Exhibit 99.3

Denmark Bancshares, Inc. and Subsidiaries

June 30, 2022 Financial Statements

Denmark Bancshares, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

	June 30, 2022			December 31, 2021
	(Unaudited)			(Audited)
Assets
Cash and due from banks	$	33,830,206		$	38,490,134
Federal funds sold		132,280,086			112,665,088
Investment securities available for sale, at fair value		29,530,957			36,462,450
Loans		465,575,725			479,056,630
Allowance for loan losses		(7,722,879	)		(7,741,069	)
Net loans	$	457,852,846		$	471,315,561
Loans held for sale		65,496			82,401
Premises and equipment, net		5,303,636			5,578,294
Other investments		3,079,177			3,724,977
Accrued interest receivable		1,176,719			1,304,890
Bank-owned life insurance		13,195,877			13,018,897
Other assets		5,183,153			5,000,879
TOTAL ASSETS	$	681,498,153		$	687,643,571
Liabilities
Deposits
Noninterest-bearing	$	161,368,453		$	155,292,023
Interest-bearing		448,047,943			459,205,230
Total Deposits	$	609,416,396		$	614,497,253
Accrued interest payable		165,641			166,199
Other liabilities		3,262,455			4,020,829
Borrowings		864,874			932,844
Total Liabilities	$	613,709,366		$	619,617,125
Stockholders' Equity
Common stock, no par value, authorized 10,000,000 Class A shares; outstanding 3,012,964 at 6/30/2022 and 3,003,883 at 12/31/2021	$	18,183,326		$	18,009,891
Common stock, no par value, authorized 1,000,000 Class B non-voting shares; outstanding 89,285 at 6/30/2022 and 89,285 at 12/31/2021		614,035			614,035
Treasury stock shares, at cost (588,392 Class A and 30,895 Class B shares at 6/30/2022 and 588,392 Class A and 30,895 Class B shares at 12/31/2021)		(13,249,219	)		(12,980,652	)
Paid in capital		1,767,018			1,562,939
Retained earnings		62,197,086			60,828,648
Accumulated other comprehensive income (loss)		(1,390,990	)		222,341
Deferred stock-based compensation		(332,469	)		(230,756	)
Total Stockholders' Equity	$	67,788,787		$	68,026,446
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	681,498,153		$	687,643,571

The accompanying notes are an integral part of these financial statements.

1

Denmark Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Three months ended June 30,					Six months ended June 30,
	2022		2021			2022		2021
Interest Income
Loans including fees	$	5,070,819	$	5,092,932		$	10,063,428	$	10,877,982
Investment securities:
Taxable		100,928		101,913			203,787		208,541
Tax-exempt		35,620		48,673			83,938		98,434
Federal funds sold		233,021		16,905			271,024		30,958
Other interest income		11,023		14,641			33,630		33,215
	$	5,451,411	$	5,275,064		$	10,655,807	$	11,249,130
Interest Expense
Deposits	$	408,513	$	518,644		$	835,781	$	1,103,548
Borrowings		3,921		19,092			7,994		560,001
	$	412,434	$	537,736		$	843,775	$	1,663,549
Net interest income	$	5,038,977	$	4,737,328		$	9,812,032	$	9,585,581
Provision for Credit Losses		0		(75,000	)		0		0
Net interest income after
provision for credit losses	$	5,038,977	$	4,812,328		$	9,812,032	$	9,585,581
Other Income
Service fees and commissions	$	313,377	$	440,967		$	577,363	$	617,989
Other investment gains		0		0			0		9,018
Loan sale gains		98,107		528,344			292,174		1,479,030
Bank owned life insurance		90,328		87,205			176,980		172,156
Other		222,317		234,000			459,074		570,425
	$	724,129	$	1,290,516		$	1,505,591	$	2,848,618
Other Expense
Salaries and employee benefits	$	2,409,184	$	2,713,370		$	5,301,046	$	5,556,610
Data processing expenses		429,682		454,537			890,621		886,112
Occupancy expenses		326,718		353,188			696,863		723,441
Professional fees		180,671		113,810			619,308		283,318
Marketing expenses		82,658		92,258			127,347		147,950
Printing and supplies		8,033		14,611			28,131		36,453
Directors' fees		47,423		51,977			99,899		105,650
FDIC insurance premiums		50,000		62,400			100,000		125,200
Other operating expenses		176,851		210,946			379,784		390,903
	$	3,711,220	$	4,067,094		$	8,242,999	$	8,255,637
Income before income taxes	$	2,051,886	$	2,035,747		$	3,074,624	$	4,178,562
Income tax expense		496,999		524,252			775,511		1,069,431
NET INCOME	$	1,554,887	$	1,511,495		$	2,299,113	$	3,109,131
EARNINGS PER COMMON SHARE	$	0.50	$	0.48		$	0.74	$	0.99

The accompanying notes are an integral part of these financial statements.

2

Denmark Bancshares, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

,

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Net income	$	1,554,887		$	1,511,495		$	2,299,113		$	3,109,131
Other comprehensive (loss) income, net of tax
Unrealized holding (losses) gains arising during period		(765,193	)		38,152			(2,210,042	)		(357,796	)
Income tax benefit (expense) related to items of other comprehensive income		206,602			(10,301	)		596,711			96,606
Other comprehensive (loss) income, net of tax	$	(558,591	)	$	27,851		$	(1,613,331	)	$	(261,190	)
Comprehensive income	$	996,296		$	1,539,346		$	685,782		$	2,847,941

The accompanying notes are an integral part of these financial statements.

3

Denmark Bancshares, Inc. and Subsidiaries

Consolidated Statement of Changes in Stockholders’ Equity

(Unaudited)

													Accumulated
	Common Stock				Treasury								Other			Deferred
	Class A		Class B		Shares			Paid in		Retained			Comprehensive			Stock-Based
	Amount		Amount		Amount			Capital		Earnings			Income (loss)			Compensation			Total
BALANCE, JANUARY 1, 2021	$	17,836,258	$	614,035	$	(11,528,855	)	$	1,309,054	$	56,203,275		$	786,074		$	(190,715	)	$	65,029,126
Net income										$	1,597,636									1,597,636
Other comprehensive income, net of tax													$	(289,041	)					(289,041	)
Issuance of Class A restricted common stock									234,581								(234,581	)		0
Issuance of Class A common stock		173,634																		173,634
Stock-based compensation expense																	45,075			45,075
Treasury stock acquisitions						(52,410	)													(52,410	)
BALANCE, MARCH 31, 2021	$	18,009,892	$	614,035	$	(11,581,265	)	$	1,543,635	$	57,800,911		$	497,033		$	(380,221	)	$	66,504,020
Net income											1,511,495									1,511,495
Other comprehensive income, net of tax														27,851						27,851
Stock-based compensation expense																	49,636			49,636
Cash dividend declared, $0.30 per share											(944,780	)								(944,780	)
BALANCE, JUNE 30, 2021	$	18,009,892	$	614,035	$	(11,581,265	)	$	1,543,635	$	58,367,626		$	524,884		$	(330,585	)	$	67,148,222
BALANCE, JANUARY 1, 2022	$	18,009,891	$	614,035	$	(12,980,652	)	$	1,562,939	$	60,828,648		$	222,341		$	(230,756	)	$	68,026,446
Net income										$	744,226									744,226
Other comprehensive income, net of tax													$	(1,054,740	)					(1,054,740	)
Issuance of Class A restricted common stock									204,079								(204,079	)		0
Issuance of Class A common stock		173,435																		173,435
Stock-based compensation expense																	50,548			50,548
Treasury stock acquisitions						(268,567	)													(268,567	)
BALANCE, MARCH 31, 2022	$	18,183,326	$	614,035	$	(13,249,219	)	$	1,767,018	$	61,572,874		$	(832,399	)	$	(384,287	)	$	67,671,348
Net income											1,554,887									1,554,887
Other comprehensive income, net of tax														(558,591	)					(558,591	)
Stock-based compensation expense																	51,818			51,818
Cash dividend declared, $0.30 per share											(930,675	)								(930,675	)
BALANCE, JUNE 30, 2022	$	18,183,326	$	614,035	$	(13,249,219	)	$	1,767,018	$	62,197,086		$	(1,390,990	)	$	(332,469	)	$	67,788,787

The accompanying notes are an integral part of these financial statements.

4

Denmark Bancshares, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
	2022			2021
Cash Flows from Operating Activities:
Net income	$	2,299,113		$	3,109,131
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		318,638			339,314
Gains on sales of loans		(292,174	)		(1,479,030	)
Gain on sale of other investments		0			(9,018	)
Amortization of bond premium		65,805			94,919
Accretion of bond discount		(17,078	)		(18,106	)
Increase in fair value of equity securities		(29,200	)		(137,200	)
Mortgage loans originated for sale		(9,958,075	)		(38,292,970	)
Proceeds from sale of mortgage loans		10,437,790			40,256,200
Stock-based compensation		102,366			94,711
Income from BOLI		(176,980	)		(172,156	)
Decrease in interest receivable		128,171			309,792
Decrease in interest payable		(558	)		(74,451	)
Other, net		(346,661	)		(600,679	)
Net Cash Provided by Operating Activities	$	2,531,157		$	3,420,457
Cash Flows from Investing Activities:
Maturities, pay-downs, calls and sales of AFS securities		4,672,724			5,248,894
Purchases of AFS securities		0			(11,152,330	)
Proceeds from redemption or sale of other investments		675,000			66,618
Federal funds sold, net		(19,614,998	)		11,115,366
Net increase in loans made to customers		13,292,079			(9,457,988	)
Purchases of premises and equipment		(43,980	)		(27,002	)
Net Cash Used in Investing Activities	$	(1,019,175	)	$	(4,206,442	)
Cash Flows from Financing Activities:
Net increase in deposits	$	(5,080,857	)	$	19,377,826
Purchase of treasury stock		(268,567	)		(52,410	)
Issuance of common stock		173,435			173,634
Dividends paid		(927,951	)		(924,565	)
Debt repayments		(67,970	)		(13,066,765	)
Net Cash (Used in) Provided by Financing Activities	$	(6,171,910	)	$	5,507,720
Net (decrease) increase in cash and due from banks	$	(4,659,928	)	$	4,721,735
Cash and due from banks, beginning of period		38,490,134			24,100,714
CASH AND DUE FROM BANKS, END OF PERIOD	$	33,830,206		$	28,822,449

5

NOTE 1 – BASIS OF PRESENTATION

Denmark Bancshares, Inc. (“DBI” or the “Company”) is a bank holding company as defined in the Bank Holding Company Act of 1956, as amended. As such, it exercises control over Denmark State Bank (“DSB”), Denmark Agricultural Credit Corporation (“DACC”) and DBI Properties, Inc. The majority of DBI’s assets are held by DSB. DSB, a wholly owned subsidiary of DBI, operates under a state bank charter, and provides a variety of banking services to its customers. DBI Properties, Inc. was formed in February 2009 for the purpose of holding certain foreclosed properties. All activities of the wholly owned subsidiaries are reflected in the consolidated financial statements for Denmark Bancshares, Inc. and Subsidiaries (collectively referred to as “DBI”).

These interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, certain information and footnote disclosures required by GAAP have been omitted or abbreviated. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes as of and for the year ended December 31, 2021 (“Annual Report”).

The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustment necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the financial statements include fair values of securities, fair values of financial instruments, valuation of deferred tax assets and the determination of the allowance for loan losses, which are discussed specifically in the following sections of this footnote.

Critical Accounting Policies

There have been no material changes or developments with respect to the assumptions or methodologies that the Company uses when applying what management believes are critical accounting policies and developing critical accounting estimates as previously disclosed in the Company’s Annual Report.

Upcoming Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments - Credit Losses; Measurement of Credit Losses on Financial Instruments. The ASU includes increased disclosures and various changes to the accounting and measurement of financial assets including DBI’s loans and available-for-sale investment securities. Each financial asset presented on the statement of condition would have a unique allowance for credit losses that is deducted from the amortized cost basis to present the net carrying value. The amendments in this ASU also eliminate the probable initial recognition threshold in current U.S. GAAP and, instead, reflect an entity's current estimate of all expected credit losses using reasonable and supportable forecasts. The new credit loss guidance will be effective for DBI's year ending December 31, 2023. Upon adoption, the ASU will be applied using a modified retrospective transition method to the beginning of the first reporting period in which the guidance is effective. Early adoption for all institutions is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. DBI believes this standard will have an impact on the consolidated financial statements and is assessing the significance.

6

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and estimated fair market value of debt securities available for sale were as follows:

	June 30, 2022
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government Treasuries	$	7,424,960	$	0	$	(675,761	)	$	6,749,199
U.S. Government-sponsored agency MBS		11,224,981		2,611		(635,094	)		10,592,498
State and local governments		12,053,471		22,353		(614,569	)		11,461,255
Asset-backed securities		733,011		0		(5,006	)		728,005
	$	31,436,423	$	24,964	$	(1,930,430	)	$	29,530,957

	December 31, 2021
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government Treasuries	$	7,416,322	$	0	$	(83,100	)	$	7,333,222
U.S. Government-sponsored agency MBS		12,803,479		191,591		(75,015	)		12,920,055
State and local governments		15,124,564		323,345		(48,894	)		15,399,015
Asset-backed securities		813,508		615		(3,965	)		810,158
	$	36,157,873	$	515,551	$	(210,974	)	$	36,462,450

There were no available-for-sale securities sold during the first six months of 2022 or 2021.

The amortized cost and estimated fair values of debt securities at June 30, 2022, by maturity were as follows:

	Debt Securities Available-for-Sale
			Estimated
	Amortized		Fair
Amounts Maturing	Cost		Value
Within one year	$	2,978,657	$	2,976,827
From one through five years		7,938,078		7,309,422
From five through ten years		8,561,696		7,924,205
After ten years		0		0
Subtotal	$	19,478,431	$	18,210,454
Mortgage and asset-backed securities	$	11,957,992	$	11,320,503
Total	$	31,436,423	$	29,530,957

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:

June 30, 2022

	Less Than Twelve Months				Over Twelve Months
	Gross		Estimated		Gross		Estimated
	Unrealized		Fair		Unrealized		Fair
Debt Securities Available for Sale	Losses		Value		Losses		Value
U.S. Government Treasuries	$	675,761	$	6,749,199	$	0	$	0
U.S. Government-sponsored agency MBS		409,605		7,651,002		225,489		2,622,945
State and local governments		431,086		6,737,866		183,483		1,091,517
Asset-backed securities		2,312		202,603		2,694		525,401
Total securities available for sale	$	1,518,764	$	21,340,670	$	411,666	$	4,239,863

7

December 31, 2021

	Less Than Twelve Months				Over Twelve Months
	Gross		Estimated		Gross		Estimated
	Unrealized		Fair		Unrealized		Fair
Debt Securities Available for Sale	Losses		Value		Losses		Value
U.S. Government Treasuries	$	83,100	$	7,333,222	$	0	$	0
U.S. Government-sponsored agency MBS		74,426		5,845,638		589		114,604
State and local governments		48,894		1,726,107		0		0
Asset-backed securities		3,965		584,417		0		0
Total securities available for sale	$	210,385	$	15,489,384	$	589	$	114,604

All debt securities with unrealized losses are assessed to determine if the impairment is other-than-temporary. Factors that are evaluated include the loan types supporting the securities, delinquency and foreclosure rates, credit support, weighted average loan-to-value, year of origination, borrower profile, existing and projected debt burden, underlying cash flow of the borrower and exposure to risks, among others.

There were no issuers of debt securities for which a significant concentration of investments (greater than 10 percent of stockholders’ equity) was held as of June 30, 2022.

Debt securities with an estimated fair value of $7.7 million and $11.5 million at June 30, 2022 and December 31, 2021, respectively were pledged to secure public deposits and for other purposes required or permitted by law.

NOTE 3 – LOANS

Major categories of loans included in the loan portfolio as of June 30, 2022 and December 31, 2021 are as follows:

	June 30,			December 31,
	2022			2021
Real Estate:
Residential	$	104,594,669		$	88,372,489
Commercial		165,129,393			163,456,468
Construction		14,990,563			26,678,745
Agricultural		73,440,463			77,848,753
		358,155,088			356,356,455
Commercial		72,070,537			80,678,804
Agricultural		27,487,325			33,447,807
Consumer and other		7,758,893			8,612,216
Unsecured		132,772			251,115
Total Loans Receivable	$	465,604,615		$	479,346,397
Allowance for loan losses		(7,722,879	)		(7,741,069	)
Deferred loan fees		(28,890	)		(289,767	)
Total Loans, Net	$	457,852,846		$	471,315,561

During 2020, the SBA introduced the Paycheck Protection Program (“PPP”) designed to provide liquidity to small businesses during the COVID-19 pandemic. The loans are guaranteed by the SBA and loan proceeds to borrowers are forgivable by the SBA if certain criteria are met. On January 15, 2021, the SBA re-opened the loan portal for a second round of the PPP loan program with a May 31, 2021 deadline for applications. DSB originated loans totaling $68.2 million under PPP. As of June 30, 2022, all first round PPP loans have been forgiven and there were approximately $0.4 million of second round PPP loans included on the balance sheet. PPP processing fees received from SBA totaling $3.4 million were deferred and recognized as interest income using the effective yield method. Upon forgiveness of a loan and resulting repayment by the SBA, any unrecognized net fee for a given loan is recognized as interest income. DSB recognized $0.3 million and $1.1 million of the fees in the first six months of 2022 and 2021, respectively.

8

The following is a summary of total loans and those individually evaluated for impairment as of June 30, 2022 and December 31, 2021:

	June 30, 2022				December 31, 2021
			Ending Balance				Ending Balance
			Individually				Individually
	Ending		Evaluated		Ending		Evaluated
	Balance		for Impairment		Balance		for Impairment
Residential Real Estate	$	104,594,669	$	111,600	$	88,372,489	$	288,881
Commercial Real Estate		165,129,393		0		163,456,468		0
Construction & Land Dev		14,990,563		0		26,678,745		0
Agricultural Real Estate		73,440,463		1,442,947		77,848,753		2,214,013
Commercial		72,070,537		50,690		80,678,804		0
Agricultural		27,487,325		32,134		33,447,807		44,085
Consumer and other		7,891,665		0		8,863,331		200
Total	$	465,604,615	$	1,637,371	$	479,346,397	$	2,547,179

The following tables show the investment in impaired loans and the corresponding allowance for those loans along with the recognized interest income associated with impaired loans as of June 30, 2022 and December 31, 2021:

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
June 30, 2022	Investment		Balance		Allowance		Investment		Recognized
With no related allowance:
Residential Real Estate	$	111,600	$	150,823	$	0	$	153,249	$	0
Commercial Real Estate		0		0		0		0		0
Construction & Land Dev		0		0		0		0		0
Agricultural Real Estate		1,442,947		1,484,250		0		1,742,272		44,360
Commercial		50,690		67,586		0		67,586		0
Agricultural		32,134		32,134		0		38,274		1,130
Consumer and other		0		0		0		0		0
With a related allowance:
Residential Real Estate	$	0	$	0	$	0	$	0	$	0
Commercial Real Estate		0		0		0		0		0
Construction & Land Dev		0		0		0		0		0
Agricultural Real Estate		0		0		0		0		0
Commercial		0		0		0		0		0
Agricultural		0		0		0		0		0
Consumer and other		0		0		0		0		0
Total:
Residential Real Estate	$	111,600	$	150,823	$	0	$	153,249	$	0
Commercial Real Estate		0		0		0		0		0
Construction & Land Dev		0		0		0		0		0
Agricultural Real Estate		1,442,947		1,484,250		0		1,742,272		44,360
Commercial		50,690		67,586		0		67,586		0
Agricultural		32,134		32,134		0		38,274		1,130
Consumer and other		0		0		0		0		0
Total	$	1,637,371	$	1,734,793	$	0	$	2,001,381	$	45,490

9

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
December 31, 2021	Investment		Balance		Allowance		Investment		Recognized
With no related allowance:
Residential Real Estate	$	288,881	$	352,567	$	0	$	380,540	$	0
Commercial Real Estate		0		0		0		0		0
Construction & Land Dev		0		0		0		0		0
Agricultural Real Estate		2,214,013		2,262,632		0		2,475,384		70,395
Commercial		0		0		0		0		0
Agricultural		44,085		44,085		0		56,187		3,371
Consumer and other		0		0		0		0		0
With a related allowance:
Residential Real Estate	$	0	$	0	$	0	$	0	$	0
Commercial Real Estate		0		0		0		0		0
Construction & Land Dev		0		0		0		0		0
Agricultural Real Estate		0		0		0		0		0
Commercial		0		0		0		0		0
Agricultural		0		0		0		0		0
Consumer and other		200		243		200		1,049		0
Total:
Residential Real Estate	$	288,881	$	352,567	$	0	$	380,540	$	0
Commercial Real Estate		0		0		0		0		0
Construction & Land Dev		0		0		0		0		0
Agricultural Real Estate		2,214,013		2,262,632		0		2,475,384		70,395
Commercial		0		0		0		0		0
Agricultural		44,085		44,085		0		56,187		3,371
Consumer and other		200		243		200		1,049		0
Total	$	2,547,179	$	2,659,527	$	200	$	2,913,160	$	73,766

No additional funds are committed to be advanced in connection with impaired loans.

A summary of activity in the ALLL by loan type as of June 30, 2022 and 2021 is summarized as follows:

													Ending Balance
	Beginning										Ending		Individually
	Balance										Balance		Evaluated
2022	1/1/2022		Charge-offs			Recoveries		Provision			6/30/2022		for Impairment
Residential Real Estate	$	627,577	$	(3,542	)	$	0	$	117,154		$	741,189	$	0
Commercial Real Estate		3,235,974		0			0		74,648			3,310,622		0
Construction & Land Dev		252,967		0			0		(110,557	)		142,410		0
Agricultural Real Estate		1,397,634		0			0		(104,646	)		1,292,988		0
Commercial		1,062,100		(16,897	)		0		(56,040	)		989,163		0
Agricultural		717,818		0			0		(158,398	)		559,420		0
Consumer and other		15,036		(504	)		2,753		(4,362	)		12,923		0
Unallocated		431,963		0			0		242,201			674,164		0
Total	$	7,741,069	$	(20,943	)	$	2,753	$	0		$	7,722,879	$	0

10

													Ending Balance
	Beginning										Ending		Individually
	Balance										Balance		Evaluated
2021	1/1/2021		Charge-offs			Recoveries		Provision			6/30/2021		for Impairment
Residential Real Estate	$	494,346	$	0		$	12,885	$	105,765		$	612,996	$	0
Commercial Real Estate		2,764,964		0			0		209,848			2,974,812		0
Construction & Land Dev		228,880		0			0		(81,133	)		147,747		0
Agricultural Real Estate		1,432,239		0			0		(11,552	)		1,420,687		0
Commercial		1,169,473		0			4,039		(67,523	)		1,105,989		0
Agricultural		756,559		0			0		(18,292	)		738,267		18,200
Consumer and other		18,826		(19	)		1,603		(3,383	)		17,027		1,015
Unallocated		803,148		0			0		(133,730	)		669,418		0
Total	$	7,668,435	$	(19	)	$	18,527	$	0		$	7,686,943	$	19,215

Nonaccrual loans totaled $0.2 million and $0.5 million at June 30, 2022 and December 31, 2021, respectively. They were comprised of 1-4 family residential real estate loans totaling $112,000, an agricultural real estate loan totaling $65,000 and a commercial loan totaling $51,000 as of June 30, 2022 and 1-4 family residential real estate loans totaling $289,000 and agricultural real estate loans totaling $161,000 as of December 31, 2021. There were no loans past due ninety days or more and still accruing at June 30, 2022 or December 31, 2021. A schedule of loans by the number of days past due (including nonaccrual loans) along with a schedule of credit quality indicators for loans as of June 30, 2022 and December 31, 2021is summarized as follows:

Age Analysis of Past Due Financing Receivables

	30-89 Days		90 Days		Total				Total
June 30, 2022	Past Due		& Over		Past Due		Current		Loans
Residential Real Estate	$	0	$	78,509	$	78,509	$	104,516,160	$	104,594,669
Commercial Real Estate		2,561,265		0		2,561,265		162,568,128		165,129,393
Construction & Land Dev		0		0		0		14,990,563		14,990,563
Agricultural Real Estate		0		0		0		73,440,463		73,440,463
Commercial		0		50,690		50,690		72,019,847		72,070,537
Agricultural		0		0		0		27,487,325		27,487,325
Consumer and other		0		0		0		7,891,665		7,891,665
Total	$	2,561,265	$	129,199	$	2,690,464	$	462,914,151	$	465,604,615

	30-89 Days		90 Days		Total				Total
December 31, 2021	Past Due		& Over		Past Due		Current		Loans
Residential Real Estate	$	0	$	66,599	$	66,599	$	88,305,890	$	88,372,489
Commercial Real Estate		0		0		0		163,456,468		163,456,468
Construction & Land Dev		0		0		0		26,678,745		26,678,745
Agricultural Real Estate		0		0		0		77,848,753		77,848,753
Commercial		0		0		0		80,678,804		80,678,804
Agricultural		0		0		0		33,447,807		33,447,807
Consumer and other		0		200		200		8,863,131		8,863,331
Total	$	0	$	66,799	$	66,799	$	479,279,598	$	479,346,397

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Credit Quality Indicators

			Special
June 30, 2022	Non-Classified		Mention		Substandard		Doubtful		Total
Residential Real Estate	$	102,993,931	$	1,164,430	$	403,217	$	33,091	$	104,594,669
Commercial Real Estate		152,685,004		5,921,399		6,522,990		0		165,129,393
Construction & Land Dev		14,990,563		0		0		0		14,990,563
Agricultural Real Estate		58,547,581		11,737,068		3,090,363		65,451		73,440,463
Commercial		61,555,515		6,660,412		3,803,920		50,690		72,070,537
Agricultural		25,395,833		2,059,358		32,134		0		27,487,325
Consumer and other		7,868,960		22,705		0		0		7,891,665
Total	$	424,037,387	$	27,565,372	$	13,852,624	$	149,232	$	465,604,615

			Special
December 31, 2021	Non-Classified		Mention		Substandard		Doubtful		Total
Residential Real Estate	$	86,449,154	$	1,294,062	$	606,214	$	23,059	$	88,372,489
Commercial Real Estate		151,181,246		6,688,763		5,586,459		0		163,456,468
Construction & Land Dev		26,678,745		0		0		0		26,678,745
Agricultural Real Estate		57,594,628		14,791,550		5,389,329		73,246		77,848,753
Commercial		68,883,170		7,212,506		4,583,128		0		80,678,804
Agricultural		28,514,669		3,789,582		1,143,556		0		33,447,807
Consumer and other		8,825,929		37,202		0		200		8,863,331
Total	$	428,127,541	$	33,813,665	$	17,308,686	$	96,505	$	479,346,397

During the period ended June 30, 2022, there was one commercial loan modified as a troubled debt restructuring (“TDR”) to a borrower with a recorded investment of $68,000 prior to modification and $51,000 after modification. During the year ended December 31, 2021, there were three agricultural real estate loans to one borrower with a recorded investment of $2.1 million both prior to and following the modification modified as TDRs. During the periods ended June 30, 2022 and December 31, 2021, there were no loans that were previously modified as a TDR that subsequently defaulted.

NOTE 4 – MORTGAGE SERVICING RIGHTS

Mortgage servicing rights (“MSRs”) are recognized based on the fair value of the servicing right on the date the corresponding mortgage loan is sold. An estimate of DBI’s MSRs is determined using assumptions that market participants would use in estimating future net servicing income, including estimates of prepayment speeds, discount rate, default rates, cost to service, escrow account earnings, contractual servicing fee income, ancillary income and late fees. Subsequent to the date of transfer, DBI has elected to measure its MSRs under the amortization method. Under this method, MSRs are amortized in proportion to, and over the period of, estimated net servicing income.

DBI has recorded MSRs related to loans sold without recourse to FNMA. DBI sells conforming, fixed-rate, closed-end, residential real estate mortgages to FNMA. The unpaid principal balances of residential mortgage loans serviced for FNMA were $162.1 million and $163.0 million at June 30, 2022 and December 31, 2021, respectively.

The change in amortized MSRs and the related valuation allowance is presented below:

	June 30,			December 31,
	2022			2021
Mortgage servicing rights, beginning of period	$	1,083,140		$	828,720
Additions from originated servicing		116,817			506,086
Amortization expense		(174,591	)		(461,247	)
Change in valuation allowance		33,904			209,581
Mortgage servicing rights, end of period	$	1,059,270		$	1,083,140

12

DBI evaluates mortgage servicing rights for impairment on a quarterly basis. There was a valuation allowance for amortized MSRs of $1,415 and $35,319 as of June 30, 2022 and December 31, 2021, respectively. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate and loan type. If, by individual stratum, the carrying amount of the MSRs exceeds fair value, a valuation reserve is established. The valuation reserve is adjusted as the fair value changes. At both June 30, 2022 and December 31, 2021, fair value was determined using a discount rate of 9.0%. At June 30, 2022 and December 31, 2021, estimates of prepayment speeds ranged from 4.61% to 15.25% and 7.75% to 29.64%, respectively.

NOTE 5 – BORROWINGS

As of June 30, 2022, DSB had available and unused federal funds lines of credit with one correspondent institution of $18.0 million, as well as an unused $20.0 million line at the Federal Reserve Bank’s discount window. Federal funds purchased generally mature within one day from the transaction date. There were no federal funds purchased outstanding as of June 30, 2022 or December 31, 2021.

Long-term debt consisted of the following:

	June 30, 2022					December 31, 2021
	Rate			Amount		Rate			Amount
Federal Home Loan Bank:
Fixed rate advance		1.79	%	$	864,874		1.79	%	$	932,844

The outstanding Federal Home Loan Bank advance matures in 2023.

The notes payable to the FHLB are secured by residential mortgages with a carrying amount of $95.0 million and $83.7 million, as of June 30, 2022 and December 31, 2021, respectively along with $ $0.7 million of FHLB stock for both periods.

DBI has a revolving line of credit of $20 million with a correspondent bank that had no balance drawn as of June 30, 2022 or December 31, 2021. This line has an interest rate tied to the Wall Street Journal Prime Rate less 100 basis points and matures in October 2023. The interest rate on the line of credit would have been 3.75 percent at June 30, 2022 if DBI had any outstanding borrowings. DBI is subject to a maximum non-performing loan covenant for this borrowing as well as a maximum limitation as a percentage of capital on the outstanding balance of the line.

As of June 30, 2022 DBI had a total of $88.0 million of unused lines of credit with banks to be drawn upon as needed for long-term debt subject to borrowing guidelines.

NOTE 6 – STOCK BASED COMPENSATION

In 2016, the Board approved the Long-Term Incentive Plan (the “Plan”) for executive officers. In 2019, the Plan was amended to include awards for the directors, as well. The Plan allows for the issuance of restricted stock to executive officers and directors that are subject to a service period restriction. The Plan initially allowed for the issuance of up to 36,000 shares of restricted stock. An additional 36,000 shares were authorized in 2020.

Nonvested Shares	Shares			Weighted- Average Grant- Date Fair Value
Nonvested at January 1, 2022		23,388		$	24.07
Granted		8,454			24.14
Vested		(8,084	)		24.02
Nonvested at June 30, 2022		23,758		$	24.41

The fair value as of the date of the grant was $204,080, or $24.14 per share, and $234,581, or $24.75 per share, for awards granted in 2022 and 2021, respectively. At June 30, 2022 there was unrecognized compensation expense of $332,469 which will be fully recognized in 2022.

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NOTE 7 – COMMITMENTS AND CREDIT RISK

DBI and its subsidiaries are parties to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of their customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial position. The contract or notional amounts of those instruments reflect the extent of involvement DBI and its subsidiaries have in particular classes of financial instruments.

	Contract or
	Notional Amount		Secured
	June 30, 2022		Portion
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	119,787,693	$	118,921,585
Standby letters of credit and financial guarantees written		1,124,370		1,124,370

	Contract or
	Notional Amount		Secured
	December 31, 2021		Portion
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	121,732,704	$	120,836,384
Standby letters of credit and financial guarantees written		890,670		890,670

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. DBI and its subsidiaries evaluate each customer’s creditworthiness on a case-by-case basis. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. As of June 30, 2022, variable rate commitments totaled $76.6 million.

Standby letters of credit are conditional commitments issued by DSB to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support commercial business transactions. When a customer fails to perform according to the terms of the agreement, DSB honors drafts drawn by the third party in amounts up to the contract amount. A majority of the letters of credit expire within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial and residential properties. All letters of credit are secured.

NOTE 8 – RELATED PARTY TRANSACTIONS

At June 30, 2022 and December 31, 2021, certain DBI subsidiary executive officers, directors and companies in which they have a ten percent or more beneficial interest were indebted to DBI and its subsidiaries. Total indebtedness outstanding was $2.1 million and $2.4 million as of June 30, 2022 and December 31, 2021, respectively. All such loans were made in the ordinary course of business and at rates and terms similar to those granted to other borrowers.

	12/31/2021						6/30/2022
	Beginning		New				Ending
$(000)s	Balance		Loans		Payments		Balance
Aggregate related party loans	$	2,444	$	4,375	$	4,743	$	2,076

	12/31/2020						12/31/2021
	Beginning		New				Ending
$(000)s	Balance		Loans		Payments		Balance
Aggregate related party loans	$	2,797	$	2,635	$	2,988	$	2,444

Deposit balances with DBI’s executive officers, directors and affiliated companies in which they are principal owners were $13.9 million and $12.5 million at June 30, 2022 and December 31, 2021, respectively.

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NOTE 9 – FAIR VALUE MEASUREMENT

Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in a transaction between market participants on the measurement date. Some assets and liabilities are measured on a recurring basis while others are measured on a non-recurring basis, as required by U.S. GAAP, which also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. The three levels of inputs defined in the standard that may be used to measure fair value are as follows:

•                Level 1: Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•               Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data.

•                Level 3: Significant unobservable inputs that are supported by little, if any, market activity. These unobservable inputs reflect estimates that market participants would use in pricing the assets or liability.

In instances whereby inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. DBI’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset and liability.

It is DBI’s policy to recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers during the first six months of 2022 or the year ended December 31, 2021.

Assets Recorded at Fair Value on a Recurring Basis

Investment securities available for sale are recorded at fair value on a recurring basis. The fair value measurement of most of DBI’s AFS securities is currently determined by an independent provider using Level 2 inputs. The measurement is based upon quoted prices for similar assets, if available. If quoted prices are not available, fair values are measured using matrix pricing models, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curves, prepayment speed and default rates.

Assets measured at fair value on a recurring basis, are summarized in the table below:

	June 30, 2022
	Fair Value Measurements Using
Description	Level 1		Level 2		Level 3		Fair Value
U.S. Government Treasuries	$	0	$	6,749,199	$	0	$	6,749,199
U.S. Government-sponsored agency MBS		0		10,592,498		0		10,592,498
State and local governments		0		11,461,255		0		11,461,255
Asset-backed securities		0		728,005		0		728,005
Total securities available for sale	$	0	$	29,530,957	$	0	$	29,530,957

	December 31, 2021
	Fair Value Measurements Using
Description	Level 1		Level 2		Level 3		Fair Value
U.S. Government Treasuries	$	0	$	7,333,222	$	0	$	7,333,222
U.S. Government-sponsored agency MBS		0		12,920,055		0		12,920,055
State and local governments		0		15,399,015		0		15,399,015
Asset-backed securities		0		810,158		0		810,158
Total securities available for sale	$	0	$	36,462,450	$	0	$	36,462,450

15

Assets Recorded at Fair Value on a Nonrecurring Basis

Other investments do not have readily determinable fair values. DBI carries the securities at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the security by the same investee. When an observable price change in an orderly transaction occurs during the year, the investment is classified as nonrecurring Level 1 within the valuation hierarchy.

A loan is considered impaired when, based on current information or events, it is probable that not all amounts due will be collected according to the contractual terms of the loan agreement. Impairment is measured based on the fair value of the underlying collateral. The collateral value is determined based on appraisals and other market valuations for similar assets. The value of impaired loans is typically 65% - 80% of appraised value. Under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” the fair value of impaired loans is reported before selling costs of the related collateral, while FASB ASC Topic 310, “Receivables,” requires that impaired loans be reported on the balance sheet net of estimated selling costs. Therefore, significant estimated selling costs would result in the reported fair value of impaired loans being greater than the measurement value of impaired loans as maintained on the balance sheet. In most instances, selling costs were estimated for real estate-secured collateral and included broker commissions, legal and title transfer fees and closing costs. Given the valuation technique and significant unobservable inputs utilized to determine the fair value, impaired loans are classified as nonrecurring Level 3 assets.

There were no assets measured at fair value on a nonrecurring basis as of June 30, 2022. Assets measured at fair value on a nonrecurring basis as of December 31, 2021, are summarized in the following table:

	December 31, 2021
	Fair Value Measurements Using
Description	Level 1		Level 2		Level 3		Fair Value
Other investments	$	416,249	$	0	$	0	$	416,249
Impaired loans		0		0		200		200
Total Assets	$	416,249	$	0	$	200	$	416,449

The tables below summarize fair value of financial assets and liabilities at June 30, 2022 and December 31, 2021.

	June 30, 2022
	Carrying		Fair		Fair Value Hierarchy Level
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and federal funds sold	$	166,110,292	$	166,110,292	$	166,110,292	$	0	$	0
Investment securities		29,530,957		29,530,957		0		29,530,957		0
Loans, net of ALLL		457,852,846		455,524,854		0		0		455,524,854
Loans held for sale		65,496		65,496		0		65,496		0
Mortgage servicing rights		1,059,270		1,059,270		0		0		1,059,270
Other investments		3,079,177		3,079,177		0		0		3,079,177
Accrued interest receivable		1,176,719		1,176,719		0		1,176,719		0
TOTAL	$	658,874,757	$	656,546,765	$	166,110,292	$	30,773,172	$	459,663,301
Financial Liabilities
Deposits	$	609,416,396	$	607,347,906	$	514,204,033	$	93,143,873	$	0
Borrowings		864,874		856,658		0		856,658		0
Accrued interest payable		165,641		165,641		0		165,641		0
TOTAL	$	610,446,911	$	608,370,205	$	514,204,033	$	94,166,172	$	0

16

	December 31, 2021
	Carrying		Fair		Fair Value Hierarchy Level
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and federal funds sold	$	151,155,222	$	151,155,222	$	151,155,222	$	0	$	0
Investment securities		36,462,450		36,462,450		0		36,462,450		0
Loans, net of ALLL		471,315,561		471,310,578		0		0		471,310,578
Loans held for sale		82,401		84,960		0		84,960		0
Mortgage servicing rights		1,083,140		1,083,140		0		0		1,083,140
Other investments		3,724,977		3,724,977		416,249		0		3,308,728
Accrued interest receivable		1,304,890		1,304,890		0		1,304,890		0
TOTAL	$	665,128,641	$	665,126,217	$	151,571,471	$	37,852,300	$	475,702,446
Financial Liabilities
Deposits	$	614,497,253	$	615,925,949	$	507,346,558	$	108,579,391	$	0
Borrowings		932,844		963,151		0		963,151		0
Accrued interest payable		166,199		166,199		0		166,199		0
TOTAL	$	615,596,296	$	617,055,299	$	507,346,558	$	109,708,741	$	0

NOTE 10 – REGULATORY MATTERS

DSB is subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on DSB’s financial statements. Under capital adequacy guidelines and regulatory framework for prompt corrective action, DSB must meet specific capital guidelines that involve quantitative measures of DSB’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. DSB’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require DSB to maintain minimum amounts and ratios (set forth in the table below) of Tier 1 and Total capital to risk-weighted assets and of Tier 1 capital to average assets. In addition, DSB is also required to maintain minimum amounts and ratios of Common Equity Tier 1 capital to risk-weighted assets. It is management’s opinion, as of December 31, 2020, that DSB meets all applicable capital adequacy requirements. DBI will be subject to the same minimum amounts and ratios as DSB once total assets exceed $3 billion.

As of December 31, 2020, the most recent notification from the Federal Deposit Insurance Corporation categorized DSB as well-capitalized under the regulatory framework for prompt corrective action. To be categorized well-capitalized DSB must maintain minimum total risk-based, tier 1 risk-based and tier 1 leverage ratios as set forth in the table below. These tables do not include the 2.5 percent capital conservation buffer requirement. A Bank with a capital conservation buffer greater than 2.5 percent of risk-weighted assets would not be restricted by payout limitations. However, if the 2.5 percent threshold is not met, the Bank would be subject to increased limitations on capital distributions and discretionary bonus payments to executive officers as the capital conservation buffer approaches zero. Capital ratios for DBI are provided for information purposes only as there are no regulatory capital requirements for the holding company.

17

											To Be Well Capitalized
											Under Prompt
						Minimum For Capital					Corrective
	Amount					Adequacy Purposes:					Action Provision:
As of June 30, 2022	Amount		Ratio			Amount		Ratio			Amount		Ratio
Denmark Bancshares, Inc.
Total Capital (to Risk-Weighted Assets)	$	75,473,463		15.0	%		N/A		N/A			N/A		N/A
Tier 1 Capital (to Risk-Weighted Assets)	$	69,179,777		13.8	%		N/A		N/A			N/A		N/A
Tier 1 Capital (to Average Assets)*	$	69,179,777		10.2	%		N/A		N/A			N/A		N/A
Denmark State Bank
Common Equity Tier 1 Capital (to Risk-Weighted Assets)	$	63,150,751		13.2	%	$	21,608,053		>4.5	%	$	31,211,632		>6.5	%
Total Capital (to Risk-Weighted Assets)	$	69,174,230		14.4	%	$	38,414,316		>8.0	%	$	48,017,896		>10.0	%
Tier 1 Capital (to Risk-Weighted Assets)	$	63,150,751		13.2	%	$	28,810,737		>6.0	%	$	38,414,316		>8.0	%
Tier 1 Capital (to Average Assets)*	$	63,150,751		9.3	%	$	27,057,905		>4.0	%	$	33,822,381		>5.0	%
As of December 31, 2021
Denmark Bancshares, Inc.
Total Capital (to Risk-Weighted Assets)	$	74,162,766		14.6	%		N/A		N/A			N/A		N/A
Tier 1 Capital (to Risk-Weighted Assets)	$	67,804,105		13.4	%		N/A		N/A			N/A		N/A
Tier 1 Capital (to Average Assets)*	$	67,804,105		10.2	%		N/A		N/A			N/A		N/A
Denmark State Bank
Common Equity Tier 1 Capital (to Risk-Weighted Assets)	$	60,433,556		12.4	%	$	21,951,716		>4.5	%	$	31,708,035		>6.5	%
Total Capital (to Risk-Weighted Assets)	$	66,551,543		13.6	%	$	39,025,273		>8.0	%	$	48,781,592		>10.0	%
Tier 1 Capital (to Risk-Weighted Assets)	$	60,433,556		12.4	%	$	29,268,955		>6.0	%	$	39,025,273		>8.0	%
Tier 1 Capital (to Average Assets)*	$	60,433,556		9.1	%	$	26,659,975		>4.0	%	$	33,324,969		>5.0	%

*Average assets are based on the most recent quarter’s adjusted average total assets.

Wisconsin law provides that state chartered banks may declare and pay dividends out of undivided profits but only after provision has been made for all expenses, losses, required reserves, taxes and interest accrued or due from the bank. Payment of dividends in some circumstances may require the written consent of the Wisconsin Department of Financial Institutions –Division of Banking (“WDFI”).

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