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.