Farmers & Merchants Bancshares, Inc.

General Farmers and Merchants Bancshares, Inc. is a Maryland corporation chartered on August 8, 2016, operating as a bank holding company registered with the Federal Reserve. The company also elected to become a financial holding company, allowing it to engage in additional activities and control entities beyond those permissible for a standard bank holding company. Effective November 1, 2016, the company completed a reorganization where Farmers and Merchants Bank became its wholly-owned subsidiary. On October 1, 2020, the company acquired Carroll Bancorp, Inc. and its wholly-owned subsidiary, Carroll Community Bank. In this merger, each of the 1,146,913 outstanding shares of Carroll Common Stock was converted into the right to receive $21.63 in cash. The company funded this acquisition with $7.8 million in cash and a $17.0 million term loan from a third party. The company's primary business activities include serving as the parent company of Farmers and Merchants Bank and holding a series investment in First Community Bankers Insurance Co., LLC (FCBI). The company owns 100% of "Series Protected Cell FCB-4," a protected cell captive insurance company under Tennessee law, referred to as the Insurance Subsidiary.