Denmark Bancshares, Inc.

103 E. Main St. P.O. Box 130

Denmark, WI 54208-0130

Phone: (920) 863-2161

Fax: (920) 863-6159 www.denmarkstate.com

News Release FOR IMMEDIATE RELEASE: July 23, 2013 CONTACT: John P. Olsen, CEO and President of Denmark Bancshares, Inc.

Jill Feiler, President of Denmark State Bank

Phone: (920) 863-2161

Denmark Bancshares, Inc. Reports Higher Earnings and Increases Dividend

John P. Olsen, President of Denmark Bancshares, Inc. ("DBI"), the parent company of Denmark State Bank, which operates six offices in Brown and Manitowoc County, announced second quarter net income of $1,073,000, or $9.05 per share, up from $821,000, or $6.93 per share, in the second quarter of

2012. For the six months ending June 30, 2013, net income was $2,000,000, or $16.87 per share, compared with $1,670,000, or $14.07 per share in 2012. Return on assets and return on equity for the first six months of 2013 were 0.94% and 6.8% respectively, compared to 0.79% and 5.9%, respectively, for the same period one year ago.

Total assets were $432.7 million as of second quarter-end 2013, an increase of $0.5 million compared to December 31, 2012. Loans increased $9.7 million, from $298.5 million at December 31, 2012 to $308.2 million as of June 30, 2013. "The loan growth was primarily driven by the agri-business sector which grew $7.6 million since year-end," stated Olsen. "Seasonal operating loan demand, high land values, and relatively strong commodity prices have created a robust agricultural credit market over the last two quarters." The loan growth was funded through a reduction in cash and due from banks and federal

funds sold.

The ratio of allowance for loan losses to total loans was 2.02% at June 30, 2013, compared to 2.07% at December 31, 2012. DBI's ratio of loans over 30 days past due (including nonaccrual loans) to total loans was 1.7% as of June 30, 2013, compared to 1.8% as of December 31, 2012.

As of June 30, 2013, DBI's leverage capital ratio remains strong with tier 1 capital to average assets ratio of 14.0% and total capital as percentage of risk-based assets ratio at 20.0%. "During the second quarter DBI declared the 59th consecutive dividend and raised the semi-annual dividend by five cents per share to $7.30 per share," said Olsen. "The strong capital ratios, consistent earnings, adequate liquidity and improving loan quality enabled DBI to increase the dividend per share for the first time since 2007."

The increase in second quarter 2013 net income was attributable to several factors including a reduction in income tax expense of $218,000 which was primarily the result of recognizing the tax benefits of a loss carryforward. Also during the three months ended June 30, 2013, losses on the disposition of foreclosed properties were $12,000, a reduction of $103,000 or 88% from one year prior. A core deposit intangible asset was fully amortized during 2012 resulting in a reduction in expenses recognized in the three months ended June 30, 2013 of $48,000 when compared to the same period of 2012. These expense reductions more than offset the decrease of $156,000 in net interest income.

About Denmark Bancshares, Inc.

Denmark Bancshares, Inc., headquartered in Denmark, Wisconsin, is a diversified one-bank holding company. DBI reported total assets of $433 million as of June 30, 2013. 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.

SELECTED FINANCIAL DATA

June 30 Dec 31 June 30



(In thousands, except per share data) 2013 2012 2012

Financial Condition (1)


Total Loans $308,157 $298,466 $304,594
Allowance for credit losses 6,229 6,185 6,585

Investment securities 84,520 83,141 78,031
Assets 432,658 432,113 421,540

Deposits 335,869 337,057 324,367
Other borrowed funds 35,618 34,710 38,151

Stockholders' equity 59,075 58,324 56,938
Book value per share $ 498.46 $ 491.90 $ 480.21

Financial Ratios



Average equity to average assets 13.98% 13.61% 13.60% Tier 1 capital to average assets 13.96% 13.73% 13.65% Tier 1 capital to risk-weighted assets 18.70% 18.87% 18.25% Total capital to risk-weighted assets 19.96% 20.13% 19.51% Allowance for credit losses

to total loans (1) 2.02% 2.07% 2.16% Non-performing loans to assets 1.03% 1.03% 1.70% Non-performing loans to allowance for
credit losses (1) 72% 72% 109%
(1) As of the period ending.

For the Three Months For the Six Months

Ended June 30, Ended June 30, Operating Results 2013 2012 2013 2012

Interest income $4,032 $4,360 $8,029 $8,665

Interest expense 675 847 1,353 1,743
Net interest income 3,357 3,513 6,676 6,922

Provision for credit losses 100 150 200 300
Noninterest income 528 505 1,122 1,100

Securities write down for OTTI 0 44 0 77
Noninterest expense 2,504 2,577 4,961 5,116

Income tax expense 208 426 637 859
Net income 1,073 821 2,000 1,670

Net income per share

$ 9.05

$ 6.93

$ 16.87

$ 14.07

Operating Ratios


Return on average equity 7.21% 5.77% 6.76% 5.88% Return on average assets 1.01% 0.79% 0.94% 0.79% Interest rate spread (tax equivalent) 3.24% 3.43% 3.24% 3.35%

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