Welcome to Behind the Buyouts, The Deal’s podcast where we sit down with leading private markets investors and drill down into their buyout, growth equity and venture capital deals.

For this episode, we’re joined by William “Billy” Weber, a 34-year banking industry veteran who’s now CEO of Checkpoint Capital LLC, an Austin, Texas, financial technology capital markets specialist that provides bond price transparency for community banks and credit unions.

Weber reflects on the role of community banks in driving the U.S. economy and how they’re facing trouble in 2021 from defaults from borrowers due to the Covid-19 pandemic.

Firms such as Basswood Capital Management LLC and CapGen Financial could take part in M&A of community banks facing lower margins on loans and tighter credit requirements in the banking system.

This year, community bankers are dealing with a confluence of events during the fall bank budget season. A year ago, many community banks purchased short-term investments that are now being matured out and coming back to them in a lower rate environment.

“What was anticipated to be a positive for community banks has come back to haunt them with a tremendous amount of liquidity — on top of an increased deposit base — providing multiple levels of liquidity in a lower rate environment,” Weber said.

Additional risk factors include tightening of credit, forbearance pressures and repricing risk on loan portfolios.

Weber brings his perspective to bear from decades in the banking sector both on the Wall Street side as well as his experience at the Federal Deposit Insurance Corp.

He found himself in a front row seat from the savings and loan crisis in the 1980s, the 2008 financial crisis and the current economic downturn.

Weber’s résumé includes time as senior specialist with the FDIC’s division of resolutions, nine years as co-head of financial strategies group at KBW Group Inc. and managing director at Breen Capital LLC.

He was also Drexel Hamilton LLC’s head of strategies, as well as head of financial strategies at Guggenheim Securities LLC.

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