Company: FMFG
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001437749-25-007333
Chunk: 22

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1
Chunk 22
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 on the success and growth of the Bank and any other subsidiary that it operates.

We could be adversely affected by risks associated with future acquisitions and expansions.

Although our core growth strategy has historically focused around organic growth, we may from time to time consider acquisition and expansion opportunities involving a bank or other entity operating in the financial services industry. We cannot predict if or when we will engage in strategic transactions, or the nature or terms of any such transactions. To the extent that we grow through an acquisition, we cannot assure investors that we will be able to adequately and profitably manage that growth or that an acquired business will be integrated into our existing businesses as efficiently or as timely as we may anticipate. Acquiring another business would generally involve risks commonly associated with acquisitions, including:

  increased capital needs;  
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  increased and new regulatory and compliance requirements;  
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  implementation or remediation of controls, procedures and policies with respect to the acquired business;  

  diversion of management time and focus from operation of our then-existing business to acquisition-integration challenges;  

  coordination of product, sales, marketing and program and systems management functions;  

  transition of the acquired business’s users and customers onto our systems;  

  retention of employees from the acquired business;  

  integration of employees from the acquired business into our organization;  

  integration of the acquired business’s accounting, information management, human resources and other administrative systems and operations with ours;  

  potential liability for activities of the acquired business prior to the acquisition, including violations of law, commercial disputes and tax and other known and unknown liabilities;  

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  potential increased litigation or other claims in connection with the acquired business, including claims brought by regulators, terminated employees, customers, former stockholders, vendors, o...  

  potential goodwill impairment.  

If we were to pursue or consummate an acquisition, then our failure to execute on our acquisition strategy could adversely affect our business, results of operations, financial condition and future prospects risks of unknown or contingent liabilities.

The majority of our business is concentrated in Maryland, much of which involves real estate lending, so a decline in the real estate and credit markets could materially and adversely impact our financial condition and results of operations.

Most of the Bank’s loans are made to borrowers located in Maryland, and many of these loans, including construction and land development loans, are secured by real estate. Accordingly, a decline in local economic conditions would likely have an adverse impact on our financial