----

----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------|

| West Virginia                                                 |   | 22-3888163                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. Employer Identification No.) |

|   | Large accelerated filer o |   | Accelerated Filer o         |
|--------|---------------------------|--------|-----------------------------|
|   | Non-accelerated filer o   |   | Smaller reporting company x |

----

----

ALLEGHENY BANCSHARES, INC. 

|                      |                      |                                                                                                                 | PAGE   |
|---------------------------|---------------------------|----------------------------------------------------------------------------------------------------------------------|--------|
| PART I.                   | FINANCIAL INFORMATION     |                                                                                                                 |
|                      |                      |                                                                                                                 |   |
|                      | Item 1.                   | Financial Statements                                                                                                 | 2      |
|                      |                      |                                                                                                                 |   |
|                      |                      | Unaudited Consolidated Statements of Income – Six Months ended June 30, 2009 and 2008                          | 2      |
|                      |                      |                                                                                                                 |   |
|                      |                      | Unaudited Consolidated Statements of Income – Three Months ended June 30, 2009 and 2008                        | 3      |
|                      |                      |                                                                                                                 |   |
|                      |                      | Consolidated Balance Sheets – June 30,, 2009 (Unaudited) and December 31, 2008 (Audited)                       | 4      |
|                      |                      |                                                                                                                 |   |
|                      |                      | Unaudited Consolidated Statements of Changes in Stockholders’ Equity - Six Months Ended June 30, 2009 and 2008 | 5      |
|                      |                      |                                                                                                                 |   |
|                      |                      | Unaudited Consolidated Statements of Cash Flows – Six Months Ended June 30, 2009 and 2008                      | 6      |
|                      |                      |                                                                                                                 |   |
|                      |                      | Notes to Consolidated Financial Statements                                                                           | 8      |
|                      |                      |                                                                                                                 |   |
|                      | Item 2.                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                          | 14     |
|                      |                      |                                                                                                                 |   |
|                      | Item 3.                   | Quantitative and Qualitative Disclosures about Market Risk                                                           | 19     |
|                      |                      |                                                                                                                 |   |
|                      | Item 4T.   | Controls and Procedures                                                                                              | 20     |
|                      |                      |                                                                                                                 |   |
| PART II.   | OTHER INFORMATION         | 20                                                                                                                   |
|                      |                      |                                                                                                                 |   |
|                      | Item 1.                   | Legal Proceedings                                                                                                    | 20     |
|                      |                      |                                                                                                                 |   |
|                      | Item 2.                   | Changes in Securities                                                                                                | 20     |
|                      |                      |                                                                                                                 |   |
|                      | Item 3.                   | Defaults upon Senior Securities                                                                                      | 20     |
|                      |                      |                                                                                                                 |   |
|                      | Item 4.                   | Submission of Matters to a Vote of Security Holders                                                                  | 20     |
|                      |                      |                                                                                                                 |   |
|                      | Item 5.                   | Other Information                                                                                                    | 21     |
|                      |                      |                                                                                                                 |   |
|                      | Item 6.                   | Exhibits                                                                                                             | 21     |
|                      |                      |                                                                                                                 |   |
|                      |                      | SIGNATURES                                                                                                           | 22     |

----

Part I.  Financial Information

Item 1.   Consolidated Financial Statements 

Consolidated Statements of Income 

|                                                |   | Six Months Ended |    |
|-----------------------------------------------------|--------|------------------|---------|
|                                                |   | June 30,         |    |
|                                                |   | 2009             |    |   | 2008 |   |
| Interest and Dividend Income:                       |   |             |    |   |   |   |
| Loans and fees                                      |   | $                | 5,566   |   |   | $ | 5,686 |   |
| Investment securities – taxable               |   |             | 213     |   |   |   | 259 |   |
| Investment securities – nontaxable            |   |             | 306     |   |   |   | 343 |   |
| Deposits and federal funds sold                     |   |             | 42      |   |   |   | 128 |   |
|                                                |   |             |    |   |   |   |   |   |
| Total Interest and Dividend Income                  |   |             | 6,127   |   |   |   | 6,416 |   |
|                                                |   |             |    |   |   |   |   |   |
| Interest Expense:                                   |   |             |    |   |   |   |   |   |
| Deposits                                            |   |             | 1,990   |   |   |   | 2,416 |   |
| Borrowings                                          |   |             | 145     |   |   |   | 195 |   |
|                                                |   |             |    |   |   |   |   |   |
| Total Interest Expense                              |   |             | 2,135   |   |   |   | 2,611 |   |
|                                                |   |             |    |   |   |   |   |   |
| Net Interest Income                                 |   |             | 3,992   |   |   |   | 3,805 |   |
|                                                |   |             |    |   |   |   |   |   |
| Provision for loan losses                           |   |             | 167     |   |   |   | 135 |   |
|                                                |   |             |    |   |   |   |   |   |
| Net Interest Income After Provision for Loan Losses |   |             | 3,825   |   |   |   | 3,670 |   |
|                                                |   |             |    |   |   |   |   |   |
| Noninterest Income:                                 |   |             |    |   |   |   |   |   |
| Service charges on deposit accounts                 |   |             | 441     |   |   |   | 412 |   |
| Restricted equity security impairment               |   |             | (604    | ) |   |   | -  |   |
| Gain on sale of securities                          |   |             | 64      |   |   |   | -  |   |
| Other income                                        |   |             | 320     |   |   |   | 323 |   |
|                                                |   |             |    |   |   |   |   |   |
| Total Noninterest Income                            |   |             | 221     |   |   |   | 735 |   |
|                                                |   |             |    |   |   |   |   |   |
| Noninterest Expense:                                |   |             |    |   |   |   |   |   |
| Salaries and benefits                               |   |             | 1,523   |   |   |   | 1,447 |   |
| Occupancy expenses                                  |   |             | 198     |   |   |   | 189 |   |
| Equipment expenses                                  |   |             | 307     |   |   |   | 302 |   |
| Other expenses                                      |   |             | 1,157   |   |   |   | 765 |   |
| Total Noninterest Expenses                          |   |             | 3,185   |   |   |   | 2,703 |   |
|                                                |   |             |    |   |   |   |   |   |
| Income before Income Taxes                          |   |             | 861     |   |   |   | 1,702 |   |
|                                                |   |             |    |   |   |   |   |   |
| Income Tax Expense                                  |   |             | 356     |   |   |   | 465 |   |
|                                                |   |             |    |   |   |   |   |   |
| Net Income                                          |   | $                | 505     |   |   | $ | 1,237 |   |
|                                                |   |             |    |   |   |   |   |   |
| Earnings Per Share                                  |   |             |    |   |   |   |   |   |
| Net income                                          |   | $                | 0.58    |   |   | $ | 1.41 |   |
|                                                |   |             |    |   |   |   |   |   |
| Weighted Average Shares Outstanding                 |   |             | 870,869 |   |   |   | 880,118 |   |

----

Consolidated Statements of Income 

|                                                |   | Three Months Ended |    |
|-----------------------------------------------------|--------|--------------------|---------|
|                                                |   | June 30,           |    |
|                                                |   | 2009               |    |   | 2008 |   |
| Interest and Dividend Income:                       |   |               |    |   |   |   |
| Loans and fees                                      |   | $                  | 2,900   |   |   | $ | 2,806 |   |
| Investment securities – taxable               |   |               | 110     |   |   |   | 114 |   |
| Investment securities – nontaxable            |   |               | 157     |   |   |   | 166 |   |
| Deposits and federal funds sold                     |   |               | 14      |   |   |   | 69 |   |
|                                                |   |               |    |   |   |   |   |   |
| Total Interest and Dividend Income                  |   |               | 3,181   |   |   |   | 3,155 |   |
|                                                |   |               |    |   |   |   |   |   |
| Interest Expense:                                   |   |               |    |   |   |   |   |   |
| Deposits                                            |   |               | 1,045   |   |   |   | 1,168 |   |
| Borrowings                                          |   |               | 71      |   |   |   | 88 |   |
|                                                |   |               |    |   |   |   |   |   |
| Total Interest Expense                              |   |               | 1,116   |   |   |   | 1,256 |   |
|                                                |   |               |    |   |   |   |   |   |
| Net Interest Income                                 |   |               | 2,065   |   |   |   | 1,899 |   |
|                                                |   |               |    |   |   |   |   |   |
| Provision for loan losses                           |   |               | 90      |   |   |   | 74 |   |
|                                                |   |               |    |   |   |   |   |   |
| Net Interest Income After Provision for Loan Losses |   |               | 1,975   |   |   |   | 1,825 |   |
|                                                |   |               |    |   |   |   |   |   |
| Noninterest Income:                                 |   |               |    |   |   |   |   |   |
| Service charges on deposit accounts                 |   |               | 252     |   |   |   | 226 |   |
| Gain on sale of securities                          |   |               | 74      |   |   |   | -  |   |
| Other income                                        |   |               | 161     |   |   |   | 171 |   |
|                                                |   |               |    |   |   |   |   |   |
| Total Noninterest Income                            |   |               | 487     |   |   |   | 397 |   |
|                                                |   |               |    |   |   |   |   |   |
| Noninterest Expense:                                |   |               |    |   |   |   |   |   |
| Salaries and benefits                               |   |               | 778     |   |   |   | 719 |   |
| Occupancy expenses                                  |   |               | 104     |   |   |   | 99 |   |
| Equipment expenses                                  |   |               | 160     |   |   |   | 149 |   |
| Other expenses                                      |   |               | 665     |   |   |   | 379 |   |
| Total Noninterest Expenses                          |   |               | 1,707   |   |   |   | 1,346 |   |
|                                                |   |               |    |   |   |   |   |   |
| Income before Income Taxes                          |   |               | 755     |   |   |   | 876 |   |
|                                                |   |               |    |   |   |   |   |   |
| Income Tax Expense                                  |   |               | 208     |   |   |   | 240 |   |
|                                                |   |               |    |   |   |   |   |   |
| Net Income                                          |   | $                  | 547     |   |   | $ | 636 |   |
|                                                |   |               |    |   |   |   |   |   |
| Earnings Per Share                                  |   |               |    |   |   |   |   |   |
| Net income                                          |   | $                  | 0.63    |   |   | $ | 0.72 |   |
|                                                |   |               |    |   |   |   |   |   |
| Weighted Average Shares Outstanding                 |   |               | 870,676 |   |   |   | 880,024 |   |

----

Allegheny Bancshares, Inc.

|                                                                                 |   | June 30, 2009 |    |   | December 31, 2008 |   |
|--------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------|--------|
|                                                                                 |   | Unaudited               |    |   | Audited           |   |
| ASSETS                                                                               |   |                    |    |   |              |   |
| Cash and due from banks                                                              |   | $                       | 7,039   |   |              | $      | 2,562 |   |
| Federal funds sold                                                                   |   |                    | 2,000   |   |              |   | 1,570 |   |
| Interest bearing deposits in banks                                                   |   |                    | 5,827   |   |              |   | 4,637 |   |
| Investment securities available for sale                                             |   |                    | 26,898  |   |              |   | 25,685 |   |
| Restricted equity securities                                                         |   |                    | 747     |   |              |   | 1,351 |   |
| Loans receivable, net of allowance for loan losses of $1,372 and $1,396 respectively |   |                    | 175,388 |   |              |   | 156,982 |   |
| Bank premises and equipment, net                                                     |   |                    | 6,983   |   |              |   | 6,249 |   |
| Interest receivable                                                                  |   |                    | 1,364   |   |              |   | 1,276 |   |
| Goodwill                                                                             |   |                    | 1,056   |   |              |   | - |   |
| Bank owned life insurance                                                            |   |                    | 3,779   |   |              |   | 3,693 |   |
| Other assets                                                                         |   |                    | 1,634   |   |              |   | 725 |   |
|                                                                                 |   |                    |    |   |              |   |   |   |
| Total Assets                                                                         |   | $                       | 232,715 |   |              | $      | 204,730 |   |
|                                                                                 |   |                    |    |   |              |   |   |   |
| LIABILITIES                                                                          |   |                    |    |   |              |   |   |   |
| Deposits                                                                             |   |                    |    |   |              |   |   |   |
| Noninterest bearing demand                                                           |   | $                       | 21,361  |   |              | $      | 20,197 |   |
| Interest bearing                                                                     |   |                    |    |   |              |   |   |   |
|       Demand                                           |   |                    | 26,942  |   |              |   | 18,985 |   |
|       Savings                                          |   |                    | 27,681  |   |              |   | 28,567 |   |
|       Time deposits over $100,000                      |   |                    | 38,047  |   |              |   | 28,211 |   |
|       Other time deposits                              |   |                    | 82,743  |   |              |   | 71,280 |   |
|                                                                                 |   |                    |    |   |              |   |   |   |
| Total Deposits                                                                       |   |                    | 196,774 |   |              |   | 167,240 |   |
|                                                                                 |   |                    |    |   |              |   |   |   |
| Accrued expenses and other liabilities                                               |   |                    | 1,202   |   |              |   | 841 |   |
| Short-term borrowings                                                                |   |                    | 1,489   |   |              |   | 3,569 |   |
| Long-term debt                                                                       |   |                    | 5,809   |   |              |   | 5,920 |   |
|                                                                                 |   |                    |    |   |              |   |   |   |
| Total Liabilities                                                                    |   |                    | 205,274 |   |              |   | 177,570 |   |
|                                                                                 |   |                    |    |   |              |   |   |   |
| STOCKHOLDERS' EQUITY                                                                 |   |                    |    |   |              |   |   |   |
| Common stock; $1 par value, 2,000,000 shares                                         |   |                    |    |   |              |   |   |   |
| Authorized, 900,000 issued                                                           |   |                    | 900     |   |              |   | 900 |   |
| Additional paid in capital                                                           |   |                    | 900     |   |              |   | 900 |   |
| Retained earnings                                                                    |   |                    | 27,136  |   |              |   | 26,631 |   |
| Accumulated other comprehensive income                                               |   |                    | 139     |   |              |   | 320 |   |
| Treasury stock (at cost, 29,501 shares in 2009 and 28,767 shares in 2008)            |   |                    | (1,634  | )      |              |   | (1,591 | ) |
| Total Stockholders' Equity                                                           |   |                    | 27,441  |   |              |   | 27,160 |   |
|                                                                                 |   |                    |    |   |              |   |   |   |
| Total Liabilities and Stockholders' Equity                                           |   | $                       | 232,715 |   |              | $      | 204,730 |   |

----

Consolidated Statements of Changes in Stockholders' Equity 

|                       |   |   |        |    |        |   |   |                      |   |   |              |   |   | Accumulated Other           |   |
|----------------------------|--------|--------|-------------|---------|-------------|--------|--------|---------------------------|--------|--------|-------------------|--------|--------|-----------------------------|--------|
|                       |   | Total  |        |    | CommonStock |   |   | AdditionalPaid In Capital |   |   | Retained Earnings |   |   | Comprehensive Income (Loss) |   |   | Treasury Stock |   |
|                       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |
| Balance, December 31, 2008 |   | $      | 27,160      |    |        | $      | 900    |                      |   | $      | 900               |   |   | $                           | 26,631 |   |   | $ | 320 |   |   | $ | (1,591 | ) |
|                       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Net Income                 |   |   | 505         |    |        |   |   |                      |   |   |              |   |   |                        | 505    |   |   |   |   |   |   |   |   |   |
| Change in unrealized       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| gain on                    |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| available for sale         |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| securities, net of         |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| income tax effect of       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| ($93)                      |   |   | (181        | )       |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   | (181 | ) |   |   |   |   |
| Total Comprehensive Income |   |   |  324   |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Purchase of Treasury Stock |   |   | (43         | )  |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   | (43 | )  |
|                       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2009     |   | $      | 27,441      |    |        | $      | 900    |                      |   | $      | 900               |   |   | $                           | 27,136 |   |   | $ | 139 |   |   | $ | (1,634 | ) |
|                       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007 |   | $      | 26,731      |    |        | $      | 900    |                      |   | $      | 900               |   |   | $                           | 25,836 |   |   | $ | 154 |   |   | $ | (1,059 | ) |
|                       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Net income                 |   |   | 1,237       |    |        |   |   |                      |   |   |              |   |   |                        | 1,237  |   |   |   |   |   |   |   |   |   |
| Change in unrealized       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| gain on                    |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| available for sale         |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| securities, net of         |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| income tax effect of       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| ($39)                      |   |   | (75         | )  |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   | (75 | )  |   |   |   |   |
| Total Comprehensive Income |   |   | 1,162  |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Purchase of Treasury Stock |   |   | (27         | )  |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   | (27 ) |   |
|                       |   |   |        |    |        |   |   |                      |   |   |              |   |   |                        |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2008     |   | $      | 27,866      |    |        | $      | 900    |                      |   | $      | 900               |   |   | $                           | 27,073 |   |   | $ | 79 |   |   | $ | (1,086 | ) |

----

 Allegheny Bancshares, Inc.

|                                                                                              |   | Six Months Ended |   |
|---------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                              |   | June 30,         |   |
|                                                                                              |   | 2009             |   |   | 2008 |   |
|                                                                                              |   |             |   |   |   |   |
| Cash Flows from Operating Activities:                                                             |   |             |   |   |   |   |
| Net income                                                                                        |   | $                | 505    |   |   | $ | 1,237 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                 |   |             |   |   |   |   |   |   |
|       Provision for loan losses                                     |   |             | 167    |   |   |   | 136 |   |
|       Depreciation and amortization                                 |   |             | 228    |   |   |   | 228 |   |
|       Loss on disposal of fixed assets                              |   |             | -      |   |   |   | 17 |   |
|       Net amortization of securities                                |   |             | 22     |   |   |   | 5 |   |
|       Gain on sale of securities                                    |   |             | (64    | )  |   |   | -  |   |
|       Loss on restricted equity other than temporary impairment     |   |             | 604    |   |   |   | -  |   |
|       Deferred income tax benefit                                   |   |             | (134   | )  |   |   | (110 | )  |
|       Income from life insurance investment                         |   |             | (85    | ) |   |   | (87 | ) |
|       Net change in:                                                |   |             |   |   |   |   |   |   |
|           Accrued income                        |   |             | (87    | ) |   |   | (8 | ) |
|           Other assets                          |   |             | (439   | ) |   |   | (101 | ) |
|           Accrued expense and other liabilities |   |             | 115    |   |   |   | 416 |   |
| Net Cash Provided  by Operating Activities                                              |   |             | 832    |   |   |   | 1,733 |   |
|                                                                                              |   |             |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                             |   |             |   |   |   |   |   |   |
| Net change in federal funds sold                                                                  |   |             | (430   | ) |   |   | (2 426 | ) |
| Cash received from the acquisition of branch offices                                              |   |             | 6,497  |   |   |   | - |   |
| Net change in interest bearing deposits in banks                                                  |   |             | (1,190 | ) |   |   | (7,337 | ) |
| Proceeds from sales, calls and maturities of available for sale securities                        |   |             | 6,104  |   |   |   | 6 ,265 |   |
| Purchase of securities available for sale                                                         |   |             | (7,550 | ) |   |   | (1.203 |  ) |
| Purchase of restricted investments                                                                |   |             | -      |   |   |   | (591 | ) |
| Proceeds from redemption of restricted investments                                                |   |             | -      |   |   |   | 61 |   |
| Net increase  in loans                                                                  |   |             | (4,860 | ) |   |   | (5,713 | ) |
| Purchase of bank premises and equipment                                                           |   |             | (93    | ) |   |   | (145 | ) |
| Net Cash Used in Investing Activities                                                             |   |             | (1,522 | )  |   |   | (11,089 | ) |
|                                                                                              |   |             |   |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                             |   |             |   |   |   |   |   |   |
| Net change in:                                                                                    |   |             |   |   |   |   |   |   |
|       Demand and savings deposits                                   |   |             | (1,794 | ) |   |   | 1,243 |   |
|       Time deposits                                                 |   |             | 9,195  |   |   |   | 7,167 |   |
|       Short-term borrowings                                         |   |             | (2,080 | ) |   |   | 2,971 |   |
| Curtailments of long-term borrowings                                                              |   |             | (111   | ) |   |   | (1,903 | ) |
| Purchase of treasury stock                                                                        |   |             | (43    | ) |   |   | (27 | ) |
| Net Cash Provided by Financing Activities                                                         |   |             | 5,167  |   |   |   | 9,451 |   |
|                                                                                              |   |             |   |   |   |   |   |   |
| Cash and due from banks                                                                           |   |             |   |   |   |   |   |   |
| Net increase in cash and due from banks                                                           |   |             | 4,477  |   |   |   | 95 |   |
| Cash and due from banks, beginning of period                                                      |   |             | 2,562  |   |   |   | 2,846 |   |
| Cash and due from banks, end of period                                                            |   | $                | 7,039  |   |   | $ | 2,941 |   |

----

|                                                        |   |   |   |   |   |   |    |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|
| Supplemental Disclosure of Cash Paid During the Period for: |   |   |   |   |   |   |    |   |
| Interest                                                    |   | $      | 2,108  |   |   | $      | 2,384   |   |
| Income taxes                                                |   | $      | 336    |   |   | $      | 520     |   |
|                                                        |   |   |   |   |   |   |    |   |
| Transactions related to acquisition of branches             |   |   |   |   |   |   |    |   |
| Increase in assets and liabilities:                         |   |   |   |   |   |   |    |   |
| Loans                                                       |   | $      | 13,713 |   |   |   |  - |   |
| Bank premises and equipment                                 |   | $      | 869    |   |   |   |  - |   |
| Other assets (Goodwill)                                     |   | $      | 1,056  |   |   |   |  - |   |
| Deposits                                                    |   | $      | 22,133 |   |   |   |  - |   |
| Other liabilities                                           |   | $      | 2      |   |   |   |    |   |

----

| ALLEGHENY BANCSHARES, INC.    |
|-------------------------------|
| NOTES TO FINANCIAL STATEMENTS |

NOTE 1   ACCOUNTING PRINCIPLES: 

----

| ALLEGHENY BANCSHARES, INC.    |
|-------------------------------|
| NOTES TO FINANCIAL STATEMENTS |

| June 30, 2009                                    |   |           |   |   |                   |   |   |                    |   |   |       |   |
|--------------------------------------------------|--------|----------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
|                                             |   | Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
| Securities available for sale:                   |   |           |   |   |                   |   |   |                    |   |   |       |   |
| Mortgaged backed obligations of federal agencies |   | $              | 3,010  |   |                   | $      | 48     |                    |   | $      | 13         |   |   | $ | 3,045 |   |
| Government sponsored enterprises                 |   |           | 6,520  |   |                   |   | 24     |                    |   |   | 23         |   |   |   | 6,521 |   |
| Obligations of states and political subdivisions |   |           | 16,523 |   |                   |   | 293    |                    |   |   | 79         |   |   |   | 16,737 |   |
| Corporate obligations                            |   |           | 501    |   |                   |   | -      |                    |   |   | 37         |   |   |   | 464 |   |
| Other equities                                   |   |           | 131    |   |                   |   | -      |                    |   |   | -          |   |   |   | 131 |   |
|                                             |   |           |   |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
| Total                                            |   | $              | 26,685 |   |                   | $      | 365    |                    |   | $      | 152        |   |   | $ | 26,898 |   |

| December 31, 2008                                |   |           |   |   |                   |   |   |                    |   |   |       |
|--------------------------------------------------|--------|----------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|
|                                             |   | Amortized Cost |   |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |
| Securities available for sale:                   |   |           |   |   |                   |   |   |                    |   |   |       |
| Mortgaged backed obligations of federal agencies |   | $              | 2,905  |   |                   | $      | 34     |                    |   | $      | 4          |   |   | $ | 2,935 |
| Government sponsored enterprises                 |   |           | 6,008  |   |                   |   | 169    |                    |   |   | -          |   |   |   | 6,177 |
| Obligations of states and political subdivisions |   |           | 15,652 |   |                   |   | 396    |                    |   |   | 58         |   |   |   | 15,991 |
| Corporate obligations                            |   |           | 501    |   |                   |   | -      |                    |   |   | 50         |   |   |   | 451 |
| Other equities                                   |   |           | 131    |   |                   |   | -      |                    |   |   | -          |   |   |   | 131 |
|                                             |   |           |   |   |                   |   |   |                    |   |   |       |   |   |   |   |
| Total                                            |   | $              | 25,197 |   |                   | $      | 599    |                    |   | $      | 112        |   |   | $ | 25,685 |

|                                             |   | Less than 12 months |   |   | 12 Months or greater |   |   | Total      |   |
|--------------------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|------------|--------|
|                                             |   | Fair Value          |   |   | Unrealized Losses    |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |
| Description of Securities:                       |   |                |   |   |                 |   |   |       |   |   |   |   |   |   |   |
| Mortgaged backed obligations of federal agencies |   | $                   | 636    |   |                 | $      | 11     |       |   | $ | 414 |   |   | $ | 2 |   |   | $ | 1,050 |   |
| Government sponsored enterprises                 |   |                | 3,963  |   |                 |   | 23     |       |   |   | - |   |   |   | - |   |   |   | 3,963 |   |
| Obligations of states and political subdivisions |   |                | 2,406  |   |                 |   | 47     |       |   |   | 820 |   |   |   | 32 |   |   |   | 3,226 |   |
| Corporate obligations                            |   |                | -      |   |                 |   | -      |       |   |   | 464 |   |   |   | 37 |   |   |   | 464 |   |
| Total                                            |   | $                   | 7,005  |   |                 | $      | 81     |       |   | $ | 1,698 |   |   | $ | 71 |   |   | $ | 8,703 |   |

----

| ALLEGHENY BANCSHARES, INC.    |
|-------------------------------|
| NOTES TO FINANCIAL STATEMENTS |

|                                  |   | Amortized Cost |         |   | Fair Value |    |
|---------------------------------------|--------|----------------|--------------|--------|------------|---------|
| Due:                                  |   |           |         |   |       |    |
| In one year or less                   |   | $              | 1,470        |   |       | $       | 1,494 |   |
| After one year through five years     |   |           |  16,524 |   |       |    | 16,721 |   |
| After five years through ten years    |   |           | 5,490        |   |       |    | 5,495 |   |
| After ten years through fifteen years |   |           | 3,201        |   |       |    | 3,188 |   |
|                                  |   | $         | 26,685       |   |       | $  | 26,898 |   |

|                                                    |   | June 30, 2009 |    |   | December 31, 2008 |   |
|---------------------------------------------------------|--------|---------------|---------|--------|------------------------|--------|
|                                                    |   |          |    |   |                   |   |
| Real estate loans                                       |   | $             | 83,629  |   |                   | $      | 72,291 |   |
| Commercial and industrial loans                         |   |          | 75,719  |   |                   |   | 70,680 |   |
| Loans to individuals, primarily collateralized by autos |   |          | 13,678  |   |                   |   | 11,779 |   |
| All other loans                                         |   |          | 3,734   |   |                   |   | 3,628 |   |
|                                                    |   |          |    |   |                   |   |   |   |
| Total Loans                                             |   |          | 176,760 |   |                   |   | 158,378 |   |
|                                                    |   |          |    |   |                   |   |   |   |
| Less allowance for loan losses                          |   |          | 1,372   |   |                   |   | 1,396 |   |
|                                                    |   |          |    |   |                   |   |   |   |
| Net Loans Receivable                                    |   | $             | 175,388 |   |                   | $      | 156,982 |   |

----

| ALLEGHENY BANCSHARES, INC.    |
|-------------------------------|
| NOTES TO FINANCIAL STATEMENTS |

|                                    |   | Six Months Ended |   |
|-----------------------------------------|--------|------------------|--------|
|                                    |   | June 31,         |   |
|                                    |   | 2009             |   |   | 2008 |   |
| Balance, beginning of period            |   |             | 1,396  |   |   | $ | 1,186 |   |
| Provision charged to operating expenses |   |             | 168    |   |   |   | 135 |   |
| Recoveries of loans charged off         |   |             | 50     |   |   |   | 57 |   |
| Loans charged off                       |   |             | (242   | ) |   |   | (59 | ) |
|                                    |   |             |   |   |   |   |   |   |
| Balance, end of period                  |   |             | 1,372  |   |   | $ | 1,319 |   |

----

| ALLEGHENY BANCSHARES, INC.    |
|-------------------------------|
| NOTES TO FINANCIAL STATEMENTS |

|                                                       |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total  |   |
|------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
| Assets recorded at fair value on a recurring basis:        |   |    |   |   |    |   |   |    |   |   |   |   |
|                                                       |   |    |   |   |    |   |   |    |   |   |   |   |
|    Investment securities available for sale |   | $       | -      |   |    | $      | 26,898 |    |   | $      | -      |   |   | $ | 26,898 |   |
|    Restricted equity securities             |   |    | -      |   |    |   | 748    |    |   |   | -      |   |   |   | 748 |   |
| Total                                                      |   | $       | -      |   |    | $      | 27,646 |    |   | $      | -      |   |   | $ | 27,646 |   |
|                                                       |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
| Assets recorded at fair value on a non recurring basis:    |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
|                                                       |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |   |
|    Impaired Loans                           |   | $       | -      |   |    | $      | -      |    |   | $      | 852    |   |   | $ | 852 |   |
|    Goodwill                                 |   |    | -      |   |    |   | -      |    |   |   | 1,056  |   |   |   | 1,056 |   |
|    Other real estate owned                  |   |    | -      |   |    |   | -      |    |   |   | 508    |   |   |   | 508 |   |
| Total                                                      |   | $       | -      |   |    | $      | -      |    |   | $      | 2,416  |   |   | $ | 2,416 |   |

----

| ALLEGHENY BANCSHARES, INC.    |
|-------------------------------|
| NOTES TO FINANCIAL STATEMENTS |

----

Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations 

| ·   | General economic conditions, either nationally or within the Company’s markets, could be less favorable than expected; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes in market interest rates could affect interest margins and profitability; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Competitive pressures could be greater than anticipated; and |
|--------------------|--------------------------------------------------------------|

| ·   | Legal or accounting changes could affect the Company’s results. |
|--------------------|-----------------------------------------------------------------------|

----

----

|                                                   |   | Six Months Ended |    |   | Six Months Ended |   |
|--------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
|                                                   |   | June 30, 2009    |    |   | June 30, 2008    |   |
|                                                   |   | AverageBalance   |    |   | Income/Expense   |   |   | Rates |   |   | AverageBalance |   |   | Income/Expense |   |   | Rates |   |
|                                                   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income                                        |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Loans 1,2                      |   | $                | 165,764 |   |             | $      | 5,610 |   |   |   | 6.77 | % |   | $ | 149,523 |   |   | $ | 5,616 |   |   |   | 7.51 | % |
|     Federal funds sold             |   |             | 586     |   |             |   | 1 |   |   |   | 0.34 | % |   |   | 1,473 |   |   |   | 25 |   |   |   | 3.39 | % |
|     Interest bearing deposits      |   |             | 5,051   |   |             |   | 42 |   |   |   | 1.66 | % |   |   | 6,322 |   |   |   | 104 |   |   |   | 3.29 | % |
| Investments                                            |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Taxable      |   |             | 11,262  |   |             |   | 213 |   |   |   | 3.78 | % |   |   | 11,979 |   |   |   | 259 |   |   |   | 4.32 | % |
|        Nontaxable 2 |   |             | 16,017  |   |             |   | 463 |   |   |   | 5.78 | % |   |   | 17,963 |   |   |   | 520 |   |   |   | 5.79 | % |
|                                                   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Earning Assets                                   |   |             | 198,680 |   |             |   | 6,329 |   |   |   | 6.37 | % |   |   | 187,260 |   |   |   | 6,524 |   |   |   | 6.97 | % |
|                                                   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                       |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Demand deposits                |   |             | 21,987  |   |             |   | 105 |   |   |   | 0.48 | % |   |   | 15,679 |   |   |   | 87 |   |   |   | 1.10 | % |
|     Savings                        |   |             | 27,608  |   |             |   | 39 |   |   |   | 0.28 | % |   |   | 31,950 |   |   |   | 201 |   |   |   | 1.26 | % |
|     Time deposits                  |   |             | 109,010 |   |             |   | 1,846 |   |   |   | 3.39 | % |   |   | 96,417 |   |   |   | 2,128 |   |   |   | 4.41 | % |
|     Short-term borrowings          |   |             | 1,562   |   |             |   | 1 |   |   |   | 0.13 | % |   |   | 1,603 |   |   |   | 15 |   |   |   | 1.87 | % |
|     Long-term debt                 |   |             | 6,372   |   |             |   | 144 |   |   |   | 4.52 | % |   |   | 7,488 |   |   |   | 180 |   |   |   | 4.81 | % |
|                                                   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total Interest Bearing         |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Liabilities  |   | $                | 166,539 |   |             | $      | 2,135 |   |   |   | 2.56 | % |   | $ | 153,137 |   |   | $ | 2,611 |   |   |   | 3.41 | % |
|                                                   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net Interest Margin 1          |   |             |    |   |             |   | 4,194 |   |   |   |   |   |   |   |   |   |   |   | 3,913 |   |   |   |   |   |
|                                                   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Yield on Interest                                  |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Earning Assets                 |   |             |    |   |             |   |   |   |   |   | 4.22 | % |   |   |   |   |   |   |   |   |   |   | 4.18 | % |

| 1 | Interest on loans includes loan fees                                           |
|---|--------------------------------------------------------------------------------|
| 2 | An incremental tax rate of 34% was used to calculate the tax equivalent income |

----

|                             |   |   | June 30, 2009 |   |   | December 31, 2008 |   |
|----------------------------------|--------|--------|---------------|--------|--------|------------------------|--------|
| Nonaccrual loans                 |   |   | $             | 56     |   |                   | $      | 659 |   |
| Restructured loans               |   |   |          | 136    |   |                   |   | 139 |   |
| Loans delinquent 90 days or more |   |   |          | 1,269  |   |                   |   | 1,034 |   |
|                             |   |   |          |   |   |                   |   |   |   |
|   Total Nonperforming Loans |   | $      | 1,461         |   |   |                   | 1,832  |   |

----

----

|                                      |   | 0-3Months |    |   | 4-12Months |   |    | 1-5Years |   |   | Over 5Years |   |   | Total  |   |
|-------------------------------------------|--------|-----------|---------|--------|------------|--------|---------|----------|--------|--------|-------------|--------|--------|--------|--------|
| Uses of Funds:                            |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |
| Loans                                     |   |      | 20,937  |   |       |   | 26,906  |     |   |   | 57,973      |   |   |   | 70,944 |   |   |   | 176,760 |   |
| Federal funds sold                        |   |      | 2,000   |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   | 2,000 |   |
| Interest bearing deposits                 |   |      | 1,882   |   |       |   | 3,431   |     |   |   | 514         |   |   |   |   |   |   |   | 5,827 |   |
| Investment securities                     |   |      | 1,494   |   |       |   | 7,546   |     |   |   | 9,175       |   |   |   | 8,683  |   |   |   | 26,898 |   |
| Restricted Investments                    |   |      |    |   |       |   |    |     |   |   |        |   |   |   | 747    |   |   |   | 747 |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Total                                     |   |      | 26,313  |   |       |   | 37,883  |     |   |   | 67,662      |   |   |   | 80,374 |   |   |   | 212,232 |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Sources of Funds:                         |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Deposits:                                 |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Interest bearing demand                   |   |      | 26,942  |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   | 26,942 |   |
| Savings                                   |   |      | 27,681  |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   | 27,681 |   |
| Time deposits over $100,000               |   |      | 7,375   |   |       |   | 17,347  |     |   |   | 13,325      |   |   |   |   |   |   |   | 38,047 |   |
| Other time deposits                       |   |      | 17,685  |   |       |   | 32,441  |     |   |   | 32,026      |   |   |   | 591    |   |   |   | 82,743 |   |
| Short-term borrowings                     |   |      | 1,489   |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   | 1,489 |   |
| Long-term debt                            |   |      | 57      |   |       |   | 1,174   |     |   |   | 1,648       |   |   |   | 2,930  |   |   |   | 5,809 |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Total                                     |   |      | 81,229  |   |       |   | 50,962  |     |   |   | 46,999      |   |   |   | 3,521  |   |   |   | 182,711 |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Discrete Gap                              |   |      | (54,916 | )      |       |   | (13,079 | )        |   |   | 20,63       |   |   |   | 76,853 |   |   |   |   |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Cumulative Gap                            |   |      | (54,916 | )      |       |   | (67,995 | )        |   |   | (47,332     | )      |   |   | 29,521 |   |   |   |   |   |
|                                      |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
| Ratio of Cumulative Gap                   |   |      |    |   |       |   |    |     |   |   |        |   |   |   |   |   |   |   |   |   |
|    To Total Earning Assets |   |      | -25.88  | %      |       |   | -32.04  | %        |   |   | -22.30      | %      |   |   | 13.91  | % |   |   |   |   |

Item 3. Quantitative and Qualitative Disclosures about Market Risk 

----

Item 4T.  Controls and Procedures 

Part II. Other Information 

Item 1. Legal Proceedings –  Not Applicable 

Item 2. Changes in Securities – 

| Date           | Total Number Of Shares Purchased | Average Price Per Share |
|----------------|----------------------------------|-------------------------|
|           |                             |                    |
| March 03, 2009 | 500                              | $60.00                  |
| March 11, 2009 | 500                              | $60.00                  |
| June 11, 2009  | 224                              | $65.00                  |

Item 3. Defaults Upon Senior Securities –  Not Applicable 

Item 4. Submission of Matters to a Vote of Security Holders – 

----

Item 5. Other Information –  Not Applicable 

  

| No.    |   | Description                                                                                                                                                                                      |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                             |
| 31.1   |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith).                                                                                                            |
|   |   |                                                                                                                                                                                             |
| 31.2   |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith).                                                                                                            |
|   |   |                                                                                                                                                                                             |
| 32     |   | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |

| No.    |   | Description                                                  |   | Exhibit Number |
|--------|--------|--------------------------------------------------------------|--------|----------------|
|   |   |                                                         |   |           |
| 3.1    |   | Articles of Incorporation – Allegheny Bancshares, Inc. |   | E2             |

| No.    |   | Description                          |   | Exhibit Number |
|--------|--------|--------------------------------------|--------|----------------|
|   |   |                                 |   |           |
| 3.3    |   | Bylaws of Allegheny Bancshares, Inc. |   | 3.3            |

----

SIGNATURE

|   |   | ALLEGHENY BANCSHARES, INC. |
|--------|--------|----------------------------|
|   |   |                       |
|   |   | By:                        | /s/ William A. Loving, Jr. |
|   |   | Name:                      | William A. Loving, Jr. |
|   |   | Title:                     | Executive Vice President and Chief Executive Officer |

|   |   | By:    | /s/ L. Kirk Billingsley                           |
|--------|--------|--------|---------------------------------------------------|
|   |   | Name:  | L. Kirk Billingsley                               |
|   |   | Title: | Senior Vice President and Chief Financial Officer |

----