2017 ANNUAL REPORT

2017 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

2017 ANNUAL REPORTREPORT FROM ISSA E. STEPHAN, CCUEPresident and Chief Executive Officer

At First Financial, we SMELL better. What exactly does this mean? It means that we are here to help you with Score improvement, Money savings, Education, Lending, and we are Local. We believe that everyone deserves a chance to build a better financial future, save money, get the best rates possible,

and have access to free financial education. All of our members are valued — as a credit union, we exist to aid you with all of your financial needs.

In 2017, we were able to add First Financial as a payment option in digital wallet for our members. Members can now use their smart devices for purchases via Apple Pay, Google Pay, Microsoft Wallet, and Visa® Checkout. In addition, we also launched our credit card mobile app during the summer of 2017. First Financial credit cardholders are now able to check their card balances, make payments, activate a new card, and view their transactions and payment history quickly and easily through the app.

Continuing to bring our members product enhancements during the year, we also launched Prepaid Reloadable Cards in 2017 — perfect for travelers, students, and those who want to keep better track of their finances. These cards work just like a debit card, and can effortlessly be used to make purchases, access an ATM, and are available for use anywhere that Visa® is accepted. The cards can easily be ordered and loaded online, right from our website.

Toward the end of the summer, we hosted our first ever blood drive at the Corporate Office with Central

Jersey Blood Center. During the month of August, our local hospitals run low on blood supply — and being located near the Jersey Shore during peak tourism season, blood donations are crucial. We were able to save the lives of 75 individuals in Monmouth and Ocean Counties this year, thanks to all who donated blood on August 5, 2017. In addition to the blood drive, we also held a shred event at the same time – during which Planet Shred collected 1.5 tons of materials. This not only helps the planet by promoting recycling, it also decreases exposure to identity theft by destroying sensitive documents that are no longer needed.

Focusing on financial education within our membership and the surrounding Monmouth and Ocean County communities, we hosted our first ever student-run LIFE™ (Learning Independent Financial Education) Financial Reality Fair events at both Jackson Memorial and Liberty High Schools. During a LIFE™ Fair, students use hands-on experiences and real-life scenarios to help prepare them for their financial future. In 2017, First Financial trained the students from the Jackson Academy of Business (JAB) to run the fairs, giving them the opportunity to teach real-life financial education to their peers. It was a great learning experience all around!

Our credit union puts a high priority on education because it’s how First Financial began 81 years ago – with a group of schoolteachers from Asbury Park. The First Financial Foundation was proud to once again award $500 scholarships to four deserving college students in 2017, as well as a grant to South Toms River Elementary School for the sponsorship of the school’s annual Career Day for their students. Additionally, the Foundation was able to donate to the district’s holiday

toy drive at Walnut Street Elementary School. Thanks to the support of our staff and our members, we were able to make all of this possible.

If you haven’t already noticed, First Financial takes pride in being able to give back to our members and local community. In early December, each of our branch locations was transformed into a winter wonderland as we prepared for Santa to arrive. On Saturday, December 9, each branch location had a photographer who took free children’s photos with Santa, and, each family was able to receive digital and printed photos of their children (just in time for holiday cards!). We didn’t leave out our college student members either — Santa also paid a visit to Ocean County College, brought some entertaining props, and took selfies with the students. The event was 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 constant support and membership, as well as for choosing us for your financial needs. As we continue to provide convenient, value-driven banking services over the past 81 years that we’ve been in business, we look forward to another great year in 2018. Thank you for Thinking First and God Bless!

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

2016 ANNUAL REPORT

2017 Financial StatementAssets 2017 2016

Loans to Members 136,280,192 140,265,387

Cash 3,129,886 2,148,286

Investments 31,693,108 25,103,864

Fixed Assets 11,163,936 11,517,273

Other Assets 7,695,562 7,031,499

Total Assets 189,962,684 186,066,309

Liabilities and Equity

Accounts Payable 715,774 537,405

Member Deposits 178,255,376 173,336,470

Equity 10,991,534 12,192,434

Total Liabilities & Equity 189,962,684 186,066,309

2017 Income StatementIncome 2017 2016

Interest on Loans 7,436,943 7,078,506

Interest on Investments 284,576 313,268

Other Income 2,375,857 2,395,796

Total Income 10,097,376 9,787,570

Expenses

Compensation & Benefits 3,459,286 4,306,889

Office Expense 3,376,855 3,457,488

Data Proc & Prof Services 922,812 1,093,536

Provision for Loan Loss 1,611,348 1,457,639

Education/Promotion 162,163 239,023

Total Expenses 9,532,464 10,554,575

Gain/Loss Sale of Assets 2,816 291,803

Income Available 567,728 (475,202)

Dividends & Interest on Borrowed Funds 308,503 397,448

NCUSIF — —

Net Income/Loss 259,225 (872,650)

STATEMENTS OF FINANCIAL CONDITION AND INCOME

2017 ANNUAL REPORT

2017 NOTABLE EVENTS AND HAPPENINGS

2017 ANNUAL REPORT

Erma Dorrer Literary Scholarship Recipients, July 2017Reader Rewards Summer Reading Contest Winners, August 2017

Santa’s Visit, December 2017

Holiday Toy Drive at Walnut Street Elementary School, December 2017

Jackson Memorial Student-Run LIFE™ Fair, June 2017South Toms River Elementary School Career Day Grant, March 2017

Shred Day, August 2017

Giants Ticket Winner, December 2017

Blood Drive, August 2017

2017 ANNUAL REPORT

PRODUCTS & SERVICES

CHECKING & SAVINGS LOANS & CREDIT CARDS

FIRST SERVICES

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

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

• Online Banking & Bill Pay • Direct Deposit • Instant Issue Debit Cards • e-Statements • 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.

• Prepaid Reloadable Cards

• 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

2017 ANNUAL REPORT

FREEHOLD/HOWELL389 Route 9 NorthFreehold, NJ 07728

NEPTUNE783 Wayside RoadNeptune, NJ 07753

TOMS RIVER1360 Route 9 South

Toms River, NJ 08755 Federally 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, 2017.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 John Ceresani

LEADERSHIP TEAMIssa E. Stephan, CCUEPresident and Chief Executive Officer

Terriann WarnVice President, Chief Financial Officer

Nancy CulpVice President, Lending