Company Overview of Farmers and Merchants Bank, Inc.

On January 26, 2018, Farmers and Merchants Bancshares, Inc. announced that its board of directors and the board of its wholly-owned subsidiary, Farmers and Merchants Bank (the “Bank”), elected Mrs. Louna S. Primm to serve as a director on these boards effective February 20, 2018. The boards anticipate that Mrs. Primm will be appointed to serve on their loan committee. Mrs. Primm has 52 years of banking experience including 43 years in Senior and Executive management positions with Carroll County Bank, BB&T, and New Windsor State Bank where she retired in June of 2017 as Executive Vice President/Chief Lending Officer. Mrs. Primm has served on many non-profit boards including the Carroll Hospital Foundation, Carroll Hospice, Carroll Community College Foundation, and the Carroll County Chamber of Commerce. In 2015 she was presented the Lifetime Achievement Award by the Maryland Bankers Association Council of Professional Women. For her service, Mrs. Primm will be entitled to receive the same director compensation as that received by other non-employee directors, which is $675 in cash for each board meeting attended and $430 in cash for each committee meeting attended.