Exhibit 99.1

FARMERS AND MERCHANTS BANCSHARES, INC. REPORTS RECORD EARNINGS FOR NINE MONTHS AND QUARTER ENDED SEPTEMBER 30, 2018

HAMPSTEAD, MARYLAND (October 23, 2018) – 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, 2018 was $3,575,871, or $2.14 per common share, compared to $3,132,902, or $1.89 per common share, for the same period in 2017. This is the highest net income for the first nine months of any year in the Company’s history. The Company’s return on average equity during the nine months ended September 30, 2018 was 11.02% compared to 10.29% during the same period in 2017. The Company’s return on average assets was 1.16% for the first nine months of 2018 compared to 1.06% for the same period of 2017.

Net interest income for the nine months ended September 30, 2018 was $298,497 higher than for the same period last year due to a $21 million increase in average interest earning assets, offset by a decline in the taxable equivalent net yield on interest earning assets to 3.84% for the first nine months of 2018 from 3.95% for the same period of 2017. The net yield continues to decline as deposit rates have risen more quickly than yields on loans and investments. The provision for loan losses was $325,000 less than for the same period last year due primarily to the recovery of a 2017 loan charge-off. Noninterest income decreased by $233,742 primarily as a result of $153,738 lower gain on the sale of SBA loans, a decrease of $28,714 in service charges, and a $55,350 write-down of a real estate owned property. Noninterest expense was $277,274 higher in the nine months ended September 30, 2018 than in the same period last year due to usual salary increases and higher employee benefit costs. Income taxes declined by $330,488 for the nine months ended September 30, 2018 when compared to the same period of 2017 due to the lower federal tax rate as a result of the Tax Cuts and Jobs Act enacted in December 2017.

Net income for the three months ended September 30, 2018 was a quarterly record of $1,308,688, or $0.78 per common share, compared to $1,014,456, or $0.69 per common share, for the same period in 2017.

Total assets of $412 million at September 30, 2018 increased from $403 million at December 31, 2017. Loans increased to $341 million at September 30, 2018 compared to $333 million at December 31, 2017. Deposits increased to $350 million at September 30, 2018 compared to $320 million at December 31, 2017. The book value of the Company’s common stock was $26.59 per share at September 30, 2018, compared to $25.06 per share at December 31, 2017.

James R. Bosley, Jr., President and CEO, commented “We are pleased to announce record net income for the quarter and year to date, despite rising funding costs and downward pressure on our net interest margin.”

About the Company

Farmers and Merchants Bancshares, Inc. is a financial holding company and the parent of Farmers and Merchants Bank. Farmers and Merchants 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 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 NASDAQ’s Over-The-Counter Bulletin Board under the symbol “FMFG.OB.

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

Farmers and Merchants Bancshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)