Building Interest Podcast – Ep 36: New Year New Mindset
In this episode of the Building Interest Podcast, Leader Bank's President Jay Tuli returns to reflect on 2024. We look back on the themes of the year, talk about the importance of a positive mindset, and make some predictions for 2025.
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Episode Transcript
Greg Farber:
Whether you're seeking inspiration, wisdom or a fresh perspective on leadership and entrepreneurship, our building interest podcast has you covered together. We explore the successes of groundbreaking leaders, the triumphs, the challenges and the invaluable lessons they learned along the way. Our discussions go beyond strategic decision making and delve into the personal hobbies and passions that keep these leaders inspired and grounded in their work. I'm your host, Greg Farber. Let's jump right in. Today, we're joined by Jay Tuli, President of Leader Bank. Jay is a recurring guest of ours here at the Building Interest Podcast. He's not only an inspiring leader, but also an entrepreneur in the financial space with a passion for innovation. I'm very excited to have you back, Jay. This is great opportunity to do a little year end recap, and I'll come back.
Jay Tuli:
Thanks, Greg. Excited to be here.
Greg Farber:
So as I said, we'll jump right in. Just to kind of kick things off, I want you to think of the industry as a whole. So banking, overall, financial services, if you could choose one word to describe 2024for for our industry, what would that be?
Jay Tuli:
I would say, and not trying to be comedic, but better,
Greg Farber:
Okay.
Jay Tuli:
The word would be better. And I think part of it was, you know, 2022, 2023 were really just difficult years for the whole banking environment. 2024 was a year that was better. It's not a I would call it like a great year for banking, but it was better in that, you know, we're sort of turning around, there's light at the end the tunnel. Banks are starting to improve again in terms of profitability and stability and and things like that. So, yeah, that's, that's kind of what I would use for for the year.
Greg Farber:
I think that's a great sentiment. Not at all a word I would have expected. So quality choice of a random word there. Now let's turn that focus on Leader, for our little slice of heaven. How would you describe 2024 for Leader Bank specifically? Is there anything that stands out to you?
Jay Tuli:
Yeah. I mean, for 2024 for us, I would probably say was like a year of focus. If I compare it to our prior years. You know, there'd been years of great growth. There had been years of great innovation, years of starting new businesses. 2024 was sort of a year where we digested all of the things and the new things and the new growth that we had experienced, you know, during the COVID years, and a lot of a lot of like discipline we wanted to put back on how we allocate capital, and think about our financials. So, yeah, this was a year of focus, sort of, you know, sticking to our core businesses, what we do well. Getting better at the existing things we're doing. And I think we made a lot of progress. It's kind of like, you know, fixing the plumbing in in a property like, you're not going to really see it or notice it, but it's really important, and it and it helps for the long term, and so that that was kind of what the year was for us.
Greg Farber:
And it doesn't mean sitting back and doing nothing. There's actual, real work happening here to lay that groundwork to be better forward. Is that what I'm hearing?
Jay Tuli:
Yeah, I mean, still one thing in particular, like we learned a lot of lessons, I would say, from this mini financial crisis that happened in 23 with First Republic Bank, Silicon Valley Bank and Signature Bank, when they failed, there were some really important lessons to learn there. And I think in 2024 we had specific goals about how we wanted to restructure our balance sheet. And like, what I mean by that is, like thinking through, you know, what kind of loans do we want to put the balance sheet, what kind of deposits do we want to put the balance sheet? But more importantly, like, how do they go together? So I always use this analogy, like, peanut butter is good and pizza is good, but a peanut butter pizza sandwich is not sound very good. Right? So peanut butter jelly sandwich might be great. And so I think we're, we're trying to think through, like, Okay, well, the loans that we put on, how do they? How does that match up with the types of deposits we put on and them together? Does that make a nice tasting sandwich, you know? And so that, that was some of the focus this year, really being very specific and very deliberate and focused about, you know what, how we want to grow the balance sheet and kind of restructure it so we're really set up for the future. I think we made just great progress on that.
Greg Farber:
So while everybody listening is now running to the cupboard to get some peanut butter and maybe some pizza, if we carry that analogy on, let's say that we're the peanut butter, right? And we've kind of gotten this focus going on with us, but now there's still that industry at large out there. Are there trends or changes going on in the financial industry that are sort of pizza to our peanut butter? Where do we need to adapt to things out there? Or is the industry as a whole, like you said, there's some new stability now and everything to where we're okay to just make our own peanut butter sandwich, and we're good.
Jay Tuli:
I mean, the industry, I think, is in a lot better place. And I think, you know, every time there is a situation like a little crisis, everyone learns from that and gets better. And so I think a lot more, a lot of the banks out there are doing the same thing, really trying to stay focused, stick to their course, being very specific about what they're adding to the balance sheet. We are noticing, especially in the back half of this year, a lot more merger and acquisition activity, so M and A activity, where banks are buying each other, and so that trend of less and less banks seems to be something that may continue in the next few years. That's definitely a trend. But I think you know banks, they really thrive in like stability. And if you look back to 2020, the last four years have been anything but stable. First you have COVID. And so the Fed is printing record amounts of money into the system because of fear of the economy will stall because of COVID.
Greg Farber:
Right, and the rate environment to go with it.
Jay Tuli:
Right. So rates fall to all time lows, okay? And so at first, this is actually a great thing for the whole economy, I mean, almost all businesses, because there's just money being printed. But then that creates a lot of inflation, so the Fed starts to jack up rates in an unprecedented way, almost 500 basis points in one year. Now for financial institutions, you know, you go from an all time low to an all time high in like 24 months. That that is like the opposite of what banks thrive on, which is like stability. And now we're, we're on the other end now, though, which is inflation is starting to come down and the Fed is starting to bring rates down slowly. So, so to the extent that we come back to kind of like a more normalized market, that's a good thing for banks, but we are entering a new administration. We we are entering a world where there's a lot of geopolitical concerns. So it's kind of hard to tell, like, like, what the new normal is, I would say, from our point of view, you know, we, we are learning like we have to be ready for a macro environment that is constantly changing at a greater speed than historical, historically.
Greg Farber:
And if anything, the last four years have taught us how to how to do that. Would you say that there was any kind of aha moment in 2024 that that really kind of influenced either your leadership style or the path for the Bank forward?
Jay Tuli:
I mean, a few things. One is more just like something you already, I already know, but kind of reinforce the others, but you may be a little aha. So the the aha is that, you know, clients are actually pretty loyal, and they will, they will stick around with you for a very long period of time, as long as you treat them well and you keep delivering your service offering. And I've seen that time and time again, not only with our own clients, where I look at how we've grown and like we have clients that have been with us like decades, but also clients at other organizations where, say, the bank failed or got acquired, and as long as the new the new system and the new organization is treating them well, they'll generally stay it's when they're not being treated how they want to be, that is the moment that a client finally says, Okay, let me think about something else. So to that, that's, that's a realization. I think the the other thing is that, you know, these cycles come and go, and it's important to not, like, overreact too much to a cycle. Almost like, you know, for us to, like, think past it a little bit like, Yeah, this is a great time. It won't always be great. Yes, this is a really tough time, but it won't always be tough and to plan and think and almost keep your sort of cultural mood in a manner that is normalized even even if the macro environment is all over the place.
Greg Farber:
I heard someone say the other day, you know that old phrase when one door closes another one opens. And their response was, 'Well, your house is haunted. You need to get out of there.' But I think more realistically, right, that every time we have one of these cycles, whether it's perceived to be an up cycle or a down cycle, because everyone's viewpoint might be a little different, we could find some unexpected opportunities in those you see anything like that going on here in the last year, where there is all this sort of turmoil that has now stabilized a little bit, but that's presented some new opportunities.
Jay Tuli:
Yeah, we've we've benefited in several ways in the last couple years, particularly from the bank mergers and acquisitions, whether through failure or just a normal M and A. So as an example, we started an SBA lending team, small business loans lending team, in the beginning part of this year. And those folks came from another bank that, you know, was having organizational change, and that has been awesome, and that that is probably a new business line that we will continue to grow and invest in over, you know, the next decade. So really excited about that, we recruited a team that caters to startups and VCs on the depository side, again, another result of an acquisition and that that has been great, and we picked up some commercial lenders recently, also the result of another local acquisition. So, so I see, yeah, every time there's a change, you know, I would say it goes through this period where there might be some difficulty, but then when you get to the other end of it, now there's opportunity. And so staying focused on, like, okay, what can opportunity be? How can we better serve our clients? How can we pick up some new capabilities? That's super important. And I think that'll play well into 2025 also,
Greg Farber:
Absolutely. And, I mean, I think that's, that's, that's a great example where we didn't always offer, you know, a full suite, maybe of SBA loans or things, and to be presented with an opportunity where we can make that part of what we do and fit into our core of obsessing over clients and making sure we do it right and have the right people. I think that's that's a great example. I'm going to shift a little bit now to sort of the mentality behind that right. And so when you have up and down cycles, you have some positivity and you have some negativity. And a common theme I've heard from guests on our podcast is that there really is a need for positivity in leadership. We got to lift people up, not put them down or hold them back. We want to lead with energy, excitement and hopefully a smile, rather than through leading through fear, right? So these are themes that have come up through a number of our episodes, and we've all had that day where we just wake up on the wrong side of the bed, and it doesn't matter how good your coffee is, you're just in a foul place you get to work. What helps you? Jay Tuli, through those mornings. And do you have any advice for our listeners how you can ditch that negativity and turn that bad morning into a great day?
Jay Tuli:
Yeah, I know it's a really important question. And I think for all of our managers and leaders, how you bring yourself into the organization every day is probably the most important thing, you know. And I have observed myself, even if I don't come in on a day, set up, right? You know, mentally, emotionally, I've noticed, like, I make bad decisions sometimes because I'm just being reactive. I'm being moody, and I'm being preoccupied. I'm distracted. So for me, at least, like, the harder things get, the more important it is for me to work out and meditate. So, like I did a lot of really hard Pelotons during that March mini banking crisis. And I just need the endorphins. I need to be able to clear my mind. A lot of walking. I walk around my block like all the time my neighbors, they come a little crazy, but actually it really helps me, like, be calm and think, and something that I'm like, anxious about after like, 20 minutes of walking, you sort of looked at it from like, lots of different angles. You're like, that's not that big a deal, you know? And so, yeah, that that type of personal stuff, like how you have your own reset button, I think is, is one of the differentiators for a leader or manager on how they deal with, like, difficult, difficult times.
Greg Farber:
I was going to ask you about something that you might have learned about yourself this year that surprised you, or maybe a personal win, or something big or small. You know, from this year, it almost sounds like you may have already answered that question with with the walking and the meditating and thing is there anything else that you think stands out from this last year? Like, okay, I personally cross some threshold in 2024.
Jay Tuli:
Yeah, it's actually really interesting because my my personal journey in the last 18 months, in some way mirrors my professional journey, as far as like the environment. So in our last podcast last year, I think you asked me a similar type question, my response to you was, I'm trying to learn how far I can push myself from a physical aspect. And I was training for this, like, really crazy big hike in Sun Valley. And so, I was training every day. I was in probably the best shape of my life. And then I actually, I tore my meniscus shortly thereafter. So it was about January of this year when I tore my meniscus, and so now I'm in an all time low. So I'm going from an all time high, where I was telling myself, like, wow, I'm in the best shape of my life to I tore my meniscus, and I have to, I did a surgery, and I basically couldn't walk for a month and all this stuff, and so then that was an all time low. And I think where I am now is, you know, 9-10, months later, where I've recovered, and now I'm back to strength building. It's kind of an awesome journey, because I feel like that's where the Bank is in many ways. You know, we hit this all time low in the industry when, when these banks failed, and there was a lot of fear about community banks in 23 we recovered in 2024 and now we're back to strength building. We're back to, like, building new capabilities and figuring out how are we going to compete? And that's how I am personally now too, I'm back into that place where you want to be, but I've just as I reflect over the last 12 months, how you deal with that down time is everything. And so for me, I just have had to keep remembering, this is, you know, just put a timetable to it's going to take six, seven months. I gotta do this activity, or PT or whatever, you know, every week, and I'll, I'll be back there. And so it's, I'm in a happy place now, just because I've come out on the other end. But I feel like you learn the most by yourself during those times for sure.
Greg Farber:
It's almost like if our listeners hadn't been here at the beginning and knew that we were talking about banking. This was your year of focus, and that translates personally that you had that setback, and you had to sort of just focus back a little bit on yourself and rebuild the things you do best and then be able to move forward from that. It's very interesting, actually, how similar those stories are when you remove them from their contacts.
Jay Tuli:
Yeah, right, right, yeah.
Greg Farber:
So, okay, so the Bank has had a rebuilding year. Jay has had a rebuilding year. What excites you most about the upcoming year? You have any particular goals, whether it's for yourself or for the Bank that you want to share with us heading into 2025.
Jay Tuli:
Yeah, I think with 2025 I'm feeling very optimistic. I think there's a level of optimism because the economy is sort of in good shape. Rates are coming back to something more normal and sustainable. And you know what we also saw last year is a lot of our clients were sort of just on the sidelines waiting, because if you, if you think of an investor, right, that's trying to make a big investment, like the macro economy matters, and when you're really uncertain, you sort of just wait. So we're seeing them to come off the sidelines, starting to do things like buy real estate or buy businesses or whatever it might be. So I'm excited, from that point of view. I'm excited that we have made some really good changes, like the ones I discussed in our balance sheet and our discipline in capital allocation that I think will will keep us in a really good shape for the next 5-10, years. And what I mean by that is like, I think we've taken some risk off the table. I think we've diversified. I think we are doing a better job with our interest rate risk management. So just, just a bunch of good healthy habits have been created that I'm excited about, because when you compound them over 5-10, years, good stuff happens. So, yeah, I would say that's, that's probably what's most of my mind. I don't know if I have a specific goal in 2025 professionally, other than, you know, now, rebuild and gain strength as far as, like, continuing to gain some market share in the businesses we're already in, continue to up the bar on client service and things like that.
Greg Farber:
How about on a personal level, is there anything you've always wanted to try and maybe, or you used to love doing and life got in the way, and 2025, is going to be the year you finally do it.
Jay Tuli:
I'm, like, really into basketball these days. Greg, so. I've been playing for a long time.
Greg Farber:
I feel like you've been into basketball for a long time,
Jay Tuli:
This year, I'm, like, even more into it than before.
Greg Farber:
You're gonna try out for the NBA this year. Is that your big goal?
Jay Tuli:
Honestly, that is what got me through my injury, just being able to be like, Okay, if I get back in shape, I can play again. And you know what it is? It's just, it's just a group of, like, friends that we play every Sunday, but it's just so much fun and it's competitive, and so I don't have any big challenges. I think I need, like, another year to really, like gain full strength before I try to do something crazy. So that might be the 2026 answer for you is, what the next challenge?
Greg Farber:
There you go. All right, we'll table that and ask you that question again next year. So at this point, we're going to go to a segment we've been doing this year called What Would you Choose? We'll ask you a couple of this or that questions, and you just quickly choose which one you prefer. It's kind of a rapid fire type of thing. You can elaborate on your answer. There's a no right or wrong, obviously, but it's just kind of a quick like, oh, what's the first sort of thing that jumps to your mind?
Jay Tuli:
Alright.
Greg Farber:
Do you prefer big picture strategy or day to day problem solving?
Jay Tuli:
Big picture strategy.
Greg Farber:
I was like, you hesitated very long for sure you were going to immediately say big picture.
Jay Tuli:
I think I would have told you day to day problem solving like three years ago. But the truth is, we have so many capable managers and leaders at the Bank now. I'm not actually the right person. There's a lot of people better than me to solve a lot of the problems. So my focus has been more on, yeah, the strategy side.
Greg Farber:
So when you're doing that and you're looking at the strategy, do you favor doubling down on what works, or exploring new ideas?
Jay Tuli:
Doubling down on what works.
Greg Farber:
Yeah, speak to our strengths. We're really good at this. This is where we're going to build from and be even
Jay Tuli:
Yeah, I think like, what one lens I'm using for
Greg Farber:
I think that's a really interesting answer, stronger. strategy right now is, like, if we do this X, can we be because we always talk about how entrepreneurial we are, and how committed to it for like, 20 years? Or when things get hard in year two, are going to say, nah we're not going to do that anymore. Let's, let's go back. Because if the answers is we're there's always an element of sort of startup at Leader Bank, not going to be doing it, you know, in a really long time. Then let's get out of it. And so when we build on our strengths, like, we're already in it, right? We're already in residential mortgage lending, like, that's the DNA and like, all this stuff. So when we add something like insurance, for example, that is just already piggybacking on it. So, so in a way, we're strengthening our commitment. And so, yeah, so that's one lens I use. because we are a young institution, and we've developed so much in the way of technology and our own brand and our people, and yet, you're absolutely right. What's kept us strong is that core of what we do best. So I like that answer. Do you want to be known more for inspiring others, or do you feel more like you want to be inspired by others?
Jay Tuli:
Oh, that's a really good one. I don't mean to not answer the question specifically, but I feel like you can't inspire others unless you are inspired. I really do feel that way, and and so I am always looking for inspiration. I'm not specifically looking to inspire others that may happen along the way. And, you know, everyone is always inspiring someone else, but I think the best thing I can do is be inspired myself, and then it'll rub off. To put it a different way. If I were inspiring others and not inspired myself, I don't know if that would feel right.
Greg Farber:
Right. You would lose your course a little bit. Being inspired is one of those things that it makes you better, and then in turn, if you turn around and do something better, than that can be inspiring to others. So you're, it really makes a lot of sense how you phrase that. Okay, this one's a little more emotional, passion or purpose?
Jay Tuli:
I think purpose. Yeah, purpose. I mean, they're related, right? I think, like all these things you're asking, there's some mix and blend of both, but, well, one thing is, like passion, it has different levels, like it can fade over time, then it can come back and it but a purpose, I feel like. You know you have a specific purpose, a specific role that either you or your organization or your family or like whatever it is needs to and is best suited to play in the world, in the community, whatever. And so if you don't, if you don't provide that purpose, you know there's a hole. And so hopefully you're passionate about it too, but I feel like at Leader. You know, our purpose is the most important thing. We want passionate people to work at Leader. But I'm sure we could all be like, passionate about something else, but I don't know if we would be providing
Greg Farber:
We're here for a common purpose.
Jay Tuli:
We're here. We're here for common purpose. Yeah.
Greg Farber:
Now, I mean this next one, you might want to say I pick both, but you have to pick just one again, Christmas or New Year's?
Jay Tuli:
New Year's.
Greg Farber:
Yeah?
Jay Tuli:
I like New Year's because of that mental reset of the year. It's a time to, like, reflect back and think about the future.
Greg Farber:
Do you get into the whole resolutions thing?
Jay Tuli:
I do, but I do it for my birthday to the next birthday. So it's always October to October.
Greg Farber:
Okay? Yeah, interesting take. Alright, well, speaking of inspiration, we're going to go to our last segment here.And this is where we ask our guests to bring something, whether it's tangible or it's a sentiment or anything else, to share about something that inspires or inspired you? And so question is, what do you have to share with us today that was an inspiration to you, and why.
Jay Tuli:
I've been recently involved with this cool organization called RefugePoint, and they help refugees. And Sasha actually was on the podcast earlier this year, yep, and there's a really cool story where they they helped this refugee come from Africa to the Boston area, I think, like four or five years ago, but his nephew and nieces were still stuck there, and they don't have parents anymore, and so they have been working like tirelessly to bring them here to connect with their only immediate family member, their uncle, and that just happened a few months ago. So this is such a really, like, amazing story of perseverance, of reuniting a family of, you know, and like the American Dream, and it's so amazing to see, like, a recent immigrant coming to the US and like, what that means for them and the hope and opportunity. So, yeah. I mean, I'm super inspired by that organization, that story in particular.
Greg Farber:
I love it. And all we see in the news today about how we're all like against each other all the time to know that that that hope and that American Dream still exists that's really cool. And nobody should suffer anywhere. Don't get me wrong, but to hear a story that also helps the children, because children are never at fault, right? They didn't bring this on themselves. So I love that that is an that is an amazing story, and actually reach out to me sometime and tell me a little more about that sounds like an awesome organization. So that's really it, kind of, for the the basic design of what we wanted to talk about in a recap, and hear a little bit about the Bank and a little bit about Jay, if there's anything else you want to add, kind of to part ways here for the year and usher out 24 and in 25.
Jay Tuli:
Yeah, no, I'm, I'm happy to be here with you, Greg. Also I want to thank you. You've been doing doing this podcast for us for a little bit now, and I know for sure, when you join us, how long has it been at the Bank?
Greg Farber:
It's going to be 16 years.
Jay Tuli:
16 years. Okay, I'm pretty sure you did not have in your mind that you'd be a podcast host. There were no podcasts back then,
Greg Farber:
Let's be honest, three years ago, I wasn't thinking I was going to be a podcast host,
Jay Tuli:
But you're doing a great job. And I think, I think it's been fun to highlight different aspects of bank I'm excited about 2025, I think we're very well positioned. I think, personally, I'm in a good spot too. And, yeah, ready for the new year.
Greg Farber:
Awesome. Same here. I really appreciate your sentiments, and I really appreciate you coming on and sharing all of that with us, and best to us and Leader Bank in the next year! you want us to cover. So please find us on YouTube or Tiktok and comment your thoughts. All opinions expressed by Jay Tuli are his own and not the opinions of Leader Bank NA for more information on today's subject, visit leaderbank.com in addition to past episodes, you can also find our Learning Center blog for more insights this podcast is a production of Leader Bank, an equal housing lender Member FDIC NMLS, number 449250.
