FIRST HAWAII
Municipal Bond Fund
Intermediate Municipal Fund
November 26, 1996
Dear Shareholders,
1996 has been an exciting year for the First Hawaii family of funds. A slowly
growing economy, coupled with low inflation and reduced government spending
led to a rewarding year for municipal bond investors. Additionally, the First
Hawaii Municipal Bond Fund received national recognition after being awarded
Morningstar's highest rating of 5 stars.
For the year ended September 30, 1996:
THE FIRST HAWAII MUNICIPAL BOND FUND had a distribution rate of 5.03% (free
from Federal and State of Hawaii taxes). This is a taxable equivalent yield of
8.10% for shareholders in the 31% tax bracket. Net assets grew 5.93% to
$54,164,927.
THE FIRST HAWAII INTERMEDIATE MUNICIPAL FUND had a distribution rate of 4.32%
(free from Federal and State of Hawaii taxes). This is a taxable equivalent
yield of 6.96% for shareholders in the 31% Federal tax bracket. Net assets
grew 39.16% to $6,624,234.
On the following pages you will find our Funds' 1996 Annual report. If you
have any questions or would like us to provide information about the Funds to
your family or friends, please call us at 988-8088.
We would like to thank you for your business as well as the referrals we've
received. It has been our pleasure serving you. As we begin our ninth year,
we look forward to providing you with the same high levels of performance and
service which you have come to expect.
On behalf of the staff and management of the Funds, I would like to extend to
you and your family our very best wishes for a safe and happy holiday season.
Sincerely,
\s\ Terrence KH Lee
Terrence KH Lee
President
RATINGS AS OF SEPTEMBER 30, 1996. MORNINGSTAR PROPRIETARY RATINGS ARE SUBJECT
TO CHANGE EVERY MONTH. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
MORNINGSTAR RATINGS ARE CALCULATED FROM THE FUND'S THREE, FIVE, AND TEN YEAR
AVERAGE ANNUAL RETURNS IN EXCESS OF 90-DAY TREASURY BILL RETURNS WITH
APPROPRIATE FEE ADJUSTMENTS, AND A RISK FACTOR THAT REFLECTS FUND PERFORMANCE
BELOW 90-DAY T-BILL RETURNS. MORNINGSTAR FUND RETURNS ARE ADJUSTED FOR FEES
BUT NOT SALES LOADS. TEN PERCENT OF THE FUNDS IN AN INVESTMENT CATEGORY
RECEIVE FIVE STARS, 22.5% RECEIVE FOUR STARS, 35% RECEIVE THREE STARS, 22.5%
RECEIVE TWO STARS, AND 10% RECEIVE ONE STAR. THERE WERE 1745 FUNDS IN THE
MUNICIPAL BOND FUND CATEGORY FOR 1 YEAR, 1013 FUNDS IN THIS CATEGORY FOR 5
YEARS. THE FUND HAD A RANKING OF 5 STARS AND 5 STARS FOR THE 3 AND 5 YEAR
PERIODS ENDING 9/30/96. SOME INCOME MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE
MINIMUM TAX FOR CERTAIN INVESTORS. SOME OF THE FUND'S FEES WERE WAIVED DURING
THIS PERIOD. IF SUCH EXPENSES HAD BEEN PAID BY THE FUND, RETURNS WOULD HAVE
BEEN LOWER.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors and Shareholders
First Pacific Mutual Fund, Inc.
Honolulu, Hawaii
We have audited the accompanying statements of assets and liabilities of First
Hawaii Municipal Bond Fund and First Hawaii Intermediate Municipal Fund (each a
series of shares of First Pacific Mutual Fund, Inc.), including the schedules of
investments, as of September 30, 1996, and the related statements of operations
for the year then ended, the statements of changes in net assets and the
financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1996, by correspondence with the custodian and brokers. 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 and financial highlights referred to
above present fairly, in all material respects, the financial position of First
Hawaii Municipal Bond Fund and First Hawaii Intermediate Municipal Fund as of
September 30, 1996, the results of their operations for the year then ended, the
changes in their net assets and the financial highlights for the periods
referred to above, in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
November 6, 1996
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
September 30, 1996
- -------------------------------------------------------------------------------
VALUE
PAR VALUE (NOTE 1)
HAWAII MUNICIPAL BONDS - 92.08%
HAWAII COUNTY
General Obligation Bonds - 3.66%
$1,150,000 7.050%, 6/01/01 $ 1,259,250
100,000 6.800%, 12/01/01 104,000
565,000 7.200%, 6/01/06 621,500
-----------
1,984,750
HAWAII STATE
General Obligation Bonds - .94%
135,000 6.000%, 10/01/08 142,763
330,000 7.125%, 9/01/09 364,237
-----------
507,000
Airport Systems Revenue Bonds - 5.25%
400,000 5.125%, 7/01/00 405,500
345,000 6.300%, 7/01/01 366,131
560,000 7.000%, 7/01/20 611,800
1,325,000 7.500%, 7/01/20 1,460,813
-----------
2,844,244
Department of Budget & Finance Special
Purpose Revenue Bonds Citizens
Utilities Company - .94%
400,000 7.375%, 11/01/15 408,876
100,000 7.375%, 9/01/18 102,122
-----------
510,998
Hawaiian Electric Company, Inc. - 4.30%
1,655,000 7.625%, 12/01/18 1,789,469
310,000 7.600%, 7/01/20 334,025
200,000 7.600%, 5/01/26 205,500
-----------
2,328,994
Kapiolani Hospital - 3.86%
1,550,000 6.400%, 7/01/13 1,594,562
430,000 7.650%, 7/01/19 493,425
-----------
2,087,987
Kaiser Permanente Center - 4.08%
2,150,000 6.250%, 3/01/21 2,211,812
-----------
Queen's Medical Center Program - 6.69%
200,000 6.800%, 7/01/00 211,500
300,000 5.200%, 7/01/04 303,375
540,000 6.900%, 7/01/04 575,775
250,000 6.125%, 7/01/11 272,188
600,000 6.200%, 7/01/22 655,500
1,635,000 5.750%, 7/01/26 1,604,343
-----------
3,622,681
St. Francis Medical Center - 3.47%
1,765,000 6.500%, 7/01/22 1,879,725
-----------
Wahiawa General Hospital - 6.26%
230,000 7.125%, 7/01/98 236,900
2,985,000 7.500%, 7/01/12 3,152,906
-----------
3,389,806
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (Continued)
September 30, 1996
- -------------------------------------------------------------------------------
VALUE
PAR VALUE (NOTE 1)
Department of Transportation
Special Facilities Revenue Bonds - 4.08%
2,250,000 5.750%, 3/01/13 2,210,625
-----------
Harbor Capital Improvements Revenue
Bonds, Series 1989 - 3.74%
300,000 5.650%, 7/01/02 311,250
100,000 6.200%, 7/01/03 106,750
280,000 6.300%, 7/01/04 301,350
125,000 7.250%, 7/01/10 136,563
260,000 7.250%, 7/01/13 270,182
540,000 7.000%, 7/01/17 584,550
300,000 6.500%, 7/01/19 316,875
-----------
2,027,520
Highway Revenue Bonds, Series 1993 - 2.45%
200,000 5.000%, 7/01/09 192,250
150,000 5.000%, 7/01/11 142,125
1,000,000 5.600%, 7/01/14 995,000
-----------
1,329,375
Housing Authority
Single Family Mortgage Purpose
Revenue Bonds - 15.18%
145,000 6.300%, 7/01/99 149,350
525,000 8.000%, 7/01/08 544,688
390,000 8.000%, 7/01/10 409,012
405,000 7.000%, 7/01/11 425,250
100,000 5.700%, 7/01/13 98,125
590,000 6.900%, 7/01/16 616,550
305,000 7.375%, 7/01/16 313,006
1,505,000 8.125%, 7/01/17 1,582,131
530,000 9.250%, 7/01/17 538,613
495,000 8.125%, 7/01/19 520,369
455,000 6.750%, 7/01/20 468,081
540,000 7.100%, 7/01/24 564,300
1,865,000 5.900%, 7/01/27 1,851,519
135,000 7.800%, 7/01/29 141,581
-----------
8,222,575
Multi-Family Mortgage Purpose
Revenue Bonds - 6.50%
70,000 4.000%, 7/01/97 69,783
180,000 4.500%, 1/01/99 178,875
200,000 4.800%, 1/01/01 197,750
205,000 4.800%, 7/01/01 203,975
210,000 4.900%, 1/01/02 207,375
215,000 4.900%, 7/01/02 213,656
1,000,000 5.700%, 7/01/18 961,250
1,500,000 6.100%, 7/01/30 1,488,750
-----------
3,521,414
Public Housing Authority Bonds - .35%
185,000 5.750%, 8/01/00 189,520
-----------
University Faculty Housing - 4.18%
90,000 4.350%, 10/01/00 89,550
330,000 4.450%, 10/01/01 327,938
345,000 4.550%, 10/01/02 342,412
1,500,000 5.700%, 10/01/25 1,505,625
-----------
2,265,525
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (Continued)
September 30, 1996
- -------------------------------------------------------------------------------
VALUE
PAR VALUE (NOTE 1)
HONOLULU CITY & COUNTY
Board of Water Supply - 1.58%
100,000 5.000%, 7/01/04 100,750
750,000 5.800%, 7/01/21 754,688
-----------
855,438
General Obligation Bonds - 2.84%
100,000 7.300%, 7/01/03 114,250
200,000 7.350%, 7/01/06 234,250
100,000 7.250%, 2/01/08 107,875
1,000,000 7.300%, 2/01/09 1,080,000
-----------
1,536,375
Halawa Business Park - 1.81%
170,000 6.300%, 10/15/00 179,350
370,000 6.500%, 10/15/02 398,675
365,000 6.600%, 10/15/03 399,675
-----------
977,700
Housing Authority
Multi-Family Mortgage Purpose
Revenue Bonds - 1.93%
1,000,000 6.900%, 6/20/35 1,046,250
-----------
KAUAI COUNTY
General Obligation Bonds - 5.02%
595,000 6.700%, 8/01/97 609,869
255,000 6.100%, 2/01/99 257,076
300,000 5.100%, 2/01/01 304,875
410,000 5.850%, 8/01/07 428,450
780,000 5.850%, 8/01/07 815,100
295,000 5.900%, 2/01/12 300,531
-----------
2,715,901
MAUI COUNTY
General Obligation Bonds - 1.54%
740,000 8.000%, 1/01/01 834,350
-----------
Water System Revenue - 1.43%
315,000 5.850%, 12/01/00 332,325
400,000 6.600%, 12/01/07 440,500
-----------
772,825
-----------
TOTAL HAWAII MUNICIPAL BONDS 49,873,390
-----------
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (Continued)
September 30, 1996
- -------------------------------------------------------------------------------
VALUE
PAR VALUE (NOTE 1)
PUERTO RICO MUNICIPAL BONDS - 5.00%
Puerto Rico Commonwealth Electric
Power Authority Revenue Bonds - .73%
100,000 7.125%, 7/01/14 108,750
100,000 7.125%, 7/01/14 108,750
110,000 7.125%, 7/01/14 117,837
55,000 7.125%, 7/01/14 58,919
-----------
394,256
General Obligation Bonds - .14%
70,000 7.750%, 7/01/13 75,688
-----------
Housing Finance Corp.
Multi-Family Mortgage Revenue
Bonds - 1.17%
455,000 7.500%, 4/01/22 477,181
150,000 7.650%, 10/15/22 157,875
-----------
635,056
Industrial, Medical & Environmental
Pollution Control
Abbott Laboratories - .55%
295,000 6.500%, 7/01/09 296,516
-----------
Baxter Travenol Laboratories - .60%
300,000 8.000%, 9/01/12 326,250
-----------
Upjohn Co. Project - 1.66%
825,000 7.500%, 12/01/23 898,219
-----------
Public Building Authority
Health Facilities & Services - .15%
75,000 7.250%, 7/01/17 80,156
-----------
TOTAL PUERTO RICO MUNICIPAL BONDS 2,706,141
-----------
VIRGIN ISLANDS MUNICIPAL BONDS - .86%
VIRGIN ISLANDS
Port Authority Airport Revenue Bonds - .64%
325,000 8.100%, 10/01/05 346,531
-----------
Public Finance Authority, Series A - .22%
100,000 7.300%, 10/01/18 121,375
-----------
TOTAL VIRGIN ISLANDS MUNICIPAL BONDS 467,906
-----------
Total Investments (Cost $51,274,306) (a) 97.94% 53,047,437
Other Assets Less Liabilities 2.06 1,117,490
------- -----------
Net Assets 100.00% $54,164,927
======= ===========
(a) Aggregate cost for federal income tax purposes is $51,278,944.
At September 30, 1996, unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $ 1,875,398
Gross unrealized depreciation (106,905)
-----------
Net unrealized appreciation $ 1,768,493
===========
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS
September 30, 1996
- -------------------------------------------------------------------------------
VALUE
PAR VALUE (NOTE 1)
HAWAII MUNICIPAL BONDS - 96.10%
HAWAII COUNTY
General Obligation Bonds - 4.06%
$ 65,000 6.350%, 5/15/01 $ 65,093
100,000 6.800%, 12/01/01 104,000
100,000 6.500%, 5/15/06 100,160
----------
269,253
HAWAII STATE
General Obligation Bonds - 1.56%
100,000 5.500%, 7/01/01 103,625
----------
Airport Systems Revenue Bonds - 14.75%
500,000 5.125%, 7/01/00 608,250
105,000 6.400%, 7/01/02 113,006
250,000 5.700%, 7/01/07 255,625
----------
976,881
Department of Budget & Finance Special
Purpose Revenue Bonds
Citizens Utilities Company - 4.62%
300,000 7.375%, 9/01/18 306,366
----------
Kapiolani Hospital - 8.08%
200,000 5.500%, 7/01/05 202,500
290,000 7.650%, 7/01/19 332,775
----------
535,275
Queen's Medical Center Program - 6.25%
200,000 6.800%, 7/01/00 211,500
200,000 5.200%, 7/01/04 202,250
----------
413,750
St. Francis Medical Center - 4.12%
270,000 5.250%, 7/01/97 272,730
----------
Wahiawa General Hospital - 4.51%
290,000 7.125%, 7/01/98 298,700
----------
Harbor Capital Improvements Revenue
Bonds, Series 1989 - 4.73%
200,000 5.650%, 7/01/02 207,500
100,000 5.850%, 7/01/02 105,500
----------
313,000
Highway Revenue Bonds, Series 1993 - 3.02%
200,000 4.800%, 7/01/03 200,000
----------
Housing Authority
Single Family Mortgage Purpose Revenue
Bonds - 5.14%
200,000 6.300%, 7/01/99 206,000
130,000 6.800%, 7/01/99 134,225
----------
340,225
Multi-Family Mortgage Purpose Revenue
Bonds - 3.99%
165,000 4.000%, 1/01/97 164,705
100,000 4.000%, 7/01/97 99,690
----------
264,395
Public Housing Authority Bonds - 3.09%
200,000 5.750%, 8/01/00 204,886
----------
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS - (Continued)
September 30, 1996
- -------------------------------------------------------------------------------
Value
PAR VALUE (Note 1)
- --------- --------
University Faculty Housing - 3.45%
230,000 4.350%, 10/01/00 228,850
----------
University of Hawaii - 4.32%
University Revenue Bonds
280,000 5.450%, 10/01/06 286,300
-----------
HONOLULU CITY & COUNTY
Board of Water Supply - 4.56%
300,000 5.000%, 7/01/04 302,250
----------
General Obligation Bonds - 1.53%
100,000 5.000%, 10/01/02 101,125
----------
Halawa Business Park - 3.19%
200,000 6.300%, 10/15/00 211,000
----------
KAUAI COUNTY
General Obligation Bonds - 4.57%
300,000 6.100%, 2/01/99 302,442
----------
MAUI COUNTY
General Obligation Bonds - 3.23%
190,000 8.000%, 1/01/01 214,225
----------
Water System Revenue - 3.33%
100,000 6.600%, 12/01/07 110,125
100,000 6.700%, 12/01/11 110,625
----------
220,750
----------
TOTAL HAWAII MUNICIPAL BONDS 6,366,028
----------
PUERTO RICO MUNICIPAL BONDS - 4.01%
PUERTO RICO COMMONWEALTH
Electric Power Authority Revenue
Bonds - 1.48%
90,000 7.125%, 7/01/14 97,875
----------
General Obligation Bonds - 1.50%
90,000 7.750%, 7/01/17 99,225
----------
Housing Finance Corp.
Single Family Mortgage Revenue
Bonds - 1.03%
65,000 6.150%, 8/01/03 68,087
----------
Total Puerto Rico Municipal Bonds 265,187
----------
Total Investments (Cost $6,527,604) (a) 100.11 % 6,631,215
Liabilities in Excess of Other Assets (.11) (6,976)
------ ----------
Net Assets 100.00 % $6,624,239
====== ==========
(a) Aggregate cost for federal income tax purposes is $6,527,604.
At September 30, 1996, unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $ 104,933
Gross unrealized depreciation (1,322)
----------
NET UNREALIZED APPRECIATION $ 103,611
==========
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Municipal Intermediate
Bond Municipal
Fund Fund
ASSETS
Investments at market value
(Identified cost $51,274,306
and $6,527,604, respectively) (Note 1(A)) $53,047,437 $6,631,215
Cash 1,337,019 95,685
Interest receivable 866,616 103,680
Receivable for fund shares sold - 916
----------- ----------
Total assets 55,251,072 6,831,496
----------- ----------
LIABILITIES
Payable for investments purchased 1,001,350 200,618
Accrued expenses 26,174 3,904
Distributions payable 58,621 2,735
----------- ----------
Total liabilities 1,086,145 207,257
----------- ----------
NET ASSETS
(applicable to 4,972,944 and 1,294,198
shares outstanding, $.01 par value,
20,000,000 shares authorized) $54,164,927 $6,624,239
=========== ==========
NET ASSET VALUE, OFFERING AND REPURCHASE PRICE PER SHARE
($54,164,927 / 4,972,944 shares) $10.89
======
($6,624,239 / 1,294,198 shares) $5.12
=====
NET ASSETS
At September 30, 1996, net assets consisted of:
Paid-in capital $52,621,279 $6,505,223
Accumulated net realized gain (loss) on investments (229,483) 15,405
Net unrealized appreciation 1,773,131 103,611
----------- ----------
$54,164,927 $6,624,239
=========== ==========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
STATEMENT OF OPERATIONS
Year ended September 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Municipal Intermediate
Bond Municipal
Fund Fund
INVESTMENT INCOME
Interest income $3,173,398 $297,127
---------- --------
Expenses
Management fee (Note 2) 265,680 29,311
Distribution costs (Note 2) 57,119 4,491
Transfer agent fees (Note 2) 47,215 14,400
Shareholder services (Note 2) 53,136 5,862
Accounting fees (Note 2) 39,222 23,865
Legal and audit fees 24,927 4,263
Printing 14,920 1,379
Custodian fees 10,311 3,000
Insurance 7,519 767
Registration fees 1,599 528
Directors fees 800 -
---------- -----
Total expenses 522,448 87,866
Fee reductions (Note 4) (17,405) (5,365)
Expenses reimbursed or waived (Note 2) - (38,462)
---------- --------
Net expenses 505,043 44,039
---------- --------
Net investment income 2,668,355 253,088
---------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from security transactions 21,217 17,216
Increase (decrease) in unrealized appreciation
of investments 202,015 (35,876)
---------- --------
Net gain (loss) on investments 223,232 (18,660)
---------- --------
Net increase in net assets resulting
from operations $2,891,587 $234,428
========== ========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Years ended September 30, 1996 and 1995
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
1996 1995
---- ----
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 2,668,355 $ 2,559,984
Net realized gain (loss) on investments 21,217 (264,520)
Increase in unrealized appreciation of investments 202,015 1,552,334
----------- -----------
Net increase in net assets resulting from operations 2,891,587 3,847,798
Distributions to shareholders from
Net investment income
($.55 and $.55 per share, respectively) (2,668,355) (2,559,984)
Realized capital gains
($.06 per share) - (393,211)
Capital share transactions (a)
Increase (decrease) in net assets resulting
from capital share transactions 2,810,813 (1,993,708)
Total increase (decrease) in net assets 3,034,045 (1,099,105)
NET ASSETS
Beginning of year 51,130,882 52,229,987
----------- -----------
End of year $54,164,927 $51,130,882
=========== ===========
</TABLE>
(a) Summary of capital share activity follows:
<TABLE>
<S> <C> <C>
1996 1995
--------------------------- ------------------------
Shares Value Shares Value
Shares sold 982,410 $10,706,770 857,509 $ 9,080,787
Shares issued on reinvestment
of distributions 173,650 1,892,040 200,904 2,110,188
---------- ----------- ---------- ------------
1,156,060 12,598,810 1,058,413 11,190,975
Shares redeemed (900,255) (9,787,997) (1,261,140) (13,184,683)
---------- ----------- ---------- ------------
Net increase (decrease) 255,805 $ 2,810,813 (202,727) $ (1,993,708)
========== =========== ========== ============
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
STATEMENT OF CHANGES IN NET ASSETS
Years ended September 30, 1996 and 1995
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
1996 1995
---- ----
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 253,088 $ 187,328
Net realized gain (loss) on investments 17,216 (1,811)
Increase (decrease) in unrealized appreciation
of investments (35,876) 150,634
---------- ----------
Net increase in net assets resulting from
operations 234,428 336,151
Distributions to shareholders from
Net investment income ($.22 and $.23 per share,
respectively) (253,088) (187,328)
Capital share transactions (a)
Increase in net assets resulting from capital
share transactions 1,882,838 2,164,414
---------- ----------
Total increase in net assets 1,864,178 2,313,237
NET ASSETS
Beginning of year 4,760,061 2,446,824
---------- ----------
End of year $6,624,239 $4,760,061
========== ==========
</TABLE>
(a) Summary of capital share activity follows:
<TABLE>
<S> <C> <C>
1996 1995
-------------------------- -----------------------
Shares Value Shares Value
Shares sold 688,964 $3,522,684 730,169 $ 3,638,418
Shares issued on reinvestment of distributions 43,852 224,869 34,948 176,499
-------- ---------- --------- -----------
732,816 3,747,553 765,117 3,814,917
Shares redeemed (364,169) (1,864,715) (329,433) (1,650,503)
-------- ---------- --------- -----------
NET INCREASE 368,647 $1,882,838 435,684 $ 2,164,414
======== ========== ========= ===========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- -------------------------------------------------------------------------------
Years ended September 30,
<TABLE>
<S> <C> <C> <C> <C> <C>
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
Net asset value
Beginning of year $10.84 $10.62 $11.48 $10.90 $10.47
------ ------ ------ ------ ------
Income from investment operations
Net investment income .55 .55 .55 .58 .60
Net gain (loss) on securities
(both realized and unrealized) .05 .31 (.80) .60 .43
--------- --------- --------- --------- ---------
Total from investment operations .60 .86 (.25) 1.18 1.03
--------- --------- --------- -------- --------
Less distributions
Dividends from net investment income (.55) (.55) (.55) (.58) (.60)
Distributions from capital gains - (.09) (.06) (.02) -
---------- --------- --------- --------- --------
Total distributions (.55) (.64) (.61) (.60) (.60)
--------- --------- --------- --------- ---------
End of year $10.89 $10.84 $10.62 $11.48 $10.90
====== ====== ====== ====== ======
Total return 5.62% 8.42 % (2.18)% 11.11% 10.16%
Ratios/Supplemental Data
Net assets, end of period (in 000's) $54,165 $51,131 $52,230 $57,396 $39,291
RATIO OF EXPENSES TO AVERAGE NET ASSETS
Before expense reimbursements .98% 1.00% .97% .95% .95%
After expense reimbursements .98% (a) .97% (a) .95% .95% .95%
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS
Before expense reimbursements 5.03% 5.19 % 4.99% 5.21% 5.67%
After expense reimbursements 5.03% 5.22 % 5.01% 5.21% 5.67%
Portfolio turnover 15.16% 17.08% 40.22% 27.77% 18.44%
</TABLE>
(a) Ratio of expenses to average net assets after the reduction of custodian
fees under a custodian arrangement were .95% in 1996 and 1995. Prior to
1995, such reductions were reflected in the expense ratios.
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Period
July 5, 1994*
to
Years ended September 30, September 30,
1996 1995 1994
---- ---- -----------
</TABLE>
<TABLE>
<S> <C> <C> <C>
Net asset value
Beginning of period $5.14 $4.99 $5.00
----- ----- -----
Income from investment operations
Net investment income .22 .23 .05
Net gain (loss) on securities (unrealized) (.02) .15 (.01)
------- ------- -------
Total from investment operations .20 .38 .04
------- ------- -------
Less distributions
Dividends from net investment income (.22) (.23) (.05)
------- ------- -------
End of period $5.12 $5.14 $4.99
===== ===== =====
Total return 3.95% 7.86% .72%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $6,624 $4,760 $2,447
RATIO OF EXPENSES TO AVERAGE NET ASSETS
Before expense reimbursements 1.50% 1.90% 4.48% (a)
After expense reimbursements .84% (b) .66% (b) 0% (a)
RATIO OF NET INVESTMENT INCOME TO
AVERAGE NET ASSETS
Before expense reimbursements 3.66% 3.39% .12% (a)
After expense reimbursements 4.32% 4.63% 4.60% (a)
PORTFOLIO TURNOVER 17.76% 10.04% 0%
</TABLE>
* Commencement of operations
(a) Annualized
(b) Ratio of expenses to average net assets after the reduction of custodian
fees under a custodian arrangement were .75% and .64% for 1996 and 1995,
respectively. Prior to 1995, such reductions were reflected in the
expense ratios.
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
- -------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
First Hawaii Municipal Bond Fund and First Hawaii Intermediate Municipal
Fund ("Funds") are each a series of shares of First Pacific Mutual Fund,
Inc. which is registered under the Investment Company Act of 1940, as a
non-diversified open-end management company.
The investment objective of the Funds is to provide investors with the
maximum level of income exempt from federal and Hawaii income taxes
consistent with the preservation of capital. The Funds seek to achieve
their objective by investing primarily in municipal securities which pay
interest that is exempt from federal and Hawaii income taxes.
The Funds are subject to the risk of price fluctuation of the municipal
securities held in its portfolio which is generally a function of the
underlying credit rating of an issuer, the maturity length of the
securities, the securities' yield, and general economic and interest rate
conditions.
Since the Funds invest primarily in obligations of issuers located in
Hawaii, the marketability and market value of these obligations may be
affected by certain Hawaiian constitutional provisions, legislative
measures, executive orders, administrative regulations, voter initiatives,
and other political and economic developments. If any such problems arise,
they could adversely affect the ability of various Hawaiian issuers to
meet their financial obligation.
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements, as well as the reported amounts of income and
expenses during the reported period. Actual results could differ from
those estimates.
(A) SECURITY VALUATION
Portfolio securities, which are fixed income securities, are valued
by an independent pricing service using market quotations, prices
provided by market-makers, or estimates of market values obtained
from yield data relating to instruments or securities with similar
characteristics, in accordance with procedures established in good
faith by the Board of Directors. Securities with remaining maturities
of 60 days or less are valued on the amortized cost basis as
reflecting fair value. All other securities are valued at their fair
value as determined in good faith by the Board of Directors.
(B) FEDERAL INCOME TAXES
It is the Funds' policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies
and to distribute their taxable income, if any, to their
shareholders.
Therefore, no federal income tax provision is required.
(C) SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO
SHAREHOLDERS
Security transactions are recorded on the trade date. Interest income
is recorded on the accrual basis. Bond discounts and premiums are
amortized as required by the Internal Revenue Code. Distributions to
shareholders are declared daily and reinvested or paid in cash
monthly. Premiums and discounts are amortized in accordance with
income tax regulations.
(2) INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
First Pacific Management Corporation ("FPMC") provides the Funds with
management and administrative services pursuant to a management agreement.
In accordance with the terms of the management agreement, FPMC receives
compensation at the annual rate of .50% of each Fund's average daily net
assets.
FPMC also provides the Funds with certain clerical, bookkeeping and
shareholder services pursuant to a service agreement approved by the
Funds' directors. As compensation for these services FPMC receives a fee,
computed daily and payable monthly, at an annualized rate of .10% of each
Fund's average daily net assets.
The Funds' distributor, First Pacific Securities ("FPS"), a wholly-owned
subsidiary of FPMC, received $57,119 for costs incurred in connection with
the sale of First Hawaii Municipal Bond Fund's shares. FPS also received
$4,491 for costs incurred with the sale of First Hawaii Intermediate
Municipal Fund's shares (See Note 3).
First Pacific Recordkeeping, ("FPR"), a wholly-owned subsidiary of FPMC,
serves as the transfer agent and accounting agent for the Funds.
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS - (Continued)
September 30, 1996
- -------------------------------------------------------------------------------
For the year ended September 30, 1996, FPMC and FPR voluntarily waived
certain management, transfer agent, shareholder services, and accounting
fees in the amount of $38,462 for First Hawaii Intermediate Municipal
Fund.
Certain officers and directors of the Funds are also officers of FPMC, FPS
and FPR.
(3) DISTRIBUTION COSTS
The Funds' Board of Directors, including a majority of the Directors who
are not "interested persons" of the Funds, as defined in the Investment
Company Act of 1940, adopted a distribution plan pursuant to Rule 12b-1 of
the Act. The Plan regulates the manner in which a regulated investment
company may assume costs of distributing and promoting the sales of its
shares.
The Plan provides that the Funds may incur certain costs, which may not
exceed .25% per annum of the Funds' average daily net assets, for payment
to the distributor for items such as advertising expenses, selling
expenses, commissions or travel reasonably intended to result in sales of
shares of the Funds.
(4) PURCHASES AND SALES/CUSTODY OF SECURITIES
Purchases and sales of securities aggregated $10,867,149 and $7,895,674,
respectively for the First Hawaii Municipal Bond Fund. Purchases and sales
of securities for First Hawaii Intermediate Municipal Fund aggregated
$5,639,020 and $3,203,068, respectively. Under an agreement with the
Custodian Bank, custodian fees are reduced by credits for cash balances.
During the year ended September 30, 1996, such reductions amounted to
$17,405 and $5,365 for the First Hawaii Municipal Bond Fund and the First
Hawaii Intermediate Municipal Bond Fund, respectively.
- -------------------------------------------------------------------------------
<PAGE>
THE FOLLOWING TWO TABLES, INCLUDING AVERAGE ANNUAL TOTAL RETURN INFORMATION,
WERE PRESENTED AS GRAPHS IN THE ANNUAL REPORT TO SHAREHOLDERS DATED
SEPTEMBER 30, 1996:
_______________________________________________________________________________
FIRST HAWAII MUNICIPAL BOND FUND AS COMPARED TO THE LEHMAN MUNI BOND INDEX
( Comparison of Change in Value of $10,000 Investment )
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
9/1989 9/1990 9/1991 9/1992 9/1993 9/1994 9/1995 9/1996
------ ------ ------ ------ ------ ------ ------ ------
First Hawaii Municipal
Bond Fund 10,815 11,233 12,593 13,873 15,415 15,079 16,349 17,268
Lehman Muni Bond Index 10,717 11,426 12,848 14,015 15,707 15,442 16,999 18,303
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
1 Year 5.62%
5 Years 6.52%
Inception 7.20%
_______________________________________________________________________________
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND AS COMPARED TO
THE LEHMAN MUNI BOND INDEX
( Comparison of Change in Value of $10,000 Investment )
9/1993 9/1994 9/1995 9/1996
------ ------ ------ ------
First Hawaii Intermediate
Municipal Fund 10,000 10,072 10,864 11,293
Lehman Muni Bond Index 10,000 10,070 11,197 11,943
AVERAGE ANNUAL TOTAL RETURN
1 Year 3.95%
Inception 5.58%
_______________________________________________________________________________
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors and Shareholders
First Pacific Mutual Fund, Inc.
Honolulu, Hawaii
We have audited the accompanying statement of assets and liabilities of First
Idaho Tax-Free Fund (a series of shares of First Pacific Mutual Fund, Inc.),
including the schedule of investments, as of September 30, 1996, and the related
statement of operations, the statement of changes in net assets and the
financial highlights for the period July 3, 1996 (commencement of operations)
the September 30, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit 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 and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of September 30, 1996,
by correspondence with the custodian. 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
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of First
Idaho Tax-Free Fund as of September 30, 1996, the results of its operations, the
changes in its net assets, and the financial highlights for the period July 3,
1996 to September 30, 1996, in conformity with generally accepted accounting
principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
November 6, 1996
<PAGE>
FIRST IDAHO TAX-FREE FUND
SCHEDULE OF INVESTMENTS
September 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
PAR VALUE
VALUE (NOTE 1)
IDAHO MUNICIPAL BONDS (21.98%)
Cassia & Twin Falls County
General Obligation Bonds (21.98%)
$25,000 5.375%, 8/01/13 $ 24,375
---------
PUERTO RICO MUNICIPAL BONDS (38.09%)
Puerto Rico Commonwealth
Housing Finance Corp.
Multi-Family Mortgage Revenue Bonds (4.73%)
5,000 7.500%, 4/01/22 5,244
-----------
Single Family Mortgage Revenue Bonds (4.73%)
5,000 6.150%, 8/01/03 5,238
-----------
Industrial, Medical & Environmental Pollution Control
Abbott Laboratories (4.53%)
5,000 6.500%, 7/01/09 5,025
-----------
Public Building Authority
Health Facilities & Services (24.10%)
25,000 7.250%, 7/01/17 26,719
----------
TOTAL PUERTO RICO MUNICIPAL BONDS 42,226
----------
TOTAL INVESTMENTS (COST $66,459) (A) 60.07% 66,601
OTHER ASSETS LESS LIABILITIES 39.93 44,279
------- ----------
Net Assets 100.00% $110,880
======= ==========
(a) Aggregate cost for federal income tax purposes is $66,400.
At September 30, 1996, unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $168
Gross unrealized depreciation (27)
--------
Net unrealized appreciation $141
========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1996
- -------------------------------------------------------------------------------
ASSETS
Investments at market value
(Identified cost $66,460) (Note 1(A)) $ 66,601
Cash 43,301
Interest receivable 996
------------
Total assets 110,898
LIABILITIES
Accrued expenses 1
Distributions payable 17
------------
Total liabilities 18
------------
NET ASSETS
(Applicable to 10,924 shares outstanding,
$.01 par value, 20,000,000 shares authorized) $110,880
============
NET ASSET VALUE, OFFERING AND REPURCHASE PRICE PER SHARE
Net asset value and repurchase price per share
($110,880 / 10,924 shares) $10.15
======
Offering price per share
(100 / 97.25 of $10.15) * $10.44
======
NET ASSETS
At September 30, 1996, net assets consisted of:
Paid-in capital $110,739
Net unrealized appreciation of investments 141
-----------
$110,880
===========
* On investments of $50,000 or more the offering price is reduced.
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
STATEMENT OF OPERATIONS
Period July 3, 1996 (Commencement of Operations) to September 30, 1996
- -------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income $ 123
--------
Expenses
Management fee (Note 2) 20
Distribution costs (Note 2) 1
Accounting fees (Note 2) 5,287
Transfer agent fees (Note 2) 3,487
--------
TOTAL EXPENSES 8,795
Expenses waived (Note 2) (8,794)
--------
NET EXPENSES 1
-----------
NET INVESTMENT INCOME 122
UNREALIZED GAIN ON INVESTMENTS
Increase in unrealized appreciation of investments 141
---------
Net increase in net assets resulting from operations $ 263
========
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
STATEMENT OF CHANGES IN NET ASSETS
Period July 3, 1996 (Commencement of Operations) to September 30, 1996
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investments income $ 122
Increase in unrealized appreciation of investments 141
------------
Net increase in net assets resulting from operations 263
Distributions to shareholders from
Net investment income ($.05 per share) (122)
Capital share transactions (a)
Increase in net assets resulting from capital
share transactions 110,739
------------
Total increase in net assets 110,880
NET ASSETS
Beginning of period -
------------
End of period $110,880
============
(a) Summary of capital share activity follows:
Shares Value
------ -----
Shares sold 10,914 $110,635
Shares issued on reinvestment of distributions 10 104
--------- ------------
Net increase 10,924 $110,739
========= ============
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- -------------------------------------------------------------------------------
Period
July 3, 1996*
to
September 30,
1996
-------------
Net asset value
Beginning of period $10.00
Income from investment operations
Net investment income .05
Net unrealized gain on securities .15
-------
Total from investment operations .20
Less distributions
Dividends from net investment income (.05)
-------
End of period $10.15
=======
Total return 2.05%
Ratios/Supplemental Data
Net assets, end of year (in 000's) $111
Ratio of expenses to average net assets .02% (a)
Ratio of net investment income to average net assets 3.03% (a)
Portfolio turnover 0%
* Commencement of operations
(a) Annualized
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
- -------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
First Idaho Tax-Free Fund is a series of shares of First Pacific Mutual
Fund, Inc. which is registered under the Investment Company Act of 1940,
as a non-diversified open-end management company.
The investment objective of the Fund is to provide investors with the
maximum level of income exempt from federal and Idaho income taxes
consistent with the preservation of capital. The Fund seeks to achieve its
objective by investing primarily in municipal securities which pay
interest that is exempt from federal and Idaho income taxes.
The Fund is subject to the risk of price fluctuation of the municipal
securities held in its portfolio which is generally a function of the
underlying credit rating of an issuer, the maturity length of the
securities, the securities' yield, and general economic and interest rate
conditions.
Since the Fund invests primarily in obligations of issuers located in
Idaho, the marketability and market value of these obligations may be
affected by certain Idahoan constitutional provisions, legislative
measures, executive orders, administrative regulations, voter initiatives,
and other political and economic developments. If any such problems arise,
they could adversely affect the ability of various Idahoan issuers to meet
their financial obligation. The Fund also has a concentration of
securities from issuers located in Puerto Rico. Those issuers could be
affected by similar developments within Puerto Rico.
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements, as well as the reported amounts of income and
expenses during the reported period. Actual results could differ from
those estimates.
(A) SECURITY VALUATION
Portfolio securities, which are fixed income securities, are valued
by an independent pricing service using market quotations, prices
provided by market-makers, or estimates of market values obtained
from yield data relating to instruments or securities with similar
characteristics, in accordance with procedures established in good
faith by the Board of Directors. Securities with remaining maturities
of 60 days or less are valued on the amortized cost basis as
reflecting fair value. All other securities are valued at their fair
value as determined in good faith by the Board of Directors.
(B) FEDERAL INCOME TAXES
It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies
and to distribute its taxable income, if any, to its shareholders.
Therefore, no federal income tax provision is required.
(C) SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO
SHAREHOLDERS
Security transactions are recorded on the trade date. Interest income
is recorded on the accrual basis. Bond discounts and premiums are
amortized as required by the Internal Revenue Code. Distributions
to shareholders are declared daily and reinvested or paid in cash
monthly. Premiums and discounts are amortized in accordance with
income tax regulations.
- -------------------------------------------------------------------------------
<PAGE>
FIRST IDAHO TAX-FREE FUND
NOTES TO FINANCIAL STATEMENTS - (Continued)
September 30, 1996
- -------------------------------------------------------------------------------
(2) INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
First Pacific Management Corporation ("FPMC") provides the Fund with
management and administrative services pursuant to a management agreement.
In accordance with the terms of the management agreement, FPMC receives
compensation at the annual rate of .50% of the Fund's average daily net
assets.
FPMC also provides the Fund with certain clerical, bookkeeping and
shareholder services pursuant to a service agreement approved by the
Fund's directors.
The Funds' distributor, First Pacific Securities ("FPS"), a wholly-owned
subsidiary of FPMC, received $1 for costs incurred in connection with the
sale of the Fund's shares (See Note 3).
First Pacific Recordkeeping, ("FPR"), a wholly-owned subsidiary of FPMC,
serves as the transfer agent and accounting agent for the Fund.
For the period ended September 30, 1996, FPMC and FPR voluntarily waived
certain management, transfer agent, and accounting fees in the amount of
$8,794 for the Fund.
Certain officers and directors of the Funds are also officers of FPMC, FPS
and FPR.
(3) DISTRIBUTION COSTS
The Fund's Board of Directors, including a majority of the Directors who
are not "interested persons" of the Fund, as defined in the Investment
Company Act of 1940, adopted a distribution plan pursuant to Rule 12b-1 of
the Act. The Plan regulates the manner in which a regulated investment
company may assume costs of distributing and promoting the sales of its
shares.
The Plan provides that the Fund may incur certain costs, which may not
exceed .50% per annum of the Fund's average daily net assets, for payment
to the distributor for items such as advertising expenses, selling
expenses, commissions or travel reasonably intended to result in sales of
shares of the Fund.
(4) PURCHASES AND SALES/CUSTODY OF SECURITIES
Purchases of securities aggregated $66,741.
- -------------------------------------------------------------------------------
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837351
<NAME> First Pacific Mutual Fund
<SERIES>
<NUMBER> 002
<NAME> First Hawaii Intermediate Municipal Fund
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 6,527,604
<INVESTMENTS-AT-VALUE> 6,631,215
<RECEIVABLES> 104,596
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 95,685
<TOTAL-ASSETS> 6,831,496
<PAYABLE-FOR-SECURITIES> 200,618
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,639
<TOTAL-LIABILITIES> 207,257
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,505,223
<SHARES-COMMON-STOCK> 1,294,198
<SHARES-COMMON-PRIOR> 925,551
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 15,405
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 103,611
<NET-ASSETS> 6,624,239
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 297,127
<OTHER-INCOME> 0
<EXPENSES-NET> 44,039
<NET-INVESTMENT-INCOME> 253,088
<REALIZED-GAINS-CURRENT> 17,216
<APPREC-INCREASE-CURRENT> (35,876)
<NET-CHANGE-FROM-OPS> 234,428
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 253,088
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 688,964
<NUMBER-OF-SHARES-REDEEMED> 364,169
<SHARES-REINVESTED> 43,852
<NET-CHANGE-IN-ASSETS> 1,864,178
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,811)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 29,311
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 87,866
<AVERAGE-NET-ASSETS> 5,862,119
<PER-SHARE-NAV-BEGIN> 5.14
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> (.02)
<PER-SHARE-DIVIDEND> .22
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.12
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837351
<NAME> First Pacific Mutual Fund
<SERIES>
<NUMBER> 001
<NAME> First Hawaii Municipal Bond Fund
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 51,274,306
<INVESTMENTS-AT-VALUE> 53,047,437
<RECEIVABLES> 866,616
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,337,019
<TOTAL-ASSETS> 55,251,072
<PAYABLE-FOR-SECURITIES> 1,001,350
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 84,795
<TOTAL-LIABILITIES> 1,086,145
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52,621,279
<SHARES-COMMON-STOCK> 4,972,944
<SHARES-COMMON-PRIOR> 4,717,139
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (229,483)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,773,131
<NET-ASSETS> 54,164,927
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,173,398
<OTHER-INCOME> 0
<EXPENSES-NET> 505,043
<NET-INVESTMENT-INCOME> 2,668,355
<REALIZED-GAINS-CURRENT> 21,217
<APPREC-INCREASE-CURRENT> 202,015
<NET-CHANGE-FROM-OPS> 2,891,587
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,668,355
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 982,410
<NUMBER-OF-SHARES-REDEEMED> 900,255
<SHARES-REINVESTED> 173,650
<NET-CHANGE-IN-ASSETS> 3,034,045
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (250,700)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 265,680
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 522,448
<AVERAGE-NET-ASSETS> 53,007,448
<PER-SHARE-NAV-BEGIN> 10.84
<PER-SHARE-NII> .55
<PER-SHARE-GAIN-APPREC> .05
<PER-SHARE-DIVIDEND> .55
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.89
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<NAME> First Pacific Mutual Fund
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<NAME> First Idaho Tax-Free Fund
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