Jill S. Feiler, Vice President of Denmark Bancshares, Inc. ("DBI") and President of Denmark State Bank ("DSB"), which operates six offices in Brown and Manitowoc County, announced first quarter net income of $0.9 million, or $7.68 per share, up from $0.8 million or $6.68 per share in the first quarter of 2010. Return on assets and return on equity for the first quarter 2011 were 0.89% and 6.86% respectively, compared to 0.79% and 6.27%, respectively, for the same period one year ago.

The increase in net income was primarily due to a decrease of $0.2 million in the provision for loan losses. DBI's provision for loan losses was $0.2 million in the first quarter of 2011 compared to $0.4 million during the same period in 2010. The ratio of allowance for loan losses to total loans was 2.24% at March 31, 2011, compared to 2.20% at March 31, 2010. Net charge offs for the quarter ended March 31, 2011 were $0.3 million compared to approximately $0.1 million during the same period of 2010.

"We are pleased to report that we have posted solid, consistent earnings for the past five quarters," remarked Carl Laveck, Chief Credit Officer of Denmark State Bank. "However, we have seen a decline in the volume of secondary market mortgage loan originations during recent months which could impact future income on the sale of loans," said Laveck. "Management remains focused on improving asset quality and generating new loans that will fit with our strategic objectives. The current economic environment continues to make it a challenge to reach our loan growth projections but we are committed to work toward those goals."

DBI's ratio of loans over 30 days past due (including nonaccrual loans) to total loans was 3.05% as of March 31, 2011, compared to 4.12% as of March 31, 2010 and 3.04% at December 31, 2010. Nonaccrual loans declined $0.8 million to $7.8 million during the first quarter of 2011 from $8.6 million at year-end 2010.

As of March 31, 2011, DBI's leverage capital ratio remains strong with tier 1 capital to average assets of 13.4% and total capital as percentage of risk-based assets ratio at 18.8% compared to 13.1% and 18.1%, respectively, as of March 31, 2010.

Denmark Bancshares, Inc., headquartered in Denmark, Wisconsin, is a diversified one-bank holding company.  DBI reported total assets of $413 million as of March 31, 2011. Denmark State Bank, DBI's subsidiary bank, is an independent community bank that offers six full service banking offices located in Brown and Manitowoc Counties in the Villages of Denmark, Bellevue, Maribel, Reedsville, Whitelaw and Wrightstown, serving primarily Brown, Kewaunee, Manitowoc and Outagamie Counties.  Denmark State Bank offers a wide variety of financial products and services including loans, deposits, mortgage banking, and investment services.  DBI also extends farm credit through its subsidiary Denmark Agricultural Credit Corporation.