Management Change/Compensation (Form 8-K)

On June 30, 2025, Mark C. Krebs retired as the Treasurer and Chief Financial Officer of Farmers and Merchants Bancshares, Inc. (the "Company") and as Executive Vice President - Chief Financial Officer of the Company's bank subsidiary, Farmers and Merchants Bank (the Bank").

Effective July 1, 2025, the Boards of Directors of the Company and the Bank appointed Paul B. Susie to serve as the Company's Treasurer and Chief Financial Officer and the Bank's Executive Vice President - Chief Financial Officer, respectively (collectively, the "CFO").

Mr. Susie has served as the Senior Vice President - Chief Accounting Officer of the Bank since December 2, 2024. Prior to his employment with the Bank, Mr. Susie most recently served as Vice President of Accounting for Eastern Savings Bank from August 2021 to November 2024 and as an independent consultant from June 2019 to August 2021. Between July 2016 and June 2019, Mr. Susie served as the Executive Vice President and Chief Financial Officer of Severn Bancorp, Inc. and Severn Savings Bank. From August 2014 to July 2016, he served as the Senior Vice President and Chief Financial Officer of Hopkins Federal Savings Bank. From June 2009 to July 2014, Mr. Susie was Senior Vice President and Chief Financial Officer of First Mariner Bancorp, Inc. and First Mariner Bank. Mr. Susie is a graduate of the University of Baltimore and is a Certified Public Accountant.

In connection with his appointment as the CFO, Mr. Susie will be entitled to an annual base salary of $210,000 and to participate in the Bank's bonus program for certain designated executive officers, which is described in the section of the Company's definitive proxy statement on Schedule 14A for the 2025 annual meeting of stockholders, filed with the Securities and Exchange Commission on March 13, 2025, entitled "Executive Compensation - Bonus Program", which description is incorporated herein by reference.

Since the beginning of the Company's fiscal year ended December 31, 2023, neither the Company nor any of its subsidiaries has engaged in any transaction with Mr. Susie or any of his affiliates for which disclosure would be required pursuant to Item 404(a) of Regulation S-K, and no such transaction is currently proposed for the remainder of the fiscal year ending December 31, 2025.