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 March 31, 2001

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
incorporation or organization) | (I.R.S. Employer Identification No.)

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:

As of April 27, 2001, there were 54,796 shares of the registrant's Common Stock (no par value) issued and outstanding.















DENMARK BANCSHARES, INC.

TABLE OF CONTENTS

Quarterly Report On Form 10-Q

For The Quarter Ended March 31, 2001



|                                                                                              | Page No.
|--------------------------------------------------------------------------------------------- | --------
|                                                                                              |         
|PART I.Financial Information                                                                  |         
|                                                                                              |         
|Item 1. Financial Statements                                                                  |         
|                                                                                              |         
|Consolidated Statements of Financial Condition                                                | 3       
|                                                                                              |         
|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       
|                                                                                              |         
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                            | 10      
|                                                                                              |         
|                                                                                              |         
|SIGNATURES                                                                                    | 11      
|                                                                                              |         

































|Denmark Bancshares, Inc. and Subsidiaries                                 
|--------------------------------------------------------------------------
|Consolidated Statements of Financial Condition                            
|                                                                          
|                                                                          
|                                                                          
|Assets                                                                    
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|Liabilities                                                               
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|Stockholders' Equity                                                      
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|The accompanying notes are an integral part of these financial statements.
|                                                                          
|3                                                                         



|Denmark Bancshares, Inc. and Subsidiaries                                 
|--------------------------------------------------------------------------
|Consolidated Statements of Income                                         
|(Unaudited)                                                               
|                                                                          
|                                                                          
|                                                                          
|Interest Income                                                           
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|Interest Expense                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|Provision for Credit Losses                                               
|                                                                          
|                                                                          
|Other Income                                                              
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|Other Expense                                                             
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|                                                                          
|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:    
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|Cash Flows from Investing Activities:    
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|Cash Flows from Financing Activities:    
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|                                         
|Noncash Investing Activities:            
|                                         
|                                         
|                                         
|                                         
|5                                        



|Denmark Bancshares, Inc. and Subsidiaries                                                    
|---------------------------------------------------------------------------------------------
|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 are of a normal recurring nature. These        
|consolidated financial statements should be read in conjunction with the consolidated        
|financial statements and the notes thereto included in the Company's latest annual           
|report on Form 10-K.                                                                         
|                                                                                             
|NOTE 2 - INVESTMENT SECURITIES                                                               
|The amortized cost and estimated fair value of securities available-for-sale were as follows:
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|The amortized cost and estimated fair value of securities held-to-maturity were as follows:  
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|                                                                                             
|6                                                                                            





|Denmark Bancshares, Inc. and Subsidiaries                                                                 
|----------------------------------------------------------------------------------------------------------
|Notes to Consolidated Financial Statements                                                                
|(Unaudited)                                                                                               
|                                                                                                          
|                                                                                                          
|The amortized cost and estimated fair values of securities at March 31, 2000, by maturity were as follows:
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|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                                                                                    
|                                                                                                          
|                                                                                                          
|                                                                                                          











































|Denmark Bancshares, Inc. and Subsidiaries                                            
|-------------------------------------------------------------------------------------
|Management's Discussion and Analysis of Financial Condition and Results of Operations
|(Unaudited)                                                                          
|                                                                                     
|                                                                                     
|                                                                                     
|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

Management's Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Net income for the quarter ended March 31, 2001, was $825,713, or $15.07 per share, an increase of $97,142 or 13%, compared to $728,571, or $13.26 per share, for the corresponding period in 2000. This increase was the result of
higher net interest income and higher noninterest income, which more than offset an increase in the provision for loan losses and higher noninterest expenses.

Net interest income for the quarter ended March 31, 2001, was $2,911,515, an increase of $231,897 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 Due to Change In |             
|------------------- | ------------------------- | ------------
|(In thousands)      | Average
Balance           | Average
Rate
|Interest Income     | $581                      | $257        
|Interest Expense    | 351                       | 255         
|Net interest income | $230                      | $2          

The increase in net interest income is primarily attributable to higher volume. Average earning assets increased by $30.0 million or 10% during the first quarter of 2001 compared to the first quarter of 2000. Average
interest-bearing liabilities increased by $24.5 million or 9.3% compared to the first quarter of 2000. The increases in volume resulted in an increase in net interest income of $230,000.

In the first quarter of 2001 the Company's provision for credit losses was $111,000 compared to $82,500 for the first quarter of 2000. Net charge-offs were $85,223 in the first quarter of 2001 compared to net charge-offs of $39,012
during the first quarter of 2000.

Noninterest income for the three months ended March 31, 2001, was $281,792, an increase of $59,941 over the corresponding period in 2000. This increase is primarily the result of an increase of $45,094 in commissions from insurance
sales. The higher commissions are mostly attributable to bonuses received based on volume and loss experience from previous years. Investment security gains increased by $6,384 during the first quarter of 2001 compared to the corresponding period in the
prior year. Appraisal fees were $4,375 higher in the first quarter of 2001 compared to the first quarter of 2000.

Noninterest expense increased by $127,560 or 7% during the three months ended March 31, 2001, over the corresponding period in 2000. Salaries and benefits expense increased $82,864 or 7% over the corresponding period in 2000. This
increase is the result of higher salaries and wages, which increased by $35,639 primarily as a result of regular salary increases and higher group health insurance expenses, which increased by $44,060 or 28%. Occupancy expenses increased by $36,002 or 18%
compared to the first quarter of 2000. This increase is the result of major equipment repairs totaling $12,655, an increase in depreciation of $12,300 and an increase in utility expenses amounting to $5,397. Other operating expenses increased by $22,419
or 8%. This increase was primarily the result of higher legal expenses, which increased by $12,230 compared to the first quarter of 2000. The Company paid $10,756 in legal fees for the review and negotiation of a long-term data processing contract.

Return on average assets in the first quarter of 2001 was .95%, compared to .92% for the corresponding period in 2000. Return on average equity in the first quarter of 2001 was 9.6%, compared to 9.0% for the corresponding period in
the prior year.



9

Financial Condition

Total assets increased by $3,492,121 between December 31, 2000, and March 31, 2001. Federal funds sold increased by $13.7 million during the first quarter. Investment securities and loans decreased by $9.5 million and $1.8
million, respectively, during the first quarter of 2001. During the quarter $11.5 million of U.S. Government agency securities were called. The funds were used to increase the tax-exempt portfolio, which increased by $1.8 million and to increase federal
funds sold. The Bank sold $3.3 million of fixed rate mortgages to the secondary mortgage market. Other borrowed funds increased by $4.4 million during the first three months of 2001.

The allowance for credit losses increased by $25,777 during the quarter ended March 31, 2001. The allowance equals 1.25% of total loans at March 31, 2001, compared to 1.24% at December 31, 2000. Nonaccrual loans totaled $8,331,073
at March 31, 2001, an increase of $185,554 over December 31, 2000. The Company's ratio of loans more than 30 days past due (including nonaccrual loans) to total loans was 5.0% at March 31, 2001 compared to 4.0% at December 31, 2000. Loans 30 days past due
but still accruing totaled $5.7 million at March 31, 2001, an increase of $2.6 million compared to year-end. The increase in past due loans is concentrated in commercial and agriculture loans. As of the date of this filing $1.7 million of these loans are
now current. As of March 31, 2001, management has identified $15.5 million of potential problem loans. Potential problem loans are loans that are performing but have a greater risk of nonperformance.

Demand deposits decreased $6,210,390 or 18.5% during the first quarter of 2001. Management attributes the decrease in demand deposits to a normal seasonal fluctuation. Interest bearing deposits increased by $4,680,460 between
December 31, 2000, and March 31, 2001.



Stockholders' equity increased by $370,278 to $34,122,008 as of March 31, 2001. As of March 31, 2001, the Company's leverage ratio was 9.7%, the risk-based core capital ratio was 12.9% and the risk-based total capital ratio was
14.1%. The Company and the Bank continue to maintain capital levels well above the regulatory minimum levels.

On March 27, 2001, the Company's board of directors declared a semiannual $10.75 per share dividend payable on July 2, 2001, to all shareholders of record on June 12, 2001.

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 increased by $907,622 during the first quarter of 2001. The major sources and
uses of cash are detailed in the accompanying Consolidated Statements of Cash Flows. The federal funds sold totaling $19.0 million and the available-for-sale investment portfolio amounting to $5.1 million as of March 31, 2001, 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 $26.9 million as of March 31, 2001. Management believes
the Company's liquidity position as of March 31, 2001, is adequate under current economic conditions.

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 2000 Form 10-K Annual Report.



10

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: April 27, 2001 | Darrell R. Lemmens,                              
|                     | Principal Executive Officer,                     
|                     | Chairman of the Board,                           
|                     | and President


s/s Dennis J. Heim               
|Date: April 27, 2001 | Dennis J. Heim                                   
|                     | Vice President and Treasurer,                    
|                     | Principal Financial and                          
|                     | Accounting Officer                               













































11