**UNITED      STATES SECURITITES AND EXCHANGE COMMISSION**

**Washington,      D.C. 29549**

**FORM      10-QSB**

**(Mark      One)**

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

|   | For                the quarterly period ended June 30,                2007 |
|--------|----------------------------------------------------------------------------|

| o | **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 June 30, 2007 and December 31,                2006                                                                         | 3        |
|                                                                                                                                                                  |     |
| Consolidated                Statements of Operations Three and Six Months                Ended June 30, 2007 and 2006                                                 | 4        |
|                                                                                                                                                                  |     |
| Consolidated                Statements of Comprehensive                Income    Three and Six Months Ended June 30, 2007 and                2006 | 5        |
|                                                                                                                                                                  |     |
| Consolidated                Statements of Changes in Shareholders’ Equity Six                Months Ended June 30, 2007 and 2006                                | 6        |
|                                                                                                                                                                  |     |
| Consolidated                Statements of Cash Flows Six Months Ended June 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                                                                      | 23       |
|                                                                                                                                                                  |     |
| Item                6 –Exhibit Index                                                                                                                            | 23       |
|                                                                                                                                                                  |     |
| Signatures                                                                                                                                                            | 24       |

----

*Index*

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

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

| **Weststar                Financial Services Corporation & Subsidiary**  |   |                       |        |   |                           |     |
|------------------------------------------------------------------------------|--------|----------------------------|-------------|--------|--------------------------------|----------|
| **Consolidated                Balance Sheets**                               |   | (unaudited)                |        |   |                           |     |
|                                                                         |   | **June                30** |        |   | **December                31** |     |
|                                                                         |   | **2007**                   |        |   | ** **                     | **2006** | ***** |
| **ASSETS:**                                                                  |   |                       |        |   |                           |     |   |
| Cash                and cash equivalents:                                    |   |                       |        |   |                           |     |   |
| Cash                and due from banks                                       |   | $                          | 5,126,383   |   |                           | $        | 4,816,290 |   |
| Interest-bearing                deposits                                     |   |                       | 213,162     |   |                           |     | 210,337 |   |
| Federal                funds sold                                            |   |                       | 5,819,000   |   |                           |     | - |   |
| Total                cash and cash equivalents                               |   |                       | 11,158,545  |   |                           |     | 5,026,627 |   |
| Investment                securities- available for sale, at fair value      |   |                       |        |   |                           |     |   |   |
| (amortized                cost of $26,500,125 and $26,415,000, respectively) |   |                       | 25,777,376  |   |                           |     | 26,241,010 |   |
| Loans                                                                        |   |                       | 123,199,519 |   |                           |     | 122,463,720 |   |
| Allowance                for loan losses                                     |   |                       | (1,929,498  | )      |                           |     | (1,884,080 | ) |
| Net                loans                                                     |   |                       | 121,270,021 |   |                           |     | 120,579,640 |   |
| Premises                and equipment, net                                   |   |                       | 2,922,144   |   |                           |     | 3,004,590 |   |
| Accrued                interest receivable                                   |   |                       | 738,004     |   |                           |     | 920,280 |   |
| Federal                Home Loan Bank stock, at cost                         |   |                       | 463,300     |   |                           |     | 457,000 |   |
| Deferred                income taxes                                         |   |                       | 764,432     |   |                           |     | 519,456 |   |
| Foreclosed                properties                                         |   |                       | 574,633     |   |                           |     | 106,000 |   |
| Other                assets                                                  |   |                       | 744,000     |   |                           |     | 789,859 |   |
|                                                                         |   |                       |        |   |                           |     |   |   |
| TOTAL                                                                        |   | $                          | 164,412,455 |   |                           | $        | 157,644,462 |   |
|                                                                         |   |                       |        |   |                           |     |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                |   |                       |        |   |                           |     |   |   |
| Liabilities:                                                                 |   |                       |        |   |                           |     |   |   |
| Deposits:                                                                    |   |                       |        |   |                           |     |   |   |
| Demand                                                                       |   | $                          | 28,698,255  |   |                           | $        | 27,463,717 |   |
| NOW                accounts                                                  |   |                       | 13,878,724  |   |                           |     | 14,198,547 |   |
| Money                market accounts                                         |   |                       | 29,233,601  |   |                           |     | 32,367,876 |   |
| Savings                                                                      |   |                       | 2,312,141   |   |                           |     | 1,956,577 |   |
| Time                deposits of $100,000 or more                             |   |                       | 23,616,516  |   |                           |     | 18,747,373 |   |
| Other                time deposits                                           |   |                       | 43,175,979  |   |                           |     | 40,136,991 |   |
| Total                deposits                                                |   |                       | 140,915,216 |   |                           |     | 134,871,081 |   |
| Short-term                borrowings                                         |   |                       | 293,212     |   |                           |     | 306,000 |   |
| Accrued                interest payable                                      |   |                       | 531,439     |   |                           |     | 498,390 |   |
| Other                liabilities                                             |   |                       | 867,470     |   |                           |     | 872,138 |   |
| Long-term                debt                                                |   |                       | 8,124,000   |   |                           |     | 8,124,000 |   |
| Total                liabilities                                             |   |                       | 150,731,337 |   |                           |     | 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 2,109,833 at June 30, 2007            |   |                       |        |   |                           |     |   |   |
| and                1,682,290 at December 31, 2006, respectively              |   |                       | 2,109,833   |   |                           |     | 1,682,290 |   |
| Additional                paid-in capital                                    |   |                       | 6,112,814   |   |                           |     | 6,528,387 |   |
| Retained                earnings                                             |   |                       | 5,891,765   |   |                           |     | 4,869,092 |   |
| Accumulated                other comprehensive loss                          |   |                       | (433,294    | )      |                           |     | (106,916 | ) |
| Total                shareholders’ equity                              |   |                       | 13,681,118  |   |                           |     | 12,972,853 |   |
| Total                                                                        |   | $                          | 164,412,455 |   |                           | $        | 157,644,462 |   |

----

*Index*

| **Weststar                Financial Services Corporation & Subsidiary** |   |                              |      |   |                              |   |      |
|-----------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|-----------------------------------|--------|-----------|
| **Consolidated                Statements of Operations**(unaudited)         |   | **Three                Months**   |      |   | **Six                Months**     |   |
|                                                                        |   | **Ended                June 30,** |      |   | **Ended                June 30,** |   |
|                                                                        |   | **2007**                          |      |   | **2006**                          |   |      | **2007** |   |   | **2006** |   |
| **INTEREST                INCOME:**                                         |   |                              |      |   |                              |   |      |   |   |   |   |   |
| Interest                and fees on loans                                   |   | $                                 | 2,877,884 |   |                              | $      | 2,362,750 |   |   | $ | 5,653,624 |   |   | $ | 4,447,867 |   |
| Federal                funds sold                                           |   |                              | 14,000    |   |                              |   | 7,069     |   |   |   | 38,923 |   |   |   | 24,061 |   |
| Interest-bearing                deposits                                    |   |                              | 1,316     |   |                              |   | 1,612     |   |   |   | 3,337 |   |   |   | 3,049 |   |
| Investments:                                                                |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| Taxable                interest income                                      |   |                              | 222,155   |   |                              |   | 201,966   |   |   |   | 431,203 |   |   |   | 404,263 |   |
| Nontaxable                interest income                                   |   |                              | 84,322    |   |                              |   | 88,551    |   |   |   | 158,818 |   |   |   | 156,188 |   |
| Corporate                dividends                                          |   |                              | 7,119     |   |                              |   | 7,112     |   |   |   | 14,690 |   |   |   | 13,275 |   |
| Total                interest income                                        |   |                              | 3,206,796 |   |                              |   | 2,669,060 |   |   |   | 6,300,595 |   |   |   | 5,048,703 |   |
| **INTEREST                EXPENSE:**                                        |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| Time                deposits of $100,000 or more                            |   |                              | 276,378   |   |                              |   | 194,271   |   |   |   | 559,179 |   |   |   | 339,197 |   |
| Other                time and savings deposits                              |   |                              | 855,631   |   |                              |   | 623,520   |   |   |   | 1,692,984 |   |   |   | 1,196,859 |   |
| Short-term                borrowings                                        |   |                              | 44,424    |   |                              |   | 14,165    |   |   |   | 48,851 |   |   |   | 36,602 |   |
| Long-term                debt                      |   |                              | 138,634   |   |                              |   | 135,259   |   |   |   | 275,797 |   |   |   | 264,214 |   |
| Total                interest expense                                       |   |                              | 1,315,067 |   |                              |   | 967,215   |   |   |   | 2,576,811 |   |   |   | 1,836,872 |   |
| **NET                INTEREST INCOME**                                      |   |                              | 1,891,729 |   |                              |   | 1,701,845 |   |   |   | 3,723,784 |   |   |   | 3,211,831 |   |
| **PROVISION                FOR LOAN LOSSES**                                |   |                              | 69,720    |   |                              |   | 61,600    |   |   |   | 87,575 |   |   |   | 152,450 |   |
| **NET                INTEREST INCOME AFTER PROVISION**                      |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| **FOR                LOAN LOSSES**                                          |   |                              | 1,822,009 |   |                              |   | 1,640,245 |   |   |   | 3,636,209 |   |   |   | 3,059,381 |   |
| **OTHER                INCOME:**                                            |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| Services                charges on deposit accounts                         |   |                              | 288,689   |   |                              |   | 303,107   |   |   |   | 564,511 |   |   |   | 592,280 |   |
| Other                service fees and commissions                           |   |                              | 85,901    |   |                              |   | 75,219    |   |   |   | 161,891 |   |   |   | 146,817 |   |
| Securities                losses                                            |   |                              | -         |   |                              |   | (123,684  | ) |   |   | - |   |   |   | (208,124 | ) |
| Equity                in loss of Bank of Asheville Mortgage                 |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| Company,                LLC                                                 |   |                              | (11,212   | )      |                              |   | (5,402    | ) |   |   | (34,066 | ) |   |   | (16,651 | ) |
| Other                                                                       |   |                              | 30,736    |   |                              |   | 21,235    |   |   |   | 52,147 |   |   |   | 41,356 |   |
| Total                other income                                           |   |                              | 394,114   |   |                              |   | 270,475   |   |   |   | 744,483 |   |   |   | 555,678 |   |
| **OTHER                EXPENSES:**                                          |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| Salaries                and wages                                           |   |                              | 570,856   |   |                              |   | 512,478   |   |   |   | 1,142,173 |   |   |   | 996,461 |   |
| Employee                benefits                                            |   |                              | 108,386   |   |                              |   | 85,471    |   |   |   | 207,767 |   |   |   | 169,339 |   |
| Occupancy                expense, net                                       |   |                              | 119,080   |   |                              |   | 83,868    |   |   |   | 238,702 |   |   |   | 170,114 |   |
| Equipment                rentals, depreciation and                          |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| maintenance                                                                 |   |                              | 108,011   |   |                              |   | 99,154    |   |   |   | 213,819 |   |   |   | 192,019 |   |
| Supplies                                                                    |   |                              | 69,635    |   |                              |   | 61,606    |   |   |   | 130,791 |   |   |   | 122,544 |   |
| Professional                Fees                                            |   |                              | 70,790    |   |                              |   | 42,039    |   |   |   | 178,047 |   |   |   | 104,643 |   |
| Data                Processing Fees                                         |   |                              | 162,006   |   |                              |   | 139,218   |   |   |   | 319,222 |   |   |   | 278,604 |   |
| Marketing                                                                   |   |                              | 80,989    |   |                              |   | 81,853    |   |   |   | 139,896 |   |   |   | 128,969 |   |
| (Income)                expenses from foreclosed properties                 |   |                              | (2,000    | )      |                              |   | (2,009    | ) |   |   | 2,629 |   |   |   | (917 | ) |
| Other                                                                       |   |                              | 110,494   |   |                              |   | 90,213    |   |   |   | 200,471 |   |   |   | 146,615 |   |
| Total                other expenses                                         |   |                              | 1,398,247 |   |                              |   | 1,193,891 |   |   |   | 2,773,517 |   |   |   | 2,308,391 |   |
| **INCOME                BEFORE INCOME TAXES**                               |   |                              | 817,876   |   |                              |   | 716,829   |   |   |   | 1,607,175 |   |   |   | 1,306,668 |   |
| **INCOME                TAX PROVISION**                                     |   |                              | 293,304   |   |                              |   | 250,417   |   |   |   | 582,572 |   |   |   | 457,067 |   |
| **NET                INCOME**                                               |   | $                                 | 524,572   |   |                              | $      | 466,412   |   |   |   | 1,024,603 |   |   |   | 849,601 |   |
|                                                                        |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| **EARNINGS                PER SHARE:**                                      |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |
| Basic                                                                       |   | $                                 | .25       |   |                              | $      | .22       |   |   | $ | .49 |   |   | $ | 0.40 |   |
| Diluted                                                                     |   | $                                 | .23       |   |                              | $      | .21       |   |   | $ | .45 |   |   | $ | 0.37 |   |
|                                                                        |   |                              |      |   |                              |   |      |   |   |   |   |   |   |   |   |   |

----

*Index*

**Weststar      Financial Services Corporation & Subsidiary**

**Consolidated      Statements of Comprehensive Income **

|                                                            |   | **Three                Months**   |     |   | **Six                Months**     |   |
|-----------------------------------------------------------------|--------|-----------------------------------|----------|--------|-----------------------------------|--------|
|                                                            |   | **Ended                June 30,** |     |   | **Ended                June 30,** |   |
|                                                            |   | **2007**                          |     |   | **2006**                          |   |   | **2007** |   |   | **2006** |   |
| **NET                INCOME**                                   |   | $                                 | 524,572  |   |                              | $      | 466,412 |   |   | $ | 1,024,603 |   |   | $ | 849,601 |   |
| OTHER                COMPREHENSIVE INCOME                       |   |                              |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding losses on securities          |   |                              |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| available                for sale                               |   |                              | (518,925 | )      |                              |   | (364,752 | ) |   |   | (531,128 | ) |   |   | (451,572 | ) |
| Tax                effect                                       |   |                              | 200,046  |   |                              |   | 140,594 |   |   |   | 204,750 |   |   |   | 174,082 |   |
| Unrealized                holding losses on securities          |   |                              |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| available                for sale, net of tax                   |   |                              | (318,879 | )      |                              |   | (224,158 | ) |   |   | (326,378 | ) |   |   | (277,490 | ) |
|                                                            |   |                              |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                adjustment for realized losses  |   |                              | -        |   |                              |   | 123,684 |   |   |   | - |   |   |   | 280,124 |   |
| Tax                effect                                       |   |                              | -        |   |                              |   | (47,662 | ) |   |   | - |   |   |   | (80,232 | ) |
| Reclassification                adjustment for realized losses, |   |                              |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| net                of tax                                       |   |                              | -        |   |                              |   | 76,022 |   |   |   | - |   |   |   | 127,892 |   |
|                                                            |   |                              |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                COMPREHENSIVE LOSS, NET OF TAX             |   |                              | (318,879 | )      |                              |   | (148,136 | ) |   |   | (326,378 | ) |   |   | (149,598 | ) |
|                                                            |   |                              |     |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                INCOME                             |   | $                                 | 205,693  |   |                              | $      | 318,276 |   |   | $ | 698,225 |   |   | $ | 700,003 |   |

----

*Index*

**Weststar      Financial Services Corporation & Subsidiary**

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

**For      the Six Months Ended June 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     |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            |      |   |       |   | (149,598 | ) |   |   | (149,598 | ) |
| Cash                paid in lieu of fractional shares |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            | (2,762    | )      |       |   |   |   |   |   | (2,762 | ) |
| Net                Income                             |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            | 849,601   |   |       |   |   |   |   |   | 849,601 |   |
| Balance                June 30, 2006                  |   |                            | 1,681,290 |   |        | $      | 1,681,290 |           |   | $                 | 6,525,307               |   |   | $               | 3,655,961 |   |       | $      | (568,774 | ) |   | $ | 11,293,784 |   |
|                                                  |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            |      |   |       |   |   |   |   |   |   |   |
|                                                  |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            |      |   |       |   |   |   |   |   |   |   |
| 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     |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            |      |   |       |   | (326,378 | ) |   |   | (326,378 | ) |
| Cash                paid in lieu of fractional shares |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            | (1,930    | )      |       |   |   |   |   |   | (1,930 | ) |
| Issuance                of common stock pursuant      |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            |      |   |       |   |   |   |   |   |   |   |
| to                the exercise of stock options       |   |                            | 5,702     |   |        |   | 5,702     |           |   |              | 6,268                   |   |   |            |      |   |       |   |   |   |   |   | 11,970 |   |
| Net                Income                             |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            | 1,024,603 |   |       |   |   |   |   |   | 1,024,603 |   |
| Balance                June 30, 2007                  |   |                            | 2,109,833 |   |        | $      | 2,109,833 |           |   | $                 | 6,112,814               |   |   | $               | 5,891,765 |   |       | $      | (433,294 | ) |   | $ | 13,681,118 |   |
|                                                  |   |                            |      |   |        |   |      |           |   |              |                    |   |   |            |      |   |       |   |   |   |   |   |   |   |

----

*Index*

| **Weststar                Financial Services Corporation &                Subsidiary**                  |   |     |       |   |     |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
| **Consolidated                Statements of Cash Flows (unaudited)**                                        |   |     |       |   |     |   |
| **For                the Six Months Ended June 30,**                                                        |   | **2007** |       |   | **2006** |   |
|                                                                                                        |   |     |       |   |     |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                    |   |     |       |   |     |   |
| Net                Income                                                                                   |   | $        | 1,024,603  |   |     | $      | 849,601 |   |
| Adjustments                to reconcile net income to net cash used by operating                activities: |   |     |       |   |     |   |   |   |
| Depreciation                                                                                                |   |     | 196,657    |   |     |   | 173,469 |   |
| Provision                for loan losses                                                                    |   |     | 87,575     |   |     |   | 152,450 |   |
| Premium                amortization and discount accretion, net                                             |   |     | (10,816    | )      |     |   | 22,081 |   |
| Deferred                income tax provision                                                                |   |     | (40,226    | )      |     |   | (24,055 | ) |
| Net                (income) expenses from foreclosed properties                                             |   |     | 1,000      |   |     |   | (2,010 | ) |
| Losses                on sales of securities                                                                |   |     | -          |   |     |   | 208,124 |   |
| (Gain)                loss on disposal/sale of premises and equipment                                       |   |     | (50        | )      |     |   | 550 |   |
| (Increase)                decrease in accrued interest receivable                                           |   |     | 184,876    |   |     |   | (117,374 | ) |
| (Increase)                decrease in other assets                                                          |   |     | 43,259     |   |     |   | (21,310 | ) |
| Increase                in accrued interest payable                                                         |   |     | 33,049     |   |     |   | 102,420 |   |
| Increase                in other liabilities                                                                |   |     | 7,276      |   |     |   | 32,996 |   |
| Net                cash provided by operating activities                                                    |   |     | 1,527,203  |   |     |   | 1,376,942 |   |
|                                                                                                        |   |     |       |   |     |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                    |   |     |       |   |     |   |   |   |
| Purchases                of securities available for sale                                                   |   |     | (1,471,666 | )      |     |   | (7,565,132 | ) |
| Maturities                of securities available for sale                                                  |   |     | 1,414,988  |   |     |   | 1,145,698 |   |
| Proceeds                from sales of securities                                                            |   |     | -          |   |     |   | 8,044,456 |   |
| Net                increase in loans                                                                        |   |     | (1,352,589 | )      |     |   | (10,370,893 | ) |
| Proceeds                from sales of foreclosed properties                                                 |   |     | 105,000    |   |     |   | 21,760 |   |
| Proceeds                from sales of premises and equipment                                                |   |     | 50         |   |     |   | 50 |   |
| FHLB                stock purchase                                                                          |   |     | (204,300   | )      |     |   | (261,700 | ) |
| FHLB                stock redemption                                                                        |   |     | 198,000    |   |     |   | 256,500 |   |
| Additions                to premises and equipment                                                          |   |     | (114,211   | )      |     |   | (213,384 | ) |
| Net                cash used in investing activities                                                        |   |     | (1,424,728 | )      |     |   | (8,942,645 | ) |
|                                                                                                        |   |     |       |   |     |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                    |   |     |       |   |     |   |   |   |
| Net                increase in demand deposits, NOW Accounts, MMDA and savings                accounts      |   |     | (1,863,996 | )      |     |   | (2,198,559 | ) |
| Net                increase in time deposits                                                                |   |     | 7,908,131  |   |     |   | 8,172,495 |   |
| Cash                paid for fractional shares                                                              |   |     | (1,930     | )      |     |   | (2,762 | ) |
| Issuance                of common stock                                                                     |   |     | 26         |   |     |   | - |   |
| Proceeds                of FHLB advances                                                                    |   |     | 5,200,000  |   |     |   | 11,270,000 |   |
| Repayment                of FHLB advances                                                                   |   |     | (5,200,000 | )      |     |   | (9,500,000 | ) |
| Net                decrease in short-term borrowing                                                         |   |     | (12,788    | )      |     |   | - |   |
| Net                cash provided by financing activities                                                    |   |     | 6,029,443  |   |     |   | 7,741,174 |   |
|                                                                                                        |   |     |       |   |     |   |   |   |
| **NET                INCREASE IN CASH AND CASH EQUIVALENTS**                                                |   |     | 6,131,918  |   |     |   | 175,471 |   |
| **CASH                AND CASH EQUIVALENTS AT BEGINNING OF PERIOD**                                         |   |     | 5,026,627  |   |     |   | 6,860,962 |   |
| **CASH                AND CASH EQUIVALENTS AT END OF PERIOD**                                               |   | $        | 11,158,545 |   |     | $      | 7,036,433 |   |
|                                                                                                        |   |     |       |   |     |   |   |   |

----

*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                area.  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 $39,935,468 and $30,044,210 at June 30, 2007and                December 31, 2006, respectively. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

*Index*

|                                            |   |                          |      |   |                          |   |
|-------------------------------------------------|--------|-------------------------------|-----------|--------|-------------------------------|--------|
|                                            |   | Three                Months   |      |   | Six                Months     |   |
|                                            |   | Ended                June 30, |      |   | Ended                June 30, |   |
|                                            |   | 2007                          |      |   | 2006                          |   |   | 2007 |   |   | 2006 |   |
| Weighted                average number of       |   |                          |      |   |                          |   |   |   |   |   |   |   |
| common                shares used in            |   |                          |      |   |                          |   |   |   |   |   |   |   |
| computing                basic net income       |   |                          |      |   |                          |   |   |   |   |   |   |   |
| per                share                        |   |                          | 2,104,131 |   |                          |   | 2,101,706 |   |   |   | 2,107,427 |   |   |   | 2,101,706 |   |
| Effect                of dilutive stock options |   |                          | 178,511   |   |                          |   | 172,921 |   |   |   | 180,659 |   |   |   | 166,042 |   |
| Weighted                average number of       |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| common                shares and dilutive       |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| potential                common shares          |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| used                in computing diluted net    |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| income                per common share          |   |                          | 2,282,642 |   |                          |   | 2,274,627 |   |   |   | 2,288,086 |   |   |   | 2,267,748 |   |

| 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. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

| **Item                2.** | **Management’s                Discussion and Analysis****Financial                  Condition and Results of                  Operations** |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

**Weststar      Financial Services Corporation & Subsidiaries**

**Management’s      Discussion and Analysis**

----

*Index*

----

*Index*

----

*Index*

----

*Index*

----

*Index*

**ASSET/LIABILITY      MANAGEMENT**

**Interest      Rate Gap Analysis. **

----

*Index*

----

*Index*

|                                              |   | TERMS                TO REPRICING AT JUNE 30, 2007 |        |
|---------------------------------------------------|--------|----------------------------------------------------|-------------|
|                                              |   | 1-90                Days                           |        |   | 91-180                Days |   |   | 181-365                Days |   |   | Total                One |   |   | Non- |   |   | Total |   |
|                                              |   |                                               |        |   |   |   |   |   |   |   | Year |   |   | Sensitive |   |   |   |   |
| Interest-earning                assets:           |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing deposits          |   | $                                                  | 213,162     |   |   | $ | - |   |   | $ | - |   |   | $ | 213,162 |   |   | $ | - |   |   | $ | 213,162 |   |
| Federal                funds sold                 |   |                                               | 5,819,000   |   |   |   |   |   |   |   |   |   |   |   | 5,819,000 |   |   |   |   |   |   |   | 5,819,000 |   |
| Investment                securities              |   |                                               | 1,890,091   |   |   |   | 1,355,252 |   |   |   | 1,735,569 |   |   |   | 4,980,912 |   |   |   | 21,501,581 |   |   |   | 26,482,493 |   |
| Federal                Home Loan Bank             |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock                                             |   |                                               | 463,300     |   |   |   | - |   |   |   | - |   |   |   | 463,300 |   |   |   | - |   |   |   | 463,300 |   |
| Loans                (1)                          |   |                                               | 97,312,253  |   |   |   | 1,447,472 |   |   |   | 2,000,247 |   |   |   | 100,759,972 |   |   |   | 22,112,682 |   |   |   | 122,872,654 |   |
| Total                Interest-earning assets      |   |                                               | 105,697,806 |   |   |   | 2,802,724 |   |   |   | 3,735,816 |   |   |   | 112,236,346 |   |   |   | 43,614,263 |   |   |   | 155,850,609 |   |
|                                              |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:      |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Time                deposits                      |   |                                               | 24,640,623  |   |   |   | 23,023,929 |   |   |   | 15,427,111 |   |   |   | 63,091,663 |   |   |   | 3,700,832 |   |   |   | 66,792,495 |   |
| All                other deposits                 |   |                                               | 45,424,466  |   |   |   | - |   |   |   | - |   |   |   | 45,424,466 |   |   |   | - |   |   |   | 45,424,466 |   |
| Short-term                debt                    |   |                                               | 293,212     |   |   |   | - |   |   |   | - |   |   |   | 293,212 |   |   |   | - |   |   |   | 293,212 |   |
| Long-term                debt                     |   |                                               | 4,124,000   |   |   |   | - |   |   |   | - |   |   |   | 4,124,000 |   |   |   | 4,000,000 |   |   |   | 8,124,000 |   |
| Total                interest-bearing liabilities |   |                                               | 74,482,301  |   |   |   | 23,023,929 |   |   |   | 15,427,111 |   |   |   | 112,933,341 |   |   |   | 7,700,832 |   |   |   | 120,634,173 |   |
|                                              |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                sensitivity gap           |   | $                                                  | 31,215,505  |   |   | $ | (20,221,205 | ) |   | $ | (11,691,295 | ) |   | $ | (696,995 | ) |   | $ | 35,913,431 |   |   |   |   |   |
| Cumulative                interest sensitivity    |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gap                                               |   | $                                                  | 31,215,505  |   |   | $ | 10,994,300 |   |   | $ | (696,995 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                ratio of interest-      |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning                assets as a percent        |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of                interest sensitive liabilities  |   |                                               | 141.9       | % |   |   | 12.2 | % |   |   | 24.2 | % |   |   | 99.4 | % |   |   |   |   |   |   |   |   |
|                                              |   |                                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

**ASSET      QUALITY**

----

*Index*

**Summary      of Allowance for Loan Losses**

|                                                  |   | For                the six months |      |   | For                the year ended |   |
|-------------------------------------------------------|--------|-----------------------------------|-----------|--------|-----------------------------------|--------|
|                                                  |   | Ended                June 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 |   |                              | (21,490   | )      |                              |   | (85,665 | ) |   |   | (163,191 | ) |
| Real                Estate:                           |   |                              |      |   |                              |   |   |   |   |   |   |   |
| Construction                                          |   |                              | -         |   |                              |   | - |   |   |   | - |   |
| Mortgage                                              |   |                              | -         |   |                              |   | (14,161 | ) |   |   | (14,160 | ) |
| Consumer                                              |   |                              | (37,528   | )      |                              |   | (17,260 | ) |   |   | (41,104 | ) |
| Total                charge-offs                      |   |                              | (59,018   | )      |                              |   | (117,086 | ) |   |   | (218,455 | ) |

----

*Index*

| Recoveries                                             |   |   |      |   |   |   |      |   |   |
|--------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Commercial,                financial, and agricultural |   |   | 3,538     |   |   |   | 9,758     |   |   |   | 22,538 |   |
| Real                Estate:                            |   |   |      |   |   |   |      |   |   |   |   |   |
| Construction                                           |   |   | -         |   |   |   | -         |   |   |   | - |   |
| Mortgage                                               |   |   | -         |   |   |   | 6,483     |   |   |   | - |   |
| Consumer                                               |   |   | 13,323    |   |   |   | 18,131    |   |   |   | 34,975 |   |
| Total                Recoveries                        |   |   | 16,861    |   |   |   | 34,372    |   |   |   | 57,513 |   |
| Net                (charge-offs) recoveries            |   |   | (42,157   | )      |   |   | (82,714   | )      |   |   | (160,942 | ) |
| Provision                charged to operations         |   |   | 87,575    |   |   |   | 152,450   |   |   |   | 284,645 |   |
| Balance,                end of period                  |   | $      | 1,929,498 |   |   | $      | 1,830,113 |   |   | $ | 1,884,080 |   |
|                                                   |   |   |      |   |   |   |      |   |   |   |   |   |
| Percentage                of net charge-offs to        |   |   |      |   |   |   |      |   |   |   |   |   |
| Average                loans                           |   |   | .07       | %      |   |   | .16       | %      |   |   | .14 | % |
| Percentage                of allowance to              |   |   |      |   |   |   |      |   |   |   |   |   |
| Period-end                loans                        |   |   | 1.57      | %      |   |   | 1.65      | %      |   |   | 1.54 | % |

**CAPITAL      RESOURCES**

----

*Index*

**REGULATORY      CAPITAL**

|                                              |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       | **To                Be Well** |   |
|---------------------------------------------------|------------|---------------------------------------|--------|-----------|--------------|--------|------------|--------------------------------------|--------|-----------|--------------------------------------|--------|------------|-------------------------------|--------|
|                                              |       |                                  |   |      |         |   |       | **For                Capital**       |   |      | **Capitalized                Under** |   |
|                                              |       | **Actual**                            |   |      | **Adequacy** |   |       | **Prompt                Corrective** |   |
|                                              |       |                                  |   |      |         |   |       | **Purposes**                         |   |      | **Action                Provisions** |   |
|                                              |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |
|                                         | **Amount** |                                  |   | **Ratio** |         |   | **Amount** |                                 |   | **Ratio** |                                 |   | **Amount** |                          |   | **Ratio** |   |
|                                              |       | (Dollars                in Thousands) |   |
| As                of June 30, 2007                |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |
| Total                Capital (to Risk Weighted    |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |
| Assets)                                           |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |
| Consolidated                                      |       | $                                     | 19,724 |      |         |   | 15.34      | %                                    |   | $         | 10,285                               |   |       |                          | 8.00   | % |   | $ | 12,857 |   |   |   | 10.00 | % |
| Bank                                              |       | $                                     | 18,707 |      |         |   | 14.58      | %                                    |   | $         | 10,264                               |   |       |                          | 8.00   | % |   | $ | 12,830 |   |   |   | 10.00 | % |
|                                              |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |   |   |   |   |   |   |
| Tier                1 Capital (to Risk Weighted   |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |   |   |   |   |   |   |
| Assets)                                           |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                      |       | $                                     | 18,113 |      |         |   | 14.09      | %                                    |   | $         | 5,143                                |   |       |                          | 4.00   | % |   | $ | 7,714 |   |   |   | 6.00 | % |
| Bank                                              |       | $                                     | 17,099 |      |         |   | 13.33      | %                                    |   | $         | 5,132                                |   |       |                          | 4.00   | % |   | $ | 7,698 |   |   |   | 6.00 | % |
|                                              |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |   |   |   |   |   |   |
| Tier                1 Capital (to Average Assets) |       |                                  |   |      |         |   |       |                                 |   |      |                                 |   |       |                          |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                      |       | $                                     | 18,113 |      |         |   | 11.04      | %                                    |   | $         | 6,565                                |   |       |                          | 4.00   | % |   | $ | 8,207 |   |   |   | 5.00 | % |
| Bank                                              |       | $                                     | 17,099 |      |         |   | 10.44      | %                                    |   | $         | 6,554                                |   |       |                          | 4.00   | % |   | $ | 8,193 |   |   |   | 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** |
|----------------------------|---------------------------------------------------------------------------------------|

** **

| **Proposal                #1**     | **For**   | **Withheld** |
|------------------------------------|-----------|--------------|
| W.                Edward Anderson  | 1,498,617 | 1,955        |
| G.                Gordon Greenwood | 1,391,903 | 108,669      |
| Darryl                J. Hart      | 1,495,169 | 5,403        |

| **Proposal                #2**                     | **For**   | **Against** | **Abstain** |
|----------------------------------------------------|-----------|-------------|-------------|
| 2007                Incentive Stock Option Plan    | 882,934   | 139,635     | 478,003     |
|                                               |      |        |        |
| **Proposal                #3**                     | **For**   | **Against** | **Abstain** |
| 2007                Nonstatutory Stock Option Plan | 871,456   | 145,122     | 483,994     |
|                                               |      |        |        |
| **Proposal                #4**                     | **For**   | **Against** | **Abstain** |
| Dixon                Hughes PLLC                   | 1,498,802 | 458         | 1,312       |

**Item      5. Other Information**

|   | (a) | None. |
|--------|-----|-------|

|   | (b) | None. |
|--------|-----|-------|

**Item      6.                     Exhibits**

|   | (a) | Exhibits. |
|--------|-----|-----------|

|   |                          |                                                                                                                                                                                                                                                                        |
|--------|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.1                  – | Weststar                  Financial Services Corporation 2007 Incentive Stock Option                  Plan                                                                                                                                                                  |
|   |                          |                                                                                                                                                                                                                                                                        |
|   | 10.2                  – | Weststar                  Financial Services Corporation 2007 Nonstatutory Stock Option                  Plan                                                                                                                                                               |
|   |                          |                                                                                                                                                                                                                                                                        |
|   | 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:                August 9, 2007 | By:                                                        | /s/G.                Gordon Greenwood |
|                                |                                                       |   |
|                                |                                                       | G.                Gordon Greenwood |
|                                |                                                       | President                and Chief Executive Officer |
|                                |                                                       |   |
|                                |                                                       |   |
|                                |                                                       |   |
| Date:                August 9, 2007 | By:                                                        | /s/Randall                C. Hall |
|                                |                                                       |   |
|                                |                                                       | Randall                C. Hall |
|                                |                                                       | Executive                Vice President and Chief Financial |
|                                |                                                       | and                Principal Accounting Officer |
|                                |                                                       |   |