8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2010

F & M Bank Corp.

(Exact name of registrant as specified in its charter)

Virginia
(State or other jurisdiction
of incorporation) 000-13273
(Commission File Number) 54-1280811
(IRS Employer
Identification No.)

P.O. Box 1111
Timberville, Virginia 22853
(540) 896-8941

(Address including zip code, and telephone number, including area code, of registrant’s
principal executive offices)

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On July 30, 2010, F & M Bank Corp. issued a press release announcing results for the quarter ended June 30, 2010. A copy of the press release is attached as Exhibit 99.1.

     The information in this Form 8-K, and the exhibit hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

Exhibit No.		Description
	99.1	F & M Bank Corp. press release dated July 30, 2010

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

F & M Bank Corp.
By:	/s/ Neil W. Hayslett
	Neil W. Hayslett
	Executive Vice President and Chief Financial Officer

Date: July 30, 2010

EXHIBIT INDEX

Exhibit No.		Description
	99.1	F & M Bank Corp. press release dated July 30, 2010

EX-99.1

F & M Bank Corp.—News and Financials

F & M BANK CORP. REPORTS 2ND QUARTER FINANCIAL RESULTS

     TIMBERVILLE, VA—July 30, 2010—F & M Bank Corp. (OTCBB: FMBM), parent company of Farmers & Merchants Bank, announces its financial results for the quarter and six months ended June 30, 2010 and its recently declared second quarter dividend.

     The Company’s net income for the first six months of 2010 was $1,735,905, a decrease of $238,698 compared to the same period last year. Net income for the second quarter of 2010 was $979,829, which is a decrease of $111,177 from the second quarter of 2009. Earnings per share were $.76 and $.86 for the first six months of 2010 and 2009, respectively. Earnings per share were $.43 and $.48 for the second quarter of 2010 and 2009, respectively.

     Consolidated earnings, including parent company transactions, decreased for both the second quarter and year to date 2010 due primarily to increased FDIC Assessments and increased Provision for Loan Losses. Through June 2010, the FDIC Assessments and Provision totaled $578,533 and $1,800,000, respectively. This contrasts with FDIC Assessments of $280,730 and Provision of $520,000, respectively through June 2009. Combined this equates to an increase in non-interest expense of $1,577,803 in 2010 versus 2009. These increased expenses were partially offset by an $860,556 change in securities transactions, resulting from a gain of $29,950 through June 2010 versus losses of $830,606 through June 2009. The losses in 2009 were primarily from Other Than Temporary Impairment (OTTI) write downs rather than from the sale of securities.

     Total assets of the Company were $544.4 million at June 30, 2010, which represents an increase of $50.0 million or 10.12% from June 30, 2009 and an increase of $5.2 million or .96% from $539.2 million at December 31, 2009. Total loans held for investment were $445.4 million at June 30, 2010, which represents an increase of $29.1 million or 6.99% from $416.3 million at June 30, 2009 and an increase of $11.0 million (2.54%) from $434.4 million at December 31, 2009. Loans held for sale totaled $32.4 million at June 30, 2010 and $20.4 million and $31.2 million, respectively at June 30, 2009 and December 31, 2009. Loans held for sale are comprised of secondary market loans the Bank has originated and short term residential mortgage participations that have an average life of approximately two weeks. Total deposits were $427.6 million at June 30, 2010, which represents an increase of $51.2 million (13.60%) from $376.4 million at June 30, 2009 and an increase of $6.97 million from $420.6 million at December 31, 2009.

     On June 17, 2010, the Company declared its second quarter dividend of $0.15 per share which will be paid on August 9, 2010, to shareholders of record as of July 14, 2010. Cumulative dividends declared for the six month period total $0.30 in 2010 versus $0.46 in 2009.

     Highlights of the company’s financial performance are included below.

     F & M Bank Corp. is an independent, locally-owned, community bank holding company, offering a full range of financial services, through its subsidiary bank, Farmers & Merchants Bank’s nine banking offices in Rockingham, Shenandoah and Page Counties, Virginia. Additional information may be found by contacting us on the internet at www.farmersandmerchants.biz or by calling: (540) 896-8941.

     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.

SOURCE:	F & M Bank Corp.
CONTACT:	Neil Hayslett, EVP/CFO, Farmers & Merchants Bank
	540-896-8941 or neilhayslett@farmersandmerchants.biz

F & M Bank Corp.Financial Highlights

	For Six Months
	Ended June 30
INCOME STATEMENT	Unaudited		Unaudited
	2010		2009
Interest and Dividend Income	$	13,709,199	$	13,719,436
Interest Expense		4,655,673		5,250,155
Net Interest Income		9,053,526		8,469,281
Non-Interest Income		1,643,912		1,616,189
Provision for Loan Losses		1,800,000		520,000
FDIC Assessment		578,533		280,730
Other Non-Interest Expenses		5,810,412		5,599,628
Income Before Income Taxes & Securities Transactions		2,508,493		3,685,112
Securities Gains (Losses)		29,950		(830,606	)
Provision For Income Taxes		779,214		833,974
Less Minority Interest		23,324		45,929
Net Income	$	1,735,905	$	1,974,603
Average Shares Outstanding		2,296,374		2,289,122
Net Income Per Common Share		.76		.86

				Unaudited
	Unaudited			June 30,
BALANCE SHEET	June 30, 2010			2009
Cash and Due From Banks	$	6,329,559		$	5,407,127
Interest Bearing Bank Deposits		2,985,851			856,922
Federal Funds Sold		8,960,000			4,106,000
Loans Held for Sale		32,447,551			20,363,983
Loans Held for Investment		445,415,900			416,316,322
Less Allowance for Loan Losses		(4,890,288	)		(2,556,033	)
Net Loans Held for Investment		440,525,612			413,760,289
Securities		25,442,653			25,998,727
Other Assets		27,684,253			23,839,852
Total Assets	$	544,375,479		$	494,332,900
Deposits	$	427,614,443		$	376,434,254
Short Term Debt		5,396,646			7,143,420
Long Term Debt		63,312,083			65,176,071
Other Liabilities		7,715,816			7,743,502
Total Liabilities		504,038,988			456,497,247
Stockholders’ Equity		40,336,491			37,835,653
Total Liabilities and Stockholders’ Equity	$	544,375,479		$	494,332,900
Book Value Per Common Share	$	17.55		$	16.49