Farmers and Merchants Bancshares issues $12.5M of 7.875% Subordinated Notes due 2035

Farmers & Merchants Bancshares, Inc.

Issued $12.5M aggregate principal of 7.875% Fixed-to-Floating Rate Subordinated Notes due Sept 25, 2035.
Net proceeds to repay ~$10M Term Note owed to First Horizon Bank (orig. $17M) plus general corporate purposes.
Fixed rate 7.875% until Sept 2030, then floats at 3-month SOFR + 458 bps; qualifies as Tier 2 capital.
Subordinated, unsecured, not guaranteed by subsidiary bank; redeemable at par after Sept 2030 subject to Fed approval.
Private placement under Rule 506(b); no sinking fund, no conversion, no holder redemption.

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