Exhibit 99.1

FOR RELEASE: August 20, 2010

WESTSTAR FINANCIAL SERVICES CORPORATION

REPORTS SECOND QUARTER RESULTS

ASHEVILLE, NORTH CAROLINA - Weststar Financial Services Corporation (OTC BB: “WFSC”) reported a consolidated net loss of $14,081,000  for the three months ended June 30, 2010 compared to net income of $434,000 for the comparable period in 2009 or $(6.50) and $.19, respectively, on a diluted per share basis.  For the six-month periods ended June 30, 2010, net loss totaled $14,000,000 compared to income of $658,000 during 2009 or $(6.46) and $.29, respectively on a diluted per share basis.

The loss was primarily attributable to decreases in underlying real estate and other asset values underlying certain of the Company’s nonperforming loans.  While the economy has demonstrated some signs of improvement, we continue to experience declines in value related primarily to development and related loans.  As a result the Company added $14,069,000 and $14,507,000 to the allowance for loan loss reserve during the 2010 three and six-month periods, respectively, which brought the reserve up to 2.46% of loans outstanding.

As of June 30, 2010, consolidated total assets decreased slightly to $214,238,000 from $223,524,000 a year earlier.  Deposits rose to $200,897,000 – an increase of 2.8%; investments increased 6.3% to $24,457,000; and total loans were $170,438,000.  Nonperforming assets were $27,780,000 compared to $25,973,000 at December 31, 2009 and $3,263,000 at June 30, 2009.

“Our loan charge-offs were disappointing as our customers continue to suffer through the current economic environment.  We are working aggressively on every problem loan and are beginning to experience incremental improvement in the prospects of liquidating nonperforming assets.  Concurrently, we continue to explore every option of working with our loan customers through these unprecedented times, and our commitment to our community and customers is evident as our deposits reached an all time high during the period,” commented Randall C. Hall, Interim President  and CEO.

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
	Interim 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									Six Months Ended
	June 30,									June 30,
	2010			2009			% change			2010			2009			% change
Consolidated earning summary:
Interest income	$	2,526,630		$	3,236,606			-21.9	%	$	5,286,553		$	6,300,268			-16.1	%
Interest expense		800,690			1,153,254			-30.6	%		1,641,455			2,346,327			-30.0	%
Net interest income		1,725,940			2,083,352			-17.2	%		3,645,098			3,953,941			-7.8	%
Provision for loan losses		14,069,355			221,310			6257.3	%		14,507,390			475,890			2948.5	%
Net interest income after
provision for loan losses		(12,343,415	)		1,862,042			-762.9	%		(10,862,292	)		3,478,051			-412.3	%
Other income		424,908			464,591			-8.5	%		817,880			872,798			-6.3	%
Other expenses		2,065,912			1,688,876			22.3	%		3,872,350			3,384,764			14.4	%
Income (loss) before taxes		(13,984,419	)		637,757			-2292.8	%		(13,916,762	)		966,085			-1540.5	%
Income taxes (benefit)		96,351			203,888			-52.7	%		82,760			308,273			-73.2	%
Net income (loss)	$	(14,080,770	)	$	433,869			-3345.4	%	$	(13,999,522	)	$	657,812			-2228.2	%
Basic net income (loss) per common share	$	(6.50	)	$	0.20			-3350.0	%	$	(6.46	)	$	0.31			-2183.9	%
Diluted net income (loss) per common share		(6.50	)		0.19			-3521.1	%		(6.46	)		0.29			-2327.6	%
Average Shares - Basic		2,167,517			2,146,132			1.0	%		2,167,517			2,140,937			1.2	%
Average Shares - Diluted		2,167,517			2,257,363			-4.0	%		2,167,517			2,241,744			-3.3	%
Consolidated balance sheet data:
Total Assets										$	214,238,003		$	223,524,119			-4.2	%
Total Deposits											200,896,609			195,449,346			2.8	%
Loans (gross)											170,438,295			180,614,075			-5.6	%
Investments											24,456,879			22,998,342			6.3	%
Shareholders' Equity											3,025,530			17,401,159			-82.6	%
Consolidated average balance sheet data:
Total Assets	$	228,622,686		$	217,599,672			5.1	%	$	226,376,844		$	212,405,828			6.6	%
Total Deposits		201,604,540			189,745,214			6.3	%		198,903,427			183,766,075			8.2	%
Loans (gross)		183,687,355			177,779,049			3.3	%		184,910,647			175,484,914			5.4	%
Investments		24,264,392			23,142,396			4.9	%		24,459,233			23,385,482			4.6	%
Shareholders' Equity		16,940,567			17,374,418			-2.5	%		17,490,104			17,117,109			2.2	%
Consolidated performance ratios:
Return on average assets*		-24.70	%		0.80	%					-12.47	%		0.62	%
Return on average equity*		-333.39	%		10.02	%					-161.41	%		7.75	%
Leverage ratio		1.51	%		9.78	%					1.51	%		9.78	%
Tier 1 captial		1.93	%		11.36	%					1.93	%		11.36	%
Total risk-based capital		3.85	%		12.61	%					3.85	%		12.61	%
Average capital to average assets		7.41	%		7.98	%					7.73	%		8.06	%
Consolidated asset quality data and ratios:
Nonaccrual loans										$	20,386,235		$	2,222,060			817.5	%
Restructured loans											4,470,275			798,197			460.1	%
Accruing loans 90 days past due											-			-			0.0	%
Nonperforming loans											24,856,510			3,020,257			723.0	%
Foreclosed properties											2,910,381			205,006
Repossessions											13,325			38,000			-64.9	%
Nonperforming assets											27,780,216			3,263,263			751.3	%
Restructured loans not included in categories above											3,564,735			-			0.0	%
Allowance for loan losses											4,185,422			2,847,508			47.0	%
Loans charged off											13,905,772			178,996			7668.8	%
Recoveries of loans charged off											71,541			20,633			246.7	%
Net loan charge-offs											13,834,231			158,363			8635.8	%
Net charge-offs to average loans*											15.09	%		0.18	%		8283.3	%
Nonperforming loans to total loans											14.58	%		1.67	%		773.1	%
Nonperforming assets to total assets											12.97	%		1.46	%		788.2	%
Allowance coverage of nonperforming loans											16.84	%		94.28	%		-82.1	%
Allowance for loan losses to gross loans											2.46	%		1.58	%		55.7	%
*Annualized based on number of days in the period.

Weststar Financial Services Corporation & Subsidiary
Supplemental Quarterly Financial Data
	Quarters Ended
	Jun 30,			Mar 31,			Dec 30,			Sept 30,			Jun 30,
	2010			2010			2009			2009			2009
Consolidated earning summary:
Interest income	$	2,526,630		$	2,759,923		$	2,689,965		$	3,207,708		$	3,236,606
Interest expense		800,690			840,765			927,850			1,042,572			1,153,254
Net interest income		1,725,940			1,919,158			1,762,115			2,165,136			2,083,352
Provision for loan losses		14,069,355			438,035			1,873,495			869,015			221,310
Net interest income after provision for loan losses		(12,343,415	)		1,481,123			(111,380	)		1,296,121			1,862,042
Other income		424,908			392,972			446,532			463,466			464,591
Other expenses		2,065,912			1,806,438			1,798,294			1,616,278			1,688,876
Income (loss) before taxes		(13,984,419	)		67,657			(1,463,142	)		143,309			637,757
Income taxes (benefit)		96,351			(13,591	)		(600,485	)		11,686			203,888
Net income (loss)	$	(14,080,770	)	$	81,248		$	(862,657	)	$	131,623		$	433,869
Basic net income (loss) per common share	$	(6.50	)	$	0.04		$	(0.40	)	$	0.06		$	0.20
Diluted net income (loss) per common share		(6.50	)		0.04			(0.39	)		0.06			0.19
Average Shares - Basic		2,167,517			2,167,517			2,147,575			2,146,817			2,146,132
Average Shares - Diluted		2,167,517			2,182,009			2,209,253			2,244,029			2,257,363
Consolidated balance sheet data:
Total Assets	$	214,238,003		$	224,466,567		$	223,755,740		$	223,587,462		$	223,524,119
Total Deposits		200,896,609			197,508,562			197,122,741			195,756,057			195,449,346
Loans (gross)		170,438,295			184,066,654			185,474,873			185,441,835			180,614,075
Investments		24,456,879			24,082,597			25,046,500			22,414,711			22,998,342
Shareholders' Equity		3,025,530			16,938,967			16,844,208			17,845,457			17,401,159
Consolidated average balance sheet data:
Total Assets	$	228,622,686		$	224,106,939		$	226,535,958		$	224,637,174		$	217,599,672
Total Deposits		201,604,540			196,173,185			198,443,652			196,112,318			189,745,214
Loans (gross)		183,687,355			186,147,532			186,053,433			184,061,988			177,779,049
Investments		24,264,392			24,656,238			22,238,326			22,646,050			23,142,396
Shareholders' Equity		16,940,567			18,045,751			18,020,645			17,804,500			17,374,418
Consolidated performance ratios:
Return on average assets*		-24.70	%		0.15	%		-1.51	%		0.23	%		0.80	%
Return on average equity*		-333.39	%		1.83	%		-18.99	%		2.93	%		10.02	%
Leverage ratio		1.51	%		9.24	%		9.11	%		9.53	%		9.78	%
Tier 1 captial		1.93	%		10.74	%		10.59	%		11.01	%		11.36	%
Total risk-based capital		3.85	%		11.99	%		11.84	%		12.26	%		12.61	%
Average capital to average assets		7.41	%		8.05	%		7.95	%		7.93	%		7.98	%
Consolidated asset quality data and ratios:
Nonaccrual loans	$	20,386,235		$	21,842,975		$	22,870,696		$	6,078,050		$	2,222,060
Restructured loans		4,470,275			3,691,277			2,591,289			95,000			798,197
Accruing loans 90 days past due		-			-			-			-			-
Nonperforming loans		24,856,510			25,534,252			25,461,985			6,173,050			3,020,257
Foreclosed properties		2,910,381			1,248,947			511,112			636,219			205,006
Repossessions		13,325			19,220			-			-			38,000
Nonperforming assets		27,780,216			26,802,419			25,973,097			6,809,269			3,263,263
Restructured loans not included in categories above		3,564,735			8,123,247			7,748,562			1,136,527			798,197
Allowance for loan losses		4,185,422			3,514,083			3,512,263			3,519,884			2,847,508
Loans charged off		13,412,398			493,374			1,886,088			201,398			61,303
Recoveries of loans charged off		14,382			57,159			4,972			4,759			9,636
Net loan charge-offs		13,398,016			436,215			1,881,116			196,639			51,667
Net charge-offs to average loans*		29.26	%		0.95	%		4.01	%		0.42	%		0.12	%
Nonperforming loans to total loans		14.58	%		13.87	%		13.73	%		3.33	%		1.67	%
Nonperforming assets to total assets		12.97	%		11.94	%		11.61	%		3.05	%		1.46	%
Allowance coverage of nonperforming loans		16.84	%		13.76	%		13.79	%		57.02	%		94.28	%
Allowance for loan losses to gross loans		2.46	%		1.91	%		1.89	%		1.90	%		1.58	%
* Annualized based on number of days in the period.