PENDLETON — Pendleton Heights won seven of its final nine regular-season games last year and entered sectional play considered by many to be the hottest team in The Herald Bulletin coverage area.

But the Arabians’ boys basketball season ended with a 73-50 loss against eventual champion Anderson in the first round at the New Castle Fieldhouse.

Only sharpshooter Michael Maxwell graduated from last year’s team, raising expectations for the 2009-10 season. But head coach Brian Hahn, 42-25 in four seasons at Pendleton, isn’t completely buying into the hype.

“Expectations are one of those things you have to keep in balance,” Hahn said. “We have a great group, but we’re still young, and we still have to grow physically and mentally. We expect to be competitive and be in every game. But we have to continually improve throughout the season.”

Pendleton Heights finished 12-9 a year ago, despite regularly starting as many as three freshmen.

The two biggest returners are in the backcourt — sophomore point guard Kendall Waters and senior shooting guard Nathan Hendershot.

“That’s going to be our strength,” Hahn said. “Kendall and Nathan are outstanding basketball players.”

Waters stunned opposing defenses last season with his effortless speed and crisp passing, showing polish in his ability to run the varsity offense as a freshman. Hendershot, a star for the Arabians’ track and cross country teams, led the team in scoring and used his speed to slice through the lane for easy baskets.

Maxwell provided a threat from beyond the 3-point arc, but that’s not all Pendleton Heights will be missing in his absence this year.

“Michael Maxwell did so much for us other than shoot 3s,” Hahn said. “His leadership was invaluable. We need people to step up and be vocal leaders. There’s not one person (that’s going to be able to replace Maxwell). We need a team effort.”

Hendershot will naturally be asked to assume some of those duties.

He got his senior year off to a good start by finishing seventh at the IHSAA cross country state finals in Terre Haute earlier this month. Hendershot started the fall saying his goal was to lead the Arabians to their first state finals appearance as a team.

Shortly after that goal was accomplished, with mud still sticking to his numbered bib, he laid out his expectations for the basketball season.

“We think we can be a pretty good team,” he said following the completion of cross country season. “We want to compete for a sectional championship.”

Hendershot reiterated that point again in a phone interview on Sunday.