8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 3, 2011

StellarOne Corporation

(Exact name of registrant as specified in its charter)

Commission File Number:  000-22283

Virginia (State or other jurisdiction of incorporation) 54-1829288 (IRS Employer Identification No.)

590 Peter Jefferson Parkway, Suite 250

Charlottesville, Virginia 22911

(Address of principal offices, including zip code)

(434) 964-2211

(Registrant’s telephone number, including area code)

 (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01Other Events.

On November 3, 2011, StellarOne Corporation (NASDAQ: STEL) (“StellarOne”) through its banking subsidiary, StellarOne Bank, has entered into an asset sale agreement with First Bank located in Lexington, Tennessee to sell its wholesale mortgage banking business located in Greer, South Carolina.  A press release announcing the Company’s sale of its wholesale mortgage banking business is furnished as exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01.            Financial Statements and Exhibits.

Exhibit 99.1:  Press Release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	StellarOne Corporation
Date: November 3, 2011	/s/ Jeffrey W. Farrar
	Jeffrey W. Farrar
	Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
Ex-99.1	Press release, dated November 3, 2011

EX-99.1

FOR IMMEDIATE RELEASE

Contact:

Jeffrey W. Farrar

Executive Vice President and CFO

(434) 964-2217

jfarrar@stellarone.com

StellarOne Bank Announces Sale of Wholesale Mortgage Unit

Charlottesville, VA, November 3, 2011 – StellarOne Corporation (NASDAQ: STEL) (“StellarOne”) through its banking subsidiary, StellarOne Bank, has entered into an asset sale agreement with First Bank located in Lexington, Tennessee to sell its wholesale mortgage banking business located in Greer, South Carolina. The agreement calls for the purchase of net assets, goodwill and going concern value. For the nine months ended September 30, 2011, the wholesale division had gross revenues of $2.3 million and direct operating expenses of $1.9 million. The transaction is expected to close by year end.

“This divestiture is consistent with our intended business strategy of streamlining our business structure to maximize our ability to grow revenues and improve our effectiveness. The resources that this transaction will release shall enable us to more effectively grow our retail mortgage banking business and partner with our commercial, retail and wealth management lines of business. This will include expanding our mortgage presence in the Richmond market and our previously announced entry into the Virginia Beach/Tidewater market. We believe this transaction will improve our ability to manage the business strategy and associated return with our mortgage banking unit, and will help the Company achieve improved efficiency and growth objectives as set within our corporate strategy,” stated Jeffrey W. Farrar, Executive Vice President and Chief Financial Officer for StellarOne Corporation. “We are excited to find a good partner in First Bank, and believe the business unit and its dedicated professionals will serve them well in the future.”

StellarOne Bank is a traditional community bank, offering a full range of business and consumer banking services with 54 full service financial centers, one loan production office, and a suite of  ATMs serving the New River Valley, Roanoke Valley, Shenandoah Valley, and Central and North Central Virginia. For more information, please visit www.StellarOne.com.