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This press release may contain "forward-looking statements" as defined by federal securities laws, which may involve significant risks and uncertainties. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates, general economic conditions, legislative and regulatory policies, and a variety of other matters. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

                   F & M Bank Corp. Financial Highlights                                                  For Twelve Months                                                  Ended December 31                                         ----------------------------------                                            Unaudited          AuditedINCOME STATEMENT                               2012              2011                                         ----------------  ----------------Interest and Dividend Income             $     27,224,539  $     27,680,179Interest Expense                                6,294,071         7,718,651                                         ----------------  ----------------  Net Interest Income                          20,930,468        19,961,528Non-Interest Income                             3,704,153         3,178,195Provision for Loan Losses                       4,200,000         4,000,000Other Non-Interest Expenses                    13,361,377        12,891,818                                         ----------------  ----------------  Income Before Income Taxes &   Securities Transactions                      7,073,244         6,247,905Securities Gains (Losses)                                         1,024,539Provision For Income Taxes                      2,026,193         2,522,728Less Minority Interest                            145,967            61,525                                         ----------------  ----------------Net Income                               $      4,901,084  $      4,688,191Average Shares Outstanding                      2,496,300         2,449,864Net Income Per Common Share                          1.96              1.91Dividends Declared                                    .64               .60                                             Unaudited          Audited                                           December 31,      December 31,BALANCE SHEET                                  2012              2011                                         ----------------  ----------------Cash and Due From Banks                  $      7,960,633  $      6,813,243Interest Bearing Bank Deposits                  1,283,581         1,187,996Federal Funds Sold                                                2,180,601Loans Held for Sale                            77,206,517        60,542,812Loans Held for Investment                     465,819,073       451,570,491  Less Allowance for Loan Losses               (8,154,074)       (6,936,904)                                         ----------------  ----------------  Net Loans Held for Investment               457,664,999       444,633,587Securities                                     18,807,173        22,107,621Other Assets                                   33,981,232        29,268,015                                         ----------------  ----------------  Total Assets                           $    596,904,135  $    566,773,875Deposits                                 $    453,795,539  $    435,946,623Short Term Debt                                34,597,352        18,538,963Long Term Debt                                 37,714,286        47,107,143Subordinated Debt                              10,191,000        10,191,000Other Liabilities                              11,221,998         8,770,427                                         ----------------  ----------------  Total Liabilities                           547,520,175       520,554,156Stockholders' Equity                           49,383,960        46,179,719                                         ----------------  ----------------  Total Liabilities and Stockholders'   Equity                                $    596,904,135  $    566,733,875Book Value Per Common Share              $          19.76  $          18.53