Apr 22 - Tulsa World



F&M Bank & Trust Co. has developed an energy lending group that aims to be a banking alternative for energy companies in its primary markets as well as surrounding states.

The department, formally launched at the end of January, has hired Chris Cardoni as senior vice president and manager and Terry Blain as senior vice president.

"F&M Bank & Trust Co. is committed to quality growth in our primary markets of Oklahoma and Texas," CEO Tony Davis said in a written statement. "Developing the expertise to serve the energy industry will be a key factor in fueling future growth."

F&M has been involved in oil and gas lending but has never committed to specifically building a division focusing on being a competitive, long-term provider of capital to the energy industry, Cardoni said in a phone interview.

 "Our goal is to be a banking alternative for energy companies in Oklahoma and the surrounding region, and by energy companies we mean producers, servicers, gatherers, purchasers of oil and gas and energy-related manufacturers," Blain said in an interview.

While the venture is new for F&M, it's not for Cardoni and Blain. Combined, they have more than 30 years of experience serving the oil and gas industry in a banking capacity, said Jeff Pickryl, senior executive vice president and chief lending officer, in written comments.

Cardoni previously worked six years for MidFirst Bank and six for Bank of Oklahoma. Blain has been in energy lending for about 20 years -- 13 years with BOk and the remainder with Liberty Bank.

F&M's primary focus will be serving the upstream segment of the industry, meaning producers of oil and natural gas, although it also will commit capital to midstream companies that are well- structured, Blain said
.

F&M has about $1 billion in loans, and the goal over the next two to three years is to increase that amount and have as much as 20 percent of its loans in energy, Cardoni said.

"We're large enough in our markets that we can serve most of our borrowers' needs directly, but to the extent that we can't, Terry and I have been in the business long enough that we have partners at other energy-related banks that we could bring in to the situation to increase the total amount of capital by using partners," Cardoni said.

In addition to targeting the bank's primary markets, F&M also will focus on areas such as Arkansas, Kansas and New Mexico.

"It's highly conceivable that over time, as we have success and we build a portfolio of customers, that we could have other individuals who we hire that would join us in other markets," he said.

F&M also is committing resources to support Oklahoma energy industry organizations such as the Oklahoma Independent Petroleum Association.

F&M has nine locations in Tulsa and two in Dallas.

Laurie Winslow 581-8466

Originally published by LAURIE WINSLOW World Staff Writer.

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