Building a Stronger Future' corporate responsibility Report 2023
2023 corporate responsibility Report The information found in F.N.B. Corporation’s 2023 Corporate Responsibility Report (CRR) is based on information currently known to us and 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 (SBA) and Consumer Financial Protection Bureau (CFPB).
Building a Stronger Future' TABLE OF CONTENTS 2022 Impact at a Glance ...................................... 2 FNB Awards and Recognition ............................. 4 A Message From Our CEO ................................. 6 FNB’s Mission and Core Values ........................... 7 Strengthening Our Communities ........................ 8 FNB's Investment in the Hill District ................... 18 Invested in Our Greatest Asset ........................... 20 Innovating for Our Customers ............................. 24 Focused On Environmental Sustainability .......... 26 Outstanding Governance .................................... 30 Corporate Overview ............................................. 33 1
2023 corporate responsibility Report 2 Community Investment $1 billion in total lending and investments in low- to moderate-income (LMI) communities $843 million in residential mortgage and small business loans in LMI communities $186 million in community development loans $6.1 million in charitable giving Nearly 100,000 volunteer hours since 2018 Diversity and Inclusion 64 percent of workforce is female 13 percent of workforce is racially or ethnically diverse 52 percent of executives and managers are female, racially or ethnically diverse, or both 60 percent of promoted employees were women 2022 IMPACT AT A GLANCE
Building a Stronger Future' 3 Sustainability Approximately 200,000 square feet of LEED-qualified space upon completion of FNB Financial Center More than 2,000 LED lights installed More than 1.5 million pounds of paper recycled Strength and Stability More than $44 billion in assets as of March 31, 2023 Experienced executive management team Solid liquidity and capital position Strong, granular and diverse deposit base Peer-leading credit quality metrics Diverse franchise (geographic and industry) Lower risk profile with significant investments in enterprise-wide risk management Consumer Access and Education More than 72,000 users of financial education program since 2018 More than 85,100 Knowledge Center page views More than 5,300 eStyle nooverdraft-fee accounts opened More than 12,500 video tellerassisted transactions at ATMs with TellerChat (ITMs) 43 percent increase in ATM access, with more than 1,200 machines Approximately 350 branches equipped with eStore® kiosks All statistics are for the 2022 calendar year unless otherwise noted.
Community Investment and Responsible Products • Achieved an “Outstanding” Community Reinvestment Act (CRA) rating from the Office of the Comptroller of the Currency (OCC) • Received recertification from Bank On for eStyle no-overdraft-fee checking account Exceptional Workplace Honored more than 50 times as a leading workplace, including: • Top Workplace USA — Energage (three consecutive years, including 2023) • Top Workplaces Culture Excellence award winner for Innovation, Leadership and Work-Life Flexibility — Energage • Top Workplace — Pittsburgh, Northeast Ohio, Baltimore, Charlotte and South Carolina — Energage 2023 corporate responsibility Report 4 Performance and Governance • Named one of the World's Best Banks by Forbes (three consecutive years, including 2023) • One of the top 100 banks on Forbes’ list of America's Best Banks (13 consecutive years) • Named to JUST Capital’s annual list of America’s Most Just Companies (six consecutive years) • Listed as a Top 100 Organization by PA Business Central (nine years) • Ranked as an American Banker/RepTrak top four bank for reputation by non-customers • Rated A+ for financial health by DepositAccounts.com FNB Awards and Recognition
Diversity and Inclusion • Mansfield Certified (2020 and 2021) and Mansfield 2.0 Certified (2022) by Diversity Lab for hiring and advancement of minorities and historically underrepresented persons in Legal department • Named a DiversityJobs Top Employer (three consecutive years) • Rated a “3+,” the second highest tier, by 50/50 Women on Boards for 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 • Recognized as one of America’s Greatest Workplaces for Diversity by Newsweek and Plant-A Insights Group • An Energage Top Workplaces Culture Excellence award winner for Diversity, Equity and Inclusion (DEI) Practices The above are highlights of FNB’s awards and recognition for corporate responsibility. For a complete list of accolades, please visit the Awards and Recognition page at fnb-online.com. Building a Stronger Future' 5
FNB’s commitment to corporate responsibility is an important part of our identity as a Company. We recognize that we are accountable to our communities, clients, employees and shareholders and believe that supporting our constituencies leads to great performance. This accountability shapes our decisions and guides our path forward. Our dedication to serving our various stakeholders and passion for doing what is right ensures that we continue to have a positive impact through our operations, products, services and investments. In 2022, we continued to leverage our digital technology, including eStore, ATMs and ITMs, to increase access to financial services and education. At the same time, we further enhanced our investments in social and economic development, focusing on opportunities to create jobs, build generational wealth and foster overall community vitality. We are especially proud of our impact in Pittsburgh’s Hill District. The site of FNB Financial Center, our future headquarters, is a model of how we strive to positively affect the quality of life in the communities we serve. Along with our substantial contributions to this predominantly Black and historically underserved neighborhood, the FNB Financial Center project is designed to include Hill District residents and businesses in its significant community benefits. The development is currently exceeding the community’s requirements for minorityowned business participation with nearly $44 million in contracts awarded to minority- and women-owned enterprises to date. Our building was the catalyst necessary to trigger nearly $1 billion in anticipated economic expansion — ensuring that FNB’s growth and success serve the greater good. Overall, FNB’s strength and stability are core to our ability to serve our constituents, so we apply rigorous standards not only to our performance but also to how we achieve it. While remaining attentive to our corporate responsibility objectives, our Board of Directors and experienced leadership team employ proven strategies and protocols to manage risk and drive superior results. This report records just a few of the 2022 highlights of corporate responsibility at FNB, made possible through the contributions of our dedicated team. As we continue to elevate our impact, I thank our employees and neighbors for their roles in our work to build stronger communities and stronger futures for us all. 2023 corporate responsibility Report 6 A MESSAGE FROM OUR CEO Vincent J. Delie, Jr. Chairman, President & CEO F.N.B. Corporation First National Bank
Building a Stronger Future' 7 FNB , s MISSION AND CORE VALUES FNB’s mission makes it clear why we are here: Our core values provide our work with purpose and guide our interactions with each other and our stakeholders: our customers achieve economic success and financial security by building enduring, mutually beneficial relationships based on trust and integrity TO HELP Integrity and Honor Excellence and Passion Teamwork and Collaboration Innovation and Creativity Leadership and Recognition a diverse workforce where employees can learn, grow and prosper as contributing members of a winning team TO BUILD the quality of life in the communities we serve TO IMPROVE sustainable, long-term value for our shareholders TO CREATE
2023 corporate responsibility Report 8 Strengthening Our Communities FNB’s success is deeply connected to the strength of the communities where we operate. In addition to our leading banking solutions, we incorporate responsible lending practices, investments, philanthropy and service to promote growth and economic equality throughout our footprint, including in LMI areas and majority-minority communities. We strive to ensure all families and businesses can access tools and support to achieve their financial goals. Our success in providing credit, investments, capital and banking products and services to LMI and majority-minority communities is reflected in the “Outstanding” rating we earned from the OCC on our most recent CRA performance evaluation. “Through our partnerships and engagements with nonprofit and community leaders, the trust of our neighbors, and our inclusive business offerings, we are driving sustainable growth and creating meaningful opportunities for our communities. While there is still much work to do, FNB’s clear mission and dedicated employees ensure we are well positioned to keep making a difference.” Brent Semachko Director of Corporate Responsibility In 2022, FNB committed: $1 billion in total lending and investments in LMI communities. $843 million in residential and small business loans in LMI communities. $186 million in community development loans.
Building a Stronger Future' 9 Fostering Access to Affordable Housing Home Ownership can be the foundation for financial security, generational wealth and strong, stable communities. As part of our ongoing commitment to make homeownership more affordable and accessible for everyone, FNB continues to make significant strategic progress with the products, services and financial education resources available to our customers and communities. Along with a range of government-backed options, we have long offered proprietary affordable mortgage products for consumers who otherwise may not qualify to buy or renovate a home. In 2022, we made the qualification criteria for our proprietary solutions even more flexible by increasing the maximum debt-to-income ratio we will consider. Additionally, we now accept alternative data sources, such as an applicant’s rent and utility payments, to determine creditworthiness so that a lack of credit history does not impede access to an affordable mortgage. A noteworthy component of our proprietary affordable programs is our Closing Cost Assistance Grant, which provides up to $5,000 toward closing costs for LMI borrowers or borrowers in LMI census tracts in our service areas. Coupled with up to 100 percent financing through our proprietary products, this grant substantially reduces or eliminates up-front costs that often get in the way of homeownership. Statistics continue to show persistent racial gaps in homeownership. In 2022, FNB introduced a Special Purpose Credit Program (SPCP), advancing our goal to expand access to credit — home financing, in particular — in majorityminority communities. The program, which is comprised of new mortgage (FNB Home Ownership Plus) and home equity products (FNB Home Equity Plus), is meant to give borrowers in marginalized neighborhoods more tools to buy or improve homes. Our aim is to foster more vibrant economic outcomes and wealth building opportunities for residents of these historically underserved communities. In conjunction with the launch of the SPCP, FNB pledged to initially provide up to $3 million in closing cost assistance annually through its multiple proprietary affordable mortgage programs. FNB’s 2022 Home Financing Highlights $37 million originated through proprietary programs $392 million in total home mortgage loans to borrowers in majority-minority communities, including nearly $56 million in home equity loans $605,000 in closing cost assistance for qualifying homebuyers FNB Home Ownership Plus • Up to $5,000 in closing cost assistance • 100 percent financing up to $726,200 • No mortgage insurance requirement • Lower credit scores and alternative trade lines considered FNB Home Equity Plus • Installment loan and lines of credit available • Financing from $5,000 to $50,000 • Lower credit scores considered • Unique in the industry
2023 corporate responsibility Report 10 Affordable programs are only one way we support homebuyers. We also have a coordinated outreach strategy to proactively engage with community leaders and members about our beneficial products, services, financial education and other resources. Most recently, FNB hired Community Homeownership Specialists (CHSs) in several of our urban markets. When designing the new role, we discovered an opportunity for CHSs to strengthen our existing outreach and connect underserved communities to financial education, products and services that put homeownership within reach. To start, CHSs are driving awareness of FNB’s affordable mortgage programs among local influencers and leaders. CHSs also work closely with our Community Development Relationship Managers to identify trusted organizations and real estate agents who support marginalized groups. Building on FNB’s commitment to financial education, CHSs partner with Retail Bankers to conduct informative seminars that prepare attendees for all aspects of the homebuying process. In parallel, CHSs identify and engage consumers who desire to become homeowners in the future to ensure they have what they need when they are ready to buy. We realize, too, that homeownership is not always an option for everyone, and we continue to support affordable housing through low-income housing tax credit (LIHTC) investments. FNB’s contributions preserve affordable housing for low-income seniors while also supporting renovations, new amenities and services in recent projects at Bennett Place in Pittsburgh, PA, and Park Heights Apartments near Baltimore, MD. Bennett Place is a 52-unit, age-restricted, multifamily property owned by Retirement Housing Foundation (RHF). RHF is responsible for more than 190 housing communities serving low-income residents across the U.S., Puerto Rico and the U.S. Virgin Islands. FNB’s $5.2 million LIHTC investment helped fund RHF’s efforts to upgrade Bennett Place, which was built in 1990. Located in Baltimore City, Park Heights Apartments is an 84-unit affordable senior housing complex that is undergoing significant rehabilitation. FNB committed a $5.6 million LIHTC investment which will go toward community and fitness facility improvements and new programming, such as telehealth service and onsite nurse access. FNB conducts homebuying workshops.
Building a Stronger Future' 11 In addition to LIHTC investments, we leverage impact fund contributions to keep families in safe, affordable homes. For example, we participated in a $12.1 million joint investment in the Cape Fear Collective to support the acquisition and renovation of rental units in nearly 70 properties in the Wilmington, NC, area. Cape Fear Collective also will provide financial counseling to assist renters on their journeys to home ownership. Supporting Small Business Small businesses are economic engines in our communities. They are a source of personal and community wealth, innovation and regional vitality. The importance of providing opportunities for these ventures and their founders and employees is clear. FNB provides products, services, capital and consultation for small businesses and entrepreneurs. Small business bankers with specialized expertise are embedded in our communities, where they design banking and financing solutions based on in-depth knowledge of their local marketplaces. 2022 LIHTC Investments $19.8 million in total LIHTC investments 344 new affordable units made available FNB’s 2022 Small Business Support by the Numbers $461 million in 895 loans originated to small businesses and small farms in LMI communities Top 100 SBA lender for 3 consecutive years $355 million in 2,694 loans originated to small businesses and small farms with <$1 million in annual revenue $137.7 million in SBA 7(a) and 504 loans $122.8 million in community development loans promoting small business or economic development Top 10 SBA ranking in Maryland (Baltimore) (3), Virginia (Richmond) (3), North Carolina (5) and South Carolina (10) We also have an active and engaged SBA lending team who quickly connects both early-stage and established companies with government-backed financing. Our comprehensive array of resources ensure that all small businesses have a framework for success. We emphasize support for diverse entrepreneurs and enterprises in marginalized communities to promote greater economic equality in our service areas. In addition to our small business products and services, we contribute funding and guidance to nonprofits and community development organizations that assist underrepresented businesses. A 2022 highlight was a $2.5 million equity commitment to Black Tech Nation Ventures (BTN.vc), a majority Black-owned, Pittsburgh-based venture capital fund that provides funding and resources to Black-led startups and firms with diverse founders and teams. The partnership with BTN.vc advances our shared goal of creating jobs and increasing access to capital for underrepresented entrepreneurs throughout FNB’s footprint and nationwide. Hear directly from clients who have achieved their financial goals with support from FNB by visiting fnb-online.com/sbasuccess-stories.
2023 corporate responsibility Report 12 Additionally, FNB is a partner of the Greenwood Plan, a Pittsburgh-based nonprofit focused on the collective health of Black communities. The group aims to create a network for local business owners to connect with peers and other organizations, advocate for Black entrepreneurs and professionals, support and train larger organizations on initiatives that promote equity, and enrich lives with health and wellness programming. In the fall of 2022, we helped sponsor Greenwood Week, which gave Black entrepreneurs opportunities to learn from subject matter experts, take relevant classes and connect with peers. We also provided a $25,000 grant to Baltimore’s Innovation Works, which recruits and supports Black- and women-owned and/or -led social enterprises that are underserved by entrepreneurship and economic development programs. Our grant will assist Innovation Works’ efforts to leverage social entrepreneurship as a catalyst for local job creation, wage growth and long-term economic stability. Educating Our Customers and Communities We believe we have an obligation to provide our customers and communities with the skills to effectively use banking products and services. FNB deploys a multipronged approach to financial education, meeting people where they are both physically and in terms of their knowledge level. Our overarching goal is to make consumers and businesses more independent and confident in their financial decisions. Accessibility is a chief priority in financial education, which is why we leverage digital technology to increase our reach. Our Financial Insights education program is available through eStore (using online and mobile devices or in FNB branches) and through partnerships with various community organizations. With more than 72,000 users since 2018, the program’s interactive modules and easyto-understand video content explore vital topics such as “Managing your checking account (and avoiding overdrafts),” “Buying your first home,” and “Building and maintaining good credit.” It was another successful year for the Women in Business Council. We provide specialized support for the growing number of women-led business owners. With members representing 18 departments, the FNB Women in Business Council continues to grow in scope and success alike, supporting, promoting and empowering women-owned and -managed businesses. The Council regularly hosts networking events for women who are at the start of their entrepreneurial journeys or are stepping into leadership positions. Members also provide mentoring to local college students.
Building a Stronger Future' 13 Additionally, our Knowledge Center at fnb-online.com shares these modules as well as informational articles meant to enable businesses and consumers to expand their financial expertise. Articles are free of product promotion which fosters even greater trust in FNB as a partner. Sometimes, however, there is no substitute for in-person learning. Our employees are actively engaged in our communities and regularly contribute to financial education presentations, workshops and special events. We also collaborate with local groups and institutions that are dedicated to education. As a few select 2022 examples, FNB: • Extended our support for Grace-Mar Services, Inc., a Charlotte-area nonprofit. FNB provides financial literacy training and credit counseling assistance for Grace-Mar’s YouthBuild Program, which creates pathways to education, jobs, entrepreneurship and other opportunities for young people who left high school without a diploma. • Built on our relationship with the Western Pennsylvania Interscholastic Athletic League (WPIAL) to provide educator resources for their member high schools. The downloadable presentations enable teachers to provide students with valuable financial education as they near graduation and a new level Our Commitment in Action in Charlotte The Uptown Charlotte branch team is an inspirational example of how FNB activates financial education in our communities. This group frequently presents to community organizations, including the Urban League of Central Carolinas, Lead Charlotte, the Academy of Goal Achievers, My Sister’s House, Grace-Mar Services, Inc., and several elementary and high schools — whether focusing on saving and budgeting for children, or credit building for adults. In 2022, the team furthered their connection with Alpha Kappa Alpha Sorority, Inc., America’s premier sorority for Black women, by sponsoring the 2022 Queen City Entrepreneurship Conference. At the event, the Manager of the Uptown Charlotte Office provided banking guidance to local entrepreneurs and business owners, while the team was onsite to answer questions and network. Similar content also is shared with the Women’s Business Center of Charlotte on a quarterly basis.
2023 corporate responsibility Report 14 of independence. Students also can use self-paced modules from our High School Financial Education Center, focusing on three learning tracks — budgeting, saving and investing. • Expanded our relationship with Slippery Rock University (SRU) with an on-campus presence and exclusive agreement to provide banking services and financial education to students and employees. As part of the relationship, FNB introduced a specialized checking package and SRU-branded FNB debit cards for SRU students. Throughout our footprint, we regularly partner with colleges and universities to recruit new talent, gain insight about products and services, and strengthen engagement with the next generation of banking customers. Giving Where It Counts Investment and philanthropy are mainstays of FNB’s intentional approach to corporate responsibility. We value and appreciate our customers and communities for providing us opportunities to grow into a premier regional banking institution, and we strive to be generous neighbors in kind. We fund a broad range of charitable organizations, economic development groups, events, schools and programs that enrich our regions. In 2022, we provided: • $100,000 to Riverlife to restore the Allegheny Landing Dock as an outdoor recreational site in Pittsburgh. • $20,000 to SCRUBS, a workforce development program in Harrisburg, PA, that connects underserved youth to healthcare career opportunities. • $15,000 to Southeast Raleigh Promise, a historically Black neighborhood that became the first Purpose Built Community in Raleigh/ Wake County, NC, in 2015. The Purpose Built model focuses on improving outcomes in housing, education, economic mobility, health and wellness. 2022 Giving Snapshot $6.1 million in total charitable giving 20 percent increase over 2021 1,580 organizations supported
Building a Stronger Future' 15 • Grants supporting multiple Urban League chapters in Baltimore, MD; Washington, D.C.; Cleveland, OH; Pittsburgh and the Shenango Valley in Pennsylvania; and the Central Carolinas. • Impactful sponsorships and employee volunteerism at events benefiting organizations such as the Cleveland Clinic; St. Jude Children’s Research Hospital in Charlotte, NC; the American Heart Association in Cape Fear, NC; the YMCA in Harrisburg, PA, and dozens of other local nonprofits. Additionally, we continue to contribute to disaster relief. Last year, we gave $45,000 to the American Red Cross for humanitarian assistance in Ukraine, incorporating both employee and Company contributions, and donated more than 80 pallets of personal protective equipment to the Federal Emergency Management Agency (FEMA) to aid Hurricane Ian recovery efforts. Partnerships with Community Financial Services Providers FNB partners with other community financial services providers to benefit our regions. Our Company was an early signer of the Project REACh Pledge, which strengthens Minority Depository Institutions (MDIs) and helps disadvantaged communities to participate in the U.S. economy. FNB’s MDI support is especially evident in our long-standing partnership with the Hill District Federal Credit Union (HDFCU) in Pittsburgh. When the HDFCU lost its primary bank in 2017, we quickly stepped up to open an account so the MDI could serve its members’ banking needs. The relationship has grown over time, with FNB contributing funds to boost the HDFCU’s deposit base and update its computer system. We also emphasize investments in Community Development Financial Institutions (CDFIs), which focus on lending and business development in underserved areas. In addition to traditional funding packages, we increasingly deploy Equity Equivalent (EQ2) Investments, innovative financial vehicles that enable CDFIs to strengthen their capital structures.
A glimpse at our CDFI investments in 2022: • Community Growth Fund: We made a $750,000 EQ2 investment in this CDFI serving Western Pennsylvania and West Virginia. The funds created access to capital for families seeking Ways to Work auto loans as well as for community organizations that advance affordable housing, job creation and initiatives to halt community deterioration. • Neighborhood Community Development Fund: Our $500,000 EQ2 investment funds loans for small business financing, affordable housing and strategic real estate developments throughout Allegheny County (Pennsylvania). • Progress Fund: We invested $1.2 million through historic tax credits to aid the Progress Fund as it rehabilitates a building in Hazelwood, PA. When complete, the structure will house three separate breweries and create a destination to bring consumers into the disinvested neighborhood. Empowering Future Leaders From elementary age through college or trade school and beyond, it is vital that we prepare young people to achieve in the classroom and in their careers. In 2022, education was prominent in our overall community impact strategy as was demonstrated by several key commitments: • The Pittsburgh Promise: It was a special moment in September when the first five students were named “F.N.B. Corporation Scholars of The Pittsburgh Promise” in conjunction with our $1 million total commitment to the organization. The Pittsburgh Promise promotes educational aspirations among urban youth, funds scholarships for students at Pittsburgh Public Schools (which have minority enrollment of 70 percent) and fuels a prepared and diverse regional workforce. F.N.B. Corporation Scholars, five of whom will be named annually, will have the opportunity to build mentoring and professional relationships with our Company while they pursue their postsecondary degrees. 2023 corporate responsibility Report 16 2022 F.N.B. Corporation Scholars of the Pittsburgh Promise. Current and planned future state of the Progress Fund’s Hazelwood Brewery project.
• Biztown: FNB’s storefront in Biztown, a Junior Achievement of the Central Carolinas program, is part of a simulated city where nearly 10,000 sixth graders will visit and “work” during the school year. As “citizens” learn to run a miniature community, our branch is a place where students can serve as chief executive offer, chief financial officer, bankers and customers. The program teaches collaboration skills, the exchange of goods and services, and the mechanics of a local economy. FNB also participates in Biztown with Junior Achievement of Central Maryland. • Girls Leadership Academy of Wilmington (GLOW Academy): FNB employees from the Eastern North Carolina Region participated in an event at the GLOW Academy, helping high school seniors (and their parents) fill out student aid applications for their freshmen year of college. GLOW Academy, a public charter school, educates young women from diverse backgrounds in a nurturing community with a rigorous college preparatory curriculum to develop leaders who succeed in college and beyond. • Pennsylvania Educational Improvement Tax Credits (EITC): Investments in the EITC program remain an important way for FNB to support educational institutions, and we provided nearly $1.9 million to 109 organizations through the program in 2022. With the EITC program, eligible businesses that contribute to a scholarship organization, educational improvement organization and/or pre-kindergarten scholarship organization receive tax credits, creating an extra incentive to support educational groups. Building a Stronger Future' 17 FNB employees at GLOW Academy. FNB's Biztown storefront and our newest "employees."
2023 corporate responsibility Report FNB’s Investment in the Hill District It won’t be long before FNB Financial Center joins the Pittsburgh skyline. We are excited to welcome employees to 26 stories of environmentally friendly, state-of-the-art space — and we are proud that our new corporate headquarters exemplifies our corporate responsibility strategy in action. FNB purposefully locates facilities in urban, predominantly minority, rural and/or LMI areas. When we chose to establish our headquarters in one of Pittsburgh’s most historic Black neighborhoods, we were steadfast in our pledge that our growth would benefit the community’s residents and businesses. We are directly committing more than $200 million in loans, investments and grants toward the Hill District’s revitalization, building on the significant anticipated economic impact of the total FNB Financial Center development. In 2022, we saw our multipronged approach to improve the quality of life in the Hill District continue to advance with significant progress on multiple initiatives, many of which were led by FNB. 18 FNB Financial Center’s Socioeconomic Impact Nearly $1 billion in economic expansion 30 percent minority-owned enterprise participation in contracting Thousands of jobs created 15 percent women-owned enterprise participation in contracting 28 acres of LEED-qualified space Nearly $44 million in contracting commitments to minority- and women-owned enterprises to date
Building a Stronger Future' 19 Cultural Revival Our $600,000 multiyear commitment through Pennsylvania’s Neighborhood Partnership Program is supporting work by the Hill Community Development Corporation (Hill CDC) on the iconic New Granada Square mixed-use redevelopment. The project will restore the famed New Granada Theater and is expected to be the hub of a new arts enclave and 40 units of adjacent affordable housing. Affordable Housing FNB also provided nearly 250 hours of technical assistance to developers applying for Affordable Housing Program (AHP) Awards from the Federal Home Loan Bank of Pittsburgh, resulting in 51 new units set to be built in the Hill District. AHP’s grants and subsidized loans go toward the acquisition, construction or rehabilitation of housing for families with incomes at or below 80 percent of the area’s median income. Family Health In conjunction with the Urban Redevelopment Association of Pittsburgh, we provided a loan to a Hill District property developer whom we connected to the East Liberty Family Health Care Center (ELFHCC). The Federally Qualified Health Center is a wellknown fixture in the Hill District, but its former facility was condemned. With the financing for a new building, ELFHCC can continue to provide full-service medical and dental services to its 2,500 patients and offer a robust health care option for the community. On-the-Ground Support On a grassroots level, FNB employees participated in 2022’s Best Books for Babies Diaper Distribution, a Hill District event organized by Carnegie Library of Pittsburgh and Western Pennsylvania Diaper Bank. Volunteers from the Women in Business Council, an internal young professionals’ group and other departments handed out free two-week supplies of diapers and wipes (38,000 diapers altogether) as well as 2,900 Best Books for Babies bundles. Also in 2022, a multidepartment group of FNB volunteers joined together to beautify August Wilson Park in order to protect and preserve an important greenspace. What’s Next? FNB Financial Center is expected to open in 2024. Through our substantial investments, our employees will thrive, more jobs and homes will be created, artists will find their voice and most importantly, residents will share in reinvigorated pride and hope in their neighborhood.
2023 corporate responsibility Report Invested in Our Greatest Asset Our employees are both beneficiaries and drivers of FNB’s achievements. Delivering an inclusive, productive and positive work experience is a significant element of corporate responsibility for our Company. We strive to deliver a comprehensive compensation and benefits package that addresses the full scope of employees’ personal and professional needs. Human Resources continually reviews and adjusts our packages based on competitive analysis. As a result, our minimum hourly wage for non-commissioned employees exceeds requirements at a federal level and in every state where we operate. Additionally, in 2022, we enhanced our vacation and leave offerings, adding a flex day for all employees and more vacation days for non-exempt employees with fewer than five years of FNB service. Employees have access to family-focused benefits that include caregiver leave, six weeks of paid parental leave, financial support for new parents, backup childcare services and pet insurance. We also offer one of the most attractive 401(k) matches in the banking industry and an opportunity to further share in our Company’s success with an additional Performance-Based Company Contribution when FNB achieves certain financial goals. To promote healthy living and wellness, we offer programs such as biometric screenings, health and financial education services, and fitness challenges with rewards. In 2023, we are introducing Teladoc Mental Health confidential counseling as part of our increasing focus on total wellbeing, adding to our Employee Assistance Program (EAP) that provides free and confidential services for a variety of work/life issues. We also empower team members to fulfill their career goals with training and development programs that support all levels of the organization. 20 Online, Virtual and In-Person Training Completed by FNB Employees in 2022 Nearly 140,000 total hours More than 93,100 courses and classes
In addition to leadership development for high-performing employees, we provide networking events, mentoring, tuition reimbursement for continuing education, and access to more than 170 virtual and/or instructorled courses covering required training as well as additional learning opportunities. Committed to Diversity and Inclusion Diversity and Inclusion (D&I) is integral to our goals as a financial institution, and we are making great progress in the ongoing evolution of our D&I commitment. Cassy Cooper, our Manager of D&I, works closely with FNB’s leadership team to further refine our D&I strategy, ensuring it is culturally effective and aligned with our commitment to our various stakeholders. In 2022, we focused on our internal D&I infrastructure, making sure we have resources in place to design and activate impactful initiatives in our Company and communities. FNB’s D&I infrastructure includes three primary groups who work cross-functionally with all client-facing and support departments. Tier 1 — Diversity Council: Expanded to 35 members in 2022, the Diversity Council acts in both a leadership and consultative capacity to execute the D&I strategy. The Council serves as the main advisor to the Manager of D&I and provides leadership to the Regional Diversity Committees. • Membership: All Regional Presidents as well as two members from each FNB region. • Cadence: The Diversity Council meets bimonthly under the direction of the Manager of D&I. Tier 2 — Regional Diversity Committees: These groups provide support and guidance for diversity efforts within their regions. The committees are led by their region’s Diversity Council members and guide the Employee Resource Groups (ERGs) and Inclusion Councils. Building a Stronger Future' 21 D&I Strategy: Stakeholder Goals Employee Goal: Continue to advance our internal culture of D&I Shareholder Goal: Continue to strengthen our position in the markets we serve to ensure growth and stability Customer Goal: Reaffirm our commitment to provide culturally competent products, services and education for our increasingly diverse customer base Community Goal: Enhance the financial wellbeing of the diverse communities within our footprint FNB’s Diverse Workforce 64 percent of our approximately 4,200 employees are female. 13 percent of our workforce is racially or ethnically diverse. 52 percent of our executives and managers are female, racially or ethnically diverse, or both.
2023 corporate responsibility Report 22 FNB took significant steps to foster inclusion throughout our Company in 2022. Hiring Diverse Talent • AIRS® D&I certification for all recruiters • 280+ outreach efforts to diversity and community partners for employment and other opportunities • Consistent engagement with on-campus groups to recruit and place diverse candidates, including five Historically Black College or University (HBCU) recruiting partnerships Building Cultural Competence • More than 9,400 hours of Workplace Inclusion and Inclusive and Positive Workplace training completed by FNB employees Increasing Diverse Leadership for the Future • More than 60 percent of all promoted employees were women • More than 50 percent of participants in the Emerging Leaders Program for high-potential employees were women, racially or ethnically diverse, or both • More than 50 percent of our formal mentoring program participants were women, racially or ethnically diverse, or both • Nearly 70 percent of interns were women, racially or ethnically diverse, or both • Membership: Seven to 10 regional employees who have been nominated by a member of the Diversity Council, a line of business or themselves, and who have been approved by the Manager of D&I. • Cadence: Regional Diversity Committees meet monthly and provide quarterly updates to the Diversity Council. Tier 3 — ERGs and Inclusion Councils: These voluntary, employee-led groups support inclusive practices throughout our footprint. FNB hosts a growing list of nearly a dozen ERGs, organized by and for women, African Americans, young professionals, LGBTQ+ employees and more. • Membership: ERGs are comprised of employees who share similar characteristics and who support each other by creating a sense of community and assisting with personal or professional development. Inclusion Councils bring together leaders from various lines of business who share similar characteristics and are focused on driving change and progress for FNB. • Cadence: Both ERGs and Inclusion Councils are required to demonstrate alignment with FNB’s D&I strategy. The groups provide quarterly updates to the Diversity Council and Manager of D&I. We also continue to refine our use of data to guide our D&I strategy. By refining our reporting mechanisms, we can identify opportunities to enhance our programs to better recruit, retain and nurture a diverse workforce. FNB’s D&I strategy supports a broad range of internal and external initiatives, many of which are detailed elsewhere in this report. For more information about D&I at FNB, visit fnb-online.com/diversity.
Building a Stronger Future' 23 Our D&I efforts resulted in extensive third-party recognition. • Mansfield Certified (2020 and 2021) and Mansfield 2.0 Certified (2022) for hiring and advancement of minorities and historically underrepresented persons in our Legal department (Diversity Lab) • DiversityJobs Top Employer • Rated “3+,” the second highest tier, by 50/50 Women on Boards for our percentage of women directors • Best of the Best Financial and Banking Company (Professional Woman’s Magazine) • Women’s Choice Award® Best Company to Work For winner for Women and Millennial Women (WomenCertified) • America’s Greatest Workplaces for Diversity (Newsweek) • Top Workplaces Culture Excellence award winner for Diversity, Equity and Inclusion (DEI) Practices (Energage) Proud of Our Engaged Employees Our team is actively engaged in the markets we serve, living out FNB’s community commitment through their work and volunteerism. Every year, our United Way employee giving campaign is a highlight of our community service. We enhanced the 2022 edition with organized volunteer opportunities in every FNB region, giving employees a chance to see United Way’s positive impact firsthand. By the end of the campaign, more than 200 employee volunteers had performed 769 hours of service at 12 events, building on the more than $600,000 monetary contribution we made as a Company. As part of our efforts to encourage and reward employee service, FNB presents the annual Community Spirit Awards during our prestigious Five Star Awards employee recognition program. The Community Spirit Award honors team members for their demonstrated history of outstanding community service and strong commitment to FNB’s mission of improving the quality of life in the communities we serve. To show our appreciation for our employees’ contributions, our Company donates $2,000 to a qualified charity of each winner’s choice. 2022 Employee Service More than 11,600 volunteer hours recorded Approximately 550 organizations served
2023 corporate responsibility Report Innovating for Our Customers By delivering a banking experience built on trust, transparency and superior service, FNB positions its customers and communities to thrive. To serve a broad range of consumers, it is essential that we make it convenient and intuitive to bank with FNB. Our omnichannel Clicks-to-Bricks strategy and digital platforms are designed with this goal in mind, delivering constantly expanding tools and resources centered on everything from product selection to financial education. Through eStore, our award-winning digital marketplace, consumers can easily browse for available products and services, complete applications for deposit and loan products, schedule time to meet with bankers, and access Financial Insights content. eStore also connects consumers who need more assistance to side-by-side product comparisons or the Help Me Decide tool, where they can answer a brief series of questions and receive a personalized product recommendation. 24 In 2022, FNB installed digital eStore kiosks in approximately 350 branches, enhancing selfservice digital access throughout our footprint. eStore is available on our website, in the FNB Direct Mobile App and in all FNB branches.
Building a Stronger Future' 25 We efficiently supplement our digital tools and branch network through our ATM strategy, which prioritizes the thoughtful placement of both owned and branded ATMs, including in LMI or diverse areas. In 2022, our ATM network grew by nearly 43 percent to more than 1,200 machines, accelerated in large part by the addition of nearly 350 branded ATMs in hightraffic retail locations. ITMs also are key to our ATM strategy and efforts to provide consumers with multiple service options. Customers can use our more than 90 ITMs to meet with bankers using live video chat technology seven days a week, including after traditional branch hours, to conduct transactions that range from check cashing and withdrawing money down to the penny, to making deposits and processing loan payments. As we continue to evolve our retail delivery model for the future, key elements from our wide range of access points were used to design our new Digital Centers, which uniquely blend FNB’s leading technology platforms with an in-person banking experience. First launched in PPG Paints Arena, the home of the National Hockey League’s Pittsburgh Penguins®, Digital Centers are now located in Cleveland and on the SRU campus. Featuring ITMs and an eStore kiosk, each Digital Center provides space for consumers to interact with our technology and explore strategies to achieve their financial goals. Products That Support Financial Wellness Banking should be inclusive, which is why we regularly evolve our products and services to meet a broad spectrum of customer needs and lifestyles. We know concerns about fees can keep some consumers from starting a banking relationship. Our Bank On-certified eStyle account enables accountholders to avoid overdraft fees entirely and has been one of our most popular accounts since it was introduced in 2020. Leveraging our analysis of the industry landscape and customer preferences, we also took steps in 2022 to update our overdraft practices: • Eliminated continuous overdraft fees for consumers • Reduced overdraft and non-sufficient funds (NSF), or returned item, fees • Decreased the maximum number of times customers can be charged these fees in a single day • Eliminated overdraft fees for transactions that are $5 or less The updates are designed to promote positive banking behaviors, prevent overdrafts and better enable customers to reasonably avoid fees while meeting their individual banking needs. To complement our fee schedule changes, FNB is introducing new products that enable customers to add cash flow flexibility, develop responsible credit histories and strengthen money management skills. A short-term, small-dollar loan program will enable eligible accountholders to use FNB’s digital tools to apply for and quickly receive funds to fill urgent financial gaps, while the FNB SmartSecured consumer credit card, which is secured by an FNB savings account, provides a safe opportunity to demonstrate prudent spending habits and build or repair credit over time. Unparalleled Reach and Convenience Approximately 350 branches spanning 7 states and Washington, D.C. More than 1,200 ATMs with 24/7 access 24/7 access to eStore, online and mobile banking solutions Approximately 90 ITMs with video tellers available seven days a week Nearly 30 deposit products can be opened and funded entirely online More than 50 mortgage and consumer loan products can be applied for online
2023 corporate responsibility Report Focused On Environmental Sustainability FNB strives to minimize any negative environmental impact that may result from our operations. We take a holistic approach to responsible sustainability that is centered around three themes — our commitment to innovation, sustainable finance and our physical presence and internal operations — while remaining mindful of climate risk and the evolving regulatory landscape. Commitment to Innovation With Clicks-to-Bricks and eStore, we created a fully digital banking experience that reduces the carbon footprint related to our business practices. Our digital technology enables and encourages customers to complete most of their banking functions online, without paper or traveling to the branch. Additionally, to encourage our customers to embrace a paperless banking relationship, we offer free Online Statements on all FNB accounts. We also minimize the amount of paper we use in our branches. Previously, a paper ticket was issued for 100 percent of in-branch customer transactions. With the integration of our teller transaction processing system in 2020, we can now complete 64 percent of in-branch teller activities virtually and paper-free. 26 Paperless Banking at FNB in 2022 Nearly 630,000 digital (cashless, checkless) person-to-person payments More than 3.5 million online or mobile bill payments Dollar Energy Fund’s solar project
Responsible and Sustainable Finance As a financial institution, we can drive environmental progress by providing capital to support renewable energy and other low-carbon solutions. We finance sustainability innovations for many companies. As one example, F.N.B. Equipment Finance, FNB’s leasing arm, delivered a $55 million loan that will enable Dollar Energy Fund and Four Twelve Renewables to complete construction on the largest solar project in southwestern Pennsylvania. Developed on brownfield space in Greene Township, the facility’s more than 98,000 solar panels are expected to produce an estimated 66 million kilowatt-hours of electricity. The profits generated by the production and sale of solar energy will be used to lower electricity bills for LMI families in the Pittsburgh region, providing a projected $100 million in utility assistance over the next 25 years. Building a Stronger Future' 27 FNB’s recycling practices continue to have an impact. In 2022, we recycled: Our paper recycling initiatives saved: More than 1.5 million pounds of paper. 1,200 laptops and personal computers. More than 1,700 cubic yards of landfill. More than 2.9 million kilowatt-hours of energy. Nearly 5 million gallons of water. Nearly 15,000 trees. “We encountered challenges from a number of lenders because we are not yet an established developer. Fortunately, we have a long-standing relationship with FNB, and their willingness to work with us to create an effective financing solution was critical in bringing this project to life.” Chad Quinn Chief Executive Officer Dollar Energy Fund
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