FORM 11-K
=========
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ____________ to ___________
Commission file number 33-1803
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
Peoples Bancorp Inc. Retirement Savings Plan
B. Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office:
Peoples Bancorp Inc.
138 Putnam Street
P.O. Box 738
Marietta, OH 45750-0738
REQUIRED INFORMATION
====================
The following financial statements and schedules for the
Peoples Bancorp Inc. Retirement Savings Plan is being filed herewith:
Description Page No.
- ---------------------------------------------------- --------
Report of Independent Auditors 1
Audited Financial Statements:
Statements of Net Assets Available for Benefits With 2
Fund Information at December 31, 1998
Statements of Net Assets Available for Benefits With 3
Fund Information at December 31, 1997
Statement of Changes in Net Assets Available for 4
Benefits With Fund Information for the Year
Ended December 31, 1998
Statement of Changes in Net Assets Available for 5
Benefits With Fund Information for the Year Ended
December 31, 1997
Notes to Financial Statements 6-12
SUPPLEMENTAL INFORMATION
- ------------------------
Form 5500 - Schedule G 14-17
Exhibit Index 18
Consent of Independent Auditors 19
The following exhibit is being filed herewith:
Exhibit No. Description Page No.
- ----------- -------------------------------------- --------
1 Consent of:
Harman, Thompson, Mallory, & Ice, A.C. 19
Independent Auditors
SIGNATURES
==========
The Plan. Pursuant to the requirements of the Securities
Exchange Act of 1934, the trustees (or other persons who
administer the employee benefit plan) have duly caused this
annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
Date: June 11, 1999 By: /s/ ROBERT E. EVANS
Robert E. Evans
President and Chief Executive Officer
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
DECEMBER 31, 1998
TABLE OF CONTENTS
=================
STATEMENT PAGE NO.
Independent Auditors' Report 1
Statement of Net Assets Available for Benefits
With Fund Information at December 31, 1998 I 2
Statement of Net Assets Available for Benefits
With Fund Information at December 31, 1997 II 3
Statement of Changes in Net Assets Available for
Benefits With Fund Information for the Year
Ended December 31, 1998 III 4
Statement of Changes in Net Assets Available for
Benefits With Fund Information for the Year
Ended December 31, 1997 IV 5
Notes to Financial Statements 6-12
SUPPLEMENTAL INFORMATION
========================
Form 5500 - Schedule G 14-17
Exhibit Index 18
Consent of Independent Auditors 19
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, 1998 and 1997, 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, 1998 and 1997, 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.
Independent Auditors
Parkersburg, West Virginia
May 5, 1999
<TABLE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
====================================================================
DECEMBER 31, 1998
STATEMENT I
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES
PEOPLES BANCORP
CERTIFICATES INC. PEOPLES VANGUARD
PEOPLES OF COMMON SPECIAL VANGUARD ASSET TEMPLETON BANK
EQUITY DEPOSIT STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE
FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Money Market Funds
Fidelity U. S.
Treasury Income
Portfolio Fund $ 61,840 $ 44,940 $ 61,570 $ 28,860 $ $ 2,160 $ 1,850 $ $ $ 450 $ 201,670
Investments, at
Fair Value
Peoples Certificates
of Deposit 424,404 424,404
Shares of Common/
Collective Trusts:
Peoples Stock 1,570,703 1,570,703
Fund EB
Peoples Special Stock
Fund EB 482,901 482,901
Shares of Registered
Investment Companies:
Acorn Fund 483,233 483,233
Templeton Foreign Fund 27,751 27,751
Vanguard 500 Index Fund 802,784 802,784
Vanguard Asset Allocation
Fund 194,336 194,336
Common stock:
Bank One Corporation 390,530 390,530
Peoples Bancorp Inc. 4,973,585 4,973,585
Participant Loans
Receivable 279,854 279,854
---------- -------- ---------- --------- -------- -------- -------- -------- -------- -------- ---------
TOTAL INVESTMENTS $1,632,543 $469,344 $5,035,155 $ 511,761 $483,233 $804,944 $196,186 $ 27,751 $390,530 $280,304 $9,831,751
---------- -------- ---------- --------- -------- -------- -------- -------- -------- -------- ----------
Cash, Non-Interest
Bearing $ 2 $ 406 $ 1 $ 2 $ -0- $ 3 $ 4 $ -0- $ -0- $ 25,005 $ 25,423
---------- -------- ---------- --------- -------- -------- -------- --------- -------- -------- ----------
Receivables:
Rollover Contribution $ $ $ $ $ $ $ $ $ $ 24,201 $ 24,201
Interest and Dividends 3,987 1,704 28,533 2,483 28 81 39 8 640 37,503
Interfund Transfers
Pending (369) 1,758 13,286 1,245 2,044 4,168 1,492 257 34 (23,915) -0-
---------- -------- ---------- --------- -------- -------- -------- -------- -------- -------- ----------
TOTAL RECEIVABLES $ 3,618 $ 3,462 $ 41,819 $ 3,728 $ 2,072 $ 4,249 $ 1,531 $ 265 $ 34 $ 926 $ 61,704
---------- -------- ---------- --------- -------- -------- -------- -------- -------- -------- ----------
TOTAL ASSETS $1,636,163 $473,212 $5,076,975 $ 515,491 $485,305 $809,196 $197,721 $ 28,016 $390,564 $306,235 $9,918,878
---------- -------- ---------- --------- -------- -------- -------- -------- -------- -------- ----------
LIABILITIES
Excess Contribution
Payable $ 166 $ 80 $ 8,362 $ 1,072 $ 497 $ 877 $ 18 $ 712 $ $ 1,304 $ 13,088
---------- -------- ---------- --------- -------- -------- -------- -------- -------- -------- ----------
TOTAL LIABILITIES $ 166 $ 80 $ 8,362 $ 1,072 $ 497 877 $ 18 $ 712 $ -0- $ 1,304 $ 13,088
---------- -------- ---------- --------- -------- -------- -------- -------- -------- -------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $1,635,997 $473,132 $5,068,613 $ 514,419 $484,808 $808,319 $197,703 $ 27,304 $390,564 $304,931 $9,905,790
========== ======== ========== ========= ======== ======== ======== ======== ======== ======== ==========
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, 1997
STATEMENT II
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES PEOPLES PEOPLES VANGUARD
PEOPLES CERTIFICATES BANCORP INC. SPECIAL VANGUARD ASSET TEMPLETON BANK
EQUITY OF DEPOSIT COMMON STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE
FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <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 1,288,466 1,288,466
Fund EB
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 $ -0- $ -0- $ -0- $145,218 $8,527,900
---------- -------- ---------- -------- -------- -------- ------- -------- -------- -------- ----------
Cash, Non-Interest
Bearing $ 48 $ 487 $ 92 $ 95 $ 23 $ 83 $ -0- $ -0- $ -0- 46 $ 874
---------- -------- ---------- -------- -------- -------- ------- -------- -------- -------- ----------
Receivables:
Employer's $ 414 $ 186 $ 1,811 $ 288 $ 380 $ 399 $ $ $ $ $ 3,478
Contributinon
Participants 1,924 692 7,525 1,564 1,887 1,904 15,496
Contribution
Interest and Dividends 4,988 3,082 24,667 3,065 46 13 533 36,394
Interfund Transfers 305 72 1,154 116 222 189 (2,058) -0-
Pending
---------- -------- ---------- -------- -------- -------- ------- -------- -------- -------- ----------
TOTAL RECEIVABLES $ 7,631 $ 4,032 $ 35,157 $ 5,033 $ 2,535 $ 2,505 $ -0- $ -0- $ -0- (1,525) $ 55,368
---------- -------- ---------- -------- -------- -------- ------- -------- -------- -------- ----------
TOTAL ASSETS $1,302,345 $404,423 $5,466,176 $427,508 $369,901 $470,050 $ -0- -0- -0- 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 $ $ -0- $ -0- $ 1,304 $ 14,206
---------- -------- ---------- -------- -------- -------- ------- --------- -------- -------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $1,300,679 $404,279 $5,455,674 $427,237 $369,725 $469,907 $ -0- $ -0- $ -0- $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, 1998
STATEMENT III
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES
BANCORP
CEFTIFICATES INC. PEOPLES PEOPLES VANGUARD
PEOPLES OF COMMON SPECIAL VANGUARD ASSET TEMPLETON BANK
EQUITY DEPOSIT STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE
FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <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 $ 283,184 $ $(719,770) $ 30,145 $ 8,962 $ 139,956 $ 6,664 $(3,876) $ (3,342) $ $ (258,077)
Interest 545 24,040 614 426 132 179 131 81 19,360 45,508
Dividends 21,063 104,899 7,453 26,794 10,172 11,147 1,776 183,304
---------- -------- --------- -------- -------- --------- -------- ------- -------- -------- ----------
TOTAL
INVESTMENT INCOME $ 304,792 $ 24,040 $(614,257) $ 38,024 $ 35,888 $ 150,307 $ 17,942 $(2,019) $ (3,342) $ 19,360 $ (29,265)
---------- -------- --------- -------- ------- --------- -------- ------- -------- -------- ----------
Contributions:
Participants' $ 53,328 $ 30,530 $ 196,282 $ 34,301 $ 45,107 $ 59,621 $ 16,761 $ 7,119 $ $ $ 443,049
Employer's 11,541 7,343 47,953 7,163 9,679 13,433 2,652 1,548 101,312
Rollovers 90,182 37,628 261,896 70,126 65,351 150,234 61,058 8,673 393,906 24,201 1,163,255
---------- -------- --------- -------- -------- --------- -------- ------- -------- -------- ----------
TOTAL CONTRIBUTIONS $ 155,051 $ 75,501 $ 506,131 $111,590 $120,137 $ 223,288 $ 80,471 $17,340 $393,906 $ 24,201 $1,707,616
---------- -------- --------- -------- -------- --------- -------- ------- -------- -------- ----------
TOTAL ADDITIONS $ 459,843 $ 99,541 $(108,126) $149,614 $156,025 $ 373,595 $ 98,413 $15,321 $390,564 $ 43,561 $1,678,351
---------- -------- --------- -------- -------- --------- -------- ------- -------- -------- ----------
DEDUCTIONS
Deductions from Net
Assets Attributed To:
Benefits Paid to
Participants $ 52,931 $ 41,108 $ 166,723 $ 17,022 $ 21,546 $ 28,459 $ $ $ $ 14,708 $ 342,497
---------- -------- --------- -------- -------- --------- -------- ------- -------- -------- ----------
TOTAL DEDUCTIONS $ 52,931 $ 41,108 $ 166,723 $ 17,022 $ 21,546 $ 28,459 $ -0- $ -0- $ -0- $ 14,708 $ 342,497
---------- -------- --------- -------- -------- --------- -------- ------- -------- -------- -----------
Net Increase Prior
to Interfund
Transfers $ 406,912 $ 58,433 $(274,849) $132,592 $134,479 $ 345,136 $ 98,413 $15,321 $390,564 $ 28,853 $ 1,335,854
Interfund Transfers (71,594) 10,420 (112,212) (45,410) (19,396) (6,724) 99,290 11,983 133,643 -0-
---------- -------- ---------- -------- -------- --------- -------- ------- -------- -------- -----------
NET
INCREASE (DECREASE) $ 335,318 $ 68,853 $(387,061) $ 87,182 $115,083 $ 338,412 $197,703 $27,304 $390,564 $162,496 $ 1,335,854
NET ASSETS AVAILABLE
FOR BENEFITS
Beginning of Year 1,300,679 404,279 5,455,674 427,237 369,725 469,907 142,435 8,569,936
---------- -------- ---------- -------- -------- --------- -------- ------- -------- -------- -----------
END OF YEAR $1,635,997 $473,132 $5,068,613 $514,419 $484,808 $ 808,319 $197,703 $27,304 $390,564 $304,931 $ 9,905,790
========== ======== ========== ======== ======== ========= ======== ======= ======== ======== ===========
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 IV
PARTICIPANT DIRECTED
====================
<CAPTION>
PEOPLES
BANCORP
CERTIFICATES INC. PEOPLES PEOPLES VANGUARD
PEOPLES OF COMMON SPECIAL VANGUARD ASSET TEMPLETON BANK
EQUITY DEPOSIT STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE
FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL
<S> <C> <C> <C> <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 $ -0- -0- -0- $14,990 $2,587,078
-------- -------- ---------- -------- -------- -------- -------- ------- ------ ------- ----------
Contributions:
Participants' $ 50,205 $ 18,513 $ 170,351 $ 40,190 $ 51,645 $ 51,283 $ $ $ $ $ 382,187
Employer's 11,144 4,988 43,778 7,591 10,498 10,364 88,363
Rollover's 2,249 7,518 132 4,518 4,518 18,935
-------- -------- ---------- -------- -------- -------- -------- ------- ------ ------- ----------
TOTAL CONTRIBUTIONS $ 63,598 $ 23,501 $ 221,647 $ 47,913 $ 66,661 $ 66,165 -0- -0- -0- $ 14,990 $ 489,485
-------- -------- ---------- -------- -------- -------- -------- ------- ------ -------- ----------
TOTAL ADDITIONS $402,321 $ 45,109 $2,199,790 $102,099 $138,985 $173,269 -0- -0- -0- $ 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- $ -0- -0- -0- $ 108,879
-------- -------- ---------- -------- -------- -------- -------- ------- ------ -------- ----------
Net Increase Prior
to Interfund
Transfers $389,957 $ 43,165 $2,155,077 $ 95,205 $118,426 $150,864 $ -0- -0- -0- $ 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 $ -0- $ -0- $ -0- $ (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 $ -0- $ -0- $ -0- $142,435 $8,569,936
========== ======== ========== ======== ======== ======== ======== ======= ====== ======== ==========
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, The Russell Federal
Savings Bank, and Catlettsburg 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 the Employee Retirement
Income Security Act of 1974 (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 beginning 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 1998 and 1997, the Employer's matching was 50% of the
employee's contribution, up to a maximum of 3% of the employee's deferred
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 eight 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 Templeton Foreign Fund is a common stock and bond fund managed
by The Franklin Templeton Group which seeks long-term capital growth
through a flexible policy of investing in stocks and debt obligations
of companies and governments outside of the United States.
* The Vanguard 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.
* The Vanguard Asset Allocation Fund is a common stock, bond and
money market fund managed by the Vanguard Group of Investment
Companies which varies the mix according to the relative
attractiveness of the asset classes. There is no limit on how much
can be invested in any one asset class.
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 $5,000 or less, the benefit
will be paid in a lump-sum payment. If the benefit exceeds $5,000, 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, Templeton Foreign
Fund, Vanguard 500 Index Fund, and Vanguard Asset Allocation Fund, are
valued at quoted market prices which represent the net asset value of shares
held by the Plan at year end.
Investments in Bank One Corporation and Peoples Bancorp Inc. common stock
are carried at quoted market prices.
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,
1998 1997
-------------------------------------------------
UNITS FAIR VALUE UNITS FAIR VALUE
INVESTMENTS AT FAIR VALUE AS
DETERMINED BY QUOTED MARKET PRICE
Fidelity U.S. Treasury
Income Portfolio Fund 201,670 $ 201,670 68,300 $ 68,300
Acorn Fund 28,678.511 483,233 19,714.141 334,943
Templeton Foreign Fund 3,307.637 27,751
*Vanguard 500 Index Fund 7,045.058 802,784 5,101.162 459,462
Vanguard Asset
Allocation Fund 7,971.098 194,336
Bank One Corporation
Common Stock 7,648 390,530
*Peoples Bancorp Inc.
Common Stock 204,044.500 4,973,585 129,821 5,420,027
---------- ---------
$7,073,889 $6,282,732
---------- ----------
INVESTMENTS AT ESTIMATED
FAIR VALUE
Peoples Certificates of
Deposit 424,404 $ 424,404 396,604 $ 396,604
*Peoples Stock Fund EB 13,799 1,570,703 13,779 1,288,466
Peoples Special Stock Fund EB 10,881 482,901 9,904 416,480
Participants Loans Receivable 279,854 279,854 143,618 143,618
---------- ----------
$2,757,862 $2,245,168
---------- ----------
TOTAL INVESTMENTS $9,831,751 $8,527,900
========== ==========
During 1998, the Plan's investments (including investments bought, sold,
and held during the year) appreciated (depreciated) in value by $(258,077)
as follows:
APPRECIATION
(DEPRECIATION)
----------------
1998 1997
CHANGES IN INVESTMENTS REPORTED AT FAIR VALUE
AS DETERMINED BY QUOTED MARKET PRICE
Acorn Fund $ 8,962 $ 37,584
Templeton Foreign Fund (3,876) -0-
Vanguard 500 Index Fund 139,956 97,548
Vanguard Asset Allocation Fund 6,664 -0-
Bank One Corporation Common Stock (3,342) -0-
Peoples Bancorp Inc. Common Stock (719,770) 1,886,677
---------- ----------
$ (571,406) $2,021,809
---------- ----------
CHANGES IN INVESTMENTS REPORTED
AT ESTIMATED FAIR VALUE
Peoples Stock Fund EB $ 283,184 $ 317,017
Peoples Special Stock Fund EB 30,145 46,760
---------- ----------
$ 313,329 $ 363,777
---------- ----------
NET CHANGE IN FAIR VALUE $ (258,077) $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 continue to be 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 been amended since receiving the determination letter.
However, 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
1998
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 201,670 SHARES $ 201,670 $ 201,670
*THE PEOPLES BANKING AND CERTIFICATES OF DEPOSIT
TRUST COMPANY 4.75% DUE 07/11/99 21,000 21,000
5.05% DUE 04/19/99 10,000 10,000
6.10% DUE 07/05/99 17,000 17,000
6.10% DUE 06/29/99 26,000 26,000
6.10% DUE 08/31/99 16,700 16,700
4.95% DUE 03/03/99 55,000 55,000
6.00% DUE 03/12/99 34,700 34,700
4.85% DUE 05/11/00 37,000 37,000
6.10% DUE 05/19/99 23,000 23,000
6.10% DUE 09/14/99 22,000 22,000
6.03% DUE 01/04/99 28,000 28,000
4.85% DUE 01/07/00 50,004 50,004
5.10% DUE 05/07/99 24,000 24,000
5.00% DUE 03/30/00 60,000 60,000
*PEOPLES STOCK FUND EB COMMON/COLLECTIVE TRUST
13,799 SHARES 686,633 1,570,703
*PEOPLES SPECIAL STOCK COMMON/COLLECTIVE TRUST
FUND EB 10,881 SHARES 357,936 482,901
ACORN FUND REGISTERED INVESTMENT
COMPANY
28,678.511 SHARES 451,363 483,233
TEMPLETON FOREIGN FUND REGISTERED INVESTMENT
COMPANY
3,307.637 SHARES 31,627 27,751
VANGUARD 500 INDEX FUND REGISTERED INVESTMENT
COMPANY
7,045.058 SHARES 553,062 802,784
VANGUARD ASSET REGISTERED INVESTMENT
ALLOCATION FUND COMPANY
7,971.098 SHARES 187,659 194,336
BANK ONE CORPORATION COMMON STOCK
7,658 SHARES 393,872 390,530
*PEOPLES BANCORP INC. COMMON STOCK
204,044.50 SHARES 2,259,168 4,973,585
*LOANS TO PARTICIPANTS VARIED TERMS THROUGH 2008
VARIED INTEREST RATES
FROM 9.25 - 11.0% 0 279,584
---------- ----------
TOTAL INVESTMENTS $5,547,394 $9,831,751
========== ==========
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 357 2,684,220 0 2,684,220
FUND NUMBER OF
SALES 231 2,550,850 0 2,550,850 2,550,850 0
PEOPLES COMMON STOCK
BANCORP INC.
NUMBER OF
PURCHASES 22 330,217 0 330,217
NUMBER OF
SALES 15 239,705 0 84,768 239,705 154,937
</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
ANNUAL REPORT ON FORM 11-K
FOR FISCAL YEAR ENDED DECEMBER 31, 1998
INDEX TO EXHIBITS
-----------------
Exhibit No. Description Page No.
1 Consent of Harman, Mallory, 19
& Ice, A.C.
Independent Auditors
CONSENT OF INDEPENDENT AUDITORS
To the Plan Administrative Committee
Peoples Bancorp Inc. Retirement Savings Plan
Marietta, Ohio
We consent to incorporation by reference of our report dated
May 5, 1999 relating to the statements of net assets available for
benefits with fund information of Peoples Bancorp Inc. Retirement
Savings as of December 31, 1998 and 1997, and the related statements of
changes in net assets available for benefits with fund information for
the years then ended, which appears in Peoples Bancorp Inc.'s Form
11K for 1998.
/s/ HARMAN, THOMPSON, MALLORY & ICE, A.C.
Harman, Thompson, Mallory & Ice, A.C.
Independent Auditors
Parkersburg, West Virginia
June 11, 1999
