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):  07/13/2009

StellarOne Corporation

(Exact name of registrant as specified in its charter)

Commission File Number:  000-22283

VA	541829288
(State or other jurisdiction of	(IRS Employer
incorporation)	Identification No.)

590 Peter Jefferson Parkway, Suite 250

Charlottesville, VA 22911

(Address of principal executive 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:

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

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

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

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

Item 1.01.    Entry into a Material Definitive Agreement

On July 13, 2009, StellarOne Corporation issued a press release announcing that its subsidiary, StellarOne Bank, signed a purchase and assumption agreement to sell a financial service center located in Woodstock, Virginia to First Bank, with principal offices located in Strasberg, Virginia. The text of the press release is included as Exhibit 99.1 to this report and is incorporated by reference.

The branch sale, which is subject to regulatory approval, includes all deposit accounts, fixed assets, and real estate. At June 30, 2009, the branch reported deposits of $15.2 million. The proposed transaction is expected to close in the fourth quarter of 2009.

Item 9.01.    Financial Statements and Exhibits

Exhibit 99.1: Press Release dated July 13, 2009.

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: July 13, 2009	By:	/s/    Jeffrey W. Farrar
		Jeffrey W. Farrar
		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
EX-99.1	Press Release

EX-99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact:

Jeffrey W. Farrar

Executive Vice President and CFO

(434) 964-2217

JFarrar@stellarone.com

STELLARONE CORPORATION

ANNOUNCES THE SALE OF A FINANCIAL SERVICE CENTER

Charlottesville, VA, July 13, 2009 - StellarOne Corporation (NASDAQ: STEL) (StellarOne) today announced that its subsidiary, StellarOne Bank, has signed a purchase and assumption agreement to sell a financial service center located in Woodstock, Virginia to First Bank, with principal offices located in Strasburg, Virginia.

The branch sale, which is subject to regulatory approval, includes all deposit accounts, fixed assets, and real estate. At June 30, 2009, the branch reported deposits of $15.2 million. The proposed transaction is expected to close in the fourth quarter of 2009.

"This transaction reflects our efforts to improve synergy and cost efficiency for our franchise, which ultimately creates value for our shareholders," said StellarOne Executive Vice President and Chief Financial Officer, Jeffrey W. Farrar. "While certainly a successful and profitable financial center, the Woodstock location did not fit well with our existing franchise or long-term strategies. This center was part of an eight- branch cluster purchased from the former First Virginia Bank in 2003. We are confident that First Bank will provide our Woodstock customers in-market convenience and an equally high level of community banking service."

About StellarOne

StellarOne Corporation is a traditional community bank, offering a full range of business and consumer banking services, including trust and wealth management services. Through the activities of its sole subsidiary, StellarOne Bank, StellarOne operates 59 full-service financial centers, one loan production office, and 66 ATMs serving the New River Valley, Roanoke Valley, Shenandoah Valley, and Central and North Central Virginia.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results, or those anticipated. When we use words such as "believes," "expects," "anticipates" or similar expressions, we are making forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date thereof. StellarOne wishes to caution the reader that factors, such as those listed below, in some cases have affected and could affect StellarOne's actual results, causing actual results to differ materially from those in any forward-looking statement. These factors include: (i) expected cost savings from StellarOne's acquisitions and dispositions, (ii) competitive pressure in the banking industry or in StellarOne's market s may increase significantly, (iii) changes in the interest rate environment may reduce margins, (iv) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, credit quality deterioration, (v) changes may occur in banking legislation and regulation, (vi) changes may occur in general business conditions, and (vii) changes may occur in the securities markets. Please refer to StellarOne's filings with the Securities and Exchange Commission for additional information, which may be accessed at www.StellarOne.com.