<PAGE>   1
                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 

     For the quarterly period ended April 30, 1998 

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
     EXCHANGE ACT OF 1934 

For the transition period from           to          


Commission File Number 0-4179


                       CAPITAL INVESTMENT OF HAWAII, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


            Hawaii                                                99-0065664
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

Suite 1700, Makai Tower, 733 Bishop Street
             Honolulu, Hawaii                                       96813
--------------------------------------------------------------------------------
(Address of principal executive offices)                          (Zip Code)

Registrant's telephone number, including area code        (808) 537-3981
                                                  ------------------------------

                                    No Change
--------------------------------------------------------------------------------
         Former name, former address and former fiscal year, if changed
                               since last report.


        Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes  [X]     No   [ ]

        Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

        There were 1,032,683 shares outstanding of common stock, no par value,
as of April 30, 1998.


<PAGE>   2
                         PART I - FINANCIAL INFORMATION

               CAPITAL INVESTMENT OF HAWAII, INC. AND SUBSIDIARIES

                      Condensed Consolidated Balance Sheets

                        April 30, 1998 and July 31, 1997

                                     ASSETS

<TABLE>
<CAPTION>
                                                          April 30,         July 31,
                                                            1998              1997
                                                         (Unaudited)
                                                         -----------      -----------
<S>                                                      <C>                  <C>    
Cash and cash equivalents                                $   342,261          797,514
Receivables:
      Trade accounts and notes, less allowance
           for doubtful receivables of $21,157
           at April 30, 1998 and $27,191 at
           July 31, 1997                                     816,450          676,242
      Long-term receivables (including current
           installments of $3,335 at April 30,
           1998 and $5,344 at July 31, 1997                    3,737            7,470
                                                         -----------      -----------

                      Total receivables                      820,187          683,712
                                                         -----------      -----------

Inventories                                                       --           67,425
Developed real estate, less accumulated depre-
      ciation of $248,041 at April 30, 1998
      and $231,788 at July 31, 1997                        1,406,292        1,420,523
Undeveloped land held for sale                               134,474          134,474
Other investments:
      Real estate                                          2,284,360        2,959,237
      Securities                                             816,259          817,723
                                                         -----------      -----------

                      Total other investments              3,100,619        3,776,960
                                                         -----------      -----------

Property and equipment, at cost:
      Leasehold improvements                                  66,531          221,413
      Furniture and equipment                                397,809        1,772,820
                                                         -----------      -----------

                                                             464,340        1,994,233

      Less accumulated depreciation and amortization        (419,854)      (1,791,381)
                                                         -----------      -----------
                      Net property and equipment              44,486          202,852

Deferred charges and other assets                             10,192           40,470
                                                         -----------      -----------

                                                         $ 5,858,511        7,123,930
                                                         ===========      ===========
</TABLE>




See accompanying notes to condensed consolidated financial statements.

<PAGE>   3

               CAPITAL INVESTMENT OF HAWAII, INC. AND SUBSIDIARIES

                      Condensed Consolidated Balance Sheets

                        April 30, 1998 and July 31, 1997


                    LIABILITIES AND STOCKHOLDERS' DEFICIENCY


<TABLE>
<CAPTION>
                                                       April 30,        July 31,
                                                         1998             1997
                                                     (Unaudited)
                                                     -----------      -----------
<S>                                                  <C>                <C>      
Indebtedness (current installments of $4,196,000
      at April 30,1998 and $4,094,639 at
      July 31, 1997):
           Debentures                                $ 1,948,245        1,976,245
           Mortgage notes                              1,844,810        1,853,583
           Other notes, secured                          667,624          735,723
           Other notes, unsecured                        492,184          469,457
                                                     -----------      -----------

                      Total indebtedness               4,952,863        5,035,008
                                                     -----------      -----------

Accounts payable, trade                                  145,890          635,013
Accrued expenses                                         530,776          845,184
Other payables:
      Loans under participation agreement:
           Related parties                               213,527          451,590
           Other                                         527,530          783,960
      Other                                              721,233          534,041
                                                     -----------      -----------

                      Total other payables             1,462,290        1,769,591
                                                     -----------      -----------

Stockholders' deficiency:
      Common stock no par value, stated value
         $1 per share:
             Authorized 2,531,765 shares;
               issued 1,723,765 shares 
               (No shares reserved for con-
               version, warrants, options
               or other rights)                        1,723,765        1,723,765
      Additional paid-in capital                         469,321          469,321
      Retained earnings                                  631,093          703,535
                                                     -----------      -----------

                                                       2,824,179        2,896,621
      Deduct cost of 691,082 common shares in
           treasury                                   (4,057,487)      (4,057,487)
                                                     -----------      -----------

                      Stockholders' deficiency        (1,233,308)      (1,160,866)
                                                     -----------      ----------- 
                                                     $ 5,858,511        7,123,930
                                                     ===========      ===========
</TABLE>




See accompanying notes to condensed consolidated financial statements.

<PAGE>   4

               CAPITAL INVESTMENT OF HAWAII, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Operations

                   Three Months ended April 30, 1998 and 1997

                                       and

                    Nine months ended April 30, 1998 and 1997


                                   (Unaudited)


<TABLE>
<CAPTION>
                                                Three Months                   Nine Months
                                                  April 30,                     April 30,
                                                  ---------                     ---------
                                             1998           1997           1998           1997
                                         -----------    -----------    -----------    -----------
<S>                                      <C>                <C>        <C>                <C>    
Revenues:
    Commissions and fees                 $   201,415        191,115    $   542,837        524,955
    Income from investments                  157,808        450,966        621,040        806,621
    Other                                       (885)         8,773         79,190         16,192
                                         -----------    -----------    -----------    -----------

                                             358,338        650,854      1,243,067      1,347,768
                                         -----------    -----------    -----------    -----------

Cost and expenses:
    Other direct operating expenses
       and general and administrative
       expenses                              395,995        437,299      1,354,201      1,431,357
    Interest                                  91,560        109,536        340,535        281,883
                                         -----------    -----------    -----------    -----------

                                             487,555        546,835      1,694,736      1,713,240
                                         -----------    -----------    -----------    -----------

        Gain (loss) from continuing
           operations                       (129,217)       104,019       (451,669)      (365,472)
                                         -----------    -----------    -----------    -----------

Discontinued operations:
    Loss from operations of discon-
       tinued bakery operations                   --       (113,616)       (36,272)      (252,643)
    Gain from sale of certain assets
       and liabilities of discontinued
       bakery operations                          --             --        415,499             --
                                         -----------    -----------    -----------    -----------

        Net earnings (loss) from
           discontinued operations                --       (113,616)       379,227       (252,643)
                                         -----------    -----------    -----------    -----------

        Net loss                            (129,217)        (9,597)       (72,442)      (618,115)

Retained earnings at beginning of
   period                                    760,310        942,001        703,535      1,550,519
                                         -----------    -----------    -----------    -----------

Retained earnings at end of period       $   631,093        932,404    $   631,093        932,404
                                         ===========    ===========    ===========    ===========
</TABLE>

<PAGE>   5

Condensed Consolidated Statements of Operations - cont'd.



<TABLE>
<CAPTION>
                                         Three Months                     Nine Months
                                           April 30,                       April 30,
                                           ---------                       ---------
                                       1998         1997             1998            1997
                                    ---------   ------------    -------------    ------------
<S>                                 <C>            <C>              <C>             <C>      
Earnings (loss) per common share:
    Gain (loss) from continuing
        operations                  $    (.13)           .10    $        (.44)           (.35)
    Loss from discontinued
        operations                         --           (.11)             .37            (.25)
                                    ---------   ------------    -------------    ------------

        Loss per common share       $    (.13)          (.01)   $        (.07)           (.60)
                                    =========   ============    =============    ============

Dividends per common share               NONE           NONE             NONE            NONE
                                    =========   ============    =============    ============
Weighted average number of common
    shares outstanding during the
    period                          1,032,683      1,032,683        1,032,683       1,032,683
                                    =========   ============    =============    ============
</TABLE>




See accompanying notes to condensed consolidated financial statements.

<PAGE>   6

               CAPITAL INVESTMENT OF HAWAII, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows

                    Nine months ended April 30, 1998 and 1997

                                   (Unaudited)


<TABLE>
<CAPTION>
                                                          1998          1997
                                                      -----------    ----------
<S>                                                   <C>            <C>        
Net cash provided by (used in) operating activities   $   138,108    (1,078,690)
                                                      -----------    ----------

Cash flows from investing activities:
      Proceeds from sales of securities                        --       428,394
      Capital expenditures                                (16,723)      (36,257)
                                                      -----------    ----------
           Net cash provided by (used in)
                 investing activities                     (16,723)      392,137
                                                      -----------    ----------

Cash flows from financing activities:
      Proceeds from long-term debt                        176,190        40,205
      Principal payments on indebtedness                 (258,335)     (427,824)
      Proceeds received under loan participa-
         tion agreements                                  810,283     1,250,000
      Payments made under loan participation
         agreements                                    (1,304,776)     (180,600)
                                                      -----------    ----------

           Net cash provided by (used in)
                 financing activities                    (576,638)      681,781
                                                      -----------    ----------

           Net decrease in cash and
                 cash equivalents                        (455,253)       (4,772)

Cash and cash equivalents at beginning of period          797,514       757,399
                                                      -----------    ----------

Cash and cash equivalents at end of period            $   342,261       752,627
                                                      ===========    ==========
</TABLE>




See accompanying notes to condensed consolidated financial statements.

<PAGE>   7

              CAPITAL INVESTMENT OF HAWAII, INC. AND SUBSIDIARIES

                   Condensed Statements of Retained Earnings

                   Nine months ended April 30, 1998 and 1997

                                  (Unaudited)


<TABLE>
<CAPTION>
                                                      1998               1997
                                                   ---------         ----------
<S>                       <C>                      <C>                <C>      
Retained earnings at July 31                       $ 703,535          1,550,519
Net loss                                             (72,442)          (618,115)
                                                   ---------         ----------
Retained earnings at April 30                      $ 631,093            932,404
                                                   =========         ==========
</TABLE>



See accompanying notes to condensed consolidated financial statements.
<PAGE>   8
              CAPITAL INVESTMENT OF HAWAII, INC. AND SUBSIDIARIES

             Notes to Condensed Consolidated Financial Information

                                  (Unaudited)

(1) Basis of Presentation

    The accompanying unaudited consolidated financial information have been
    prepared in accordance with generally accepted accounting principles for
    interim financial information and with the instructions to Form 10-Q and
    Article 10 of Regulation S-X. Accordingly, they do not include all of the
    information and footnotes required by generally accepted accounting
    principles for complete financial statements. The accompanying unaudited
    consolidated financial statements should be read in conjunction with the
    report on SEC Form 10-K for the fiscal year ended July 31, 1997 and the
    consolidated financial statements and the notes thereto in the Company's
    Quarterly Report on SEC Form 10-Q for the quarter ended January 31, 1998.

    In the opinion of the Company's management, the accompanying unaudited
    financial information contains all material adjustments required by
    generally accepted accounting principles to present fairly the Company's
    financial position as of April 30, 1998 and July 31, 1997, the results of
    its operations for the nine months ended April 30, 1998 and 1997, and its
    cash flows for the nine months ended April 30, 1998 and 1997. All such
    adjustments are of a normal recurring nature, unless otherwise disclosed in
    this Form 10-Q or other referenced material. Results of operations for
    interim periods are not necessarily indicative of results for the full year.


(2) Accounting Pronouncement

    In June 1997, the Financial Accounting Standards Board issued Statement of
    Accounting Standards (SFAS) No. 131, Disclosures About Segments of An
    Enterprise and Related Information. SFAS No. 131 requires public companies
    to report selected quarterly information about business segments, including
    information on products and services, geographic areas and major customers
    based on a management approach to reporting. SFAS No. 131 is effective for
    fiscal years beginning after December 15, 1997, although its provisions
    need not be applied to interim periods in the initial year of
    implementation. Reclassification of financial statements for prior periods
    will be required for comparative purposes. As this statement relates solely
    to disclosure requirements, its implementation will not have an affect on
    the Company's financial condition, results of operations or liquidity.

(3) Other Real Estate Investments

    HEARTHSTONE HOMES, INC.

    In February 1998, the Company extended a $425,000 acquisition, development
    and construction loan commitment to Hearthstone Homes, Inc. to finance a
    residential real estate project in Clark County, Nevada. At April 30, 1998,
    the Company's aggregate investments in the real estate project amounted to
    $225,000.

    Further, the Company entered into a participation agreement in February
    1998 which provides that the Company sell without recourse, to the
    participant an undivided participating interest in the loan to Hearthstone
    Homes, Inc. The participant's share of the loan commitment is $112,500 as
    of April 30, 1998. The loan under this participation agreement earns
    interest at a rate of 15% per annum and the participant shares pro rata
    with the Company as to all payments, collections and recoveries. The loan
    participation agreement provides that the Company, from time to time, may
    repurchase from the participant, his participating interest.


<PAGE>   9

Item 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS  OF OPERATIONS


           RESULTS OF OPERATIONS

           The Company and its subsidiaries are engaged principally in the
           business of acquiring, developing, leasing and dealing in real
           estate, investing in securities, and wholesale business activities
           which are subject to various factors which cause fluctuations between
           periods. Accordingly, the results of operations for the three and
           nine months ended April 30, 1998 are not necessarily indicative of
           results to be expected for the year and are not necessarily
           comparable to the results of operations for the three and nine months
           ended April 30, 1997.

           Income from Investments

           The decrease in income from investments of $293,158 and $185,581
           respectively for the three and nine months ended April 30, 1998 as
           compared to the same periods in 1997 is primarily due to a decrease
           of interest income from the Company's acquisition, development and
           construction (ADC) loans in Nevada and Utah. The decline in
           investment income is also attributed to a decrease in income from the
           sale of security investments of $91,700 for the nine months ended
           April 30, 1997 as compared to nil for the nine months ended April 30,
           1998.

           DISCONTINUED WHOLESALE BAKERY ACTIVITIES

           Wholesale bakery activities include the production and sale of
           bakery products primarily to major hotels, commercial airlines and
           U.S. military installations in Hawaii. In October 1997, the Company
           entered into an agreement to sell certain assets and liabilities of
           its subsidiary Latipac Fine Foods, Inc. and to discontinue its
           bakery operations.

           In December 1997, the Company finalized the sale of the assets and
           liabilities of its discontinued bakery operations and recorded a
           gain on sale of $415,499. The decrease in loss from discontinued
           operations of $216,371 for the nine months ended April 30, 1998 as
           compared to the same period in 1997 is due to the decrease in
           operating and administrative expenses of Latipac Fine Foods,
           Incorporated.

           LIQUIDITY AND CAPITAL RESOURCES

           At April 30, 1998, the Company held cash and cash equivalents of
           $342,261. The decrease in cash of $455,253 for the nine months ended
           April 30, 1998 is primarily due to cash used in financing activities.

           Included in cash provided by operating activities for the nine months
           ended April 30, 1998 was approximately $677,000 of advances made and
           $894,000 of repayments received on advances for the construction of
           residential developments in Nevada and Utah. The Company's net loss
           of $72,442 is also included in cash provided by operating activities.


<PAGE>   10
           
           Cash flows from financing activities for the nine months ended April
           30, 1998 includes repayments on loan participation agreements in the
           Company's loans to Pageantry Communities, Inc. and Touchstone
           Development of Utah, LLC of $1,304,776. Proceeds received on loan
           participation agreements in the Company's loans to Pageantry
           Communities, Inc. and Touchstone Development of Utah, LLC amounted
           to $810,283 for the nine months ended April 30, 1998.

           The Company met its operating cash requirements for the nine months
           ended April 30, 1998 by using cash on hand at July 31, 1997 and
           proceeds from loan participation agreements. Cash inflows and
           outflows from ADC loans in Copper Bluffs, LLC, Sunset Bay, LLC, Red
           Rock Canyon, Pageantry Communities, Inc., Touchstone Development of
           Utah, LLC and Hearthstone Homes, Inc. will continue throughout
           fiscal year 1998. Cash requirements will continue to be satisfied
           from institutional borrowings, loan participation agreements and net
           collections on ADC loans.




<PAGE>   11
                           PART II - OTHER INFORMATION


Items 1,2,3,5.        None

Item 4.               The following actions were taken at the annual
                      stockholders meeting held on January 30, 1998:

                      a.     Directors were re-elected for the year as follows:

                                    Stuart T.K. Ho 
                                    Dean T.W. Ho 
                                    Donald M. Wong
                                    Stanley W. Hong 
                                    Pedro Ada 
                                    C.B. Sung

                      b.     KPMG Peat Marwick LLP was re-elected independent
                             auditors for the year ending July 31, 1998 by a
                             vote of 557,558 shares in the affirmative and none
                             in the negative.

Item 6.               (a)  None

                      (b)  Form 8-K dated November 3, 1997 was filed during the
                           six months ended January 31, 1998 reporting the sale
                           of assets and liabilities of the Company's
                           wholly-owned subsidiary, Latipac Fine Foods, Ltd.

<PAGE>   12

                                   SIGNATURES


Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                    CAPITAL INVESTMENT OF HAWAII, INC.



Dated:   June 11, 1998              /s/ STUART T.K. HO
                                    -----------------------------------
                                    Chairman of the Board and President


Dated:   June 11, 1998              /s/ DONALD M. WONG
                                    -----------------------------------
                                    Senior Vice President and Treasurer