FNBF Fnb Financial Services Corp (MM)

As previously announced, FNB Financial Services Corporation (NASDAQ: FNBF) and its bank subsidiary, FNB Southeast ("Bank"), are conducting investigations of loans in the Bank's Harrisonburg, Virginia region made in violation of certain of the Bank's lending policies and procedures. These investigations have been undertaken by the Bank's management, internal audit personnel and independent consulting firms. Additionally, these and related matters have been reviewed by the Bank's primary federal banking regulator in the course of the regulator's periodic examination of the Bank. Management of the Bank anticipates that a significant additional provision to the Bank's allowance for credit losses will be recorded in the financial results for the year ending December 31, 2005. The amount of such provision cannot be specified at this time. Management expects that the evaluations and considerations necessary to establish the amount of the additional provision will be completed in the latter part of January 2006. FNB Financial Services Corporation has one subsidiary, FNB Southeast; a North Carolina chartered commercial bank. FNB Southeast currently operates 17 banking offices located in North Carolina and Virginia. FNB Southeast Mortgage Corporation and FNB Southeast Investment Services, Inc. are operating subsidiaries of FNB Southeast. Information in this press release may contain "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in the Company's recent filings with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K and its other periodic reports.