Company: FMFG
Filing Date: 2025-09-25
Form Type: 8-K
Source: 0001437749-25-029881
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Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-09-25
Form: 8-K
Item: Item 1.01
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Item 1.01.      Entry into Material Definitive Agreement.  

On September 25, 2025, Farmers and Merchants Bancshares, Inc. (the “ Company”) entered into a Subordinated Note Purchase Agreement (the “ Purchase Agreement”) pursuant to which the Company issued and sold $12,500,000 million in aggregate principal amount of its 7.875% Fixed to Floating Rate Subordinated Notes due September 25, 2035 (the “ Notes”). The Notes were issued by the Company at a price equal to 100% of their face amounts. The Company intends to use the net proceeds from the offering to repay the outstanding balance of approximately $10,019,442 due under that certain Term Note, dated as of September 30, 2020, issued by the Company to First Horizon Bank in the original principal amount of $17,000,000 and for general corporate purposes. The Purchase Agreement contains customary representations, warranties, and covenants made by the Company, on the one hand, and the several purchasers party thereto, severally and not jointly, on the other hand.

The Notes have stated maturity dates of September 25, 2035 (the “ Maturity Date”). From and including the original issue date of the Notes (the “ Issue Date”) to but excluding September 26, 2030 or the date of earlier redemption, the Company will pay interest on the Notes semi-annually in arrears on March 26thand September 26thof each year at a fixed interest rate of 7.875% per annum, computed on the basis of a 360-day year consisting of twelve 30-day months, beginning on March 26, 2026. From and including September 26, 2030, to, but excluding, the Maturity Date or the date of earlier redemption (the “ Floating Rate Period”), the Company will pay interest on the Notes at a floating interest rate at the Three-Month Term SOFR (as defined in the Notes), reset quarterly, plus 458 basis points, computed on the basis of a 360-day year and the actual number of days elapsed. During the Floating Rate Period, the Company will pay interest on the Notes quarterly in arrears on March 26th, June 26th, September 26th, and December 26thof each year, beginning on December 26, 2030. Notwithstanding the foregoing, if the Three-Month Term SOFR rate is less