F&M BANK CORP | 2013 | FY | 3


The deferred tax effects of temporary differences are as follows:     2013       2012       2011  
                         
LIH Partnership Losses   $ (72,955 )   $ (44,640 )   $ (43,906 )
Securities impairment     -       -       961,648  
Deferred Tax Asset Valuation Allowance     -       -       385,496  
Local & Historic State Credits Recognized     (67,594 )     (82,112 )     44,533  
Provision for loan losses     96,159       (224,835 )     (135,662 )
Non-qualified deferred compensation     (64,140 )     (35,161 )     (50,456 )
Depreciation     86,551       (42,919 )     51,534  
Other real estate owned     (3,746 )     -       -  
Pension expense     84,282       97,067       231,699  
Goodwill tax amortization     64,920       61,424       61,424  
Secondary accrual on nonaccrual loans     444,482       (223,557 )     (114,231 )
Other     899       -       459  
Deferred Income Tax Expense (Benefit)   $ 568,858     $ (494,733 )   $ 1,392,538  

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