UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2000

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 0-21554

DENMARK BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Wisconsin 39-1472124

(State or other jurisdiction of (I.R.S. Employer Identification No.)

incorporation or organization)

103 East Main Street, Denmark, Wisconsin 54208-0130

(Address of principal executive offices)

(920) 863-2161

(Registrant's telephone number, including area code)



---

(Former name, address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]



APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Outstanding at

Class October 23, 2000

Common Stock 54,803

(no par value)





DENMARK BANCSHARES, INC.

TABLE OF CONTENTS



Quarterly Report On Form 10-Q

For The Quarter Ended September 30, 2000

Page No.









Consolidated Statements of Income 			 4

Consolidated Statements of Cash Flows 			 5

Notes to Consolidated Financial Statements 			 6

Item 2.	Management's Discussion and Analysis of

Financial Condition and Results of Operations	 	 8



Part II. Other Information







Signatures12













|DENMARK BANCSHARES, INC. AND SUBSIDIARIES     
|----------------------------------------------
|Consolidated Statements of Financial Condition
|                                              
|                                              
|                                              
|Assets                                        
|Cash and due from banks                       
|Federal funds sold                            
|Investment securities                         
|Available-for-sale, at fair value             
|Held-to-maturity, at cost                     
|Total Investment Securities                   
|Loans                                         
|Commercial                                    
|Real estate                                   
|Installment                                   
|Other                                         
|Total Loans                                   
|Allowance for credit losses                   
|Net Loans                                     
|                                              
|Premises and equipment, net                   
|Accrued interest receivable                   
|Other assets                                  
|TOTAL ASSETS                                  

|Liabilities                                                                                      |              |             
|------------------------------------------------------------------------------------------------ | ------------ | ------------
|Deposits                                                                                         |              |             
|Non-interest bearing                                                                             | $29,479,430  | $26,387,194 
|Interest bearing                                                                                 | 212,071,822  | 185,546,462 
|Total Deposits                                                                                   | $241,551,252 | $211,933,656
|                                                                                                 |              |             
|Short-term borrowings                                                                            | 43,335,961   | 58,108,946  
|Accrued interest payable                                                                         | 1,857,251    | 1,337,566   
|Other liabilities                                                                                | 1,333,468    | 794,128     
|Long-term debt                                                                                   | 27,093,788   | 17,097,536  
|Total Liabilities                                                                                | $315,171,720 | $289,271,832
|Stockholders' Equity                                                                             |              |             
|Common stock, no par value
authorized 320,000 shares; 54,814
and 54,907 outstanding respectively | $10,336,295  | $10,336,295 
|Paid in capital                                                                                  | 112,374      | 110,984     
|Treasury stock                                                                                   | (427,818)    | (305,426)   
|Retained earnings                                                                                | 23,164,084   | 22,318,876  
|Accumulated other comprehensive income                                                           |              |             
|Unrealized gains (losses) on securities                                                          | (205,975)    | (339,355)   
|Total Stockholders' Equity                                                                       | $32,978,960  | $32,121,374 
|                                                                                                 |              |             
|TOTAL LIABILITIES AND EQUITY                                                                     | $348,150,680 | $321,393,206
|The accompanying notes are an integral part of these financial statements.                      

3

|DENMARK BANCSHARES, INC. AND SUBSIDIARIES                                 
|--------------------------------------------------------------------------
|Consolidated Statements of Income                                         
|(Unaudited)                                                               
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|Interest IncomeLoans including fees                                       
|Interest and dividends on investment
securities                           
|Taxable                                                                   
|Exempt from federal tax                                                   
|Federal funds sold                                                        
|Total Interest Income                                                     
|Interest Expense                                                          
|Deposits                                                                  
|Short-term borrowings                                                     
|Long-term borrowings                                                      
|Total Interest Expense                                                    
|                                                                          
|Net interest income                                                       
|Provision for Credit Losses                                               
|                                                                          
|Net interest income after provision                                       
|Noninterest Income                                                        
|Service fees and commissions                                              
|Investment security gains (losses)                                        
|Other                                                                     
|Total Noninterest Income                                                  
|Noninterest Expense                                                       
|Salaries and employee benefits                                            
|Occupancy expenses                                                        
|Data processing expenses                                                  
|Amortization of intangibles                                               
|Other operating expenses                                                  
|Total Noninterest Expense                                                 
|                                                                          
|Income before income taxes                                                
|Income tax expense                                                        
|NET INCOME                                                                
|Per Share                                                                 
|Net income                                                                
|Dividends declared                                                        
|Weighted average shares outstanding                                       
|                                                                          
|The accompanying notes are an integral part of these financial statements.







4

|DENMARK BANCSHARES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
|-------------------------------------------------------------------------------------------
|                                                                                           
|Cash flows from operating activities:                                                      
|Net Income                                                                                 
|Adjustments to reconcile net income to
net cash provided by operating activities:          
|                                                                                           
|Depreciation                                                                               
|Provision for credit losses                                                                
|Amortization of intangibles                                                                
|Amortization of bond premium                                                               
|Accretion of bond discount                                                                 
|Loss (gain) on sale of assets                                                              
|Mortgage loans originated for sale                                                         
|Proceeds from sale of mortgage loans                                                       
|Increase in interest receivable                                                            
|Increase (decrease) in interest payable                                                    
|Other, net                                                                                 
|Net cash provided by operating activities                                                  
|Cash flows from investing activities:                                                      
|Maturities of held-to-maturity securities                                                  
|Maturities of available-for-sale securities                                                
|Purchases of held-to-maturity securities                                                   
|Purchases of available-for-sale securities                                                 
|Federal funds sold, net                                                                    
|Proceeds from sale of other real estate                                                    
|Net increase in loans made to customers                                                    
|Capital expenditures                                                                       
|Net cash used by investing activities                                                      
|($29,491,498)                                                                              
|Cash flows from financing activities:                                                      
|Net increase (decrease) in deposits                                                        
|Proceeds from sale of treasury stock                                                       
|Purchases of treasury stock                                                                
|Dividends paid                                                                             
|Debt proceeds                                                                              
|Debt repayment                                                                             
|Net cash provided by financing activities                                                  
|Net decrease in cash and cash equivalents                                                  
|Cash and cash equivalents, beginning                                                       
|CASH & CASH EQUIVALENTS, ENDING                                                            
|Supplemental schedule of noncash investing
and financing activities:                       
|$1,350,256                                                                                 
|Loans transferred to foreclosed properties                                                 
|The accompanying notes are an integral part of these financial statements.                 

5

|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NOTE 1  FINANCIAL STATEMENTS
The consolidated financial statements included herein are unaudited. In the opinion of management, these statements contain all adjustments necessary to present fairly the financial position of Denmark Bancshares, Inc. (the "Company"), the results
of operations and cash flows for the periods presented. All adjustments necessary for the fair presentation of the financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Companys
latest annual report on Form 10-K.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|NOTE 2  INVESTMENT SECURITIES
The amortized cost and estimated fair value of securities available-for-sale at September 30, 2000, and December 31, 1999, were as follows:                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|U.S. Government agencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Mortgage-backed securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|FHLB stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Equity securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|U.S. Government agencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Mortgage-backed securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|FHBL stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Equity securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|The amortized cost and estimated fair value of securities held-to-maturity at September 30, 2000, and December 31, 1999, were as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|State and local governments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|State and local governments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

6

|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)                                                                                                          
|----------------------------------------------------------------------------------------------------------------------------------------------------------------
|The amortized cost and estimated fair value of securities held-to-maturity and securities
available-for-sale at September 30, 2000, by maturity are shown below:
|                                                                                                                                                                
|                                                                                                                                                                
|                                                                                                                                                                
|(In thousands)                                                                                                                                                  
|                                                                                                                                                                
|Due in 1 year or less                                                                                                                                           
|Due from one to five years                                                                                                                                      
|Due from five to ten years                                                                                                                                      
|Due after ten years                                                                                                                                             
|Equity securities                                                                                                                                               
|Total                                                                                                                                                           
|                                                                                                                                                                
|Mortgage-backed securities are allocated according to their expected prepayments
rather than their contractual maturities.                                      
|                                                                                                                                                                
|NOTE 3 - ALLOWANCE FOR LOAN LOSSES                                                                                                                              
|Changes in the allowance for loan losses were as follows:                                                                                                       
|                                                                                                                                                                
|                                                                                                                                                                
|                                                                                                                                                                
|                                                                                                                                                                
|Balance, beginning of period                                                                                                                                    
|Provision charged to operations                                                                                                                                 
|Recoveries                                                                                                                                                      
|Charge-offs                                                                                                                                                     
|Balance, end of period                                                                                                                                          
|                                                                                                                                                                



































7

|Management's Discussion and Analysis of Financial Condition and
Results of Operations
|-------------------------------------------------------------------------------------
|                                                                                     
|Financial Highlights                                                                 
|                                                                                     
|                                                                                     
|(In thousands)                                                                       
|                                                                                     
|Operating Results                                                                    
|Interest income                                                                      
|Interest expense                                                                     
|Net interest income                                                                  
|Provision for credit losses                                                          
|Noninterest income                                                                   
|Noninterest expense                                                                  
|Net income                                                                           
|                                                                                     
|Per Share Data                                                                       
|Net income per share                                                                 
|                                                                                     
|(In thousands)                                                                       
|                                                                                     
|Financial Condition (1)                                                              
|Loans                                                                                
|Allowance for credit losses                                                          
|Investment securities                                                                
|Assets                                                                               
|Deposits                                                                             
|Other borrowed funds                                                                 
|Stockholders' equity                                                                 
|                                                                                     
|                                                                                     
|Financial Ratios                                                                     
|Return on average equity                                                             
|Return on average assets                                                             
|Interest rate spread                                                                 
|Average equity to average assets                                                     
|Allowance for credit losses                                                          
|to total loans (1)                                                                   
|                                                                                     
|                                                                                     
|(1) As of the period ending.                                                         
|                                                                                     









8

Managements Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations



Net interest income for the quarter ended September 30, 2000, was $2,454,698, a decrease of $107,317 over the corresponding period in the prior year. The following table sets forth a summary of the changes in interest earned and interest paid
resulting from changes in volume and changes in rates:





|                    | Increase (Decrease) Due to
Change In
|------------------- | ------------------------------------
|(In thousands)      | Average
Balance                     
|Interest income     | $709                                
|Interest expense    | 562                                 
|Net interest income | $147                                



The decrease in net interest income is primarily attributable to lower net interest spread which offset increased net interest income generated by larger volume. The Company's average interest rate spread was 2.13% during the third quarter of 2000
compared to 2.83% during the quarter ended September 30, 1999. The yield on earning assets increased by 39 basis points while the cost of funds increased by 109 basis points. Average earning assets increased by $43.0 million during the third quarter of
2000 and average interest-bearing liabilities increased by $39.6 million compared to the third quarter of 1999. The increases in volume improved net interest income by $147,000.

In the third quarter of 2000 the Company's provision for credit losses was $82,500 compared to $78,000 for the third quarter of 1999. Net charge-offs were $50,318 in the third quarter of 2000 compared to net charge-offs of $47,493 during the third
quarter of 1999.

Noninterest income for the three months ended September 30, 2000, was $250,192, a decrease of $20,047 over the corresponding period in 1999. This decrease is primarily the result of a decrease of $16,776 on insurance commissions.

Noninterest expense increased by $190,781 or 11% during the three months ended September 30, 2000, over the corresponding period in 1999. Salaries and benefits expense increased $76,107 or 7% over the corresponding period in 1999. This increase is
the result of higher salaries and wages which increased by $45,654 primarily as a result of regular salary increases and higher group health insurance expenses which increased by $24,875 or 17%. Occupancy expenses increased by $32,852 primarily as a
result of higher depreciation expense which increased by $27,212. Data processing expenses increased by $34,887. The increase in data processing fees includes one-time charges of $8,796 to implement check imaging technology. The Company is currently
negotiating a new contract with its core data processor and evaluating other alternatives in an effort to reduce data processing expenditures. Other operating expenses increased by $46,934 or 16% compared to the corresponding period in 1999.

9

This increase is attributable to higher marketing expenses which increased by $49,140. During July 2000, the Bank extensively advertised a twelve month fixed rate certificate of deposit. The special rate promotion, which generated approximately $15
million in new deposits, was offered in conjunction with the grand re-opening of the recently remodeled Bellevue office.

Return on average assets in the third quarter of 2000 was .64%, compared to .99% for the corresponding period in 1999. Return on average equity in the third quarter of 2000 was 6.6%, compared to 9.3% for the corresponding period in the prior year.



Financial Condition

Total assets increased by $26,757,474 between December 31, 1999, and September 30, 2000. Federal funds sold increased by $9,870,000 during the nine months ended September 30, 2000. Total loans increased by $18,182,794 during the first nine
months of 2000.

The allowance for credit losses increased by $108,549 during the nine months ended September 30, 2000. The allowance equals 1.23% of total loans at September 30, 2000, compared to 1.28% at December 31, 1999. Nonaccrual loans totaled $9,672,676 at
September 30, 2000, an increase of $1,837,553 over December 31, 1999. The increase in nonaccrual loans is primarily the result of loans to two borrowers experiencing financial difficulties. Loans totaling $801,000 to a commercial borrower and its two
individual owners personally became nonaccrual. The loans are secured by mortgages on commercial buildings and residential properties, and are also secured by personal property. Loans totaling $485,000 to a single borrower also became nonaccrual. Of this
amount, $239,000 is secured by a farm property and $246,000 is secured by a tavern with apartment rentals. Management considers these loans marginally collateralized with some loss exposure possible.

The Company's ratio of loans more than 30 days past due (including nonaccrual loans) to total loans was 4.6% at September 30, 2000, compared to 3.7% at December 31, 1999. As of September 30, 2000, management has identified $15.8 million of
potential problem loans. Potential problem loans are loans that are performing but have a greater risk of nonperformance.

Demand deposits increased $3,092,236 during the first nine months of 2000. Interest bearing deposits increased by $26,525,360 between December 31, 1999, and September 30, 2000. Certificates of deposit increased by $28.2 million during the first
nine months of this year. A special CD promotion produced approximately $15 million in deposits. Management also attributes the growth in CD's this year to higher interest rates and volatility in the equity markets.

Other borrowings decreased $4,776,733 the first nine months of 2000. The Company utilized the deposit growth to reduce other borrowed funds.

Stockholders' equity increased by $857,586 to $32,978,960 as of September 30, 2000. The Company and the Bank continue to maintain capital levels well above the regulatory minimum levels. As of September 30, 2000, the Company's leverage ratio was
9.0%, the risk-based core capital ratio was 12.6% and the risk-based total capital ratio was 13.9%.

On September 26, 2000, the Company's Board of Directors declared a semiannual $10.25 per share dividend payable on January 2, 2001, to all shareholders of record on December 12, 2000.

10

Liquidity

Liquidity refers to the ability of the Company to generate adequate amounts of cash to meet the Company's needs for cash. Cash and cash equivalents decreased by $3.0 million during the first nine months of 2000. Loan repayments as well as net
cash provided by operating activities amounting to $2.8 million and the increase in deposits of $29.6 million, as shown in the Consolidated Statement of Cash Flows, were the major sources of funds during the first nine months of 2000. The net increase in
loans of $19.6 million, the net increase in federal funds sold of $9.9 million and the net decrease in borrowed funds of $4.8 million were the major uses of cash during the first nine months. The federal funds sold totaling $13.4 million and the
available-for-sale investment portfolio amounting to $20.0 million as of September 30, 2000, are readily convertible to cash if needed for liquidity purposes.

In addition to on-balance sheet sources of funds the Company also has off-balance sheet sources available to meet liquidity needs. The Company has unused lines of credit of $25.4 million as of September 30, 2000. The Company has commitments to
extend credit of $25.1 million as of September 30, 2000. Management believes the Company's liquidity position as of September 30, 2000, is adequate under current economic conditions.



Accounting Developments

In June 1999, the Financial Accounting Standards Board (FASB) issued FAS No. 137, "Accounting for Derivative Instruments and Hedging Activities -- Deferral of the Effective Date of FASB Statement No. 133 -- an amendment of FASB Statement No. 133".
This statement is effective for all quarters of fiscal years beginning after June 15, 2000. Earlier application is encouraged, but is permitted only as of the beginning of any fiscal quarter that begins after the issuance of the statement. This statement
should not be applied retroactively to financial statements of prior periods. FAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" was issued in June 1998 and was originally effective for all fiscal quarters of fiscal years
beginning after June 15, 1999. FAS No. 133 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities. This statement requires that all
derivatives are recognized as either assets or liabilities in the statement of financial position and that those instruments are measured at fair value. The Company anticipates that the adoption FAS No. 133, as amended by FAS No. 137, will not have a
material impact on the Company's financial statements.



Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company's primary market risk position has not materially changed from that disclosed in the Company's 1999 Form 10-K Annual Report.

Part II -- Other Information



Item 6. Exhibits

(a) Exhibit 27.0 Financial Data Schedule









11

SIGNATURES





Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.







|                       | DENMARK BANCSHARES, INC.


S/S Darrell R. Lemmens
|---------------------- | -------------------------------------------------
|Date: October 23, 2000 | Darrell R. Lemmens,                              
|                       | Principal Executive Officer,                     
|                       | Chairman of the Board,                           
|                       | and President


S/S Denis J. Heim                
|Date: October 23, 2000 | Dennis J. Heim                                   
|                       | Vice President and Treasurer,                    
|                       | Principal Financial and                          
|                       | Accounting Officer                               













































12