SOUTH PLAINS FINANCIAL, INC. : Other Events (form 8-K)
January 06, 2023 at 09:18 pm
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Item 8.01 Other Events.
On December 30, 2022, the Board of Directors (the "Board") of South Plains
Financial, Inc. (the "Company") adopted resolutions to terminate the Company's
Employee Stock Ownership Plan (the "Plan") effective as of December 31, 2022.
The Board determined that it was in the best interests of the Company and its
employees to terminate the Plan for a number of business reasons, including that
the Plan no longer served its intended purpose from when the Plan became
effective on January 1, 1994, and the costs of administering the Plan now
outweigh the benefits experienced by the Company.
Upon termination of the Plan, all Plan participants became fully vested in their
Plan benefits without regard to whether they were fully vested in such benefits
as of the effective date of the Plan termination. Following the completion of
the final accounting and allocation of Plan assets, the Plan administrator will
send applicable distribution forms to all Plan participants and beneficiaries.
As a result of the Plan termination, all Plan assets will be distributed to the
Plan participants in a lump sum distribution of cash and Company stock, without
consideration as to whether the participant consents to such distribution.
However, in the event that a Plan participant's account exceeds $1,000 and the
participant fails to consent to the distribution, the participant's account
balance will be distributed to an individual retirement account for the
participant's benefit. Furthermore, if a Plan participant's account balance is
$10,000 or less and the participant elects to receive a cash distribution, then
such account balance will be distributed to the Plan participant in a lump sum
cash payment.
South Plains Financial, Inc. is the bank holding company for City Bank (the Bank). The Bank is an independent bank in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. The Bank provides a range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. The Banks principal business activities include commercial and retail banking, along with investment, trust, and mortgage services. The Bank is primarily involved in real estate, commercial, agricultural and consumer lending activities with customers throughout Texas and Eastern New Mexico. The Bank operates about 25 full-service banking locations across seven geographic markets. The Bank also operates about eight loan production offices both in its banking markets and in certain key areas in Texas that focus on mortgage loan origination.
SOUTH PLAINS FINANCIAL, INC. 
