2021 Environmental, Social, Governance & Corporate Responsibility Report

Page 1

2021 Environmental, Social, Governance & Corporate Responsibility Report

Profile First Financial Corporation (NASDAQ: THFF) is a financial services holding company headquartered in Terre Haute, Indiana. Our subsidiary, First Financial Bank N.A., founded in 1834, is the fifth oldest national bank in the United States and operates 78 banking centers in Indiana, Illinois, Kentucky and Tennessee. First Financial Corporation provides a full menu of banking services, including depository accounts, loans, and trust and asset management to retail and business customers.

Vision Enhance our clients’ ability to spend, save, borrow and invest.

Mission Deliver financial solutions that are simple, fast and easy.

Values We build strong relationships and treat everyone with dignity and respect. We embrace the diversity of our customers and co-workers. We apply the highest standards of excellence to everything we do. We work as a team to deliver world-class customer service. We are involved in our communities. We recognize profitability is essential to our future success.

Letter from Our CEO To our Shareholders, customers, associates and the communities we are proud to serve: I am pleased to provide you with First Financial Corporation’s (“First Financial”) inaugural Environmental, Social and Governance (“ESG”) report. I believe this report will provide you with information on ESG issues which are important to all of us as we plan for the future and our continued success. For over 185 years, First Financial, and its predecessors have dedicated themselves to meeting the needs of our stakeholders. This ESG report documents our commitment to addressing the critical issues such as sound corporate governance, an inclusive and diverse Board of Directors, a workforce which is prepared to meet the needs of our customers and the communities we serve, and our impact on the environment, preparing us to successfully address the effects of climate change on our business. Over the past year, we have committed a great deal of time and resources to gather the data and other information included in this report. We have also taken substantial steps to address various ESG issues. For example, over the past thirty months we have added nine new directors to the boards of First Financial Corporation and First Financial Bank. These new directors, coupled with our tenured members, possess professional backgrounds and experience necessary for our continued growth and a more diverse viewpoint.

diversity, equity, and inclusion throughout First Financial. During 2021, we recognized the need as well as the opportunity to optimize our retail banking centers to reduce our overall retail space and at the same time address changing customer preferences to electronic banking which greatly accelerated during the pandemic. This initiative allowed us to consolidate ten banking centers into nearby offices, reducing our consumption of electricity, gas and water, yet continue to provide the high level of service our customers know us for. These initiatives are just a glimpse of what we have accomplished. For our complete story please read the accompanying ESG Report. Sincerely,

We realize that if we are to understand and meet the needs of our associates, customers and the communities we do business in we must be representative of those stakeholders. In furtherance of that effort, we have created an officer level position committed to managing

Norman L. Lowery Chairman, CEO, and President


Annual Highlights Our commitment to corporate social responsibility continued throughout 2021 despite the challenges and limitations presented by the global pandemic. Our dedicated associates worked tirelessly to provide essential and uninterrupted services to the communities we serve through a multi-channel approach. Our pandemic response and customer experience teams were tasked to keep our associates and customers safe. We closely followed the CDC guidelines as well as any heightened state and local requirements for the prevention and spread of Covid-19. Today, we continue 2

to make use of remote work when and where appropriate. Additionally, we provided incentives for our associates to become fully vaccinated and boosted against Covid-19. Despite the impact of the virus on the communities we serve, we remained open for business without interuption, fullfiling our obligation to meet the financial service needs of our customers. During 2021, we saw improvement and success in many other areas: • Our executive compensation program was overwhelmingly approved by 92% of

participating shareholders. • Our proposal to allow shareholders to amend our bylaws was approved, adding another layer of accountability and oversight. • We created a new Diversity, Equity and Inclusion (DEI) Officer position. • We continued to add diversity to our Board of Directors, adding a second female Director in as many years. • We committed to reporting and disclosing additional information to investors on ESG related topics and dedicated the resources necessary to deliver meaningful reporting

under the SASB Framework. • We finished 2021 with a workforce that is 78% gender or racially diverse. • We combined and optimized several branch locations to better meet the financial service needs of our communities while substantially reducing our expected energy and resource consumption. Based on prior usage (which excludes our year-end acquisition in Kentucky), we expect to reduce consumption in our legacy footprint by approximately 10%.


Stakeholder Engagement Actively engaging our stakeholders makes us a better company. Meaningful engagement allows us to understand the unique relationships we have and provides us with valuable insight needed to plan for future success. • S hareholders – We directly engage shareholders on matters such as executive compensation, corporate governance, financial performance, DEI, board diversity, risk management, ESG and other topics using a variety of means, which include our


Annual Meeting, investor conferences, direct investor calls and meetings, and through our website. • A ssociates – We engage and communicate with our team members through our intranet portal, email, training, in-person meetings, and special community events. Career development, data security, ethics, DEI, and customer privacy are examples of the targeted outreach to our colleagues.

• Clients/Customers – We communicate with our customers and clients daily. Whether it is in-person, via our call center, through our website, community events, social media, or research; we strive to keep our customers engaged on topics such as privacy, cybersecurity, financial literacy, banking services, and economic inclusion. Interacting with our customers provides us with valuable perspectives and insight.

• Regulators – We have an excellent relationship with our regulators, which is made possible by our commitment to clear reporting and access to information. We engage our regulators through exams, meetings and other requests that cover a wide range of matters.


10% Sewage


9% Gas & Water


10% Electricity

Projected Reduction in Direct Usage


Environment and Sustainability First Financial recognizes its impact on the environment and the need to address that impact wherever possible. Whether it was installing a geothermal heating/cooling system in our main office in 1988, reducing paper use in our offices, or continuing to upgrade our facilities to be more efficient today, we continually take pro-active steps to serve in a carbon-neutral economy. Because renewable energy is a key to our future success, our lenders seek opportunities to work with customers and renewable energy companies to facilitate solar and wind projects throughout our footprint. In 2021, we entered agreements with customers and energy companies to facilitate the development of over 525 acres in the Wabash Valley for solar power projects. I n 2021, we continued to reduce our carbon footprint and environmental impact by investing in substantial upgrades to our facilities. Some of the projects we are proud to report include: • Installation of new, high-efficiency pumps and other equipment to upgrade the geothermal system at our Main Office in Terre Haute, Indiana. This installation allows us to minimize environmental impact by further reducing our energy consumption, providing cost savings. With these high efficiency pumps, our Main Office is more energy efficient in both the winter and summer months. • In January 2021, we combined two of our banking center locations in Terre Haute, Indiana into a newly constructed building fully outfitted with LED lighting and a highefficiency HVAC system. Our new Fort Harrison Banking Center was designed with energy efficiency in mind. By consolidating these branches into to the new facility,

we expect to use 20% less electricity and over 10% less natural gas when compared with combined yearly averages of the two older branches. All affected associates retained their employment following this consolidation. • As part of our ongoing effort to reduce our carbon footprint, we replaced many traditional fixtures and bulbs with LED lighting. This conversion reduces our energy use and provides additional cost savings. We have also examined the changes in the way our customers bank, which has lead to changes in the amount and way we utilize space and conduct business. In 2021, by combining branch locations and otherwise optimizing our resources, including our available online banking services, we announced and undertook a major branch optimization plan. This plan consisted of combining 9 banking centers in Indiana and Illinois into other nearby locations. Despite this reduction in numbers, we continue to provide superior service and meet the financial service needs of our customers through other nearby branches. The optimization of these branches will result in a substantial reduction of energy consumption and resource use and will realize substantial cost savings. Based on the prior consumption history, we project this optimization will substantially lower our direct environmental impact by reducing overall electricity use by over 10%, natural gas and water use by approximately 9%, and sewage generation by approximately 10%.



Workforce Diversity



Mid-level Officer & Manager Diversity

Social Diversity, Equity, & Inclusion (DEI) and Human Capital Management

Vision & Commitment to DEI – We believe that having a diverse workforce is essential to our future success. We also believe having a culture that promotes workforce inclusion, open dialogue on DEI issues, and employee awareness, will allow us to better leverage our diversity so we benefit from the breadth of ideas, inputs, backgrounds, and perspectives. Our commitment to DEI starts with our Board and CEO. To more fully realize the benefits of a diverse workforce, we have created a Diversity, Equity, and Inclusion Officer position. Outreach and Recruitment – We use focused and directed outreach to universities and other organizations to connect with diverse professionals and other candidates, inviting them to join the First Financial team. For example, we work directly with Tennessee State University, an HBCU (Historically Black College or University) located in Nashville, Tennessee, to invite students and alumni to explore career opportunities with us. We also work with the Terre Haute chapter of the NAACP to connect with talented minority applicants. This focused outreach allows us to pursue a broad and diverse talent pool representative of the communities we serve. We also engage veterans and people with disabilities through focused outreach and recruitment. We utilize veteran service agencies in each of the four states in our footprint to provide veterans with employment opportunities. We also directly engage partners, such as the University of Louisville, to reach candidates who are deaf, hard of hearing, or have other physical or mental disabilities. DEI Policies – Our Corporate Governance Guidelines were updated in November 2020, and reaffirmed in 2021, to include a

commitment to seek Board candidates who are racially, ethnically or gender diverse. Our Board values diverse perspectives and believes the varied skills, knowledge, and experiences of our Board members contributes to robust discussions and a thorough analysis of matters presented. To ensure our Board represents diverse perspectives, the Governance and Nominating Committee includes qualified individuals with a diversity of race, ethnicity and/ or gender in any initial list of candidates when filling a Board position. Currently, there are two female and one ethnically diverse Directors serving on our Board. ender and Diversity Snapshot – We are G committed to a diverse workforce. Currently, 78% of our overall workforce is gender or racially diverse; and 59% of our mid-level officers and managers are gender or racially diverse. Associate Engagement In an effort to expand our culture of diversity and equality, we utilize targeted recruitment, development and retention efforts. We believe a variety of perspectives are essential to understanding the financial service needs of the communities we serve and are important to our continued success. A key to any successful business is its people. First Financial’s goal is to be a place where passionate people can contribute, learn, and grow. We empower our associates and encourage them to take pride in where they work. Each of our associates are shareholders through our ESOP, each earns competitive wages, and is provided opportunities to train for leadership roles. Training is another essential component in the advancement of our associates and our success. In 2021, on average, our associates received over 5 hours of specialized training related to their job functions. 9

61 Positions

Filled Through Internal Promotion

Career advancement, talent retention, and the success of our associates are important parts of our sustained success and resiliency. In 2021, First Financial Bank filled 61 positions through internal promotions. All First Financial associates have access to mental health resources at no cost. These services provide 24/7 access to clinicians and specialists for associates and their family members who may be experiencing anxiety, depression, stress, grief or other life events requiring assistance of mental health professionals. First Financial offers tuition assistance for associates, including those working part-time, who are pursuing educational goals whether it is through a community college, university, a post-graduate degree, or completing other educational programs.

Community Engagement/Outreach Since 2000, First Financial has partnered with Ivy Tech Community College in Terre Haute to 10

provide scholarship opportunities to students. Through this partnership, we established the Students First Scholarship, which is designed for college students who are the first in their families to attend college. The Ivy Tech Terre Haute campus serves students from nine counties. An estimated 85% of these graduates choose to live and work within the communities we serve. In 2021, nine $1,000 scholarships were awarded to eligible students attending the Ivy Tech Terre Haute campus. 2021 marks a milestone as First Financial Bank has invested in the success of Ivy Tech Terre Haute students for more than twenty years. Community Reinvestment Act (CRA) – We are committed to meeting the financial needs of the communities we serve, including, but not limited to, low- or moderate-income geographies; public and private agencies; organizations and institutions; and commercial enterprises. Consistent with the spirit and intent of the CRA, we pursue our mission by: • Seeking to increase access to capital through safe and sound operations and procedures; • Evaluating all credit applications on the

basis of ability to meet resultant financial obligations; • Proactively and continuously assessing the credit and financial needs of the communities within our assessment area; • Encouraging communication with customers and potential customers, particularly those in underserved segments within our footprint, to promote financial literacy and awareness of our products and services; and • Training associates regarding consumer and fair lending laws and, in accord with our commitment to improving the financial health of all socio-economic segments of

our communities, encouraging them to participate in civic and charitable groups. By serving our communities through safe and sound banking practices, we contribute to the success and prosperity of local consumers, community development organizations, businesses, agencies, and other institutions. In 2021, we totaled over $10 million in Community Development Investments under the CRA; this includes philanthropic and community giving, as well as affordable housing investments. First Financial Bank originated over $25 million

20 Years

Scholarship Support


in mortgage loans to borrowers in Low-Moderate Income (LMI) Census Tracts; over $10 million in mortgage loans to minority borrowers; and over $17 million in mortgage loans to LMI borrowers.

e are also proud of the charitable partnerships W we have supported, many of which are partnerships we have enjoyed for decades, such as the United Way.

We also originated more than 1,600 PPP (Small Business Administration Payroll Protection Program) loans, totaling more than $68 million. 24% of those funds were extended to LMI geographies.

Financial Literacy – A financial literacy resource is available on our website at https://www.firstonline.bank/financial-literacy/. This educational resource provides information and other tools designed to enable people to make informed decisions and achieve financial independence. Topics covered include: saving, responsible credit use, home ownership, and financial planning.

mployee Volunteer Activities – We continue E to be proud and supportive of our associates’ community involvement. A few examples of their widespread efforts are raising money for research through the Alzheimer’s Association Greater Indiana Chapter, coordinating Meals on Wheels deliveries, and helping those in need following the devastating tornado outbreak of December 11th and 12th, 2021. Our associates volunteered over 10,000 hours to community service in 2021. To learn more about our associates’ involvement in their communities, please see our 2021 Annual Report.

Over 10,000

Associate Volunteer Hours


upport of education in the communities we S serve is important to us. We believe all students should have equal access to the resources necessary for academic success. In addition to the previously mentioned Ivy Tech scholarships, we were excited to support the Hopkinsville Christian County Public Library and their Student Card program in 2021. This program provides virtual access to learning resources to over 1200 students in Christian County, Kentucky,

Over $10 Million

Community Development Investments

Over $25 Million

Over 1600

Mortgage Loans in LMI Census Tracts

who may not be able to physically visit a library and access the tools and resources available. First Financial is thankful for all our 2021 community partners and the work they do, a few of the organizations we are proud to support include: • Hospice & Visiting Nurses Association of The Wabash Valley • St. Jude’s • Charles E. Brown African American Cultural Center • The Clinton Public Library • Sisters of Providence • Chances and Services for Youth (CASY)

PPP Loans Originated

• • • • • • • • • • • • • •

Parke County Community Foundation The 14th & Chestnut Community Center Union Hospital Foundation The Hamilton Center Terre Haute Boys & Girls Club Gibault School Cradles of Clay County, Inc. YMCA of Vincennes, Indiana Vigo County Public Library The Wabash Recovery Center Boys & Girls Club of Livingston County Marcfirst Hopkinsville-Christian County Public Library Boys & Girls Club of Evansville



Diverse Board Members Added 2020-2021


Governance Commitment to Ethics & Corporate Responsibility – We are keenly focused on the aspects of our business which will ensure our growth and sustainability. It all starts from the top, where the Board is committed to reviewing and assessing how environmental and social factors affect First Financial and the initiatives and strategies which are essential to meeting these challenges. oard & Management Structure – Our Board B of Directors posesses a variety of professional and technical backgrounds, which include business, banking, government, law, accounting, military service, engineering, and education. In 2021, an additional female joined the Board of First Financial Corporation and First Financial Bank. This follows additions in 2020 which added both a female director and an African American director. We believe the combination of diverse professions, talent, experience and backgrounds provides a high level of leadership and a more effective Board. Executive Compensation – The continuing growth and success of our business depends not only on our associates but also on our executives. To attract and retain executives with the skill, knowledge, and motivation to carry out our dynamic strategic plan, the Board’s Compensation and Employee Benefits Committee (“Compensation Committee”) has designed and enacted an executive compensation program which promotes sound governance, furthers our pay-for-performance philosophy, and aligns our executives’ interests with those of our shareholders while eliminating unreasonable risk. Our Compensation Committee is composed entirely of independent Directors as determined under the NASDAQ Global Select Market rules. Each year, the Compensation Committee reviews our executive compensation program

to assure it and the compensation of our executives is consistent with our compensation philosophy and, specifically, that a substantial portion of compensation is paid only if preestablished, objective performance goals are met or exceeded. In exercising its duties, the Compensation Committee considers all elements of our executive compensation program, as well as individual performance, company performance and market compensation considerations, including ESG. The Compensation Committee determines the appropriate allocation of each executive’s potential compensation among base salary, short-term incentive compensation, long-term incentive compensation and other components. The Compensation Committee engages an independent consultant to assist in assessing and developing our executive compensation program. Governance and Nominating Committee – The Board’s Governance and Nominating Committee (“Governance Committee”) is comprised solely of independent Directors and manages risks associated with the independence of the Board, succession planning, and risks associated with the Corporation’s governance structure. To this end, our Corporate Governance Guidelines were updated in 2020, and reaffirmed in 2021, to include a formalized commitment to seek Board candidates with racial, ethnic and gender diversity as well as to monitor for risk associated with environmental, social or governance issues. The Governance Committee Charter requires a periodic review of ESG initiatives and strategy. Internal Audit (“IAD”) – Our Internal Audit Department assists the Board of Directors and our Audit Committee in fulfilling their representative oversight roles. The Audit Committee is comprised entirely of Independent Directors. Internal Audit provides risk-based, 15


Shareholder Support for Executive Compensation

independent, and objective assurance, advice, as well as insight to assist the Corporation in accomplishing its objectives through a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes. The Director of Internal Audit has unrestricted access to communicate with and interact directly with the Board’s Audit Committee, including in private meetings without management present. Our Board has authorized the Director of Internal Audit to: • Have full, free, and unrestricted access to all functions, reports, property, and personnel who may assist in carrying out any engagement, subject to accountability for confidentiality and safeguarding of records and information; • Allocate resources, set frequencies, select subjects, determine scopes of work, apply techniques required to accomplish audit objectives, and issue reports; and • Obtain assistance from the necessary personnel of the Corporation, as well as other specialized services from within or outside the Corporation, to complete the engagement. 16

A Quality Assurance Review (“QAR”) of Internal Audit is performed annually, which is an assessment conducted on the departmentlevel to review and monitor the effectiveness, sufficiency, completeness, and efficiency of our audit process. The QAR assesses conformance with the IIA (Institute of Internal Auditors) International Standards for the Professional Practice of Internal Auditing and Code of Ethics and confirms our audit processes add value. The QAR is presented to the Audit Committee. Every 5th year, an external QAR is conducted by an independent auditor. Whistleblowers – All First Financial associates are trained to use our toll-free whistleblower hotline to submit complaints concerning accounting matters. These matters include, but are not limited to: • Fraud or deliberate error in the preparation, evaluation, review, or audit of any company financial statement; • Fraud or deliberate error in the recording and maintaining of company financial records; • Deficiencies in or non-compliance with our internal accounting controls;

• A misrepresentation or false statement to or by an associate regarding a matter contained in company financial records, financial reports, or audit reports; or • Any deviation from full and fair reporting of our financial condition. ssociates may call a fully independent call A center, available 24 hours a day, 365 days a year, with any good faith complaint regarding an accounting matter. Associates can report matters anonymously to the hotline. First Financial will not discharge, demote, suspend, threaten, harass, or otherwise discriminate

against an associate who makes a report regarding accounting matters. All reports pertaining to accounting matters are emailed directly to the Chair of the Audit Committee, the Director of Internal Audit, and our Chief Risk Officer unless the nature of the complaint precludes the involvement of one of those individuals. Complaints are reviewed with Audit Committee direction and oversight by the Chief Executive Officer, Chief Financial Officer, Director of Internal Audit, and the Chief Risk Officer as appropriate. The whistleblower hotline is tested no less than quarterly.


Whistleblower Hotline


T he Director of Internal Audit maintains a log of all complaints, including their investigation, resolution and a summary of the complaints for the Audit Committee. The complaint log and any complaints are maintained in accordance with our Document Retention Policy. Cybersecurity Oversight – In our continuing effort to keep our network and customer information safe and secure, First Financial follows an active and multi-front approach to information security. Our approach can be broken down into three primary components: 1) Maintaining top industry practices and standards; 2) Board oversight; and 3) Employee training and awareness. Our systems are built to the standards set by the Federal Financial Institutions Examination Council (FFIEC) Cybersecurity Framework and the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF), and undergo frequent testing to ensure we are adhering to our policies and procedures. In 2015, the Board approved and established a Board-level committee to oversee and


Cybersecurity Newsletters


address the security of our systems. The Cybersecurity Committee is charged with several responsibilities, importantly: • Perform an annual review of the cybersecurity risk assessment, or more frequently as the Committee determines. • Oversee First Financial’s cybersecurity program and monitor cyber threats. • Bring cybersecurity issues to the attention of the Board. • Implement and maintain an Incident Response Program using the National Institute of Standards and Technology Cybersecurity Framework or other recognized and acceptable standards. • Promote cybersecurity awareness through training programs and communication with associates and customers concerning everchanging cyber risks. All First Financial associates undergo and are required to complete annual training to assist in protecting our network and data. This training includes areas designed to protect our systems and to raise our awareness; which include among

5 Hours

Average Specialized Training for Each Associate


Cybersecurity Awareness Training for all Associates

other things: • Cybersecurity Awareness • Digital Security and Controls • Remote Access • Types and Methods of Social Engineering • Email Controls • Ransomware • Information Breaches The Chief Information Security Officer reports to the Board no less than quarterly. Vendor Management – Starting with the Board, we take a comprehensive and thorough approach to vendor management for the entire life cycle of a vendor/provider, from evaluating potential providers, ongoing annual reviews, to contract termination. This process ensures that we are able to identify and manage risk

associated with third-parties, including but not limited to operational, reputational, credit, and compliance risks. The Chief Risk Officer reports to the Board no less than quarterly and is charged with overseeing third-party management. In conjunction with the Chief Information Security Officer, Legal Department, and other stakeholders, the CRO employs a process to include: • An evaluation of potential providers • Assigning a Risk Rating to each individual vendor • Initial Due Diligence • Contract Review • Vendor/Provider Inventory • Ongoing Due Diligence • Contract Termination


ESG Data and Disclosures Sustainability Accounting Standards Board (SASB) Standards Index – This is First Financial’s first dedicated disclosure made using the Industry Standards Version 2018-10 issued by SASB. SASB is an independent organization that provides a framework to facilitate the disclosure of comparable, consistent, and reliable ESG information. We are committed to providing relevant ESG information to investors in a meaningful way, and we will continue to evaluate the use of additional SASB metrics in the future.

Commercial Banks Topic Data Security

SASB Code FN-CB-230a.2

Financial Inclusion & Capacity Building


Financial Inclusion & Capacity Building


Accounting Metric Description of approach to identifying & addressing data security risks

Data and cybersecurity are a top priority for First Financial and involve all levels of the organization, from Board oversight and systems engineering to associate training. For a more detailed description of our approach to identifying and addressing these risks, please see the Governance section of this report. (1) Number and (2) amount of (1) 1255; (2) $202,700 loans outstanding qualified to Of this total, 441 loans are programs designed to promote Ag-related. small business and community development Number of no-cost retail 7092 Accounts. This checking accounts provided represents approximately to previously unbanked or 6.5% of our total number of underbanked customers personal checking accounts. By dollar value these accounts represent 3.6% of the total deposits held in personal checking accounts.

All data and information described in the above tables are unaudited and based on the year ended December 31, 2021. Any dollar amounts are reported in thousands.



Topic Financial Inclusion & Capacity Building

SASB Code FN-CB-240a.3

Accounting Metric Number of participants in financial literacy initiatives for unbanked, underbanked, or underserved customers

Business Ethics


Business Ethics


Activity Metric


Activity Metric


Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice, or other related financial industry laws or regulations Description of whistleblower First Financial trains all policies and procedures associates to use our whistleblower hotline regarding accounting matters. Associates may report matters anonymously and are free from all forms of retaliation when making a complaint. To learn more about our whistleblower procedures, see the Governance section of this report. (1) Number and (2) value of Checking – Personal: checking and savings accounts (1a) 106,012; (2a) $1,350,529 by segment: (a) personal and Checking – Business: (b) small business (1b) 15,976; (2b) $1,510,827 Savings – Personal: (1a) 51,264; (2a) $628,910 Savings – Business: (1b) 1201; (2b) $54,414 (1) Number and (2) value Personal: of loans by segment1: (a) (1a) 72,032; (2a) $357,067 personal, (b) small business, Small Business: and (c) corporate (1b) 4548; (2b) $317,026 Corporate: (1c) 20,688; (2c) $515,851

We developed a financial literacy web resource in 2021, which went live to the public in January 2022 through the First Financial Bank website. We do not currently track the number of individuals who access the financial literacy tools and resources we provide. $0.00

Excludes all loans secured by real estate (home purchase mortgages, construction, multifamily, agriculture, etc.) and revolving credit.

All data and information described in the above tables are unaudited and based on the year ended December 31, 2021. Any dollar amounts are reported in thousands.


Mortgage Finance Topic Lending Practices

SASB Code FN-MF-270a.1

Accounting Metric (1) Number and (2) value of residential mortgages of the following types1: (a) Hybrid or Option Adjustablerate Mortgages (ARM), (b) Prepayment Penalty, (c) Higher Rate2, (d) Total, each broken down by FICO score 660 and below, and above 660

Lending Practices


Discriminatory Lending


Activity Metric


Total amount of monetary losses as a result of legal proceedings associated with communications to customers or remuneration of loan originators Total amount of monetary losses as a result of legal proceedings associated with discriminatory mortgage lending (1) Number and (2) value of mortgages originated by category: (a) residential and (b) commercial

FICO 660 and Below: (1a) 821; (2a) $36,466 (1b) 0; (2b) $0 (1c) 287; (2c) $6163 (1d) 1055; (2d) $45,564 FICO Above 660: (1a) 1652; (2a) $125,910 (1b) 0; (2b) $0 (1c) 512; (2c) $22,012 (1d) 2556; (2d) $220,390 $0.00


Residential: (1a) 1145; (2a) $172,629 Commercial: (1b) 653 (2b) $527,394

1 There are 506 ARM/Hybrid Loans with no FICO score data with a balance total of $17,082; these loans are not reflected in the metric table. In total, we hold 651 loans without FICO score data with a balance total of $18,290; these loans are also not reflected in the metric table. 2 The figures for (c) are calculated using the average daily rates of U.S. 30-Year Treasury Bonds for the 5-year period ending December 31, 2021, as the baseline comparison for rates on all portfolio loans. Based on this calculation, these totals reflect portfolio loans with an APR greater than 5.43%. All data and information described in the above tables are unaudited and based on the year ended December 31, 2021. Any dollar amounts are reported in thousands.


NASDAQ Board Diversity Matrix (As of December 31, 2021)

Part I: Gender Identity Directors Part II: Demographic Background African American or Black Alaskan Native or Native American Asian Hispanic or Latino Native Hawaiian or Pacific Islander White Two or More Races or Ethnicities LGBTQ+ Did Not Disclose Demographic Background




Did Not Disclose Gender





2 -

1 13 -



EEO-1 Data Table (As of December 31, 2021)

Man / Male Asian Black or African American Hispanic or Latino White Woman / Female American Indian or Alaska Native Asian Black or African American Hispanic or Latino Native Hawaiian or Other Pacific Islander Two or more races (Not Hispanic or Latino) White Grand Total

Administrative Support Workers 51 3

Executive/ Senior Level Officials & Managers 10 -

First/ Mid-Level Officials & Managers 106 1 -

Professionals 27 -

Service Workers 20 3

2 46 546 1

10 3 -

1 104 152 2

27 28 -

17 -

3 204 729 3

4 17





4 18

8 1


1 1



9 2







505 597

3 13

146 258

27 55


681 943

Grand Total 214 1 6


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