Farmers and Merchants Bancshares, Inc. - Code of Ethics Amendment

Farmers and Merchants Bancshares, Inc. has amended and restated its Code of Ethics for directors and executive officers, effective May 18, 2026. The updated code features a more concise, compliance-focused format with enhanced governance and accountability. Key changes include formalized reporting expectations, new anti-retaliation protections, and a tiered disciplinary framework. The guidance on conflicts of interest is simplified and emphasizes immediate disclosure. The threshold for gifts and business courtesies has been raised to $100, with simplified standards focusing on reasonableness. New policy areas cover confidentiality, data protection, personal trading, external employment, and community/political activities. The code shifts towards principle-based expectations for personal financial responsibility and removes overly prescriptive details, aligning with enterprise risk management. Annual acknowledgment from employees and directors is required, and policy updates need Board approval. The updated Code of Ethics is filed as Exhibit 14.1 and available on the company's website.