SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
_X_ Annual report pursuant to Section 15(d) of the Securities Exchange
Act of 1934
(NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996)
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: 1-11794
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below EWB RETIREMENT PLAN
B. Name of the issuer of the securities held pursuant to the plan and
the address of its principal executive office E.W. BLANCH HOLDINGS,
INC., 500 N. AKARD, DALLAS, TEXAS 75201
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.
EWB RETIREMENT PLAN
-----------------------------------
(Name of Plan)
Date JULY 14, 1998 By /s/ IAN DAVID PACKER
-------------------------------- -----------------------------------
(Signature)
IAN DAVID PACKER
-----------------------------------
(Print Name)
AUDITED FINANCIAL STATEMENTS AND SCHEDULES
EWB RETIREMENT PLAN
YEARS ENDED DECEMBER 31, 1997 AND 1996
EWB Retirement Plan
Audited Financial Statements and Schedules
Years ended December 31, 1997 and 1996
CONTENTS
Report of Independent Auditors.................................................1
Audited Financial Statements and Schedules
Statement of Net Assets Available for Benefits.................................3
Statement of Changes in Net Assets Available for Benefits......................5
Statement of Net Assets Available for Benefits.................................7
Statement of Changes in Net Assets Available for Benefits......................9
Notes to Financial Statements.................................................11
Item 27(a) - Schedule of Assets Held for Investment Purposes..................16
Item 27(d) - Schedule of Reportable Transactions..............................22
Report of Independent Auditors
The Board of Directors
EWB Retirement Plan
We have audited the accompanying statements of net assets available for benefits
of the EWB (formerly E. W. Blanch Co.) Retirement Plan (the Plan) as of December
31, 1997 and 1996, and the related statement of changes in net assets available
for benefits for the year ended December 31, 1997. 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.
Except as explained in the following paragraph, 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.
As permitted by 29 CFR 2520.103-8 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, investment assets held by Piper Trust Company, the trustee
of the Plan for the year ended December 31, 1996, and transactions in those
assets were excluded from the scope of our audit of the Plan's 1996 financial
statements, except for comparing the information provided by the trustee, with
the related information included in the financial statements.
Because of the significance of the information that we did not audit, we are
unable to, and do not, express an opinion on the Plan's financial statements as
of December 31, 1996. The form and content of the information included in the
1996 financial statements, other than that derived from the information
certified by the trustee, have been audited by us and, in our opinion, are
presented in compliance with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974.
In our opinion, the financial statements, referred to above, of the EWB
Retirement Plan as of December 31, 1997, and for the year then ended present
fairly, in all material respects, the net assets available for benefits of the
EWB Retirement Plan as of December 31, 1997, and changes in its net assets
available for benefits for the year then ended in conformity with generally
accepted accounting principles.
Our audit of the Plan's financial statements as of and for the year ended
December 31, 1997, was made for the purpose of forming an opinion on the
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. These supplemental schedules are the responsibility of the Plan's
management. The supplemental schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements for the year
ended December 31, 1997, and in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
July 9, 1998
EWB Retirement Plan
Statement of Net Assets Available for Benefits
December 31, 1997
TWENTIETH TWENTIETH AMERICAN AMERICAN
CENTURY CENTURY CENTURY CENTURY
ULTRA VISTA BALANCED VALUE
FUND FUND FUND FUND
-----------------------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $120,982 $37,473 $3,787,075 $211,504
EWBH common stock - - - -
Self-directed funds:
Mutual funds - - - -
Bonds - - - -
Common stocks - - - -
Preferred stocks - - - -
U.S. government obligations - - - -
International equities - - - -
Participant loans - - - -
-----------------------------------------------------------------
Total investments 120,982 37,473 3,787,075 211,504
Employer contribution receivable 8,708 3,815 101,611 8,717
Participant contribution receivable 932 261 4,112 793
-----------------------------------------------------------------
Total assets 130,622 41,549 3,892,798 221,014
-----------------------------------------------------------------
LIABILITIES
Accrued benefit payments - - - -
=================================================================
Net assets available for benefits $130,622 $41,549 $3,892,798 $221,014
=================================================================
SEE ACCOMPANYING NOTES.
TWENTIETH
TWENTIETH CENTURY STRATEGIC STRATEGIC STRATEGIC BENHAM SCOUT I PUTNAM
CENTURY INT'L INT'L ALLOCATION: ALLOCATION: ALLOCATION: PRIME MONEY MONEY BENHAM NEW
GROWTH DISCOVERY CONSERVATIVE MODERATE AGGRESSIVE MARKET MARKET GNMA OPPORTUNITIES JANUS
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------
$2,142,889 $111,092 $46,327 $20,982 $38,505 $869,163 $4,726 $596,560 $7,331,752 $6,564,207
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
2,142,889 111,092 46,327 20,982 38,505 869,163 4,726 596,560 7,331,752 6,564,207
84,171 9,372 503 1,480 3,652 104,967 - 22,273 317,670 240,259
4,707 823 - 136 284 1,497 - 1,228 15,756 12,897
- -----------------------------------------------------------------------------------------------------------------------------
2,231,767 121,287 46,830 22,598 42,441 975,627 4,726 620,061 7,665,178 6,817,363
- -----------------------------------------------------------------------------------------------------------------------------
- - - - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
$2,231,767 $121,287 $46,830 $22,598 $42,441 $975,627 $4,726 $620,061 $7,665,178 $6,817,363
=============================================================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
BARCLAYS UNRESTRICTED RESTRICTED
EQUITY EWBH EWBH SELF- PARTICIPANT
INDEX STOCK STOCK DIRECTED LOAN
FUND FUND FUND FUND FUND TOTAL
- -----------------------------------------------------------------------------------
$229,661 $ - $ - $ - $ - $22,112,898
- 6,048,578 129,737 - - 6,178,315
- - - 1,827,229 - 1,827,229
- - - 8,000 - 8,000
- - - 2,866,165 - 2,866,165
- - - 26,250 - 26,250
- - - 231,653 - 231,653
- - - 466,912 - 466,912
- - - - 1,009,801 1,009,801
- -----------------------------------------------------------------------------------
229,661 6,048,578 129,737 5,426,209 1,009,801 34,727,223
12,543 - 1,114,285 - - 2,034,026
652 - 4,467 - - 48,545
- -----------------------------------------------------------------------------------
242,856 6,048,578 1,248,489 5,426,209 1,009,801 36,809,794
- -----------------------------------------------------------------------------------
- 33,832 - - - 33,832
- -----------------------------------------------------------------------------------
$242,856 $6,014,746 $1,248,489 $5,426,209 $1,009,801 $36,775,962
===================================================================================
EWB Retirement Plan
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1997
PJIT
INSTITUTIONAL VANGUARD FIDELITY TWENTIETH TWENTIETH
MONEY FIXED ASSET VANGUARD CENTURY CENTURY
MARKET INCOME MANAGER INTERNATIONAL ULTRA VISTA
FUND FUND FUND FUND FUND FUND
-------------------------------------------------------------------------------------
Net assets available for benefits at
beginning of year $1,196,511 $483,380 $3,386,342 $1,673,285 $ - $ -
Additions:
Employer contributions - - - - 8,708 3,815
Voluntary employee contributions - - - - 14,723 5,621
Employee rollover from other plans - - - - 7,913 7,377
-------------------------------------------------------------------------------------
Total contributions - - - - 31,344 16,813
Net (depreciation) appreciation in fair
value of investments - - - - (19,767) (1,519)
Interest and dividends 153 185 249 83 24,805 2,278
-------------------------------------------------------------------------------------
Net investment income 153 185 249 83 5,038 759
Deductions:
Benefit payments - - - - - -
Administrative expenses - - - - (278) (135)
Life insurance premiums - - - - - -
-------------------------------------------------------------------------------------
- - - - (278) (135)
Interfund transfers (1,196,664) (483,565) (3,386,591) (1,673,368) 94,518 24,112
-------------------------------------------------------------------------------------
(Decrease) increase in net assets
available for benefits (1,196,511) (483,380) (3,386,342) (1,673,285) 130,622 41,549
-------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ - $ - $ - $ - $130,622 $41,549
=====================================================================================
SEE ACCOMPANYING NOTES.
TWENTIETH TWENTIETH BENHAM
AMERICAN AMERICAN CENTURY CENTURY STRATEGIC STRATEGIC STRATEGIC PRIME SCOUT I
CENTURY CENTURY INT'L INT'L ALLOCATION: ALLOCATION: ALLOCATION: MONEY MONEY BENHAM
BALANCED VALUE GROWTH DISCOVERY CONSERVATIVE MODERATE AGGRESSIVE MARKET MARKET GNMA
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
101,611 8,717 84,171 9,372 503 1,480 3,652 104,967 - 22,273
200,351 13,730 181,260 13,777 68 2,290 5,377 131,166 - 44,319
96,785 3,468 3,890 12,222 65,019 342 9,237 34,769 - 1,762
- ----------------------------------------------------------------------------------------------------------------------
398,747 25,915 269,321 35,371 65,590 4,112 18,266 270,902 - 68,354
215,400 (6,382) 73,090 (5,617) (1,719) 1,087 2,550 - - 11,670
380,279 32,981 294,447 6,246 3,573 1,141 1,814 66,857 - 42,328
- ----------------------------------------------------------------------------------------------------------------------
595,679 26,599 367,537 629 1,854 2,228 4,364 66,857 - 53,998
(327,559) (449) (79,546) - - (8,069) - (818,864) - (42,323)
(5,560) (320) (4,525) - (22) (60) (176) (3,749) - (1,649)
(3,624) - (2,058) - - - - (21,523) - (386)
- ----------------------------------------------------------------------------------------------------------------------
(336,743) (769) (86,129) - (22) (8,129) (176) (844,136) - (44,358)
3,235,115 169,269 1,681,038 85,287 (20,592) 24,387 19,987 1,482,004 4,726 542,067
- ----------------------------------------------------------------------------------------------------------------------
3,892,798 221,014 2,231,767 121,287 46,830 22,598 42,441 975,627 4,726 620,061
- ----------------------------------------------------------------------------------------------------------------------
$3,892,798 $221,014 $2,231,767 $121,287 $46,830 $22,598 $42,441 $ 975,627 $4,726 $620,061
======================================================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
PUTNAM BARCLAYS UNRESTRICTED RESTRICTED
NEW EQUITY EWBH EWBH SELF- PARTICIPANT UNALLOCATED
OPPORTUNITIES JANUS INDEX STOCK STOCK DIRECTED LOAN EMPLOYER
FUND FUND FUND FUND FUND FUND FUND CONTRIBUTION TOTAL
- --------------------------------------------------------------------------------------------------------------------
$6,029,868 $5,315,876 $ - $2,485,198 $1,063,801 $4,403,960 $ 963,147 $258,574 $27,259,942
317,670 240,259 12,543 - 1,114,285 - - - 2,034,026
629,658 470,414 11,856 - 173,735 - - - 1,898,345
45,812 21,855 2,692 21,169 - - - - 334,312
- --------------------------------------------------------------------------------------------------------------------
993,140 732,528 27,091 21,169 1,288,020 - - - 4,266,683
1,255,551 141,950 35,836 2,533,181 26,388 851,148 - - 5,112,847
163,118 1,091,323 1,234 59,157 6,610 162,180 84,534 - 2,425,575
- --------------------------------------------------------------------------------------------------------------------
1,418,669 1,233,273 37,070 2,592,338 32,998 1,013,328 84,534 - 7,538,422
(327,838) (282,519) (514) (217,769) (25,287) (21,888) (53,900) - (2,206,525)
(17,466) (12,052) (315) (1,036) (203) (272) - - (47,818)
(3,349) (3,305) - (497) - - - - (34,742)
- --------------------------------------------------------------------------------------------------------------------
(348,653) (297,876) (829) (219,302) (25,490) (22,160) (53,900) - (2,289,085)
(427,846) (166,438) 179,524 1,135,343 (1,110,840) 31,081 16,020 (258,574) -
- --------------------------------------------------------------------------------------------------------------------
1,635,310 1,501,487 242,856 3,529,548 184,688 1,022,249 46,654 (258,574) 9,516,020
- --------------------------------------------------------------------------------------------------------------------
$7,665,178 $6,817,363 $242,856 $6,014,746 $1,248,489 $5,426,209 $1,009,801 $ - $36,775,962
====================================================================================================================
EWB Retirement Plan
Statement of Net Assets Available for Benefits
December 31, 1996
PJIT
INSTITUTIONAL VANGUARD FIDELITY
MONEY FIXED ASSET
MARKET INCOME MANAGER JANUS
FUND FUND FUND FUND
--------------------------------------------------------------------
ASSETS
Investments, at fair value:
Mutual funds $1,187,025 $502,180 $3,525,156 $5,146,356
Common stock - - - -
Self-directed funds:
Mutual funds - - - -
Bonds - - - -
Common stocks - - - -
Preferred stocks - - - -
U.S. government obligations - - - -
International equities - - - -
Other - - - -
Participant loans - - - -
--------------------------------------------------------------------
Total investments 1,187,025 502,180 3,525,156 5,146,356
Accrued investment income 4,347 4,903 7 26
--------------------------------------------------------------------
1,191,372 507,083 3,525,163 5,146,382
Employer contribution receivable - - - 219,636
Due from other funds 10,104 - - -
Other 92 222 269 328
--------------------------------------------------------------------
Total assets 1,201,568 507,305 3,525,432 5,366,346
--------------------------------------------------------------------
LIABILITIES
Accrued benefit payments (5,057) (3,913) (49,868) (38,943)
Due to other funds - (20,012) (89,222) (11,527)
--------------------------------------------------------------------
Total liabilities (5,057) (23,925) (139,090) (50,470)
--------------------------------------------------------------------
Net assets available for benefits $1,196,511 $483,380 $3,386,342 $5,315,876
====================================================================
SEE ACCOMPANYING NOTES.
PUTNAM UNRESTRICTED RESTRICTED
NEW VANGUARD EWB EWB SELF- PARTICIPANT UNALLOCATED
OPPORTUNITIES INTERNATIONAL STOCK STOCK DIRECTED LOAN EMPLOYER
FUND FUND FUND FUND FUND FUND CONTRIBUTION TOTAL
- ----------------------------------------------------------------------------------------------------------------------------
$5,623,672 $1,722,359 $ - $ - $ - $ - $ - $17,706,748
- - 2,514,436 72,494 - - - 2,586,930
- - - - 1,892,465 - - 1,892,465
- - - - 141,668 - - 141,668
- - - - 1,321,347 - - 1,321,347
- - - - 25,375 - - 25,375
- - - - 384,658 - - 384,658
- - - - 517,817 - - 517,817
- - - - 50,929 - - 50,929
- - - - 6,577 964,647 - 971,224
- ----------------------------------------------------------------------------------------------------------------------------
5,623,672 1,722,359 2,514,436 72,494 4,340,836 964,647 - 25,599,161
89 7 83 17 17,960 - - 27,439
- ----------------------------------------------------------------------------------------------------------------------------
5,623,761 1,722,366 2,514,519 72,511 4,358,796 964,647 - 25,626,600
299,996 - - 991,924 45,164 - 258,574 1,815,294
163,836 - - 1,164 - - - 175,104
406 (9) 148 - - (1,500) - (44)
- ----------------------------------------------------------------------------------------------------------------------------
6,087,999 1,722,357 2,514,667 1,065,599 4,403,960 963,147 258,574 27,616,954
- ----------------------------------------------------------------------------------------------------------------------------
(58,131) (11,512) (12,686) (1,798) - - - (181,908)
- (37,560) (16,783) - - - - (175,104)
- ----------------------------------------------------------------------------------------------------------------------------
(58,131) (49,072) (29,469) (1,798) - - - (357,012
- ----------------------------------------------------------------------------------------------------------------------------
$6,029,868 $1,673,285 $2,485,198 $1,063,801 $4,403,960 $963,147 $258,574 $27,259,942
============================================================================================================================
EWB Retirement Plan
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1996
PJIT
INSTITUTIONAL VANGUARD FIDELITY
MONEY FIXED ASSET
MARKET INCOME MANAGER JANUS
FUND FUND FUND FUND
------------------------------------------------------------
Net assets available for benefits at beginning of year $ 961,850 $1,198,186 $3,645,737 $3,657,018
Additions:
Employer contributions - - - 219,636
Voluntary employee contributions 49,865 67,602 233,896 350,670
Employee rollover from other plans 119 2,693 29,218 85,855
Transfer from the George Companies Profit Sharing
and Retirement Plan 380,938 89,921 137,326 209,848
Transfer from the InsGroup Services Company Profit
Sharing Plan 12,345 - - 13,383
------------------------------------------------------------
Total contributions 443,267 160,216 400,440 879,392
Net (depreciation) appreciation in fair value of
investments - (23,890) 322,260 642,375
Interest and dividends 59,082 83,113 156,322 167,442
------------------------------------------------------------
Net investment income 59,082 59,223 478,582 809,817
Deductions:
Benefit payments (306,470) (387,220) (379,405) (489,144)
Administrative expenses (4,474) (4,733) (16,678) (19,787)
Life insurance premiums (216) (1,059) (3,738) (3,897)
------------------------------------------------------------
(311,160) (393,012) (399,821) (512,828)
Interfund transfers 43,472 (541,233) (738,596) 482,477
------------------------------------------------------------
Increase (decrease) in net assets available for benefits 234,661 (714,806) (259,395) 1,658,858
------------------------------------------------------------
Net assets available for benefits at end of year $1,196,511 $ 483,380 $3,386,342 $5,315,876
============================================================
SEE ACCOMPANYING NOTES.
PUTNAM UNRESTRICTED RESTRICTED
NEW VANGUARD EWBH EWBH SELF- PARTICIPANT UNALLOCATED
OPPORTUNITIES INTERNATIONAL STOCK STOCK DIRECTED LOAN EMPLOYER
FUND FUND FUND FUND FUND FUND CONTRIBUTION TOTAL
- --------------------------------------------------------------------------------------------------------------------------------
$3,842,286 $1,862,564 $2,263,486 $ 715,578 $4,612,993 $702,755 $ - $23,462,453
299,996 - - 991,924 45,164 - 258,574 1,815,294
466,545 152,664 - 157,279 83,776 - - 1,562,297
172,597 36,014 149,296 - - - - 475,792
524,286 58,601 27,840 - 55,514 27,195 - 1,511,469
38,030 - - - 10,294 - - 74,052
- --------------------------------------------------------------------------------------------------------------------------------
1,501,454 247,279 177,136 1,149,203 194,748 27,195 258,574 5,438,904
534,808 139,981 (334,343) 7,283 522,926 - - 1,811,400
26,514 56,954 56,556 8,920 155,014 - - 769,917
- --------------------------------------------------------------------------------------------------------------------------------
561,322 196,935 (277,787) 16,203 677,940 - - 2,581,317
(616,849) (458,383) (283,553) (41,110) (1,060,616) (57,424) - (4,080,174)
(22,569) (8,644) (18,184) (3,527) (4,000) - - (102,596)
(6,464) (2,637) (673) - (21,278) - - (39,962)
- --------------------------------------------------------------------------------------------------------------------------------
(645,882) (469,664) (302,410) (44,637) (1,085,894) (57,424) - (4,222,732)
770,688 (163,829) 624,773 (772,546) 4,173 290,621 - -
- --------------------------------------------------------------------------------------------------------------------------------
2,187,582 (189,279) 221,712 348,223 (209,033) 260,392 258,574 3,797,489
- --------------------------------------------------------------------------------------------------------------------------------
$6,029,868 $1,673,285 $2,485,198 $1,063,801 $4,403,960 $963,147 $258,574 $27,259,942
================================================================================================================================
EWB Retirement Plan
Notes to Financial Statements
December 31, 1997
1. DESCRIPTION OF THE PLAN
The following description of the EWB (formerly E. W. Blanch Co.) Retirement Plan
(the Plan) provides only general information. Participants should refer to the
Summary Plan Description for a more complete description of the Plan's
provisions.
GENERAL
The Plan is a defined contribution plan which was established in September 1985.
An employee becomes eligible to participate in the Plan on the January 1
following his or her employment date, provided employment has not been
terminated prior to such date. An employee must complete a minimum of 1,000
hours of service during each Plan year and be employed on December 31 of that
year to receive an employer contribution. The Plan is subject to the provisions
of the Employee Retirement Income Security Act of 1974 (ERISA).
Effective January 1, 1996 and April 1, 1996, the George Companies Profit Sharing
and Retirement Plan and the InsGroup Services Company Profit-Sharing Plan,
respectively, were merged into the E. W. Blanch Co. Retirement Plan.
CONTRIBUTIONS
Eligible participants may enter into a Salary Reduction Agreement whereby a
percentage of pretax compensation per payroll period may be withheld and
contributed to the Plan. For the 1997 and 1996 Plan years, the maximum salary
reduction that could be contributed to the Plan per participant could not exceed
the lesser of 10% of pretax compensation or $9,500. Additionally, participants
may also contribute amounts representing distributions from other qualified
defined benefit or defined contribution plans.
E. W. Blanch Holdings, Inc. (the Company) may make an annual contribution to all
eligible participants' accounts equal to 7.5% of total base earnings. The
Company may direct the trustee to invest up to 50% of the employer contribution
in the Restricted EWBH Stock Fund, which is restricted from reallocation to
other funds until after two full calendar quarters following the quarter in
which the funds are contributed. This option was exercised for both the 1997 and
1996 contributions at the full 50%. The remainder of the employer contribution
is allocated based on the participants' investment elections in effect at the
end of the Plan year.
EWB Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
Total contribution to a participant's account in any Plan year is limited to the
lesser of $30,000 or 25% of the participant's total compensation.
The employer contribution declared for the 1996 plan year and paid in 1997 was
directed to the investment funds available through American Century based on
participants' investment elections for the 1997 Plan year.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions and
allocations of (a) the Company's contributions and (b) Plan earnings, and is
charged with an allocation of administrative expenses. Allocations are based on
participant earnings or account balances, as defined. Forfeited balances of
terminated employees' nonvested accounts are used to reduce future Company
contributions. Nonvested accounts forfeited in 1997 and 1996 totaled $97,249 and
$69,101, respectively. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's account.
VESTING
Participants are immediately vested in their contributions plus actual earnings
thereon. For participants hired on or after April 1, 1993, vesting in the
Company contribution portion of their accounts plus actual earnings thereon
occurs after five years of continuous service with at least 1,000 hours of
service in each Plan year. Participants hired prior to April 1, 1993 are 100%
vested in Company contributions.
Participants of plans merged into the EWB Retirement Plan during 1996 were
immediately 100% vested with respect to employer contributions up to the date of
merger. Vesting of subsequent employer contributions is subject to the five
years of continuous service requirement.
EWB Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
INVESTMENT OPTIONS
Other than the 50% of employer contributions initially directed to E. W. Blanch
Holdings, Inc. (EWBH) stock, participants may direct 100% of all contributions
in 5% increments to various mutual funds and E. W. Blanch Holdings, Inc. (EWBH)
stock; the participant may also elect to self-direct such amounts to other
investments, subject to certain restrictions.
Participants may change their investment options quarterly.
PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts an amount not to exceed 50% of
the previous quarter's vested account balance up to a maximum loan of $50,000.
Loan transactions are treated as a transfer from (to) the investment fund to
(from) the loan fund. Loans must be repaid within five years through either
monthly payroll deductions of principal and interest or through direct
remittance of the outstanding balance by the borrowing participant. Loans are
secured by the balance in the participant's account and bear interest at rates
comparable to rates charged by persons in the business of lending money.
PAYMENT OF BENEFITS
Upon termination of service, disability, or retirement, a participant will
receive a lump-sum amount equal to the vested value of his or her account. In
the case of retirement, the distribution may be delayed until some time after
normal retirement age. In the event of death, the distribution will be made to a
named beneficiary.
Prior to 1997, participants could invest in life insurance policies. Payments
made by the trustee for premiums on such policies shall be considered to be
distributions from the participant's account. The cash surrender value of these
allocated insurance contracts is excluded from the net assets of the Plan.
EWB Retirement Plan
Notes to Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Plan are presented on the accrual basis.
Investments of the Plan are valued at published market quotes or cost, which
approximates fair market value, if there is no active market. Participant notes
receivable are valued at cost which approximates fair value.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
Certain 1996 amounts have been reclassified to conform to the 1997 presentation.
3. INVESTMENTS
The following investments represented more than 5% of the fair value of net
assets available for benefits as of December 31:
1997 1996
-----------------------------
American Century Balanced Fund $3,787,075 $ -
Twentieth Century International Growth Fund 2,142,889 -
Putnam New Opportunities Fund 7,331,752 5,103,561
Janus Fund 6,564,207 5,146,356
PJIT Institutional Money Market Fund - 2,617,685
Fidelity Asset Manager Fund - 3,515,282
Vanguard International Fund - 1,716,352
EWBH Stock 7,619,576 2,685,702
4. PLAN TERMINATION
Although the Company has not expressed any intent to terminate the Plan
agreement, it may do so at any time subject to the provisions of ERISA. In the
event of Plan termination, participants will become 100% vested in their
accounts.
EWB Retirement Plan
Notes to Financial Statements (continued)
5. SERVICE PROVIDERS
Effective January 1, 1997, the Plan Sponsor appointed American Century to
succeed Piper (Piper) Trust Company as the Plan's custodian.
American Century (formerly Piper) has been granted discretionary authority
concerning purchases and sales of investments in the trust fund. Administrative
expenses related to these service organizations are paid from the participants'
accounts.
6. PARTY-IN-INTEREST TRANSACTIONS
The Plan engaged in transactions including the acquisition or disposition of
units of participation in mutual funds of American Century, Piper and stock of
E. W. Blanch Holdings, Inc. which are each parties-in-interest with respect to
the Plan.
7. TAX STATUS
The plan administrator is not aware of any course of action or series of events
that have occurred that might adversely affect the Plan's qualified status.
EWB Retirement Plan
Item 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1997
SHARE OR CURRENT
SECURITY ISSUER AND DESCRIPTION FACE AMOUNT COST VALUE
- --------------------------------------------------------------------------------------------------------
Mutual Funds:
Twentieth Century Ultra* 4,432 $ 141,013 $ 120,982
Twentieth Century Vista* 3,017 39,152 37,473
American Century Balanced* 208,769 3,605,164 3,787,075
American Century Value* 30,432 218,383 211,504
Twentieth Century International Growth* 261,647 2,099,333 2,142,889
Twentieth Century International Discovery* 13,631 116,709 111,092
Strategic Allocation: Conservative* 8,741 48,093 46,327
Strategic Allocation: Moderate* 3,605 20,287 20,982
Strategic Allocation: Aggressive* 6,386 36,158 38,505
American Century - Benham Prime Money Market* 869,163 869,163 869,163
Scout Prime I - UMB* 4,726 4,726 4,726
American Century - Benham GNMA* 55,858 584,999 596,560
Putnam New Opportunities 150,704 6,191,544 7,331,752
Janus 263,623 6,508,599 6,564,207
Barclay Equity Index 10,055 195,803 229,661
--------------------------------
Total Mutual Funds 20,679,126 22,112,898
Common Stock:
E. W. Blanch Holdings, Inc.* 179,404 2,784,583 6,178,315
Mutual Funds (self-directed):
Baron Asset Fund 1,037 50,000 50,311
Capital Income Builder Fund 1,496 50,051 70,142
Fundamental Investors American Fund 5,368 108,095 147,079
Greenspring Fund, Inc. 3,004 58,161 60,198
Mutual Beacon Fund 8,228 103,558 116,183
Mutual Discovery Fund 705 12,182 13,309
N & B Guardian Neuberger & Berman 2,012 41,520 52,114
Oakmark Fund - Harris Assoc. Investment Tr 500 10,712 20,217
Oppenheimer Discovery Fund 956 33,028 46,008
Putnam New Opportunities Fund 342 15,468 16,626
EWB Retirement Plan
Item 27(a) - Schedule of Assets Held for Investment Purposes (continued)
SHARE OR CURRENT
SECURITY ISSUER AND DESCRIPTION FACE AMOUNT COST VALUE
- --------------------------------------------------------------------------------------------------------
Mutual Funds (self-directed) (continued):
Schwab Money Market Fund 745,697 $ 745,697 $ 745,697
Schwab Value Advantage Money Fund 214,108 214,108 214,108
Scout Prime I 10,605 10,605 10,605
Sound Shore Fund, Inc. 2,862 77,402 81,769
Third Avenue Value Fund 227 6,127 7,126
Vanguard Index Trust 500 Port 182 10,612 16,420
Vanguard Index Trust Growth Port 606 13,370 13,643
Vanguard Primecap Fund 3,681 110,304 145,674
------------------------------
Total Mutual Funds (self-directed) 1,671,000 1,827,229
Bonds (self-directed):
Allied Corp., due 8/01/01 10,000 3,050 8,000
Common Stocks (self-directed):
AT&T Corp 200 7,685 12,263
Advanced Magnetics, Inc. 250 2,368 2,188
Alliance World Dlr Govt II 4,500 53,895 60,750
American Express Company 1,000 42,705 89,250
American Home Products Corp. 101 6,505 7,696
Amgen Incorporated 700 34,881 37,888
Applied Materials, Inc. 200 6,904 6,025
Arcadia Financial Ltd. 1,000 17,719 7,437
Arizona Home Holdings, Inc. 25,000 25,000 25,000
Ascend Communications, Inc. 300 12,361 7,350
Bellsouth Corporation 250 4,559 14,078
Berkshire Hthwy Cl A 20 46,015 92,000
Best Buy, Inc. 100 3,437 3,688
Blanch E. W. Holdings, Inc.* 41,851 863,737 1,441,261
Callaway Golf 500 8,247 14,281
Chevron Corporation 201 9,741 15,502
Cisco Systems, Inc. 300 12,970 16,725
EWB Retirement Plan
Item 27(a) - Schedule of Assets Held for Investment Purposes (continued)
SHARE OR CURRENT
SECURITY ISSUER AND DESCRIPTION FACE AMOUNT COST VALUE
- ------------------------------------------------------------------------------------------------------
Common Stocks (self-directed) (continued):
Compaq Computer Corp. 200 $ 8,928 $ 11,300
Consol Edison Co of NY 225 4,737 9,225
Disney Walt Holding Co. 400 10,803 39,600
Dupont E I De Nemour & Co. 134 7,756 8,029
Eastman Kodak Company 325 13,982 19,683
Eastman Chemical Co. 56 1,871 3,335
Equus II, Inc. 1,000 19,987 22,875
First Data Corporation 200 6,850 5,850
Gainsco, Inc. 2,551 20,591 21,684
Gannett Co., Inc. Del 1,600 45,664 98,900
General Motors Corp. 202 9,146 12,244
GTE Corporation 100 4,550 5,213
Green Tree Financial CP 200 7,962 5,237
Guidant Corp. 100 6,257 6,226
H S N Incorporated 200 6,150 10,300
Hewlett-Packard Company 1,100 64,561 68,613
Honeywell Incorporated 500 16,384 34,250
I S B Financial Corp. 300 4,788 8,962
Imation Corp. 40 969 640
Intel Corp. 1,200 49,376 84,305
International Business Machines 200 19,149 20,925
International Paper Co. 201 8,680 8,675
Limited, Inc. 500 9,438 12,750
Littelfuse, Inc. 1,400 23,327 34,825
M B I A, Inc. 800 23,882 53,450
Manpower, Inc. 100 2,723 3,535
McDonald's Corp. 600 22,975 28,650
Mercury Finance Co. 500 661 281
Micro Therapeutics New 1,000 8,605 6,500
Minnesota Mining & Mfg. 601 34,682 49,369
Motorola Incorporated 700 36,048 40,031
EWB Retirement Plan
Item 27(a) - Schedule of Assets Held for Investment Purposes (continued)
SHARE OR CURRENT
SECURITY ISSUER AND DESCRIPTION FACE AMOUNT COST VALUE
- ------------------------------------------------------------------------------------------------------
Common Stocks (self-directed) (continued):
Nike, Inc. Class B 100 $ 5,395 $ 3,906
Northern States Power Co. 150 4,496 8,737
Norwest Corp. 201 3,452 7,783
Peoplesoft, Inc. 200 6,107 7,800
Pepsico Incorporated 100 3,750 3,625
Petco Animal Supplies 704 17,258 16,896
Pharmacia & Upjohn Inc. 100 3,413 3,663
Philip Morris Cos. Inc. 188 7,696 8,507
Polygram NV N Y 400 11,082 19,075
Raytheon Co. New Class A 12 0 592
Reliance Group Holdings Inc. 500 2,980 7,063
Remington Oil & Gas Class B 1,000 8,845 5,188
Renaissance Holdings Inc. 700 29,225 30,887
Rubbermaid Inc. 101 3,064 2,516
SBC Communications Inc. 250 4,231 18,313
Scientific Game Holdings CP 400 11,303 8,100
Sears Roebuck & Co. 180 7,830 8,145
Sun Microsystems Inc. 100 3,763 3,987
Thai Fund Inc. 300 3,134 1,575
United Healthcare Corp. 100 5,833 4,969
United States Filter 2,100 21,784 62,869
ValueVision Intl Class A 1,000 3,840 3,812
Wahlco Environmental Systems Inc. 1,000 934 375
Wal-Mart Stores Inc. 800 8,391 31,550
Xerox Corp. 100 7,743 7,388
-----------------------------
Total Common Stocks (self-directed) 1,845,760 2,866,165
Preferred Stocks (self-directed):
Hartford Cap Pfd 8.35% 26 1,000 25,150 26,250
EWB Retirement Plan
Item 27(a) - Schedule of Assets Held for Investment Purposes (continued)
SHARE OR CURRENT
SECURITY ISSUER AND DESCRIPTION FACE AMOUNT COST VALUE
- --------------------------------------------------------------------------------------------------------
U.S. Government Obligations (self-directed):
Ctf Accrl Tr Sr J 13.875% 250,000 $ 67,688 $ 152,050
U.S. Treasury Strip, due 8/15/01 10,000 3,254 8,156
U.S. Treasury Strip, due 8/15/06 10,000 2,090 6,094
U.S. Treasury Strip, due 8/15/04 10,000 2,541 6,872
U.S. Treasury Strip, due 8/15/05 10,000 2,321 6,472
U.S. Treasury Strip, due 8/15/02 10,000 2,962 7,709
U.S. Treasury Strip, due 8/15/07 10,000 1,925 5,744
U.S. Treasury Strip, due 2/15/03 10,000 2,931 7,491
U.S. Treasury Strip, due 5/15/98 10,000 4,429 9,797
U.S. Treasury Strip, due 5/15/99 10,000 4,040 9,262
U.S. Treasury Strip, due 5/15/06 10,000 2,155 6,181
U.S. Treasury Strip, due 5/15/07 10,000 1,980 5,825
------------------------------
Total U.S. Government Obligations (self-directed) 98,316 231,653
International Equity (self-directed):
Capital World Growth & Income Fund 2,792 54,449 68,431
Chile Fund Inc. 200 4,462 3,563
Europacific Growth American Funds 4,605 91,669 119,824
Harbor Intl Fund 678 21,939 24,313
India Fund Inc. 500 4,265 3,688
India Growth Fund Inc. 300 5,338 2,775
Janus Worldwide Fund 1,906 64,746 72,024
Korea Fund Incorporated 817 4,681 5,362
Mutual European Fund 3,458 44,423 43,569
Oakmark International Fund 2,199 26,981 28,214
Pakistan Investment Fund 800 4,390 3,900
Small Cap World Fund American Funds 3,512 77,015 91,249
------------------------------
Total International Equity (self-directed) 404,358 466,912
EWB Retirement Plan
Item 27(a) - Schedule of Assets Held for Investment Purposes (continued)
SHARE OR CURRENT
SECURITY ISSUER AND DESCRIPTION FACE AMOUNT COST VALUE
- --------------------------------------------------------------------------------------------------------
Participant Loans:
Promissory Notes due the EWB Retirement Plan Interest
rates ranging from 7% to 11% 1,009,801 $ 0 $ 1,009,801
-------------------------------
Total $27,511,343 $34,727,223
===============================
*Party-in-interest.
EWB Retirement Plan
Item 27(d) - Schedule of Reportable Transactions
Year ended December 31, 1997
CURRENT VALUE
OF ASSET ON
PURCHASE SELLING COST OF TRANSACTION GAIN (LOSS)
SECURITY ISSUER AND DESCRIPTION PRICE PRICE ASSET DATE ON SALE
- ---------------------------------------------------------------------------------------------------------------------------
CATEGORY (i)--INDIVIDUAL TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS
American Century Balanced $3,525,155 $3,525,155 $3,525,155
Twentieth Century International Growth 1,722,356 1,722,356 1,722,356
Fidelity Asset Manager Fund $3,515,282 3,278,256 3,515,282 $237,026
Vanguard International Fund 1,716,352 1,859,882 1,716,352 (143,530)
CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS
American Century Balanced Fund 4,353,703 4,353,703 4,353,703
American Century Balanced Fund 782,027 748,538 782,027 33,489
E. W. Blanch Holdings, Inc. 7,764,620 7,764,620 7,764,620
E. W. Blanch Holdings, Inc. 3,629,217 3,016,841 3,629,217 612,376
American Century International Growth Fund 2,427,458 2,427,458 2,427,458
American Century International Growth Fund 357,658 328,124 357,658 29,534
American Century - Benham Prime Money
Market Fund 2,445,236 2,445,236 2,445,236
American Century - Benham Prime Money
Market Fund 1,576,077 1,576,077 1,576,077 -
PJIT Institutional Money Market Fund 772,725 772,725 772,725
PJIT Institutional Money Market Fund 3,390,287 3,390,287 3,390,287 -
Putnam New Opportunities Fund 7,644,349 7,644,349 7,644,349
Putnam New Opportunities Fund 979,021 922,918 979,021 56,103
Janus Fund 7,133,549 7,133,549 7,133,549
Janus Fund 683,929 627,778 683,929 56,151
Fidelity Asset Manager 3,515,282 3,278,256 3,515,282 237,026
Vanguard Equity Fund-International 1,716,351 1,859,882 1,716,351 (143,531)
There were no category (ii) or (iv) reportable transactions for the year ended
December 31, 1997.