the third Inland Northwest Hart Charts component company to report first quarter 2011 earnings on Monday. They reported a net loss for the quarter of $0.15 per share compared to a loss of $0.02 for the same period a year ago. Jack Gustavel, Chairman and CEO, stated in the press release that, “Improved asset quality, managed growth, and reduced costs continue to be priorities in 2011.” Idaho Independent shares traded higher 5.7% for the week and are up 28.7% for the year.

Ambassador Group (EPAX) announced on Thursday, May 12th that the Board of Directors authorized a $15 million increase in funds to repurchase shares. CEO Jeff Thomas stated, “We believe our repurchase program, combined with our existing dividend policy, is consistent with the Company’s commitment to returning real value to our shareholders while staying focused on profitable growth and operational execution.” Ambassador Group traded up 1.4% for the week but remains down 14% for the year.

May 6, 2011

2011-05-06T17:00:00.000-07:00

                                                             Week        Year to Date

Hart Capital Inland N.W. Index            -4.63%        -4.29%
S&P 500                                              -1.72%         6.56%

Four component companies of the Index and Composite reported earnings this week:

Key Tronic (KTCC) posted mixed financial results after reporting higher than forecasted revenue, but decreased revenue guidance for the next quarter. Key Tronic reported revenue of $63.4 million, $1.4 million higher than previous management expectations and up 23% from $51.7 million for the same period of fiscal 2010. Management gave revenue guidance for the next fiscal quarter of $61-$65 million which makes revenue for fiscal year 2011 $249-$253, which is lower than the previous expectation of annual revenue of $250-$260. In addition to reduced revenue guidance, investors were disappointed about weak gross margins for the quarter. Gross margin for the quarter was 6.7%, which is lower than long run operating goals. Gross margins were affected by both product mix and new program ramps. The Key Tronic story line still remains strong, regardless of short term financial details. Key Tronic has been able to adapt and readapt business models as their business environments have changed over the years. Key Tronic has reported higher selling and administrative expenses because they have hired additional program managers and engineers to keep up with new business. In the third quarter press release Craig Gates, President and CEO, said, “Moving into the fourth quarter of fiscal 2011, we are seeing some increased demand in the forecasts from our longstanding customers, and we continue to focus on moving new programs into production.” Key Tronic traded lower for the week down 11.8% and is down 11.3% for the year.

Clearwater Paper (CLW) reported sub par quarterly financial results due to the consolidation of recently acquired Cellu Tissue and rising input prices. Clearwater reported revenue of $466 million and earnings per share of $0.47. Both revenue and earnings came in below Wall Street estimates resulting in share prices opening 2% lower. Year over year and quarterly comparisons are difficult because this is the first quarter Clearwater has reported consolidated earnings with Cellu Tissue. Due to the recent rise in commodity prices, Clearwater has price increases pending in an attempt to pass along some of the increased costs to customers. Clearwater Paper traded lower for the week down 4.5% and is down 4.3% for the year.

Red Lion Hotels (RLH) also reported sub par quarterly financial results due to weak group demand, but management did reaffirm yearly revenue guidance. For the full year 2011, Management expects RevPar (revenue per available room) to increase 3 to 5 percent from 2010 on an annual basis. Even though the first half of 2011 is expected to remain weak, management believes the second half of the year should be more robust. Management has also recently announced the sale of their 5th Avenue Seattle hotel to Lowe Enterprises. The hotel will remain under the Red Lion name for now but may eventually change to Destination Hotels & Resorts. Red Lion traded lower for the week down 3.4% and but remains positive 5.9% for the year.

Avista (AVA) posted quarterly net income of $41.9 million, or $0.73 per diluted share, above analysts’ expectations of $0.62. The strong quarter can be attributable to the weather conditions that presided over the quarter. President and CEO Scott L. Morris stated in the press release, “Weather conditions in the first quarter of 2011 were slightly colder than average with precipitation, snowpack and streamflows well above average. This resulted in a significant increase in retail loads and hydroelectric generation as compared to the prior year, which increased operating revenues and reduced our power supply costs.” Management was also pleased to announce that both Moody’s and Standard & Poor’s recently upgraded their credit ranking. Avista shares are trading positively for the week and the year up 0.2% and 5.4% respectively.

For the week ending 5/6/2011 the Hart Charts’ best weekly performers included Sterling Financial (STSA) and Avista (AVA), up 0.6% and 0.2% respectively. Next week Hecla Mining (HL), Coeur D’Alene Mines (CDE), and Idaho Independent Bank (IIBK) will report quarterly earnings.

April 29, 2011

2011-04-29T17:10:00.000-07:00

Three component companies of the Index and Composite reported earnings this week:

Ambassadors Group (EPAX) posted a quarterly net loss of $8.7 million, or $0.48 per diluted share, for the quarter ending 3/31/2011. This quarterly loss is not indicative of annual performance due to the traditional seasonality of the travel industry. The Ambassador Group organizes and promotes global educational travel opportunities for students. During the fiscal year 2010, the first quarter’s revenue only represented 4% of total revenue for the year. Over 90% of annual revenue was realized within the second and third operating quarters. Ambassadors Group’s CEO Jeff Thomas explained in the earnings release the headwinds facing the company for the remaining year, “While many industries have seen an improvement in consumer discretionary spending, the stagnant housing market, rising gas prices, and the weak job market continue to present a challenging operating environment in our core markets.” Ambassadors Group’s share price remains negative for the year down 11%.

Itron (ITRI) posted quarterly net income of $27.1 million, or $0.66 per diluted share, for the quarter ending 3/31/2011. Financial results came in above analysts’ expectations with backlog reaching a record high. Backlog is a significant indicator because it is the total value of sales orders waiting to be filled. Itron’s president and CEO, Malcolm Unsworth, reaffirmed the quarterly performance in the earnings release, “We had a great start to the year driven by the continued global success of our advanced solutions.” Itron’s share price remains almost unchanged for the year.

Potlatch (PCH) posted quarterly net income of $7.7 million, or $0.19 per diluted share, for the quarter ending 3/31/2011. Potlatch missed consensus earnings estimate due to weak saw prices in their southern region. Michael Covey, President and CEO, reaffirmed an optimistic outlook for 2011, “With housing starts expected to show only modest improvement during the year, business conditions for both our Resource and Wood Products segments are likely to continue to be somewhat challenging. However, U.S. log exports to

China

continue to grow and domestic repair and remodel activities are expected to increase, which will act as a counterbalance to continued lower housing starts.” Potlatch’s share price is up 19% for the year.

For the week ending 4/29/2011 the Hart Charts’ best weekly performers included Northwest Bancorp. (NBCT), Coldwater Creek (CWTR), and Red Lion Hotels (RLH) up 24.7%, 12.1%, and 5.4% respectively. Next week KeyTronic (KTCC), Clearwater Paper (CLW), and Avista (AVA) will report quarterly earnings.

April 26, 2011

2011-04-26T16:43:00.000-07:00

On April 15, 2011, Hecla Mining (HL) announced a fall of ground and a missing employee in their Lucky Friday mine. The fall of ground, which is the result of falling rock from the roof into the mine opening, happened in a contained section of the mine at 6,150 ft below the surface on a section that is 2,200 ft long. This recent Lucky Friday mine tragedy was the first accident in the mine in over twenty five years and eight million working hours. Hecla Mining provided daily video, picture and text updates during the rescue efforts to provide timely and detailed updates to the concerned community of Northern Idaho. On Easter Sunday, April 24, 2011, Hecla Mining CEO, Phil Baker announced after nine days of continuous rescue efforts that they believed hope to save Larry Marek’s life was gone. Shortly after this announcement Larry's body was found, confirming their speculation. Management has now turned their focus toward identifying the cause of the accident and preventing a future tragedy. Hart Capital Management's thoughts and prayers go out to Larry Marek’s family, friends and loved ones. Hecla Mining finished last week down 1.6% for the week and down 16% for the year.

Sterling Financial (STSA) announced a quarterly profit of $5.4 million, or $0.09 per common share, compared to a net loss of $88.6 million for the first quarter of 2010. Results were driven by a large reduction in provisions for loan losses, indicating increased confidence in loan quality. Provision for loan losses is an expense set aside as an allowance for bad loans that is revalued quarterly. A reduction in provisional expense will automatically increase accounting profitability. Sterling has decreased their provisional expense by 66% quarter over quarter and 89% year over year. Without this large decrease in provisional expense Sterling would not have posted a profit this quarter. Shares of Sterling traded up 7% for the week but remain negative for the year down 5.8%.

Hart Capital Management, Inc. Increases Coverage of Local Companies

2011-04-20T17:15:00.000-07:00

Due to an increase in interest about the Hart Capital Management Inland Northwest Composite and Index, (Hart Charts) Hart Capital Management, Inc. has increased coverage of these companies and the frequency of which information is made available. This expansion will be facilitated through this weekly updated blog. This blog will provide commentary on individual company developments and share price performance, as well as weekly moves in the Index itself.

The blog can be viewed at www.hartcap.blogspot.com or through a link on our website, www.hartcap.com. Viewers can request to be notified of new posts by submitting their email address at the end of this blog page. They will be sent a confirmation email, and once they have confirmed their email address they will receive weekly updates on what is happening with the 15 largest and most influential publicly traded companies in the Inland Northwest.

Quarterly Hart Charts will still be made available at www.hartcap.com, and will continue to include Index and Composite developments spanning the entire quarter. The weekly blog posts are not replacing, but are an addition to these publications.

Please subscribe at www.hartcap.blogspot.com to stay up to date with what is happening with the most influential companies in our area.

Hart Capital Inland Northwest Composite and Index

In 2006 Hart Capital Management, Inc. developed two industry indicators that graphically illustrate the relative strength and size of public companies based in the Inland Northwest. One indicator, called the Hart Capital Inland Northwest Composite tracks the aggregate market value of the companies included in the Composite. The other indicator, called the Hart Capital Inland Northwest Index tracks the same companies in an Index methodology similar to that of the Standard & Poor's 500.

Both the Composite and Index include the fifteen largest and most influential publicly traded companies in the Inland Northwest. Collectively, these fifteen companies have a market value exceeding $9 billion, and have dramatically outperformed the Standard & Poor's 500 over the past few years.

April 15, 2011

2011-04-20T17:06:00.000-07:00

Coeur d’Alene Mines (CDE) shares sharply declined this week after Bolivian President Evo Morales announced plans to expropriate mines. Since taking power in January 2006, Morales has seized gas fields, oil refineries, pension funds and telecommunications companies in an attempt to increase state control over Bolivia’s industry. Morales told reporters in La Plaz on April 12 that he plans to release a decree on May 1 overturning the privatization of state mining assets.

Coeur d’Alene Mines has recently announced that it received assurances from the Morales Administration in Bolivia that its San Bartolomé mine is not subject to any proposed nationalization in Bolivia. During a meeting Thursday with Bolivian Mining Minister Jose Pimentel, the Minister assured Coeur Manquiri and members of the Federation of Mining Workers Trade Union that Manquiri will not be nationalized,” said Humberto Rada, President of Coeur South America and Coeur Manquiri, the subsidiary of Coeur that operates San Bartolomé. Coeur d’Alene Mines has reported that all mining and silver productions are currently operating as normal.

Intermountain Community Bancorp (IMCB) finished the week at the top of the Hart Charts, up 16.67% from last week. Key Tronic Corp (KTCC) and Idaho Independent Bank (IIBK) finished next, up 3.73% and 1.73% respectively.

April 8, 2011

2011-04-15T15:54:00.000-07:00

Intermountain Community Bancorp (IMCB) announced after market hours on 4/6/2011 that they have entered into an agreement with Castle Creek Capital Fund, Stadium Capital Management, and other investors to raise $70 million in capital. They also plan to conduct a $5 million rights offering after the closing of the capital raise. Investors have agreed to purchase shares any existing shareholders do not purchase in the rights offering. IMCB will issue 70 million shares at $1.00 per share. Castle Creek and Stadium each will purchase approximately 17.7 million shares of common stock, for an aggregate purchase price of $35.4 million. Castle Creek will also receive three-year warrants to purchase up to one million additional shares of common stock at $1.25 per share. As a result, Castle Creek, Stadium, and other investors are expected to own approximately 23.5%, 22.3% and 9.9% respectively.

Hecla Mining Co (HL) and Coeur d'Alene Mines Corp (CDE) topped the Hart Charts this week, with Intermountain Community Bancorp (IMCB) and Idaho Independent Bank (IIBK) at the bottom.

April 1, 2011

2011-04-15T15:42:00.000-07:00

Even after recently posting several disappointing quarterly losses, Coldwater Creek (CWTR) finished the week as the top performer in the Hart Charts. Chairman and CEO Dennis Pence stated in Q4FY10 earnings release, “We view 2011 as a transitional year for the Company and we believe that we are taking the right steps to reinvigorate our brand and enhance our merchandise appeal. We expect to show the positive impact of these initiatives as we progress through the year." With the reorganization of product and merchandising areas Coldwater Creek may once again realign themselves with customers. The new product line up will hit stores for the first time this summer season. Investors' first chance to evaluate how customers respond to these changes will come late August during Coldwater Creek’s second quarter earnings release and conference call.

Itron (ITRI) and Potlach Corp (PCH) followed Coldwater Creek as Hart Charts leaders this week, as Intermountain Community Bancorp (IMCB) and Idaho Independent Bank (IIBK) were the bottom performers.

March 25, 2011

2011-04-15T15:35:00.000-07:00

Coeur d’Alene Mines (CDE) and Hecla Mining (HL) finished the week ending March 25, 2011 up 10% and 8% respectively, as gold prices hit a Comex record. Crude oil surpassed $105 a barrel last week, stimulated by turmoil in Libya and the Middle East. Investors worry that high oil prices could hinder our domestic economic recovery, adding to gold’s appeal.