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 23, 1998
                                                        -------------------


                        SOUTH BRANCH VALLEY BANCORP, INC.
             (Exact name of registrant as specified in its charter)



  West Virginia                       0-16587                    55-0672148
  ------------------------------------------------------------------------------
  (State or Other                   (Commission                 (I.R.S. Employer
      Jurisdiction)                  File Number)                Identification)




                  310 North Main Street, Moorefield, WV, 26836
              ---------------------------------------------------- 
              (Address of principal executive offices) (Zip Code)





                                 (304) 538-2353
                                ----------------
              (Registrant's telephone number, including area code)




                                 Not Applicable
                               -----------------
      (Former name, address, and fiscal year, if changed since last report)






ITEM 5.  OTHER EVENTS

On December  31,  1998,  South Branch Valley  Bancorp,  Inc., a West Virginia
corporation (the "Registrant"), issued the following press release:

           SOUTH BRANCH VALLEY BANCORP, INC. ANNOUNCES ACQUISITION OF
               THREE GREENBRIER COUNTY, WEST VIRGINIA BRANCH BANKS

On December 23, 1998,  Capital  State Bank,  Inc., a subsidiary  of South Branch
Valley Bancorp, Inc. of Moorefield,  West Virginia, entered into an agreement to
purchase  three branch banking  facilities  located in Greenbrier  County,  West
Virginia.  The purchase  includes a branch of  Greenbrier  Valley  National Bank
located  in  Rainelle  and two First  State  Bank & Trust  branches  located  in
Rainelle and Rupert.  Greenbrier Valley National Bank is a subsidiary of Horizon
Bancorp,  Inc.,  and First State Bank & Trust is a  subsidiary  of City  Holding
Company.  The  acquisition  stems from the  divestiture of branches  required by
Federal regulators to avoid a market  concentration in loans and deposits in the
western  Greenbrier County area that would have resulted from City Holding's and
Horizon's  pending merger.  The transaction is expected to be completed in April
1999, subject to approval by the appropriate  regulatory  authorities,  and will
include the  facilities and associated  loan and deposit  accounts.  The offices
will be operated as branches of Capital State Bank,  Inc.  Total deposits of the
branches  approximate  $46.5  million and total loans  approximate  $11 million.
Under the  terms of the  purchase  agreement,  Capital  State  will  assume  the
deposits and acquire the loans of the branch offices. The total consideration to
be paid is  anticipated  to be  approximately  $3.4  million and will be finally
determined  at closing based upon the total  deposits  assumed plus the seller's
net book value of the branch  offices  and  equipment.  South  Branch will offer
positions to all  Greenbrier  Valley  National Bank and First State Bank & Trust
employees in the affected branches following completion of the sale.

H. Charles Maddy, III,  President & CEO of South Branch and a native of Rainelle
stated, "The purchase of these branches represent an outstanding opportunity for
South  Branch to continue to expand its presence in and  commitment  to new West
Virginia  markets.  We look  forward to building a strong  partnership  with new
customers  and new  communities  through  exceptional  personal  service,  sound
financial solutions and banking convenience."

South Branch Valley Bancorp, Inc. is a bank holding company with total assets of
$193  million.  South Branch  operates  five banking  locations  through its two
wholly owned subsidiary banks,  South Branch Valley National Bank  headquartered
in  Moorefield,  West Virginia and Capital  State Bank,  Inc.  headquartered  in
Charleston,  West Virginia. In addition, the Company is presently organizing the
Shenandoah  Valley National Bank, a proposed bank and subsidiary of South Branch
which is expected to open in  Winchester,  Virginia  during  first  quarter 1999
following receipt of regulatory approvals.


SIGNATURE

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 thereunto duly authorized.

                                               SOUTH BRANCH VALLEY BANCORP, INC.


Date   December  31, 1998                      By /s/ Robert S. Tissue          
     ------------------------                  ---------------------------------
                                               Robert S. Tissue
                                               Chief Financial Officer