Weststar Financial Services (WFSC) 8-K Reports Third Quarter Results

Exhibit 99.1

FOR RELEASE November 15, 2010

WESTSTAR FINANCIAL SERVICES CORPORATION

REPORTS THIRD QUARTER RESULTS

ASHEVILLE, NORTH CAROLINA - Weststar Financial Services Corporation (OTC BB:”WFSC”) reported a consolidated net loss of $4,657,000 for the three months ended September 30, 2010, compared to net income of $132,000 for the comparable period in 2009; or a loss of $2.15 and income of $.06, respectively, on a diluted per share basis.  For the nine-month period ended September 30, 2010, the net loss totaled $18,657,000 or $8.61 per share, compared to prior year net income of $789,000 or $.35 on a diluted per share basis.

The loss was attributable primarily to declines in the values of real estate and other assets underlying some of the Company’s nonperforming loans.  While the economy has demonstrated some signs of improvement, the real estate market in the Asheville area, especially new development, continues to lag.  As a result, the Company added $4,497,000 to the allowance for loan loss reserve during the third quarter of 2010, which brought the reserve to $8,450,000, or 5.11% of loans outstanding.  This addition raised the provision for loan loss expense for the nine months ended September 30, 2010, to $19,004,000.  The provision includes a $3,100,000 allocation to specific loans which was the result of the Company's decision to strengthen the allowance for loan loss in anticipation of slow progress on these construction development loans.

As of September 30, 2010, consolidated net assets were $195,306,000 compared to $223,587,000 a year earlier.  Deposits were $187,839,000, down 4.01% from 12 months ago; investments were $11,631,000, down 48.1%, and total loans were $165,310,000, down 10.9%.  Nonperforming assets were $33,377,000 compared to $25,973,000 on December 31, 2009 and $6,809,000 on September 30, 2009.

“Our primary focus is managing nonperforming assets and raising additional capital.  Net charge-offs for the quarter were down sharply to $233,000 compared to $13,398,000 during the previous quarter ended June 30, 2010.  In the third quarter of 2009, net charge-offs were $197,000,” said Randall C. Hall, President and Chief Executive Officer.

“While we likely will have additional losses to recognize; we believe they will continue to moderate over the next several quarters,” Hall said.

Weststar Financial Services Corporation is the parent company of Bank of Asheville.  Weststar Financial Services Corporation owns 100% of Weststar Financial Services Corporation I, a statutory trust formed for the purpose of issuing trust preferred securities.  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
	President & CEO
	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									Nine Months Ended
	September 30,									September 30,
	2010			2009			% change			2010			2009			% change
Consolidated earning summary:
Interest income	$	2,484,890		$	3,207,708			-22.5	%	$	7,771,443		$	9,507,976			-18.3	%
Interest expense		667,684			1,042,572			-36.0	%		2,309,139			3,388,899			-31.9	%
Net interest income		1,817,206			2,165,136			-16.1	%		5,462,304			6,119,077			-10.7	%
Provision for loan losses		4,497,030			869,015			417.5	%		19,004,420			1,344,905			1313.1	%
Net interest income after
provision for loan losses		(2,679,824	)		1,296,121			-306.8	%		(13,542,116	)		4,774,172			-383.7	%
Other income		890,646			463,466			92.2	%		1,708,526			1,336,264			27.9	%
Other expenses		2,729,621			1,616,278			68.9	%		6,601,971			5,001,042			32.0	%
Income (loss) before taxes		(4,518,799	)		143,309			-3253.2	%		(18,435,561	)		1,109,394			-1761.8	%
Income taxes (benefit)		138,415			11,686			1084.5	%		221,175			319,959			-30.9	%
Net income (loss)	$	(4,657,214	)	$	131,623			-3638.3	%	$	(18,656,736	)	$	789,435			-2463.3	%
Basic net income (loss) per common share	$	(2.15	)	$	0.06			-3683.3	%	$	(8.61	)	$	0.37			-2427.0	%
Diluted net income (loss) per common share		(2.15	)		0.06			-3683.3	%		(8.61	)		0.35			-2560.0	%
Average Shares - Basic		2,167,517			2,146,817			1.0	%		2,167,517			2,142,534			1.2	%
Average Shares - Diluted		2,167,517			2,244,029			-3.4	%		2,167,517			2,241,998			-3.3	%
Consolidated balance sheet data:
Total Assets										$	195,305,850		$	223,587,462			-12.7	%
Total Deposits											187,839,021			195,756,057			-4.0	%
Loans (gross)											165,309,503			185,441,835			-10.9	%
Investments											11,631,139			22,414,711			-48.1	%
Shareholders' Equity											(1,852,323	)		17,845,457			-110.4	%
Consolidated average balance sheet data:
Total Assets	$	211,128,994		$	224,637,174			-6.0	%	$	221,238,375		$	216,527,533			2.2	%
Total Deposits		198,241,149			196,112,318			1.1	%		198,680,242			187,926,584			5.7	%
Loans (gross)		167,583,639			184,061,988			-9.0	%		179,071,509			178,375,357			0.4	%
Investments		23,630,791			22,646,050			4.4	%		24,180,051			23,136,296			4.5	%
Shareholders' Equity		3,071,697			17,804,500			-82.8	%		12,631,150			17,348,759			-27.2	%
Consolidated performance ratios:
Return on average assets*		-8.75	%		0.23	%					-11.27	%		0.49	%
Return on average equity*		-601.52	%		2.93	%					-197.48	%		6.08	%
Leverage ratio		-0.99	%		9.53	%					-0.99	%		9.53	%
Tier 1 capital		-1.25	%		11.01	%					-1.25	%		11.01	%
Total risk-based capital		0.00	%		12.26	%					0.00	%		12.26	%
Average capital to average assets		1.45	%		7.93	%					5.71	%		8.01	%
Consolidated asset quality data and ratios:
Nonaccrual loans										$	24,688,754		$	6,078,050			306.2	%
Restructured loans											5,713,572			95,000			5914.3	%
Accruing loans 90 days past due											-			-			0.0	%
Nonperforming loans											30,402,326			6,173,050			392.5	%
Foreclosed properties											2,974,725			636,219			367.6	%
Repossessions											-			-			0.0	%
Nonperforming assets											33,377,051			6,809,269			390.2	%
Restructured loans not included in categories above											2,491,348			1,136,527			219.2	%
Allowance for loan losses											8,449,832			3,519,884			140.1	%
Loans charged off											14,155,455			380,394			3621.3	%
Recoveries of loans charged off											88,604			25,392			248.9	%
Net loan charge-offs											14,066,851			355,002			3862.5	%
Net charge-offs to average loans*											10.50	%		0.27	%		3788.9	%
Nonperforming loans to total loans											18.39	%		3.33	%		452.3	%
Nonperforming assets to total assets											17.09	%		3.05	%		461.2	%
Allowance coverage of nonperforming loans											27.79	%		57.02	%		-51.3	%
Allowance for loan losses to gross loans											5.11	%		1.90	%		169.0	%
*Annualized based on number of days in the period.

Weststar Financial Services Corporation & Subsidiary
Supplemental Quarterly Financial Data
	Quarters Ended
	Sept			Jun 30,			Mar 31,			Dec 30,			Sept 30,
	2010			2010			2010			2009			2009
Consolidated earning summary:
Interest income	$	2,484,890		$	2,526,630		$	2,759,923		$	2,689,965		$	3,207,708
Interest expense		667,684			800,690			840,765			927,850			1,042,572
Net interest income		1,817,206			1,725,940			1,919,158			1,762,115			2,165,136
Provision for loan losses		4,497,030			14,069,355			438,035			1,873,495			869,015
Net interest income after provision for loan losses		(2,679,824	)		(12,343,415	)		1,481,123			(111,380	)		1,296,121
Other income		890,646			424,908			392,972			446,532			463,466
Other expenses		2,729,621			2,065,912			1,806,438			1,798,294			1,616,278
Income (loss) before taxes		(4,518,799	)		(13,984,419	)		67,657			(1,463,142	)		143,309
Income taxes (benefit)		138,415			96,351			(13,591	)		(600,485	)		11,686
Net income (loss)	$	(4,657,214	)	$	(14,080,770	)	$	81,248		$	(862,657	)	$	131,623
Basic net income (loss) per common share	$	(2.15	)	$	(6.50	)	$	0.04		$	(0.40	)	$	0.06
Diluted net income (loss) per common share		(2.15	)		(6.50	)		0.04			(0.39	)		0.06
Average Shares - Basic		2,167,517			2,167,517			2,167,517			2,147,575			2,146,817
Average Shares - Diluted		2,167,517			2,167,517			2,182,009			2,209,253			2,244,029
Consolidated balance sheet data:
Total Assets	$	195,305,850		$	214,238,003		$	224,466,567		$	223,755,740		$	223,587,462
Total Deposits		187,839,021			200,896,609			197,508,562			197,122,741			195,756,057
Loans (gross)		165,309,503			170,438,295			184,066,654			185,474,873			185,441,835
Investments		11,631,139			24,456,879			24,082,597			25,046,500			22,414,711
Shareholders' Equity		(1,852,323	)		3,025,530			16,938,967			16,844,208			17,845,457
Consolidated average balance sheet data:
Total Assets	$	211,128,994		$	228,622,686		$	224,106,939		$	226,535,958		$	224,637,174
Total Deposits		198,241,149			201,604,540			196,173,185			198,443,652			196,112,318
Loans (gross)		167,583,639			183,687,355			186,147,532			186,053,433			184,061,988
Investments		23,630,791			24,264,392			24,656,238			22,238,326			22,646,050
Shareholders' Equity		3,071,697			16,940,567			18,045,751			18,020,645			17,804,500
Consolidated performance ratios:
Return on average assets*		-8.75	%		-24.70	%		0.15	%		-1.51	%		0.23	%
Return on average equity*		-601.52	%		-333.39	%		1.83	%		-18.99	%		2.93	%
Leverage ratio		-0.99	%		1.51	%		9.24	%		9.11	%		9.53	%
Tier 1 capital		-1.25	%		1.93	%		10.74	%		10.59	%		11.01	%
Total risk-based capital		0.00	%		3.85	%		11.99	%		11.84	%		12.26	%
Average capital to average assets		1.45	%		7.41	%		8.05	%		7.95	%		7.93	%
Consolidated asset quality data and ratios:
Nonaccrual loans	$	24,688,754		$	20,386,235		$	21,842,975		$	22,870,696		$	6,078,050
Restructured loans		5,713,572			4,470,275			3,691,277			2,591,289			95,000
Accruing loans 90 days past due		-			-			-			-			-
Nonperforming loans		30,402,326			24,856,510			25,534,252			25,461,985			6,173,050
Foreclosed properties		2,974,725			2,910,381			1,248,947			511,112			636,219
Repossessions		-			13,325			19,220			-			-
Nonperforming assets		33,377,051			27,780,216			26,802,419			25,973,097			6,809,269
Restructured loans not included in categories above		2,491,348			3,564,735			8,123,247			7,748,562			1,136,527
Allowance for loan losses		8,449,832			4,185,422			3,514,083			3,512,263			3,519,884
Loans charged off		249,683			13,412,398			493,374			1,886,088			201,398
Recoveries of loans charged off		17,063			14,382			57,159			4,972			4,759
Net loan charge-offs		232,620			13,398,016			436,215			1,881,116			196,639
Net charge-offs to average loans*		0.55	%		29.26	%		0.95	%		4.01	%		0.42	%
Nonperforming loans to total loans		18.39	%		14.58	%		13.87	%		13.73	%		3.33	%
Nonperforming assets to total assets		17.09	%		12.97	%		11.94	%		11.61	%		3.05	%
Allowance coverage of nonperforming loans		27.79	%		16.84	%		13.76	%		13.79	%		57.02	%
Allowance for loan losses to gross loans		5.11	%		2.46	%		1.91	%		1.89	%		1.90	%
* Annualized based on number of days in the period.