Fostering a Culture of Diversity & Inclusion

DIVERSITY & INCLUSION ANNUAL REPORT 2020

iBelong at Investors Bank.

Investors Bank has come a long way since our founding some 90 years ago. We’ve grown from a small thrift to one of the largest banks headquartered in New Jersey with over $27 billion in assets and more than 150 branches.

Yet I’m proud to say that Investors has remained true to our roots as a community bank. We firmly believe in contributing to the vitality and prosperity of the local neighborhoods we serve.

And where does community start? It starts at home. At Investors, our employees are the heart and soul of our organization.

We employ and nurture people who share our core values of Cooperation, Character, Commitment and Community. We also celebrate their various cultures and lifestyles. After all, it is their unique skills, backgrounds and experiences that make a difference for our customers and the communities we serve.

However, diversity and inclusion in an organization doesn’t just happen. It is intentional. It must be top of mind in everything from recruiting efforts, to training and development, to pay equity. What’s more, we feel everyone needs to experience welcome behaviors where they are respected; they must feel like they truly belong.

By harnessing the power of our collective backgrounds, ideas and talents we will build a better Investors Bank. In fact, studies show that there is a direct correlation between diversity and inclusion in the workplace with superior financial results.

In 2019 we launched iBelong, our Diversity and Inclusion Plan. Through iBelong, we’ve taken some important steps to demonstrate the importance of all our people and their contributions, yet many more milestones lie ahead. In fact, our journey towards greater diversity and inclusion never really ends. It’s a journey we are committed to because diversity and inclusion is what keeps Investors Bank so strong.

Chairman and Chief Executive Officer, Investors Bank

Our Path to Greater Diversity and Inclusion.

Our Roadmap:

Investors Bank strives to create an environment where

employees can be their full, authentic selves.

That begins by valuing the individual attributes that each employee brings to the bank

across race, gender, age, religion, identity and unique

life experiences.

Our Roadmap: iBelong Our continual goal is to attract and support a diverse, multicultural workforce that represents and reflects the diverse customers and communities our bank serves.

In 2019, we stepped up our efforts even further by creating and launching iBelong, our roadmap to greater diversity and inclusion.

This company-wide strategy aims to build on and strengthen our internal and external recruiting efforts, our internal policies, employee learning and development, talent assessment, succession planning, and procurement and supplier diversity.

We’ve made progress, yet there is still much more to do. In 2020, we plan to continue the momentum and extend our Diversity and Inclusion initiatives across the organization.

Core Values that Guide the Way At Investors Bank, each of our four core values—Cooperation, Character, Commitment and Community—play a role in and supports a diverse, inclusive and equitable workplace.

Our iBelong strategic Diversity and Inclusion roadmap creates our more intentional focus on how to demonstrate our Core Values daily for our workforce, customers, and communities we serve.

For example, in a cooperation-rich workplace like Investors, people collaborate and work together as a team to solve problems. This collaboration creates an environment where everyone can share diverse opinions and ideas, and constructive feedback.

Character in the workplace sets the tone for how we treat others. At Investors, there is a strong emphasis on treating each other with compassion and always doing the right thing. These shared values are the foundation for enhancing an inclusive workplace.

Our commitment as Investors employees is to do business the right way by operating honestly and ethically. We continually push ourselves to be our best and come to work each day ready to make a difference through our talents, passion and hard work. We put the customer at the center of everything we do and always strive to provide them with the best solutions for their banking needs – for us it is all about exceeding expectations, every time.

Finally, we embrace our own diverse community of team members by respecting each other, valuing everyone’s contributions and investing in each other’s growth. We recognize how our differences make for a stronger organization. Most importantly, we believe in supporting the communities where we live and work. We are proud to be a model of what a true community bank should be – a good corporate citizen with a tradition of “giving back” at the heart of everything we do.

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At Investors Bank, each of our four core values—Cooperation, Character, Commitment and Community—play a role

in and supports a diverse, inclusive and equitable workplace.

Talent & Diversity

At Investors Bank we believe that diversity

and inclusion are cornerstones of high performing organizations.

Talent and Diversity It is incumbent on us to weave diversity and inclusion into everything we do—the people we hire and promote, the tone we set in our workplace, and the suppliers with whom we choose to do business. We view it as both a responsibility and a privilege—and it is a mission and a mindset that starts at the top.

Over the past year, we’ve made continued strides to increase diversity at Investors and to create a respectful and inclusive workplace. We’re proud to be on the right path, but aware there is still much ground to cover.

Workforce Diversity HighlightsInvestors Bank is comprised of some 1,800 employees who work in our headquarters, commercial lending group, and throughout over 150 retail branches. Diversity and inclusion is represented at all levels, across all locations.

The road to even greater workforce diversity lies in both our internal development and targeted recruitment efforts. Our focus is on attracting more talented candidates from underrepresented groups to join Investors Bank as well as grooming more women and minorities for senior leadership positions in the Tri-state area.

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59%of total employees

are female

41%of total employees

are minorities

44%of our Officers

are female

28%of our Officers are minorities

Diversity PrioritiesCreating a culture rich in diversity and inclusiveness doesn’t happen in one fell swoop. At Investors Bank, we’re focused on several important areas. Our senior leaders support our diversity priorities and are committed to driving positive change throughout the organization.

Targeted Recruiting Our continual goal is to increase the opportunities for minority talent and other underrepresented groups at Investors Bank. It is incumbent on us to ensure our recruiting pools always contain a wide variety of people from varied backgrounds and experiences. That begins with several specific initiatives.

We’re proud of our various Internship programs. Investors has partnered with diverse non-profits that support inner city youth in the communities we serve. Together, we provide opportunities for young people from minority backgrounds to gain insight into the banking industry.

In addition, we are laser focused on our outreach efforts tied to colleges and universities in the Tri-state area with highly diverse student populations. Through these partnerships, the Investors Bank Summer Internship Program actively seeks out a diverse group of students.

Our diversity-specific recruiting also includes listing career opportunities on over 100 local, state, government and private job boards tied to diversity, veteran and disability organizations. In addition, Investors Bank partners with numerous organizations to build relationships and attract minority candidates at Career Fairs and Networking Workshops.

Targeted recruiting is just the first step. For diversity and inclusion to flourish in our workforce, it must also be embedded into the interview process. That’s why Investors Bank has made a commitment to providing Behavior-Based Interview Training to all of its hiring managers.

Career Development and Retention At Investors Bank, career development and retention are important priorities and we promote from within wherever possible. In 2019, close to 39% of our roles were filled internally. We want every employee to realize his or her fullest potential and we encourage our people to explore their interests and abilities, plan career goals, and create development plans to achieve those goals. We know that investing in the talent we already have is not only the right thing to do, but will ultimately help us to increase diversity at the more senior levels.

To help our employees explore potential opportunities, we created an online tool, called Career Paths, to assist them in their journey.

Career Paths is a systemic approach that allows employees to map multiple career path scenarios, review job descriptions and competencies for each role in the Bank, evaluate potential skill gaps, and plan their development through our learning and development tools.

We are dedicated to providing employees what they need to succeed in their careers and realize their aspirations. We recognize the value each employee brings to our business and how the diversity in background and skill sets benefits our company.

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Learning and Career Development

Investors bank is committed to fostering an environment that creates

opportunities for our employees’ professional development and

career growth.

Learning and Career Development We offer a thoughtful and comprehensive suite of learning solutions and development resources to support our employees’ efforts to grow their careers at Investors Bank. Our goal is to cultivate a growth mindset, where every employee is encouraged to become life-long learners and through collaboration, inspire each other to achieve exceptional outcomes.

Leadership TrainingIn 2019, we launched two flagship Leadership programs: Customer Connections for Leaders and Transformational Leadership. Customer Connections for Leaders focuses on managing customer-facing employees responsible for establishing and maintaining relationships and driving new customer acquisitions. Inspiring teams to deliver an exceptional Customer Experience is the foundation of the program. Transformational Leadership is intended for all people leaders at Investors Bank. The program helps leaders to establish a mindset that promotes emotional intelligence, agility, and adaptability. Leaders also are given the tools needed to motivate and coach their teams, while outlining clear performance expectations and conversations.

Face the ChallengeInvestors’ Core Values are at the heart of everything our employees do to serve our customers and each other. They are the foundation of our culture. The Investors’ Chief Culture Officer reinforces the Bank’s values through the creation and facilitation of events, experiences and opportunities that cultivate a culture of self-development and accountability. These efforts contribute to personal and organizational success through the promotion of hope, optimism and workplace engagement. Investors’ Face the Challenge (FTC) program is the culmination of over a decade of research in the fields of sales, human behavior, positive psychology, and emotional intelligence. It encourages cross-functional collaboration across the bank through a robust cohort driven learning experience. At the culmination of the program, employees recognize how to unlock their true potential through a variety of proven methodologies including lecture, individual presentations, mastermind groups, role playing, interviews, and motivational addresses.

MentorshipDrawing off the success of our Women’s Leadership Mentoring Program, that was piloted in 2019, we are expanding the program beyond our employee resource groups. The expanded program will match Mentees with Mentors who can effectively support their development and career planning goals. Mentoring matches will be made based on several factors, including – expertise, areas of commonality and accessibility. At Investors we understand that a thoughtful matching process is critical to the Mentee’s success. Mentors and Mentees will participate in a structured program and are encouraged to plan informal events and activities. Structured program events will include – setting relationship goals, development and career planning, 1:1 meetings, workshop events (attended together), and social gatherings.

Diversity WorkshopsAt Investors, our Core Values and iBelong journey enable us to embrace diversity and inclusion. Our iBelong journey began in 2019 with our Diversity and Inclusion Strategic Plan creation sessions. Our strategies indicated how everyone at the bank has the role to create an environment where others feel they belong and are heard, valued and respected. We quickly enacted live iBelong workshops in combination with interactive digital learning sessions. Our C-Suite to front-line employees participated in the programs, so each person can embrace their roles in the iBelong journey together.

Performance ManagementOur Performance Management Program is a continuous, year-round process where employees work with their manager to plan, track, and review career goals, and performance results. It provides employees informal and formal opportunities to receive feedback on their contribution to Investors’ strategic objectives and alignment to our Investors’ competencies. The feedback received is used to inform career and development planning. Employees are strongly encouraged to leverage Development Plan and Career Pathing tools in conjunction with the feedback they receive. Our performance management activities are employee-centric and designed to help employees be the best they can be in their current role and prepare for future roles.

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Pay Equity Investors Bank is committed to building a diverse, inclusive, and talented workforce. An important part of this commitment is to ensure our compensation and benefits are fair and competitive for all employees. Investors continuously evaluates our practices for recruiting, hiring and compensation as well as the process for promoting both internal and external talent. Additionally, we are committed to identifying opportunities to help ensure that all employees have equal opportunity to maximize their potential and have a clear sense of career progression.

Diversity and Inclusion Council and Resource Groups In order to spread greater awareness of the value and power of diversity, Investors Bank will be introducing the Diversity and Inclusion Council this year. The Council will be an overarching group of leaders from our organization who create and execute on the plans to drive a diversity and inclusion strategy and develop the framework for implementing and impacting initiatives, programs, policies, and processes. They will also help shape other Employee Resource Groups to address the specific needs of diverse populations within our organization and markets. We have an established Employee Resource Group, the Women’s Leadership Council, which was founded in 2016. This Group encourages professional development through exchanging ideas as well as promoting and influencing women’s careers through networking events, leadership and communications programs, coaching and mentoring, and wellness programs. Comprised of approximately 50 female leaders, members lead initiatives within Investors Bank, the larger financial industry and in the local community. As iBelong continues, we encourage and anticipate the natural evolution of additional Employee Resource Groups that support African American, Hispanic, Asian and LGBTQ+ employees, for example.

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Supplier DiversityAt Investors Bank, we understand the value of diversity throughout our entire organization. This extends from our employees, to our clients and to our suppliers. We feel that our suppliers should reflect the diversity of the communities that we serve. Investors Bank understands that Supplier Diversity leads to increased productivity and better business. We are committed to identifying and doing business with qualified diverse business partners from historically underrepresented groups including companies owned and operated by minorities, women, military veterans, disabled veterans, service-disabled veterans, people with disabilities and members of the LGBTQ+ community.

In the coming year we plan to formalize and improve our Supplier Diversity efforts in our procurement practices and procedures. We also plan to increase our outreach efforts and work to develop closer relationships with diverse suppliers. These efforts will increase opportunity to diverse partners who will meet our procurement and supplier standards. This program will help us enhance the work to deliver products and services to our customers, create mutually beneficial business relationships and create value for our shareholders.

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The Council will be an overarching group of leaders from our organization

who create and execute on the plans to drive a diversity and inclusion strategy

and develop the framework for implementing and impacting initiatives, programs,

policies, and processes.

Voice of the Employee

An inclusive workplace welcomes feedback and invites input from its employees to shape positive change. Our Employment Engagement Survey gathers vital information on the Investors Bank workplace and management practices.

In the Fall of 2018, Investors conducted its first survey with more than 90% of our employees participating. The data showed that 71% of respondents had positive perceptions regarding company culture, communication, employee engagement, opportunities for growth, job alignment with skills, senior leaders and management, and that the company is making the changes necessary to stay competitive.

We took action and formed plans around improving areas of opportunity identified through the survey and implemented changes in our organization. We are planning to conduct another employee survey in the near future to measure the effectiveness of the changes and to explore sentiments about diversity and inclusion.

Commitment to Wellness

Workforce wellbeing is a top priority at Investors. To that end, we offer programs including flexible work arrangements that help employees balance job and life commitments. We also reassess our healthcare benefits annually to ensure we are providing high-quality options that meet the diverse needs of our workforce population.

Several years ago, we introduced our Investors C.A.R.E. Wellness Program. It is a health and wellness program designed to help our employees be active, make healthy choices and improve their lives by living healthier every day. Through C.A.R.E., employees are provided with the tools and resources to help improve and maintain their health status.

In 2020, we partnered with a world-class health and wellness organization to unveil our enhanced C.A.R.E. Wellness Program that rewards employees for engaging in activities that benefit their physical, financial, social and emotional health. Through our C.A.R.E. Program, our employees can customize personal wellbeing goals like stress reduction, increased mindfulness, and even achieving financial milestones. In addition to the online programs, we offer onsite wellness fairs, biometric screenings, corporate challenges and virtual workshops. The C.A.R.E. Wellness Program also promotes social consciousness and rewards employees for volunteering in their local communities and supporting charitable organizations.

A Culture of Giving Back

At Investors Bank,our culture of giving back starts at the top and is evident at every level of our organization.

The Investors Foundation assists non-profit organizations in New Jersey, New York City, and Long Island that invigorate their local communities. Since 2005, Investors Foundation has pledged more than $40 million to non-profits.

Another way Investors gives back to the community is through our Care2Share program which encourages our customers to choose a participating non-profit that they’d like to support. Once a customer enrolls, Investors Bank makes a quarterly donation to that charity, at no cost to our customer.

Most importantly, a spirit of volunteerism is alive and well at Investors Bank. Employees donate their time and talent at soup kitchens, youth groups, and other local charities.

Our unwavering commitment to improving life in the communities we serve is a reflection of our mission to be inclusive and always do right by our customers and neighbors.

The Journey Ahead Fostering a culture rich in diversity and inclusion is at the heart of Investors Bank’s core values. While we’ve moved forward in 2019, we acknowledge there are still many areas of opportunity to address. For example, we recognize the need to increase the representation of women and minorities in our senior leadership ranks.

Through iBelong, we are on the path to greater diversity and inclusion. It’s a path that empowers our people at every level to blaze new trails for a more inclusive and diverse workplace through their own self-reflection, professional development, and by shaping new resource groups that address the needs of specific employee populations. All of us at Investors Bank are moving in the same direction and committed to the road ahead.

Social and Corporate Governance We are committed to our corporate responsibility mission of bringing value to all our stakeholders—our employees, our customers, our communities and our stockholders. With our core values of Cooperation, Character, Commitment and Community, we categorize our corporate responsibility efforts under the following strategic pillars: Our Employees—We strive to create and maintain an employment environment that attracts and rewards the best talent and reflects the diversity of the communities we serve. We provide competitive compensation and benefits and offer opportunities through training and development. We are committed to maintaining a diverse and inclusive workplace.

Our Communities—Our strong sense of Community is one of our main core values and we make this part of the onboarding experience for our new employees through volunteer opportunities. This community involvement and team orientation are incorporated into our annual performance reviews.

In addition to our employees’ volunteerism, our charitable Foundations provide the financial resources to support non-profits in New Jersey and New York. Through the Investors Foundation, established in 2005, and the Roma Bank Charitable Foundation, we have awarded more than $40 million in grants supporting initiatives in the arts, education, financial education, youth development, affordable housing, and health and human services. Governance—We are committed to assuring and maintaining transparent governance through best board governance practices, which are subject to continuous review as such practices evolve. We maintain strong risk oversight in management and at the Board level. We have ongoing dialogue with our stockholders, regulators, customers and employees. We believe that operating our business responsibly and ethically puts us in position to address the interests of our stakeholders while also creating long-term value for our stockholders. We remain focused on continuing to advance these programs and making a positive, sustainable impact on the communities in which we live and conduct our business.

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Measurement and Accountability Investors Bank’s diversity and inclusion initiatives will be evaluated on the basis of the Bank’s practices and policies with respect to recruitment, hiring, promotion, training, compensation, and benefits. Our quarterly metrics scorecard captures this information and is reviewed with our executive management team and actions are formed that support positive change. Additionally, we ensure that the Bank’s diversity and inclusion goals are well connected to the Bank’s mission, values, and overall business strategy.

Fair Employment Practices Investors Bank is an Equal Opportunity Employer and provides employment opportunities regardless of race, religion, color, national origin, age, ancestry, nationality, marital status, sex, pregnancy, disability, veterans status, sexual orientation or any other protected characteristic under applicable law. We are also committed to maintaining fair employment practices and take pride in fostering a diverse and inclusive working environment. All qualified applicants receive consideration for employment on the basis of merit, experience and one which is free from unlawful discrimination and harassment. Investors Bank is also committed to maintaining a workplace free from unlawful harassment or discrimination of any kind including, without limitation, sexual harassment.

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Awards & RecognitionAfrican American

Parade Gala Heritage Award

AJC Global Jewish Advocacy

Recipient of National Human Relations Award

Kevin Cummings Chairman & CEO

American Conference on Diversity

Recipient of Corporate Humanitarian Award

Kevin Cummings Chairman & CEO

B’nai Brith Recipient of International

Citizenship and Civic Affairs Award

Kevin Cummings Chairman & CEO

Colel Chabad

Honorary Recipient

Kevin Cummings Chairman & CEO

Hamilton Area YMC

Community Enrichment Award

Helen Keller Services

Honorary Recipient

Domenick Cama President & COO

Jewish Family Services of Middlesex CountyCorporate Impact Award

Montclair College Foundation

Recipient of the Award for Business Leadership

and Community Engagement

Kevin Cummings Chairman & CEO

The Catholic Charities of the Archdiocese

of Newark Recipient of the

Leadership Award

Kevin Cummings Chairman & CEO

The Cathedral Club of NYC

Honorary Recipient

Domenick Cama President & COO

UNCF Recipient of

Philanthropy Award

Kevin Cummings Chairman & CEO

Compensation Philosophy

Investors Bank seeks to treat all associates fairly, clearly, and with dignity with respects to compensation and performance. The Bank seeks to maximize both short-term and long-term growth by sustaining an environment in which all associates can find themselves successful at their jobs, individually as well as in groups. We strive to make all compensation decisions from an objective and consistent set of principles and information. We operate under a “pay for performance” landscape, in which notable efforts and results are appropriately acknowledged. The application of our Compensation philosophy and governing principles are reviewed on a yearly basis when constructing our alignment to marketplace trends in our industry and with our peers. The application of our Compensation philosophy in practice causes us to establish individual pricing for each job in the Company, based on objective standards considering both external market alignment and internal equity considerations. Compensation levels for jobs are determined strictly from examination of job responsibilities as documented on job descriptions, the impact of the job on the Company, and the experience required for successful execution of a job without considering the incumbent(s) who is/are currently in the role in question. The Company uses external market data supplied by independent companies and consultants specific to our industry after carefully considering the specific value that the job affects within our organization. Periodically, entire business units and departments are reevaluated holistically to assure that the structure of the jobs and market pricing, support the company’s principle to attract, motivate, and retain the best qualified candidates/incumbents to achieve demonstrable results contributing to the organization’s success.

Executive Compensation Philosophy

Investors Bank has adopted an executive compensation philosophy to develop compensation programs, practices, and policies surrounding our Executive Leadership Team. Our key principles include: · Promoting an environment that minimizes the Bank’s risk profile while maximizing our profitability.· Aligning our executives to the values of our shareholders through the use of total rewards.· Assuring that our business is conducted with the most stringent ethical standards, in alignment

with our corporate culture.· Ensuring that our compensation programs are in adherence with applicable federal, state,

and local laws and regulations.· Ensuring that our executives make decisions that are in the best interests of the Bank

and its shareholders.· Attracting, retaining, and motivating the best talent for our leadership team.· Aligning executive pay with practices and vehicles both emerging and standard

within our industry and peers.· Ensuring that our goals and pay promote excellent Bank performance through implementation

of a “pay for performance” methodology.

Fostering a Culture of Diversity & Inclusion

investorsbank.com/ibelong