2018 ANNUAL REPORT

2018 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

2018 ANNUAL REPORTREPORT FROM ISSA E. STEPHAN, CCUEPresident and Chief Executive Officer

At First Financial, we are run by our members—not by numbers. We’re for the people, not for profit. Our primary commitment is to assist our members with their financial dreams, provide them with tools and resources to educate and inform them, help build their wealth, finance life’s big purchases, plan their retirement,

and improve their lifestyle. We value each and every one of our members, and our credit union exists to help our members succeed in their financial needs.

In 2018, our top performing months included March—where we gained 154 new members in one month alone and lent out $1.24 million in mortgages. In May—we closed on $2.4 million in auto loans and lent out nearly $176,000 in personal loans. First Financial also achieved its membership goal of 20,000 credit union members in 2018.

Bringing our members product enhancements during the year, we launched an ACH origination program.Members can now schedule their auto, personal, and fixed-rate home equity loans to be paid from their checking or savings accounts at other financial institutions. We love finding ways to make managing our members’ finances more convenient for everyone!

On the Business Development front, we held over 250 credit union days at community partners, opened over 270 new memberships, and further enhanced our relationship with various area organizations.

Over the summer, we held our second blood drive at our Corporate Office with Central Jersey Blood Center. We were able to save the lives of 45 individuals in

Monmouth and Ocean Counties this year, thanks to all who donated blood. In addition to the blood drive, we also held a shred event at the same time—where Planet Shred collected a half ton of paper materials. We even included a new guest this year—Ocean Health Initiatives, who were on scene providing free blood pressure checks and glucose tests to all.

As we focused on financial education within our membership and the surrounding Monmouth and Ocean County communities, we hosted four student-run LIFE™ (Learning Independent Financial Education) Financial Reality Fair events at both Jackson Memorial and Liberty High Schools during the year. Over the summer, the Marketing and Business Development Department obtained a grant from the state of New Jersey to host their first interns out of the Jackson Business and Finance Academy as well. It was a great educational experience for all!

Our credit union puts a high priority on education because it’s how First Financial began 82 years ago, with a group of schoolteachers from Asbury Park. The First Financial Foundation was proud to award $2,000 in classroom grants to six deserving Monmouth and Ocean County teachers in 2018. The Foundation received dozens of heartwarming essays from educators hoping to use the grant money to implement or maintain a variety of creative programs in their schools such as flexible seating, virtual reality glasses, book stands and shelving, new classroom cabinets, and interactive books, games and more. The Foundation committee had a tough time narrowing down all the wonderful applicants, but ultimately selected Shark River Hills Elementary School in Neptune, Ramtown and Land O’ Pines Elementary Schools in Howell, Freehold Learning Center, Manalapan Englishtown Middle

School, and Bradley Beach School to receive this year’s Erma Dorrer Classroom Grants. Thanks to the support of our staff and our members, we were able to make six wonderful classroom initiatives possible.

First Financial takes pride in being able to give back to our members and the local community. In early December, each of our branch locations was once again transformed into a winter wonderland for year two, as we prepared for Santa to arrive. On Saturday, December 8th—each branch location had a photographer who took children’s photos with Santa for free, 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 visit to Ocean County College, brought some entertaining props, and took selfies with the students. Both 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 choosing us for your financial needs. As we continue to provide convenient, value-driven banking services over the past 82 years that we’ve been in business, we look forward to another great year in 2019. Thank you for Thinking First and God Bless!

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

2016 ANNUAL REPORT

2018 Financial StatementAssets 2018 2017

Loans to Members 123,990,791 136,280,192

Cash 3,416,070 3,129,886

Investments 29,321,174 31,693,108

Fixed Assets 10,811,878 11,163,936

Other Assets 7,784,363 7,695,562

Total Assets 175,324,277 189,962,684

Liabilities and Equity

Accounts Payable 665,543 715,774

Member Deposits 167,026,331 178,255,376

Equity 7,632,403 10,991,534

Total Liabilities & Equity 175,324,277 189,962,684

2018 Income StatementIncome 2018 2017

Interest on Loans 7,190,287 7,721,519

Interest on Investments 528,856 313,268

Other Income 2,507,717 2,395,796

Total Income 10,226,860 10,430,583

Expenses

Compensation & Benefits 3,115,934 4,306,889

Office Expense 2,858,210 3,457,488

Data Proc & Prof Services 1,149,472 1,093,536

Provision for Loan Loss 3,910,130 1,457,639

Education/Promotion 163,229 239,023

Total Expenses 11,196,975 10,554,575

Gain/Loss Sale of Assets (1,139,260) 291,803

Income Available (2,109,375) 167,811

Dividends & Interest on Borrowed Funds 268,848 397,448

NCUSIF — —

Net Income/Loss (2,378,222) (229,637)

STATEMENTS OF FINANCIAL CONDITION AND INCOME

2018 ANNUAL REPORT

Erma Dorrer Classroom Grant Recipients 2018

2018 NOTABLE EVENTS AND HAPPENINGS

2018 ANNUAL REPORT

Jackson Memorial LIFE Fair and JAB Internships 2018

Blood Drive, 2018

Jackson Liberty Academy of Business Students, May 2018

Classroom Grant Recipients 2018

Reader Rewards Summer Reading Contest Winners, August 2018

Santa’s Visit, December 2018 Classroom Grant Recipients 2018

2018 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 • ID Theft Protection Products • 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

• First Mortgages

• Visa® Platinum Credit Card

• 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 • Lifestyle Loans • Fast Cash Loans (Payday Alternative)

• Home Possible Advantage Mortgage Program

• Visa® Signature Cash Back Credit Card

• Visa® Secured Credit Card

2018 ANNUAL REPORT

FREEHOLD/HOWELL389 Route 9 NorthFreehold, NJ 07728

NEPTUNE783 Wayside RoadNeptune, NJ 07753

TOMS RIVER1360 Route 9 South

Toms River, NJ 08755 Insured 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, 2018.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