2022 corporate responsibility Report c o m m i t m e n t t o e c o n o m i c a n d s o c i a l e q u a l i t y
The information found in F.N.B. Corporation’s 2022 Corporate Responsibility Report (CRR) is developed in good faith based on internal reporting by FNB’s business lines and corporate functions. It is intended to illustrate FNB’s commitment to sound environmental, social and governance (ESG) practices. FNB’s annual reporting of its ESG efforts as described in the CRR is informed by generally accepted practices, well-respected frameworks, including the Sustainability Accounting Standards Board (SASB) and Leadership in Energy and Environmental Design (LEED) rating system, and by information tracked in our Report of Condition and Income and by institutions such as the Small Business Administration and Consumer Financial Protection Bureau.
T A B L E O F C O N T E N T S 2021 Impact at a Glance .................................. Awards and Recognition ................................. A Message From Our CEO ............................. Mission and Core Values ................................. Investing in Communities ................................ Supporting Our Team ....................................... Innovating for Our Customers ........................ Operating Sustainably ..................................... Operating Responsibly..................................... Corporate Overview ........................................ Appendix: SASB Index .................................... 2 3 4 5 6 16 20 24 26 29 30 1 2022 corporate responsibility Report
Community Investment $900 million total lending and investments in low- to moderateincome (LMI) communities $764 million in residential mortgages and small business loans in LMI neighborhoods $295+million originated in community development loans $5.1+ million in charitable giving 87,000+ volunteer hours since 2018 Pledged $670,000+ through the United Way Workplace Giving Campaign Diversity and Inclusion 33% of the Board of Directors is female; 13% of the Board of Directors is racially or ethnically diverse 64% of our workforce is female 12% of our workforce is racially or ethnically diverse 51% of all executives and managers are female, racially or ethnically diverse, or both Financial Education and Innovation 64,000+ users of our online financial education program from 2018 through 2021 10,200+ informational videos played using our virtual Solutions Center 12,000+ transactions conducted at our ATMs with video teller access 74,000+ web visits to our Personal and Business Knowledge Centers 2 2022 corporate responsibility Report All statistics are for the 2021 calendar year unless otherwise noted. 2021 IMPACT AT A GLANCE
Performance and Governance Namedoneof theWorld's Best Banks by Forbes One of the top 100 banks on Forbes’ list of America's Best Banks Named to JUST Capital’s annual list of America’s Most Just Companies Listed as a Top 100 Organization by PA Business Central Community Investment and Responsible Products Received “Outstanding” Community Reinvestment Act (CRA) rating from the Office of the Comptroller of the Currency (OCC) Received Honorable Mention for the American Bankers Association (ABA) Foundation’s Community Commitment Award for Community and Economic Development Received Bank On certification for our eStyle no overdraft checking account Three Green Building Initiative (GBI) Green Globes certifications and Honorable Mention in the GBI 2020 Project of the Year Awards for FNB Tower — Raleigh, the largest LEED Platinum-certified project in the Triangle region by square footage Diversity and Inclusion Mansfield Certified by Diversity Lab in 2020 for hiring and advancement of minorities and historically underrepresented persons One of 10 finalists in the National Association of Corporate Directors (NACD) Diversity, Equity and Inclusion Awards Winner of the NACD Three Rivers Chapter 2021 Board Diversity Award Rated a “3+” by 50/50 Women on Boards for our percentage of women directors Named among the Best of the Best Financial and Banking Companies by Professional Woman’s Magazine 2022 Women’s Choice Award® Best Company to Work For winner for Women and Millennial Women Exceptional Workplace Honored more than 35 times as a leading workplace, including: Top Workplace USA — Energage (two consecutive years) Best Places to Work — Pittsburgh Business Times (10th year) Top Workplace — Pittsburgh, Northeast Ohio and South Carolina — Energage Best Places to Work Finalist — Baltimore Business Journal (fifth consecutive year) 3 2022 corporate responsibility Report FNB AWARDS AND RECOGNITION
4 The world continues to change very rapidly, and we have endured many new and challenging events during the last several years. Throughout, I have been incredibly proud of our team's passion for doing what is right for all of our stakeholders — customers, communities and shareholders — and for one another. We have remained committed to creating new services and enhancing the ways we do business to provide expanded financial opportunities and help our customers thrive. FNB is deeply aware of the socioeconomic challenges that persist in our society, and we know that economic disparities widen in uncertain times. The pandemic has had a disproportionate impact on underserved groups who now face inflation and rising costs they may not be able to overcome. Now more than ever, we remain dedicated to diversity, equity and inclusion in our Company and in the communities where we operate. We have continued to act on — and receive external acknowledgement for — our commitment to economic and social equality and are working to close the opportunity gaps that have acted as barriers to progress. In 2021, we continued to be proactive in driving change for our clients and communities. One example is FNB’s innovative eStoreTM, which uses digital technology to improve access to financial resources, including educational tools and the ability to purchase products and services and bank remotely. In addition, our nationally recognized eStyle account offers banking solutions for traditionally underbanked communities without the burden of overdraft fees. We also began construction on FNB Financial Center in Pittsburgh’s Hill District, which will make FNB one of only a few public companies in the U.S. to establish its headquarters in a predominantly minority community. Our investment in our new tower will add jobs that directly benefit the neighborhood, while our more than $200 million in loans, investments and grants in the community ensure that all its residents and businesses can participate in the development’s positive economic effects. In this report, you’ll find many of the major corporate responsibility contributions and commitments, new initiatives and significant achievements that occurred in 2021. We are proud of these accomplishments, which represent the extensive efforts that our team makes every day. I sincerely thank all our employees for working together to make a positive impact and create a more prosperous future for everyone we serve. Vincent J. Delie, Jr. Chairman, President & CEO F.N.B. Corporation First National Bank 2022 corporate responsibility Report A MESSAGE FROM OUR CEO
5 TO HELP our customers achieve economic success and financial security by building enduring, mutually beneficial relationships based on trust and integrity TO BUILD a diverse workforce where employees can learn, grow and prosper as contributing members of a winning team TO IMPROVE the quality of life in the communities we serve TO CREATE sustainable, long-term value for our shareholders Our core values provide our work with purpose and guide our interactions with each other and our stakeholders: Integrity and Honor Excellence and Passion Teamwork and Collaboration Innovation and Creativity Leadership and Recognition 2022 corporate responsibility Report FNB’s mission makes it clear why we are here: FNB’S MISSION AND CORE VALUES
6 The events of the past few years have further reinforced our commitment to strengthen the communities where we operate, especially those most in need of our support. This means providing financial products and services that benefit our customers, investing in community organizations that are expanding financial access and using our philanthropic giving to partner with organizations driving progress in our communities. Combining the best of our community-focused business practices and philanthropy, we have worked to foster homeownership, small business development, entrepreneurship, and financial education for our customers and communities. Our deliberate, strategic approach to supporting LMI and historically underserved individuals and communities has been recognized with an “Outstanding” rating from the OCC on our CRA performance evaluation for 2018-2020. FNB is one of fewer than 10 percent of banks nationwide to receive that rating, the highest that the OCC offers. 2022 corporate responsibility Report INVESTING IN OUR COMMUNITIES
7 FNB’S COMMITMENT TOTHE HILL DISTRICT Pittsburgh’s Hill District has a rich history as a center of African American arts and culture. The city’s first predominantly Black district, it was a place where music, art and commerce came to life during the first half of the twentieth century. But the 1950s and ‘60s brought economic decline, disruptive urban renewal efforts and civil unrest to the neighborhood. By 1990, more than 70 percent of the community’s residents and most of its once-thriving businesses were gone. After a long period of economic decline, the Hill District is now undergoing a renaissance — and FNB is honored to play an instrumental role in its vibrant present and bright future. Photo courtesy of Urban Redevelopment Authority of Pittsburgh
8 FNB Financial Center Our commitment to the Hill District is clear from the location of our new headquarters. Currently under construction, the new FNB Financial Center will bring the neighborhood nearly 550,000 square feet of state-ofthe-art space and a beautiful new green community area. We broke ground on FNB Financial Center in September 2021, embarking on one of the largest, most socially responsible urban development initiatives in the country. Our new headquarters will expand upon FNB’s long history of service in the Hill District community while helping to create thousands of jobs and nearly $1 billion of new development in Pittsburgh. Our new location will make FNB one of only a few public companies in the U.S. to establish its headquarters in a predominantly minority community. This speaks to our long-standing commitment to locate facilities in urban, predominantly minority, LMI or rural communities where we can provide jobs and development opportunities. Our investment in FNB Financial Center, including a substantial equity injection to make the project possible, is part of more than $200 million in loans, investments and grants we have committed to the Hill District. To ensure our investments have a positive impact, our teams have worked closely with community leaders on the underlying strategy for the entire development. We also have taken action to ensure that the Hill District community can take part in the economic and wealth building benefits created by FNB Financial Center. We have established some of the country’s highest requirements for participation in contracting by minority and women-owned businesses and have contributed millions of dollars to programs that enable local firms to get involved in the project. Fostering Local Involvement The development team has set a goal for FNB Financial Center to be developed and built: - 30 percent by minority-owned businesses - 15 percent by women-owned businesses As of March 2022, nearly $27 million in contracts have been made to minority-owned businesses and more than $7 million in contracts have been made to women-owned businesses.
9 Beyond FNB’s Headquarters — Strategic Investments in the Hill District Revitalizing the Hill District isn’t just a matter of building. It’s also a matter of giving the existing community the support it needs to thrive. Here are a few of the ways we’ve curated our funding to have the most impact: • $20 million in investments and loans for affordable housing, revitalization and economic development in Hill District communities • $7.2 million in Local Economic RevitalizationTax Assistance (LERTA) revenue. Thanks to a creative financing solution provided by FNB in collaboration with the Pittsburgh Penguins, The Buccini/Pollin Group and Clay Cove Capital, funds which otherwise would have been paid out over a 10-year period were made immediately available for project development initiatives and counseling programs, youth education initiatives, rent and mortgage assistance subsidies, other wealth building initiatives, and/or the preservation of Hill District institutions • $5 million toward a proprietary FNB program to close financial gaps for real estate projects • $3 million contributed to the Housing Opportunity Fund to fix roofs across the Hill District, helping residents increase the resale value of their homes • $1 million in an equity contribution to an Urban Redevelopment Authority of Pittsburgh program that provides working capital for minority contractors through the Avenues of Hope Small Contractor Line of Credit Program, ensuring that local firms can participate in the FNB Financial Center development • $1 million to Invest PGH, Inc., a CDFI, for its Accelerating Business Expansion Loan (ABEL) program, which stimulates growth for small- and medium-sized businesses through flexible financing for real estate purchases, development and expansion • A $600,000 multiyear commitment to the Hill Community Development Corporation through the Pennsylvania Department of Community and Economic Development's Neighborhood Partnership Program • $165,000 to the Hill District Federal Credit Union to bolster its deposit base and to update its core computer systems • $100,000, in partnership with the Pittsburgh Penguins, to the Ammon Community Recreation Center in the Hill District to help create a Rec2Tech computer lab and maker space to bridge the digital divide for local students and families • $20,000 to Rebuilding Together Pittsburgh to assist low-income homeowners in the neighborhood with funding for major repairs to ensure safe, sanitary and comfortable living
10 MAKING HOMEOWNERSHIP AFFORDABLE AND ACCESSIBLE For generations, homeownership has been a cornerstone of building individual and generational wealth and a key to thriving communities. It is central to our mission and to the hopes and dreams of our customers. Many families faced disruptions to their income over the past two years, either through job losses or because they had to scale back or step away from work to care for family. Building on our earlier fee waiver and loan payment deferral initiatives, FNB introduced two new refinance programs in 2022, Fannie Mae RefiNowTM and Freddie Mac Refi PossibleSM, to make it possible for individuals and families facing hardships to keep their homes while managing the expenses of daily life. Designed specifically for homeowners with income at or below the area median income for their markets, these programs make it easier and more affordable to refinance a current Fannie Mae or Freddie Mac mortgage. In addition to lower rates and lower payments, the programs also offer a credit of up to $500 to cover appraisal costs. These new refinance options add to FNB’s already wide range of affordable mortgage programs, including proprietary financing solutions designed for LMI borrowers seeking to buy, improve or rehabilitate homes. FNB has increased our Closing Cost Assistance Grant in multiple urban markets, where we contribute up to $5,000 toward closing costs for borrowers who are either LMI or who are purchasing property in an LMI or predominantly minority community. Since launching the program in mid-2021, we have provided approximately $300,000 in support. The Closing Cost Assistance Grant promotes economic equality since the majority of the LMI areas where it is available include historically underserved minority communities. Another way we hope to make homeownership more accessible is by adding new tools and capabilities for our customers. Many first-time homebuyers are more comfortable researching and making their financial choices in a digital environment. To meet these customers’ needs, we launched a fully digital home mortgage experience with self-service tools to guide them through the process. We also expanded our suite of online loan applications to include mortgage products, home equity lines of credit and home equity installment loans as well as auto loans, small business loans and credit cards. Based on the high number of online applications we have received, customers clearly appreciate these digital offerings. Rebuilding Together Given the importance of homeownership to our customers and our communities, FNB is proud of our work with Rebuilding Together, a national nonprofit organization that makes essential repairs to help families in need stay in their homes, maintain the value of their residences and improve the neighborhoods where they live. We have regularly sponsored Rebuild Days, where our employees volunteer to rehabilitate existing homes in our communities. In addition to hands-on help with repairs, we also offer grants to Rebuilding Together affiliates throughout our footprint and assist these local chapters in applying for state tax credit programs as well as funding through the Federal Home Loan Bank’s Affordable Housing Program. In 2021, our second year of participation, FNB was a $20,000 Gold Level Sponsor of Rebuilding Together Charlotte. Our partnership with Rebuilding Together is just one way we are making it possible for homeowners to keep their homes as a source of pride, comfort and stability.
HELPING SMALL BUSINESSES THRIVE At FNB, we believe in the power of small businesses to improve and uplift local economies and communities. In 2021, we launched Physicians First to better support the varying financial needs of physicians, dentists, veterinarians and other professions that require a Doctor of Medicine. The program includes 20-year unsecured student loan refinancing, residential mortgages with 100 percent financing available, and loans and business banking solutions for medical practices. Because these solutions are available in a digital bundle, it is easier for busy physicians to manage their banking successfully. Such enhanced digital access is something we are working to deploy across our diverse customer base, and we have taken steps to streamline the loan application and approval process for all of the small business owners we serve. Small Business Success by the Numbers In 2021, we: • Originated $1 billion in approximately 10,500 Small Business Administration (SBA) Paycheck Protection Program (PPP) loans, for a total of $3.6 billion since 2020, helping to achieve forgiveness for $3.3 billion through the SBA’s process by the end of 2021. • Number 27 out of all lenders through both rounds of PPP (by loan volume)* • Number 6 out of all lenders for in-footprint PPP borrowers (by loan volume)* • Proactively reached out to more than 100 nonprofit organizations • Were a Top 50 SBA 7(a) lender nationally for the second consecutive year and the highest ranked Pittsburgh-based institution. • 48 percent year-over-year increase in SBA 7(a) origination volume** • Top 10 position in SBA districts serving Pittsburgh, PA; Cleveland, OH; North Carolina; Virginia and Washington, D.C.** Creating a Community for Women in Business The FNB Women in Business Council was formed in 2017 with the purpose to support, promote and empower women-owned and managed businesses in the markets where we operate with educational programming, mentoring, networking and more. The Council consists of 20 members representing 17 departments in our Pittsburgh Region. Last year, the Council was proud to offer a mentoring program for students at Point Park University in Pittsburgh for the fourth consecutive year. It hosted and sponsored numerous inperson and virtual networking opportunities for early-career women who are executives and business owners, including a Dress for Success event that aimed to provide women with a network of support, professional attire and development tools to thrive in work and in life. In addition to regular mentoring, networking and educational programs, the Council also supports community events like Pittsburgh’s annual Juneteenth parade and a wide array of charitable organizations that help women in the markets we serve. *Excluding non-bank financial institutions. **Based on performance during the federal fiscal year ending September 30, 2021. 11
12 PARTNERINGWITHCDFIS TO SUPPORT VULNERABLE COMMUNITIES Our work with Community Development Financial Institutions (CDFIs) enables us to support critical social and economic development projects with funding and hands-on assistance for individuals and businesses located in economically vulnerable rural and urban communities. FNB partners with CDFIs across our footprint where we operate with investments, grants and volunteer activity. In the past year, FNB has expanded our work with CDFIs through Equity Equivalent (EQ2) Investments, which are securities that CDFIs can sell to investors to raise more capital for their communities. By underwriting these innovative securities, FNB can engage with CDFIs in more meaningful ways than ever before while giving community-minded investors — including FNB—new ways to deploy their capital for the greater good. Through EQ2 Investments, FNB can provide an innovative source of financing that empowers CDFIs to serve distressed communities. This approach has been embedded in our efforts to support revitalization in the Hill District (see page 7). Many FNB employees serve on the boards and loan review committees of CDFIs and certified microlenders, including Johnstown Area Regional Industries (JARI), Shenango Valley Enterprise Zone, Bridgeway Capital and Northside Community Development Loan Fund. Here are a few of the other CDFIs we partnered with and supported in 2021: NHS of Greater Berks: Invested $1.5 million to help individuals and families with lower incomes in Pennsylvania’s Johnstown, Pittsburgh, Harrisburg, Lancaster and Wilkes-Barre/Scranton metropolitan areas with the financing they need to buy or improve their homes. Carolina Small Business Development Fund: Provided a $1.1 million line of credit, maturing in 2022, to deliver small business loans, training and research to aid entrepreneurs throughout North Carolina. We also sponsored Black EntrepreneurshipWeek. Thread Capital: Provided a grant to support an increased focus on rural entrepreneurs of color in Eastern North Carolina through capital, coaching and overall business support. Baltimore Community Lending: Provided a grant for supplying loan capital to small real estate developers and small business owners in Baltimore who are committed to developing underserved neighborhoods and may have difficulty getting a loan from a bank.
EMPOWERING CUSTOMERS WITH FINANCIAL EDUCATION We believe that banks have an ethical and practical responsibility to teach all our customers about our tools and how they can be used to their benefit. A bank account is often the first step toward financial stability and the ability to access credit, build wealth and plan for the future. Because the impact of financial education over the course of a lifetime is profound, we take our role seriously in bridging the knowledge gap with empathy, products that prioritize customer success and transparent education about how to use them. We continued to expand the breadth of the financial education we offer and the various channels where it can be accessed, including online, mobile and our eStoreTM. Our Financial Insights digital program connects key financial concepts to real-world scenarios, while the Knowledge Center on FNB’s website houses content to help consumers and business owners learn about financial topics. When designing our financial education programming, we drew on the insights of numerous community organizations that represent a range of minority and LMI groups. The result is a program of interactive modules on vital topics such as “Managing your checking account,” “Building and maintaining good credit,” and “Buying your first home” as well as “Preventing overdraft fees.” We also offer digital tools to deliver a more personalized, hands-on approach and ensure customers can easily find appropriate products for their individual needs. Our Help Me Decide tool uses customers' answers to questions about their financial goals and preferences to match them to a wide range of FNB services and solutions, including our no-overdraft checking account, eStyle. Throughout our footprint, we further promote financial literacy with grants and through employee volunteers who provide financial education in partnership with nonprofit organizations. 13
Employees Make the Difference FNB’s employees play an integral role in how we help to foster financial literacy in our communities. The manager of our Summit Office in Erie, PA, has been conducting a Financial Literacy Class for the past 10 years at the Erie City Mission. She developed the content that became part of the core curriculum in the Mission's “New Life” program for individuals seeking drug and alcohol rehabilitation. The financial course includes budgeting, banking, credit, lending and cognitive thinking around spending. In one of our offices in Charlotte, NC, our team is working hard to help customers and communities bridge the financial learning gap. This group has delivered literacy instruction to community organizations, including the Urban League of Central Carolinas, Lead Charlotte, the Academy of Goal Achievers and West Mecklenberg High School. Additionally, this team has visited a local school to speak with students, kindergarten through eighth grade, about the importance of checking and savings accounts and the role banks play in the financial wellness of families and individuals. These are just select examples of inspiring work FNB employees are doing in each of our markets. RECOGNIZING, SUPPORTING AND HIRING VETERANS At FNB, we are indebted to our veterans for the sacrifices they have made to protect our country. Our efforts to support military veterans are focused in several key areas. Homeownership&Helping to Build Strong, Stable Families To offer veterans the opportunity to own a home, we originated $20.9 million in Veterans Affairs loans in 2021. For the past six years, we have sponsored an annual promotion where we donate $1 to veteran-support organization Operation Homefront each time a customer uses FNB Online Banking to pay a bill or transfer funds to an external account. Small Business Support FNB also funded many small business development and entrepreneurship programs in 2021, focused on offering resources to businesses owned by women and veterans. For example, we supported Increasing H.O.P.E. (Helping Others Prosper Economically) Financial Training Center in Charleston, SC, a nonprofit organization that supports entrepreneurs who are veterans and women of color. Our funding helped the organization expand its Business Success Center model into a three-track program to offer support at every phase of small business development, from personal assessment and planning, to start-ups, to expanding existing businesses. Workforce Development Welcoming veterans home also means helping them make the transition to civilian life. Our Talent Acquisition team partners with a host of organizations including The Guardians Nest, Inc.; Corporate America Supports You (CASY); Marines for Life; and the American Legion, to recruit more current and former service members for open positions. FNB also supports an ongoing scholarship program in conjunction with Pittsburgh Hires Veterans to assist female veterans returning to school and work with paying for day care during class or job interviews, textbooks, new business start-up costs and related expenses. 14
15 CONTRIBUTING TO PARTNERS WHO MAKE A DIFFERENCE We support the causes that matter to our employees, our customers and our communities. In 2021, we provided a total of $5.1 million in corporate giving to nearly 1,500 organizations throughout our footprint. For example, FNB: • Was a founding contributor for the Chuck Cooper and Josh Gibson Center for Equity and Education within the Rowland School of Business on Point Park University’s campus in Pittsburgh, PA. The Center helps create equity and opportunities in education and employment for youth and families from communities of color. FNB is providing financial education programming in addition to our monetary support. • Provided a $50,000 grant to benefit Neighborhood Allies’ Centralized Real Estate Accelerator, which strives to create more opportunities for ownership and investment in neighborhoods of color. • Awarded a $50,000 grant to the North Carolina Central University Foundation to support a financial literacy center and new commercial real estate program at this historically Black university. • Issued a grant of $30,000 to Habitat for Humanity Susquehanna, serving Cecil and Harford Counties in Maryland, to hire and pay for skilled laborers and to continue to build affordable housing when the pandemic made the use of volunteers unsafe. • Funded PowerLink, which serves a population of entrepreneurial business owners in Harrisburg, PA, who need additional assistance identifying strategies to help their businesses stabilize and grow. • Supported Pride events celebrating the LGBTQ+ community through both sponsorships and employee volunteerism in multiple markets. VOLUNTEERING FOR OUR NEIGHBORS AND OUR COMMUNITIES In addition to the philanthropic support FNB provides to nonprofit organizations across our footprint, our employees regularly contribute their time to volunteer for the causes that are important to them and the communities they serve. We are especially proud of our partnership with United Way, whose structured volunteer opportunities give our team more ways to make a difference. Through United Way’s Workplace Giving Campaign, the FNB Foundation provides a dollar-for-dollar match for FNB employee pledges. In 2021, the campaign raised more than $670,000, highlighting the generosity of our employees.
16 At FNB, we realize that our success depends on the success of our employees, and we have built a culture that supports employee excellence. To succeed and innovate as a company, we must attract, develop and retain the best and brightest talent. We do this through thoughtful recruiting, continued professional development and regular opportunities for recognition. We strive to create a collaborative, open and equitable working environment where our team members are recognized for their contributions and able to balance their priorities at work and at home. Over the years, we have been at the forefront of the industry, developing a comprehensive, family-friendly benefits program that includes generous paid parental leave, financial support for new parents and caregiver leave as well as vacation and flex time, and one of the most attractive 401(k) matches in the industry. Our employee-centric philosophy also shaped the support we extended to accommodate caregiving and other personal needs of our employees during the pandemic. 2022 corporate responsibility Report SUPPORTING OUR TEAM
17 COMMITMENT TO INCLUSION AND DIVERSITY An equitable workplace is one where everyone has opportunities to succeed and contribute. We believe an inclusive environment, where every perspective is valued, creates a better workplace and makes us stronger and better suited to serve our customers and communities. In addition to fostering an environment where people can bring their whole selves to work, the range of experiences, views and skills our diverse employees bring to FNB fuels our innovation, deepens our connection with our customers and contributes to more sustainable growth, success and value for our shareholders. FNB’s Diversity Council To drive inclusion in FNB’s business and communities, our Diversity Council unites members across FNB who offer different perspectives through their backgrounds and experiences. The Council works to promote an inclusive culture so that FNB can better recruit and nurture the best talent to contribute to a highly productive workforce that reflects the customers and communities served within our footprint. The Council has influenced many of FNB’s diversity, equity and inclusion initiatives, including fair and equitable hiring and development practices, our formal mentoring program and Employee Resource Groups. The Council has been an invaluable asset that supports FNB in ensuring opportunities to excel are accessible and effective, growing the capabilities and reach of teams in FNB’s markets, and enabling employees to deliver a differentiated customer experience. FINDING, HIRING AND KEEPING THE BEST PEOPLE FNB works tirelessly to ensure its workforce includes employees from a wide range of cultures, races, ethnicities, genders and backgrounds. To address the challenges that many employers are facing in this historically strong labor market, we continue to keep our starting wages competitive in our markets and offer a generous, comprehensive benefits package that compares well in our regions and in our industry. All employees also are encouraged to find and source talent and can be rewarded through FNB’s employee referral program. Fair and equitable hiring processes ensure we not only have the best talent but also an environment where these individuals can grow and succeed. To improve our pipeline of diverse candidates, every member of our Company's talent acquisition team is an AIRS® Certified Diversity and Inclusion Recruiter (CDR). We partner with nearly 50 affinity organizations, colleges and universities to recruit and place diverse candidates. In 2021, FNB made over 280 outreach efforts to these groups regarding employment opportunities and other ways we can support employment in our local communities. FNB participated in virtual job fairs at Historically Black Colleges and Universities (HBCUs), including Winston-Salem State University (NC) and North Carolina Central University and in similar events at Central State University (OH), Cheyney University of Pennsylvania and Lincoln University (PA).
18 We meet with, educate and help develop the next generation of leaders before they enter the workforce fulltime. Our 2021 class of interns was our largest yet with 45 percent female and 21 percent racially or ethnically diverse. We also hired the highest percentage of interns into full-time roles from this most recent class. This success is especially notable given that this class had to adapt to a hybrid (in-person and remote) program. Opening Paths to Success for Our Employees We want to make sure that all members of our team have the opportunity to be fulfilled professionally, and we offer development programs that focus on giving employees the tools to grow their careers with FNB. In addition to leadership development for high-performing employees, we provide a wide array of learning and growth opportunities, including networking events, mentoring and tuition reimbursement for continuing education. Programs include: Developing Leaders • Emerging Leaders Program brings together a cross-functional group of employees who are in middle management or new to senior leadership roles to focus on building skills, sharing experiences and ideas, and fostering connections and deeper collaboration. Executive Council Members nominate high-potential candidates within their organizations with an emphasis on having participants who represent the diversity and talents throughout FNB. • Mentor Program, established in 2018, pairs early-career employees with more experienced executives and leaders who can share institutional knowledge and professional guidance as well as create new connections. Advancing Customer Service Careers • BranchManager Foundations Program is focused on branch managers during their first 90 days in the role. This tailored leadership development program prepares new managers for success by helping to introduce and reinforce FNB’s culture, including our commitment to innovation and expectations for teamwork and collaboration. • Relationship Banker Program is a new program launched in 2021 that supports more effective and meaningful customer engagement. Sparking and Rewarding New Ideas • Five Star Awards support innovation and collaboration with Company-wide recognition and cash awards for employees’ dedication and original ideas. These awards incentivize creative thinking and deeper curiosity about the needs of our customers and our business. Taken together, these programs support employees at all stages of their careers, no matter where they work in the Bank, and help create a positive and rewarding working environment. The inaugural cohort of FNB’s Emerging Leaders Program celebrated their graduation in December of 2021.
19 FNB’s Diverse Workforce 64% of our workforce is female; 12% of our workforce is racially or ethnically diverse 51% of all executives and managers are female, racially or ethnically diverse, or both “Outstanding” rating received from independent employee engagement survey, which includes questions assessing diversity and inclusion at FNB Diversifying Our Partnerships Our ongoing commitment to inclusion and diversity touches all parts of our business. Our Vendor Management program encourages vendors to adopt inclusive hiring practices. For 2021,10 percent of all our suppliers consisted of companies owned by members of historically underrepresented groups. The construction of our new headquarters was planned with specific targets for diverse vendors. (See “FNB’s Commitment to the Hill District” on page 7). Our Legal Department was part of the first cohort of the Diversity Lab's Mansfield Rule: Legal Department Edition and achieved Mansfield Certification after completing the year-long program. The program measures whether legal departments have affirmatively considered at least 50 percent women, racial and ethnic minorities, LGBTQ+ lawyers, and lawyers with disabilities for leadership, high-visibility opportunities, and secondment or intern programs within the law department, and for leadership roles when hiring new outside counsel. Because we have been deliberate in seeking out and expanding our relationship with partners that align with these criteria, the majority of the law firms we work with on a regular basis employ the Mansfield Rule.
20 When defining our mission as an organization, we placed the economic success and financial security of our customers and communities first. We work every day to build enduring, mutually beneficial relationships based on trust and integrity. Better serving our customers means continually addressing challenges they face and providing solutions for their evolving needs and preferences, including a shift for many toward the flexibility and convenience of digital channels. Other customers need in-person, one-on-one support to achieve their financial goals. When serving small businesses, it can come down to helping them make the most of opportunities and finding the guidance and support they need. For all of our customers, service involves communication and education about the financial subjects that matter most. ACCESS TO BANKING IS ACCESS TO OPPORTUNITY We believe that a bank should make life easier for its customers. Unfortunately, the advantages of having a bank as a partner haven’t always been available among lower-income groups, for reasons ranging from cost to ingrained misconceptions about financial services. That is one reason why expanding the credit, capital and banking services available to LMI communities continued to be a priority for our Company in 2021. 2022 corporate responsibility Report INNOVATING FOR OUR CUSTOMERS
21 A persistent problem for LMI customers has been the fees related to overdrawing a checking account. We launched our eStyle checking account to alleviate this burden by offering an account with no overdraft fees. That feature, along with its affordability, high functionality and focus on consumer safety, earned eStyle national Bank On certification from the Cities for Financial Empowerment Fund (CFE Fund). The response to eStyle has been overwhelming with our customers making it the second most popular account in 2021. The eStyle account is an expression of FNB’s effort to make financial products and services more accessible to unbanked or underbanked consumers. Prepandemic estimates from the Federal Deposit Insurance Corporation (FDIC) in 2019 accounted for as many as seven million Americans with no banking account of any kind. Ensuring that minority community members have access to traditional banking relationships is part of FNB’s pledge to build the financial strength and trust of historically underserved groups. To further promote fair and equal access to financial services and products, FNB was one of the first financial institutions to make the Project REACh Pledge to Strengthen Minority Depository Institutions (MDIs). This pledge aims to help reduce barriers that prevent full, equal and fair participation in the nation’s economy by traditionally disadvantaged communities. ENHANCING OUR SERVICES FOR A DIGITAL AGE Twenty years ago, when online banking first appeared, some people imagined that online banks would replace the traditional banks with their branches, on-site staff and personal service. The reality isn’t so simple. When it comes to making important decisions about their financial needs, customers still want to visit a branch and meet with their banker. At the same time, offering a full array of banking options on mobile and online platforms has become a necessity. Indeed, in the early days of the pandemic, these services were vital for our customers to safely access their banking remotely. Launched in 2016, our Clicks-to-Bricks strategy is designed to offer solutions seamlessly through both digital and physical channels, regardless of where or how our customers choose to bank with us. Part of this strategy is FNB's substantial investments in technologies that enable our Company to stay at the forefront of shifting customer preferences.
22 eStoreTM – Reaching Customers Where They Live To expand the services available to customers and to make those services more accessible, we unveiled our eStoreTM in 2021. Available through Online Banking as well as the FNB Direct mobile banking app, it combines innovative technology with personalized service to help customers find the tools, information and support they need. This unique interface, which also will be available in all FNB branches later in 2022, can help customers easily find, select and purchase financial products using product filtering and comparison resources, including the Help Me Decide guided selection tool. eStoreTM also allows customers to schedule appointments with FNB experts, open deposit accounts or apply for consumer and small business loans online or on a mobile device, offering a more transparent and convenient account opening process. To inform and educate our customers, we continue adding more financial insights and educational material to our website and eStoreTM. In 2021, we also significantly upgraded the FNB Direct mobile banking app with a more intuitive design and new services, including Customer Service Chat to make it even easier for customers to get assistance with their accounts. On the back end, we have introduced a chatbot to help customer service representatives answer frequently asked questions quickly and consistently. After its mobile integration in November 2021, eStoreTM visits increased by more than 50 percent for the year.
23 We have additionally expanded our ATM footprint by nearly 60 percent in the past two years, supplementing our branch network and increasing the number of FNB touchpoints in our communities. FNB is making it easier for customers to bank on their own terms through our growing network of Interactive Teller Machines (ITMs), where customers can use video chat to conduct transactions with tellers even outside of regular business hours.
24 FNB works to minimize the impact our operations have on the environment. We integrate efficiency and sustainability considerations into our strategy for the construction, renovation and maintenance of our properties as well as our guidelines for employee behavior and the paperless options available to customers. One example of how we bring this approach to life is the nearly 250,000 square feet of LEED-qualified space we will occupy through our prominent towers in Raleigh, Greensboro and Charlotte, NC, and the completion of FNB Financial Center. Throughout our footprint, FNB has embraced sustainable offices and sustainable practices, such as recycling. We recycled 1,900 tons of paper over the past two years, saving more than 30,000 trees. In addition, we hope to accelerate the energy savings and the reduced carbon footprint offered by our Clicks-to-Bricks strategy, which enables a wider range of paperless transactions and transactions that can occur without a trip to a bank branch. 2022 corporate responsibility Report OPERATING SUSTAINABLY
25 SUSTAINABLE FINANCE As a financial institution, FNB has the opportunity to help drive environmental progress by providing capital to support renewable energy and other low-carbon solutions. We have financed a number of companies that are advancing sustainability innovations, including enterprises that turn waste — whether from landfills or poultry farms — into energy. We are focused on expanding these efforts and evolving our approach to sustainable finance. In parallel, we are closely monitoring climate risk and regulatory disclosure requirements as they develop. LEED (Leadership in Energy and Environmental Design) is the most widely used green building rating system in the world. Green Globes Building Certification is a nationally recognized green rating assessment, guidance and certification program. FNB Tower — Raleigh is the largest LEED Platinumcertified project in the Triangle by square footage. It has earned three GBI Green Globes certifications and Honorable Mention in the GBI 2020 Project of the Year Awards. FNB Tower — Charlotte FNB Greensboro
26 Our customers and stakeholders trust us, and we take seriously our responsibility to earn that trust every day. We operate in an ethical, responsible way and embed that approach into our processes and business practices. Additionally, we monitor and enforce our standards and expectations from the top down, starting with our Board and as defined by our Code of Conduct at: https://www.fnb-online.com/About-Us/Investor-Information/Corporate-Governance. FNB’S BOARD OF DIRECTORS As a group of respected leaders with a shared mission, the FNB Board adheres to a strict set of governance practices, policies and standards. Our Board and its committees oversee risk management, regulatory compliance, financial performance and management strategies and practices, including diversity, equity and inclusion, escalation management processes, compensation programs and strategic plan progress. To better measure our own performance and to learn more about industry best practices, FNB regularly engages with shareholders and proxy advisory firms about corporate responsibility. 2022 corporate responsibility Report OPERATING RESPONSIBLY
27 Board members participate in training programs about governance practices and measure FNB’s governance practices against the globally recognized Investor Stewardship Group Corporate Governance Principles for U.S. Listed Companies, as well as other national best practice standards. In addition, the Board annually conducts a robust self-assessment of its governance practices and performance by reviewing a wide range of materials, including reports on the FNB employee engagement survey results. More information about FNB’s corporate governance approach is available in our 2022 Proxy Statement at: https://www.fnb-online.com/about-us/investorinformation/reports-and-filings/annual-reports. A Diverse, Accomplished Board 33% of the Board of Directors is female;13% is racially or ethnically diverse.1 17% of the Corporation and Bank Board Committee Chair positions are female, racially or ethnically diverse. Diversity is established as a key consideration when selecting new Board members. Our Board contributed 2,530 volunteer hours and held 34 leadership positions at 55 organizations in 2021. 1These figures exclude our Independent Lead Director and our Chairman/CEO. Supporting Diversity Among Public Boards FNB is proud to be a founding sponsor and principal grant provider for the African American Directors Forum (AADF). Dedicated to improving diverse representation among the ranks of C-suite executives and Board membership of publicly traded companies in the U.S., the AADF has evolved into a national initiative. Since its founding in 2017, the AADF has more than doubled the number of Black directors on Pittsburgh’s public boards and grown a national network of more than 1,000 Black leaders.
28 RISK MANAGEMENT Managing risk is an essential function. Our Board has oversight of FNB’s multiple layers of defense, which are led by senior management and are a focus for every member of our team. Throughout the year, the Board receives regular reports about FNB’s risk management processes, challenges and issues from our Audit, Compensation, Risk and Credit Risk, and CRA Committees. Each of these Board committees consists entirely of independent Directors who qualify under the requirements of the SEC and NYSE. FNB’s executive management, internal information security and compliance departments as well as our Chief Risk Officer update our Board throughout the year about any important issues related to risk management. At the same time, FNB takes a proactive approach to internal risk management by regularly conducting assessments across our organization to identify and mitigate emerging risks, including those pertaining to anti-money laundering, climate change, corporate compliance, fraud and cybersecurity threats. CYBERSECURITY Our information security and cybersecurity teams take a comprehensive approach to the prevention and detection of and response to data security and information systems risks. They deploy methods including infrastructure security, vulnerability identification and remediation, incident detection and response, and more. In 2021, we made enhancements to our internal processes to better protect our employees and customers. These included penetration testing, including social engineering efforts, email and telephone phishing awareness, internal and external attack simulation, as well as ransomware self-testing, enhanced email filtering and email authentication techniques to validate FNB senders. This work is reinforced and supported by our employees, who are required to complete training programs to identify and escalate a wide range of risks, including cybersecurity and anti-money laundering activity.
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