StellarOne Corporation Announces Change in Results for Third Quarter

CHARLOTTESVILLE, Va., Nov. 9, 2009 (GLOBE NEWSWIRE) -- StellarOne Corporation
(Nasdaq:STEL) (StellarOne), the parent company of StellarOne Bank, reported
today that the Company will revise its third quarter loss to reflect a non-cash
impairment charge in the amount of $1.9 million related to the common stock of
several Virginia and North Carolina based community banks held in its investment
portfolio. With this non-cash impairment charge, the carrying value of such
investments is reduced to $1.1 million. The timing of this decision is based on
recent discussions with the staff of the Securities and Exchange Commission
(SEC) regarding existing accounting guidance on accounting for equity
securities, and interpretations as to when unrealized losses, length of loss
period, and anticipated recovery period for such securities warrant a charge for
other-than-temporary impairment. Management and the Board of Directors
determined it necessary to revise policy in light of these discussions and
record this impairment in the third quarter. The adjusted net loss applicable to
common shareholders for the third quarter of 2009 amounts to $9.4 million or
$0.41 per diluted common share and $10.4 million or $0.46 per diluted common
share for the nine months ended September 30, 2009.

"We acknowledge the need to record an impairment charge on these bank equity
investments in light of the current environment, including the extended
devaluation period for bank stocks and the length of anticipated recovery
period. We continue to view these bank stocks as well-managed companies with
solid geographic franchises that will recover in an improving economy," said O.
R. Barham, Jr., President and Chief Executive Officer.

StellarOne's capital position remains strong and essentially unchanged from the
previous announcement, with a tangible common equity ratio of 9.35% at the end
of the quarter. Tier one capital to risked-weighted assets adjusted was 13.15%
and total capital to risk-weighted assets stood at 14.41%, both well above
regulatory minimums to be considered well-capitalized.

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 57 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) deterioration in the
financial condition of borrowers resulting in significant increases in loan
losses and provisions for those losses, (ii) continuation of the historically
low short-term interest rate environment, (iii) the inability of the Company to
continue to grow its loan portfolio, (iv) rapid fluctuations or unanticipated
changes in interest rates, (v) the development of any new market, (vi) a merger
or acquisition, (vii) any activity in the capital markets that would cause the
Company to conclude that there was impairment of any asset including intangible
assets, (viii) the impact of governmental restrictions on entities participating
in the US Treasury Department Capital Purchase Program, (ix) the deterioration
in carrying amounts of impaired assets and other real estate, and (x) changes in
state and Federal legislation, regulations or policies applicable to banks and
other financial service providers, including regulatory or legislative
developments arising out of current unsettled conditions in the economy. Please
refer to StellarOne's filings with the Securities and Exchange Commission for
additional information, which may be accessed at www.StellarOne.com, under
"Investor Relations," "SEC Filings & Other Documents."

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CONTACT: Jeffrey W. Farrar, Executive Vice President and
Chief Financial Officer of StellarOne Corporation
(434) 964-2217
JFarrar@StellarOne.com