|                        | ***NEWS***                    |
|-----------------------------|-------------------------------|
|                        |                          |
| FOR                RELEASE: | April                26, 2007 |
|                        |                          |

**WESTSTAR        FINANCIAL SERVICES CORPORATION**

**REPORTS        FIRST QUARTER EARNINGS UP 31%**

| **For                    Further Information, please contact:** | **Randall                    C. Hall**                          |
|-----------------------------------------------------------------|-----------------------------------------------------------------|
|                                                            | **Executive                    Vice President and Secretary**   |
|                                                            | **Chief                    Financial Officer**                  |
|                                                            | **Voice                    (828) 232-2904; Fax (828) 350-3904** |
|                                                            | **e-mail                    rhall@bankofasheville.com**         |

| 79                  Woodfin Place, Suite 102                | *www.bankofasheville.com* |
|-------------------------------------------------------------|---------------------------|
| Asheville,                  North Carolina  28801 |                      |

----

| **Weststar                                        Financial Services Corporation &                                        Subsidiary**Selected                                        Financial Data                              |   |                                                      |               |         |   |      |        |                                              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------------------|--------------|--------|-----------|-------------|---------------------------------------------------|--------|
|                                                                                                                                                                                                                                  |   | Three                                        Months Ended |               |         |   |      |
|                                                                                                                                                                                                                                  |   | March                                        31,          |     |
|                                                                                                                                                                                                                                  |   | **2007**                                                  |               |         | 2006   |      |        | *%                                        change* |   |
| Consolidated                                        earning summary:                                                                                                                                                                  |   |                                                      |               |         |   |      |        |                                              |   |
| Interest                                        income                                                                                                                                                                                |   | **$**                                                     | **3,093,799**      |         |   | $         | 2,379,643   |                                              |   |   | *30.0* | % |
| Interest                                        expense                                                                                                                                                                               |   | ** **                                                | **1,261,744**      |    |   | 869,657   |        |                                              |   | *45.1* | % |
| Net                                        interest income                                                                                                                                                                            |   | ** **                                                | **1,832,055**      |         |   |      | 1,509,986   |                                              |   |   | *21.3* | % |
| Provision                                        for loan losses                                                                                                                                                                      |   | ** **                                                | **17,855**         |    |   | 90,850    |        |                                              |   | *-80.4* | % |
| Net                                        interest income after                                                                                                                                                                      |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |
|  provision                                        for loan losses                                                                                                                                                                |   | ** **                                                | **1,814,200**      |         |   |      | 1,419,136   |                                              |   |   | *27.8* | % |
| Other                                        income                                                                                                                                                                                   |   | ** **                                                | **350,369**        |         |   |      | 285,203     |                                              |   |   | *22.9* | % |
| Other                                        expenses                                                                                                                                                                                 |   | ** **                                                | **1,375,270**      |    |   | 1,114,500 |        |                                              |   | *23.4* | % |
| Income                                        before taxes                                                                                                                                                                            |   | ** **                                                | **789,299**        |         |   |      | 589,839     |                                              |   |   | *33.8* | % |
| Income                                        taxes                                                                                                                                                                                   |   | ** **                                                | **289,268**        |    |   | 206,650   |        |                                              |   | *40.0* | % |
| Net                                        income                                                                                                                                                                                     |   | **$**                                                     | **500,031**        |    | $      | 383,189   |        |                                              |   | *30.5* | % |
| Earnings                                        per share - Basic*                                                                                                                                                                    |   | **$**                                                     | **0.30**           |         |   | $         | 0.23        |                                              |   |   | *30.4* | % |
| Earnings                                        per share - Diluted*                                                                                                                                                                  |   | ** **                                                | **0.27**           |    |   | 0.21      |        |                                              |   | *28.6* | % |
| Average                                        Shares - Basic*                                                                                                                                                                        |   | ** **                                                | **1,684,120**      |         |   |      | 1,681,290   |                                              |   |   | *0.2* | % |
| Average                                        Shares - Diluted*                                                                                                                                                                      |   | ** **                                                | **1,830,314**      |         |   |      | 1,806,700   |                                              |   |   | *1.3* | % |
| Consolidated                                        balance sheet data:                                                                                                                                                               |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |
| Total                                        Assets                                                                                                                                                                                   |   | **$**                                                     | **167,085,504**    |         |   | $         | 144,290,002 |                                              |   |   | *15.8* | % |
| Total                                        Deposits                                                                                                                                                                                 |   | ** **                                                | **143,988,696**    |         |   |      | 124,087,200 |                                              |   |   | *16.0* | % |
| Loans                                        (gross)                                                                                                                                                                                  |   | ** **                                                | **125,721,582**    |         |   |      | 105,453,650 |                                              |   |   | *19.2* | % |
| Investments                                                                                                                                                                                                                           |   | ** **                                                | **27,095,590**     |         |   |      | 26,512,936  |                                              |   |   | *2.2* | % |
| Shareholders'                                        Equity                                                                                                                                                                           |   | ** **                                                | **13,477,355**     |         |   |      | 10,978,270  |                                              |   |   | *22.8* | % |
| Consolidated                                        average balance sheet data:                                                                                                                                                       |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |
| Total                                        Assets                                                                                                                                                                                   |   | **$**                                                     | **160,622,510**    |         |   | $         | 138,775,727 |                                              |   |   | *15.7* | % |
| Total                                        Deposits                                                                                                                                                                                 |   | ** **                                                | **137,597,472**    |         |   |      | 116,849,318 |                                              |   |   | *17.8* | % |
| Loans                                        (gross)                                                                                                                                                                                  |   | ** **                                                | **123,606,201**    |         |   |      | 102,134,367 |                                              |   |   | *21.0* | % |
| Investments                                                                                                                                                                                                                           |   | ** **                                                | **26,232,122**     |         |   |      | 26,700,426  |                                              |   |   | *-1.8* | % |
| Shareholders'                                        Equity                                                                                                                                                                           |   | ** **                                                | **13,253,343**     |         |   |      | 10,926,691  |                                              |   |   | *21.3* | % |
| Consolidated                                        performance ratios:                                                                                                                                                               |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |
| Return                                        on average assets**                                                                                                                                                                     |   | ** **                                                | **1.26**           | **%**        |   |      | 1.12        | %                                                 |   |   |   |   |
| Return                                        on average equity**                                                                                                                                                                     |   | ** **                                                | **15.30**          | **%**        |   |      | 14.22       | %                                                 |   |   |   |   |
| Capital                                        to Assets                                                                                                                                                                              |   | ** **                                                | **8.25**           | **%**        |   |      | 7.87        | %                                                 |   |   |   |   |
| Consolidated                                        asset quality data and ratios:                                                                                                                                                    |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |
| Nonaccruing                                        loans                                                                                                                                                                              |   | **$**                                                     | **780,484**        |         |   | $         | 1,854,149   |                                              |   |   | *-57.9* | % |
| Accruing                                        loans 90 days past due                                                                                                                                                                |   | ** **                                                | **-**              |    |   | -         |        |                                              |   | *-* |   |
| Nonperforming                                        loans                                                                                                                                                                            |   | ** **                                                | **780,484**        |         |   |      | 1,854,149   |                                              |   |   | *-57.9* | % |
| Foreclosed                                        properties                                                                                                                                                                          |   | ** **                                                | **103,000**        |    |   | 139,750   |        |                                              |   | *-26.3* | % |
| Nonperforming                                        assets                                                                                                                                                                           |   | ** **                                                | **883,484**        |    |   | 1,993,899 |        |                                              |   | *-55.7* | % |
| Allowance                                        for loan losses                                                                                                                                                                      |   | ** **                                                | **1,888,059**      |    |   | 1,844,887 |        |                                              |   | *2.3* | % |
| Loans                                        charged off                                                                                                                                                                              |   | ** **                                                | **20,172**         |         |   |      | 24,454      |                                              |   |   | *-17.5* | % |
| Recoveries                                        of loans charged off                                                                                                                                                                |   | ** **                                                | **6,295**          |    |   | 18,114    |        |                                              |   | *-65.3* | % |
| Net                                        loan charge-offs                                                                                                                                                                           |   | ** **                                                | **13,877**         |    |   | 6,340     |        |                                              |   | *118.9* | % |
| Net                                        charge-offs to average loans**                                                                                                                                                             |   | ** **                                                | **0.05**           | **%**        |   |      | 0.03        | %                                                 |   |   | *80.9* | % |
| Nonperforming                                        loans to total assets                                                                                                                                                            |   | ** **                                                | **0.47**           | **%**        |   |      | 1.29        | %                                                 |   |   | *-63.7* | % |
| Allowance                                        coverage of nonperforming loans                                                                                                                                                      |   | ** **                                                | **241.91**         | **%**        |   |      | 99.50       | %                                                 |   |   | *143.1* | % |
| Allowance                                        for loan losses to gross loans                                                                                                                                                       |   | ** **                                                | **1.50**           | **%**        |   |      | 1.75        | %                                                 |   |   | *-14.2* | % |
|                                                                                                                                                                                                                                  |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |
| *The                                        share and per share amounts have been adjusted                                        to reflect the 6 for 5                                        stock splits distributed in May 2006. |   |
| **Annualized                                        based on number of days in the period.                                                                                                                                            |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |
|                                                                                                                                                                                                                                  |   |                                                      |               |         |   |      |        |                                              |   |   |   |   |

----

| **Weststar                                Financial Services Corporation &                                Subsidiary**                                                                        |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|-------------|--------|----------------------------------------|--------|-------------|-----------------------------------------|--------|--------|----------------------------------------|--------|--------|
| Supplemental                                Quarterly Financial Data                                                                                                                              |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |
|                                                                                                                                                                                              |   | Quarters                                Ended |        |
|                                                                                                                                                                                              |   | Mar                                31,        |        |   | Dec                                31, |   |        | Sept                                30, |   |   | Jun                                30, |   |   | Mar                                31, |   |
|                                                                                                                                                                                              |   | 2007                                          |        |   | 2006                                   |   |        | 2006                                    |   |   | 2006                                   |   |   | 2006 |   |
| Consolidated                                earning summary:                                                                                                                                      |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |
| Interest                                income                                                                                                                                                    |   | $                                             | 3,093,799   |   |                                   | $      | 3,102,808   |                                    |   | $      | 2,969,677                              |   |   | $ | 2,669,060 |   |   | $ | 2,379,643 |   |
| Interest                                expense                                                                                                                                                   |   |                                          | 1,261,744   |   |                                   |   | 1,232,763   |                                    |   |   | 1,126,316                              |   |   |   | 967,215 |   |   |   | 869,657 |   |
| Net                                interest income                                                                                                                                                |   |                                          | 1,832,055   |   |                                   |   | 1,870,045   |                                    |   |   | 1,843,361                              |   |   |   | 1,701,845 |   |   |   | 1,509,986 |   |
| Provision                                for loan losses                                                                                                                                          |   |                                          | 17,855      |   |                                   |   | 71,445      |                                    |   |   | 60,750                                 |   |   |   | 61,600 |   |   |   | 90,850 |   |
| Net                                interest income after provision for loan losses                                                                                                                |   |                                          | 1,814,200   |   |                                   |   | 1,798,600   |                                    |   |   | 1,782,611                              |   |   |   | 1,640,245 |   |   |   | 1,419,136 |   |
| Other                                income                                                                                                                                                       |   |                                          | 350,369     |   |                                   |   | 472,841     |                                    |   |   | 384,026                                |   |   |   | 270,475 |   |   |   | 285,203 |   |
| Other                                expenses                                                                                                                                                     |   |                                          | 1,375,270   |   |                                   |   | 1,365,649   |                                    |   |   | 1,240,687                              |   |   |   | 1,193,891 |   |   |   | 1,114,500 |   |
| Income                                before taxes                                                                                                                                                |   |                                          | 789,299     |   |                                   |   | 905,792     |                                    |   |   | 915,950                                |   |   |   | 716,829 |   |   |   | 589,839 |   |
| Income                                taxes                                                                                                                                                       |   |                                          | 289,268     |   |                                   |   | 285,431     |                                    |   |   | 333,180                                |   |   |   | 250,417 |   |   |   | 206,650 |   |
| Net                                income                                                                                                                                                         |   | $                                             | 500,031     |   |                                   | $      | 620,361     |                                    |   | $      | 592,770                                |   |   | $ | 466,412 |   |   | $ | 383,189 |   |
| Earnings                                per share - Basic*                                                                                                                                        |   | $                                             | 0.30        |   |                                   | $      | 0.37        |                                    |   | $      | 0.35                                   |   |   | $ | 0.28 |   |   | $ | 0.23 |   |
| Earnings                                per share - Diluted*                                                                                                                                      |   |                                          | 0.27        |   |                                   |   | 0.34        |                                    |   |   | 0.33                                   |   |   |   | 0.26 |   |   |   | 0.21 |   |
| Average                                Shares - Basic*                                                                                                                                            |   |                                          | 1,684,120   |   |                                   |   | 1,681,399   |                                    |   |   | 1,681,290                              |   |   |   | 1,681,290 |   |   |   | 1,681,290 |   |
| Average                                Shares - Diluted*                                                                                                                                          |   |                                          | 1,830,314   |   |                                   |   | 1,825,334   |                                    |   |   | 1,821,738                              |   |   |   | 1,819,568 |   |   |   | 1,806,700 |   |
| Consolidated                                balance sheet data:                                                                                                                                   |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |
| Total                                Assets                                                                                                                                                       |   | $                                             | 167,085,504 |   |                                   | $      | 157,644,462 |                                    |   | $      | 153,070,037                            |   |   | $ | 147,330,128 |   |   | $ | 144,290,002 |   |
| Total                                Deposits                                                                                                                                                     |   |                                          | 143,988,696 |   |                                   |   | 134,871,081 |                                    |   |   | 127,629,905                            |   |   |   | 125,086,835 |   |   |   | 124,087,200 |   |
| Loans                                (gross)                                                                                                                                                      |   |                                          | 125,721,582 |   |                                   |   | 122,463,720 |                                    |   |   | 118,650,542                            |   |   |   | 110,747,031 |   |   |   | 105,453,650 |   |
| Investments                                                                                                                                                                                       |   |                                          | 27,095,590  |   |                                   |   | 26,241,010  |                                    |   |   | 25,711,065                             |   |   |   | 25,726,073 |   |   |   | 26,512,936 |   |
| Shareholders'                                Equity                                                                                                                                               |   |                                          | 13,477,355  |   |                                   |   | 12,972,853  |                                    |   |   | 12,336,153                             |   |   |   | 11,293,784 |   |   |   | 10,978,270 |   |
| Consolidated                                average balance sheet data:                                                                                                                           |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |
| Total                                Assets                                                                                                                                                       |   | $                                             | 160,622,510 |   |                                   | $      | 159,861,014 |                                    |   | $      | 151,974,619                            |   |   | $ | 141,740,816 |   |   | $ | 138,775,727 |   |
| Total                                Deposits                                                                                                                                                     |   |                                          | 137,597,472 |   |                                   |   | 136,218,131 |                                    |   |   | 128,671,518                            |   |   |   | 120,331,869 |   |   |   | 116,849,318 |   |
| Loans                                (gross)                                                                                                                                                      |   |                                          | 123,606,201 |   |                                   |   | 120,915,750 |                                    |   |   | 115,642,714                            |   |   |   | 106,232,569 |   |   |   | 102,134,367 |   |
| Investments                                                                                                                                                                                       |   |                                          | 26,232,122  |   |                                   |   | 25,597,572  |                                    |   |   | 25,665,897                             |   |   |   | 26,993,665 |   |   |   | 26,700,426 |   |
| Shareholders'                                Equity                                                                                                                                               |   |                                          | 13,253,343  |   |                                   |   | 12,626,175  |                                    |   |   | 11,854,678                             |   |   |   | 11,239,611 |   |   |   | 10,926,691 |   |
| Consolidated                                performance ratios:                                                                                                                                   |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |
| Return                                on average assets**                                                                                                                                         |   |                                          | 1.26        | %      |                                   |   | 1.54        | %                                       |   |   | 1.55                                   | %      |   |   | 1.32 | % |   |   | 1.12 | % |
| Return                                on average equity**                                                                                                                                         |   |                                          | 15.30       | %      |                                   |   | 19.49       | %                                       |   |   | 19.84                                  | %      |   |   | 16.64 | % |   |   | 14.22 | % |
| Capital                                to Assets                                                                                                                                                  |   |                                          | 8.25        | %      |                                   |   | 7.90        | %                                       |   |   | 7.80                                   | %      |   |   | 7.93 | % |   |   | 7.87 | % |
| Consolidated                                asset quality data and ratios:                                                                                                                        |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |
| Nonaccruing                                loans                                                                                                                                                  |   | $                                             | 780,484     |   |                                   | $      | 975,190     |                                    |   | $      | 937,304                                |   |   | $ | 1,131,397 |   |   | $ | 1,854,149 |   |
| Accruing                                loans 90 days past due                                                                                                                                    |   |                                          | -           |   |                                   |   | -           |                                    |   |   | -                                      |   |   |   | - |   |   |   | - |   |
|  Nonperforming                                loans                                                                                                                                          |   |                                          | 780,484     |   |                                   |   | 975,190     |                                    |   |   | 937,304                                |   |   |   | 1,131,397 |   |   |   | 1,854,149 |   |
| Foreclosed                                properties                                                                                                                                              |   |                                          | 103,000     |   |                                   |   | 106,000     |                                    |   |   | 136,177                                |   |   |   | 142,000 |   |   |   | 139,750 |   |
|  Nonperforming                                assets                                                                                                                                         |   |                                          | 883,484     |   |                                   |   | 1,081,190   |                                    |   |   | 1,073,481                              |   |   |   | 1,273,397 |   |   |   | 1,993,899 |   |
| Allowance                                for loan losses                                                                                                                                          |   |                                          | 1,888,059   |   |                                   |   | 1,884,080   |                                    |   |   | 1,862,809                              |   |   |   | 1,830,113 |   |   |   | 1,844,887 |   |
| Loans                                charged off                                                                                                                                                  |   |                                          | 20,172      |   |                                   |   | 58,768      |                                    |   |   | 42,601                                 |   |   |   | 92,632 |   |   |   | 24,454 |   |
| Recoveries                                of loans charged off                                                                                                                                    |   |                                          | 6,295       |   |                                   |   | 8,593       |                                    |   |   | 14,548                                 |   |   |   | 16,258 |   |   |   | 18,114 |   |
| Net                                loan charge-offs                                                                                                                                               |   |                                          | 13,877      |   |                                   |   | 50,175      |                                    |   |   | 28,053                                 |   |   |   | 76,374 |   |   |   | 6,340 |   |
| Net                                charge-offs to average loans**                                                                                                                                 |   |                                          | 0.05        | %      |                                   |   | 0.16        | %                                       |   |   | 0.10                                   | %      |   |   | 0.29 | % |   |   | 0.03 | % |
| Nonperforming                                loans to total assets                                                                                                                                |   |                                          | 0.47        | %      |                                   |   | 0.62        | %                                       |   |   | 0.61                                   | %      |   |   | 0.77 | % |   |   | 1.29 | % |
| Allowance                                coverage of nonperforming loans                                                                                                                          |   |                                          | 241.91      | %      |                                   |   | 193.20      | %                                       |   |   | 198.74                                 | %      |   |   | 161.76 | % |   |   | 99.50 | % |
| Allowance                                for loan losses to gross loans                                                                                                                           |   |                                          | 1.50        | %      |                                   |   | 1.54        | %                                       |   |   | 1.57                                   | %      |   |   | 1.65 | % |   |   | 1.75 | % |
|                                                                                                                                                                                              |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |   |   |   |   |   |
| *The                                share and per share amounts have been adjusted to                                reflect the 6 for 5                                stock splits in May 2006. |   |                                          |        |   |                                   |
| **                                Annualized based on number of days in the period.                                                                                                               |   |                                          |        |   |                                   |   |        |                                    |   |   |                                   |   |   |   |   |   |   |