PFS

Business Context and Reporting Period

Company: Provident Financial Services, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: January 26, 2023
Reporting Period: The filing reports on events occurring on January 26, 2023, specifically regarding the ratification of executive compensation targets for the 2023 fiscal year.

Key Financial Metrics

This filing does not report operational financial results such as revenue, profit, cash flow, margins, debt, or liquidity for a specific period. The document focuses exclusively on the structure of the Executive Annual Incentive Plan for 2023.

• Executive Incentive Potential: Total aggregate cash incentive payments for the President/CEO, CFO, and other Named Executive Officers range from approximately $793,000 (Threshold level) to $2,380,000 (Maximum level).
• Performance Metrics: Incentives are tied to Earnings Per Share (40% weight), Net Income (40% weight), and Efficiency Ratio (20% weight) for senior executives.

Material Changes

The filing does not disclose material changes to financial performance compared to prior periods. The primary event is the Board of Directors' ratification of the 2023 Corporate Targets for the Executive Annual Incentive Plan, which was previously approved by stockholders in 2015.

Guidance, Outlook, and Management Commentary

Compensation Structure:

• Senior Executives (CEO, CFO, CAO): 100% of incentives based on Company-wide 2023 performance.
• Chief Wealth Officer: 20% based on Company performance; 80% based on individual business line performance.
• Other Named Executive Officers: 80% based on Company performance; 20% based on individual performance.

Thresholds: Incentive payments may be made if the Company meets or exceeds 90% of the Corporate Targets. Risks and Contingencies: The filing does not disclose new risks or contingencies beyond the standard performance-based nature of the incentive plan.

Important Facts for Investors to Verify

• Verify the specific numerical values for the 2023 Corporate Targets (EPS, Net Income, Efficiency Ratio) in subsequent filings or the company's annual report, as this 8-K only confirms the targets were ratified, not their specific values.
• Confirm the actual 2023 base salary levels used to calculate the potential incentive range of $793,000 to $2,380,000.
• Monitor future filings to determine if the Company met the 90% threshold required to trigger any incentive payments.