Weststar Financial Services (WFSC) 8-K Reports Record Growth and Solid First Quarter Earnings

Exhibit 99.1

FOR RELEASE: April 22, 2009

WESTSTAR FINANCIAL SERVICES CORPORATION

REPORTS RECORD GROWTH AND SOLID FIRST QUARTER EARNINGS

ASHEVILLE, NORTH CAROLINA - Weststar Financial Services Corporation (OTC BB: “WFSC”) reported record consolidated assets of $214.2 million on March 31, 2009 – an 18% increase over March 31, 2008.  Total loans on March 31, 2009 were $175.0 million – an increase of 28% from the level reported a year earlier.  Deposits reflected 20% growth to $186.5 million at March 31, 2009 compared to the prior year, and shareholders’ equity increased 8% from March 31, 2008 to $17.0 million at March 31, 2009.

The Company once again continued its trend of positive earnings and reported $224 thousand in net income for the first quarter of 2009.  The Company has not accepted TARP or any other government subsidized capital infusions and continues to maintain a strong capital position with a Tier 1 leverage ratio of 10.05%, which is well above the regulatory guidelines of 5% for well-capitalized institutions.

“Throughout this economic downturn, we have continued to make loans to assist our commercial and retail customers with the same sound and cautious policies that have served us well for over a decade, and have continued to earn us a 5-Star Rating from BauerFinancial, Inc.,” stated G. Gordon Greenwood, President & Chief Executive Officer.

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

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

* * * * *

For Further Information, please contact: Randall C. Hall

Executive Vice President and Secretary

Chief Financial Officer

Voice (828) 232-2904; Fax (828) 350-3904

e-mail rhall@bankofasheville.com

Weststar Financial Services Corporation & Subsidiary

Selected Financial Data

	Three Months Ended
	March 31,
	2009			2008			% change
Consolidated earning summary:
Interest income	$	3,063,662		$	3,080,413			-0.5	%
Interest expense		1,193,073			1,347,132			-11.4	%
Net interest income		1,870,589			1,733,281			7.9	%
Provision for loan losses		254,580			37,445			579.9	%
Net interest income after
provision for loan losses		1,616,009			1,695,836			-4.7	%
Other income		408,207			375,034			8.9	%
Other expenses		1,695,888			1,469,592			15.4	%
Income before taxes		328,328			601,278			-45.4	%
Income taxes		104,385			213,141			-51.0	%
Net income	$	223,943		$	388,137			-42.3	%
Earnings per share - Basic	$	0.10		$	0.18			-44.4	%
Earnings per share - Diluted		0.10			0.17			-41.2	%
Average Shares - Basic		2,136,837			2,118,956			0.8	%
Average Shares - Diluted		2,251,225			2,279,551			-1.2	%
Consolidated balance sheet data:
Total Assets	$	214,202,340		$	180,968,119			18.4	%
Total Deposits		186,453,881			155,155,491			20.2	%
Loans (gross)		175,006,653			137,192,577			27.6	%
Investments		23,518,059			26,494,464			-11.2	%
Shareholders' Equity		16,971,583			15,793,519			7.5	%
Consolidated average balance sheet data:
Total Assets	$	207,155,031		$	175,340,851			18.1	%
Total Deposits		177,720,929			149,617,026			18.8	%
Loans (gross)		173,165,289			137,076,409			26.3	%
Investments		23,631,269			26,369,785			-10.4	%
Shareholders' Equity		16,856,942			15,476,307			8.9	%
Consolidated performance ratios:
Return on average assets*		0.44	%		0.89	%
Return on average equity*		5.39	%		10.09	%
Capital to Assets		8.14	%		8.83	%
Consolidated asset quality data and ratios:
Nonaccruing and restructured loans	$	1,782,322		$	189,126			842.4	%
Accruing loans 90 days past due		-			-			0.0	%
Nonperforming loans		1,782,322			189,126			842.4	%
Foreclosed properties		205,006			87,787			133.5	%
Nonperforming assets		1,987,328			276,913			617.7	%
Allowance for loan losses		2,677,865			2,110,658			26.9	%
Loans charged off		117,693			29,902			293.6	%
Recoveries of loans charged off		10,997			12,990			-15.3	%
Net loan charge-offs		106,696			16,912			530.9	%
Net charge-offs to average loans*		0.25	%		0.05	%		400.0	%
Nonperforming loans to total assets		0.83	%		0.10	%		730.0	%
Allowance coverage of nonperforming loans
Allowance for loan losses to gross loans		1.53	%		1.54	%		-0.7	%

*Annualized based on number of days in the period.

Weststar Financial Services Corporation & Subsidiary

Supplemental Quarterly Financial Data

	Quarters Ended
	Mar 31,			Dec 31,			Sept 30,			Jun 30,			Mar 31,
	2009			2008			2008			2008			2008
Consolidated earning summary:
Interest income	$	3,063,662		$	3,171,825		$	3,080,208		$	2,895,378		$	3,080,413
Interest expense		1,193,073			1,270,829			1,180,997			1,185,292			1,347,132
Net interest income		1,870,589			1,900,996			1,899,211			1,710,086			1,733,281
Provision for loan losses		254,580			202,525			320,635			150,680			37,445
Net interest income after provision for loan losses		1,616,009			1,698,471			1,578,576			1,559,406			1,695,836
Other income		408,207			407,609			425,618			415,849			375,034
Other expenses		1,695,888			1,620,863			1,478,381			1,563,388			1,469,592
Income before taxes		328,328			485,217			525,813			411,867			601,278
Income taxes		104,385			203,529			176,809			129,384			213,141
Net income	$	223,943		$	281,688		$	349,004		$	282,483		$	388,137
Earnings per share - Basic	$	0.10		$	0.13		$	0.16		$	0.13		$	0.18
Earnings per share - Diluted		0.10			0.12			0.15			0.12			0.17
Average Shares - Basic		2,136,837			2,124,622			2,122,147			2,119,461			2,118,956
Average Shares - Diluted		2,251,225			2,253,846			2,273,388			2,279,884			2,279,551
Consolidated balance sheet data:
Total Assets	$	214,202,340		$	202,858,972		$	193,073,062		$	182,923,687		$	180,968,119
Total Deposits		186,453,881			170,814,106			166,519,486			155,212,188			155,155,491
Loans (gross)		175,006,653			171,239,692			157,724,566			148,338,170			137,192,577
Investments		23,518,059			23,778,449			23,681,294			25,076,449			26,494,464
Shareholders' Equity		16,971,583			16,510,571			15,783,148			15,782,299			15,793,519
Consolidated average balance sheet data:
Total Assets	$	207,155,031		$	197,854,734		$	185,946,806		$	178,016,532		$	175,340,851
Total Deposits		177,720,929			170,545,425			159,510,362			151,838,703			149,617,026
Loans (gross)		173,165,289			165,675,893			152,497,479			141,392,197			137,076,409
Investments		23,631,269			23,695,793			24,553,284			26,011,589			26,369,785
Shareholders' Equity		16,856,942			16,149,305			15,892,539			15,920,103			15,476,307
Consolidated performance ratios:
Return on average assets*		0.44	%		0.57	%		0.75	%		0.64	%		0.89	%
Return on average equity*		5.39	%		6.94	%		8.74	%		7.14	%		10.09	%
Capital to Assets		8.14	%		8.16	%		8.55	%		8.94	%		8.83	%
Consolidated asset quality data and ratios:
Nonaccruing and restructured loans	$	1,782,322		$	316,102		$	82,693		$	187,157		$	189,126
Accruing loans 90 days past due		-			-			-			-			-
Nonperforming loans		1,782,322			316,102			82,693			187,157			189,126
Foreclosed properties		205,006			205,006			227,407			51,006			87,787
Nonperforming assets		1,987,328			521,108			310,100			238,163			276,913
Allowance for loan losses		2,677,865			2,529,981			2,355,244			2,252,385			2,110,658
Loans charged off		117,693			36,759			236,362			16,910			29,902
Recoveries of loans charged off		10,997			8,971			18,587			7,956			12,990
Net loan charge-offs		106,696			27,788			217,775			8,954			16,912
Net charge-offs to average loans*		0.25	%		0.07	%		0.57	%		0.03	%		0.05	%
Nonperforming loans to total assets		0.83	%		0.16	%		0.04	%		0.10	%		0.10	%
Allowance coverage of nonperforming loans		150.25	%		800.37	%		2848.18	%		1203.47	%		1116.01	%
Allowance for loan losses to gross loans		1.53	%		1.48	%		1.49	%		1.52	%		1.54	%

* Annualized based on number of days in the period.