Exhibit 99.1

FARMERS AND MERCHANTS BANCSHARES, INC. REPORTS RECORD FIRST

QUARTER EARNINGS OF $0.67 PER SHARE

UPPERCO, MARYLAND (April 23, 2018) – Farmers and Merchants Bancshares, Inc. (the “Company”), the parent of Farmers and Merchants Bank (the “Bank”), announced that net income for the three months ended March 31, 2018 was $1,122,118 or $0.67 per share compared to $983,557 or $0.59 per share for the same period in 2017, an increase in earnings of $138,561 or 14%. This is the highest first quarter net income in the history of the Company.

Net interest income for the three months ended March 31, 2018 was $131,086 higher than the same period last year due to a $24 million increase in average interest-earning assets offset by a decline in the taxable equivalent net yield on interest earning assets to 3.87% from 4.03%. Non interest income increased by $37,236 primarily as a result of the gain on the sale of an SBA loan. Noninterest expense increased by $126,022 in the first quarter of 2018 compared to the same period last year due to usual salary increases and higher employee benefit costs. Income taxes were $96,261 lower in the quarter ended March 31, 2018 compared to the same quarter in 2017 due to the lower federal tax rate as a result of the Tax Cuts and Jobs Act enacted in December 2017.

The Company’s return on average equity during the first quarter of 2018 was 10.58% compared to 9.96% during the first quarter of 2017. The Company’s return on average assets was 1.11% in 2018 compared to 1.02% during the same period last year.

Total assets at March 31, 2018 were $411 million, an increase of $8 million from the $403 million recorded at December 31, 2017. The loan portfolio increased $4 million to $337 million at March 31, 2018 from $333 million at December 31, 2017. Deposits increased $14 million to $334 million at March 31, 2018 from $320 million at the end of 2017. The book value of the common stock of the Company was $25.60 per share at March 31, 2018, compared to $25.06 per share at the end of 2017.

James R. Bosley, Jr., President and CEO, commented “We are pleased that 2018 has started with increased earnings despite continuing pressure on our interest margin. Our core earnings are higher as a result of the continued growth of our high quality loan portfolio and effective management of our overhead expenses. In addition, we are already benefiting from the lower federal income tax rate.”

About the Company

The Company is a registered bank holding company and the parent of the Bank. The Bank was chartered in Maryland in 1919, and is currently celebrating over 98 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 six additional branches in Owings Mills, Hampstead, Greenmount, Reisterstown, and Westminster. Certain broker-dealers make a market in the Company’s common stock, 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 the Company with the Securities and Exchange Commission entitled “Risk Factors”.

Farmers and Merchants Bancshares, Inc. and Subsidiaries

Consolidated Balance Sheets

Farmers and Merchants Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)