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, 1998
-----------------
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 JUNE 23, 1999 By /s/ IAN DAVID PACKER
--------------------------- ------------------------------------------
(Signature)
IAN DAVID PACKER
------------------------------------------
(Print Name)
Financial Statements and Supplemental Schedules
EWB RETIREMENT PLAN
YEAR ENDED DECEMBER 31, 1998
WITH REPORT OF INDEPENDENT AUDITORS
EWB Retirement Plan
Financial Statements and Supplemental Schedules
Year ended December 31, 1998
CONTENTS
Report of Independent Auditors.................................................1
Audited Financial Statements
Statements of Net Assets Available for Benefits................................2
Statement of Changes in Net Assets Available for Benefits......................6
Notes to Financial Statements..................................................8
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes....................13
Line 27d - Schedule of Reportable Transactions................................19
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 as of December 31, 1998
and 1997, and the related statement of changes in net assets available for
benefits for the year ended December 31, 1998. 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 benefits of the Plan at
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the year ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended, are presented for purpose of additional
analysis and are not a required part of the 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 Fund Information in the statements of net assets
available for benefits and the statement of changes in net assets available for
benefits is presented for purposes of additional analysis rather than to present
the net assets available for benefits and the changes in net assets available
for benefits of each fund. The supplemental schedules and Fund Information have
been subjected to auditing procedures applied in our audits of the 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/ Ernst & Young LLP
June 24, 1999
Dallas, Texas
EWB Retirement Plan
Statement of Net Assets Available for Benefits
December 31, 1998
TWENTIETH TWENTIETH AMERICAN AMERICAN TWENTIETH TWENTIETH
CENTURY CENTURY CENTURY CENTURY CENTURY INT'L CENTURY INT'L
ULTRA VISTA BALANCED VALUE GROWTH DISCOVERY
FUND FUND FUND FUND FUND FUND
------------------------------------------------------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $267,267 $92,688 $3,876,337 $274,603 $2,560,331 $232,436
Common/collective trust - - - - - -
EWBH common stock - - - - - -
Self-directed funds:
Cash - - - - - -
Mutual funds - - - - - -
Bonds - - - - - -
EWBH common stock - - - - - -
Common stocks - - - - - -
Preferred stocks - - - - - -
Stock options (short) - - - - - -
U.S. government
obligations - - - - - -
International equities - - - - - -
Participant loans - - - - - -
----------------------------------------------------------------------------------------------------
267,267 92,688 3,876,337 274,603 2,560,331 232,436
Receivables:
Employer contribution 30,215 5,780 87,744 22,427 71,060 23,117
----------------------------------------------------------------------------------------------------
Net assets available for
benefits $297,482 $98,468 $3,964,081 $297,030 $2,631,391 $255,553
====================================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION: ALLOCATION: ALLOCATION:
CONSERVATIVE MODERATE AGGRESSIVE
FUND FUND FUND
------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $43,611 $53,944 $108,131
Common/collective trust - - -
EWBH common stock - - -
Self-directed funds:
Cash - - -
Mutual funds - - -
Bonds - - -
EWBH common stock - - -
Common stocks - - -
Preferred stocks - - -
Stock options (short) - - -
U.S. government
obligations - - -
International equities - - -
Participant loans - - -
--------------------------------------------------
43,611 53,944 108,131
Receivables:
Employer contribution 4,156 7,885 16,987
--------------------------------------------------
Net assets available for
benefits $47,767 $61,829 $125,118
==================================================
SEE ACCOMPANYING NOTES.
2
EWB Retirement Plan
Statement of Net Assets Available for Benefits (continued)
December 31, 1998
BENHAM PUTNAM BARCLAYS UNRESTRICTED
PRIME MONEY BENHAM NEW EQUITY EWBH
MARKET GNMA OPPORTUNITIES JANUS INDEX STOCK
FUND FUND FUND FUND FUND FUND
--------------------------------------------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $1,084,722 $ 890,731 $8,155,060 $8,006,973 $ -- $ 14,075
Common/collective trust -- -- -- -- 635,597 --
EWBH common stock -- -- -- -- -- 8,853,753
Self-directed funds:
Cash -- -- -- -- -- --
Mutual funds -- -- -- -- -- --
Bonds -- -- -- -- -- --
EWBH common stock -- -- -- -- -- --
Common stocks -- -- -- -- -- --
Preferred stocks -- -- -- -- -- --
Stock options (short) -- -- -- -- -- --
U.S. government
obligations -- -- -- -- -- --
International equities -- -- -- -- -- --
Participant loans -- -- -- -- -- --
--------------------------------------------------------------------------------------
1,084,722 890,731 8,155,060 8,006,973 635,597 8,867,828
Receivables:
Employer contribution 134,836 27,496 245,618 217,784 54,293 --
--------------------------------------------------------------------------------------
Net assets available for
benefits $1,219,558 $ 918,227 $8,400,678 $8,224,757 $ 689,890 $8,867,828
======================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
RESTRICTED
EWBH SELF- PARTICIPANT
STOCK DIRECTED LOAN
FUND FUND FUND TOTAL
---------------------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $ -- $ -- $ -- $ 25,660,909
Common/collective trust -- -- -- 635,597
EWBH common stock 68,718 -- -- 8,922,471
Self-directed funds:
Cash -- 684 -- 684
Mutual funds -- 1,569,591 -- 1,569,591
Bonds -- 223,750 -- 223,750
EWBH common stock -- 1,941,543 -- 1,941,543
Common stocks -- 1,652,738 -- 1,652,738
Preferred stocks -- 26,000 -- 26,000
Stock options (short) -- (23,150) -- (23,150)
U.S. government
obligations -- 281,065 -- 281,065
International equities -- 611,451 -- 611,451
Participant loans -- -- 815,378 815,378
--------------------------------------------------------------
68,718 6,283,672 815,378 42,318,027
Receivables:
Employer contribution 1,182,425 -- -- 2,131,823
--------------------------------------------------------------
Net assets available for
benefits $1,251,143 $ 6,283,672 $ 815,378 $ 44,449,850
==============================================================
SEE ACCOMPANYING NOTES
3
EWB Retirement Plan
Statement of Net Assets Available for Benefits
December 31, 1997
TWENTIETH TWENTIETH AMERICAN AMERICAN TWENTIETH TWENTIETH
CENTURY CENTURY CENTURY CENTURY CENTURY INT'L CENTURY INT'L
ULTRA VISTA BALANCED VALUE GROWTH DISCOVERY
FUND FUND FUND FUND FUND FUND
-------------------------------------------------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $120,982 $37,473 $3,787,075 $211,504 $2,142,889 $111,092
Common/collective trust - - - - - -
EWBH common stock - - - - - -
Self-directed funds:
Mutual funds - - - - - -
Bonds - - - - - -
EWBH common stock - - - - - -
Common stocks - - - - - -
Preferred stocks - - - - - -
U.S. government
obligations - - - - - -
International equities - - - - - -
Participant loans - - - - - -
-------------------------------------------------------------------------------------------
Total investments 120,982 37,473 3,787,075 211,504 2,142,889 111,092
Receivables:
Employer contribution 8,708 3,815 101,611 8,717 84,171 9,372
Participant contribution 932 261 4,112 793 4,707 823
-------------------------------------------------------------------------------------------
Total assets 130,622 41,549 3,892,798 221,014 $2,231,767 $121,287
LIABILITIES
Other - - - - - -
-------------------------------------------------------------------------------------------
Net assets available for
benefits $130,622 $41,549 $3,892,798 $221,014 $2,231,767 $121,287
===========================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION: ALLOCATION: ALLOCATION:
CONSERVATIVE MODERATE AGGRESSIVE
FUND FUND FUND
--------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $46,327 $20,982 $38,505
Common/collective trust - - -
EWBH common stock - - -
Self-directed funds:
Mutual funds - - -
Bonds - - -
EWBH common stock - - -
Common stocks - - -
Preferred stocks - - -
U.S. government
obligations - - -
International equities - - -
Participant loans - - -
--------------------------------------------
Total investments 46,327 20,982 38,505
Receivables: 503 1,480 3,652
Employer contribution - 136 284
--------------------------------------------
Participant contribution 46,830 22,598 42,441
Total assets
LIABILITIES
Other - - -
--------------------------------------------
Net assets available for
benefits $46,830 $22,598 $42,441
============================================
SEE ACCOMPANYING NOTES
4
EWB Retirement Plan
Statement of Net Assets Available for Benefits (continued)
December 31, 1997
BENHAM PUTNAM BARCLAYS UNRESTRICTED
PRIME MONEY BENHAM NEW EQUITY EWBH
MARKET GNMA OPPORTUNITIES JANUS INDEX STOCK
FUND FUND FUND FUND FUND FUND
--------------------------------------------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $869,163 $596,560 $7,331,752 $6,564,207 $ - $ 4,726
Common/collective trust - - - - 229,661 -
EWBH common stock - - - - - 6,048,578
Self-directed funds:
Mutual funds - - - - - -
Bonds - - - - - -
EWBH common stock - - - - - -
Common stocks - - - - - -
Preferred stocks - - - - - -
U.S. government
obligations - - - - - -
International equities - - - - - -
Participant loans - - - - - -
---------------------------------------------------------------------------------------
Total investments 869,163 596,560 7,331,752 6,564,207 229,661 6,053,304
Receivables:
Employer contribution 104,967 22,273 317,670 240,259 12,543 -
Participant contribution 1,497 1,228 15,756 12,897 652 -
--------------------------------------------------------------------------------------
Total assets 975,627 620,061 7,665,178 6,817,363 242,856 6,053,304
--------------------------------------------------------------------------------------
LIABILITIES
Other - - - - - 33,832
--------------------------------------------------------------------------------------
Net assets available for
benefits $975,627 $620,061 $7,665,178 $6,817,363 $242,856 $6,019,472
======================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
RESTRICTED
EWBH SELF- PARTICIPANT
STOCK DIRECTED LOAN
FUND FUND FUND TOTAL
---------------------------------------------------------------
ASSETS
Investments at fair value:
Mutual funds $ - $ - $ - $21,883,237
Common/collective trust - - - 229,661
EWBH common stock 129,737 - - 6,178,315
Self-directed funds:
Mutual funds - 1,827,229 - 1,827,229
Bonds - 8,000 - 8,000
EWBH common stock - 1,441,261 - 1,441,261
Common stocks - 1,424,904 - 1,424,904
Preferred stocks - 26,250 - 26,250
U.S. government
obligations - 231,653 - 231,653
International equities - 466,912 - 466,912
Participant loans - - 1,009,801 1,009,801
---------------------------------------------------------------
Total investments 129,737 5,426,209 1,009,801 34,727,223
Receivables:
Employer contribution 1,114,285 - - 2,034,026
Participant contribution 4,467 - - 48,545
---------------------------------------------------------------
Total assets 1,248,489 5,426,209 1,009,801 36,809,794
---------------------------------------------------------------
LIABILITIES
Other - - - 33,832
---------------------------------------------------------------
Net assets available for
benefits $1,248,489 $5,426,209 $1,009,801 $36,775,962
===============================================================
SEE ACCOMPANYING NOTES
5
EWB Retirement Plan
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1998
TWENTIETH TWENTIETH AMERICAN AMERICAN TWENTIETH TWENTIETH
CENTURY CENTURY CENTURY CENTURY CENTURY INT'L CENTURY INT'L
ULTRA VISTA BALANCED VALUE GROWTH DISCOVERY
FUND FUND FUND FUND FUND FUND
------------------------------------------------------------------------------------
Additions:
Interest and dividends $ 23,103 $ 729 $ 495,607 $ 47,059 $ 49,066 $ 1,468
Net appreciation
(depreciation) in fair value
of investments 36,091 802 105,205 (35,998) 376,249 19,078
Employer contributions 30,891 6,052 94,818 23,058 76,990 23,830
Participant contributions 84,847 17,559 223,006 69,288 215,110 63,995
Rollovers 14,856 672 5,074 2,123 14,411 20,649
------------------------------------------------------------------------------------
189,788 25,814 923,710 105,530 731,826 129,020
Deductions:
Benefit payments 12,452 1,093 657,677 4,761 265,756 5,278
Transfers to/from other plans 9,206 557 141,567 3,629 (3,431) 1,477
Administrative expenses 1,071 318 5,234 743 4,460 -
------------------------------------------------------------------------------------
22,729 1,968 804,478 9,133 266,785 6,755
Interfund transfers (199) 33,073 (47,949) (20,381) (65,417) 12,001
Net increase (decrease) 166,860 56,919 71,283 76,016 399,624 134,266
Net assets available for
benefits at beginning of year 130,622 41,549 3,892,798 221,014 2,231,767 121,287
------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $ 297,482 $ 98,468 $ 3,964,081 $ 297,030 $ 2,631,391 $ 255,553
====================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION: ALLOCATION: ALLOCATION:
CONSERVATIVE MODERATE AGGRESSIVE
FUND FUND FUND
-----------------------------------------
Additions:
Interest and dividends $ 2,485 $ 2,845 $ 4,142
Net appreciation
(depreciation) in fair value
of investments 3,375 2,788 5,584
Employer contributions 4,180 7,991 17,253
Participant contributions 11,454 13,673 36,875
Rollovers 21,500 13,177 11,997
-----------------------------------------
42,994 40,474 75,851
Deductions:
Benefit payments 469 1,390 3,102
Transfers to/from other plans 9 - 1,466
Administrative expenses 130 108 503
-----------------------------------------
608 1,498 5,071
Interfund transfers (41,449) 255 11,897
Net increase (decrease) 937 39,231 82,677
Net assets available for
benefits at beginning of year 46,830 22,598 42,441
-----------------------------------------
Net assets available for
benefits at end of year $ 47,767 $ 61,829 $ 125,118
=========================================
SEE ACCOMPANYING NOTES
6
EWB Retirement Plan
Statement of Changes in Net Assets Available for Benefits (continued)
Year ended December 31, 1998
BENHAM PUTNAM BARCLAYS UNRESTRICTED
PRIME MONEY BENHAM NEW EQUITY EWBH
MARKET GNMA OPPORTUNITIES JANUS INDEX STOCK
FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------
Additions:
Interest and dividends $ 64,102 $ 45,272 $ 282,488 $ 234,251 $ 3,847 $ 83,887
Net appreciation (depreciation)
in fair value of investments - 1,411 1,341,308 2,134,048 103,551 2,647,937
Employer contributions 142,343 29,078 268,027 234,820 55,231 -
Participant contributions 146,933 53,457 724,242 593,063 123,668 825
Rollovers 46,867 1,150 41,219 46,217 17,792 17,552
-----------------------------------------------------------------------------------
400,245 130,368 2,657,284 3,242,399 304,089 2,750,201
Deductions:
Benefit payments 563,057 50,812 1,178,123 1,340,399 5,469 927,869
Transfers to/from other plans 123,654 126,926 279,191 279,929 2,218 246,274
Administrative expenses 3,387 1,479 18,565 14,385 1,419 1,731
-----------------------------------------------------------------------------------
690,098 179,217 1,475,879 1,634,713 9,106 1,175,874
Interfund transfers 533,784 347,015 (445,905) (200,292) 152,051 1,274,029
Net increase (decrease) 243,931 298,166 735,500 1,407,394 447,034 2,848,356
Net assets available for benefits
at beginning of year 975,627 620,061 7,665,178 6,817,363 242,856 6,019,472
-----------------------------------------------------------------------------------
Net assets available for benefits
at end of year $1,219,558 $ 918,227 $ 8,400,678 $ 8,224,757 $689,890 $8,867,828
===================================================================================
[WIDE TABLE CONTINUED FROM ABOVE]
RESTRICTED
EWBH SELF- PARTICIPANT
STOCK DIRECTED LOAN
FUND FUND FUND TOTAL
----------------------------------------------------------
Additions:
Interest and dividends $ 19,411 $ 131,107 $ 87,557 $ 1,578,426
Net appreciation (depreciation)
in fair value of investments 8,667 887,516 - 7,637,612
Employer contributions 1,238,007 - - 2,252,569
Participant contributions 282,599 - - 2,660,594
Rollovers - - - 275,256
----------------------------------------------------------
1,548,684 1,018,623 87,557 14,404,457
Deductions:
Benefit payments 12,127 63,781 59,523 5,153,138
Transfers to/from other plans 67,095 156,343 87,788 1,523,898
Administrative expenses - - - 53,533
----------------------------------------------------------
79,222 220,124 147,311 6,730,569
Interfund transfers (1,466,808) 58,964 (134,669) -
Net increase (decrease) 2,654 857,463 (194,423) 7,673,888
Net assets available for benefits
at beginning of year 1,248,489 5,426,209 1,009,801 36,775,962
----------------------------------------------------------
Net assets available for benefits
at end of year $ 1,251,143 $ 6,283,672 $ 815,378 $44,449,850
==========================================================
SEE ACCOMPANYING NOTES.
7
EWB Retirement Plan
Notes to Financial Statements
December 31, 1998
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 first day of the
calendar quarter 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 a discretionary employer contribution, if declared. The
Plan is subject to the provisions of the Employee Retirement Income Security Act
of 1974 (ERISA).
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 1998 Plan year, the maximum salary reduction
that could be contributed to the Plan could not exceed the lesser of 14% of
pretax compensation or $10,000. Additionally, participants may also contribute
amounts representing distributions from other qualified defined benefit or
defined contribution plans.
The assets of the Plan are held by UMB Bank (UMB), the trustee of the Plan, and
American Century, a custodian of the Plan, through an agency agreement with UMB.
E. W. Blanch Holdings, Inc. (the Company), may make annual discretionary
contributions 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 portion of the E. W. Blanch Company 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 the 1998 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.
8
EWB Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
Total contributions to a participant's account in any Plan year are limited to
the lesser of $30,000 or 25% of the participant's total compensation.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions and
allocations of the Company's contributions and 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 1998 and 1997 totaled $59,747 and
$97,249, 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. Effective January 1, 1998, vesting in the Company contribution portion
of each participant's account plus actual earnings thereon occurs over a three
year period, provided that the participant is credited with at least 1,000 hours
of continuous service in each Plan year. Participants hired prior to April 1,
1993, are 100% vested in Company contributions.
Participants of plans merged into the Plan may be immediately 100% vested with
respect to employer contributions up to the date of the merger, subject to the
provisions of the previous plan. Vesting of subsequent employer contributions is
subject to the three years of continuous service requirement. Length of service
for vesting purposes is calculated from the date of hire in the previous
company.
INVESTMENT OPTIONS
Other than the 50% of discretionary employer contributions initially directed to
the restricted portion of the E. W. Blanch Company Stock Fund, participants may
direct daily 100% of all contributions in 5% increments to various mutual funds
and the restricted portion of the E. W. Blanch Company Stock Fund. Participants'
contributions to the E. W. Blanch Company Stock Fund are restricted from
reallocation to other funds until after two full calendar quarters following the
quarter in which the funds are contributed. Participants may also elect to
self-direct such amounts to other investments, subject to certain restrictions.
9
EWB Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
PARTICIPANT LOANS
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 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 (7% to 10% in 1998).
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 if the
balance does not exceed $5,000. If the account balance is $5,000 or more, the
participant may receive a lump-sum amount equal to the vested value of his or
her account or may leave the account in the Plan no longer than mandatory
distribution age. 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.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The financial statements of the Plan are presented on the accrual basis of
accounting.
VALUATION OF INVESTMENTS
Investments of the Plan are stated at fair market value based on published
market quotes or cost, which approximates fair market value, if there is no
active market. Participant loans are valued at cost which approximates fair
value.
10
EWB Retirement Plan
Notes to Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
USE OF ESTIMATES
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.
CHANGE IN PRESENTATION OF COMPARATIVE STATEMENTS
Certain financial statement amounts at December 31, 1997, have been reclassified
to conform to the December 31, 1998, presentation.
3. INVESTMENTS
Investments that represent 5% or more of the Plan's net assets available for
benefits are separately identified in the statements of net assets available for
benefits at December 31, 1998 and 1997.
4. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100% vested in their accounts.
5. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated January 19, 1994, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the Code) and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan has been
amended since receiving the determination letter. However, the Plan
Administrator believes the Plan is being operated in compliance with the
applicable requirements of the Code and, therefore, believes that the Plan is
qualified and the related trust is tax exempt.
11
EWB Retirement Plan
Notes to Financial Statements (continued)
6. YEAR 2000 (UNAUDITED)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
year 2000 dates. The Plan Sponsor is taking a two-phase approach. The first
phase addresses internal systems that must be modified or replaced to function
properly. Both internal and external resources are being utilized to replace or
modify existing software applications, and test the software and equipment for
the year 2000 modifications. The Plan Sponsor anticipates substantially
completing this phase of the project by late 1999. Costs associated with
modifying software and equipment are not estimated to be significant and will be
paid by the Plan Sponsor. For the second phase of the project, Plan management
established formal communications with its third-party service providers to
determine that they have developed plans to address their own year 2000 problems
as they relate to the Plan's operations. All third-party service providers have
indicated that they will be year 2000 compliant by late 1999. If modification of
data processing systems of either the Plan, the Plan Sponsor, or its service
providers are not completed timely, the year 2000 problem could have a material
impact on the operations of the Plan. Plan management has not developed a
contingency plan, because they are confident that all systems will be year 2000
ready.
12
EWB Retirement Plan
Line 27a - Schedule of Assets Held for Investment Purposes
EIN: 41-1741779
PLAN #: 001
December 31, 1998
(b) (c)
IDENTITY OF ISSUE, DESCRIPTION OF INVESTMENT, INCLUDING (e)
(a) BORROWER, MATURITY DATE, RATE OF INTEREST, (d) CURRENT
LESSOR, OR SIMILAR PARTY COLLATERAL, PAR, OR MATURITY VALUE COST VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Mutual Funds:
* American Century Twentieth Century Ultra Fund $ 247,566 $ 267,267
* American Century Twentieth Century Vista Fund 91,493 92,688
* American Century Balanced Fund 3,675,146 3,876,337
* American Century Value Fund 313,233 274,603
* American Century Twentieth Century International Growth Fund 2,182,268 2,560,331
* American Century Twentieth Century International Discovery Fund 217,391 232,436
* American Century Strategic Allocation: Conservative Fund 44,090 43,611
* American Century Strategic Allocation: Moderate Fund 50,427 53,944
* American Century Strategic Allocation: Aggressive Fund 100,073 108,131
* American Century Benham Prime Money Market Fund 1,084,722 1,084,722
* UMB Scout Prime I - Money Market Fund 41,632 41,632
* American Century Benham GNMA 881,297 890,731
Putnam Funds New Opportunities Fund 5,983,158 8,155,060
Janus Janus Fund 6,009,405 8,006,973
------------------------------------
Total Mutual Funds 20,921,901 25,688,466
Common/Collective Trust
Barclay Global Investors, NA Equity Index Fund J 195,803 635,597
Common Stock:
* E. W. Blanch Holdings, Inc. 245,980 shares 5,194,512 10,864,014
Schwab Funds Cash 684 684
Mutual Funds (self-directed):
American Funds Capital Income Builder Fund 60,796 81,917
Marsico Investment Fund Marsico Focus Fund 26,270 26,166
* Party-in-interest
13
EWB Retirement Plan
Line 27a - Schedule of Assets Held for Investment Purposes (continued)
EIN: 41-1741779
PLAN #: 001
December 31, 1998
(c)
DESCRIPTION OF INVESTMENT,
(b) INCLUDING MATURITY DATE, RATE OF
IDENTITY OF ISSUE, BORROWER, INTEREST, COLLATERAL, PAR, OR (d) (e)
(a) LESSOR, OR SIMILAR PARTY MATURITY VALUE COST CURRENT VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Mutual Funds (self-directed) (continued):
Franklin Group of Funds Mutual Beacon Fund - Class Z $ 106,006 $ 143,687
Neuberger & Berman Guardian Fund 49,720 53,340
Oakmark Funds Harris Assoc. Investment Tr 13,863 20,973
Reynolds Funds Blue Chip Growth Fund 25,000 29,823
Rydex Series Trust OTC Fund 25,210 32,557
Schwab Funds Money Market Fund 740,065 740,065
Schwab Funds Value Advantage Money Fund 82,787 82,787
Sound Shore Fund Sound Shore Fund 97,962 88,126
Transamerica Premier Funds Premier Small Co. Fund 25,000 31,059
Vanguard Group Primecap Fund 143,320 211,534
-----------------------------------
Total Mutual Funds (self-directed) 1,395,999 1,542,034
Bonds (self-directed):
BellSouth 7.625%, due 5/15/35 215,631 223,750
Common Stocks (self-directed):
Airtouch Communications 200 shares 10,450 14,487
AK Steel Holding Corp. 200 shares 4,255 4,700
Alliance World Dlr Govt II 4,500 shares 53,895 38,250
American Express Company 1,000 shares 42,705 102,500
Amgen Incorporated 700 shares 34,881 73,194
Applied Materials, Inc. 200 shares 6,904 8,537
Arcadia Financial Ltd. 1,000 shares 17,719 3,625
Arizona Home Holdings, Inc. 25,000 shares 25,000 25,000
Asyst Technology, Inc. New 100 shares 2,680 2,037
Berkshire Hthwy Cl A 20 shares 46,015 140,000
Boeing Co. 202.2192 shares 10,332 6,597
Caterpillar, Inc. 300 shares 13,905 13,800
Cendant Corp. 600 shares 8,303 11,587
Ciena Corp. 200 shares 6,999 2,925
Cisco Systems, Inc. 450 shares 12,970 41,765
* Party-in-interest
14
EWB Retirement Plan
Line 27a - Schedule of Assets Held for Investment Purposes (continued)
EIN: 41-1741779
PLAN #: 001
December 31, 1998
(c)
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
(b) RATE OF INTEREST, (e)
IDENTITY OF ISSUE, BORROWER, COLLATERAL, PAR, OR (d) CURRENT
(a) LESSOR, OR SIMILAR PARTY MATURITY VALUE COST VALUE
- -----------------------------------------------------------------------------------------------------------------------
Common Stocks (self-directed) (continued):
Compaq Computer Corp. 500.9141 shares $ 11,623 $ 21,038
Computer Associates Int'l. Inc. 200 shares 6,385 8,525
Conseco, Inc. 184.8902 shares 7,962 5,639
Disney Walt Holding Co. 1,200 shares 10,803 36,000
Dupont E I De Nemour & Co. Odd Lot Tender 402.5073 shares 7,756 21,358
Eastman Chemical Co. 56 shares 1,871 2,506
Equus II, Inc. 1,000 shares 19,987 17,105
First Data Corporation 200.5752 shares 21,025 6,393
Gannett Co., Inc. Del 1,600 shares 45,664 103,200
General Electric Company 100.6706 shares 8,621 10,268
General Motors Corp. 300.1411 shares 15,131 21,478
GTE Corporation 103.4153 shares 4,741 6,722
GIC Global Entertainment 2,000 shares 3,247 3,625
Goodyear Tire & Rubber 300 shares 16,294 15,131
Guidant Corp. 200.0727 shares 12,853 22,008
Hartford Financial Services Group 200 shares 10,980 10,975
Hewlett-Packard Company 1302.1995 shares 77,383 88,956
Honeywell Incorporated 700 shares 30,926 52,719
I S B Financial Corp. 300 shares 4,788 6,638
Imation Corp. 40 shares 969 700
Intel Corp. 200.3122 shares 49,394 23,750
Johnson & Johnson 1,000 shares 67,018 83,875
LTV Corporation 300 shares 4,174 1,725
Littelfuse, Inc. 1,400 shares 23,327 26,950
Loral Space & Communications Ltd. 200 shares 6,667 3,563
M B I A, Inc. 800 shares 23,882 52,450
MCI Worldcom, Inc. 200 shares 10,188 14,350
McDonald's Corp. 600 shares 22,976 46,088
Mercury Finance Co. 500 shares 661 22
* Party-in-interest
15
EWB Retirement Plan
Line 27a - Schedule of Assets Held for Investment Purposes (continued)
EIN: 41-1741779
PLAN #: 001
December 31, 1998
(c)
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
(b) RATE OF INTEREST, (e)
IDENTITY OF ISSUE, BORROWER, COLLATERAL, PAR, OR (d) CURRENT
(a) LESSOR, OR SIMILAR PARTY MATURITY VALUE COST VALUE
- -------------------------------------------------------------------------------------------------------------------------
Common Stocks (self-directed) (continued):
Micro Therapeutics New 2,000 shares $ 16,708 $ 20,000
MicroSoft Inc. 40 shares 5,765 5,548
Minnesota Mining & Mfg. 400 shares 34,682 28,450
Motorola Incorporated 200.8883 shares 40,908 12,267
Pepsico Incorporated 200.4039 shares 7,371 8,192
Petroleum & Resources CP 320.5402 shares 12,487 9,817
Pfizer, Inc. 300 shares 32,209 37,500
Philip Morris Cos. Inc. 504.0827 shares 23,221 26,968
Renaissance Holdings Inc. 2,000 shares 75,131 73,250
Rubbermaid Inc. 102.3074 shares 3,113 3,216
St. Joe Company 500 shares 16,967 11,719
Schlumberger Ltd. 200 shares 10,305 9,275
Starwood Hotels & Resorts 200 shares 10,417 4,538
Sunbeam Corporation 1,000 shares 7,790 6,875
Sun Microsystems Inc. 100 shares 3,763 8,563
USA Networks 400 shares 6,150 13,250
Unilever 100 shares 3,893 4,500
United Healthcare Corporation 300.0424 shares 5,836 12,921
United States Filter 2,100 shares 21,784 48,038
VLSI Technology, Inc. 200 shares 4,129 2,188
Vesta Insurance Group 2,500 shares 27,142 15,000
Vision Twenty One Inc. 500 shares 4,217 2,625
Wahlco Environmental Systems Inc. 100 shares 934 9
Wal-Mart Stores Inc. 800 shares 8,391 65,150
Wells Fargo & Co. 203.7145 shares 3,556 8,136
Xerox Corp. 101.5449 shares 7,884 11,982
--------------------------------
Total Common Stocks (self-directed) 1,219,062 1,652,738
Preferred Stocks (self-directed):
Hartford Capital 1,000 shares, preferred 8.35% 25,150 26,000
* Party-in-interest
16
EWB Retirement Plan
Line 27a - Schedule of Assets Held for Investment Purposes (continued)
EIN: 41-1741779
PLAN #: 001
December 31, 1998
(c)
DESCRIPTION OF INVESTMENT,
(b) INCLUDING MATURITY DATE, RATE OF (e)
IDENTITY OF ISSUE, BORROWER, INTEREST, COLLATERAL, PAR, OR (d) CURRENT
(a) LESSOR, OR SIMILAR PARTY MATURITY VALUE COST VALUE
- ----------------------------------------------------------------------------------------------------------------------------
Options:
Applied Materials 2 $ (690) $ (875)
Compaq Computers 4 (715) (2,600)
Cisco 3 (302) (7,650)
General Motors Corp. 3 (321) (938)
Guidant Corp. 2 (340) (6,025)
Honeywell, Inc. 2 (315) (25)
Motorola 2 (165) (500)
Phillip Morris 4 (390) (475)
Airtouch Communications 2 (115) (925)
Sun Miscrosystems 1 (165) (2,562)
Xerox Corporation 1 (115) (575)
--------------------------------
(3,633) (23,150)
U.S. Government Securities (self-directed):
Ctf Accrl Treasury 250,000, Series J, due 5/15/11 67,688 170,450
Treasury Strip 10,000, 00%, due 5/15/99 4,040 9,834
Treasury Note 100,000, 5.375%, due 1/31/00 100,217 100,781
--------------------------------
Total U.S. Government Securities (self-directed) 171,945 281,065
International Equity (self-directed):
American Funds Capital World Growth & Income Fund 62,792 79,518
Chile Fund Inc. Chile Fund Inc. 4,462 1,813
American Funds Europacific Growth Fund 99,230 138,444
India Fund Inc. India Fund Inc. 4,265 3,156
India Growth Fund Inc. India Growth Fund Inc. 7,824 4,650
Janus Worldwide Fund 170,820 205,617
Korea Fund Incorporated Korea Fund Incorporated 4,681 7,557
Merrill Lynch NIKKEI Index 225 Market Index, due 2/14/02 93,135 95,563
Franklin Group of Funds Mutual European Fund 46,871 45,633
Oakmark Funds Oakmark International Fund 29,224 26,237
Pakistan Investment Fund Pakistan Investment Fund 4,391 1,500
Thai Fund Thai Fund 3,134 1,763
--------------------------------
Total International Equity (self-directed) 530,829 611,451
17
EWB Retirement Plan
Line 27a - Schedule of Assets Held for Investment Purposes (continued)
EIN: 41-1741779
PLAN #: 001
December 31, 1998
(c)
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
(b) RATE OF INTEREST, (e)
IDENTITY OF ISSUE, BORROWER, COLLATERAL, PAR, OR (d) CURRENT
(a) LESSOR, OR SIMILAR PARTY MATURITY VALUE COST VALUE
- ---------------------------------------------------------------------------------------------------------------------------
Participant Loans:
Promissory Notes due the EWB Interest rates ranging from
Retirement Plan 7% to 10% $ 815,378 $ 815,378
------------------------------
Total $30,683,261 $42,318,027
==============================
*Party-in-interest.
18
EWB Retirement Plan
Line 27d - Schedule of Reportable Transactions
EIN: 41-1741779
PLAN #: 001
Year ended December 31, 1998
(h)
CURRENT (i)
VALUE NET
(c) (d) (g) OF ASSET ON GAIN OR
(a) (b) PURCHASE SELLING COST OF TRANSACTION (LOSS) ON
IDENTITY OF PARTY INVOLVED DESCRIPTION OF SECURITY PRICE PRICE ASSET DATE SALE
- ------------------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of Transactions in Excess of 5% of Plan Assets
- ----------------------------------------------------------------------
American Century Balanced Fund $ 942,018 $ - $ 942,018 $ 942,018 $ -
American Century Balanced Fund - 957,962 875,037 957,962 82,595
E. W. Blanch Holdings, Inc. Common Stock 4,512,839 - 4,512,839 4,512,839 -
E. W. Blanch Holdings, Inc. Common Stock - 4,440,376 3,713,156 4,440,376 727,220
American Century Benham Prime Money Market Fund 2,163,563 - 2,163,563 2,163,563 -
American Century Benham Prime Money Market Fund - 1,947,999 1,947,999 1,947,999 -
Putnam New Opportunities Fund 1,641,371 - 1,641,371 1,641,371 -
Putnam New Opportunities Fund - 2,155,262 1,845,648 2,155,262 309,614
Janus Janus Fund 1,399,632 - 1,399,632 1,399,632 -
Janus Janus Fund - 2,088,085 1,895,995 2,088,085 192,090
Columns (e) and (f) are not applicable.
There were no category (ii) or (iv) reportable transactions for the year ended
December 31, 1998.
19
EXHIBIT INDEX
Exhibit 23 Consent of Ernst & Young LLP, Independent Auditors
20