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): December 28, 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 December 28, 2011, StellarOne Corporation (NASDAQ: STEL) ("Company") announced that it redeemed its remaining 22,500 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("CPP Preferred Stock"), it sold to the U.S. Department of the Treasury on December 19, 2008 as part of the Capital Purchase Program established by the Treasury under the Emergency Economic Stabilization Act of 2008.  A press release announcing the Company’s repurchase of the Preferred Stock 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: December 28, 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 December 28, 2011.

EX-99.1

FOR IMMEDIATE RELEASE

Contact:      Jeffrey W. Farrar

Executive Vice President and CFO

(434) 964-2217

jfarrar@stellarone.com

StellarOne Corporation Completes TARP Repayment

Charlottesville, VA, December 28, 2011 – StellarOne Corporation (NASDAQ: STEL) (”Company”) today announced that it has redeemed its remaining 22,500 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A (“CPP Preferred Stock”), it sold to the U.S. Department of the Treasury on December 19, 2008 as part of the Capital Purchase Program established by the Treasury under the Emergency Economic Stabilization Act of 2008. 

 “With the redemption of the CPP Preferred Stock, we are extremely pleased to repay these funds while maintaining our strong capital position without issuing any common stock or incurring holding company debt,” said O.R. Barham, Jr., President and Chief Executive Officer of StellarOne Corporation. “Redemption of the CPP Preferred Stock is very good news for our shareholders, since the Company will no longer pay the 5% preferred stock dividend. It is also good news for our employees, whereas the repayment relieves the Company of some additional regulatory burdens.”

The CPP Preferred Stock that the Company repurchased for $22,500,000 had a current carrying value of $21.9 million (net of $628 thousand unaccreted discount) on the Company’s consolidated balance sheet. As a result of the repurchase, the Company will accelerate the accretion of the $628 thousand discount, recognize unpaid dividends of $134 thousand and record a total reduction in shareholders’ equity of $22.6 million. This adjustment is expected to reduce fourth quarter earnings available to common shareholders by approximately $0.03 cents per share.

StellarOne Corporation, through its subsidiary bank, StellarOne Bank, is a traditional community bank, offering a full range of business and consumer banking services with 54 full service financial centers and 66 ATMs serving the New River Valley, Roanoke Valley, Shenandoah Valley, and Central and North Central Virginia. For more information, please visit www.StellarOne.com.