First Financial : Annual Report - 2023

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2023 Annual Report

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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 70 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.

Table of Contents

OurCompany ............................. 2

Chairman'sLetter ......................... 4

ALegacyofLeadership .................... 6

Highlights ................................ 8

Diversity and Inclusion . . . . . . . . . . . . . . . . . . . 13

Community Engagement . . . . . . . . . . . . . . . . . . 14

CorporateGovernance .................... 20

Table of Contents

First Financial Corporation | 2023 Annual Report • 1

189

Years in Business

5th Oldest

National Bank in the

United States

900+*

Our Company

Associates

83*

Banking Centers

7*

Loan Production Offices

THFF

First is the only publicly traded company headquartered in Vigo County, Indiana

First Financial and SimplyBank* Locations

*Number includes SimplyBank locations. This transaction is expected to close in Q2 2024 subject to customary closing conditions, including regulatory and shareholder approvals.

Chairman's Letter

Dear Fellow Shareholders,For over three decades, I have had the pleasure of celebrating the successes of First Financial Corporation, First Financial Bank, their affiliates, and predecessors. What I was initially amazed by, no longer comes as a surprise as our associates have delivered superior performance year after year, fulfilling our continuing promise to provide great products and services to our customers and to create value for our shareholders.

Chairman's Letter

2023 was by no means an easy year as we faced significant headwinds in the form of high inflation, prices, and interest rates. However, not all was bad, as despite slowing loan demand, we grew our loans to record highs. We also increased our dividends and announced our transition to quarterly dividends in 2024.

We did not sit still looking for ways to grow and to expand our footprint in vibrant markets.

In November, we announced our agreement to acquire SimplyBank, a $700 million asset company with loan production offices and branches in the growing East Tennessee and Georgia markets. This transaction is set to close in the second quarter of 2024.

In October, we also announced my retirement as President and Chief Executive Officer of First Financial Corporation and First Financial Bank and the passing of the reins to our next generation of experienced and talented leaders.

recently as Chief Operating Officer. There is a brief description of his experience, education, and training on page 7.

In 2024, we celebrate our 190th birthday. We could not have enjoyed nearly two centuries of success without a dedicated team associates including our experienced and knowledgeable management. I cannot thank them enough for their unwavering commitment to our customers and to maintaining First Financial as one of the best banks in the country.

What we accomplish is not possible without the vision and support of our Board of Directors and their constant focus on providing value to our shareholders. I want to thank them for their confidence.

We have no purpose without our customers and their trust. Many thanks to each and every one of them for their continued business and belief in our brand of banking.

Finally, thank you, my fellow shareholders. We appreciate your confidence and investment.

I hope each of you can join us virtually for our 2024 Annual Meeting of Shareholders on Wednesday, April 17th, 2024 at 11:00 a.m. EDT. You can attend the meeting at virtualshareholdermeeting.com/THFF2024.

I am extremely happy our Board chose, my son, Norman D. Lowery to be our next President and CEO. Norm started as a summer employee and officially joined the bank as a management trainee following graduation from college in 1990. He has held several key positions, mostSincerely,

Norman L. Lowery, Chairman

A Legacy of Leadership

October 20th, 2023 First announced Norman D. Lowery (right) as President and CEO of First Financial Corporation, succeeding his father, Norman L. Lowery (left).

First Financial Corporation | 2023 Annual Report • 5

Norman L. Lowery

A Legacy of Leadership

Norman L. Lowery | Banking leadership with a lasting influence

Norman L. Lowery's tenure at First Financial Corporation and First Financial Bank, where he held the roles of Chairman, President, and Chief Executive Officer, is a story of strategic growth and an unwavering commitment to our customers, associates, the communities we serve, and to our shareholders. His leadership, spanning nearly three decades, significantly shaped the bank's trajectory and future.

associates navigated First Financial through good times and bad, changing regulatory environments, and numerous strategic mergers and acquisitions. During his tenure, First Financial grew from a company with approximately $800 million in assets in 1996, to $4.8 billion in assets at year end 2023, and will soon measure its asset size $5.5 billion with the closing of the SimplyBank transaction.

Lowery's professional journey started in the practice of law, where he specialized in civil litigation, business, and banking law. That background provided him with a strong foundation for the challenges that would lie ahead in his banking career. After joining First Financial in 1996, he, together with our talented

Under Lowery's stewardship, First Financial experienced a remarkable transformation, which includes more than doubling the number of branches and extending the bank's presence from 21 to 50 cities across Illinois, Indiana, Kentucky, Tennessee, and Georgia. First Financial's growth is a testament to Lowery's

vision and his commitment to serving a broader community of customers.

Realizing customer preferences are forever changing, Lowery embraced the implementation of technological solutions, providing an improved experience for our customers and creating value for our shareholders. His leadership during the disruption of the global pandemic was pivotal in guiding the bank through new and varied challenges to ensuring a continuity of service to our customers.

Lowery's contributions extended beyond our financial success. His extensive volunteer work, including coaching youth sports teams and years of service to civic and charitable organizations, has greatly benefited our community and is

Norman D. Lowery | 30+ years of service

Our Board of Directors' choice of Norman D. Lowery to be CEO and President of First Financial Corporation and First Financial Bank is a testament to his years of preparation, hard work, and commitment to First Financial, it's customers, and shareholders.

Mr. Lowery started his career in 1984, as a summer employee mowing grass, running errands, and performing other odds and ends jobs. Following graduation from college, he officially joined the bank as a management trainee. During his tenure, he has held several positions and completed additional education and training, positioning him well for his new role:

evidence of his commitment to making the communities we do business in better places to live.

As Lowery transitions to the role of Non-Executive Chairman at the end of 2024, his legacy at First Financial Corporation is one focused on strategic growth, innovation, and a deep-rooted commitment to the communities we serve. His tenure as Chairman, President, and CEO has positioned First Financial as a strong, engaged community partner, which is the cornerstone of our belief that First Financial should always give back and support a better future for everyone.

• • Maintenance Technician

• • Management Training Program Graduate

• • Investment Trust Officer

• • Private Banker

• • Multiple Board of Director roles

• • Chief Operating Officer for past 13 years

• • Master of Business Administration Graduate

• • Dale Carnegie Leadership Graduate

• • Cannon Financial Institute Graduate

• • American Banker's Association Stonier School of Banking Graduate

• • Accredited Fiduciary Investment Advisor

His diverse experience, coupled with a strong work ethic and commitment to the values of our company, has enabled him to lead First Financial to years of continued success.

Norman D. Lowery

First Financial Corporation | 2023 Annual Report • 7

Over 30 Years of Consecutive

Dividend Increases

Our Performance

3.27%	$4.1 Billion	$5.08	$528 Million
Loan Growth	Deposits	Fully Diluted	Shareholders Equity
Earnings Per Share