www.denmarkstate.com

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 second quarter net income of $0.9 million, or $7.30 per share, up from $0.8 million or $7.07 per share in the second quarter of 2010. Return on assets and return on equity for the second quarter 2011 were 0.85% and 6.41% respectively, compared to 0.82% and 6.50%, respectively, for the same period one year ago. DBI has recorded net income of $1.8 million, or $14.98 per share, year-to-date 2011 compared to $1.6 million, or $13.75 per share, during the first six months of 2010.

The increase in net income was primarily due to a decrease of $0.2 million for the quarter and $0.4 million year-to-date in the provision for loan losses. DBI's provision for loan losses was $0.1 million for the second quarter of 2011 and $0.3 million for the first half of 2011 compared $0.3 million and to $0.7 million for the respective periods in 2010. The ratio of allowance for loan losses to total loans was 2.17% at both June 30, 2011 and 2010. Net charge offs for the quarter ended June 30, 2011 were $0.5 million compared to approximately $0.4 million during the same period of 2010.

DBI's ratio of loans over 30 days past due (including nonaccrual loans) to total loans was 2.7% as of June 30, 2011, compared to 3.3% at June 30, 2010 and 3.0% as of December 31, 2010. Nonaccrual loans have been reduced over the past twelve months to $7.2 million at June 30, 2011 compared to $8.3 million as of June 30, 2010 and $8.6 million at year-end 2010.

As of June 30, 2011, DBI's leverage capital ratio remains strong with tier 1 capital to average assets of 13.5% and total capital as percentage of risk-based assets ratio at 19.3% compared to 13.0% and 18.1%, respectively, as of June 30, 2010. "We are very proud of our financial results as we continue to navigate through these uncertain economic times," stated Feiler. "Our strong capital position and earnings for the first half of 2011 allowed us to pay out DBI's 55^th consecutive semi-annual dividend earlier this month. We continue to provide our shareholders with consistent returns while maintaining solid capital ratios and a strong commitment to remain an independent community bank."

Denmark Bancshares, Inc., headquartered in Denmark, Wisconsin, is a diversified one-bank holding company.  DBI reported total assets of $410 million as of June 30, 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. For more information about Denmark State Bank, visit www.denmarkstate.com.