Money | banks Big Losses Loom at Small Banks By Neal Colgrass Posted May 18, 2009 8:15 PM CDT Copied People enter First National Bank in Staunton, Ill., Wednesday, April, 8, 2009. (AP Photo/Seth Perlman) Small and midsize banks across America could face $100 billion in losses from commercial real-estate loans next year, shrinking their capital in most cases to scary lows. The Wall Street Journal conducted worst-case-scenario stress tests on 900 banks and found crises looming far beyond Wall Street. Small and midsize banks "are in just much worse shape" than major banks, one analyst said. Facing losses that could top $200 billion in all, these mom-and-pops and bigger regional banks are unlikely to attract capital to shore up accounts. That could mean fewer loans, more regulations, and a slew of bank failures. But at least one bank denied the findings. "We don't see anything along the lines you're saying," said the chairman at Truman Bancorp, which plans to issue up to $10 million in shares to restore depleted capital. Read These Next GOP Sen. Tillis suggests Pete Hegseth is 'out of his depth.' Los Angeles tunnel collapses with workers inside. He's an American hero—and an undocumented immigrant. Missing teen surfer found alive on uninhabited island. Report an error