Company: FMFG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017235
Chunk: 12

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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  Amount outstanding at period-end:                                                                     
  Securities sold under repurchase agreements      $              5,482       $                  5,564  
  Federal Home Loan Bank advances                                 -                              5,000  
  Long-term debt (net of issuance costs)                          10,858                        11,329  
  Average rate at period-end:                                                                           
  Securites sold under repurchase agreements                      1.25                            1.25  
  Federal Home Loan Bank advances                                 -                               1.00  
  Long-term debt                                                  4.10                            4.10  

The Bank is approved to borrow75% of eligible pledged single-family residential loans and50% of eligible pledged commercial loans as well as investment securities, or approximately $70.1million under a secured line of credit with the FHLB. The Bank also has a facility with the Reserve Bank, which has been in place for over 10 years and is collateralized by loans. Under this facility, the Bank can borrow approximately $41.3million. Additionally, the Bank has $23.5million ($14.5million unsecured and $9.0million secured) of overnight federal funds lines of credit available from commercial banks.

FHLB advances of $0and $5,000,000were outstanding as of March 31, 2025 and December 31, 2024, respectively. The Company borrowed $17.0million to facilitate the Merger in 2020. There were noborrowings from the Reserve Bank or our commercial bank lenders at March 31, 2025 or December 31, 2024.

  12.      Stock-Based Compensation  
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On November 22, 2023, the Board of Directors approved the Farmers and Merchants Bancshares, Inc. 2023 Equity Compensation Plan (the “ Equity Plan”). The Equity Plan allows the Board of Directors or its Compensation Committee to grant awards that may be payable in shares of common stock or the cash equivalent thereof.

The Company complies with the provisions of ASC Topic 718, Compensation-Stock Compensation, in measuring and disclosing stock compensation cost. The measurement objective in ASC Paragraph 718-10-30-6 requires public companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The cost is recognized in expense over the period in which an employee is required to