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Oil and Gas History 

Citizens Bank is an independent lending bank that understands the oil and gas business.


Citizens Bank oil and gas loan department was established over twenty years ago to fill a void in lending to the small independent oil and gas producers. While Citizens Bank has a loyal East Texas oil and gas customer base, they have developed a much larger customer base scattered throughout Texas. Customers located in larger towns such as Amarillo, Austin, Wichita Falls, Corpus Christi, Houston and Dallas find it beneficial to deal with a community bank that understands the oil and gas business. Much of our business is conducted through various means of electonic contact. A location on Main Street in a large town is no longer essential for an energy lender.

Citizens Bank is an oil and gas reserve-based lender and has made loans when oil was as low as $8.00/BBL and as high as $145.00/BBL. Collateral is situated in onshore oil fields from Mississippi to Montana.

Most customers are growth oriented through acquisitions and drilling. Our oil and gas lending program has had a positive result for both the bank and our oil and gas customers. Several customers were in a startup mode after having worked for major companies before the 1986 oil and gas downturn. Our oil and gas loan department has the capability of in-house engineering which is beneficial to many small independent operators who have limited staffs.

Oil and gas customers prefer a bank that understands their business. The oil and gas business is unique in that assets are generally depleting or growing. Cash flow may vary greatly from a high, due to flush production income to a low, due to workovers and/or major equipment expenditures. Both the reserve risk and price fluctuations must be taken into consideration at the outset when making a loan. Citizens Bank views oil and gas loans secured by a proven production and/or royalties as very desirable types of loans. Oil and gas producers have a marketable product and do not need a large marketing organization, large inventory, and are not bothered by technical obsolescence or competition.

Citizens Bank has tailored its oil and gas loans to meet the needs of the borrower. In addition to conventional payout loans, Citizens Bank issues letters of credit and master lines of credit. Customers who buy properties at oil and gas auctions prefer a master line of credit. The advantage of dealing with a small town bank includes lower front-end costs. Engineering fees, commitment fees and legal expenditures are minimized by our lending policies and procedures. Loans are processed in a timely and cost-effective manner.

Our customer base includes mineral royalty and overriding royalties buyers; non-operated working interest purchasers; operators who concentrate on purchasing entire fields; and operators purchasing small producing leases throughout Texas and surrounding areas. Spin-off of properties by major oil companies has provided an opportunity for
 Citizens Bank customers to grow rapidly.






Jim Griffin

Vice President Oil and Gas


Fax: 903-986-3919

E-mail: jgriffin@citizensbanktx.com


Margaret Logston
Fax: 903-988-7318



Marybeth Whitaker

Fax: 903-986-3919


To find a Citizens Bank location nearest you, click on Citizens Bank anywhere on this page.



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