2019 ANNUAL REPORT

2019 ANNUAL REPORT

We promise to...• Welcome you FIRST and treat you as an honored guest.• Treat you with FIRST-class professionalism and address you by name.• Deliver FIRST-rate, friendly service in an accurate and timely manner.• Take ownership and make you our FIRST priority.• Identify your financial needs FIRST and provide you with trustworthy and value-added solutions.• Make a FIRST-rate financial difference in our members’ lives.• Keep our FIRST-rate facilities clean and operational to ensure your experience is pleasant.

OUR FIRST PRIORITY IS ACHIEVINGYOUR FINANCIAL DREAMS

• Defining Your Dream Goals and Lifestyle• Empowering You Through Financial

Education

• Building Your Wealth• Planning Your Retirement• Managing Your Risk

The First Financial Member Experience

2019 ANNUAL REPORTREPORT FROM ISSA E. STEPHAN, CCUEPresident and Chief Executive Officer

At First Financial, our key promise is to assist you with your financial dreams. Together, we can help you create your financial goals and budget. We can strengthen your knowledge through financial education, help you build your wealth, as well as plan your future through investments and retirement. Each and every one of our members

are important to us, and we are here to aid you with all of your financial needs when you need us.

In 2019, our top performing months included March where we lent out over $1.24 million in Auto Loans, August — where we gained 97 new members in one month alone, and October where we lent out over $115,000 in personal loans in just one month.

On the Business Development front, we held over 227 credit union days at community partners, opened over 209 new memberships, and further enhanced our relationship with various area organizations—including schools, hospitals, government offices, and many small businesses.

These community partners and businesses contributed over $1.2 million in closed loans for the credit union in 2019.

Over the summer, members who got financially fit by closing on an auto loan, transferring a credit card balance, attending a financial review appointment, closing on a debt consolidation loan, or enrolling in electronic services, were entered to win a Fitbit Versa® at their local branch. We also included a staff referral contest for the frontline staff member who had the most referrals. It was a win-win for all, between helping our members stay financially fit and save some money at the same time.

As we focused on financial education within our membership and the surrounding Monmouth and Ocean County communities, we hosted several LIFE™ (Learning Independent Financial Education) Financial Reality Fair events at new locations in 2019. In addition to holding annual student-run

LIFE™ Fairs at both Jackson Liberty and Memorial High Schools in the spring and fall, we were able to introduce the program at several new schools including Neptune High School, Monmouth County Vocational School in Freehold Borough, Ocean County College, Georgian Court University’s EOF Program, and for the Rays of Hope Youth Program. We were thrilled to have been able to expand upon our financial education goal of reaching new schools this past year.

Over the summer, the Marketing and Business Development Department once again obtained a grant from the state of New Jersey to host an intern out of the Jackson Business and Finance Academy. For the second summer in a row, it was a great educational experience for all! At the end of the summer, each branch held a back to school lobby day — where staff members were on hand to provide parents and children with some school supplies, a lunch bag snack, and information about useful products and services to help our members save money at one of the most expensive times of the year. We were also able to award five Reader Rewards Summer Reading Contest participants with some back to school gift baskets as well. These events were a success on multiple levels and we were happy to send some of our youngest members back to school on a positive note!

Our credit union puts a high priority on education because it’s how First Financial began 83 years ago, with a group of school teachers from Asbury Park. The First Financial Foundation was proud to award over $2,000 in classroom grants to seven deserving Monmouth and Ocean County teachers in 2019. The Foundation received its largest amount to date of heartwarming essays from educators hoping to use the grant money to implement or maintain a variety of creative programs in their schools. The Foundation committee had an extremely difficult time narrowing down all the wonderful applicants, but ultimately selected Cedar Drive Middle School in Colts Neck, The Alpha School and H.C. Johnson Elementary in Jackson, Manchester Township Middle School, Brick Township High School, Gerald H. Woehr Elementary in New Egypt, and the Neptune High School Surf Club to receive this year’s

Erma Dorrer Classroom Grants. We were also able to provide flexible seating for a classroom at Conrow Elementary School in Long Branch, through a matching Donors Choose classroom donation in conjunction with the credit union’s marketing agency. Thanks to the support of our staff, community partners, and our members — we were able to make these wonderful classroom initiatives possible.

First Financial loves to be able to give back to our members and local community. In early December, each of our branch locations was once again transformed into a winter wonderland for year three, as we prepared for Santa to arrive. On Saturday, December 7th — each branch location had a photographer who took free children’s photos with Santa, and afterward each family was able to receive digital and printed photos of their children (just in time for holiday cards!). Santa also paid another annual visit to Ocean County College, brought some entertaining props, and took selfies with the students. The end of the year also included a holiday gift giveaway auto loan promotion, where members who had closed on auto loans between the end of October and mid-December were entered into a drawing to win some great holiday gadgets. These December events were a big hit, and we were happy to spread holiday cheer throughout Monmouth and Ocean Counties as the year came to a close.

Thank you for your support and membership with us, as well as for choosing us for your financial needs. As we continue to provide convenient, value-driven banking services over the past 83 years that we’ve been in business, we look forward to another successful year in 2020. Thank you for Thinking First and God Bless!

Issa E. Stephan, CCUE, President/CEOGordon E. Holder, Chairperson

2016 ANNUAL REPORT

2019 Financial StatementAssets 2019 2018

Loans to Members 108,998,618 123,990,791

Cash 3,191,744 3,416,070

Investments 40,161,101 29,321,174

Fixed Assets 10,501,365 10,811,878

Other Assets 6,411,756 7,784,363

Total Assets 169,264,584 175,324,277

Liabilities and Equity

Accounts Payable 616,240 665,543

Member Deposits 161,928,004 167,026,331

Equity 6,720,340 7,632,403

Total Liabilities & Equity 169,264,584 175,324,277

2019 Income Statement

Income 2019 2018

Interest on Loans 6,576,622 7,190,287

Interest on Investments 809,845 528,856

Other Income 2,771,497 2,507,717

Total Income 10,157,964 10,226,860

Expenses

Compensation & Benefits 3,253,201 3,115,934

Office Expense 2,736,666 2,858,210

Data Proc & Prof Services 1,193,676 1,149,472

Provision for Loan Loss 3,302,431 3,910,130

Education/Promotion 126,458 163,229

Total Expenses 10,612,432 11,196,975

Gain/Loss Sale of Assets (135,078) (1,139,260)

Income Available (589,546) (2,109,375)

Dividends & Interest on Borrowed Funds 153,502 268,848

NCUSIF — —

Net Income/Loss (743,048) (2,378,222)

STATEMENTS OF FINANCIAL CONDITION AND INCOME

2019 ANNUAL REPORT

2019 NOTABLE EVENTS AND HAPPENINGS

2019 ANNUAL REPORT

OHI Community Baby Shower, 2019

National Make a Difference Day

Neptune High School LIFE Fair

Santa’s Visit, December 2019

Reader Rewards Summer Reading Contest Winners, August 2019

Classroom Grant Recipients 2019

Summer Financial Fitness Challenge Winners, 2019

Neptune High School Surf Club Classroom Grant

2019 ANNUAL REPORT

PRODUCTS & SERVICES

CHECKING & SAVINGS LOANS & CREDIT CARDS

FIRST SERVICES

• Checking Accounts • Individual Retirement Accounts • Savings Certificates • Premium Money Market Accounts

• Holiday Club Accounts • First Step Kids Accounts • Savings Accounts • Business Checking Accounts with Dividends

• Online Banking & Bill Pay • Direct Deposit • Instant Issue Debit Cards • eStatements • Save Your Change • Investment & Retirement Center • Love My Credit Union® Rewards Program

• Merchant Services • AutoSMART • Mobile & Tablet Apps with 1 Click Remote Deposit Capture

• First Scoop Blog • Digital Wallet featuring Apple Pay®, Google Pay®, Microsoft Wallet®, and Visa® Checkout.

• ACH Origination for Loan Payments

• Mortgages

• Visa® Platinum, Secured, Signature Credit Cards

• Vehicle Loans • Personal Lines of Credit

• Home Equity Loans & Lines of Credit

• Commercial Real Estate Loans

• Home Improvement Loans

• Business Lines of Credit

• Personal Loans • SBA Loans • Consolidation Loans • Fast Cash Loans (Payday Alternative)

• Cash Out Auto Loans

• Lease Buyout Loans

2019 ANNUAL REPORT

FREEHOLD/HOWELL389 Route 9 NorthFreehold, NJ 07728

NEPTUNE783 Wayside RoadNeptune, NJ 07753

TOMS RIVER1360 Route 9 South

Toms River, NJ 08755Insured by NCUA.

THINK FIRST. • FIRSTFFCU.COM • 732.312.1500

REPORT OF THE SUPERVISORY COMMITTEEThe Supervisory Committee is appointed by the Board of Directors. It serves as an independent group to ensure that Management and the Board of Directors establish adequate policies and procedures, and guarantees the financial statements are properly prepared and accurately reflect the financial position and operating results of your Credit Union.The Committee, in conjunction with the Risk Officer and external auditors, reviews relevant plans, policies and control procedures established by the Board and Management to ensure they are properly administered and are sufficient to safeguard member assets.The Supervisory Committee engaged the certified public accounting firm, The Curchin Group LLC, to perform the audit of the Credit Union’s financial statements effective December 31, 2019.A copy of their report may be obtained by writing the Supervisory Committee at P.O. Box 751, Neptune, NJ 07754.Elizabeth M. White, Committee Chairperson

BOARD OF DIRECTORSGordon HolderChairperson

Earl Sutton, Jr.Vice Chairperson

David GrafSecretary & Treasurer

Elizabeth M. WhiteLaurita CarrCatherine McLaughlin Karen Fiore

SUPERVISORY COMMITTEEElizabeth M. WhiteCommittee Chairperson

Ronald MinskyMitch Thaler

LEADERSHIP TEAMIssa E. Stephan, CCUEPresident and Chief Executive Officer

Terriann WarnVice President, Chief Financial Officer

Nancy CulpVice President, Lending

Jessica C. TortoriceVice President, Marketing & Business Development