Farmers and Merchants Bank                       Contact: Mr. James R. Bosley, Jr.
15226 Hanover Pike                                    President
Upperco, Maryland 21155                          (410) 833-6600

FARMERS AND MERCHANTS BANK REPORTS
EARNINGS FOR THREE AND SIX MONTHS ENDED JUNE 30, 2008

UPPERCO, MARYLAND (August 14, 2008) – James R. Bosley, Jr., President and CEO of Farmers and Merchants Bank, announced that net income for the three months ended June 30, 2008 totaled $399,209, or $0.53 per share, compared to $452,117, or $0.61 per share, for the same period in 2007. Net income for the six months ended June 30, 2008 was $634,032, or $0.85 per share, compared to $859,411 or $1.15 per share for the same period in 2007. The decreases for the three and six months ended June 30, 2008 versus the same periods in 2007 were primarily attributable to decreases in net interest income for the periods due to a lower yield on loans, resulting in a lower interest rate spread, higher provisions for loan losses and higher noninterest expenses. The reduction in loan yield primarily resulted from a lower interest rate environment as a result of Federal Reserve Board interest rate reductions in the last twelve months. Prime rate was 5.00% at June 30, 2008 compared to 8.25% at June 30, 2007. The Bank made provisions for loan losses of $55,000 and $105,000, respectively, in the three and six months ended June 30, 2008, respectively, versus $15,000 and $30,000, respectively, in the same periods of 2007.

Total assets increased to $174.6 million at June 30, 2008 from $173.2 million at December 31, 2007. Cash and federal funds sold decreased to $12.1 million at June 30, 2008 from $24.5 million at December 31, 2007. Total investments increased to $31.9 million at June 30, 2008 from $31.3 million at December 31, 2007. Loans receivable and loans held for sale increased to $118.5 million at June 30, 2008 from $104.8 million at December 31, 2007. Nonaccrual loans totaled $37,210 and $329,652 at June 30, 2008 and December 31, 2007, respectively. The Bank had $1.9 million in other real estate owned at June 30, 2008 versus $2.2 million at December 31, 2007. Total liabilities increased to $154.9 million at June 30, 2008 from $153.5 million at December 31, 2007. Deposits decreased to $142.8 million at June 30, 2008 from $143.5 million at December 31, 2007. Securities sold under repurchase agreements increased to $11.3 million at June 30, 2008 from $9.3 million at December 31, 2007. Stockholders’ equity increased to $19.8 million at June 30, 2008 from $19.7 million at December 31, 2007. The book value of the common stock of the Bank was $26.34 per share at June 30, 2008 based on 750,653.994 shares outstanding, compared to $26.28 per share at December 31, 2007 based on 749,743.897 shares outstanding.

In June 2008 the Bank paid a cash dividend of $0.49 per share. The cash dividend paid in June 2007 was $0.47 per share. During the year ended December 31, 2007 the Bank paid a total cash dividend of $0.95 per share.

The foregoing financial information is qualified in its entirety by the more detailed information contained in the Bank’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 that was filed with the Federal Deposit Insurance Corporation on August 13, 2007.

Farmers and Merchants Bank, chartered in Maryland in 1919, is a commercial bank serving the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30 and Route 795 corridors from Owings Mills, Maryland to the Pennsylvania State line. The main office is located in Upperco, Maryland, with six additional branches in Owings Mills, Hampstead, Greenmount and Reisterstown. Shares of the Bank’s common stock are traded through NASDAQ’s Over-The-Counter Bulletin Board under the symbol “FMFG.OB”

FOR IMMEDIATE RELEASE             FOR FURTHER INFORMATION CONTACT:
November 27, 2007

Farmers and Merchants Bank                Contact: Mr. James R. Bosley, Jr.
15226 Hanover Pike                                                President
Upperco, Maryland  21155                                     (410) 833-6600

FARMERS AND MERCHANTS BANK ANNOUNCES
SEMI-ANNUAL CASH DIVIDEND AND REPORTS
EARNINGS FOR THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007

UPPERCO, MARYLAND (November 27, 2007) – Farmers and Merchants Bank announced today the declaration of a semiannual cash dividend of $0.48 per share, which will be paid on December 19, 2007 to shareholders of record as of  the close of business on November 30, 2007. The Bank paid a cash dividend of $0.47 per share in June 2007. When combined with the cash dividend paid in June 2007 the Bank will have paid a total dividend of $0.95 per share in 2007.

James R. Bosley, Jr., President and CEO of Farmers and Merchants Bank, announced that net income for the three months ended September 30, 2007 totaled $433,490, or $0.58 per share, compared to $487,550, or $0.66 per share, for the same period in 2006. Net income for the nine months ended September 30, 2007 was $1,292,901, or $1.73 per share, compared to $1,558,041 or $2.11 per share for the same period in 2006. The decreases for the three and nine months ended September 30, 2007 versus the same periods in 2006 were primarily attributable to decreases in net interest income for the periods due to a higher cost of interest-bearing liabilities, resulting in a lower interest rate spread, and higher noninterest expenses. The decreases were also impacted by the Bank’s decision to make a $75,000 and a $105,000 provision for loan losses in the three and nine months ended September 30, 2007, respectively, versus $0 in the same periods of 2006.  

Total assets increased to $178.2 million at September 30, 2007 from $160.0 million at December 31, 2006. Cash and federal funds sold increased to $25.6 million at September 30, 2007 from $19.1 million at December 31, 2006. Total investments increased to $28.6 million at September 30, 2007 from $25.4 million at December 31, 2006. Loans outstanding increased to $112.2 million at September 30, 2007 from $105.2 million at December 31, 2006. Nonaccrual loans totaled $0.3 million and $1.3 million at September 30, 2007 and December 31, 2006, respectively. The Bank had $1.4 million in other real estate owned at September 30, 2007 versus $0 at December 31, 2006. Total liabilities increased to $158.3 million at September 30, 2007 from $141.2 million at December 31, 2006. Deposits increased to $148.4 million at September 30, 2007 from $126.7 million at December 31, 2006. Securities sold under repurchase agreements decreased to $9.2 million at September 30, 2007 from $14.0 million at December 31, 2006. Stockholders’ equity increased to $19.8 million at September 30, 2007 from $18.8 million at December 31, 2006. The book value of the common stock of the Bank was $26.49 per share at September 30, 2007 based on 749,214.631 shares outstanding, compared to $25.19 per share at December 31, 2006 based on 744,957.408 shares outstanding.

The foregoing financial information is qualified in its entirety by the more detailed information contained in the Bank’s Quarterly Report on Form 10-QSB for the quarter ended September 30, 2007 that was filed with the Federal Deposit Insurance Corporation on November 14, 2007.

Farmers and Merchants Bank, chartered in Maryland in 1919, is a commercial bank serving the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30 and Route 795 corridors from Owings Mills, Maryland to the Pennsylvania State line. The main office is located in Upperco, Maryland, with six additional branches in Owings Mills, Hampstead, Greenmount and Reisterstown. Shares of the Bank’s common stock are traded through NASDAQ’s Over-The-Counter Bulletin Board under the symbol “FMFG.OB”

FOR IMMEDIATE RELEASE                            FOR FURTHER INFORMATION CONTACT:
September 4, 2007                                

Farmers and Merchants Bank                             Contact:     Mr. James R. Bosley, Jr.
15226 Hanover Pike                                                                President
Upperco, Maryland  21155                                                      (410) 833-6600

FARMERS AND MERCHANTS BANK ANNOUNCES APPROVAL OF STOCK REPURCHASE PROGRAM AND EARNINGS FOR THREE AND SIX MONTHS ENDED JUNE 30, 2007

UPPERCO, MARYLAND (August 27, 2007) – On August 22, 2007, the Bank received the approval of the Maryland Commissioner of Financial Regulation to repurchase up to 50,000 shares of its common stock over a 36-month period, at such time, at such prices, and in such amounts as the President of the Bank deems appropriate. Repurchases may be effected in the open market or in privately-negotiated transactions. The Bank received the approval of the Federal Deposit Insurance Corporation on July 11, 2007, which must be renewed every 12 months. At June 30, 2007, 749,214.631 shares of the Bank's common stock were issued and outstanding.

James R. Bosley, Jr., President and CEO of Farmers and Merchants Bank, announced that net income for the three months ended June 30, 2007 totaled $452,117, or $0.61 per share, compared to $579,712, or $0.78 per share, for the same period in 2006. Net income for the six months ended June 30, 2007 was $859,411, or $1.15 per share, compared to $1,070,491 or $1.45 per share for the same period in 2006. The decreases for the three and six months ended June 30, 2007 versus the same periods in 2006 were primarily attributable to decreases in net interest income for the periods due to a higher cost of interest-bearing liabilities, resulting in a lower interest rate spread, and higher noninterest expenses. The decreases were also was impacted by the Bank’s decision to make a $15,000 and a $30,000 provision for loan losses in the three and six months ended June 30, 2007, respectively, versus $0 in the same periods of 2006.  

Total assets increased $7.7 million to $167.7 million at June 30, 2007, compared to $160.0 million at December 31, 2006. Cash and federal funds sold increased $0.9 million to $20.0 million at June 30, 2007, compared to $19.1 million at December 31, 2006. Total investments increased $0.5 million to $25.9 million at June 30, 2007, compared to $25.4 million at December 31, 2006. Loans outstanding increased $4.8 million to $110.0 million at June 30, 2007, compared to $105.2 million at December 31, 2006. Nonaccrual loans totaled $0 and $1.3 million at June 30, 2007 and December 31, 2006, respectively. The Bank had $1.4 million in other real estate owned at June 30, 2007 versus $0 at December 31, 2006. Total liabilities increased $7.1 million to $148.3 million at June 30, 2007, compared to $141.2 million at December 31, 2006. Deposits increased $11.6 million to $138.3 million at June 30, 2007, compared to $126.7 million at December 31, 2006. Securities sold under repurchase agreements decreased $4.7 million to $9.3 million at June 30, 2007, compared to $14.0 million at December 31, 2006. Stockholders’ equity increased $621,976 to $19.4 million at June 30, 2007, compared to $18.8 million at December 31, 2006. The book value of the common stock of the Bank was $25.88 per share at June 30, 2007 based on 749,214.631 shares outstanding, compared to $25.19 per share at December 31, 2006 based on 744,957.408 shares outstanding.

The foregoing financial information is qualified in its entirety by the more detailed information contained in the Bank’s Quarterly Report on Form 10-QSB for the quarter ended June 30, 2007 that was filed with the Federal deposit Insurance Corporation on August 14, 2007.

Farmers and Merchants Bank, chartered in Maryland in 1919, is a commercial bank serving the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30 and Route 795 corridors from Owings Mills, Maryland to the Pennsylvania State line. The main office is located in Upperco, Maryland, with five additional branches in Owings Mills, Hampstead, Greenmount and Reisterstown. Shares of the Bank’s common stock are traded through NASDAQ’s Over-The-Counter Bulletin Board under the symbol “FMFG.OB”

Officers/Directors Insiders' Section 16 Reports
http://www2.fdic.gov/efr/instdetail.asp?CertNum=1895