Sushil Tuli is the founder and CEO of Leader Bank, a Massachusetts-based community bank with six locations and about 400 employees. He’s also a Class A member of the Board of Directors at the Federal Reserve Bank of Boston. Class A Directors are elected by member banks to represent them. We spoke to Tuli about why he started his bank, how it’s lasted and grown, and why he puts his ethics first.

Why did you decide to start a community bank?

I founded Leader Bank in 2002 at a time when many small community banks were being acquired by large financial institutions. I was running a mortgage company then, focused primarily on serving immigrants and minorities with residential loans.

I saw two important gaps. First, many of our customers didn’t feel comfortable working with large banks. Second, and perhaps less obvious, the employees of these small banks lost their ability to serve their local communities when their institutions were absorbed. I wanted to create a bank where both customers and employees could thrive – where customers could feel understood and supported, and where employees could continue building personal relationships with the people they served.

To my surprise, the bank grew rapidly. I believe that’s because our employees truly know the community, they understand the local businesses, they know the families, and they care about creating opportunities for everyone.

Even as the bank has grown, our core values have stayed the same. I may be the CEO, but if a customer calls, I take the call.

How has Leader Bank been able to navigate economic challenges?

Let’s go back to the 2008–2009 financial crisis. From the beginning, we’ve prioritized doing right by our customers. That meant staying away from subprime and alternative lending, even though those products were highly profitable at the time. We knew we were leaving money on the table, but our mission was never about short-term gains, it was about long-term trust. When the subprime market collapsed, many of those affected turned to us, and that trust helped us grow.

During the COVID-19 pandemic, our first priority was to keep our employees and customers safe. But we also made a deliberate choice to support our community by processing Paycheck Protection Program (or PPP) loans, no matter how small. If a small loan helped someone keep their business afloat, we did it. That approach made us one of the largest PPP lenders in the state. And many of those small businesses we helped during COVID are now among our most valued clients.

How important are your values when it comes to your business?

I never compromise on ethics. That’s how I started Leader Bank, and that’s how I continue to lead it.

As an immigrant myself, I know how important it is to have someone believe in you and give you a chance. I was fortunate to receive a good education in India and go to business school in the U.S., but my focus was never on making as much money as possible. Yes, a business must be profitable, but our primary goal is to support our customers and help our communities thrive.

I often say: Try to make one person happy each day. That one act of kindness can ripple out – to their children, their spouse, their parents. It creates a positive cycle. Business is ultimately about people, and taking care of one another is good for everyone.

Why do you enjoy being on the Boston Fed’s Board of Directors?

I love to learn. Serving on the Board has deepened my understanding of the Federal Reserve and its critical role in our economy. I’ve also gained insights from fellow Board members who come from a wide range of industries.

My contribution is to share the community banking perspective – what’s happening on the ground. Are people refinancing? Are homes being listed? Are small businesses borrowing or holding back?

These trends reflect the financial pulse of our communities, and I’m proud to bring that voice to the Board.