**Exhibit      99.1**

| FOR                RELEASE: | July                23, 2007 |
|-----------------------------|------------------------------|

**WESTSTAR      FINANCIAL SERVICES CORPORATION**

**REPORTS      SECOND QUARTER EARNINGS UP 13%**

| **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**         |

----

| **Weststar                Financial Services Corporation &                Subsidiary**                    |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------------------|--------------|-------------------------|--------------------|-------------|---------------------------------|----------|----------|--------|--------|------------|---------------|-----------------|---------------------------------|
| Selected                Financial Data                                                                        |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |
|                                                                                                          |   | Three                Months Ended |               |         |                    |               |        | Six                Months Ended |     |     |   |   |
|                                                                                                          |   | June                30,           |     |         | June                30, |     |
|                                                                                                          |   | **2007**                          |               |         | 2006                    |               |        | *%                change*  |     | **2007** |   |   | 2006       |          |            | *%                change*  |
| Consolidated                earning summary:                                                                  |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |
| Interest                income                                                                                |   | **$**                             | **3,206,796**      |         |                    | $                  | 2,669,060   |                            |     | * * | *20.2* | *%*    |       | **$**         | **6,300,595**   |                            |   | $ | 5,048,703 |   |   | * * | *24.8* | *%* |
| Interest                expense                                                                               |   | ** **                        | **1,315,067**      |    |                    | 967,215            |        |                            | * * | *36.0*   | *%*    |   | ** ** | **2,576,811** |       |                            | 1,836,872 |   |   | * * | *40.3* | *%* |
| Net                interest income                                                                            |   | ** **                        | **1,891,729**      |         |                    |               | 1,701,845   |                            |     | * * | *11.2* | *%*    |       | ** **    | **3,723,784**   |                            |   |   | 3,211,831 |   |   | * * | *15.9* | *%* |
| Provision                for loan losses                                                                      |   | ** **                        | **69,720**         |    |                    | 61,600             |        |                            | * * | *13.2*   | *%*    |   | ** ** | **87,575**    |       |                            | 152,450 |   |   | * * | *-42.6* | *%* |
| Net                interest income after                                                                      |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |   |   |   |   |   |   |
|  provision                for loan losses                                                                |   | ** **                        | **1,822,009**      |         |                    |               | 1,640,245   |                            |     | * * | *11.1* | *%*    |       | ** **    | **3,636,209**   |                            |   |   | 3,059,381 |   |   | * * | *18.9* | *%* |
| Other                income                                                                                   |   | ** **                        | **394,114**        |         |                    |               | 270,475     |                            |     | * * | *45.7* | *%*    |       | ** **    | **744,483**     |                            |   |   | 555,678 |   |   | * * | *34.0* | *%* |
| Other                expenses                                                                                 |   | ** **                        | **1,398,247**      |    |                    | 1,193,891          |        |                            | * * | *17.1*   | *%*    |   | ** ** | **2,773,517** |       |                            | 2,308,391 |   |   | * * | *20.2* | *%* |
| Income                before taxes                                                                            |   | ** **                        | **817,876**        |         |                    |               | 716,829     |                            |     | * * | *14.1* | *%*    |       | ** **    | **1,607,175**   |                            |   |   | 1,306,668 |   |   | * * | *23.0* | *%* |
| Income                taxes                                                                                   |   | ** **                        | **293,304**        |    |                    | 250,417            |        |                            | * * | *17.1*   | *%*    |   | ** ** | **582,572**   |       |                            | 457,067 |   |   | * * | *27.5* | *%* |
| Net                income                                                                                     |   | **$**                             | **524,572**        |    | $                       | 466,412            |        |                            | * * | *12.5*   | *%*    |   | **$**      | **1,024,603** |       | $                               | 849,601 |   |   | * * | *20.6* | *%* |
| Earnings                per share - Basic*                                                                    |   | **$**                             | **0.25**           |         |                    | $                  | 0.22        |                            |     | * * | *13.6* | *%*    |       | **$**         | **0.49**        |                            |   | $ | 0.40 |   |   | * * | *22.5* | *%* |
| Earnings                per share - Diluted*                                                                  |   | ** **                        | **0.23**           |    |                    | 0.21               |        |                            | * * | *9.5*    | *%*    |   | ** ** | **0.45**      |       |                            | 0.37 |   |   | * * | *21.6* | *%* |
| Average                Shares - Basic*                                                                        |   | ** **                        | **2,104,131**      |         |                    |               | 2,101,706   |                            |     | * * | *0.1*  | *%*    |       | ** **    | **2,107,427**   |                            |   |   | 2,101,706 |   |   | * * | *0.3* | *%* |
| Average                Shares - Diluted*                                                                      |   | ** **                        | **2,282,642**      |         |                    |               | 2,274,627   |                            |     | * * | *0.4*  | *%*    |       | ** **    | **2,288,086**   |                            |   |   | 2,267,748 |   |   | * * | *0.9* | *%* |
| Consolidated                balance sheet data:                                                               |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |   |   |   |   |   |   |
| Total                Assets                                                                                   |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | **$**         | **164,412,455** |                            |   | $ | 147,330,128 |   |   | * * | *11.6* | *%* |
| Total                Deposits                                                                                 |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **140,915,216** |                            |   |   | 125,086,835 |   |   | * * | *12.7* | *%* |
| Loans                (gross)                                                                                  |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **123,199,519** |                            |   |   | 110,747,031 |   |   | * * | *11.2* | *%* |
| Investments                                                                                                   |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **25,777,376**  |                            |   |   | 25,726,073 |   |   | * * | *0.2* | *%* |
| Shareholders'                Equity                                                                           |   | ** **                        |               |         |                    |               |        |                            |     | * * |   |   |       | ** **    | **13,681,118**  |                            |   |   | 11,293,784 |   |   | * * | *21.1* | *%* |
| Consolidated                average balance sheet data:                                                       |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |   |   |   |   |   |   |
| Total                Assets                                                                                   |   | **$**                             | **163,905,840**    |         |                    | $                  | 141,740,816 |                            |     | * * | *15.6* | *%*    |       | **$**         | **162,273,246** |                            |   | $ | 140,274,917 |   |   | * * | *15.7* | *%* |
| Total                Deposits                                                                                 |   | ** **                        | **137,448,436**    |         |                    |               | 120,331,869 |                            |     | * * | *14.2* | *%*    |       | ** **    | **137,521,725** |                            |   |   | 118,605,264 |   |   | * * | *16.0* | *%* |
| Loans                (gross)                                                                                  |   | ** **                        | **127,164,672**    |         |                    |               | 106,232,569 |                            |     | * * | *19.7* | *%*    |       | ** **    | **125,395,267** |                            |   |   | 104,194,789 |   |   | * * | *20.4* | *%* |
| Investments                                                                                                   |   | ** **                        | **26,733,213**     |         |                    |               | 26,993,665  |                            |     | * * | *-1.0* | *%*    |       | ** **    | **26,484,051**  |                            |   |   | 27,132,893 |   |   | * * | *-2.4* | *%* |
| Shareholders'                Equity                                                                           |   | ** **                        | **13,752,135**     |         |                    |               | 11,239,611  |                            |     | * * | *22.4* | *%*    |       | ** **    | **13,504,117**  |                            |   |   | 11,084,015 |   |   | * * | *21.8* | *%* |
| Consolidated                performance ratios:                                                               |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |   |   |   |   |   |   |
| Return                on average assets**                                                                     |   | ** **                        | **1.28**           | **%**        |                    |               | 1.32        | %                               |     |     |   |   |       | ** **    | **1.27**        | **%**                           |   |   | 1.22 | % |   |   |   |   |
| Return                on average equity**                                                                     |   | ** **                        | **15.30**          | **%**        |                    |               | 16.64       | %                               |     |     |   |   |       | ** **    | **15.30**       | **%**                           |   |   | 15.46 | % |   |   |   |   |
| Capital                to Assets                                                                              |   | ** **                        | **8.39**           | **%**        |                    |               | 7.93        | %                               |     | * * |   |   |       | ** **    | **8.32**        | **%**                           |   |   | 7.90 | % |   | * * |   |   |
| Consolidated                asset quality data and ratios:                                                    |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |   |   |   |   |   |   |
| Nonaccruing                loans                                                                              |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | **$**         | **326,865**     |                            |   | $ | 1,131,397 |   |   | * * | *-71.1* | *%* |
| Accruing                loans 90 days past due                                                                |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **1,000**       |                       |   | - |   |   | * * | *-* |   |
| Nonperforming                loans                                                                            |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **327,865**     |                            |   |   | 1,131,397 |   |   | * * | *-71.0* | *%* |
| Foreclosed                properties                                                                          |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **574,633**     |                       |   | 142,000 |   |   | * * | *304.7* | *%* |
| Nonperforming                assets                                                                           |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **902,498**     |                       |   | 1,273,397 |   |   | * * | *-29.1* | *%* |
| Allowance                for loan losses                                                                      |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **1,929,498**   |                            |   |   | 1,830,113 |   |   | * * | *5.4* | *%* |
| Loans                charged off                                                                              |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **59,018**      |                            |   |   | 117,086 |   |   | * * | *-49.6* | *%* |
| Recoveries                of loans charged off                                                                |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **16,862**      |                       |   | 34,372 |   |   | * * | *-50.9* | *%* |
| Net                loan charge-offs                                                                           |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **42,156**      |                       |   | 82,714 |   |   | * * | *-49.0* | *%* |
| Net                charge-offs to average loans**                                                             |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **0.07**        | **%**                           |   |   | 0.16 | % |   | * * | *-57.7* | *%* |
| Nonperforming                loans to total assets                                                            |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **0.20**        | **%**                           |   |   | 0.77 | % |   | * * | *-74.0* | *%* |
| Allowance                coverage of nonperforming loans                                                      |   |                              |               |         |                    |               |        |                            |     |     |   |   |       | ** **    | **588.50**      | **%**                           |   |   | 161.76 | % |   | * * | *263.8* | *%* |
| Allowance                for loan losses to gross loans                                                       |   | ** **                        |               |         |                    |               |        |                            |     | * * |   |   |       | ** **    | **1.57**        | **%**                           |   |   | 1.65 | % |   | * * | *-5.2* | *%* |
| *Shares                and per share amounts                adjusted for 5-for-4 stock dividend for June 2007 |   |                              |               |         |                    |
| **Annualized                based on number of days in the period.                                            |   |                              |               |         |                    |               |        |                            |     |     |   |   |       |          |            |                            |   |   |   |   |   |

----

| **Weststar                Financial Services Corporation & Subsidiary**                                                    |       |
|--------------------------------------------------------------------------------------------------------------------------------|------------|
| Supplemental                Quarterly Financial Data                                                                           |       |   |   |
|                                                                                                                           |       | Quarters                Ended |   |
|                                                                                                                           |       | **Jun                30,** |   |   | Mar                31, |   |   | Dec                31, |   |   | Sept                30, |   |   | Jun                30, |   |
|                                                                                                                           | **2007**   |   |   | 2007 |   |   | 2006 |   |   | 2006 |   |   | 2006 |   |
| Consolidated                earning summary:                                                                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                                                 |       | **$** | **3,206,796** |   |   | $ | 3,093,799 |   |   | $ | 3,102,808 |   |   | $ | 2,969,677 |   |   | $ | 2,669,060 |   |
| Interest                expense                                                                                                |       | ** ** | **1,315,067** |   |   |   | 1,261,744 |   |   |   | 1,232,763 |   |   |   | 1,126,316 |   |   |   | 967,215 |   |
| Net                interest income                                                                                             |       | ** ** | **1,891,729** |   |   |   | 1,832,055 |   |   |   | 1,870,045 |   |   |   | 1,843,361 |   |   |   | 1,701,845 |   |
| Provision                for loan losses                                                                                       |       | ** ** | **69,720** |   |   |   | 17,855 |   |   |   | 71,445 |   |   |   | 60,750 |   |   |   | 61,600 |   |
| Net                interest income after provision for loan loss                                                               |       | ** ** | **1,822,009** |   |   |   | 1,814,200 |   |   |   | 1,798,600 |   |   |   | 1,782,611 |   |   |   | 1,640,245 |   |
| Other                income                                                                                                    |       | ** ** | **394,114** |   |   |   | 350,369 |   |   |   | 472,841 |   |   |   | 384,026 |   |   |   | 270,475 |   |
| Other                expenses                                                                                                  |       | ** ** | **1,398,247** |   |   |   | 1,375,270 |   |   |   | 1,365,649 |   |   |   | 1,240,687 |   |   |   | 1,193,891 |   |
| Income                before taxes                                                                                             |       | ** ** | **817,876** |   |   |   | 789,299 |   |   |   | 905,792 |   |   |   | 925,950 |   |   |   | 716,829 |   |
| Income                taxes                                                                                                    |       | ** ** | **293,304** |   |   |   | 289,268 |   |   |   | 285,431 |   |   |   | 333,180 |   |   |   | 250,417 |   |
| Net                income                                                                                                      |       | **$** | **524,572** |   |   | $ | 500,031 |   |   | $ | 620,361 |   |   | $ | 592,770 |   |   | $ | 466,412 |   |
| Earnings                per share - Basic*                                                                                     |       | **$** | **0.25** |   |   | $ | 0.24 |   |   | $ | 0.30 |   |   | $ | 0.28 |   |   | $ | 0.22 |   |
| Earnings                per share - Diluted*                                                                                   |       | ** ** | **0.23** |   |   |   | 0.22 |   |   |   | 0.27 |   |   |   | 0.26 |   |   |   | 0.21 |   |
| Average                Shares - Basic*                                                                                         |       | ** ** | **2,104,131** |   |   |   | 2,103,993 |   |   |   | 2,101,842 |   |   |   | 2,101,706 |   |   |   | 2,101,706 |   |
| Average                Shares - Diluted*                                                                                  | ** ** | **2,282,642** |   |   |   | 2,286,793 |   |   |   | 2,281,825 |   |   |   | 2,277,335 |   |   |   | 2,274,627 |   |
| Consolidated                balance sheet data:                                                                                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Assets                                                                                                    |       | **$** | **164,412,455** |   |   | $ | 167,085,504 |   |   | $ | 157,644,462 |   |   | $ | 153,070,037 |   |   | $ | 147,330,128 |   |
| Total                Deposits                                                                                                  |       | ** ** | **140,915,216** |   |   |   | 143,988,696 |   |   |   | 134,871,081 |   |   |   | 127,629,905 |   |   |   | 125,086,835 |   |
| Loans                (gross)                                                                                                   |       | ** ** | **123,199,519** |   |   |   | 125,721,582 |   |   |   | 122,463,720 |   |   |   | 118,650,542 |   |   |   | 110,747,031 |   |
| Investments                                                                                                                    |       | ** ** | **25,777,376** |   |   |   | 27,095,590 |   |   |   | 26,241,010 |   |   |   | 25,711,065 |   |   |   | 25,726,073 |   |
| Shareholders'                Equity                                                                                       | ** ** | **13,681,118** |   |   |   | 13,477,355 |   |   |   | 12,972,853 |   |   |   | 12,336,153 |   |   |   | 11,293,784 |   |
| Consolidated                average balance sheet data:                                                                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Assets                                                                                                    |       | **$** | **163,905,840** |   |   | $ | 160,622,510 |   |   | $ | 159,861,014 |   |   | $ | 151,974,619 |   |   | $ | 141,740,816 |   |
| Total                Deposits                                                                                                  |       | ** ** | **137,448,436** |   |   |   | 137,597,472 |   |   |   | 136,218,131 |   |   |   | 128,671,518 |   |   |   | 120,331,869 |   |
| Loans                (gross)                                                                                                   |       | ** ** | **127,164,672** |   |   |   | 123,606,201 |   |   |   | 120,915,750 |   |   |   | 115,642,714 |   |   |   | 106,232,569 |   |
| Investments                                                                                                                    |       | ** ** | **26,733,213** |   |   |   | 26,232,122 |   |   |   | 25,597,572 |   |   |   | 25,665,897 |   |   |   | 26,993,665 |   |
| Shareholders'                Equity                                                                                       | ** ** | **13,752,135** |   |   |   | 13,253,343 |   |   |   | 12,626,175 |   |   |   | 11,854,678 |   |   |   | 11,239,611 |   |
| Consolidated                performance ratios:                                                                                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return                on average assets**                                                                                      |       | ** ** | **1.28** | **%** |   |   | 1.26 | % |   |   | 1.54 | % |   |   | 1.55 | % |   |   | 1.32 | % |
| Return                on average equity**                                                                                      |       | ** ** | **15.30** | **%** |   |   | 15.30 | % |   |   | 19.49 | % |   |   | 19.84 | % |   |   | 16.64 | % |
| Capital                to Assets                                                                                          | ** ** | **8.39** | **%** |   |   | 8.25 | % |   |   | 7.90 | % |   |   | 7.80 | % |   |   | 7.93 | % |
| Consolidated                asset quality data and ratios:                                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccruing                loans                                                                                               |       | **$** | **326,865** |   |   | $ | 780,484 |   |   | $ | 975,190 |   |   | $ | 937,304 |   |   | $ | 1,131,397 |   |
| Accruing                loans 90 days past due                                                                                 |       | ** ** | **1,000** |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Nonperforming                loans                                                                                       |       | ** ** | **327,865** |   |   |   | 780,484 |   |   |   | 975,190 |   |   |   | 937,304 |   |   |   | 1,131,397 |   |
| Foreclosed                properties                                                                                           |       | ** ** | **574,633** |   |   |   | 103,000 |   |   |   | 106,000 |   |   |   | 136,177 |   |   |   | 142,000 |   |
|  Nonperforming                assets                                                                                      |       | ** ** | **902,498** |   |   |   | 883,484 |   |   |   | 1,081,190 |   |   |   | 1,073,481 |   |   |   | 1,273,397 |   |
| Allowance                for loan losses                                                                                       |       | ** ** | **1,929,498** |   |   |   | 1,888,059 |   |   |   | 1,884,080 |   |   |   | 1,862,809 |   |   |   | 1,830,113 |   |
| Loans                charged off                                                                                               |       | ** ** | **38,846** |   |   |   | 20,172 |   |   |   | 58,768 |   |   |   | 42,601 |   |   |   | 92,632 |   |
| Recoveries                of loans charged off                                                                                 |       | ** ** | **10,567** |   |   |   | 6,295 |   |   |   | 8,593 |   |   |   | 14,548 |   |   |   | 16,258 |   |
| Net                loan charge-offs                                                                                            |       | ** ** | **28,279** |   |   |   | 13,877 |   |   |   | 50,175 |   |   |   | 28,053 |   |   |   | 76,374 |   |
| Net                charge-offs to average loans**                                                                              |       | ** ** | **0.09** | **%** |   |   | 0.05 | % |   |   | 0.16 | % |   |   | 0.10 | % |   |   | 0.29 | % |
| Nonperforming                loans to total assets                                                                             |       | ** ** | **0.20** | **%** |   |   | 0.47 | % |   |   | 0.62 | % |   |   | 0.61 | % |   |   | 0.77 | % |
| Allowance                coverage of nonperforming loans                                                                       |       | ** ** | **588.50** | **%** |   |   | 241.91 | % |   |   | 193.20 | % |   |   | 198.74 | % |   |   | 161.76 | % |
| Allowance                for loan losses to gross loans                                                                   | ** ** | **1.57** | **%** |   |   | 1.50 | % |   |   | 1.54 | % |   |   | 1.57 | % |   |   | 1.65 | % |
|                                                                                                                           |       |
| *                Shares and per share amounts adjusted for 5-for-4 stock dividend                for June                2007. |       |
| **                Annualized based on number of days in the period.                                                            |       |