Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 39

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 39
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CL, the Company has purchased and maintains insurance on behalf of its directors and officers against any liability asserted against such directors and officers in their capacities as such, whether or not the Company would have the power to indemnify such persons under the provisions of Maryland law governing indemnification.

Section 8(k) of the Federal Deposit Insurance Act (the “FDI Act”) provides that the Federal Deposit Insurance Corporation (the “FDIC”) may prohibit or limit, by regulation or order, payments by any insured depository institution or its holding company for the benefit of directors and officers of the insured depository institution, or others who are or were “institution-affiliated parties,” as defined under the FDI Act, to pay or reimburse such person for any liability or legal expense sustained with regard to any administrative or civil enforcement action which results in a final order against the person. The FDIC has adopted regulations prohibiting, subject to certain exceptions, insured depository institutions, their subsidiaries and affiliated holding companies from indemnifying officers, directors or employees for any civil money penalty or judgment resulting from an administrative or civil enforcement action commenced by any federal banking agency, or for that portion of the costs sustained with regard to such an action that results in a final order or settlement that is adverse to the director, officer or employee.

Item 15. Recent Sales of Unregistered Securities

Until the Company’s payment on December 17, 2024 of a cash dividend on outstanding shares of its common stock, the Company maintained a prior dividend reinvestment plan that was substantially similar to the Dividend Reinvestment Plan that is the subject of this Registration Statement (the “Prior Plan”). The shares available under the Prior Plan were registered under the Securities Act of 1933 on a Registration Statement on Form S-1 (File No. 333-217918) that was initially declared effective by the Securities and Exchange Commission on June 1, 2017 (the “Prior Registration Statement”). In May 2025, the Company discovered that inadvertently sold and issued 2,407 shares of common stock to 279 participants in the Prior Plan at a sales price of $14.221 per share in connection with the reinvestment of their cash dividends paid on December 17, 2024, which shares were not registered under the Securities Act of 1933 pursuant to the Prior Registration Statement.

Other than as set forth above, the Company did not sell any securities that were not registered under the Securities Act of 1933 during the three years immediately preceding the date of this Registration Statement.