|                            |  NEWS                            |
|---------------------------------|---------------------------------------|
|  FOR              RELEASE: |  January                18, 2007 |

**WESTSTAR        FINANCIAL SERVICES CORPORATION**

**REPORTS        RECORD FOURTH QUARTER 2006 EARNINGS**

| **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 |            |   |   |                        | Twelve                  Months Ended |   |     |   |
|                                                                                                                                                                                 |   | December                  31,       |            |   |   |                        | December                  31,        |   |     |   |
|                                                                                                                                                                                 |   | **2006**                            |            | 2005   |   | *%                  change* |                                 |   | **2006** |   | 2005   |   | *%                  change* |   |
| Consolidated                  earning summary:                                                                                                                                       |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                                                                                                                                     |   | **$**                               | **3,117,718**   |   | $      | 2,183,793                   |                                 |   | *42.8*   | *%*    |   | **$**  | **11,170,672** |   | $ | 7,726,454 |   |   | *44.6* | *%* |
| Interest                  expense                                                                                                                                                    |   |                                | **1,232,763**   |   | $      | 743,979                     |                                 |   | *65.7*   | *%*    |   |   | **4,195,951** |   |   | 2,538,483 |   |   | *65.3* | *%* |
| Net                  interest income                                                                                                                                                 |   |                                | **1,884,955**   |   |   | 1,439,814                   |                                 |   | *30.9*   | *%*    |   |   | **6,974,721** |   |   | 5,187,971 |   |   | *34.4* | *%* |
| Provision                  for loan losses                                                                                                                                           |   |                                | **71,445**      |   | $      | 65,500                      |                                 |   | *9.1*    | *%*    |   |   | **284,645** |   |   | 466,270 |   |   | *-39.0* | *%* |
| Net                  interest income after                                                                                                                                           |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |   |   |   |   |
| provision                  for loan losses                                                                                                                                           |   |                                | **1,813,510**   |   |   | 1,374,314                   |                                 |   | *32.0*   | *%*    |   |   | **6,690,076** |   |   | 4,721,701 |   |   | *41.7* | *%* |
| Other                  income                                                                                                                                                        |   |                                | **457,931**     |   | $      | 302,234                     |                                 |   | *51.5*   | *%*    |   |   | **1,363,061** |   |   | 1,431,886 |   |   | *-4.8* | *%* |
| Other                  expenses                                                                                                                                                      |   |                                | **1,365,649**   |   | $      | 1,091,754                   |                                 |   | *25.1*   | *%*    |   |   | **4,914,727** |   |   | 4,464,811 |   |   | *10.1* | *%* |
| Income                  before taxes                                                                                                                                                 |   |                                | **905,792**     |   |   | 584,794                     |                                 |   | *54.9*   | *%*    |   |   | **3,138,410** |   |   | 1,688,776 |   |   | *85.8* | *%* |
| Income                  taxes                                                                                                                                                        |   |                                | **285,431**     |   | $      | 202,515                     |                                 |   | *40.9*   | *%*    |   |   | **1,075,678** |   |   | 610,025 |   |   | *76.3* | *%* |
| Net                  income                                                                                                                                                          |   | **$**                               | **620,361**     |   | $      | 382,279                     |                                 |   | *62.3*   | *%*    |   | **$**  | **2,062,732** |   | $ | 1,078,751 |   |   | *91.2* | *%* |
| Earnings                  per share - Basic*                                                                                                                                         |   | **$**                               | **0.37**        |   | $      | 0.23                        |                                 |   | *60.9*   | *%*    |   | **$**  | **1.23** |   | $ | 0.64 |   |   | *92.2* | *%* |
| Earnings                  per share - Diluted*                                                                                                                                       |   |                                | **0.34**        |   |   | 0.21                        |                                 |   | *61.9*   | *%*    |   |   | **1.13** |   |   | 0.60 |   |   | *88.3* | *%* |
| Average                  Shares - Basic*                                                                                                                                             |   |                                | **1,681,399**   |   |   | 1,680,425                   |                                 |   | *0.1*    | *%*    |   |   | **1,681,317** |   |   | 1,679,968 |   |   | *0.1* | *%* |
| Average                  Shares - Diluted*                                                                                                                                           |   |                                | **1,825,334**   |   |   | 1,800,564                   |                                 |   | *1.4*    | *%*    |   |   | **1,818,687** |   |   | 1,801,455 |   |   | *1.0* | *%* |
| Consolidated                  balance sheet data:                                                                                                                                    |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Total                  Assets                                                                                                                                                        |   |                                |            |   |   |                        |                                 |   |     |   |   | **$**  | **157,644,462** |   | $ | 138,753,535 |   |   | *13.6* | *%* |
| Total                  Deposits                                                                                                                                                      |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **134,871,081** |   |   | 119,112,899 |   |   | *13.2* | *%* |
| Loans                  (gross)                                                                                                                                                       |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **122,463,720** |   |   | 100,493,602 |   |   | *21.9* | *%* |
| Investments                                                                                                                                                                          |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **26,241,010** |   |   | 27,824,748 |   |   | *-5.7* | *%* |
| Shareholders'                  Equity                                                                                                                                                |   |                                |       |   |   |                        |                                 |   |     |   |   |   | **12,972,853** |   |   | 10,596,543 |   |   | *22.4* | *%* |
| Consolidated                  average balance sheet data:                                                                                                                            |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Total                  Assets                                                                                                                                                        |   | **$**                               | **159,861,014** |   | $      | 134,188,336                 |                                 |   | *19.1*   | *%*    |   | **$**  | **148,160,685** |   | $ | 132,449,514 |   |   | *11.9* | *%* |
| Total                  Deposits                                                                                                                                                      |   |                                | **136,218,131** |   |   | 114,283,139                 |                                 |   | *19.2*   | *%*    |   |   | **125,581,887** |   |   | 113,237,854 |   |   | *10.9* | *%* |
| Loans                  (gross)                                                                                                                                                       |   |                                | **120,915,750** |   |   | 96,187,785                  |                                 |   | *25.7*   | *%*    |   |   | **111,294,892** |   |   | 90,595,910 |   |   | *22.9* | *%* |
| Investments                                                                                                                                                                          |   |                                | **25,597,572**  |   |   | 27,158,388                  |                                 |   | *-5.8*   | *%*    |   |   | **26,042,834** |   |   | 24,725,434 |   |   | *5.3* | *%* |
| Shareholders'                  Equity                                                                                                                                                |   |                                | **12,626,175**  |   |   | 10,513,514                  |                                 |   | *20.1*   | *%*    |   |   | **11,666,996** |   |   | 10,114,588 |   |   | *15.4* | *%* |
| Consolidated                  performance ratios:                                                                                                                                    |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Return                  on average assets**                                                                                                                                          |   |                                | **1.54**        | **%**  |   | 1.13                        | %                                    |   |     |   |   |   | **1.39** | **%** |   | 0.81 | % |   |   |   |
| Return                  on average equity**                                                                                                                                          |   |                                | **19.49**       | **%**  |   | 14.43                       | %                                    |   |     |   |   |   | **17.68** | **%** |   | 10.67 | % |   |   |   |
| Capital                  to Assets                                                                                                                                                   |   |                                | **7.90**        | **%**  |   | 7.83                        | %                                    |   |     |   |   |   | **7.87** | **%** |   | 7.64 | % |   |   |   |
| Consolidated                  asset quality data and ratios:                                                                                                                         |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccruing                  loans                                                                                                                                                   |   |                                |            |   |   |                        |                                 |   |     |   |   | **$**  | **975,190** |   | $ | 1,754,653 |   |   | *-44.4* | *%* |
| Accruing                  loans 90 days past due                                                                                                                                     |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **-** |   |   | - |   |   | *-* |   |
| Nonperforming                  loans                                                                                                                                                 |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **975,190** |   |   | 1,754,653 |   |   | *-44.4* | *%* |
| Foreclosed                  properties                                                                                                                                               |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **106,000** |   |   | 127,000 |   |   | *-16.5* | *%* |
| Nonperforming                  assets                                                                                                                                                |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **1,081,190** |   |   | 1,881,653 |   |   | *-42.5* | *%* |
| Allowance                  for loan losses                                                                                                                                           |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **1,884,080** |   |   | 1,760,377 |   |   | *7.0* | *%* |
| Loans                  charged off                                                                                                                                                   |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **218,455** |   |   | 369,846 |   |   | *-40.9* | *%* |
| Recoveries                  of loans charged off                                                                                                                                     |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **57,513** |   |   | 55,587 |   |   | *3.5* | *%* |
| Net                  loan charge-offs                                                                                                                                                |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **160,942** |   |   | 314,259 |   |   | *-48.8* | *%* |
| Net                  charge-offs to average loans**                                                                                                                                  |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **0.14** | **%** |   | 0.35 | % |   | *-58.3* | *%* |
| Nonperforming                  loans to total assets                                                                                                                                 |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **0.62** | **%** |   | 1.26 | % |   | *-51.1* | *%* |
| Allowance                  coverage of nonperforming loans                                                                                                                           |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **193.20** | **%** |   | 100.33 | % |   | *92.6* | *%* |
| Allowance                  for loan losses to gross loans                                                                                                                            |   |                                |            |   |   |                        |                                 |   |     |   |   |   | **1.54** | **%** |   | 1.75 | % |   | *-12.2* | *%* |
|                                                                                                                                                                                 |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |   |   |   |   |
| *The                  share and per share amounts have been adjusted to reflect the 6                  for 5                  stock splits distributed in May 2006 and January 2005. |   |                                |            |
| **Annualized                  based on number of days in the period.                                                                                                                 |   |                                |            |   |   |                        |                                 |   |     |   |   |   |   |   |   |   |

----

| **Weststar                  Financial Services Corporation &                  Subsidiary**                                                                                       |   |                            |            |                      |   |                     |   |                     |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------------|---------------------------|--------|--------------------------|--------|--------------------------|-------------|
| Supplemental                  Quarterly Financial Data                                                                                                                               |   |                            |            |                      |   |                     |   |                     |        |   |   |
|                                                                                                                                                                                 |   | Quarters                  Ended |            |
|                                                                                                                                                                                 |   | **Dec                  31,**    |            | Sept                  30, |   | Jun                  30, |   | Mar                  31, |        | Dec                  31, |   |
|                                                                                                                                                                                 |   | **2006**                        |            | 2006                      |   | 2006                     |   | 2006                     |        | 2005 |   |
| Consolidated                  earning summary:                                                                                                                                       |   |                            |            |                      |   |                     |   |                     |        |   |   |   |   |   |   |   |
| Interest                  income                                                                                                                                                     |   | **$**                           | **3,117,718**   |                      | $      | 2,980,888                |   | $                        | 2,681,234   |   | $ | 2,390,832 |   | $ | 2,183,793 |   |
| Interest                  expense                                                                                                                                                    |   |                            | **1,232,763**   |                      |   | 1,126,316                |   |                     | 967,215     |   |   | 869,657 |   |   | 743,979 |   |
| Net                  interest income                                                                                                                                                 |   |                            | **1,884,955**   |                      |   | 1,854,572                |   |                     | 1,714,019   |   |   | 1,521,175 |   |   | 1,439,814 |   |
| Provision                  for loan losses                                                                                                                                           |   |                            | **71,445**      |                      |   | 60,750                   |   |                     | 61,600      |   |   | 90,850 |   |   | 65,500 |   |
| Net                  interest income after provision for loan loss                                                                                                                   |   |                            | **1,813,510**   |                      |   | 1,793,822                |   |                     | 1,652,419   |   |   | 1,430,325 |   |   | 1,374,314 |   |
| Other                  income                                                                                                                                                        |   |                            | **457,931**     |                      |   | 372,815                  |   |                     | 258,301     |   |   | 274,014 |   |   | 302,234 |   |
| Other                  expenses                                                                                                                                                      |   |                            | **1,365,649**   |                      |   | 1,240,687                |   |                     | 1,193,891   |   |   | 1,114,500 |   |   | 1,091,754 |   |
| Income                  before taxes                                                                                                                                                 |   |                            | **905,792**     |                      |   | 925,950                  |   |                     | 716,829     |   |   | 589,839 |   |   | 584,794 |   |
| Income                  taxes                                                                                                                                                        |   |                            | **285,431**     |                      |   | 333,180                  |   |                     | 250,417     |   |   | 206,650 |   |   | 202,515 |   |
| Net                  income                                                                                                                                                          |   | **$**                           | **620,361**     |                      | $      | 592,770                  |   | $                        | 466,412     |   | $ | 383,189 |   | $ | 382,279 |   |
| Earnings                  per share - Basic*                                                                                                                                         |   | **$**                           | **0.37**        |                      | $      | 0.35                     |   | $                        | 0.28        |   | $ | 0.23 |   | $ | 0.23 |   |
| Earnings                  per share - Diluted*                                                                                                                                       |   |                            | **0.34**        |                      |   | 0.33                     |   |                     | 0.26        |   |   | 0.21 |   |   | 0.21 |   |
| Average                  Shares - Basic*                                                                                                                                             |   |                            | **1,681,399**   |                      |   | 1,681,290                |   |                     | 1,681,290   |   |   | 1,681,290 |   |   | 1,680,425 |   |
| Average                  Shares - Diluted*                                                                                                                                           |   |                            | **1,825,334**   |                      |   | 1,821,738                |   |                     | 1,819,568   |   |   | 1,806,700 |   |   | 1,800,564 |   |
| Consolidated                  balance sheet data:                                                                                                                                    |   |                            |            |                      |   |                     |   |                     |        |   |   |   |   |   |   |   |
| Total                  Assets                                                                                                                                                        |   | **$**                           | **157,644,462** |                      | $      | 153,070,037              |   | $                        | 147,330,128 |   | $ | 144,290,002 |   | $ | 138,753,535 |   |
| Total                  Deposits                                                                                                                                                      |   |                            | **134,871,081** |                      |   | 127,629,905              |   |                     | 125,086,835 |   |   | 124,087,200 |   |   | 119,112,899 |   |
| Loans                  (gross)                                                                                                                                                       |   |                            | **122,463,720** |                      |   | 118,650,542              |   |                     | 110,747,031 |   |   | 105,453,650 |   |   | 100,493,602 |   |
| Investments                                                                                                                                                                          |   |                            | **26,241,010**  |                      |   | 25,711,065               |   |                     | 25,726,073  |   |   | 26,512,936 |   |   | 27,824,748 |   |
| Shareholders'                  Equity                                                                                                                                                |   |                            | **12,972,853**  |                      |   | 12,336,153               |   |                     | 11,293,784  |   |   | 10,978,270 |   |   | 10,596,543 |   |
| Consolidated                  average balance sheet data:                                                                                                                            |   |                            |            |                      |   |                     |   |                     |        |   |   |   |   |   |   |   |
| Total                  Assets                                                                                                                                                        |   | **$**                           | **159,861,014** |                      | $      | 151,974,619              |   | $                        | 141,740,816 |   | $ | 138,775,727 |   | $ | 134,188,336 |   |
| Total                  Deposits                                                                                                                                                      |   |                            | **136,218,131** |                      |   | 128,671,518              |   |                     | 120,331,869 |   |   | 116,849,318 |   |   | 114,283,139 |   |
| Loans                  (gross)                                                                                                                                                       |   |                            | **120,915,750** |                      |   | 115,642,714              |   |                     | 106,232,569 |   |   | 102,134,367 |   |   | 96,187,785 |   |
| Investments                                                                                                                                                                          |   |                            | **25,597,572**  |                      |   | 25,665,897               |   |                     | 26,993,665  |   |   | 26,700,426 |   |   | 27,158,388 |   |
| Shareholders'                  Equity                                                                                                                                                |   |                            | **12,626,175**  |                      |   | 11,854,678               |   |                     | 11,239,611  |   |   | 10,926,691 |   |   | 10,513,514 |   |
| Consolidated                  performance ratios:                                                                                                                                    |   |                            |            |                      |   |                     |   |                     |        |   |   |   |   |   |   |   |
| Return                  on average assets**                                                                                                                                          |   |                            | **1.54**        | **%**                     |   | 1.55                     | %      |                     | 1.32        | % |   | 1.12 | % |   | 1.13 | % |
| Return                  on average equity**                                                                                                                                          |   |                            | **19.49**       | **%**                     |   | 19.84                    | %      |                     | 16.64       | % |   | 14.22 | % |   | 14.43 | % |
| Capital                  to Assets                                                                                                                                                   |   |                            | **7.90**        | **%**                     |   | 7.80                     | %      |                     | 7.93        | % |   | 7.87 | % |   | 7.83 | % |
| Consolidated                  asset quality data and ratios:                                                                                                                         |   |                            |            |                      |   |                     |   |                     |        |   |   |   |   |   |   |   |
| Nonaccruing                  loans                                                                                                                                                   |   | **$**                           | **975,190**     |                      | $      | 937,304                  |   | $                        | 1,131,397   |   | $ | 1,854,149 |   | $ | 1,754,653 |   |
| Accruing                  loans 90 days past due                                                                                                                                     |   |                            | **-**           |                      |   | -                        |   |                     | -           |   |   | - |   |   | - |   |
| Nonperforming                  loans                                                                                                                                                 |   |                            | **975,190**     |                      |   | 937,304                  |   |                     | 1,131,397   |   |   | 1,854,149 |   |   | 1,754,653 |   |
| Foreclosed                  properties                                                                                                                                               |   |                            | **106,000**     |                      |   | 136,177                  |   |                     | 142,000     |   |   | 139,750 |   |   | 127,000 |   |
| Nonperforming                  assets                                                                                                                                                |   |                            | **1,081,190**   |                      |   | 1,073,481                |   |                     | 1,273,397   |   |   | 1,993,899 |   |   | 1,881,653 |   |
| Allowance                  for loan losses                                                                                                                                           |   |                            | **1,884,080**   |                      |   | 1,862,809                |   |                     | 1,830,113   |   |   | 1,844,887 |   |   | 1,760,377 |   |
| Loans                  charged off                                                                                                                                                   |   |                            | **58,768**      |                      |   | 42,601                   |   |                     | 92,632      |   |   | 24,454 |   |   | 27,132 |   |
| Recoveries                  of loans charged off                                                                                                                                     |   |                            | **8,593**       |                      |   | 14,548                   |   |                     | 16,258      |   |   | 18,114 |   |   | 25,648 |   |
| Net                  loan charge-offs                                                                                                                                                |   |                            | **50,175**      |                      |   | 28,053                   |   |                     | 76,374      |   |   | 6,340 |   |   | 1,484 |   |
| Net                  charge-offs to average loans**                                                                                                                                  |   |                            | **0.16**        | **%**                     |   | 0.10                     | %      |                     | 0.29        | % |   | 0.03 | % |   | 0.01 | % |
| Nonperforming                  loans to total assets                                                                                                                                 |   |                            | **0.62**        | **%**                     |   | 0.61                     | %      |                     | 0.77        | % |   | 1.29 | % |   | 1.26 | % |
| Allowance                  coverage of nonperforming loans                                                                                                                           |   |                            | **193.20**      | **%**                     |   | 198.74                   | %      |                     | 161.76      | % |   | 99.50 | % |   | 100.33 | % |
| Allowance                  for loan losses to gross loans                                                                                                                            |   |                            | **1.54**        | **%**                     |   | 1.57                     | %      |                     | 1.65        | % |   | 1.75 | % |   | 1.75 | % |
|                                                                                                                                                                                 |   |                            |            |                      |   |                     |   |                     |        |   |   |   |   |   |   |   |
| *The                  share and per share amounts have been adjusted to reflect the 6                  for 5                  stock splits distributed in May 2006 and January 2005. |
| **                  Annualized based on number of days in the period.                                                                                                                |   |                            |            |                      |   |                     |   |                     |        |   |   |   |