PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
MARIETTA, OHIO
FINANCIAL STATEMENTS
DECEMBER 31, 1997
INDEPENDENT AUDITORS' REPORT
To the Plan Administrative Committee
Peoples Bancorp Inc. Retirement Savings Plan
Marietta, Ohio
We have audited the accompanying statements of net assets
available for benefits with fund information of Peoples Bancorp Inc.
Retirement Savings Plan as of December 31, 1997 and 1996, and the
related statements of changes in net assets available for benefits
with fund information for the years then ended. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets available for
benefits with fund information of Peoples Bancorp Inc. Retirement
Savings Plan as of December 31, 1997 and 1996, and the changes in net
assets available for benefits with fund information for the years then
ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an
opinion on the basic financial statements taken as a whole. The
supplemental information included in Schedule G - Financial Schedules
(IRS Form 5500) is presented for the purpose of additional analysis
and is not a required part of the basic financial statements but is
supplementary information required by the Department of Labor's Rules
and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental information
has been subjected to the auditing procedures applied in the audits of
the basic financial statements and, in our opinion, is fairly stated
in all material respects in relation to the basic financial statements
taken as a whole.
/s/ HARMAN, THOMPSON, MALLORY & ICE, A.C.
Harman, Thompson, Mallory & Ice, A.C.
Certified Public Accountants
Parkersburg, West Virginia
March 30, 1998
<TABLE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
STATEMENT I
====================
DECEMBER 31, 1997
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES PEOPLES PEOPLES
PEOPLES CERTIFICATES BANCORP INC. SPECIAL VANGUARD
EQUITY OF DEPOSIT COMMON STOCK STOCK ACORN 500
FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Money Market Funds
Fidelity U. S. Treasury Income
Portfolio Fund $ 6,200 $ 3,300 $ 10,900 $ 5,900 $ 32,400 $ 8,000 $ 1,600 $ 68,300
Investments, at Fair Value
Peoples Certificates of Deposit 396,604 396,604
Shares of Common/Collective Trusts:
Peoples Stock Fund EB 1,288,466 1,288,466
Peoples Special Stock Fund EB 416,480 416,480
Shares of Registered Investment Companies:
Acorn Fund 334,943 334,943
Vanguard 500 Fund 459,462 459,462
Peoples Bancorp Inc. Common Stock 5,420,027 5,420,027
Participant Loans Receivable 143,618 143,618
---------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL INVESTMENTS $1,294,666 $399,904 $5,430,927 $422,380 $367,343 $467,462 $145,218 $8,527,900
---------- -------- ---------- -------- -------- -------- -------- ----------
Cash, Non-Interest Bearing $ 48 $ 487 $ 92 $ 95 $ 23 $ 83 $ 46 $ 874
---------- -------- ---------- -------- -------- -------- -------- ----------
Receivables:
Employer's Contribution $ 414 $ 186 $ 1,811 $ 288 $ 380 $ 399 $ 0 $ 3,478
Participants' Contribution 1,924 692 7,525 1,564 1,887 1,904 0 15,496
Interest and Dividends 4,988 3,082 24,667 3,065 46 13 533 36,394
Interfund Transfers Pending 305 72 1,154 116 222 189 (2,058) 0
---------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL RECEIVABLES $ 7,631 $ 4,032 $ 35,157 $ 5,033 $ 2,535 $ 2,505 $ (1,525) $ 55,368
---------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL ASSETS $1,302,345 $404,423 $5,466,176 $427,508 $369,901 $470,050 $143,739 $8,584,142
---------- -------- ---------- -------- -------- -------- -------- ----------
LIABILITIES
Excess Contribution Payable $ 1,666 $ 144 $ 10,502 $ 271 $ 176 $ 143 $ 1,304 $ 14,206
---------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL LIABILITIES $ 1,666 $ 144 $ 10,502 $ 271 $ 176 $ 143 $ 1,304 $ 14,206
---------- -------- ---------- -------- -------- -------- -------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $1,300,679 $404,279 $5,455,674 $427,237 $369,725 $469,907 $142,435 $8,569,936
========== ======== ========== ======== ======== ======== ======== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1996
STATEMENT II
====================
DECEMBER 31, 1996
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES PEOPLES PEOPLES
PEOPLES CERTIFICATES BANCORP INC. SPECIAL VANGUARD
EQUITY OF DEPOSIT COMMON STOCK STOCK ACORN 500
FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Money Market Funds
Fidelity U. S. Treasury Income
Portfolio Fund $ 7,000 $ 5,700 $ 10,300 $ 4,900 $ 24,700 $ 6,400 $ 9,800 $ 68,800
Investments, at Fair Value
Peoples Certificates of Deposit 346,804 346,804
Shares of Common/Collective Trusts:
Peoples Stock Fund EB 907,985 907,985
Peoples Special Stock Fund EB 329,366 329,366
Shares of Registered Investment Companies:
Acorn Fund 247,838 247,838
Vanguard 500 Fund 292,442 292,442
Peoples Bancorp Inc. Common Stock 3,214,689 3,214,689
Participant Loans Receivable 145,955 145,955
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL INVESTMENTS $914,985 $352,504 $3,224,989 $334,266 $272,538 $298,842 $155,755 $5,553,879
-------- -------- ---------- -------- -------- -------- -------- ----------
Cash, Non-Interest Bearing $ 95 $ 398 $ 60 $ 30 $ 42 $ 1 $ 4 $ 630
-------- -------- ---------- -------- -------- -------- -------- ----------
Receivables:
Employer's Contribution $ 544 $ 233 $ 1,652 $ 337 $ 376 $ 363 $ $ 3,505
Participants' Contribution 2,111 779 5,815 1,313 1,676 1,759 13,453
Interest and Dividends 4,292 2,345 20,619 4,259 72 19 483 32,089
Interfund Transfers Pending 733 214 2,721 303 758 5,272 (10,001) 0
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL RECEIVABLES $ 7,680 $ 3,571 $ 30,807 $ 6,212 $ 2,882 $ 7,413 $ (9,518) $ 49,047
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL ASSETS $922,760 $356,473 $3,255,856 $340,508 $275,462 $306,256 $146,241 $5,603,556
-------- -------- ---------- -------- -------- -------- -------- ----------
LIABILITIES
Excess Contribution Payable $ $ $ $ $ $ $ 1,304 $ 1,304
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL LIABILITIES $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,304 $ 1,304
-------- -------- ---------- -------- -------- -------- -------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $922,760 $356,473 $3,255,856 $340,508 $275,462 $306,256 $144,937 $5,602,252
======== ======== ========== ======== ======== ======== ======== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
STATEMENT III
====================
DECEMBER 31, 1997
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES PEOPLES PEOPLES
PEOPLES CERTIFICATES BANCORP INC. SPECIAL VANGUARD
EQUITY OF DEPOSIT COMMON STOCK STOCK ACORN 500
FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Additions to Net Assets Attributed To:
Investment Income:
Net Appreciation (Depreciation)
in Fair Value of Investments $317,016 $ $1,886,677 $ 46,760 $ 37,584 $ 97,549 $ $2,385,586
Interest 457 21,608 873 251 196 122 14,990 38,497
Dividends 21,250 90,593 7,175 34,544 9,433 162,995
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL INVESTMENT INCOME $338,723 $ 21,608 $1,978,143 $ 54,186 $ 72,324 $107,104 $ 14,990 $2,587,078
-------- -------- ---------- -------- -------- -------- -------- ----------
Contributions:
Participants' $ 52,454 $ 18,513 $ 177,869 $ 40,322 $ 56,163 $ 55,801 $ $ 401,122
Employer's 11,144 4,988 43,778 7,591 10,498 10,364 88,363
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL CONTRIBUTIONS $ 63,598 $ 23,501 $ 221,647 $ 47,913 $ 66,661 $ 66,165 $ 0 $ 489,485
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL ADDITIONS $402,321 $ 45,109 $2,199,790 $102,099 $138,895 $173,269 $ 14,990 $3,076,563
-------- -------- ---------- -------- -------- -------- -------- ----------
DEDUCTIONS
Deductions from Net Assets Attributed To:
Benefits Paid to Participants $ 12,364 $ 1,944 $ 44,713 $ 6,894 $ 20,559 $ 22,405 $ $ 108,879
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL DEDUCTIONS $ 12,364 $ 1,944 $ 44,713 $ 6,894 $ 20,559 $ 22,405 $ 0 $ 108,879
-------- -------- ---------- -------- -------- -------- -------- ----------
Net Increase Prior to Interfund
Transfers $389,957 $ 43,165 $2,155,077 $ 95,205 $118,426 $150,864 $ 14,990 $2,967,684
Interfund Transfers (12,038) 4,641 44,741 (8,476) (24,163) 12,787 (17,492) 0
-------- -------- ---------- -------- -------- -------- -------- ----------
NET INCREASE (DECREASE) $377,919 $ 47,806 $2,199,818 $ 86,729 $ 94,263 $163,651 $ (2,502) $2,967,684
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of Year 922,760 356,473 3,255,856 340,508 275,462 306,256 144,937 5,602,252
-------- -------- ---------- -------- -------- -------- -------- ----------
END OF YEAR $1,300,679 $404,279 $5,455,674 $427,237 $369,725 $469,907 $142,435 $8,569,936
========= ======== ========== ======== ======== ======== ======== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1996
STATEMENT IV
====================
DECEMBER 31, 1996
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES PEOPLES PEOPLES
PEOPLES CERTIFICATES BANCORP INC. SPECIAL VANGUARD
EQUITY OF DEPOSIT COMMON STOCK STOCK ACORN 500
FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Additions to Net Assets Attributed To:
Investment Income:
Net Appreciation (Depreciation)
in Fair Value of Investments $148,766 $ $ 606,012 $ 44,369 $ (987) $ 28,529 $ $ 826,689
Interest 833 20,598 926 251 420 492 13,761 37,281
Dividends 17,542 78,689 5,912 23,545 5,265 130,953
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL INVESTMENT INCOME $167,141 $ 20,598 $ 685,627 $ 50,532 $ 22,978 $ 34,286 $ 13,761 $ 994,923
-------- -------- ---------- -------- -------- -------- -------- ----------
Contributions:
Participants' $ 67,873 $ 32,742 $ 175,230 $ 37,977 $102,268 $ 88,567 $ $ 504,657
Employer's 12,693 5,426 38,210 6,572 7,898 7,875 78,674
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL CONTRIBUTIONS $ 80,566 $ 38,168 $ 213,440 $ 44,549 $110,166 $ 96,442 $ 0 $ 583,331
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL ADDITIONS $247,707 $ 58,766 $ 899,067 $ 95,081 $133,144 $130,728 $ 13,761 $1,578,254
-------- -------- ---------- -------- -------- -------- -------- ----------
DEDUCTIONS
Deductions from Net Assets Attributed To:
Benefits Paid to Participants $ 21,071 $ 21,103 $ 94,893 $ 3,466 $ 1,744 $ 7,960 $ 3,808 $ 154,045
-------- -------- ---------- -------- -------- -------- -------- ----------
TOTAL DEDUCTIONS $ 21,071 $ 21,103 $ 94,893 $ 3,466 $ 1,744 $ 7,960 $ 3,808 $ 154,045
-------- -------- ---------- -------- -------- -------- -------- ----------
Net Increase Prior to Interfund
Transfers $226,636 $ 37,663 $ 804,174 $ 91,615 $131,400 $122,768 $ 9,953 $1,424,209
Interfund Transfers 20,293 (34,344) (288,242) 28,371 101,138 130,782 42,002 0
-------- -------- ---------- -------- -------- -------- -------- ----------
NET INCREASE (DECREASE) $246,929 $ 3,319 $ 515,932 $119,986 $232,538 $253,550 $ 51,955 $1,424,209
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of Year 675,831 353,154 2,739,924 220,522 42,924 52,706 92,982 4,178,043
-------- -------- ---------- -------- -------- -------- -------- ----------
END OF YEAR $922,760 $356,473 $3,255,856 $340,508 $275,462 $306,256 $144,937 $5,602,252
======== ======== ========== ======== ======== ======== ======== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1: DESCRIPTION OF PLAN
=============================
The following brief description of Peoples Bancorp Inc.
Retirement Savings Plan (the Plan) provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
General
- -------
The Plan is a defined contribution plan covering
substantially all employees of Peoples Bancorp Inc. and its
Subsidiaries (The Peoples Banking and Trust Company, The First
National Bank of Southeastern Ohio, and The Russell Federal Savings
Bank). The Plan is a qualified trust under Sections 401(a) and 401(k)
of the Internal Revenue Code. The Plan is subject to the provisions
of ERISA. The Trustee of the Plan is The Peoples Banking and Trust
Company.
Eligibility
- -----------
Employees are eligible to participate in the Plan if they
work 1,000 hours or more during the year, beginning the first calendar
quarter after employment full time or upon reaching 1,000 hours part
time. Employees may join the Plan on any calendar quarter January 1,
April 1, July 1, or October 1.
Contributions
- -------------
Participants may elect to contribute up to 15% of pretax
annual compensation and an additional 10% of after tax annual
compensation. Participants may also directly rollover amounts
representing distributions from other qualified plans. In addition,
Peoples Bancorp Inc. or its Subsidiaries will make a matching
contribution on the employee's behalf. The amount of this matching
contribution will be determined each year by the Employer's Board of
Directors. For 1997 and 1996, the Employer's matching was 50% of the
employee's contribution, up to a maximum of 3% of the employee's
annual compensation.
Participant Accounts
- --------------------
Each participant's account is credited with the
participant's contribution and allocations of the Employer's matching
contribution and Plan earnings. Allocations are based on
participants' earnings or account balances, as defined. The benefit
to which a participant is entitled is the benefit that can be provided
from the participant's account.
Vesting
- -------
Participants are immediately fully vested in their voluntary
contributions, the Employer's matching contributions, and actual
earnings thereon.
Investment Options
- ------------------
Upon enrollment in the Plan, a participant may direct
contributions into any of six investment options.
- The Peoples Equity Fund is a common stock fund
which consists of a diversified portfolio of high-
quality common stocks.
- The Peoples Certificate of Deposit Fund is a
fixed income fund which consists of investments
in deposit instruments of The Peoples Banking and
Trust Company.
- The Peoples Bancorp Inc. Stock Fund consists
of common shares of Peoples Bancorp Inc. If the
participant invests in common shares of the Employer,
the participant is entitled to vote proxies
representing Employer common shares equal to the
number of whole common shares in the participant's
account and, when entitled to a distribution, may
elect to receive common shares instead of cash.
- The Peoples Special Stock Fund is a common stock
fund which consists of a diversified portfolio of
small company common stocks and common stock mutual
funds.
- The Acorn Fund is a common stock fund managed by
Wanger Asset Management, L.P. which consists of a
diversified portfolio of common stocks of small and
medium sized companies in the United States and
overseas.
- The Vanguard S&P 500 Index Fund is a common stock
fund managed by the Vanguard Group of Investment
Companies which consists of a diversified portfolio
of common stocks of large companies in the United
States.
Participants may change their investment options quarterly.
Participant Loans Receivable
- ----------------------------
Participants may apply for a loan from their account under
the Plan. Certain legal restrictions impose limits on the amount of
the loan and repayment terms. The minimum loan amount is $1,000 and
the maximum loan amount is $50,000. The specific limit for any
participant is 50% of their account balance. If a participant has an
existing loan at the time of application, the $50,000 limit is reduced
by the highest outstanding balance of the participant's loan over the
previous twelve-month period or the total of all outstanding loans the
day the new loan is granted. Generally, the participant's loan must be
repaid within five years, unless the proceeds are used to purchase a
principal residence.
Payment of Benefits
- -------------------
The participant's benefit will equal the sum of the salary
deferral, the voluntary nondeductible contribution, the rollover
contribution, and the Employer's matching contribution plus net income
and net losses resulting from the investment of these amounts as
valued on the valuation date as defined. Payment of such amounts upon
termination of employment may be deferred until the participant
reaches normal retirement, becomes eligible for early retirement
benefits, terminates employment prior to retirement, becomes disabled,
or dies. If the benefit is $3,500 or less, the benefit will be paid
in a lump-sum payment. If the benefit exceeds $3,500, the participant
may elect to have benefits paid in a lump-sum payment or in equal
installments over a fixed period of time not to exceed ten years.
If a participant dies without a surviving spouse, either
before or after retirement, but before a complete distribution of
their accounts, then the full value of the participant's accounts will
be paid to a designated beneficiary. If a participant dies with a
surviving spouse, either before or after retirement, but before a
complete distribution of their accounts, then the full value of the
participant's accounts will be paid to the surviving spouse.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
====================================================
Basis of Accounting
- -------------------
The financial statements of the Plan are prepared using the
accrual method of accounting.
Estimates
- ---------
The preparation of financial statements in conformity with
generally accepted accounting principles requires the plan
administrator to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results may
differ from those estimates.
Investment Valuation and Income Recognition
- -------------------------------------------
Shares of the common/collective trusts, Peoples Stock Fund
EB and Peoples Special Stock Fund EB, are valued at the Plan's
proportionate share of net shares of the fund as of the most recent
valuation date.
Shares of the registered investment companies, Acorn Fund
and Vanguard 500 Fund, are valued at quoted market prices which
represent the net asset value of shares held by the Plan at year end.
Investment in Peoples Bancorp Inc. common stock is carried
at quoted market prices.
Investment Valuation and Income Recognition (Continued)
- --------------------------------------------------------
The investment in The Peoples Banking and Trust Company
certificates of deposit and the participant loans are recorded at cost
which approximates fair market value.
Dividends and interest received from investments are
recorded as earned on an accrual basis.
The Plan presents in the Statement of Changes in Net Assets
Available for Benefits the net appreciation (depreciation) in the fair
value of its investments which consists of the realized gains or
losses and the unrealized appreciation (depreciation) on those
investments.
Payment of Benefits
- -------------------
Benefits are recorded when paid.
NOTE 3: INVESTMENTS
=====================
The Plan's investments are held by a bank-administered trust
fund. The following table presents the fair values of investments.
Investments that represent 5% or more of the Plan's net assets are
identified with an asterisk.
DECEMBER 31,
1997 1996
----------------------------------------------
UNITS FAIR VALUE UNITS FAIR VALUE
INVESTMENTS AT FAIR VALUE AS
DETERMINED BY QUOTED MARKET PRICE
Fidelity U.S. Treasury
Income Portfolio Fund 68,300 $ 68,300 68,800 $ 68,800
* Acorn Fund 19,714.141 334,943 16,478.620 247,838
* Vanguard 500 Fund 5,101.162 459,462 4,228.481 292,442
* Peoples Bancorp Inc.
Common Stock 129,821 5,420,027 121,309 3,214,689
---------- ----------
$6,282,732 $3,823,769
INVESTMENTS AT ESTIMATED
FAIR VALUE
* Peoples Certificates of
Deposit 396,604 $396,604 346,804 $346,804
* Peoples Stock Fund EB 13,779 1,288,466 12,922 907,985
* Peoples Special Stock
Fund EB 9,904 416,480 8,845 329,366
Participants Loans Receivable 143,618 143,618 145,955 145,955
---------- ----------
$2,245,168 $1,730,110
---------- ----------
TOTAL INVESTMENTS $8,527,900 $5,553,879
========== ==========
The Plan was issued 11,101 shares of Peoples Bancorp Inc.
common stock on July 1, 1996 for a 10% stock dividend.
During 1997, the Plan's investments (including investments
bought, sold, and held during the year) appreciated (depreciated) in
value by $2,385,586 as follows:
1997
APPRECIATION
(DEPRECIATION)
CHANGES IN INVESTMENTS REPORTED AT FAIR
VALUE AS DETERMINED BY QUOTED PRICE
Acorn Fund $ 37,584
Vanguard 500 Fund 97,548
Peoples Bancorp Inc. Common Stock 1,886,677
----------
$2,021,809
----------
CHANGES IN INVESTMENTS REPORTED
AT ESTIMATED FAIR VALUE
Peoples Stock Fund EB $ 317,017
Peoples Special Fund EB 46,760
---------
$ 363,777
---------
NET CHANGE IN FAIR VALUE $2,385,586
==========
NOTE 4: RELATED PARTY TRANSACTIONS
===================================
Certain Plan investments such as certificates of deposit and
shares in the common/collective trusts are managed by The Peoples
Banking and Trust Company, a subsidiary of Peoples Bancorp Inc. The
Peoples Banking and Trust Company is also the trustee as defined by
the Plan and, therefore, these transactions qualify as party-in-
interest.
NOTE 5: PAYMENT OF EXPENSES
============================
The Corporation elected to pay all the administrative
expenses and investment costs of the Plan. Should the Corporation
elect not to pay all or part of such expenses, the Trustee then pays
these expenses from the Plan.
NOTE 6: PLAN TERMINATION
=========================
Although it has not expressed any intent to do so, Peoples
Bancorp Inc. has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan subject to the
provisions of ERISA. In the event of Plan termination, participants
will become 100% vested in their accounts.
NOTE 7: TAX STATUS
===================
The Internal Revenue Service has determined and informed the
Corporation by letter dated July 25, 1996, stating that the Plan
constitutes a qualified trust under Sections 401(a) and 401(k) of the
Internal Revenue Code and is, therefore, exempt from Federal income
taxes under the provisions of Section 501(a). The Plan has not been
amended since receiving the determination letter. The plan
administrator and the Plan's tax counsel believe that the Plan is
designed and is currently being operated in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
SUPPLEMENTAL INFORMATION
Form 5500 - Schedule G
Department of the Treasury -- Internal Revenue Service
Department of Labor -- Pension and Welfare Benefits Administration
OMB No. 1210-0016
1997
Name of plan sponsor as shown on line 1a of Form 5500
PEOPLES BANCORP INC.
Employer identification number
31-0987416
Name of plan
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN
Three-digit plan number
002
PART I
======
Schedule of Assets Held for Investment Purposes-See Form 5500, Item 27a.
Description of
Identity of investment including
issue, borrower, maturity date, rate of
lessor, or interest, collateral, Current
similar party par or maturity value Cost Value
- ----------------------- --------------------------- ---------- ----------
FIDELITY U.S. TREASURY MONEY MARKET FUND
INCOME PORTFOLIO FUND 68,300 SHARES $ 68,300 $ 68,300
THE PEOPLES BANKING AND CERTIFICATES OF DEPOSIT
TRUST COMPANY 5.00% DUE 02/28/98 53,000 53,000
6.03% DUE 04/11/98 36,000 36,000
5.60% DUE 06/14/98 14,804 14,804
4.95% DUE 08/20/98 32,000 32,000
5.10% DUE 11/05/98 12,000 12,000
5.10% DUE 12/10/98 19,000 19,000
5.60% DUE 12/14/98 13,000 13,000
6.03% DUE 01/04/99 28,000 28,000
6.00% DUE 03/12/99 34,700 34,700
5.05% DUE 04/19/99 10,000 10,000
5.10% DUE 05/07/99 24,000 24,000
6.10% DUE 05/19/99 23,000 23,000
6.10% DUE 06/29/99 26,000 26,000
6.10% DUE 07/05/99 17,000 17,000
5.60% DUE 07/27/99 15,400 15,400
6.10% DUE 08/31/99 16,700 16,700
6.10% DUE 09/14/99 22,000 22,000
PEOPLES STOCK FUND EB COMMON/COLLECTIVE TRUST
13,799 SHARES 652,756 1,288,466
PEOPLES SPECIAL STOCK COMMON/COLLECTIVE TRUST
FUND EB 9,904 SHARES 310,616 416,480
ACORN FUND REGISTERED INVESTMENT
COMPANY
19,714.141 SHARES 306,170 334,943
VANGUARD 500 FUND REGISTERED INVESTMENT
COMPANY
5,101.162 SHARES 336,771 459,462
PEOPLES BANCORP INC. COMMON STOCK
129,821 SHARES 1,830,904 5,420,027
LOANS TO PARTICIPANTS VARIED TERMS THROUGH 2002
VARIED INTEREST RATES
FROM 8.0% - 11.0% 0 143,618
---------- ----------
TOTAL INVESTMENTS $3,902,121 $8,459,600
========== ==========
PART II
=======
Schedule of Assets Held for Investment Purposes That Were Both Acquired
And Disposed of Within The Plan Year - See Form 5500, Items 27a.
NONE
PART III
========
Schedule of Loans or Fixed Income Obligations - See Form 5500, Item 27b
NONE
PART IV
=======
Schedule of Leases in Default or Classified as Uncollectible -
Form 5500, Item 27c.
NONE
PART V
======
Schedule of Reportable Transactions - See Form 5500, Line 27d.
<TABLE>
<CAPTION>
Description of
asset (include Expense Current Value
Identity of interest rate and incurred of asset on
party maturity in case Purchase Selling Lease with Cost of transaction Net gain
involved of a loan) price price rental transaction asset date or (loss)
- ------------- ----------------- --------- --------- ------ ----------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FIDELITY U.S. MONEY MARKET FUND
TREASURY
INCOME NUMBER OF
PORTFOLIO PURCHASES 278 1,526,200 0 1,526,200
FUND NUMBER OF
SALES 167 1,526,700 0 1,526,700 1,526,700 0
PEOPLES COMMON STOCK
BANCORP INC.
NUMBER OF
PURCHASES 20 360,810 0 360,810
NUMBER OF
SALES 4 42,149 0 32,452 42,149 9,697
</TABLE>
PART VI
=======
Schedule of Nonexempt Transactions - See Form 5500, Item 27e.
NONE
PART VII
========
Schedule of Nonexempt Transactions - See Form 5500, Item 27f.
NONE
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
DECEMBER 31, 1997
TABLE OF CONTENTS
STATEMENT PAGE
Independent Auditors' Report 1
Statement of Net Assets Available for Benefits
With Fund Information at December 31, 1997 I 2
Statement of Net Assets Available for Benefits
With Fund Information at December 31, 1996 II 3
Statement of Changes in Net Assets Available for
Benefits With Fund Information for the Year
Ended December 31, 1997 III 4
Statement of Changes in Net Assets Available for
Benefits With Fund Information for the Year
Ended December 31, 1996 IV 5
Notes to Financial Statements 6-11
SUPPLEMENTAL INFORMATION
========================
Form 5500 - Schedule G 13-16
