NEWS RELEASE
	CONTACT ERIC GRAAP

(540) 349-0212 or

egraap@fauquierbank.com

FAUQUIER BANKSHARES, INC. ANNOUNCES RECORD SECOND QUARTER AND YEAR-TO-DATE NET INCOME

• Second Quarter Net Income increased 3.1% to $1.3 million.

• 14.65% Return on Average Equity; 1.13% Return on Average Assets for the first six months of 2006.

• Loan portfolio growth of 17.1% over last 12 months.

WARRENTON, VA, July 24, 2006 – Fauquier Bankshares, Inc. (NASDAQ: FBSS), today reported record second quarter net income of $1,288,000 or $0.36 per diluted share for the period ended June 30, 2006. This represents an increase of 3.1% when compared with $1,249,000 or $0.35 per diluted share, for the same quarter in 2005. Return on average assets was 1.06% and return on average equity was 13.88% for the second quarter of 2006, compared with 1.12% and 15.12%, respectively, for the same period in 2005. The growth in net income was primarily due to a $166,000 or 13.1% increase in other income and a $62,000 increase in net interest income; mostly offset by a $215,000 or 5.2% increase in other operating expenses.

For the six months ended June 30, 2006, net income was $2,685,000, or $0.75 per diluted share, compared with $2,559,000, or $0.72 per diluted share for the first six months of 2005, an increase of 4.9%. Return on average assets was 1.13% and return on average equity was 14.65% for the first six months of 2006, compared with 1.16% and 15.77%, respectively, for the first six months of 2005. For the six month period, the growth in net income was primarily due to a $469,000 or 18.6% increase in other income and $246,000 or 2.6% increase in net interest income, partially offset by a $583,000 or 7.4% increase in total other expenses. The increase in other income for the six month period ended June 30, 2006 included $250,000 before taxes resulting from a gain on the cancellation of property usage rights.

Randy Ferrell, President and CEO of Fauquier Bankshares, Inc. and its primary subsidiary, The Fauquier Bank, commented, “We are very pleased to report record net income for the quarter and six months ended June 30, 2006 in the face of repeated increases in short-term interest rates and the flattening of the interest rate yield curve. We continue to generate high-performance returns on both assets and equity, and increase our fee income from wealth management and retail deposit business lines. ”

Net interest income increased $62,000 to $4.90 million for the quarter ended June 30, 2006 from $4.84 million for the quarter ended June 30, 2005. The increase in net interest income resulted from a 10.1% increase in total average earning assets from $410 million during the second quarter of 2005 to $451 million for the second quarter of 2006. This was partially offset by net interest margin decreasing to 4.34% for the June 2006 quarter compared with 4.72% for the June 2005 quarter. The efficiency ratio for the second quarter of 2006 was 67.5% compared with 66.6% for the second quarter of 2005. The efficiency ratio is computed by dividing non-interest expense by the sum of fully taxable equivalent net interest income and non-interest income, with the lower number being the more efficient.

Net loans and total deposits were $412.6 million and $403.3 million, respectively, at June 30, 2006, an increase of 17.1% and 4.8% since June 30, 2005, and 8.3% and 3.0% since December 31, 2005. Mr. Ferrell added, “We recently introduced a new line of “Free Checking” products on April 10, 2006, in order to better serve the growing population in our market. Each checking account is designed to meet the specific individual needs of our customers.  In addition, all of our new checking accounts offer free ATM access virtually anywhere in the United States and in most foreign countries, in which we reimburse our customers’ fees charged by other institutions up to 4 times a month.  We are the first bank in our community to offer such an innovative array of high-value products for our customers. ”

At June 30, 2006, Fauquier Bankshares’ Wealth Management Services division had approximately $295 million in assets under management, a growth of 10.6% from June 30, 2005. Mr. Ferrell commented, “We are well aware of the financial management needs of our growing market area, and are committed to be the primary provider of these value-added services which include estate planning, retirement planning, IRA and 529 savings and roll-overs as well as asset management and brokerage.”

Fauquier Bankshares and The Fauquier Bank had combined assets of $495.3 million and total shareholders’ equity of $37.1 million at June 30, 2006. Non-performing assets were $1,761,000 or 0.42% of total loans at June 30, 2006, compared with $243,000 or 0.07% of total loans one year earlier. Of the $1,761,000, approximately $970,000 has a 75% federal government guarantee from the Small Business Administration. Loan charge-offs, net of recoveries, totaled $42,000 and $46,000 for the second quarter of 2006 and 2005, respectively.

The Fauquier Bank, an independent, locally-owned, community bank, offers a full range of financial services, including internet banking, commercial, retail, insurance and wealth management services, through eight banking offices locations throughout Fauquier County and Manassas, Virginia. Additional information may be found by contacting us at www.fauquierbank.com or by calling: (800) 638-3798.

This press release may contain “forward-looking statements” as defined by federal securities laws. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates and the shape of the interest rate yield curve, general economic conditions, legislative/regulatory policies, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan and/or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in our market area, and accounting principles, policies and guidelines. Other risk factors are detailed from time to time in our Securities and Exchange Commission filings. Readers should consider these risks and uncertainties in evaluating our forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this press release.

Fauquier Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheets
	Unaudited			Audited
	June 30, 2006			December 31, 2005
Assets
Cash and due from banks	$	16,288,056		$	26,565,702
Interest-bearing deposits in other banks		556,535			680,013
Federal funds sold		9,000			493,000
Securities, at fair value		42,537,205			48,390,771
Loans, net of allowance for loan losses of $4,457,970 in 2006 and $4,288,931 in 2005		412,638,311			381,049,471
Bank premises and equipment, net		8,002,381			8,289,581
Accrued interest receivable		1,613,794			1,585,849
Other assets		13,632,813			14,191,023
Total assets		495,278,095			481,245,410
Liabilities
Deposits:
Noninterest-bearing		88,420,902			95,411,624
Interest-bearing		314,884,228			296,245,545
Total deposits		403,305,130			391,657,169
Federal funds purchased		17,000,000			5,000,000
Dividends payable		—			—
Federal Home Loan Bank advances		31,000,000			42,000,000
Company-obligated mandatorily redeemable capital securities		4,124,000			4,124,000
Other liabilities		2,777,157			2,885,096
Commitments and contingent liabilities		—			—
Total liabilities		458,206,287			445,666,265
Shareholders’ Equity
Common stock, par value, $3.13; authorized 8,000,000 shares; issued and outstanding, 2006, 3,475,085 shares; 2005, 3,441,129 shares		10,877,016			10,794,700
Retained earnings		27,031,130			25,440,838
Accumulated other comprehensive income (loss), net		(836,338	)		(656,393	)
Total shareholders’ equity		37,071,808			35,579,145
Total liabilities and shareholders’ equity	$	495,278,095		$	481,245,410

	Fauquier Bankshares, Inc. and Subsidiaries
	Consolidated Statements of Income
		(Unaudited)
	For the Six Months Ended June 30, 2006 and 2005
			2006		2005
Interest Income
Interest and fees on loans			$	13,328,784	$	11,074,630
Interest and dividends on securities available for sale:
Taxable interest income				813,322		990,477
Interest income exempt from federal income taxes				26,252		26,136
Dividends				121,995		85,499
Interest on federal funds sold				17,405		37,496
Interest on deposits in other banks				11,278		2,830
Total interest income				14,319,036		12,217,068
Interest Expense
Interest on deposits				3,417,674		2,242,295
Interest on federal funds purchased				204,450		26,886
Interest on Federal Home Loan Bank advances				882,437		422,103
Distribution on capital securities of subsidiary trust				172,723		129,600
Total interest expense				4,677,284		2,820,884
Net interest income				9,641,752		9,396,184
Provision for loan losses				300,000		333,750
Net interest income after provision for loan losses				9,341,752		9,062,434
Other Income
Wealth management income				663,881		602,368
Service charges on deposit accounts				1,359,452		1,301,520
Other service charges, commissions and income				725,405		625,562
Gain on sale of property rights				250,000		—
Total other income				2,998,738		2,529,450
Other Expenses
Salaries and benefits				4,504,823		4,132,226
Net occupancy expense of premises				503,801		463,318
Furniture and equipment				679,506		637,128
Other operating expenses				2,732,368		2,687,654
Loss on sale of securities				82,564		—
Total other expenses				8,503,062		7,920,326
Income before income taxes				3,837,428		3,671,558
Income tax expense				1,152,004		1,112,139
Net Income			$	2,685,424	$	2,559,419
Earnings per Share, basic			$	0.78	$	0.74
Earnings per Share, assuming dilution			$	0.75	$	0.72
Dividends per Share			$	0.365	$	0.31

	Fauquier Bankshares, Inc. and Subsidiaries
	Consolidated Statements of Income
	(Unaudited)
	For the Three Months Ended June 30, 2006 and 2005
		2006		2005
Interest Income
Interest and fees on loans		$	6,905,346	$	5,744,799
Interest and dividends on securities available for sale:
Taxable interest income			395,485		483,732
Interest income exempt from federal income taxes			13,129		13,054
Dividends			74,847		58,768
Interest on federal funds sold			2,763		30,345
Interest on deposits in other banks			6,303		1,309
Total interest income			7,397,873		6,332,007
Interest Expense
Interest on deposits			1,846,576		1,202,909
Interest on federal funds purchased			166,650		1,456
Interest on Federal Home Loan Bank advances			394,625		218,565
Distribution on capital securities of subsidiary trust			87,018		67,812
Total interest expense			2,494,869		1,490,742
Net interest income			4,903,004		4,841,265
Provision for loan losses			180,000		208,750
Net interest income after provision for loan losses			4,723,004		4,632,515
Other Income
Wealth management income			336,334		284,667
Service charges on deposit accounts			723,513		660,395
Other service charges, commissions and income			373,063		321,976
Gain on sale of property rights			—		—
Total other income			1,432,910		1,267,038
Other Expenses
Salaries and benefits			2,321,056		2,074,304
Net occupancy expense of premises			262,648		230,248
Furniture and equipment			347,787		319,841
Other operating expenses			1,383,916		1,476,442
Loss on sale of securities			—		—
Total other expenses			4,315,407		4,100,835
Income before income taxes			1,840,507		1,798,718
Income tax expense			552,695		549,567
Net Income		$	1,287,812	$	1,249,151
Earnings per Share, basic		$	0.37	$	0.36
Earnings per Share, assuming dilution		$	0.36	$	0.35
Dividends per Share		$	0.19	$	0.16

	Fauquier Bankshares, Inc.
	Selected Financial Data
							For the six months ended June
	For the three months ended June 30,						30,
	2006			2005			2006			2005
DOLLAR PER SHARE DATA:
Net income per share, basic	$	0.37		$	0.36		$	0.78		$	0.74
Net income per share, diluted	$	0.36		$	0.35		$	0.75		$	0.72
Book value at period end	$	10.67		$	9.77		$	10.67		$	9.77
PERFORMANCE RATIOS:
Net interest margin (1)		4.34	%		4.72	%		4.35	%		4.63	%
Return on average assets		1.06	%		1.12	%		1.13	%		1.16	%
Return on average equity		13.88	%		15.12	%		14.65	%		15.77	%
Efficiency ratio (2)		67.49	%		66.58	%		66.66	%		65.85	%
ASSET QUALITY RATIOS:
Allowance for loan losses to period
end loans, net		1.08	%		1.20	%		1.08	%		1.20	%
Non-performing assets to period end loans
and other real estate owned		0.42	%		0.07	%		0.42	%		0.07	%
Net charge-offs to average loans		0.02	%		0.03	%		0.02	%		0.03	%
CAPITAL RATIOS:
Leverage		8.60	%		8.51	%		8.60	%		8.51	%
Risk Based Capital Ratios:
Tier 1 capital		10.80	%		11.05	%		10.80	%		11.05	%
Total capital		11.95	%		12.30	%		11.95	%		12.30	%
(1)   Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning
assets and represents the Corporation’s net yield on its earning assets.
(2) Efficiency ratio is computed by dividing non-interest expense by the sum of fully taxable equivalent net
interest income and non-interest income.