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**UNITED      STATES SECURITITES AND EXCHANGE COMMISSION**

**Washington,      D.C. 29549**

**FORM      10-QSB**

**(Mark      One)**

| T | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURTIES EXCHANGE                ACT OF                1934** |
|---|-----------------------------------------------------------------------------------------------------------------------------------------|

| £ | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE                ACT** |
|--------|---------------------------------------------------------------------------------------------------------|

| North                Carolina                                                 | 56-2181423                                       |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.) |

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**APPLICABLE      ONLY TO CORPORATE ISSUERS:**

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| **INDEX**                                                                                                                       | **Page**                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                            |                                                                                                                                         |
| Part                I – FINANCIAL INFORMATION                                                                             |                                                                                                                                         |
|                                                                                                                            |                                                                                                                                         |
| Financial                Statements:                                                                                            |                                                                                                                                         |
|                                                                                                                            | Consolidated                Balance Sheets September 30, 2007 and December 31,                2006                                           | 3 |
|                                                                                                                            |                                                                                                                                         |
|                                                                                                                            | Consolidated                Statements of Operations Three and Nine Months                Ended September 30, 2007 and 2006                  | 4 |
|                                                                                                                            |                                                                                                                                         |
|                                                                                                                            | Consolidated                Statements of Comprehensive Income Three and Nine                Months Ended September 30, 2007 and 2006        | 5 |
|                                                                                                                            |                                                                                                                                         |
|                                                                                                                            | Consolidated                Statements of Changes in Shareholders’ Equity Nine                Months Ended September 30, 2007 and 2006 | 6 |
|                                                                                                                            |                                                                                                                                         |
|                                                                                                                            | Consolidated                Statements of Cash Flows Nine Months Ended                September 30, 2007 and 2006                            | 7 |
|                                                                                                                            |                                                                                                                                         |
|                                                                                                                            | Notes                to Consolidated Financial Statements                                                                                    | 8 |
|                                                                                                                            |                                                                                                                                         |
| Item                2 - Management’s Discussion and Analysis Financial                Condition and Results of Operations | 10                                                                                                                                           |
|                                                                                                                            |                                                                                                                                         |
| Item                3A(T) – Controls and Procedures                                                                       | 21                                                                                                                                           |
|                                                                                                                            |                                                                                                                                         |
| Part                II – OTHER INFORMATION                                                                                |                                                                                                                                         |
|                                                                                                                            |                                                                                                                                         |
| Item                4 – Submission of Matters to a Vote of Security                Holders                                | 22                                                                                                                                           |
|                                                                                                                            |                                                                                                                                         |
| Item                6 –Exhibit Index                                                                                      | 22                                                                                                                                           |
|                                                                                                                            |                                                                                                                                         |
| Signatures                                                                                                                      | 23                                                                                                                                           |

----

***Index***

| **Part                I.** | **FINANCIAL                INFORMATION** |
|----------------------------|------------------------------------------|

| **Item                I.** | **Financial                Statements** |
|----------------------------|-----------------------------------------|

**Weststar      Financial Services Corporation &Subsidiary**

| **Consolidated                Balance Sheets**                                                                                                                                                                                 |   | (unaudited)            |        |   |                  |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-------------|--------|-----------------------|-----------|
|                                                                                                                                                                                                                           |   | **September 30,** |        |   | **December 31,** |      |
|                                                                                                                                                                                                                           |   | **2007**               |        |   | ** **            | **2006*** |   |
| **ASSETS:**                                                                                                                                                                                                                    |   |                   |        |   |                  |      |   |
| Cash                and cash equivalents:                                                                                                                                                                                      |   |                   |        |   |                  |      |   |
| Cash                and due from banks                                                                                                                                                                                         |   | $                      | 5,324,593   |   |                  | $         | 4,816,290 |   |
| Interest-bearing                deposits                                                                                                                                                                                       |   |                   | 173,510     |   |                  |      | 210,337 |   |
| Federal                funds sold                                                                                                                                                                                              |   |                   | 3,924,000   |   |                  |      | - |   |
| Total                cash and cash equivalents                                                                                                                                                                                 |   |                   | 9,422,103   |   |                  |      | 5,026,627 |   |
| Investment                securities- available for sale, at fair value (amortized cost of                $27,301,945 and $26,415,000, respectively)                                                                           |   |                   | 27,050,604  |   |                  |      | 26,241,010 |   |
| Loans                                                                                                                                                                                                                          |   |                   | 129,952,653 |   |                  |      | 122,463,720 |   |
| Allowance                for loan losses                                                                                                                                                                                       |   |                   | (1,968,455  | )      |                  |      | (1,884,080 | ) |
| Net                loans                                                                                                                                                                                                       |   |                   | 127,984,198 |   |                  |      | 120,579,640 |   |
| Premises                and equipment, net                                                                                                                                                                                     |   |                   | 3,033,377   |   |                  |      | 3,004,590 |   |
| Accrued                interest receivable                                                                                                                                                                                     |   |                   | 1,011,844   |   |                  |      | 918,780 |   |
| Federal                Home Loan Bank stock, at cost                                                                                                                                                                           |   |                   | 463,300     |   |                  |      | 457,000 |   |
| Deferred                income taxes                                                                                                                                                                                           |   |                   | 644,507     |   |                  |      | 519,456 |   |
| Foreclosed                properties                                                                                                                                                                                           |   |                   | 87,787      |   |                  |      | 106,000 |   |
| Other                assets                                                                                                                                                                                                    |   |                   | 696,114     |   |                  |      | 791,359 |   |
| TOTAL                                                                                                                                                                                                                          |   | $                      | 170,393,834 |   |                  | $         | 157,644,462 |   |
|                                                                                                                                                                                                                           |   |                   |        |   |                  |      |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                  |   |                   |        |   |                  |      |   |   |
| Liabilities:                                                                                                                                                                                                                   |   |                   |        |   |                  |      |   |   |
| Deposits:                                                                                                                                                                                                                      |   |                   |        |   |                  |      |   |   |
| Demand                                                                                                                                                                                                                         |   | $                      | 30,467,135  |   |                  | $         | 27,463,717 |   |
| NOW                accounts                                                                                                                                                                                                    |   |                   | 11,846,917  |   |                  |      | 14,198,547 |   |
| Money                market accounts                                                                                                                                                                                           |   |                   | 29,209,519  |   |                  |      | 32,367,876 |   |
| Savings                                                                                                                                                                                                                        |   |                   | 2,202,665   |   |                  |      | 1,956,577 |   |
| Time                deposits of $100,000 or more                                                                                                                                                                               |   |                   | 26,742,576  |   |                  |      | 18,747,373 |   |
| Other                time deposits                                                                                                                                                                                             |   |                   | 45,442,892  |   |                  |      | 40,136,991 |   |
| Total                deposits                                                                                                                                                                                                  |   |                   | 145,911,704 |   |                  |      | 134,871,081 |   |
| Short-term                borrowings                                                                                                                                                                                           |   |                   | 286,408     |   |                  |      | 306,000 |   |
| Accrued                interest payable                                                                                                                                                                                        |   |                   | 541,356     |   |                  |      | 498,390 |   |
| Other                liabilities                                                                                                                                                                                               |   |                   | 1,010,708   |   |                  |      | 872,138 |   |
| Long-term                debt                                                                                                                                                                                                  |   |                   | 8,124,000   |   |                  |      | 8,124,000 |   |
| Total                liabilities                                                                                                                                                                                               |   |                   | 155,874,176 |   |                  |      | 144,671,609 |   |
|                                                                                                                                                                                                                           |   |                   |        |   |                  |      |   |   |
| SHAREHOLDERS’                EQUITY:                                                                                                                                                                                     |   |                   |        |   |                  |      |   |   |
| Preferred                stock, authorized $1,000,000 shares; No shares issued and                outstanding                                                                                                                  |   |                   | -           |   |                  |      | - |   |
| Common                stock, $1 par value, authorized- 9,000,000 shares; outstanding shares-                and                2,117,529 at September 30, 2007 and 1,682,290 at December 31, 2006,                respectively |   |                   | 2,117,529   |   |                  |      | 1,682,290 |   |
| Additional                paid-in capital                                                                                                                                                                                      |   |                   | 6,131,884   |   |                  |      | 6,528,387 |   |
| Retained                earnings                                                                                                                                                                                               |   |                   | 6,424,693   |   |                  |      | 4,869,092 |   |
| Accumulated                other comprehensive loss                                                                                                                                                                            |   |                   | (154,448    | )      |                  |      | (106,916 | ) |
| Total                shareholders’ equity                                                                                                                                                                                |   |                   | 14,519,658  |   |                  |      | 12,972,853 |   |
| Total                                                                                                                                                                                                                          |   | $                      | 170,393,834 |   |                  | $         | 157,644,462 |   |

----

***Index***

**Weststar      Financial Services Corporation &Subsidiary**

| **Consolidated                Statements of Operations**(unaudited)                              |   | **Three                Months**             |      |   | **Nine                Months**              |   |
|--------------------------------------------------------------------------------------------------|--------|---------------------------------------------|-----------|--------|---------------------------------------------|--------|
|                                                                                             |   | **Ended                September 30,** |      |   | **Ended                September 30,** |   |
|                                                                                             |   | **2007**                                    |      |   | **2006**                                    |   |   | **2007** |   |   | **2006** |   |
| **INTEREST                INCOME:**                                                              |   |                                        |      |   |                                        |   |   |   |   |   |   |   |
| Interest                and fees on loans                                                        |   | $                                           | 2,918,193 |   |                                        | $      | 2,640,558 |   |   | $ | 8,571,817 |   |   | $ | 7,088,425 |   |
| Federal                funds sold                                                                |   |                                        | 69,012    |   |                                        |   | 27,203 |   |   |   | 107,935 |   |   |   | 51,264 |   |
| Interest-bearing                deposits                                                         |   |                                        | 2,463     |   |                                        |   | 1,317 |   |   |   | 5,800 |   |   |   | 4,366 |   |
| Investments:                                                                                     |   |                                        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                interest income                                                           |   |                                        | 231,183   |   |                                        |   | 213,616 |   |   |   | 662,386 |   |   |   | 617,879 |   |
| Nontaxable                interest income                                                        |   |                                        | 85,682    |   |                                        |   | 79,915 |   |   |   | 244,500 |   |   |   | 236,103 |   |
| Corporate                dividends                                                               |   |                                        | 8,430     |   |                                        |   | 7,068 |   |   |   | 23,120 |   |   |   | 20,343 |   |
| Total                interest income                                                             |   |                                        | 3,314,963 |   |                                        |   | 2,969,677 |   |   |   | 9,615,558 |   |   |   | 8,018,380 |   |
| **INTEREST                EXPENSE:**                                                             |   |                                        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Time                deposits of $100,000 or more                                                 |   |                                        | 343,063   |   |                                        |   | 235,664 |   |   |   | 902,242 |   |   |   | 574,861 |   |
| Other                time and savings deposits                                                   |   |                                        | 876,561   |   |                                        |   | 719,052 |   |   |   | 2,569,545 |   |   |   | 1,915,911 |   |
| Short-term                borrowings                                                             |   |                                        | 3,226     |   |                                        |   | 30,204 |   |   |   | 52,077 |   |   |   | 66,806 |   |
| Long-term                debt                                                                    |   |                                        | 140,195   |   |                                        |   | 141,396 |   |   |   | 415,992 |   |   |   | 405,610 |   |
| Total                interest expense                                                            |   |                                        | 1,363,045 |   |                                        |   | 1,126,316 |   |   |   | 3,939,856 |   |   |   | 2,963,188 |   |
| **NET                INTEREST INCOME**                                                           |   |                                        | 1,951,918 |   |                                        |   | 1,843,361 |   |   |   | 5,675,702 |   |   |   | 5,055,192 |   |
| **PROVISION                FOR LOAN LOSSES**                                                     |   |                                        | 137,395   |   |                                        |   | 60,750 |   |   |   | 224,970 |   |   |   | 213,200 |   |
| **NET                INTEREST INCOME AFTER PROVISION**                                           |   |                                        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| **FOR                LOAN LOSSES**                                                               |   |                                        | 1,814,523 |   |                                        |   | 1,782,611 |   |   |   | 5,450,732 |   |   |   | 4,841,992 |   |
| **OTHER                INCOME:**                                                                 |   |                                        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Services                charges on deposit accounts                                              |   |                                        | 290,610   |   |                                        |   | 310,372 |   |   |   | 855,121 |   |   |   | 902,652 |   |
| Other                service fees and commissions                                                |   |                                        | 91,260    |   |                                        |   | 75,619 |   |   |   | 253,151 |   |   |   | 222,436 |   |
| Securities                losses                                                                 |   |                                        | (1,093    | )      |                                        |   | (41,550 | ) |   |   | (1,093 | ) |   |   | (249,674 | ) |
| Equity                in income (loss) of Bank of Asheville Mortgage Company,                LLC |   |                                        | (9,051    | )      |                                        |   | 11,380 |   |   |   | (43,117 | ) |   |   | (5,271 | ) |
| Other                                                                                            |   |                                        | 15,058    |   |                                        |   | 28,205 |   |   |   | 67,205 |   |   |   | 69,561 |   |
| Total                other income                                                                |   |                                        | 386,784   |   |                                        |   | 384,026 |   |   |   | 1,131,267 |   |   |   | 939,704 |   |
| **OTHER                EXPENSES:**                                                               |   |                                        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and wages                                                                |   |                                        | 590,524   |   |                                        |   | 532,848 |   |   |   | 1,732,697 |   |   |   | 1,529,309 |   |
| Employee                benefits                                                                 |   |                                        | 91,948    |   |                                        |   | 97,648 |   |   |   | 299,715 |   |   |   | 266,987 |   |
| Occupancy                expense, net                                                            |   |                                        | 118,697   |   |                                        |   | 106,190 |   |   |   | 357,399 |   |   |   | 276,304 |   |
| Equipment                rentals, depreciation and maintenance                                   |   |                                        | 108,959   |   |                                        |   | 92,033 |   |   |   | 322,778 |   |   |   | 284,052 |   |
| Supplies                                                                                         |   |                                        | 74,197    |   |                                        |   | 65,530 |   |   |   | 204,988 |   |   |   | 188,074 |   |
| Professional                Fees                                                                 |   |                                        | 83,176    |   |                                        |   | 47,606 |   |   |   | 261,223 |   |   |   | 152,249 |   |
| Data                Processing Fees                                                              |   |                                        | 127,480   |   |                                        |   | 153,983 |   |   |   | 446,702 |   |   |   | 432,587 |   |
| Marketing                                                                                        |   |                                        | 76,356    |   |                                        |   | 76,404 |   |   |   | 216,252 |   |   |   | 205,373 |   |
| (Income)                expenses from foreclosed properties                                      |   |                                        | (11,917   | )      |                                        |   | 715 |   |   |   | (9,288 | ) |   |   | (202 | ) |
| Other                                                                                            |   |                                        | 108,773   |   |                                        |   | 67,730 |   |   |   | 309,244 |   |   |   | 214,345 |   |
| Total                other expenses                                                              |   |                                        | 1,368,193 |   |                                        |   | 1,240,687 |   |   |   | 4,141,710 |   |   |   | 3,549,078 |   |
| **INCOME                BEFORE INCOME TAXES**                                                    |   |                                        | 833,114   |   |                                        |   | 925,950 |   |   |   | 2,440,289 |   |   |   | 2,232,618 |   |
| **INCOME                TAX PROVISION**                                                          |   |                                        | 300,186   |   |                                        |   | 333,180 |   |   |   | 882,758 |   |   |   | 790,247 |   |
| **NET                INCOME**                                                                    |   | $                                           | 532,928   |   |                                        | $      | 592,770 |   |   | $ | 1,557,531 |   |   | $ | 1,442,371 |   |
|                                                                                             |   |                                        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| **EARNINGS                PER SHARE:**                                                           |   |                                        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                            |   | $                                           | .25       |   |                                        | $      | .28 |   |   | $ | .74 |   |   | $ | .69 |   |
| Diluted                                                                                          |   | $                                           | .23       |   |                                        | $      | .26 |   |   | $ | .68 |   |   | $ | .64 |   |

----

***Index***

**Weststar      Financial Services Corporation &Subsidiary**

**Consolidated      Statements of Comprehensive Income **

|                                                                                                         |   | **Three                Months**             |     |   | **Nine                Months**              |   |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------|--------|---------------------------------------------|--------|
|                                                                                                         |   | **Ended                September 30,** |     |   | **Ended                September 30,** |   |
|                                                                                                         |   | **2007**                                    |     |   | **2006**                                    |   |   | **2007** |   |   | **2006** |   |
| **NET                INCOME**                                                                                |   | $                                           | 532,928  |   |                                        | $      | 592,770 |   |   | $ | 1,557,531 |   |   | $ | 1,442,371 |   |
| OTHER                COMPREHENSIVE INCOME                                                                    |   |                                        |     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains (losses) on securities available for                sale             |   |                                        | 452,684  |   |                                        |   | 690,100 |   |   |   | (78,444 | ) |   |   | 238,528 |   |
| Tax                effect                                                                                    |   |                                        | (174,510 | )      |                                        |   | (266,033 | ) |   |   | 30,240 |   |   |   | (91,952 | ) |
| Unrealized                holding gains (losses) on securities available for sale, net of                tax |   |                                        | 278,174  |   |                                        |   | 424,067 |   |   |   | (48,204 | ) |   |   | 146,576 |   |
|                                                                                                         |   |                                        |     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                adjustment for realized losses                                               |   |                                        | 1,093    |   |                                        |   | 41,550 |   |   |   | 1,093 |   |   |   | 249,674 |   |
| Tax                effect                                                                                    |   |                                        | (421     | )      |                                        |   | (16,018 | ) |   |   | (421 | ) |   |   | (96,249 | ) |
| Reclassification                adjustment for realized losses, net of tax                                   |   |                                        | 672      |   |                                        |   | 25,532 |   |   |   | 672 |   |   |   | 153,425 |   |
|                                                                                                         |   |                                        |     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                COMPREHENSIVE INCOME (LOSS), NET OF TAX                                                 |   |                                        | 278,846  |   |                                        |   | 449,599 |   |   |   | (47,532 | ) |   |   | 300,001 |   |
|                                                                                                         |   |                                        |     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                INCOME                                                                          |   | $                                           | 811,774  |   |                                        | $      | 1,042,369 |   |   | $ | 1,509,999 |   |   | $ | 1,742,372 |   |

----

***Index***

**Weststar      Financial Services Corporation &Subsidiary**

**Consolidated      Statements of      Changes in Shareholders’ Equity **

**For      the Nine Months Ended September 30, 2007 and 2006**

|                                                                              |   |                            |      |   |           |   |      |         |   |   | **Accumulated**   |   |   |                    |      |
|-----------------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|----------------|--------|-----------|--------------|--------|--------|-------------------|--------|--------|-------------------------|-----------|
|                                                                              |   |                            |      |   | **Additional** |   |      |         |   |   | **Other**         |   |   | **Total**               |      |
|                                                                              |   | **Common                Stock** |      |   | **Paid-In**    |   |      | **Retained** |   |   | **Comprehensive** |   |   | **Shareholders’** |      |
|                                                                              |   | **Shares**                      |      |   | **Amount**     |   |      | **Capital**  |   |   | **Earnings**      |   |   | **Loss**                |      |   | **Equity** |   |
| Balance                December 31, 2005                                          |   |                            | 1,401,266 |   |           | $      | 1,401,266 |         |   | $      | 6,805,331         |   |   | $                       | 2,809,122 |   |   | $ | (419,176 | ) |   | $ | 10,596,543 |   |
| 20%                Stock Split                                                    |   |                            | 280,024   |   |           |   | 280,024   |         |   |   | (280,024          | )      |   |                    |      |   |   |   |   |   |   |   |   |   |
| Net                change in unrealized losses on securities held for sale        |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    |      |   |   |   | 300,001 |   |   |   | 300,001 |   |
| Cash                paid in lieu of fractional shares                             |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    | (2,762    | ) |   |   |   |   |   |   | (2,762 | ) |
| Net                Income                                                         |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    | 1,442,371 |   |   |   |   |   |   |   | 1,442,371 |   |
| Balance                September 30, 2006                                         |   |                            | 1,681,290 |   |           | $      | 1,681,290 |         |   | $      | 6,525,307         |   |   | $                       | 4,248,731 |   |   | $ | (119,175 | ) |   | $ | 12,336,153 |   |
|                                                                              |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    |      |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    |      |   |   |   |   |   |   |   |   |   |
| Balance                December 31, 2006                                          |   |                            | 1,682,290 |   |           | $      | 1,682,290 |         |   | $      | 6,528,387         |   |   | $                       | 4,869,092 |   |   | $ | (106,916 | ) |   | $ | 12,972,853 |   |
| 25%                stock split                                                    |   |                            | 421,841   |   |           |   | 421,841   |         |   |   | (421,841          | )      |   |                    |      |   |   |   |   |   |   |   |   |   |
| Net                change in unrealized losses on securities held for sale        |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    |      |   |   |   | (47,532 | ) |   |   | (47,532 | ) |
| Cash                paid in lieu of fractional shares                             |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    | (1,930    | ) |   |   |   |   |   |   | (1,930 | ) |
| Issuance                of common stock pursuant to the exercise of stock options |   |                            | 13,398    |   |           |   | 13,398    |         |   |   | 8,185             |   |   |                    |      |   |   |   |   |   |   |   | 38,736 |   |
| Tax                benefit on exercise of nonqualified stock options              |   |                            |      |   |           |   |      |         |   |   | 17,153            |   |   |                    |      |   |   |   |   |   |   |   |   |   |
| Net                Income                                                         |   |                            |      |   |           |   |      |         |   |   |              |   |   |                    | 1,557,531 |   |   |   |   |   |   |   | 1,557,531 |   |
| Balance                September 30, 2007                                         |   |                            | 2,117,529 |   |           | $      | 2,117,529 |         |   | $      | 6,131,884         |   |   | $                       | 6,424,693 |   |   | $ | (154,448 | ) |   | $ | 14,519,658 |   |

----

***Index***

**Weststar      Financial Services Corporation &Subsidiary**

**Consolidated      Statements of Cash Flows (unaudited)**

| **For                the Nine Months Ended September 30,**                                                      |   | **2007** |       |   | **2006** |   |
|-----------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
|                                                                                                            |   |     |       |   |     |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                        |   |     |       |   |     |   |
| Net                Income                                                                                       |   | $        | 1,557,531  |   |     | $      | 1,442,371 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |     |       |   |     |   |   |   |
| Depreciation                                                                                                    |   |     | 291,758    |   |     |   | 254,653 |   |
| Provision                for loan losses                                                                        |   |     | 224,970    |   |     |   | 213,200 |   |
| Premium                amortization and discount accretion, net                                                 |   |     | (23,231    | )      |     |   | 17,043 |   |
| Deferred                income tax provision                                                                    |   |     | (95,232    | )      |     |   | (19,125 | ) |
| Gain                on sale foreclosed properties                                                               |   |     | (11,192    | )      |     |   | (1,317 | ) |
| Losses                on sales of securities                                                                    |   |     | 1,093      |   |     |   | 249,674 |   |
| (Gain)                loss on disposal/sale of premises and equipment                                           |   |     | (50        | )      |     |   | 2,067 |   |
| Increase                in accrued interest receivable                                                          |   |     | (88,964    | )      |     |   | (227,899 | ) |
| (Increase)                decrease in other assets                                                              |   |     | 91,145     |   |     |   | (6,513 | ) |
| Increase                in accrued interest payable                                                             |   |     | 42,966     |   |     |   | 160,810 |   |
| Increase                in other liabilities                                                                    |   |     | 155,723    |   |     |   | 349,076 |   |
| Net                cash provided by operating activities                                                        |   |     | 2,146,517  |   |     |   | 2,434,040 |   |
|                                                                                                            |   |     |       |   |     |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                        |   |     |       |   |     |   |   |   |
| Purchases                of securities available for sale                                                       |   |     | (3,942,950 | )      |     |   | (9,513,257 | ) |
| Maturities                of securities available for sale                                                      |   |     | 2,794,875  |   |     |   | 1,845,520 |   |
| Proceeds                from sales of securities                                                                |   |     | 283,268    |   |     |   | 10,002,906 |   |
| Net                increase in loans                                                                            |   |     | (8,291,948 | )      |     |   | (18,438,635 | ) |
| Proceeds                from sales of foreclosed properties                                                     |   |     | 691,825    |   |     |   | 163,067 |   |
| Proceeds                from sales of premises and equipment                                                    |   |     | 50         |   |     |   | 50 |   |
| FHLB                stock purchase                                                                              |   |     | (204,300   | )      |     |   | (341,800 | ) |
| FHLB                stock redemption                                                                            |   |     | 198,000    |   |     |   | 256,500 |   |
| Additions                to premises and equipment                                                              |   |     | (320,545   | )      |     |   | (681,322 | ) |
| Net                cash used in investing activities                                                            |   |     | (8,791,725 | )      |     |   | (16,706,971 | ) |
|                                                                                                            |   |     |       |   |     |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                        |   |     |       |   |     |   |   |   |
| Net                decrease in demand deposits, NOW accounts, MMDA and savings                accounts          |   |     | (2,260,481 | )      |     |   | (2,193,354 | ) |
| Net                increase in time deposits                                                                    |   |     | 13,301,104 |   |     |   | 10,710,360 |   |
| Cash                paid for fractional shares                                                                  |   |     | (1,930     | )      |     |   | (2,762 | ) |
| Issuance                of common stock                                                                         |   |     | 21,583     |   |     |   | - |   |
| Proceeds                of FHLB advances                                                                        |   |     | 5,200,000  |   |     |   | 14,820,000 |   |
| Repayment                of FHLB advances                                                                       |   |     | (5,200,000 | )      |     |   | (11,270,000 | ) |
| Net                decrease in short-term borrowing                                                             |   |     | (19,592    | )      |     |   | - |   |
| Net                cash provided by financing activities                                                        |   |     | 11,040,684 |   |     |   | 12,064,244 |   |
|                                                                                                            |   |     |       |   |     |   |   |   |
| **NET                INCREASE (DECREASE)  IN CASH AND CASH                EQUIVALENTS**               |   |     | 4,395,476  |   |     |   | (2,208,687 | ) |
| **CASH                AND CASH EQUIVALENTS AT BEGINNING OF PERIOD**                                             |   |     | 5,026,627  |   |     |   | 6,860,962 |   |
| **CASH                AND CASH EQUIVALENTS AT END OF PERIOD**                                                   |   | $        | 9,422,103  |   |     | $      | 4,652,275 |   |

----

***Index***

**WESTSTAR      FINANCIAL SERVICES CORPORTION &SUBSIDIARY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

| 1. | Weststar                Financial Services Corporation (the “Company”) is a holding company with                one subsidiary, The Bank of Asheville (the “Bank”).  The Bank is                a state chartered commercial bank which was incorporated in North                Carolina                on October 29, 1997.  The Bank provides consumer and commercial                banking services in Buncombe County and surrounding                areas.  Common shares of The Bank of Asheville were exchanged                for common shares of Weststar Financial Services Corporation on April                29,                2000.  Weststar Financial Services Corporation formed Weststar                Financial Services Corporation I (the “Trust”) during October 2003 in                order to facilitate the issuance of trust preferred                securities.  The Trust is a statutory business trust formed                under the laws of the state of Delaware, of which all common securities                are owned by Weststar Financial Services Corporation.  Bank of                Asheville Mortgage Company, LLC (the “Mortgage Company”) is a state                chartered mortgage bank which was incorporated in North Carolina                on                October 19, 2004 of which Weststar Financial Services Corporation                is a 50%                owner.  The Mortgage Company originates conventional mortgage                loans. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | In                the normal course of business there are various commitments and contingent                liabilities such as commitments to extend credit, which are not reflected                on the financial statements.  The unused portions of commitments                to extend credit were $39,133,572 and $30,044,210 at September 30,                2007and                December 31, 2006, respectively. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Basic                and diluted net income per share have been computed by dividing net                income                for each period by the weighted average number of shares of common                stock                outstanding during each period. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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***Index***

|                                                                                                                                                                                                   |   | Three                Months             |      |   | Nine                Months              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|--------|-----------------------------------------|--------|
|                                                                                                                                                                                                   |   | Ended                September 30, |      |   | Ended                September 30, |   |
|                                                                                                                                                                                                   |   | 2007                                    |      |   | 2006                                    |   |   | 2007 |   |   | 2006 |   |
| Weighted                average number of  common shares used in computing basic net                income  per share                                                              |   |                                    | 2,113,485 |   |                                    |   | 2,101,706 |   |   |   | 2,109,468 |   |   |   | 2,101,706 |   |
| Effect                of dilutive stock options                                                                                                                                                        |   |                                    | 173,522   |   |                                    |   | 175,629 |   |   |   | 178,500 |   |   |   | 169,448 |   |
| Weighted                average number of  common shares and dilutive potential common                shares  used in computing diluted net income per common                share |   |                                    | 2,287,007 |   |                                    |   | 2,277,335 |   |   |   | 2,287,968 |   |   |   | 2,271,154 |   |

| 4. | In                July 2006, the Financial Accounting Standards Board (FASB) issued                FASB                Interpretation No. 48, “Accounting for Uncertainty in Income Taxes—and                interpretation of FASB Statement No. 109” (FIN 48), which clarifies the                accounting for uncertainty in tax positions. This Interpretation                requires                that the Company recognize in its financial statements, the impact                of a                tax position, if that position is more likely than not of being sustained                on audit, based on the technical merits of the position. The provisions                of                FIN 48 are effective as of the beginning of the Company’s 2007 fiscal                year, with the cumulative effect of the change in accounting principle                recorded as an adjustment to opening retained earnings. The Company                adopted FIN 48 in the first quarter of 2007, and the adoption did                not have                a material impact on its consolidated financial                statements. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | SFAS                No. 159, *The Fair Value Option for Financial Assets and Financial                Liabilities.*   This statement permits entities to                choose to measure many financial instruments and certain other items                at                fair value.  The objective of this standard is to improve                financial reporting by providing entities with the opportunity to                mitigate                volatility in reported earnings caused by measuring related assets                and                liabilities differently without having to apply complex hedge accounting                provisions.  This statement is effective as of the beginning of                fiscal years beginning after November 15, 2007, with early adoption                permitted under certain circumstances.  The Company does not                anticipate the adoption of SFAS No. 159 to have a material impact                on its                consolidated financial statements. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Reclassifications                – Certain amounts in the prior year’s financial statements have been                reclassified to conform to the 2007 presentation.  The                reclassifications had no effect on net income or shareholders’ equity as                previously recorded. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Index***

| **Item                2.** | **Management’s                Discussion and Analysis** |
|----------------------------|---------------------------------------------------------------|

**Financial      Condition and Results of Operations**

**Weststar      Financial Services Corporation & Subsidiaries**

**Management’s      Discussion and Analysis**

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***Index***

----

***Index***

----

***Index***

----

***Index***

----

***Index***

**ASSET/LIABILITY      MANAGEMENT**

**Interest      Rate Gap Analysis. **

----

***Index***

----

***Index***

|                                                                                                          |   | TERMS                TO REPRICING AT SEPTEMBER 30, 2007 |        |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------|
|                                                                                                          |   | 1-90                Days                                |        |   | 91-180                Days |   |   | 181-365                Days |   |   | Total                One |   |   | Non- |   |   | Total |   |
|                                                                                                          |   |                                                    |        |   |   |   |   |   |   |   | Year |   |   | Sensitive |   |   |   |   |
| Interest-earning                assets:                                                                       |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing deposits                                                                      |   | $                                                       | 173,510     |   |   | $ | - |   |   | $ | - |   |   | $ | 173,510 |   |   | $ | - |   |   | $ | 173,510 |   |
| Federal                funds sold                                                                             |   |                                                    | 3,924,000   |   |   |   |   |   |   |   |   |   |   |   | 3,924,000 |   |   |   |   |   |   |   | 3,924,000 |   |
| Investment                securities                                                                          |   |                                                    | 1,739,969   |   |   |   | 1,182,506 |   |   |   | 2,307,493 |   |   |   | 5,229,968 |   |   |   | 22,071,977 |   |   |   | 27,301,945 |   |
| Federal                Home Loan Bank stock                                                                   |   |                                                    | 463,300     |   |   |   | - |   |   |   | - |   |   |   | 463,300 |   |   |   | - |   |   |   | 463,300 |   |
| Loans                (1)                                                                                      |   |                                                    | 102,320,130 |   |   |   | 1,205,897 |   |   |   | 4,054,640 |   |   |   | 107,580,667 |   |   |   | 22,275,018 |   |   |   | 129,855,685 |   |
| Total                Interest-earning assets                                                                  |   |                                                    | 108,620,909 |   |   |   | 2,388,403 |   |   |   | 6,362,133 |   |   |   | 117,371,445 |   |   |   | 44,346,995 |   |   |   | 161,718,440,968 |   |
|                                                                                                          |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                                  |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                deposits                                                                                  |   |                                                    | 25,002,804  |   |   |   | 23,702,765 |   |   |   | 15,668,137 |   |   |   | 64,373,706 |   |   |   | 7,811,762 |   |   |   | 72,185,468 |   |
| All                other deposits                                                                             |   |                                                    | 43,259,101  |   |   |   | - |   |   |   | - |   |   |   | 43,259,101 |   |   |   | - |   |   |   | 43,259,101 |   |
| Short-term                debt                                                                                |   |                                                    | 286,408     |   |   |   | - |   |   |   | - |   |   |   | 286,408 |   |   |   | - |   |   |   | 286,408 |   |
| Long-term                debt                                                                                 |   |                                                    | 4,124,000   |   |   |   | - |   |   |   | - |   |   |   | 4,124,000 |   |   |   | 4,000,000 |   |   |   | 8,124,000 |   |
| Total                interest-bearing liabilities                                                             |   |                                                    | 72,672,313  |   |   |   | 23,702,765 |   |   |   | 15,668,137 |   |   |   | 112,043,215 |   |   |   | 11,811,762 |   |   |   | 123,854,977 |   |
|                                                                                                          |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                sensitivity gap                                                                       |   | $                                                       | 35,948,596  |   |   | $ | (21,314,362 | ) |   | $ | (9,306,004 | ) |   | $ | 5,328,230 |   |   | $ | 32,535,233 |   |   |   |   |   |
| Cumulative                interest sensitivity                                                                |   |                                                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gap                                                                                                           |   | $                                                       | 35,948,596  |   |   | $ | 14,634,234 |   |   | $ | 5,328,230 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio                of interest-earning assets as a percent of interest sensitive                liabilities |   |                                                    | 149.5       | % |   |   | 10.1 | % |   |   | 40.6 | % |   |   | 104.8 | % |   |   |   |   |   |   |   |   |

**ASSET      QUALITY**

----

***Index***

**Summary      of Allowance for Loan Losses**

|                                                          |   | For                the nine months      |      |   | For                the year ended |   |
|---------------------------------------------------------------|--------|-----------------------------------------|-----------|--------|-----------------------------------|--------|
|                                                          |   | Ended                September 30, |      |   | December 31,                 |   |
|                                                          |   | 2007                                    |      |   | 2006                              |   |   | 2006 |   |
| Balance,                beginning of period                   |   | $                                       | 1,884,080 |   |                              | $      | 1,760,377 |   |   | $ | 1,760,377 |   |
| Charge-offs:                                                  |   |                                    |      |   |                              |   |   |   |   |   |   |   |
| Commercial,                financial and agricultural         |   |                                    | (105,129  | )      |                              |   | (119,204 | ) |   |   | (163,191 | ) |
| Real                Estate:                                   |   |                                    |      |   |                              |   |   |   |   |   |   |   |
| Construction                                                  |   |                                    | -         |   |                              |   | - |   |   |   | - |   |
| Mortgage                                                      |   |                                    | -         |   |                              |   | (14,161 | ) |   |   | (14,160 | ) |
| Consumer                                                      |   |                                    | (62,063   | )      |                              |   | (26,323 | ) |   |   | (41,104 | ) |
| Total                charge-offs                              |   |                                    | (167,192  | )      |                              |   | (159,688 | ) |   |   | (218,455 | ) |
| Recoveries                                                    |   |                                    |      |   |                              |   |   |   |   |   |   |   |
| Commercial,                financial, and agricultural        |   |                                    | 3,838     |   |                              |   | 20,149 |   |   |   | 22,538 |   |
| Real                Estate:                                   |   |                                    |      |   |                              |   |   |   |   |   |   |   |
| Construction                                                  |   |                                    | -         |   |                              |   | - |   |   |   | - |   |
| Mortgage                                                      |   |                                    | -         |   |                              |   | 6,483 |   |   |   | - |   |
| Consumer                                                      |   |                                    | 22,759    |   |                              |   | 22,288 |   |   |   | 34,975 |   |
| Total                Recoveries                               |   |                                    | 26,597    |   |                              |   | 48,920 |   |   |   | 57,513 |   |
| Net                (charge-offs) recoveries                   |   |                                    | (140,595  | )      |                              |   | (110,768 | ) |   |   | (160,942 | ) |
| Provision                charged to operations                |   |                                    | 224,970   |   |                              |   | 213,200 |   |   |   | 284,645 |   |
| Balance,                end of period                         |   | $                                       | 1,968,455 |   |                              | $      | 1,862,809 |   |   | $ | 1,884,080 |   |
|                                                          |   |                                    |      |   |                              |   |   |   |   |   |   |   |
| Percentage                of net charge-offs to average loans |   |                                    | .15       | %      |                              |   | .14 | % |   |   | .14 | % |
| Percentage                of allowance to period-end loans    |   |                                    | 1.51      | %      |                              |   | 1.57 | % |   |   | 1.54 | % |

----

***Index***

**CAPITAL      RESOURCES**

----

***Index***

**REGULATORY      CAPITAL**

|                                                    |   | **Actual**                            |   |   | **For                      Capital Adequacy Purposes** |   |   | **To                        Be Well Capitalized Under Prompt Corrective Action                        Provisions** |   |
|---------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                    |   |                                  |   |   |                                                   |   |   |                                                                                                               |   |
|                                                    |   | **Amount**                            |   |   | **Ratio**                                              |   |   | **Amount**                                                                                                         |   |   | **Ratio** |   |   | **Amount** |   |   | **Ratio** |   |
|                                                    |   | (Dollars                in Thousands) |   |
| As                of September 30, 2007                 |   |                                  |   |   |                                                   |   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Total                Capital (to Risk Weighted Assets)  |   |                                  |   |   |                                                   |   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                            |   | $                                     | 20,388 |   |                                                   |   | 14.89  | %                                                                                                                  |   | $ | 10,953 |   |   |   | 8.00 | % |   | $ | 13,692 |   |   |   | 10.00 | % |
| Bank                                                    |   | $                                     | 19,297 |   |                                                   |   | 14.12  | %                                                                                                                  |   | $ | 10,932 |   |   |   | 8.00 | % |   | $ | 13,665 |   |   |   | 10.00 | % |
|                                                    |   |                                  |   |   |                                                   |   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 Capital (to Risk Weighted Assets) |   |                                  |   |   |                                                   |   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                            |   | $                                     | 18,673 |   |                                                   |   | 13.64  | %                                                                                                                  |   | $ | 5,477 |   |   |   | 4.00 | % |   | $ | 8,215 |   |   |   | 6.00 | % |
| Bank                                                    |   | $                                     | 17,585 |   |                                                   |   | 12.87  | %                                                                                                                  |   | $ | 5,466 |   |   |   | 4.00 | % |   | $ | 8,199 |   |   |   | 6.00 | % |
|                                                    |   |                                  |   |   |                                                   |   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                1 Capital (to Average Assets)       |   |                                  |   |   |                                                   |   |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                            |   | $                                     | 18,673 |   |                                                   |   | 11.17  | %                                                                                                                  |   | $ | 6,684 |   |   |   | 4.00 | % |   | $ | 8,355 |   |   |   | 5.00 | % |
| Bank                                                    |   | $                                     | 17,585 |   |                                                   |   | 10.54  | %                                                                                                                  |   | $ | 6,674 |   |   |   | 4.00 | % |   | $ | 8,342 |   |   |   | 5.00 | % |

**LIQUIDITY**

----

***Index***

**IMPACT      OF INFLATION AND CHANGING PRICES**

**Item      3(A)T.  Controls and      Procedures**

----

***Index***

| **Part                II.** | **OTHER                INFORMATION** |
|-----------------------------|--------------------------------------|

| **Item                4.** | **Submission                of Matters to a Vote of Security                Holders** |
|----------------------------|---------------------------------------------------------------------------------------|

| **Item                5.** | **Other                Information** |
|----------------------------|--------------------------------------|

| **Item                6.** | **Exhibits** |
|----------------------------|--------------|

|  | 31.1 – | Certification                of the Chief Executive Officer pursuant to Rule 13a-14(a) under the                Securities Exchange Act of 1934 as adopted pursuant to Section 302                of the                Sarbanes-Oxley Act of 2002 |
|--|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 31.2 – | Certification                of the Chief Financial Officer pursuant to Rule 13a-14(a) under the                Securities Exchange Act of 1934 as adopted pursuant to Section 302                of the                Sarbanes-Oxley Act of 2002 |
|--|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.1 – | Certification                by the Chief Executive Officer pursuant to 18 U.S.C. 1350 as adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
|--|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.2 – | Certification                by the Chief Financial Officer pursuant to 18 U.S.C. 1350 as adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
|--|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Index***

**SIGNATURES**

|                                   | **WESTSTAR                FINANCIAL SERVICES CORPORATION** |   |
|----------------------------------------|------------------------------------------------------------|--------|
|                                   |                                                       |   |   |   |
|                                   |                                                       |   |   |   |
| Date:                November 13, 2007 |                                                       | By:    | /s/                G. Gordon Greenwood |   |
|                                   |                                                       |   |   |   |
|                                   |                                                       |   | G.                Gordon Greenwood |   |
|                                   |                                                       |   | President                and Chief Executive Officer |   |
|                                   |                                                       |   |   |   |
|                                   |                                                       |   |   |   |
|                                   |                                                       |   |   |   |
| Date:                November 13, 2007 |                                                       | By:    | /s/                Randall C. Hall |   |
|                                   |                                                       |   |   |   |
|                                   |                                                       |   | Randall                C. Hall |   |
|                                   |                                                       |   | Executive                Vice President and Chief Financial |   |
|                                   |                                                       |   | and                Principal Accounting Officer |   |

----