March 18, 1997



Dear F & M Bank Corp. Shareholders:

     You are cordially invitedSCHEDULE 14A
                                 (Rule 14a-101)
                     Information Required in Proxy Statement

                            SCHEDULE 14A INFORMATION
                Proxy Statement Pursuant to attend our annual meetingSection 14(a) of shareholders
on Saturday, April 12, 1997 at 5:30 P.M. at McGaheysville Fire Department
Activity Building, McGaheysville, Virginia. Please note the
                         time. This will
be a dinner meeting which will be servedSecurities Exchange Act of 1934
                                (Amendment No. )

Filed by the members ofRegistrant [X] 
Filed by a Party other than the McGaheysville Ladies Auxiliary. You are invited to this dinner and we are
enclosing a reservation card for your convenience in letting us know
whether or not you can be with us. We must receive this card on or before
March 28, 1997 to make proper preparations forRegistrant [ ]

Check the meal.

     We are enclosing a formal notice of the meeting, a proxy and a Proxy
Statement detailing the matters upon which the shareholders will act at the
annual meeting. Our Company's Annual Report for 1996 is also enclosed.

     We urge you to complete, date and sign the proxy, and return it as
soon as possible in the enclosed postage prepaid envelope. Should you
decide to attend the meeting and vote in person, you may revoke your proxy
at any time prior to its exercise.

                                        Sincerely,appropriate box:
[ ] Preliminary Proxy Statement [ ] Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [X] Definitive Proxy Statement [ ] Definitive Additional Materials [ ] Soliciting Material Pursuant to Rule 14a- 11(c) or Rule 14a-12
F & M BANK CORP. Dan B. Todd Chairman Page 2 PROXY F & M BANK CORP. Annual Meeting- -------------------------------------------------------------------------------- (Name of Shareholders, April 12, 1997 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby appoints Robert L. Halterman, Wayne L. LongRegistrant as Specified in Its Charter) - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant) Payment of Filing Fee (Check the appropriate box): [X] No fee required. [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and Michael W. Pugh, any or all0-11. (1) Title of whom may act, with full powereach class of substitution, as proxies to vote, as designated below, at the Annual Meeting of Shareholders to be held April 12, 1997 at 5:30 P.M. and at any adjournment thereof, the shares of F & M Bank Corp. common stock held of record by the undersigned as of March 4, 1997. The sharessecurities to which this proxy relates will be voted as specified. If no specificationtransaction applies: ................................................................. (2) Aggregate number of securities to which transaction applies: ................................................................. (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is made, such shares will be voted in favorcalculated and state how it was determined): ................................................................. (4) Proposed maximum aggregate value of transaction: ................................................................. (5) Total fee paid: ................................................................. [ ] Fee paid previously with preliminary materials. ................................................................. [ ] Check box if any part of the proposals set forth on this proxy. PROPOSAL ONE ELECTION OF DIRECTORS _ FOR all nominees listed below _ WITHHOLD AUTHORITY to votefee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for (except as marked towhich the contrary below) all nominees listed below Lawrence H. Hoover, Jr., Richard S. Myersoffsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and Ronald E. Wampler for three-year terms to expire in 2000. (INSTRUCTION: To withhold authority to vote for any individual nominee, write that nominee's name in the space below.) PROPOSAL TWO APPOINTMENT OF S. B. HOOVER & COMPANY, L.L.P. AS INDEPENDENT PUBLIC ACCOUNTANTS _ FOR _ AGAINST _ ABSTAIN IN THEIR DISCRETION, THE PROXIES ARE AUTHORIZED TO VOTE UPON SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE ANNUAL MEETING. Please complete, date and sign the proxy and return it as soon as possible in the enclosed postage prepaid envelope. The proxy must be signed exactly as the nameof its filing. (1) Amount previously paid: ................................................................. (2) Form, Schedule or names appear on the label attached to this proxy with the exception of any stock listed in the name of the owner TOD to another individual. If signing as a trustee, executor, etc., please so indicate.Registration Statement no.: ................................................................. (3) Filing Party: ................................................................. (4) Date Signed: Signature(s) Page 3Filed: ................................................................. F & M BANK CORP. Timberville, Virginia Notice of Annual Meeting of Shareholders To the Shareholders of F & M Bank Corp. The annual meeting of shareholders of F & M Bank Corp. (the Company) will be held on Saturday, April 12, 1997,10, 1999, at 5:30 P.M.11:00 A.M. at McGaheysville Fire Department Activity Building, McGaheysville,Broadway High School, Broadway, Virginia, for the following purposes: 1. Election of threetwo directors to be elected for three-year terms expiring in 2000.2002. 2. Ratification of the appointment of S. B. Hoover & Company, L.L.P. as independent auditors for 1997.1999. 3. Transaction of such other business as may properly come before the meeting. Management is not aware of any other business, other than procedural matters incident to the conduct of the Annual Meeting. Only shareholders of record at the close of business on March 4, 19972, 1999 are entitled to notice of and to vote at the annual meeting or any adjournments thereof. To assure that your shares are represented at the annual meeting, please complete, date and sign the enclosed proxy, and return it as soon as possible in the enclosed postage prepaid envelope. You may revoke your proxy at any time prior to its exercise. By Order of the Board of Directors Larry A. Caplinger, Secretary March 18, 1997 Page 416, 1999 F & M BANK CORP. P. O. Box F1111 Timberville, Virginia 22853 PROXY STATEMENT This Proxy Statement is furnished in connection with the solicitation of proxies for use at the annual meeting of shareholders of F & M Bank Corp. (the Company) to be held Saturday, April 12, 199710, 1999 at 5:30 P.M.11:00 A.M. at the McGaheysville Fire Department Activity Building, McGaheysville,Broadway High School, Broadway, Virginia, and at any adjournments thereof (Annual(the Annual Meeting). The principal executive offices of the Company are located on Main Street, Timberville, Virginia 22853. The approximate mailing date of thethis Proxy Statement and the accompanying proxy is March 18, 1997.16, 1999. The accompanying proxy is solicited by the Board of Directors of the Company (the Board). The cost of the solicitation of proxies will be borne by the Company. Solicitations will be made only by the use of the mail, except that, if necessary, officers, directors and regular employees of the Company, or its affiliates, may make solicitations of proxies by telephone, telegraph or by personal calls. Brokerage houses and nominees may be requested to forward the proxy solicitation material to the beneficial owners of the stock held of record by such persons, and the Company may reimburse them for their charges and expenses in this regard. All properly executed proxies delivered pursuant to this solicitation will be voted at the Annual Meeting in accordance with any instructions thereon. Any person signing and mailing the enclosed proxy may, nevertheless, revoke the proxy at any time prior to the actual voting thereof by (i) filing written notice thereof with the Secretary of the Company (Larry A. Caplinger, Secretary, F & M Bank Corp., P. O. Box F,1111, Timberville, Virginia 22853); (ii) submitting a duly executed proxy bearing a later date; or (iii) appearing at the Annual Meeting or any adjournment thereof and giving the Secretary notice of his or her intention to vote in person. An Annual Report to shareholders, including current financial statements, is being mailed to the Company's shareholders concurrently with this Proxy Statement, but is not part of the proxy solicitation materials. Interested shareholders may obtain, without charge, a copy of the Company's Form 10-KSB for the fiscal year ended December 31, 1996,1998, as filed with the Securities and Exchange Commission, upon written request to Larry A. Caplinger, Secretary, F & M Bank Corp., P. O. Box F,1111, Timberville, Virginia 22853. OUTSTANDING SHARES AND VOTING RIGHTS Only shareholders of record at the close of business on March 4, 19972, 1999 will be entitled to vote at the Annual Meeting. As of March 4,2, 1999, the Company had outstanding 818,6542,454,143 shares of its common stock, $5 par value (Common Stock), each of which is entitled to one vote at the Annual Meeting. A majority of votes entitled to be cast on matters considered at the Annual Meeting constitutes a quorum. If a share is represented for any purpose at the Annual Meeting, it is deemed to be present for purposes of establishing a quorum. Abstentions and shares held of record by a broker or its nominees (Broker Shares) which are voted on any matter are included in determining the number of votes present or represented at the Annual Meeting. Conversely, Broker Shares that are not voted on any matter will not be included in determining whether a quorum is present. If a quorum is established, directors will be elected by a plurality of the votes cast by shareholders at the Annual Meeting. Votes that are withheld and Broker Shares that are not voted in the election of directors will not be included in determining the number of votes cast. Page 5 SECURITY OWNERSHIP OF MANAGEMENT The following table sets forth the number and percentage of shares of common stockCommon Stock beneficially owned, as of March 4, 19972, 1999, by each of the Company's directors and nominees and all of the Company's directors and executive officers as a group. For the purposes of this table, beneficial ownership has been determined in accordance with the provisions of Rule 13d-3 under the Securities and Exchange Act of 1934, as amended, under which, in general, a person is deemed to be a beneficial owner of a security if he has or shares the power to vote or direct the voting of the security or the power to dispose of or direct the disposition of the security, or if he has the right to acquire beneficial ownership of the security within 60 days. Amount Beneficially Percent of Name of Owner Owned Class Thomas L. Cline 2,140 1 .261% Julian D. Fisher 22,328 2 2.727% Robert L. Halterman 9,616 1.175% Lawrence H. Hoover, Jr. 12,526 3 1.530% Wayne L. Long 5,080 4 .621% Richard S. Myers 3,740 5 .457% Michael W. Pugh 200 .024% Dan B. Todd 11,842 6 1.447% Ronald E. Wampler 2,500 .305% Directors and executive officers as a group (9 persons) 69,972 8.547% __________________________
Amount Beneficially Percent of Name of Owner Owned Class - --------------------------------------------------------------------------------------------- Thomas L. Cline 6,951 1 .283% Julian D. Fisher 89,320 2 3.640% Robert L. Halterman 28,848 1.175% Lawrence H. Hoover, Jr. 55,095 3 2.245% Wayne L. Long 21,084 4 .859% Richard S. Myers 12,670 5 .516% Michael W. Pugh 600 .024% Dan B. Todd 35,526 6 1.448% Ronald E. Wampler 7,500 .306% Directors and executive officers as a group (9 persons) 257,594 10.496% - --------------------------
1 Includes 1,2413,723 shares owned directly, 8433,060 shares owned jointly with another member of his household and 56168 shares owned by another member of his household. 2 Includes 3,1309,427 shares owned directly, 2,7308,190 shares owned by another member of his household and 16,46871,703 shares owned by the Company's stock bonus plan over which Mr. Fisher has voting power. 3 Includes 10,28037,119 shares owned directly, 46138 shares owned by another member of his household and 2,20017,838 shares owned by a Unitrust in which he is one of the trustees. 4 Includes 1,2848,976 shares owned directly and 3,79612,108 shares owned by aanother member of his household. 5 Includes 1,6004,800 shares owned directly and 2,1407,870 shares held in Mr. Myers' IRA Account. 6 Includes 1,2803,840 shares owned directly, 8,55425,662 shares owned by aanother member of his household and 2,0086,024 shares held in Mr. Todd's IRA Account. Page 6 SECURITY OWNERSHIP OF BENEFICIAL OWNERS Management of the Company knows of no person who has beneficial ownership of 5% or more of the Company's outstanding common stockCommon Stock as of March 4, 1997.2, 1999. 2 PROPOSAL ONE ELECTION OF DIRECTORS The term of office for the current Class AC directors expires at the Annual Meeting. The Board of Directors has nominated such directors, namely Lawrence H. Hoover, Jr., Richard S. MyersJulian D. Fisher and Ronald E. WamplerDan B. Todd, for reelection, for a three-year term, by the shareholders at the Annual Meeting. The persons named as proxies in the accompanying form of proxy, unless instructed otherwise, intend to vote for the election of each of these nominees for directors. If any nominee should become unavailable to serve, the proxy may be voted for the election of a substitute nominee designated by the Board. The Board has no reason to believe that any of the nominees will be unable to serve if elected. The Board recommends election of the Class AC director nominees set forth in this statement.Proxy Statement. INFORMATION CONCERNING DIRECTORS AND NOMINEES The following information, including the principal occupation during the past five years, is given with respect to the nominees, all of whom are current directors, for election to the Board at the Annual Meeting, as well as all directors continuing in office. Name and Position Director Principal Occupation with the Company Age Since During the Last Five Years Director Nominees CLASS A DIRECTORS (to serve until the 2000 annual meeting of shareholders) Lawrence H. Hoover, Jr. 62 1981 Attorney, Partner in Hoover, Vice Chairman of the Penrod, Davenport & Crist and Board its predecessor since 1971 Richard S. Myers 49 1988 President of Dick Myers Chevrolet-GEO since February 1991 Ronald E. Wampler 49 1991 Farmer & partner in Dove Farms, Inc. and its affiliates Page 7 Directors Continuing in Office CLASS B DIRECTORS (to serve until the 1998 annual meeting of shareholders) Thomas L. Cline 50 1991 Secretary/Treasurer of Truck & Equipment Corp. and related companies since 1974 Robert L. Halterman 61
- -------------------------------------------------------------------------------------------------------------------------------- Name, Age and Position Director Principal Occupation During with the Company Since the Last Five Years - -------------------------------------------------------------------------------------------------------------------------------- Director Nominees CLASS C DIRECTORS (to serve until the 2002 annual meeting of shareholders) Julian D. Fisher(58) 1990 CEO of Farmers & Merchants Bank (the Bank) since President & CEO May 1996; President of the Bank since Oct. 1991 Dan B. Todd(67) 1969 CEO of the Bank from 1969 to May 1996: Chairman of Chairman of the Board the Board of the Bank since October 1991 Directors Continuing in Office CLASS A DIRECTORS (to serve until the 2000 annual meeting of shareholders) Lawrence H. Hoover, Jr.(64) 1981 Attorney, Partner in Hoover, Penrod, Davenport & Vice Chairman of the Board Crist and its predecessor since 1971 Richard S. Myers(51) 1988 President of Dick Myers Chevrolet-GEO since February, 1991, Owner, TrAndy Apartments, L.L.C. and TrAndy Real Estate Holdings, L.L.C. Ronald E. Wampler(51) 1991 Farmer & partner in Dove Ohio Farms, LLC. and WWTD Ohio Farms, LLC 3 CLASS B DIRECTORS (to serve until the 2001 annual meeting of shareholders) Thomas L. Cline(52) 1991 President of Truck & Equipment Corp. & Mac Lease, Inc. since May 1997, Secretary of North and South Lines, Inc. since May 1997, Secretary of Truck Thermo King, Inc. and Transport Repairs, Inc. since 1974 Robert L. Halterman(63) 1980 President of Virginia Classic Mustang, Inc., an auto parts company, Partner, H & H Properties Wayne L. Long(69) 1985 Real estate and retired farmer Michael W. Pugh(44) 1994 President of Old Dominion Realty, Inc., Partner in Tri-City Development Co., an auto parts company Wayne L. Long 67 1985 Real estate and retired farmer Michael W. Pugh 42 1994 President of Old Dominion Realty, Inc.; Partner in Tri- City Development Co.; President of Colonial Appraisal Service, Inc. and Treasurer of Old Mill Enterprises, Inc. CLASS C DIRECTORS (to serve until the 1999 annual meeting of shareholders) Julian D. Fisher 56 1990 CEO of Farmers & Merchants President Bank since May 1996; President of Bank since Oct. 1991 Dan B. Todd 65 1969 CEO of Farmers & Merchants Bank from 1969 to May 1996; Chairman of the Board of the Bank since Oct. 1991 Compensation of Directors All directors of the Company who are also Directors of the Bank each received $150 for attending each Bank Board meeting in 1996. They receive no additional compensation as Directors for Board meetings of F & M Bank Corp. In addition, each Director received a bonus of $4,000 for the year ended 1996 and $50 for each committee meeting.
Board Meetings and Committees The Board of F & M Bank Corp.the Company met 1417 times during 1996. All incumbent members1998. Each member of the Board attended at least 75% of the total number of meetings of the Board.Board and meetings of committees on which he served. The Board of Farmers & Merchantsthe Bank meets twice each month and primarily manages all matters for the Bank. All the directors of F & M Bank Corp.the Company are also directors of Farmers & Merchantsthe Bank. The Company has an Audit Committee which reviews the audit and examination reports of the internal auditor, independent public accountants and bank examiners as they relate to the Company and its subsidiaries.the Bank. The Audit Committee held fourthree meetings during 1996. Directors received $50 for each committee meeting.1998. The present committee members are Directors Cline, Halterman, Long and Myers. For the year 1996,1998, the Company did not have a standing nominating or compensation committee. Page 8Compensation of Directors All directors of the Company who are also directors of the Bank each received $200 for attending each board meeting of the Bank in 1998. They received no additional compensation as directors for Board meetings of the Company. In addition, each director received a bonus of $5,000 for the year ended 1998 and $100 for each committee meeting attended. SUMMARY COMPENSATION The Summary Compensation Table below sets forth the compensation of the Company's Chief Executive Officer for all services rendered to the Company and its subsidiary, Farmers & Merchantsthe Bank for the last three fiscal years. 4 SUMMARY COMPENSATION TABLE Name and Annual Compensation 1 Other Principal Position Year Salary ($) Bonus ($) Compensation ($)2 Julian D. Fisher 1996 $ 84,912 $ 30,000 $ 20,813 Chief Executive Officer 1995 72,800 25,000 17,213 & President 1994 70,300 20,000 16,616
Annual Compensation 1 Long-Term Compensation Name and All Other Principal Position Year Salary($) Bonus($) Compensation ($)3 - ------------------------------------------------------------------------------------------------------ Julian D. Fisher 1998 $110,000 $40,000 2 $42,742 Chief Executive Officer 1997 100,000 35,000 29,282 & President 1996 84,912 30,000 19,485
1 The value of perquisites and other personal benefits did not exceed the lessorlesser of $50,000 or 10% of the total of annual salary and bonus. 2 The amount presented includes compensation that was deferred at Mr. Fisher's election. 3 The amounts presented include the Company's contribution for the benefit of Mr. Fisher under the Company's Stock Bonus Plan ($12,151, $9,28016,116, $14,486 and $8,871$12,151 in 1996, 19951998, 1997 and 19941996, respectively), the gross value of life insurance premiums paid by the Company on behalf of Mr. Fisher ($7,334, $7,38616,210, $14,796 and $7,428$7,334 in 1996, 19951998, 1997 and 19941996, respectively) and the lease value of personal mileage on a company vehicle that has been providedExecutive Deferred Compensation Plan for Mr. Fisher's useFarmers & Merchants Bank ($1,328, $547 and $31710,416 in 1996, 1995 and 1994 respectively)1998). Pursuant to a split-dollar insurance agreement between the Company and Mr. Fisher, the Company will be repaid such premium payments from the proceeds of the insurance policies. Thus, the gross premium payment amounts shown overstate the actual economic benefit to Mr. Fisher. Severance Plan In 1996, the Company and its subsidiary, Farmers & Merchantsthe Bank adopted a change in control severance plan which became effective July 1, 1996. The Planplan covers employees designated by the Company's Board of Directors, including Mr. Fisher. Under the plan, a covered termination"covered termination" is a cessation of employment with the Company or its then affiliates within 36 months after a change in control (as defined in the plan) on account of either (i) termination of employment by the covered employee for good reason (defined to mean the occurrence after a change in control of any of the following: the assignment of duties inconsistent with prior duties, the diminution of responsibilities, a reduction in base salary, a transfer of job location of more than 50 miles, a failure to pay compensation or deferred compensation within 7seven days after due, a failure to continue participation and benefits under any compensation or benefits plan (or any successor or replacement plan) at as favorable a level, or a failure of the Company to require any successor to the Company to comply with the plan) or (ii) termination initiated by the Company or any of its affiliates for any reason other than death, disability, mandatory retirement or cause (as defined in the plan). In the event of such a "coveredcovered termination," a covered employee will be entitled to the following severance benefits: (i) continuation of the employee's base pay (as defined)defined in the plan) through the earlier of his or her death or the third anniversary of the date of the change in control (the severance pay period); (ii) continuation of the availability of coverage, and the employer's regular contribution towards that coverage, under the employer's health care plan during the severance pay period for the employee and his or her eligible dependents; (iii) the right to buy any car that the employee is assigned by the employer at its then fair market value; and (iv) a lump sum payment equal to the value of any qualified or nonqualified retirement benefits forfeited by the employee on account of his or her covered termination. Page 9 Indebtedness and Other Transactions The Company's directors and officers and other corporations, business organizations, and persons with whom some of the Company's directors and officers are associated, had loan transactions at 12/31/96December 31, 1998 with the Company's banksBank totaling approximately $1,043,002,$1,133,362, or about 5.8%4.8% of average shareholders' equity for the year. All such transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time in comparable transactions with others and did not involve more than the normal risk of collectibility or present other unfavorable features. 5 PROPOSAL TWO APPOINTMENT OF INDEPENDENT PUBLIC ACCOUNTANTS S. B. Hoover & Company, L.L.P. of Harrisonburg, Virginia, was the auditor for the Company for 19961998 and is being recommended to the Company's shareholders for appointment as auditor for 1997.1999. A representative of S. B. Hoover & Company, L.L.P. is expected to attendbe present at the Annual Meeting, withwill have the opportunity to make a statement and/orif he desires to do so, and is expected to be available to respond to appropriate questions from shareholders. The Board recommends a vote for Proposal Two. SHAREHOLDER PROPOSALS ProposalsUnder the regulations of the Securities and Exchange Commission, proposals of shareholders intended to be presented at the Company's 19982000 Annual Meeting must be received by the Secretary of the Company, at its principal executive offices, P. O. Box F,1111, Timberville, Virginia 22853 no later than November 16, 1999 in order for the proposal to be considered for inclusion in its proxy statement relating tothe Company's Proxy Statement. Any proposal that meetingis received by November 20, 1997.the Company after January 31, 2000 will be considered untimely for consideration at the 2000 Annual Meeting. By Order of the Board of Directors /s/ Larry A. Caplinger Larry A. Caplinger, Secretary March 18, 199716, 1999 6 PROXY F & M BANK CORP. Annual Meeting of Shareholders, April 10, 1999 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS The undersigned hereby appoints Thomas L. Cline, Wayne L. Long and Michael W. Pugh, any or all of whom may act, with full power of substitution, as proxies to vote, as designated below, at the Annual Meeting of Shareholders to be held April 10, 1999 at 11:00 A.M. and at any adjournment thereof, the shares of F & M Bank Corp. common stock held of record by the undersigned as of March 2, 1999. The shares to which this proxy relates will be voted as specified. If no specification is made, such shares will be voted in favor of the proposals set forth on this proxy. PROPOSAL ONE ELECTION OF DIRECTORS
_ _ |_| FOR all nominees listed below |_| WITHHOLD AUTHORITY to vote for all (except as marked to the contrary below) nominees listed below
Julian D. Fisher and Dan B. Todd for three-year terms to expire in 2002. (INSTRUCTION: To withhold authority to vote for any individual nominee, write that nominee's name in the space below.) - -------------------------------------------------------------------------------- PROPOSAL TWO APPOINTMENT OF S. B. HOOVER & COMPANY, L.L.P. AS INDEPENDENT PUBLIC ACCOUNTANTS _ _ _ |_| FOR |_| AGAINST |_| ABSTAIN IN THEIR DISCRETION, THE PROXIES ARE AUTHORIZED TO VOTE UPON SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE ANNUAL MEETING. Please complete, date and sign the proxy and return it as soon as possible in the enclosed postage prepaid envelope. The proxy must be signed exactly as the name or names appear on the label attached to this proxy with the exception of any stock listed in the name of the owner TOD to another individual. If signing as a trustee, executor, etc., please so indicate. Date Signed: ________________________ _____________________________________ Signature _____________________________________ Signature