1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
----------
FORM 11-K
(Mark One)
[x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED] For the transition period from __________________
to________________
Commission file number 0-7949
A. Full title of the plan and the address of the plan, if different from that of
the issuer named below:
FIRST HAWAIIAN, INC. FUTURE PLAN
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
FIRST HAWAIIAN, INC.
999 Bishop Street
Honolulu, Hawaii 96813
Telephone number: (808) 525-7000
2
FIRST HAWAIIAN, INC. FUTURE PLAN
INDEX OF FINANCIAL STATEMENTS AND SCHEDULES
PAGE
Report of Independent Accountants 2
Financial Statements:
Statements of net assets available for plan benefits
at December 31, 1997 and 1996 3
Statements of changes in net assets available for plan
benefits for the years ended December 31, 1997 and 1996 4
Notes to financial statements 5
Supplemental Schedules:
Item 27a - Schedule of assets held for investment purposes
at December 31, 1997 18
Item 27d - Schedule of reportable transactions
for the year ended December 31, 1997 19
1
3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Future Plan Committee
of First Hawaiian, Inc.
We have audited the accompanying statements of net assets available for plan
benefits of the Future Plan (the "Plan") of First Hawaiian, Inc. (the "Company")
as of December 31, 1997 and 1996, and the related statements of changes in net
assets available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 1997 and 1996, and the changes in net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of December 31, 1997, and reportable transactions for
the year then ended are presented for the purpose of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in Note 7 is presented for purposes of additional
analysis rather than to present the changes in net assets available for plan
benefits of each fund. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
/s/ Coopers & Lybrand L.L.P.
Honolulu, Hawaii
May 12, 1998
2
4
FIRST HAWAIIAN, INC. FUTURE PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1997 AND 1996
1997 1996
----------- -----------
ASSETS
Investments, at fair value (note 4) $10,502,504 $4,011,407
Cash -- 30
Contributions receivable from employer 1,384,773 1,311,813
Interest and dividends receivable -- 32,839
----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $11,887,277 $5,356,089
=========== ===========
The accompanying notes are an integral part of the financial statements.
3
5
FIRST HAWAIIAN, INC. FUTURE PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (NOTE 7)
FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996
1997 1996
----------- -----------
ADDITIONS
Employer contributions $ 5,616,761 $5,132,975
Net appreciation of investments (note 4) 636,815 147,192
Interest and dividend income 708,568 92,741
----------- -----------
6,962,144 5,372,908
----------- -----------
DEDUCTIONS
Payments made to participants 333,568 15,171
Administrative expenses 97,388 1,648
----------- -----------
430,956 16,819
----------- -----------
Increase in net assets 6,531,188 5,356,089
NET ASSETS AVAILABLE FOR PLAN BENEFITS
Beginning of year 5,356,089 --
----------- -----------
End of year $11,887,277 $5,356,089
=========== ===========
The accompanying notes are an integral part of the financial statements.
4
6
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES IN FINANCIAL STATEMENTS -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
RISKS AND UNCERTAINTIES -
The Plan provides for various investment options in any combination of
stocks, fixed income securities, mutual funds, and other investment
securities. Investment securities are exposed to various risks, such as
interest rate, market, and credit risks. Due to the level of risk associated
with certain investment securities, it is at least reasonably possible that
changes in the values of investment securities will occur in the near term
and that such changes could materially affect participants' account balances
and the amounts reported in the statement of net assets available for plan
benefits.
VALUATION OF INVESTMENTS AT FAIR VALUE -
Investments in securities (i.e., common stocks and mutual funds) traded on
national securities exchanges are valued at the last reported sales price on
the last business day of the year. Investments in such securities traded in
the over-the-counter market and listed securities for which no sale was
reported on that date are valued at the mean between the last reported bid
and asked prices.
Investments in the First Hawaiian Bank Investment Funds for Employee Benefit
Trusts are valued at the unit share value as determined by the funds. The
investment funds value their investments in securities using the methods
described above. The unit share value is determined by dividing net assets
of the fund by the number of unit shares.
Notes and mortgages are valued at the lower of the unpaid principal balance
or estimated realizable value.
The guaranteed investment contract fund is valued at the unit share value as
reported by the fund.
5
7
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
FUTURE PLAN STRUCTURE -
Prior to May 1, 1997, participants in the Plan could direct the Trustee to
invest their portion of the annual Company contribution or reallocate their
entire Future Plan Account to any of the following trust fund investments:
First Hawaiian Bank Equity Fund, First Hawaiian Bank Fixed Income Fund,
Guaranteed Investment Contract Fund, and First Hawaiian Bank Investment
Monitor Account ("IMA") Fund.
On May 1, 1997, the Company appointed Putnam Fiduciary Trust Company
("Putnam") as recordkeeper and Trustee of the Plan. Participants in the Plan
have the option of directing the Trustee to invest their portion of the
annual Company contribution or reallocate their entire Future Plan Account
to any one of the following funds: Putnam Voyager Fund, Putnam Income Fund,
Stable Value Fund, Putnam Vista Fund, First Hawaiian, Inc. Stock Fund,
Putnam International Growth Fund, Putnam S&P 500 Index Fund, Putnam Asset
Allocation - Conservative Portfolio, Putnam Asset Allocation - Balanced
Portfolio, Putnam Asset Allocation - Growth Portfolio, and Putnam New
Opportunities Fund.
OTHER -
Security transactions are accounted for on a trade-date basis. The cost of
investments sold is determined by the specific identification method.
Dividend income is recorded on the ex-dividend date. Income from other
investments is recorded as earned on an accrual basis.
In accordance with the policy of stating investments at fair value, net
unrealized appreciation or depreciation and net realized gains or losses for
the year are netted and reflected in the statement of changes in net assets
available for plan benefits.
6
8
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
2. DESCRIPTION OF PLAN
The Plan is a defined contribution plan established to cover the employees of
substantially all subsidiaries of the Company. The following description of the
Plan provides only general information. Participants should refer to the Plan
document for a more complete description of the Plan's provisions.
The Plan commenced operations effective January 1, 1996. The significant
provisions and benefits under the Plan are as follows:
PARTICIPATION: Employees who receive from the Company or
certain subsidiaries a regular stated
compensation other than a pension, severance
pay, retainer or fee under contract are
eligible under the Plan. Eligible employees
become members on the first day of the month
coinciding with or following the completion of
one year of service in which the employee
worked 1,000 hours and attained age 21 or the
date the employee becomes eligible.
VESTING OF BENEFITS: 100% after five years of service. Full vesting
is provided in case of a member's death,
retirement or disability regardless of years of
service.
CONTRIBUTIONS - COMPANY: 4.5% of member's pay up to the social security
taxable wage base (approximately $65,400 in
1997) plus 9% of member's pay over the social
security taxable wage base.
Additional contributions shall be made between
1996-2002 for certain eligible employees in an
amount equal to the percentage of a member's
compensation for such plan year as follows:
7
9
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
Additional
Age plus credited Participating
service as of Employer
December 31, 1995 Contribution
----------------- ------------
60-61 2%
62-63 3%
64-66 4%
67-69 5%
70+ 6%
CONTRIBUTIONS - PARTICIPANT: None.
LOANS FROM MEMBER ACCOUNTS: Not available.
TREATMENT OF FORFEITURES: Forfeitures are applied to reduce future
contributions and administrative expenses of
the Company. Forfeitures applied to reduce
contributions and administrative expenses of
the Company amounted to $150,917 in 1997. There
were no forfeitures for 1996.
BENEFIT PAYMENTS: After the applicable benefit condition is met,
employees may elect to receive their benefits
in a lump-sum distribution or as an annuity.
PLAN TERMINATION: In the event the Plan terminates, all amounts
credited to affected members' accounts shall
become fully vested and nonforfeitable and each
member or the beneficiary of any member shall
be entitled to receive his entire interest in
the Plan.
GENDER: The masculine pronoun, whenever used herein,
includes the feminine pronoun.
8
10
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENT PROGRAMS
The funds listed below were the investment options available to Plan
participants as of December 31, 1997. Any of these funds may be held in cash
pending investment or distribution.
(a) Putnam Voyager Fund
The objective of this fund is to provide maximum growth through a two-part
strategy. Holdings are generally split between two types of common stocks:
foundation stocks and opportunity stocks. Foundation stocks represent small to
medium-sized companies with the potential for above-average sales and earnings
growth. Opportunity stocks represent larger, well-established companies that
show near-term growth potential generally resulting from some change in the
company's business plan or competitive environment.
(b) Putnam Income Fund
The objective of this fund is to provide high current income. This fund
primarily invests in debt securities, including both government and corporate
obligations, preferred stocks and dividend-paying common stocks. A portion of
the portfolio may also include lower-rated bonds that may offer a higher yield
in compensation for increased risk.
(c) Stable Value Fund
The objective of this fund is to provide stability of principal while earning a
competitive rate of return. This fund invests in guaranteed investment contracts
("GICs") or similar contracts issued by insurance companies, banks and other
financial institutions. Investments are made only in companies that receive high
credit ratings from the major rating agencies.
This fund is a combination of shares of Putnam Stable Value Fund, shares of the
U.S. Trust Capital Preservation Fund, a Metropolitan Life Insurance Company
investment contract, and money market instruments. Participant contributions
made on or after May 1, 1997 were directed to Putnam Stable Value Fund. All
investments should be in Putnam Stable Value Fund by January 1, 1999.
9
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FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
(d) Putnam Vista Fund
The objective of this fund is to create long-term capital appreciation through
investing primarily in mid-cap growth stocks. This fund invests primarily in
common stocks of medium-sized companies with equity market capitalizations from
$300 million to $5 billion.
(e) First Hawaiian, Inc. Stock Fund
This fund consists of that portion of the assets of the Plan that participants
have elected to have invested, to the extent possible, in shares of common stock
of First Hawaiian, Inc. The portion of this fund not invested in shares will be
held in cash or cash equivalent investments pending the purchase of shares.
(f) Putnam International Growth Fund
The objective of this fund is to create long-term capital appreciation by
investing in a diversified portfolio of equity securities of companies located
in a country other than the United States. The fund's investments will normally
include common stocks, preferred stocks, securities convertible into common or
preferred stocks, and warrants to purchase common or preferred stocks.
(g) Putnam S&P 500 Index Fund
The objective of this fund is to closely approximate the return of the Standard
& Poor's 500 Composite Stock Price Index. The fund primarily invests in publicly
traded common stocks either directly or through collective investment trusts
having a similar investment objective.
(h) Putnam Asset Allocation Funds
The Putnam Asset Allocation Funds provide different investment objectives based
on asset allocation. Common stocks are normally the main type of the fund's
equity investments. However, the fund may also purchase preferred stocks,
convertible securities, warrants and other equity-type securities. The fund
invests its assets allocated to the fixed income securities in a diversified
portfolio including both U.S. and foreign government obligations and corporate
obligations. The following three investment portfolios are provided:
10
12
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
Conservative Portfolio
The objective of this fund is to provide long-term preservation of capital
by investing 35% of the Plan assets in equity securities and 65% of the Plan
assets in fixed income securities.
Balanced Portfolio
The objective of this fund is to maximize total return by investing 65% of
the Plan assets in equity securities and 35% of the Plan assets in fixed
income securities.
Growth Portfolio
The objective of this fund is to provide long-term capital appreciation by
investing 80% of the Plan assets in equity securities and 20% of the Plan
assets in fixed income securities.
(i) Putnam New Opportunities Fund
The objective of this fund is to provide long-term capital appreciation by
investing principally in common stocks of companies that possess above-average
long-term growth potential. Current dividend income is only an incidental
consideration. At present, Putnam has identified the following sectors of the
economy as having an above-average growth potential over the next three to five
years: personal communications, media/entertainment, medical technology/cost-
containment, environmental services, applied/advanced technology, personal
financial services, and value-oriented consuming.
11
13
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
4. INVESTMENTS
Plan assets were managed by First Hawaiian Bank under a trust agreement through
April 30, 1997. Beginning May 1, 1997, Plan assets were managed by Putnam. At
December 31, 1997 and 1996, investments of the Plan were as follows:
1997 1996
--------------------------- -------------------------
COST FAIR VALUE COST FAIR VALUE
------------ ------------ ----------- ------------
INVESTMENTS AT FAIR VALUE AS
DETERMINED BY QUOTED MARKET PRICE:
Common stocks:
First Hawaiian, Inc. $ -- $ -- $ 96,333 $ 119,350
Other -- -- 5,558 4,875
First Hawaiian Bank Investment
Funds for Employee Benefit
Trusts:
Pooled Equity Fund -- -- 869,439 940,421
Pooled Fixed Income Fund -- -- 273,985 283,345
Short-term cash investments:
Bishop Street Money Market
Fund, managed by First
Hawaiian Bank -- -- 36,673 36,673
Fidelity Institutional Cash -- -- 88,453 88,453
Portfolio
Mutual funds:
Putnam Voyager Fund 1,812,019 2,007,085 -- --
Putnam Income Fund 319,485 324,045 -- --
Putnam Stable Value Fund 426,665 426,665 -- --
Putnam Vista Fund 964,739 977,957 -- --
First Hawaiian, Inc. Stock Fund 387,122 432,164 -- --
Putnam International Growth 686,880 644,082 -- --
Fund
Putnam S&P 500 Index Fund 866,361 937,407 -- --
Putnam Asset Allocation -
Conservative Portfolio 1,075,113 1,049,771 -- --
Putnam Asset Allocation -
Balanced Portfolio 843,395 809,297 -- --
Putnam Asset Allocation -
Growth Portfolio 1,053,986 1,021,609 -- --
Putnam New Opportunities Fund 1,742,162 1,872,422 -- --
Fidelity Adv Equity Portfolio
Growth Fund -- -- 608,140 619,881
Fidelity Adv Growth -- -- 176,162 182,686
Opportunity Fund
Fidelity Adv Equity Portfolio
Income Fund -- -- 522,302 548,557
Fidelity Adv Strategic -- -- 342,928 323,586
Opportunities Fund
------------ ------------ ----------- ------------
10,177,927 10,502,504 3,019,973 3,147,827
------------ ------------ ----------- ------------
INVESTMENTS AT ESTIMATED FAIR VALUE:
Guaranteed investment contract
funds:
Westport Stable Return Fund -- -- 845,207 863,580
------------ ------------ ----------- ------------
-- -- 845,207 863,580
------------ ------------ ----------- ------------
Total investments $ 10,177,927 $ 10,502,504 $ 3,865,180 $ 4,011,407
============ ============ =========== ============
12
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FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1997 and 1996, the net appreciation of
investments, which consisted of realized and unrealized gains and losses, was
comprised of the following:
1997 1996
-------- --------
INVESTMENTS AT FAIR VALUE AS DETERMINED BY QUOTED MARKET
PRICE:
Common stocks:
First Hawaiian, Inc. $ 31,415 $ 23,017
Other 293 (683)
First Hawaiian Bank Investments for Employee Benefit
Trusts:
Pooled Equity Fund 92,919 70,985
Pooled Fixed Income Fund 2,420 9,388
Mutual funds 491,135 25,905
INVESTMENTS AT ESTIMATED FAIR VALUE:
Guaranteed investment contract funds 18,633 18,580
-------- --------
Net appreciation of investments $636,815 $147,192
======== ========
Dividend income earned from investments in First Hawaiian, Inc. common stock
amounted to $7,429 and $2,063 in 1997 and 1996, respectively.
5. TAX STATUS
The Plan constitutes a qualified trust under Section 401(a) of the Internal
Revenue Code and is therefore exempt from Federal income taxes under the
provisions of Section 501(a).
The Plan was amended, effective January 1, 1997, to incorporate the Small
Business Protection Act of 1996. The Plan's management received an updated tax
determination letter from the Internal Revenue Service in 1997.
13
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FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
6. PRIOR YEAR FINANCIAL INFORMATION
The statement of changes in net assets available for plan benefits includes
certain prior-year summarized comparative information in total but not by fund.
Such information does not include sufficient detail to constitute a presentation
in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the Plan's financial statements
as of and for the year ended December 31, 1996, from which the summarized
information was derived.
14
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FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
7. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
The following summarizes the changes in net assets available for plan benefits
for the year ended December 31, 1997.
FOR THE YEAR ENDED
DECEMBER 31, 1997
----------------------------------
MAY 1, 1997
THROUGH
JANUARY 1, 1997 DECEMBER 31,
THROUGH 1997
APRIL 30, 1997 (PUTNAM
(FIRST HAWAIIAN FIDUCIARY TRUST
BANK) COMPANY) TOTAL
---------------- ---------------- -----------
ADDITIONS
Employer contributions $ 1,429,617 $ 4,187,144 $ 5,616,761
Net appreciation of investments 43,674 593,141 636,815
Interest and dividend income 14,527 694,041 708,568
----------- ----------- -----------
1,487,818 5,474,326 6,962,144
----------- ----------- -----------
DEDUCTIONS
Payments made to participants 99,178 234,390 333,568
Administrative expenses 4,853 92,535 97,388
----------- ----------- -----------
104,031 326,925 430,956
----------- ----------- -----------
Increase in net assets 1,383,787 5,147,401 6,531,188
NET ASSETS AVAILABLE FOR PLAN BENEFITS
Beginning of year 5,356,089 -- 5,356,089
One-time transfer to Putnam (6,739,876) 6,739,876 --
----------- ----------- -----------
End of year $ -- $11,887,277 $11,887,277
=========== =========== ===========
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17
FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
7. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND (CONTINUED)
FIRST HAWAIIAN BANK -
FOR THE PERIOD JANUARY 1, 1997 THROUGH APRIL 30, 1997
-------------------------------------------------------------------------------
GUARANTEED
FIXED INVESTMENT
EQUITY INCOME CONTRACT IMA
FUND FUND FUND FUND TOTAL
----------- ----------- ----------- ----------- -----------
ADDITIONS
Employer contributions $ 401,750 $ 100,212 $ 294,382 $ 633,273 $ 1,429,617
Net appreciation (depreciation) of
investments 78,719 2,420 18,633 (56,098) 43,674
Interest and dividend income 5,278 1,104 2,859 5,286 14,527
----------- --------- ----------- ----------- -----------
485,747 103,736 315,874 582,461 1,487,818
----------- --------- ----------- ----------- -----------
DEDUCTIONS
Payments made to participants 15,807 7,607 35,830 39,934 99,178
Administrative expenses 1,411 396 886 2,160 4,853
----------- --------- ----------- ----------- -----------
17,218 8,003 36,716 42,094 104,031
----------- --------- ----------- ----------- -----------
Increase in net assets 468,529 95,733 279,158 540,367 1,383,787
NET ASSETS AVAILABLE FOR PLAN
BENEFITS
Beginning of period 1,441,346 385,161 1,145,383 2,384,199 5,356,089
Transfer (to) from other
funds, net (2,164) 3,203 (64,972) 63,933 --
One-time transfer to
Putnam (1,907,711) (484,097) (1,359,569) (2,988,499) (6,739,876)
----------- --------- ----------- ----------- -----------
End of period $ -- $ -- $ -- $ -- $ --
=========== ========= =========== =========== ===========
16
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FIRST HAWAIIAN, INC. FUTURE PLAN
NOTES TO FINANCIAL STATEMENTS
7. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND (CONTINUED)
PUTNAM FIDUCIARY TRUST COMPANY -
FOR THE PERIOD MAY 1, 1997 THROUGH DECEMBER 31, 1997
============================================================================================================================
STABLE FIRST
VOYAGER INCOME VALUE VISTA HAWAIIAN, INC.
FUND FUND FUND FUND STOCK FUND
----------- --------- ----------- --------- -------------
ADDITIONS
Employer contributions $ 755,294 $ 117,875 $ 229,607 $ 378,081 $174,648
Net appreciation (depreciation) of
investments 444,785 8,461 -- 14,417 45,908
Interest and dividend income 119,400 15,141 24,626 72,239 6,372
----------- --------- ----------- ---------- --------
1,319,479 141,477 254,233 464,737 226,928
----------- --------- ----------- ---------- --------
DEDUCTIONS
Payments made to participants 26,793 5,789 27,128 9,120 4,462
Administrative expenses 2,728 112 39,778 -- 1,275
----------- --------- ----------- ---------- --------
29,521 5,901 66,906 9,120 5,737
----------- --------- ----------- ---------- --------
Increase in net assets 1,289,958 135,576 187,327 455,617 221,191
NET ASSETS AVAILABLE FOR PLAN BENEFITS
Beginning of period -- -- -- -- --
Transfer (to) from other funds, net (2,017,694) (257,951) (1,073,579) 650,887 270,849
One-time transfer to Putnam 2,988,499 484,097 1,359,569 -- --
----------- --------- ----------- ---------- --------
End of period $ 2,260,763 $ 361,722 $ 473,317 $1,106,504 $492,040
=========== ========= =========== ========== ========
ASSET ASSET ASSET
INTERNATIONAL ALLOCATION - ALLOCATION - ALLOCATION -
GROWTH S&P 500 CONSERVATIVE BALANCED GROWTH
FUND INDEX FUND PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ----------- -----------
ADDITIONS
Employer contributions $292,021 $ 377,419 $ 359,382 $315,385 $ 431,880
Net appreciation (depreciation) of
investments (43,044) 72,710 (21,761) (31,504) (30,686)
Interest and dividend income 38,043 -- 59,488 63,077 74,238
-------- ---------- ---------- -------- ----------
287,020 450,129 397,109 346,958 475,432
-------- ---------- ---------- -------- ----------
DEDUCTIONS
Payments made to participants 8,021 9,137 68,291 32,403 18,466
Administrative expenses 3,406 2,920 36,467 -- 1,004
-------- ---------- ---------- -------- ----------
11,427 12,057 104,758 32,403 19,470
-------- ---------- ---------- -------- ----------
Increase in net assets 275,593 438,072 292,351 314,555 455,962
NET ASSETS AVAILABLE FOR PLAN BENEFITS
Beginning of period -- -- -- -- --
Transfer (to) from other funds, net 467,416 634,765 877,848 600,060 709,893
One-time transfer to Putnam -- -- -- -- --
-------- ---------- ---------- -------- ----------
End of period $743,009 $1,072,837 $1,170,199 $914,615 $1,165,855
======== ========== ========== ======== ==========
NEW MONEY
OPPORTUNITIES MARKET
FUND FUND TOTAL
----------- ----------- -----------
ADDITIONS
Employer contributions $ 745,914 $ 9,638 $ 4,187,144
Net appreciation (depreciation) of
investments 133,855 -- 593,141
Interest and dividend income 41,016 180,401 694,041
----------- ----------- -----------
920,785 190,039 5,474,326
----------- ----------- -----------
DEDUCTIONS
Payments made to participants 24,768 12 234,390
Administrative expenses 4,844 1 92,535
----------- ----------- -----------
29,612 13 326,925
----------- ----------- -----------
Increase in net assets 891,173 190,026 5,147,401
NET ASSETS AVAILABLE FOR PLAN BENEFITS
Beginning of period -- -- --
Transfer (to) from other funds, net 1,235,243 (2,097,737) --
One-time transfer to Putnam -- 1,907,711 6,739,876
----------- ----------- -----------
End of period $ 2,126,416 $ -- $11,887,277
=========== =========== ===========
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FIRST HAWAIIAN, INC. FUTURE PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
PAR VALUE,
MATURITY
VALUE,
MATURITY INTEREST UNITS,
IDENTITY OF ISSUER, BORROWER, LESSOR OR SIMILAR PARTY DATE RATE COLLATERAL OR SHARES COST FAIR VALUE
----------------------------------------------------- -------- -------- ----------- ------------ ------------ ------------
MUTUAL FUNDS:
Putnam Voyager Fund -- -- -- 105,351 $ 1,812,019 $ 2,007,085
Putnam Income Fund -- -- -- 45,576 319,485 324,045
Putnam Stable Value Fund -- -- -- 426,665 426,665 426,665
Putnam Vista Fund -- -- -- 82,389 964,739 977,957
First Hawaiian, Inc. Stock Fund -- -- -- 10,872 387,122 432,164
Putnam International Growth Fund -- -- -- 38,637 686,880 644,082
Putnam S&P 500 Index Fund -- -- -- 41,527 866,361 937,407
Putnam Asset Allocation - Conservative Portfolio -- -- -- 105,358 1,075,113 1,049,771
Putnam Asset Allocation - Balanced Portfolio -- -- -- 72,713 843,395 809,297
Putnam Asset Allocation - Growth Portfolio -- -- -- 82,856 1,053,986 1,021,609
Putnam New Opportunities Fund -- -- -- 38,479 1,742,162 1,872,422
------------ ------------
Total Assets Held For Investment Purposes $10,177,927 $10,502,504
============ ============
18
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FIRST HAWAIIAN, INC. FUTURE PLAN
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
DESCRIPTION COST OF FAIR VALUE
IDENTITY OF PARTY INVOLVED RELATIONSHIP OF ASSET PURCHASE PRICE SELLING PRICE ASSET OF ASSET (B)
---------------------------- ----------- --------------------- ----------------- ----------------- ------------- -------------
Bishop Street Funds (C) Money Market Fund $ 1,722,846 (A) $ -- $ 1,722,846 $ 1,722,846
-- 1,645,535 (A) 1,645,535 1,645,535
First Hawaiian Bank (C) Pooled Equity Fund
Investment
Fund For Employee (4,644 units) 650,000 (2) -- 650,000 650,000
Benefit
Trusts Pooled Fixed Income
(party-in-interest) Fund
(3,586 units 170,000 (2) -- 170,000 170,000
purchased)
(9,582 units -- 455,765 (1) 443,985 455,765
sold)
Fidelity Advisors Equity Mutual Fund 605,565 (5) -- 605,565 605,565
Portfolio Growth CLI & CLA -- 1,203,247 (1) 1,213,705 1,203,247
Fidelity Advisors Mid Mutual Fund 1,079,796 (4) -- 1,079,796 1,079,796
Capital Fund CLI -- 1,038,525 (1) 1,079,796 1,038,525
Fidelity Advisors Equity Mutual Fund -- 797,577 (2) 767,622 797,577
Portfolio Income CLI & CLA
Fidelity International Cash Money Market Fund 1,323,031 (A) -- 1,323,031 1,323,031
Portfolio Treasury I -- 1,411,484 (A) 1,411,484 1,411,484
Fidelity Advisors Strategic Mutual Fund -- 358,650 (1) 375,627 358,650
Opportunities Fund CLI
Westport Stable Return Fund Guaranteed 475,310 (3) -- 475,310 475,310
Investment
Contract Fund -- 1,357,522 (1) 1,320,517 1,357,522
Putnam Income Fund (D) Mutual Fund 272,506 (A) -- 272,506 272,506
-- 442,813 (A) 438,911 442,813
NET GAIN
IDENTITY OF PARTY INVOLVED (LOSS)
---------------------------- -------------
Bishop Street Funds $ --
--
First Hawaiian Bank
Investment
Fund For Employee --
Benefit
Trusts
(party-in-interest)
--
11,780
Fidelity Advisors Equity --
Portfolio Growth CLI & CLA (10,458)
Fidelity Advisors Mid --
Capital Fund CLI (41,271)
Fidelity Advisors Equity 29,955
Portfolio Income CLI & CLA
Fidelity International Cash --
Portfolio Treasury I --
Fidelity Advisors Strategic (16,977)
Opportunities Fund CLI
Westport Stable Return Fund --
37,005
Putnam Income Fund --
3,902
Note:
(A) Includes numerous transactions.
(B) Fair value at date of transaction.
(C) Fund is managed by First Hawaiian Bank, which is a subsidiary of First
Hawaiian, Inc.
(D) Fund is managed by Putnam, trustee of Plan.
(E) Plan sponsor.
(#) Indicates number of transactions.
19
21
FIRST HAWAIIAN, INC. FUTURE PLAN
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS (CONTINUED)
YEAR ENDED DECEMBER 31, 1997
DESCRIPTION COST OF FAIR VALUE
IDENTITY OF PARTY INVOLVED RELATIONSHIP OF ASSET PURCHASE PRICE SELLING PRICE ASSET OF ASSET (B)
----------------------------- ----------- ---------------- ----------------- -------------- ------------- -----------
Putnam Vista Fund (D) Mutual Fund $ 985,361 (A) $ -- $ 985,361 $ 985,361
Putnam Voyager Fund (D) Mutual Fund 877,028 (A) -- 877,028 877,028
Putnam New Opportunities (D) Mutual Fund 1,801,689 (A) -- 1,801,689 1,801,689
Fund
Putnam Asset Allocation - (D) Mutual Fund 1,096,733 (A) -- 1,096,733 1,096,733
Growth Portfolio
Putnam Asset Allocation - (D) Mutual Fund 892,065 (A) -- 892,065 892,065
Balanced Portfolio
Putnam Asset Allocation - (D) Mutual Fund 1,277,349 (A) -- 1,277,349 1,277,349
Conservative Portfolio -- 205,755 (A) 202,173 205,755
Putnam S&P 500 Index Fund (D) Mutual Fund 916,493 (A) -- 916,493 916,493
Putnam International Growth (D) Mutual Fund 723,748 (A) -- 723,748 723,748
Fund
First Hawaiian, Inc. Stock (E) Mutual Fund 397,358 (A) -- 397,358 397,358
Fund
Putnam Stable Value Fund (D) Mutual Fund 354,528 (A) -- 354,528 354,528
-- 1,314,006 (A) 1,314,006 1,314,006
Putnam Money Market Fund (D) Money Market Fund -- 2,097,762 (A) 2,097,762 2,097,762
NET GAIN
IDENTITY OF PARTY INVOLVED (LOSS)
----------------------------- ------------
Putnam Vista Fund $ --
Putnam Voyager Fund --
Putnam New Opportunities --
Fund
Putnam Asset Allocation - --
Growth Portfolio
Putnam Asset Allocation - --
Balanced Portfolio
Putnam Asset Allocation - --
Conservative Portfolio 3,582
Putnam S&P 500 Index Fund --
Putnam International Growth --
Fund
First Hawaiian, Inc. Stock --
Fund
Putnam Stable Value Fund --
--
Putnam Money Market Fund --
Note:
(A) Includes numerous transactions.
(B) Fair value at date of transaction.
(C) Fund is managed by First Hawaiian Bank, which is a subsidiary of First
Hawaiian, Inc.
(D) Fund is managed by Putnam, trustee of Plan.
(E) Plan sponsor.
(#) Indicates number of transactions.
20
22
REQUIRED INFORMATION
First Hawaiian, Inc. Future Plan ("Plan") is subject to the Employee Retirement
Income Security Act of 1974 ("ERISA"). Therefore, in lieu of the requirements of
Items 1-3 of Form 11-K, the financial statements and schedules of the Plan for
the two fiscal years ended December 31, 1997 and 1996, which have been prepared
in accordance with the financial reporting requirements of ERISA, are
incorporated herein by this reference.
SIGNATURES
The Plan: Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
FIRST HAWAIIAN, INC. FUTURE PLAN
Date June 12, 1998 By /s/ SHEILA M. SUMIDA
---------------------------- ------------------------------------
Sheila M. Sumida
Plan Administrator
23
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statement of
First Hawaiian, Inc. and Subsidiaries on Form S-8 (File No. 333-22107) of our
report dated May 12, 1998, on our audits of the financial statements and
schedules of the First Hawaiian, Inc. Future Plan as of and for the years ended
December 31, 1997 and 1996, which report is included in this Annual Report on
Form 11-K.
/s/ Coopers & Lybrand L.L.P.
Honolulu, Hawaii
June 11, 1998
