SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

                        ANNUAL REPORT UNDER SECTION 13 OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                     FOR FISCAL YEAR ENDED DECEMBER 31, 2000

                        Commission File Number: 000-30515

                     WESTSTAR FINANCIAL SERVICES CORPORATION
             (Exact Name of Registrant as specified in its charter)

                                 NORTH CAROLINA
                            (State of Incorporation)

                                   56-2181423
                      (I.R.S. Employer Identification No.)

                                79 Woodfin Place
                         Asheville, North Carolina 28801
                          (Address of Principal Office)

                                 (828) 252-1735
              (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(g) of the Act:

                          COMMON STOCK, $1.00 PAR VALUE

Check whether the Registrant  (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  Registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. YES  X  NO

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B not contained in this form, and no disclosure  will be contained,
to the best of the  Registrant's  knowledge,  in definitive proxy or information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB.  X

The Registrant's revenues for the year ended December 31, 2000 were $5,806,169.

The  aggregate  market value of the voting stock held by  non-affiliates  of the
Registrant at December 31, 2000 was approximately $4,282,897.

The number of shares of the  Registrant's  Common Stock  outstanding on December
31, 2000 was 633,298.

                      Documents Incorporated by Reference:

         1. Proxy Statement for the 2001 Annual Meeting of  Shareholders  (Parts
II and III).

Transitional Small Business Disclosure Format      Yes ____        No  X


<PAGE>


                        FORM 10-KSB CROSS-REFERENCE INDEX

                                                      Form
PART I                                               10-KSB     Proxy Statement

Item 1 - Business                                      3
Item 2 - Properties                                    7
Item 3 - Legal Proceedings                             7
Item 4 -  Submission of Matters to a Vote
           of Security Holders                         7

PART II

Item 5 - Market Price and Dividends on the
           Registrant's Common Equity and
           Other Shareholder Matters                   8
Item 6 - Management's Discussion & Analysis                           19
Item 7 - Financial Statements                                         F-1
Item 8 - Changes in and Disagreements with
           Accountants on Financial Disclosure         9

PART III

Item 9 - Directors, Executive Officers, Promoters
           and Control Persons                                        4&7
Item 10 - Executive Compensation                                      7
Item 11 - Security Ownership of Certain Beneficial
           Owners and Management                                      3
Item 12 - Certain relationships and Related
            Transactions                                              9
Item 13 - Exhibits and Reports on Form 8-K             9


<PAGE>


                                     PART I

ITEM 1:  BUSINESS

General

Weststar Financial Services Corporation (the "Registrant" or the "Company") is a
bank holding  company formed in April 2000 to own all of the common stock of The
Bank of Asheville (the "Bank"), a North  Carolina-chartered bank that opened for
business as a community bank in Asheville,  Buncombe  County,  North Carolina in
December 1997. At this time, Weststar does not engage in any business activities
on its own. It only owns The Bank of Asheville,  which engages in the commercial
banking business.

Primary Market Area

The  Registrant's  market area consists of  Asheville,  Buncombe  County,  North
Carolina and surrounding areas. Buncombe County is part of the Asheville Ranally
Metropolitian  area.  Asheville is the county seat and the industrial  center of
Buncombe  County  with  a  population  of  approximately  68,000.  In  addition,
Asheville is the commercial hub for several other  prosperous  towns in Buncombe
County,  including Arden,  Biltmore Forest, Black Mountain,  Montreat,  Skyland,
Weaverville and Woodfin. The total population of Buncombe County is 190,200.

Competition

Commercial banking in North Carolina is extremely  competitive in large part due
to statewide branching. Registrant competes in its market areas with some of the
largest banking  organizations  in the state and the country and other financial
institutions,   such  as  federally   and   state-chartered   savings  and  loan
institutions and credit unions, as well as consumer finance companies,  mortgage
companies and other lenders engaged in the business of extending credit. Many of
Registrant's  competitors  have broader  geographic  markets and higher  lending
limits  than  Registrant  and are also able to provide  more  services  and make
greater use of media  advertising.  In Buncombe  County  there are  currently 45
offices of 7 different  commercial  banks  (including the largest banks in North
Carolina) and 28 offices of 16 savings  institutions and credit unions,  as well
as offices of various other entities  engaged in the extension of credit.  As of
June  30,  2000,  Registrant  accounted  for  2.08% of  total  deposits  held by
commercial banks and savings banks in Buncombe County.

The enactment of  legislation  authorizing  interstate  banking has caused great
increases  in  the  size  and  financial   resources  of  some  of  Registrant's
competitors.  In  addition,  as a result  of  interstate  banking,  out-of-state
commercial banks have acquired North Carolina banks and which has heightened the
competition among banks in North Carolina.

Despite the  competition  in its market area,  Registrant  believes  that it has
certain  competitive  advantages  that  distinguish  it  from  its  competition.
Registrant believes that its primary competitive advantages are its strong local
identity  and  affiliation  with the  community  and its  emphasis on  providing
specialized services to small and medium-sized business enterprises,  as well as
professional  and  upper-income  individuals.  Registrant  is locally  owned and
managed, making credit and other decisions that have a direct bearing on service
faster  and more  efficient  to  obtain.  Registrant  offers  customers  modern,
high-tech  banking without forsaking  community values such as prompt,  personal
service and  friendliness.  Registrant  offers many  personalized  services  and
attracts  customers by being  responsive  and sensitive to their  individualized
needs.


<PAGE>


Registrant also relies on goodwill and referrals from shareholders and satisfied
customers,  as well as  traditional  newspaper  and radio  media to attract  new
customers. To enhance a positive image in the community, Registrant supports and
participates  in local events and its officers and directors  serve on boards of
local civic and charitable organizations.

Employees

The Bank currently employs 30 full-time  equivalent  employees.  Registrant does
not have any officers or employees who are not also officers or employees of the
Bank. None of the Registrant's  employees are covered by a collective bargaining
agreement. The Registrant believes its relations with its employees to be good.

Regulation

Registrant is extensively regulated under both federal and state law. Generally,
these laws and regulations are intended to protect depositors and borrowers, not
shareholders.  To the extent that the following  information describes statutory
and regulatory  provisions,  it is qualified in its entirety by reference to the
particular statutory and regulatory provisions.  Any change in applicable law or
regulation may have a material effect on the business of the Registrant.

                          The Bank Holding Company Act

The Registrant is a bank holding  company within the meaning of the Bank Holding
Company  Act of 1956,  as  amended  (the "Bank  Holding  Company  Act"),  and is
required to register as such with the Board of Governors of the Federal  Reserve
System  (the  "Federal  Reserve  Board" or  "FRB").  A bank  holding  company is
required to file with the FRB annual reports and other information regarding its
business  operations  and  those  of its  subsidiaries.  It is also  subject  to
examination  by the Federal  Reserve  Board and is  required  to obtain  Federal
Reserve Board approval prior to acquiring,  directly or indirectly, more than 5%
of the voting  stock of such  bank,  unless it  already  owns a majority  of the
voting stock of such bank. Furthermore, a bank holding company must engage, with
limited exceptions,  in the business of banking or managing or controlling banks
or furnishing  services to or performing  services for its subsidiary banks. One
of the  exceptions to this  prohibition  is the ownership of shares of a company
the  activities  of which the FRB has  determined  to be so  closely  related to
banking or managing or controlling banks as to be a proper incident thereto.

STATE LAW. Registrant is subject to extensive  supervision and regulation by the
North Carolina  Commissioner  of Banks (the  "Commissioner").  The  Commissioner
oversees state laws that set specific requirements for bank capital and regulate
deposits in, and loans and investments by, banks, including the amounts,  types,
and in some cases,  rates.  The  Commissioner  supervises and performs  periodic
examinations of North  Carolina-chartered  banks to assure compliance with state
banking  statutes and  regulations,  and  Registrant is required to make regular
reports  to  the  Commissioner  describing  in  detail  its  resources,  assets,
liabilities  and financial  condition of  Registrant.  Among other  things,  the
Commissioner  regulates mergers and consolidations of state-chartered banks, the
payment of dividends, loans to officers and directors, record keeping, types and
amounts of loans and investments, and the establishment of branches.

DEPOSIT INSURANCE.  As a member institution of the FDIC,  Registrant's  deposits
are insured up to a maximum of $100,000 per depositor through the Bank Insurance
Fund ("BIF"),  administered by the FDIC, and each member institution is required
to pay semi-annual  deposit insurance  premium  assessments to the FDIC. The BIF
assessment  rates  have a  range  of 0  cents  to

<PAGE>

27 cents for every  $100 in  assessable  deposits.  Banks  with no  premium  are
subject to an annual statutory minimum assessment.

CAPITAL  REQUIREMENTS.  The federal  banking  regulators  have  adopted  certain
risk-based  capital  guidelines  to  assist  in the  assessment  of the  capital
adequacy of a banking  organization's  operations for both transactions reported
on the balance sheet as assets and transactions,  such as letters of credit, and
recourse  arrangements,  which are recorded as off balance  sheet  items.  Under
these guidelines, nominal dollar amounts of assets and credit equivalent amounts
of off balance  sheet items are  multiplied  by one of several  risk  adjustment
percentages which range from 0% for assets with low credit risk, such as certain
U.S. Treasury  securities,  to 100% for assets with relatively high credit risk,
such as business loans.

A banking organization's  risk-based capital ratios are obtained by dividing its
qualifying  capital by its total risk adjusted  assets.  The regulators  measure
risk-adjusted  assets, which include off balance sheet items, against both total
qualifying  capital  (the sum of Tier 1 capital  and  limited  amounts of Tier 2
capital) and Tier 1 capital. "Tier 1," or core capital,  includes common equity,
qualifying  noncumulative  perpetual  preferred stock and minority  interests in
equity   accounts  of  consolidated   subsidiaries,   less  goodwill  and  other
intangibles,  subject to certain exceptions. "Tier 2," or supplementary capital,
includes  among other  things,  limited-life  preferred  stock,  hybrid  capital
instruments, mandatory convertible securities, qualifying subordinated debt, and
the allowance for loan and lease losses, subject to certain limitations and less
required  deductions.  The inclusion of elements of Tier 2 capital is subject to
certain other  requirements  and  limitations of the federal  banking  agencies.
Banks and bank holding  companies subject to the risk-based  capital  guidelines
are required to maintain a ratio of Tier 1 capital to risk-weighted assets of at
least 4% and a ratio of total  capital to  risk-weighted  assets of at least 8%.
The appropriate  regulatory  authority may set higher capital  requirements when
particular  circumstances  warrant.  As of December  31,  2000,  Registrant  was
classified as  "well-capitalized"  with Tier 1 and Total Risk - Based Capital of
10.76% and 12.01% respectively.

The federal banking agencies have adopted regulations  specifying that they will
include, in their evaluations of a bank's capital adequacy, an assessment of the
bank's  interest  rate risk ("IRR")  exposure.  The  standards for measuring the
adequacy and effectiveness of a banking  organization's IRR management include a
measurement  of  board  of  director  and  senior  management  oversight,  and a
determination of whether a banking  organization's  procedures for comprehensive
risk management are appropriate for the  circumstances  of the specific  banking
organization.

Failure  to  meet  applicable   capital   guidelines  could  subject  a  banking
organization to a variety of enforcement actions,  including  limitations on its
ability to pay dividends, the issuance by the applicable regulatory authority of
a  capital  directive  to  increase  capital  and,  in the  case  of  depository
institutions,  the termination of deposit  insurance by the FDIC, as well as the
measures described under the "Federal Deposit Insurance Corporation  Improvement
Act of 1991" below, as applicable to undercapitalized institutions. In addition,
future changes in  regulations  or practices  could further reduce the amount of
capital recognized for purposes of capital adequacy.  Such a change could affect
the ability of Registrant to grow and could  restrict the amount of profits,  if
any, available for the payment of dividends to the shareholders.

FEDERAL  DEPOSIT  INSURANCE  CORPORATION  IMPROVEMENT  ACT OF 1991. In December,
1991, Congress enacted the Federal Deposit Insurance Corporation Improvement Act
of 1991 ("FDICIA"),  which substantially revised the bank regulatory and funding
provisions of the FDIA and made  significant  revisions to several other federal
banking statutes. FDICIA provides for, among other things:

<PAGE>

         o        publicly  available annual financial  condition and management
                  reports for certain financial  institutions,  including audits
                  by independent accountants,

         o        the establishment of uniform  accounting  standards by federal
                  banking agencies,

         o        the  establishment of a "prompt  corrective  action" system of
                  regulatory    supervision   and    intervention,    based   on
                  capitalization  levels, with greater scrutiny and restrictions
                  placed  on  depository   institutions  with  lower  levels  of
                  capital,

         o        additional  grounds for the  appointment  of a conservator  or
                  receiver, and

         o        restrictions or prohibitions on accepting  brokered  deposits,
                  except for  institutions  which  significantly  exceed minimum
                  capital requirements.

FDICIA also provides for increased  funding of the FDIC insurance  funds and the
implementation of risk-based premiums.

A central feature of FDICIA is the requirement that the federal banking agencies
take "prompt corrective action" with respect to depository  institutions that do
not meet  minimum  capital  requirements.  Pursuant to FDICIA,  the federal bank
regulatory  authorities  have adopted  regulations  setting  forth a five-tiered
system for measuring the capital  adequacy of the depository  institutions  that
they supervise.  Under these regulations, a depository institution is classified
in one of the following  capital  categories:  "well  capitalized,"  "adequately
capitalized,"    "undercapitalized,"    "significantly   undercapitalized"   and
"critically undercapitalized." An institution may be deemed by the regulators to
be in a  capitalization  category  that is lower than is indicated by its actual
capital  position  if,  among  other  things,   it  receives  an  unsatisfactory
examination  rating  with  respect to asset  quality,  management,  earnings  or
liquidity.

FDICIA provides the federal banking agencies with significantly  expanded powers
to take  enforcement  action  against  institutions  which  fail to comply  with
capital or other  standards.  Such action may include the termination of deposit
insurance by the FDIC or the  appointment of a receiver or  conservator  for the
institution.  FDICIA  also  limits  the  circumstances  under  which the FDIC is
permitted  to provide  financial  assistance  to an insured  institution  before
appointment of a conservator or receiver.

MISCELLANEOUS. The dividends that may be paid by Registrant are subject to legal
limitations. In accordance with North Carolina banking law, dividends may not be
paid unless Registrant's capital surplus is at least 50% of its paid-in capital.
Further,  without the approval of the North Carolina  Commissioner  of Banks, no
bank  that  has not been in  existence  for at least  three  years  may pay cash
dividends.

The earnings of Registrant will be affected significantly by the policies of the
Federal  Reserve Board,  which is  responsible  for regulating the United States
money supply in order to mitigate recessionary and inflationary pressures. Among
the techniques used to implement these  objectives are open market  transactions
in United  States  government  securities,  changes in the rate paid by banks on
bank  borrowings,  and changes in reserve  requirements  against bank  deposits.
These  techniques are used in varying  combinations to influence  overall growth
and  distribution of bank loans,  investments,  and deposits,  and their use may
also affect interest rates charged on loans or paid for deposits.


<PAGE>


The monetary policies of the Federal Reserve Board have had a significant effect
on the  operating  results of  commercial  banks in the past and are expected to
continue to do so in the future. In view of changing  conditions in the national
economy  and money  markets,  as well as the effect of actions by  monetary  and
fiscal  authorities,  no prediction can be made as to possible future changes in
interest  rates,  deposit  levels,  loan demand or the  business and earnings of
Registrant.

Recent Legislative Developments

Effective March 11, 2000, the  Gramm-Leach-Bliley  Act of 1999, which was signed
into law on November 12, 1999, will allow a bank holding company to qualify as a
"financial  holding  company"  and,  as a result,  be  permitted  to engage in a
broader  range of  activities  that are  "financial in nature" and in activities
that are  determined to be incidental or  complementary  to activities  that are
financial in nature. The  Gramm-Leach-Bliley Act amends the BHC Act to include a
list  of  activities  that  are  financial  in  nature,  and the  list  includes
activities such as  underwriting,  dealing in and making a market in securities,
insurance  underwriting and agency activities and merchant banking.  The Federal
Reserve Board is authorized to determine other  activities that are financial in
nature or incidental or complementary to such activities. The Gramm-Leach-Bliley
Act also authorizes banks to engage through financial subsidiaries in certain of
the activities permitted for financial holding companies.

Registrant  cannot predict what legislation might be enacted or what regulations
might be adopted,  or if enacted or adopted,  the effect thereof on Registrant's
operations.

ITEM 2:  PROPERTIES

The following  table sets forth the location of the  Registrant's  offices as of
December 31, 2000.

                                               APPROX.
                                 YEAR          SQUARE
OFFICE LOCATION                 OPENED         FOOTAGE         OWN/LEASE
---------------                 ------         -------         ---------
Main Office
79 Woodfin Place                1997           10,000          Own
Asheville, NC

Candler Office
6 Dogwood Road                  1999            1,900          Own building,
Candler, NC                                                    lease land

Leicester Highway Office        2000              800          Lease
557 New Leicester Highway
Asheville, NC

ITEM 3:  LEGAL PROCEEDINGS

There were no known current or pending proceedings as of December 31, 2000.

ITEM 4:  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.

<PAGE>

PART II

ITEM 5:  MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND
         OTHER SHAREHOLDER MATTERS

Market Summary

Weststar Financial Services  Corporation stock is traded on the Over-The-Counter
Bulletin Board under the symbol "WFSC." There were 633,298 shares outstanding at
December 31, 2000 owned by approximately 800 shareholders.

During 2000,  125,200  shares of the  Company's  common  stock were traded.  The
closing price of the stock was $7.625.

The following table represents stock prices during the trading periods.

2000     1st       2nd        3rd        4th
         Qtr.      Qtr.       Qtr.       Qtr.
High     $  9.50   $  9.375   $  8.875   $  9.00
Low      $  6.375  $  5.625   $  5.00    $  5.125
Close    $  8.375  $  7.625   $  5.625   $  7.625

1999     1st       2nd        3rd        4th
         Qtr.      Qtr.       Qtr.       Qtr.
High     $ 11.00   $ 10.50    $ 11.00    $ 10.50
Low      $  9.50   $  9.50    $  9.00    $  6.375
Close    $  9.50   $ 10.50    $ 10.00    $  7.375

No cash  dividends were paid in 2000 or 1999.  Registrant  was  prohibited  from
paying cash dividends during the first three years of operation.

Stock Transfer Agent and Registrar

Registrar and Transfer Company
10 Commerce Drive
Cranford, NJ 07016
908.497.2312 or 800.368.5948

Shareholder Information

For  information,   contact  Randall  C.  Hall,  Executive  Vice  President  and
Secretary,  Registrant,  79 Woodfin Place  Asheville,  North Carolina,  28801 or
rhall@bankofasheville.com.

Annual Shareholders Meeting

The Annual Meeting of the  shareholders of Registrant will be held at 3:00 p.m.,
Tuesday,  April 17, 2001, at the Renaissance  Asheville  Hotel, One Thomas Wolfe
Plaza, Asheville, North Carolina.

<PAGE>

Independent Auditors

Deloitte & Touche LLP, 310 First Union Financial Center, P.O. Box 9197, Hickory,
North Carolina 28603.

ITEM 6:  MANAGEMENT'S DISCUSSION AND ANALYSIS

See Proxy Statement pages 19 - 40

ITEM 7:  FINANCIAL STATEMENTS

See Proxy Statement pages F1 - F16.

ITEM 8:  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

There have been no changes in or disagreements with accountants.

PART III

ITEM 9:  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

See Proxy Statement pages 4 and 7.

ITEM 10:  EXECUTIVE COMPENSATION

See Proxy Statement pages 7 - 8.

ITEM 11:  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

See Proxy Statement page 3.

ITEM 12:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

See Proxy Statement pages 9.

ITEM 13:  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits
3(i)     Articles of Incorporation of the Registrant*
3(ii)    Bylaws of the Registrant*
10(i)    Employment Agreement between G. Gordon Greenwood dated
         February 9, 2000*
10(ii)   Employment Agreement between the Bank and Randall C. Hall, dated
         March 20, 1998*
10(iii)  401(k) Savings Plan of the Bank*
99       2001 Proxy Statement**

*  Incorporate  by  reference  to  the   Registration   Statement  on  Form  S-4
(Registration  No.  333-30200  filed  February 11, 2000 with the  Securities and
Exchange Commission.)

** As filed with the SEC pursuant to Rule 14a-6(b).

<PAGE>

                                   SIGNATURES

In  accordance  with  Section 13 or 15(d) of the Exchange  Act,  the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                    WESTSTAR FINANCIAL SERVICES CORPORATION
                                    ---------------------------------------
                                                (Registrant)


                                    By:   /s/ Randall C. Hall
                                        -------------------------------------
                                        Randall C. Hall
                                        Executive Vice President
                                        Chief Financial Officer and Principal
                                        Accounting Officer

                                    Date:  March 22, 2001


<PAGE>

In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the  Registrant and in the capacities and on the
dates indicated.


/s/ W. Edward Anderson                                   March 22, 2001
-----------------------
W. Edward Anderson
Director

/s/ Max O. Cogburn, Sr.                                  March 22, 2001
------------------------
Max O. Cogburn, Sr.
Director

/s/ M. David Cogburn, M.D.                               March 22, 2001
---------------------------
M. David Cogburn, M.D.
Director

/s/ G. Gordon Greenwood                                  March 22, 2001
-----------------------------------
G. Gordon Greenwood
President & Chief Executive Officer

/s/ Darryl J. Hart                                       March 22, 2001
-------------------
Darryl J. Hart
Director

/s/ Carol L. King                                        March 22, 2001
------------------
Carol L. King
Director

/s/ Stephen L. Pignatiello                               March 22, 2001
---------------------------
Stephen L. Pignatiello
Director

/s/ Kent W. Salisbury, M.D.                              March 22, 2001
----------------------------
Kent W. Salisbury, M.D.
Director

/s/ Laura A. Webb                                        March 22, 2001
------------------
Laura A. Webb
Director

/s/ David N. Wilcox                                      March 22, 2001
--------------------
David N. Wilcox
Director

<PAGE>

                                  EXHIBIT INDEX
                                  -------------

Exhibit
Number            Exhibit                                          Page Number
-------           -------                                          -----------

 3(i)             Articles of Incorporation                             *

 3(ii)            Bylaws                                                *

 10(i)            Employment Agreement of G. Gordon Greenwood           *

 10(ii)           Employment Agreement of Howard B. Montgomery          *

 10(iii)          Employment Agreement of Randall C. Hall               *

 10(iv)           401(k) Savings Plan                                   *

 99               2001 Proxy Statement                                  **


* Incorporated by reference.
** As filed with the SEC pursuant to Rule 14a-6(b).