ESG

Commitment to Community

Celebrating 95 years of growth, First National Bank LI was built on a foundation of customer-first service and community involvement. Our dedicated team has a long-standing history of service to not-for-profit and volunteer organizations spanning Long Island into Manhattan, Brooklyn and Queens. A mix of monetary donations in addition to hands-on community service is at the heart of this commitment, allowing for meaningful interaction and equity built between our employees and neighbors in the communities we serve.

"CommunityFirst" Volunteerism

Each year, branches throughout the network commit to a local mission or community service project, volunteering their time often during work hours to give back to organizations or service groups making a difference nearby. The Bank focuses on service in five key areas: Education, Housing & Food Security, Culture, Environmental Stewardship and Quality of Life. Working on roughly three initiatives a month, examples of these efforts span stocking area food pantries, assisting with planting community gardens, visiting local senior centers, participating in community clean-up opportunities, in addition to splashier efforts such as Habitat for Humanity and Blood Drives with New York Blood Center. So far for 2022, employees have volunteered nearly 250 hours to these hyper-local initiatives.

Community Reinvestment Lending

Integral to First National Bank LI's commitment to providing accessible products and financial inclusion for areas throughout the Bank's financial footprint. Supporting community growth and revitalization is of particular importance. In 2021, we extended $115 Million in Community Development and Reinvestment Lending. In response to Covid-19, team members worked overtime to provide more than 1,160 loans worth $265 Million in federal Paycheck Protection Program Assistance.

Stewardship by Bank Leadership

Bank leadership donates time and expertise to help advance local philanthropic and quality of life organizations, serving on Boards and Councils for local and regional non-for-profit organizations, including organizations addressing issues of homelessness and wellbeing, business development and advocacy, health and wellness and more. Team members spent roughly 500 hours assisting with strategic operations and philanthropic development in 2021.

Engaging Our Team

We are dedicated to the success and development of our employees, celebrating career achievements and milestones while providing outlets for personal and professional growth. We seek to create a diverse and inclusive workplace culture that encourages innovation, progress and purpose for all. We want our employees to have a welcoming workplace celebrating varied backgrounds, perspectives and experiences.

Continuing Education & Workplace Training

Each year, employees engage in a multitude of compliance, security, and workplace culture training. Designed to ensure regulatory confidence while setting standards for the Bank, training provides basic professional development while outlining workplace expectations for success. To support individual goals for professional growth, eligible team members are provided up to $5,000 per year in tuition reimbursement as they work to advance their skillsets and further opportunities for career advancement.

Professional Development Program

Developing the next generation of Financial leaders is the core of First National's professional growth initiative, supporting mid-level employees to lead and create change within our organization and the communities we serve. This two-year program offers selected employees the opportunity to enhance their overall banking knowledge. Under the guidance of key Leadership, along with suggestions for speakers by the students, the program includes educational meetings designed to expand the knowledge and confidence of its participants.

Competitive Benefits

To attract and retain good employees, 1N provides a competitive compensation and benefits program and invests in active employee engagement and workplace culture. An Employee Engagement Committee was created in 2021 to outline a roadmap for more meaningful employee communications and engagement strategy.

Internship Opportunities

The Bank’s Summer Internship program provides an immersive workplace experience for college students interested in pursuing a career in a finance-related subject. For 2022, the Bank is hosting 11 interns for a 9-week program spanning areas of Compliance, Risk, Audit, Marketing, Branch Administration, and more. In addition, several interns also participate in an extended internship program completed in cadence with school coursework.

Ethics & Oversight

First National is committed to maintaining the highest standards of business and professional conduct. We understand transparency and trust are critical to earning the confidence of our customers, employees, shareholders, and the communities that we serve. Primary regulators for the Bank include the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, the U.S. Securities and Exchange Commission (SEC), and the Office of the Comptroller of the Currency (OCC).

Board and Executive Oversight

Our Board of Directors and Executive Leadership Team works consistently to engage corporate governance best practices while meeting regulatory changes to maintain good management and operations. This includes regular monitoring of written policies and auditing programs throughout the company.

Code of Ethics

The Bank strives for the highest moral and ethical standards while performing our business. The Corporate Code of Ethics applies to all employees, outlining the expectation of accountability and integrity in all Bank operations. In addition, we advise employees to report any suspicion of violations through our anonymous whistleblower hotline. All complaints are forwarded to the Board Audit and Compliance Committee for review and investigation.

Compliance & Corporate Governance

Governance and Compliance oversight is woven into the operational culture of the Bank, with written policies and regular auditing and testing programs in place to ensure standards are being followed. An integrated Compliance training program provides a general working understating of these standards, with specialized knowledge groups supporting advancement to Compliance and Governance programs.

Bank Secrecy Act (BSA) and Anti-Money Laundering Program

Through our Bank Secrecy Act (BSA)/ Anti-Money-Laundering (AML) Policy, we are committed to combating money laundering, terrorist financing, and other national priorities. The Bank achieves this through a strong culture of compliance and an enhanced customer and transaction monitoring system incorporating machine learning technology to detect, and report illicit activity. Our BSA program ensures compliance with five key pillars for strong BSA oversight including Internal Controls, Designation of a BSA Officer, BSA Training, Independent Testing, and Ongoing Customer Due Diligence.

Compliance Training

Our comprehensive Compliance curriculum provides individualized training by job function, with more than 2,200 trainings completed in 2021. Training is required annually to ensure top-of-mind knowledge of regulatory risk and Bank-wide compliance requirements. An active and approachable Compliance Department delivers real-time support for everyday regulatory challenges and operational oversight.

Fair Lending Compliance

Fair Lending oversight is key to marketing and sales initiatives across the Bank. To support a balanced and inclusive sales culture, we prioritize Community Reinvestment Act (CRA) advertising goals and look for innovative ways of connecting with LMI neighborhoods. Our CRA/Fair Lending Committee meets regularly to review outreach and strategies to meet the Banks needs. This includes general topics and more in-depth analyses of key areas including annual Fair Lending testing, CRA investment updates and more.

Respecting Our Environment

A recent Branch Optimization Strategy reduced the Bank's physical footprint by 23 percent, consolidating duplicative locations within a geographic area. Coupled with a recent relocation and consolidation of administrative spaces, we have significantly reduced land use while improving operating efficiency, inter-office productivity and employee commute times. At the same time, significant improvements in digital banking services have made accessing banking services more efficient, eliminating the need to commute to a bank location for many transactions.

Electric Vehicles

First National Bank LI is embracing sustainable travel options by phasing in new requirements for Executives, incentivizing the use of hybrid or electric vehicles. It’s also secured access to electric vehicle charging stations available at the Bank’s headquarters for all employees, several of whom already utilize hybrid technology.

Minimizing Land Usage

Smart Energy Usage

The Bank is committed to converting to energy-efficient HVAC equipment and appliances, LED lighting, and light motion sensors as it retrofits existing locations and builds out new branch and office space. This includes several of our newest branches and new corporate offices in Melville. The Banks newest Branch integrates geothermal cooling and heating as we explore innovative ways of minimizing energy usage.

Reducing Office Waste

Since 2020 we have reduced back-office paper usage by more than 53 percent and continue to reduce the paper needed to complete in-person branch transactions. The Bank is also committed to responsible recycling of the paper and electronics needed to do our jobs. We have reduced our dependence on courier services through more efficient processes and provided staff with reusable lunch boxes, cups, and silverware to help cut back on everyday additions to area landfills.

Cybersecurity

Keeping the Bank and our clients’ protected information safe is the top priority our Board-approved Cybersecurity program. This includes integrating enterprise level security control systems to protect our cloud applications, networks, computers and facilities.

Data Privacy and Security Oversight

A dedicated Information Security team performs ongoing Incident Response testing to assess and boost the Bank’s exposure and response to high-risk events. Ongoing security and fraud training to educate employees to recognize threats, learn best practices and comply to established policies is completed annually. Roughly 1,800 trainings are completed by team members each year.

Education and Outreach

For clients, First National Bank LI has designed an online Cybersecurity Education Center and #1NCyberTips marketing campaign to provide security best practices and how to protect themselves and their business. Additionally, we provide clients with timely security alert messaging and reminders as they utilize banking platforms.

Diversity & Inclusion

First National Bank LI is committed to cultivating a culture of equity, diversity and inclusion. We aim to foster client relationships and community partnerships touching all backgrounds and embracing all life experiences. Together we can make a meaningful impact on stakeholders at every level.

From Board level representation to the frontlines, a melding of perspectives and experiences is essential to accomplishing our vision. First National Bank Long Island continues to recruit Board expertise to expand its core competencies. Supporting transparency in Diversity and Inclusion, both Board of Directors and Employee data is below for 2021.

Board of Directors Diversity Matrix

Total Number of Directors	11
Gender Identity	Female	Male	Non-Binary	Did not Disclose
Total Directors	3	8
Demographic Background
African American or Black
Alaskan Native or American Indian
Asian
Hispanic or Latinx
Native Hawaiian or Pacific Islander
White	3	8
Two or More Races or Ethnicities
LGBTQ+
Did not Disclose

Employee Diversity Matrix

Total Number of Employees	333
Gender Identity	Female	Male	Non-Binary	Did not Disclose
Total Employees	228	105
Demographic Background
African American or Black	33	4
Alaskan Native or American Indian	1
Asian	17	11
Hispanic or Latinx	24	9
Native Hawaiian or Pacific Islander	2
White	144	80
Two or More Races or Ethnicities	7	1
LGBTQ+
Did not Disclose

Corporate Integrity atFirst of Long Island Corporation

Corporate Integrity at
First of Long Island Corporation