Tulsa World: 5 questions with Joey Snyder

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5 questions with Joey Snyder

JAMES GIBBARD/Tulsa World

By LAURIE WINSLOW World Staff Writer
Published: 11/13/2009 2:19 AM
Last Modified: 11/13/2009 4:26 AM

H.J. “Joey” Snyder III is Tulsa market president for First Fidelity Bank, which he has been with for nearly 30 years. He serves as the banking member of the Oklahoma Real Estate Appraiser Board and is a member of the Greater Tulsa Association of Realtors, the Tulsa Homebuilders Association, Rotary Club of Tulsa, the Commercial Real Estate Council, the Oklahoma Bankers Association and the American Bankers Association. Snyder’s community involvement includes work with United Way, Leadership Oklahoma City and the Youth Leadership Exchange.

1 From your perspective, how is the banking industry in Oklahoma and Tulsa faring compared with the national financial landscape?

Our state and local financial industries have been exceptionally resilient. Of the 120 bank failures across the nation so far this year, only one has been in Oklahoma — Altus — and none have been in Tulsa. That speaks volumes to the sound financial industry here. This is due in large part to the liquidity of Tulsa banks, which have traditionally been well-capitalized compared to other parts of the country.

According to the Oklahoma Employment Security Commission, the financial industry does not account for a significant number of the state's job losses, a testament to the strength of the Oklahoma financial sector.

Finally, bank profits have remained steady in Oklahoma. According to a third-quarter report from the Oklahoma Bankers Association, only 6 percent of Oklahoma banks did not turn a profit through September, compared to a staggering 26 percent of banks nationwide.

2 You've previously noted that Tulsa banks have seen a growth in deposits. What do you attribute this to, and do you think it's a long-term trend?

This is a direct result of the Federal Deposit Insurance Corp.'s insured limit increase to $250,000 and consumers subsequently shifting funds from investments such as mutual funds and stocks into FDIC-insured accounts. I believe this behavior will continue until consumers begin to feel more confident in the stock market's long-term performance and the reliability of their 401(k) retirement accounts.

3 What is loan demand like right now for local banks?

There's no denying that overall loan demand for Tulsa banks has dropped off over the past year. The decline is partially attributed to a public feeling of uncertainty about the economy.

In terms of the commercial market, businesses are experiencing a lull in sales and, subsequently, income. This is forcing them to remain frugal and delay growth projects for which capital would be needed.

For consumers, Tulsa unemployment has risen over the past year and salaries remain comparatively stagnant. This is forcing consumers to reconsider taking on additional debt.

Mortgage lenders have seen a slight increase in loan demand due to the federal First-Time Homebuyer Tax Credit, but these loans have been in the sub-$150,000 range due to the age and income level of first-time buyers. As a result, the big-picture impact on loan demand has been relatively minimal.

4 What's your outlook for the Tulsa area's banking sector in 2010, including potential challenges and opportunities?

Federal Reserve Chairman Ben Bernanke recently declared that the recession is likely over. While full recovery from the financial contractions of 2008 and this year is expected to be slow, Tulsa's financial outlook for 2010 is better than most. Our area has been fortunate enough to weather the worst of the economic storm and will likely continue to outpace the national economy.

The main challenges that Tulsa's banking sector faces in 2010 are no different than banks nationwide, save for major housing concerns. Tulsa's unemployment rate will continue to be a major factor. Additionally, with loan demand in a lull, the profitability of Tulsa banks could be negatively impacted.

5 Oklahoma City-based First Fidelity first entered the Tulsa market in 2001. What are some of the bank's long-term goals for the Tulsa market, and does it have plans to add branches here?

Our long-term goal in Tulsa is to grow our market share. This will eventually include the addition of branches, but as of now there are no concrete plans for physical expansion. By LAURIE WINSLOW World Staff Writer

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