Exhibit 99

F & M Bank Corp.---News and Financials

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

TIMBERVILLE, VA—July 25, 2003—F & M Bank Corp. (OTCBB: FMBM), parent company of Farmers & Merchants Bank, reports net income in the second quarter 2003, was $1,223,000 or $.50 per share, compared to $1,161,000 or $.48 per share the second quarter of 2002, an increase of 5.63% in earnings per share.

For the six months ended June 30, 2003, net income was $2,076,000 or $.86 per share compared to $1,950,000 or $.80 per share for the first six months of 2002.
Net interest income through the end of the second quarter increased 6.62% compared with a year ago; noninterest income increased 15.72% and noninterest expense increased 12.63% during the same period.

On an annualized basis, return on average assets at the end of the second quarter was 1.35% and return on average shareholders' equity was 13.86%.  As of June 30, 2003, assets increased 5.35%, deposits increased 10.66% and loans increased .06% compared to a year ago.
Reserve for loan losses at the end of the second quarter was $1,566,000 or .78% of loans while shareholders' equity totaled $30,773,000.  A quarterly dividend of $.17 per share will be paid August 5, 2003 to shareholders of record July 8, 2003.

F & M Bank Corp. President and CEO Julian Fisher said, "We are pleased with our results through six months of 2003."  Fisher explained, "Interest rate adjustments by the Federal Reserve Bank have resulted in the prime rate decreasing to 4.00% in June, the 13th decrease since January, 2001. This action by the Fed continues to exert pressure on our net interest margin. Lending has been flat due to our unwillingness to commit funds long-term at historically low rates of interest. We are extremely liquid at this time, and although that places a short-term strain on interest margins, we believe it positions us favorably to react to any increase in loan or bond yields. Although non-performing loans have increased compared to the same period in 2002, most of the increase is in several large, well-secured real estate loans. We believe that the risk of substantial losses, which could cause an increase in funding for the provision for loan losses, is minimal.”

Fisher continued, “We are expanding our efforts to develop sources of non-interest income. Our mortgage and investments office, which opened in Harrisonburg in December 2002, became profitable within ninety days and should continue as a source of non-interest income. In the second quarter, we began a bounce protection program and offered a skip-a-pay feature on consumer loans. Both of these initiatives have been very successful thus far." Fisher concluded, "We continue to experience good deposit growth as customers seek out a local financial institution to meet their banking and investing needs."

Farmers & Merchants Bank, which opened in 1908 and is the oldest financial institution native to Rockingham County, VA., owns Farmers & Merchants Financial Services, Inc., which offers non-deposit, non-insured investment alternatives such as mutual funds and annuities.

Common stock of the bank's parent company, F & M Bank Corp. is traded on the Over-the-Counter Bulletin Board under the symbol FMBM.

Market makers include the following: Davenport & Company, Legg Mason, Monroe Securities, McKinnon & Company and BB&T Capital Markets (retail trading through its subsidiary Scott & Stringfellow).

This news release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Please refer to F & M Bank Corp. filings with the Securities and Exchange Commission for a summary of important factors that could affect F & M Bank Corp. forward-looking statements. F & M Bank Corp. undertakes no obligation to revise these statements following the date of the news release.

SOURCE:

F & M Bank Corp.

CONTACT:

Neil Hayslett, SVP/CFO, Farmers & Merchants Bank

540-896-8941 or neilhayslett@farmersandmerchants.biz