Farmers & Merchants Bancshares Business Summary

Farmers & Merchants Bancshares, Inc. (FMFG) operates as a bank holding company for Farmers and Merchants Bank, a community-focused financial institution that generates revenue primarily through net interest income from a diversified loan portfolio and non-interest income from service fees. The company’s primary business segments include Commercial Banking, which provides small-to-medium enterprise (SME) financing and SBA/USDA-backed loans; Retail Banking, offering residential mortgages and consumer deposit products; and Agricultural Lending, supporting the local farming community in Northern Maryland. FMFG competes directly with regional peers such as Shore Bancshares, Inc. (SHBI), Sandy Spring Bancorp, Inc. (SASR), and First United Corporation (FUNC). Within this landscape, FMFG positions itself as a high-touch community pillar, leveraging its localized decision-making and century-long presence in Carroll and Northern Baltimore counties to maintain a competitive advantage over larger, more centralized institutions. Leadership is currently spearheaded by President and CEO Gary A. Harris, a veteran of the bank since 2008 who previously served as Chief Lending Officer and has been instrumental in the firm's organic loan growth. The executive team was further strengthened in mid-2025 with the appointment of Paul B. Susie as Chief Financial Officer; Susie brings extensive regional pedigree from his former roles as CFO at Severn Bancorp and First Mariner Bancorp. The Board of Directors is chaired by Ronald W. Hux, a prominent Maryland business owner and developer who has served on the board since 2006. Founded in 1919, the company remains a publicly traded entity (OTC: FMFG) with a shareholder base that prioritizes its long-standing history of dividend payments and conservative capital management, as evidenced by its 2025 year-end report of $872 million in total assets and record net income of $5.8 million.