FNB Financial Services Corporation Anticipates Significant Provision for Credit Losses for 2005

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.