StellarOne Corporation Declares Quarterly Cash Dividend

StellarOne Corporation Declares Quarterly Cash Dividend

CHARLOTTESVILLE, Va., July 25, 2012 (GLOBE NEWSWIRE) -- StellarOne Corporation
(Nasdaq:STEL) (StellarOne), announced today that its Board of Directors
approved a quarterly cash dividend in the amount of $0.06 per share payable on
August 27, 2012 to shareholders of record as of August 7, 2012. The payment
represents an annual yield to shareholders of approximately 2.0% based on the
closing price of StellarOne stock on July 24, 2012.

Commenting on the dividend announcement, O. R. Barham, Jr., President and
Chief Executive Officer said, "We are very close to replenishing our dividend
paying capacity that was impacted by our TARP repayment late in 2011, and
believe that we can increase the dividend in the coming quarters given our
capital levels and earnings momentum. Our current expectation is to return to
historical payout ratios as a percentage of normalized earnings over time."

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. Its sole banking subsidiary, StellarOne Bank, operates
over 50 full-service financial centers, two loan production offices, and over
60 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 markets
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. For
additional information, please refer to StellarOne's filings with the
Securities and Exchange Commission, which may be accessed at

CONTACT: Jeffrey W. Farrar
         Executive Vice President and CFO
         (434) 964-2217
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