Exhibit
99.1


FOR
      RELEASE:
            October
      24, 2008





WESTSTAR
FINANCIAL SERVICES CORPORATION


REPORTS
EXCEPTIONAL GROWTH AND SOLID THIRD QUARTER EARNINGS





ASHEVILLE,
NORTH CAROLINA - Weststar Financial Services Corporation (OTC BB: “WFSC”)
reported record consolidated assets of $193.1 million at September 30, 2008 – a
13% increase over September 30, 2007.  Total loans on September 30,
2008 were $157.7 million – an increase of 21% over from the level reported a
year earlier.  Deposits reflected 14% growth to $166.5 million at
September 30, 2008 compared to the prior year, and shareholders’ equity
increased 9% over September 30, 2007 to $15.8 million at September 30,
2008.





Consolidated
net income totaled $349 thousand for the three months ended September 30, 2008
compared to $533 thousand for the comparable period in 2007 – a decrease of
35%.  On a diluted per share basis, earnings for the three-month
periods of 2008 and 2007 were $.15 vs. $.23 – a decrease of 35%.  For
the nine-month periods ended September 30, 2008, net income totaled $1,020
thousand compared to $1,558 thousand for the comparable period in 2007 – a
decrease of 35%.  On a diluted per share basis, earnings for the
nine-month periods ended September 20, 2008 and 2007, respectively, were $.45
and $.68 – a decrease of 34%.  The decrease in earnings was primarily
attributable to a compression in the Company’s net interest margin following
Federal Open Market Committee interest rate cut initiatives, increased operating
expenses to support overall growth in loans and deposits and an increased
provision for loan losses to support loan growth.  Asset quality
remained strong and demonstrated continued improvement with nonperforming loans
to total assets of .04%, .11% and .06% at September 30, 2008, December 31, 2007
and September 30, 2007, respectively.





Return on
assets was .75% compared to 1.27%, and return on equity was 8.74% compared to
15.03% for the three-month periods ended September 30, 2008 and 2007,
respectively.  For the nine-month periods ended September 30, 2008 and
2007, respectively, return on assets was .76% compared to 1.27%, and return on
equity was 8.64% compared to 15.21%.





“Despite
the turmoil and uncertainty in the financial markets, the fundamentals and
overall safety and soundness of our bank remain strong, and we believe we are
well positioned to meet the needs of our customers during these challenging
times.  We will continue to manage the bank with sound and cautious
policies that have served us well for over a decade, and have earned us a 5-Star
Rating from BauerFinancial, Inc.,” stated G. Gordon Greenwood, President &
Chief Executive Officer.





Weststar
Financial Services Corporation is the parent company of The Bank of
Asheville.  Weststar Financial Services Corporation owns 100% interest
in Weststar Financial Services Corporation I, a statutory trust.  The
Bank operates five full-service banking offices in Buncombe County, North
Carolina – Downtown Asheville, Candler, Leicester, South Asheville and
Reynolds.





This news
release contains forward-looking statements.  Such statements are
subject to certain factors that may cause the company’s results to vary from
those expected.  These factors include changing economic and financial
market conditions, competition, ability to execute our business plan, items
already mentioned in this press release, and other factors described in our
filings with the Securities and Exchange Commission.  Readers are
cautioned not to place undue reliance on these forward-looking statements, which
reflect management’s judgment only as of the date hereof.  The company
undertakes no obligation to publicly revise these forward-looking statements to
reflect events and circumstances that arise after the date hereof.


* * * *
*


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-mailrhall@bankofasheville.com


5





Weststar
      Financial Services Corporation & SubsidiarySelected
      Financial DataThree
      Months Ended
              
              
              
              
              Nine
      Months EndedSeptember
      30,
              
              
              
              
              
              September
      30,2008
              
              2007
              
              %
      change
              
              2008
              
              2007
              
              %
      changeConsolidated
      earning summary:Interest
      income
              
              $
              3,080,208
              
              
              $
              3,314,963
              
              
              
              -7.1
              %
              
              $
              9,055,999
              
              
              $
              9,615,558
              
              
              
              -5.8
              %Interest
      expense
              
              
              1,180,997
              
              
              1,363,045
              
              
              
              -13.4
              %
              
              
              3,713,421
              
              
              3,939,856
              
              
              
              -5.8
              %Net
      interest income
              
              
              1,899,211
              
              
              
              1,951,918
              
              
              
              -2.7
              %
              
              
              5,342,578
              
              
              
              5,675,702
              
              
              
              -5.9
              %Provision
      for loan losses
              
              
              320,635
              
              
              137,395
              
              
              
              133.4
              %
              
              
              508,760
              
              
              224,970
              
              
              
              126.2
              %Net
      interest income afterprovision
      for loan losses
              
              
              1,578,576
              
              
              
              1,814,523
              
              
              
              -13.0
              %
              
              
              4,833,818
              
              
              
              5,450,732
              
              
              
              -11.3
              %Other
      income
              
              
              425,618
              
              
              
              386,784
              
              
              
              10.0
              %
              
              
              1,216,501
              
              
              
              1,131,267
              
              
              
              7.5
              %Other
      expenses
              
              
              1,478,381
              
              
              1,368,193
              
              
              
              8.1
              %
              
              
              4,511,361
              
              
              4,141,710
              
              
              
              8.9
              %Income
      before taxes
              
              
              525,813
              
              
              
              833,114
              
              
              
              -36.9
              %
              
              
              1,538,958
              
              
              
              2,440,289
              
              
              
              -36.9
              %Income
      taxes
              
              
              176,809
              
              
              300,186
              
              
              
              -41.1
              %
              
              
              519,334
              
              
              882,758
              
              
              
              -41.2
              %Net
      income
              
              $
              349,004
              
              $
              532,928
              
              
              
              -34.5
              %
              
              $
              1,019,624
              
              
              $
              1,557,531
              
              
              
              -34.5
              %Earnings
      per share - Basic
              
              $
              0.16
              
              
              $
              0.25
              
              
              
              -36.0
              %
              
              $
              0.48
              
              $
              0.74
              
              
              
              -35.1
              %Earnings
      per share - Diluted
              
              
              0.15
              
              
              0.23
              
              
              
              -34.8
              %
              
              
              0.45
              
              
              0.68
              
              
              
              -33.8
              %Average
      Shares - Basic
              
              
              2,122,147
              
              
              
              2,113,485
              
              
              
              0.4
              %
              
              
              2,120,195
              
              
              
              2,109,468
              
              
              
              0.5
              %Average
      Shares - Diluted
              
              
              2,273,388
              
              
              
              2,287,007
              
              
              
              -0.6
              %
              
              
              2,278,072
              
              
              
              2,287,968
              
              
              
              -0.4
              %Consolidated
      balance sheet data:Total
      Assets
              
              
              
              
              
              
              
              
              
              
              
              
              
              $
              193,073,062
              
              
              $
              170,393,834
              
              
              
              13.3
              %Total
      Deposits
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              166,519,486
              
              
              
              145,911,704
              
              
              
              14.1
              %Loans
      (gross)
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              157,724,566
              
              
              
              129,952,653
              
              
              
              21.4
              %Investments
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              23,681,294
              
              
              
              27,050,604
              
              
              
              -12.5
              %Shareholders'
      Equity
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              15,783,148
              
              
              
              14,519,658
              
              
              
              8.7
              %Consolidated
      average balance sheet data:Total
      Assets
              
              $
              185,946,806
              
              
              $
              166,531,452
              
              
              
              11.7
              %
              
              $
              179,776,991
              
              
              $
              163,707,504
              
              
              
              9.8
              %Total
      Deposits
              
              
              159,510,362
              
              
              
              142,455,579
              
              
              
              12.0
              %
              
              
              153,671,327
              
              
              
              139,180,204
              
              
              
              10.4
              %Loans
      (gross)
              
              
              152,497,479
              
              
              
              125,301,745
              
              
              
              21.7
              %
              
              
              143,687,632
              
              
              
              125,363,750
              
              
              
              14.6
              %Investments
              
              
              24,553,284
              
              
              
              26,531,300
              
              
              
              -7.5
              %
              
              
              25,640,902
              
              
              
              26,499,974
              
              
              
              -3.2
              %Shareholders'
      Equity
              
              
              15,892,539
              
              
              
              14,071,165
              
              
              
              12.9
              %
              
              
              15,763,655
              
              
              
              13,695,211
              
              
              
              15.1
              %Consolidated
      performance ratios:Return
      on average assets*
              
              
              0.75
              %
              
              
              1.27
              %
              
              
              
              
              
              
              0.76
              %
              
              
              1.27
              %Return
      on average equity*
              
              
              8.74
              %
              
              
              15.03
              %
              
              
              
              
              
              
              8.64
              %
              
              
              15.21
              %Capital
      to Assets
              
              
              8.55
              %
              
              
              8.45
              %
              
              
              
              
              
              
              8.77
              %
              
              
              8.37
              %Consolidated
      asset quality data and ratios:Nonaccruing
      loans
              
              
              
              
              
              
              
              
              
              
              
              
              
              $
              82,693
              
              
              $
              96,968
              
              
              
              -14.7
              %Accruing
      loans 90 days past due
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              -
              
              
              -
              
              
              
              -Nonperforming
      loans
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              82,693
              
              
              
              96,968
              
              
              
              -14.7
              %Foreclosed
      properties
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              227,407
              
              
              87,787
              
              
              
              159.0
              %Nonperforming
      assets
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              310,100
              
              
              184,755
              
              
              
              67.8
              %Allowance
      for loan losses
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              2,355,244
              
              
              1,968,455
              
              
              
              19.7
              %Loans
      charged off
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              283,174
              
              
              
              167,192
              
              
              
              69.4
              %Recoveries
      of loans charged off
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              39,533
              
              
              26,597
              
              
              
              48.6
              %Net
      loan charge-offs
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              243,641
              
              
              140,595
              
              
              
              73.3
              %Net
      charge-offs to average loans*
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              0.23
              %
              
              
              0.15
              %
              
              
              53.4
              %Nonperforming
      loans to total assets
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              0.04
              %
              
              
              0.06
              %
              
              
              -29.7
              %Allowance
      coverage of nonperforming loans
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              2848.18
              %
              
              
              2030.00
              %
              
              
              40.3
              %Allowance
      for loan losses to gross loans
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              1.49
              %
              
              
              1.51
              %
              
              
              -1.6
              %*Annualized
      based on number of days in the period.


6


Weststar
      Financial Services Corporation & SubsidiarySupplemental
      Quarterly Financial DataQuarters
      EndedSept
      30,
              
              
              Jun
      30,
              
              
              Mar
      31,
              
              
              Dec
      31,
              
              
              Sept
      30,2008
              
              
              2008
              
              
              2008
              
              
              2007
              
              
              2007Consolidated
      earning summary:Interest
      income
              
              $
              3,080,208
              
              
              $
              2,895,378
              
              
              $
              3,080,413
              
              
              $
              3,285,876
              
              
              $
              3,314,963Interest
      expense
              
              
              1,180,997
              
              
              
              1,185,292
              
              
              
              1,347,132
              
              
              
              1,355,650
              
              
              
              1,363,045Net
      interest income
              
              
              1,899,211
              
              
              
              1,710,086
              
              
              
              1,733,281
              
              
              
              1,930,226
              
              
              
              1,951,918Provision
      for loan losses
              
              
              320,635
              
              
              
              150,680
              
              
              
              37,445
              
              
              
              181,755
              
              
              
              137,395Net
      interest income after provision for loan losses
              
              
              1,578,576
              
              
              
              1,559,406
              
              
              
              1,695,836
              
              
              
              1,748,471
              
              
              
              1,814,523Other
      income
              
              
              425,618
              
              
              
              415,849
              
              
              
              375,034
              
              
              
              397,499
              
              
              
              386,784Other
      expenses
              
              
              1,478,381
              
              
              
              1,563,388
              
              
              
              1,469,592
              
              
              
              1,411,526
              
              
              
              1,368,193Income
      before taxes
              
              
              525,813
              
              
              
              411,867
              
              
              
              601,278
              
              
              
              734,444
              
              
              
              833,114Income
      taxes
              
              
              176,809
              
              
              
              129,384
              
              
              
              213,141
              
              
              
              245,969
              
              
              
              300,186Net
      income
              
              $
              349,004
              
              
              $
              282,483
              
              
              $
              388,137
              
              
              $
              488,475
              
              
              $
              532,928Earnings
      per share - Basic
              
              $
              0.16
              
              
              $
              0.13
              
              
              $
              0.18
              
              
              $
              0.23
              
              
              $
              0.25Earnings
      per share - Diluted
              
              
              0.15
              
              
              
              0.12
              
              
              
              0.17
              
              
              
              0.21
              
              
              
              0.23Average
      Shares - Basic
              
              
              2,122,147
              
              
              
              2,119,461
              
              
              
              2,118,956
              
              
              
              2,117,973
              
              
              
              2,113,485Average
      Shares - Diluted
              
              2,273,388
              
              
              
              2,279,884
              
              
              
              2,279,551
              
              
              
              2,283,290
              
              
              
              2,287,007Consolidated
      balance sheet data:Total
      Assets
              
              $
              193,073,062
              
              
              $
              182,923,687
              
              
              $
              180,968,119
              
              
              $
              174,257,998
              
              
              $
              170,393,834Total
      Deposits
              
              
              166,519,486
              
              
              
              155,212,188
              
              
              
              155,155,491
              
              
              
              149,191,016
              
              
              
              145,911,704Loans
      (gross)
              
              
              157,724,566
              
              
              
              148,338,170
              
              
              
              137,192,577
              
              
              
              135,734,224
              
              
              
              129,952,653Investments
              
              
              23,681,294
              
              
              
              25,076,449
              
              
              
              26,494,464
              
              
              
              26,113,294
              
              
              
              27,050,604Shareholders'
      Equity
              
              15,783,148
              
              
              
              15,782,299
              
              
              
              15,793,519
              
              
              
              15,179,239
              
              
              
              14,519,658Consolidated
      average balance sheet data:Total
      Assets
              
              $
              185,946,806
              
              
              $
              178,016,532
              
              
              $
              175,340,851
              
              
              $
              171,465,008
              
              
              $
              166,531,452Total
      Deposits
              
              
              159,510,362
              
              
              
              151,838,703
              
              
              
              149,617,026
              
              
              
              146,633,893
              
              
              
              142,455,579Loans
      (gross)
              
              
              152,497,479
              
              
              
              141,392,197
              
              
              
              137,076,409
              
              
              
              133,456,205
              
              
              
              125,301,745Investments
              
              
              24,553,284
              
              
              
              26,011,589
              
              
              
              26,369,785
              
              
              
              26,579,297
              
              
              
              26,531,300Shareholders'
      Equity
              
              15,892,539
              
              
              
              15,920,103
              
              
              
              15,476,307
              
              
              
              14,893,132
              
              
              
              14,071,165Consolidated
      performance ratios:Return
      on average assets*
              
              
              0.75
              %
              
              
              0.64
              %
              
              
              0.89
              %
              
              
              1.13
              %
              
              
              1.27
              %Return
      on average equity*
              
              
              8.74
              %
              
              
              7.14
              %
              
              
              10.09
              %
              
              
              13.01
              %
              
              
              15.03
              %Capital
      to Assets
              
              8.55
              %
              
              
              8.94
              %
              
              
              8.83
              %
              
              
              8.69
              %
              
              
              8.45
              %Consolidated
      asset quality data and ratios:Nonaccruing
      loans
              
              $
              82,693
              
              
              $
              187,157
              
              
              $
              189,126
              
              
              $
              195,683
              
              
              $
              96,968Accruing
      loans 90 days past due
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Nonperforming
      loans
              
              
              82,693
              
              
              
              187,157
              
              
              
              189,126
              
              
              
              195,683
              
              
              
              96,968Foreclosed
      properties
              
              
              227,407
              
              
              
              51,006
              
              
              
              87,787
              
              
              
              87,787
              
              
              
              87,787Nonperforming
      assets
              
              
              310,100
              
              
              
              238,163
              
              
              
              276,913
              
              
              
              283,470
              
              
              
              184,755Allowance
      for loan losses
              
              
              2,355,244
              
              
              
              2,252,385
              
              
              
              2,110,658
              
              
              
              2,090,125
              
              
              
              1,968,455Loans
      charged off
              
              
              236,362
              
              
              
              16,910
              
              
              
              29,902
              
              
              
              89,549
              
              
              
              108,174Recoveries
      of loans charged off
              
              
              18,587
              
              
              
              7,956
              
              
              
              12,990
              
              
              
              29,464
              
              
              
              9,735Net
      loan charge-offs
              
              
              217,775
              
              
              
              8,954
              
              
              
              16,912
              
              
              
              60,085
              
              
              
              98,439Net
      charge-offs to average loans*
              
              
              0.57
              %
              
              
              0.03
              %
              
              
              0.05
              %
              
              
              0.18
              %
              
              
              0.31
              %Nonperforming
      loans to total assets
              
              
              0.04
              %
              
              
              0.10
              %
              
              
              0.10
              %
              
              
              0.11
              %
              
              
              0.06
              %Allowance
      coverage of nonperforming loans
              
              
              2848.18
              %
              
              
              1203.47
              %
              
              
              1116.01
              %
              
              
              1068.12
              %
              
              
              2030.00
              %Allowance
      for loan losses to gross loans
              
              1.49
              %
              
              
              1.52
              %
              
              
              1.54
              %
              
              
              1.54
              %
              
              
              1.51
              %*
      Annualized based on number of days in the period.


7