Exhibit 99.1

FOR IMMEDIATE RELEASE	FOR FURTHER INFORMATION CONTACT:
October 22, 2019
Farmers and Merchants Bancshares, Inc.	Contact:	Mr. James R. Bosley, Jr.
4510 Lower Beckleysville Rd, Suite H		President
Hampstead, Maryland 21074		(410) 374-1510, ext.104

FARMERS AND MERCHANTS BANCSHARES, INC. REPORTS EARNINGS OF $1.19 PER SHARE FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

HAMPSTEAD, MARYLAND (October 22, 2019) – Farmers and Merchants Bancshares, Inc. (the “Company”), the parent of Farmers and Merchants Bank (the “Bank”), announced that net income for the nine months ended September 30, 2019 was $3,500,018, or $1.19 per common share, compared to $3,575,871, or $1.22 per common share, for the same period in 2018. The Company’s return on average equity during the nine months ended September 30, 2019 was 9.84% compared to 11.02% for the same period in 2018. The Company’s return on average assets during the nine months ended September 30, 2019 was 1.09% compared to 1.16% for the same period in 2018.

On September 16, 2019, the Board of Directors of the Company declared a 75% stock dividend payable on October 31, 2019. All per share information has been adjusted to give effect to that stock dividend.

Net interest income for the nine months ended September 30, 2019 was $164,404 lower than for the same period in 2018 due to a decline in the taxable equivalent net yield on interest earning assets to 3.69% in the 2019 period from 3.88% in the 2018 period, offset by a $14.7 increase in interest earning assets to $409.8 million for the nine months ended September 30, 2019 as compared to $395.1 million for the same period in 2018. Despite the recent Federal Reserve rate cuts, the net yield continues to decline as our cost of deposits and borrowings have increased 36 basis points to 1.14% for the nine months ended September 30, 2019 from 0.78% for the same period in 2018 while the yield on loans and investments has increased only 10 basis points to 4.58% for the nine months ended September 30, 2019 from 4.48% for the same in 2018.

Noninterest income increased by $204,565 in the nine months ended September 30, 2019 when compared to the same period in 2018 primarily as a result of a $75,710 increase in gains on the sale of SBA loans and a $200,567 increase in bank owned life insurance income due to proceeds received from a policy, offset by a $154,800 write-down of other real estate owned (“OREO”) that was required by law due to the length of time that the OREO has been held. Noninterest expense was $192,180 higher in the nine months ended September 30, 2019 when compared to the same period in 2018 due primarily to usual salary increases of $101,027, an increase in occupancy costs of $59,118, and an increase in other expenses of $57,769. Income taxes declined by $51,166 during the nine months ended September 30, 2019 when compared to the same period in 2018 due to lower income before taxes and a higher percentage of tax exempt revenue.

Net income for the three months ended September 30, 2019 was $1,177,910, or $0.40 per common share, compared to $1,308,688, or $0.45 per common share, for the same period in 2018. The decrease of $130,778 was due to a decrease in net interest income after provision for loan losses of $185,571 and an increase in noninterest expenses of $85,868, offset by an increase in other income of $120,547 and a decrease in income taxes of $20,114.

Total assets increased to $435 million at September 30, 2019 from $417 million at December 31, 2018. Loans decreased to $337 million at September 30, 2019 from $341 million at December 31, 2018. Investment in debt securities increased to $60 million at September 30, 2019 from $45 million at December 31, 2018. Deposits increased to $372 million at September 30, 2019 from $355 million at December 31, 2018. The book value of the common stock of Farmers and Merchants Bancshares, Inc. was $16.56 per share at September 30, 2019, compared to $15.41 per share at December 31, 2018.

James R. Bosley, Jr., President and CEO, commented “As we celebrate the 100 year anniversary of the Bank on October 24th, we would like to thank those who made it possible: our customers, shareholders, employees, and directors. Our 2019 earnings continue to be strong and are just slightly behind 2018’s all-time record pace despite the downward pressure on our net interest margin. We are hopeful that the recent and projected Federal Reserve rate cuts will improve our net yield in the near future.”

About the Company

Farmers and Merchants Bancshares, Inc. is a financial holding company and the parent of Farmers and Merchants Bank. The Bank was chartered in Maryland in 1919, and is currently celebrating 100 years of service to the community. The Bank serves the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30 and Route 795 corridors from Owings Mills, Maryland to the Pennsylvania State line. The main office is located in Upperco, Maryland, with seven additional branches in Owings Mills, Hampstead, Greenmount, Reisterstown, and Westminster. Certain broker-dealers make a market in the common stock of Farmers and Merchants Bancshares, Inc., and trades are reported through the OTC Markets Group’s Pink Market under the symbol “FMFG”.

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “will,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Farmers and Merchants Bancshares, Inc. with the Securities and Exchange Commission entitled “Risk Factors”.

Farmers and Merchants Bancshares, Inc. and Subsidiaries

Consolidated Balance Sheets

	September 30,		December 31,
	2019		2018
	(Unaudited)
Assets
Cash and due from banks	$	16,281,158	$	11,480,608
Federal funds sold and other interest-bearing deposits		3,313,899		3,137,629
Cash and cash equivalents		19,595,057		14,618,237
Certificate of deposit in other bank		100,000		100,000
Securities available for sale		40,101,155		26,591,991
Securities held to maturity		19,509,907		18,127,067
Equity security at fair value		531,714		503,827
Federal Home Loan Bank stock, at cost		503,700		575,800
Mortgage loans held for sale		1,538,574		573,638
Loans, less allowance for loan losses of $2,546,115 and 2,509,334		336,748,866		340,900,635
Premises and equipment		4,913,640		5,075,310
Accrued interest receivable		978,300		990,529
Deferred income taxes		950,207		1,179,454
Other real estate owned		-		210,150
Bank owned life insurance		7,102,589		7,053,354
Other assets		1,931,803		657,885
	$	434,505,512	$	417,157,877
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing	$	58,298,592	$	62,717,520
Interest-bearing		313,897,923		291,995,483
Total deposits		372,196,515		354,713,003
Securities sold under repurchase agreements		7,583,212		11,012,000
Federal Home Loan Bank of Atlanta advances		1,000,000		3,000,000
Accrued interest payable		348,862		311,489
Other liabilities		4,382,403		2,726,678
		385,510,992		371,763,170
Stockholders' equity
Common stock, par value $.01 per share, authorized 5,000,000 shares; issued and outstanding 2,959,411 shares in 2019 and 1,682,997 shares in 2018		29,594		16,830
Additional paid-in capital		27,561,138		27,324,794
Retained earnings		21,276,793		18,621,382
Accumulated other comprehensive income		126,995		(568,299	)
		48,994,520		45,394,707
	$	434,505,512	$	417,157,877

Farmers and Merchants Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Three Months Ended September 30,						Nine Month Ended September 30,
	2019			2018			2019			2018
Interest income
Loans, including fees	$	4,250,071		$	4,189,626		$	12,582,392		$	12,171,765
Investment securities - taxable		234,274			145,791			631,382			450,649
Investment securities - tax exempt		150,141			142,493			431,354			428,055
Federal funds sold and other interest earning assets		84,526			47,280			280,876			117,973
Total interest income		4,719,012			4,525,190			13,926,004			13,168,442
Interest expense
Deposits		916,452			604,697			2,577,229			1,543,023
Securities sold under repurchase agreements		29,190			42,841			82,912			112,242
Federal Home Loan Bank advances and other borrowings		10,769			16,480			42,517			125,427
Total interest expense		956,411			664,018			2,702,658			1,780,692
Net interest income		3,762,601			3,861,172			11,223,346			11,387,750
Provision for loan losses		(13,000	)		(100,000	)		-			25,000
Net interest income after provision for loan losses		3,775,601			3,961,172			11,223,346			11,362,750
Noninterest income
Service charges on deposit accounts		176,577			160,665			494,752			496,393
Mortgage banking income		144,268			105,144			249,867			219,805
Bank owned life insurance income		39,443			40,880			321,841			121,274
Unrealized gain (loss) on equity security		3,966			(3,869	)		18,721			(15,348	)
Write down of other real estate owned		-			(55,350	)		(210,150	)		(55,350	)
Gain on sale of SBA loans		-			3,317			139,535			63,825
Other fees and commissions		28,714			21,634			94,031			73,433
Total noninterest income		392,968			272,421			1,108,597			904,032
Noninterest expense
Salaries		1,358,208			1,344,759			3,993,998			3,892,971
Employee benefits		312,119			328,258			1,008,228			1,018,280
Occupancy		189,603			168,759			594,566			535,448
Furniture and equipment		149,191			148,945			460,271			475,953
Other		673,814			606,346			1,990,354			1,932,585
Total noninterest expense		2,682,935			2,597,067			8,047,417			7,855,237
Income before income taxes		1,485,634			1,636,526			4,284,526			4,411,545
Income taxes		307,724			327,838			784,508			835,674
Net income	$	1,177,910		$	1,308,688		$	3,500,018		$	3,575,871
Earnings per share - basic and diluted	$	0.40		$	0.45		$	1.19		$	1.22