PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
MARIETTA, OHIO
FINANCIAL STATEMENTS
DECEMBER 31, 1999
<PAGE>
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 13, 2000 By: /s/ ROBERT E. EVANS
Robert E. Evans
President and Chief Executive Officer
<PAGE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
DECEMBER 31, 1999
<TABLE>
<CAPTION>
TABLE OF CONTENTS
STATEMENT PAGE
<S> <C> <C>
Independent Auditors' Report 1
Statement of Net Assets Available for Benefits with Fund
Information at December 31, 1999 I 2
Statement of Net Assets Available for Benefits with Fund
Information at December 31, 1998 II 3
Statement of Changes in Net Assets Available for Benefits with
Fund Information for the Year Ended December 31, 1999 III 4
Statement of Changes in Net Assets Available for Benefits with
Fund Information for the Year Ended December 31, 1998 IV 5
Notes to Financial Statements 6-12
SUPPLEMENTAL INFORMATION
SCHEDULE
Schedule of Assets Held for Investment Purposes at End of Year A 14
Schedule of Reportable Transactions B 15
Index to Exhibits 16
Consent of Independent Auditors 17
</TABLE>
<PAGE>
Harman, Thompson, Mallory & Ice, A.C.
[Letterhead]
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, 1999 and 1998, 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,
1999 and 1998, 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 A - Assets Held for Investment Purposes at End of Year and Schedule B -
Reportable Transactions together referred to as "Supplemental Information" 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 is the responsibility of the Plan's management. 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.
Parkersburg, West Virginia
May 11, 2000
<PAGE>
<TABLE>
<CAPTION>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1999
STATEMENT I
PARTICIPANT DIRECTED
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
ASSETS
Money Market Funds
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity U.S.
Treasury Income
Portfolio Fund $ 4,650 $ 8,280 $ 38,130 $ 10,420 $ 6,950 $ 11,560 $ 3,650 $ 470 $ 11,610 $ 1,020 $ 96,740
Investments, at Fair Value
Peoples Certificates
of Deposit 953,761 953,761
Shares of Common/
Collective Trusts:
Peoples Stock
Fund EB 1,536,878 1,536,878
Peoples Special
Stock Fund EB 583,617 583,617
Shares of Registered
Investment Companies:
Acorn Fund 672,269 672,269
Templeton Foreign Fund 46,749 46,749
Vanguard 500 Index Fund 1,140,379 1,140,379
Vanguard Asset
Allocation Fund 352,767 352,767
Common stock:
Bank One Corporation 172,736 172,736
Peoples Bancorp Inc. 4,774,806 4,774,806
Participant Loans
Receivable 261,412 261,412
--------- -------- ---------- --------- -------- ---------- --------- ------- -------- -------- -----------
TOTAL INVESTMENTS $1,541,528 $962,041 $4,812,936 $ 594,037 $679,219 $1,151,939 $ 356,417 $47,219 $184,346 $262,432 $10,592,114
--------- -------- ---------- --------- -------- ---------- --------- ------- -------- -------- -----------
Cash, Non-Interest
Bearing $ 9 $ 8 $ -0- $ 8 $ -0- $ 7 $ 10 $ 4 $ 3 $ 7 $ 56
--------- -------- ---------- -------- -------- ---------- -------- -------- -------- -------- -----------
Receivables:
Employer's
Contribution $ 2 $ $ 3 $ 2 $ 1 $ 1 $ $ $ $ $ 9
Participants'
Contribution 15 34 19 15 14 97
Interest and Dividends 4,025 8,488 31,285 2,525 68 216 36 2 2,317 2 48,964
Interfund Transfers
Pending 277 33 94 264 14 23 6 (9) 4 (706) -0-
-------- -------- ---------- -------- ------- -------- -------- -------- -------- -------- --------
TOTAL RECEIVABLES $ 4,319 $ 8,521 $ 31,416 $ 2,810 $ 98 $ 254 $ 42 $ (7) 2,321 (704) $ 49,070
--------- -------- ---------- -------- ------- --------- -------- -------- -------- -------- ----------
TOTAL ASSETS $1,545,856 970,570 4,844,352 $ 596,855 $679,317 $1,152,200 $356,469 $ 47,216 $186,670 $261,735 $10,641,240
---------- -------- ---------- -------- -------- --------- ------- -------- -------- -------- ----------
LIABILITIES
Excess Contribution
Payable $ 56 $ 3,384 $ 453 $ 248 $ 235 $ $ 426 $ $ $ $ 4,802
--------- --------- ---------- -------- ------- ---------- ------- -------- -------- -------- ---------
TOTAL LIABILITIES $ 56 $ -0- $ 3,384 $ 453 $ 248 $ 235 $ -0- $ 426 $ -0- $ -0- $ 4,802
--------- --------- ---------- -------- -------- ---------- ------- -------- -------- -------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $1,545,800 $970,570 $4,840,968 $ 596,402 $ 679,069 $1,151,965 $356,469 $ 46,790 $186,670 $261,735 $10,636,438
========== ======== ========== ========= ========= ========== ======== ======== ======== ======== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1998
PARTICIPANT DIRECTED
STATEMENT II
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
ASSETS
Money Market Funds
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity U.S. $ 61,840 $ 44,940 $ 61,570 $ 28,860 $ $ 2,160 $ 1,850 $ $ $ 450 $ 201,670
Treasury Income
Portfolio Fund
Investments, at Fair Value
Peoples Certificates
of Deposit 424,404 424,404
Shares of Common/
Collective Trusts:
Peoples Stock
Fund EB 1,570,703 1,570,703
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.
Participant Loans 4,973,585 4,973,585
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:
Rolloyer
Contribution $ $ $ $ $ $ $ $ $ $ 24,201 $ 24,201
Interest and Dividends 3,987 1,704 28,533 2,483 28 81 39 8 604 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 $ 49,070
---------- -------- ---------- -------- -------- ---------- -------- -------- -------- -------- -----------
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>
<PAGE>
<TABLE>
<CAPTION>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1999
STATEMENT III
PARTICIPANT DIRECTED
PEOPLES PEOPLES
CERTIFICATES BANCORP PEOPLES VANGUARD
PEOPLES OF INC. SPECIAL VANGUARD ASSET TEMPLETON BANK
EQUITY DEPOSIT COMMON STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE
FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL
ADDITIONS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to Net Assets
Attributed To:
Investment Income:
Net Appreciation
(Depreciation)
in Fair Value of
Investments $ 140,922 $ $(138,640) $ 98,126 $ 55,045 $ 175,535 $ (6,632)$10,381 $(86,845)$ $ 247,892
Interest 1,996 32,569 816 182 157 554 188 81 604 27,079 64,226
Dividends 21,147 121,321 5,904 108,367 19,700 26,159 1,524 10,065 2,906 317,093
---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- -----------
TOTAL INVESTMENT INCOME $ 164,065 $ 32,569 $ (16,503) $ 104,212 $163,569 $ 195,789 $ 19,715 $11,986 $(76,176)$ 29,985 $ 629,211
---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- -----------
Contributions:
Participants' $ 49,623 $ 32,977 $ 190,093 $ 30,614 $ 47,174 $ 101,885 $ 44,530 $ 8,836 $ $ $ 505,732
Employer's 10,952 8,668 46,601 6,311 10,918 21,150 8,864 2,387 115,851
Rollovers 12,312 46,832 20,054 806 37,437 44,341 12,567 174,349
---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- -----------
TOTAL CONTRIBUTIONS $ 72,887 $ 88,477 $ 256,748 $ 37,731 $ 95,529 $ 167,376 $ 65,961 $11,223 $ -0- $ -0- $ 795,932
---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- -----------
TOTAL ADDITIONS $ 236,952 $121,046 $ 240,245 $ 141,943 $259,098 $ 363,165 $ 85,676 $23,209 $(76,176)$ 29,985 $ 1,425,143
---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- -----------
DEDUCTIONS
Deductions from Net
Assets Attributed To:
Benefits Paid to
Participants $ 306,125 $ 3,607 $ 257,197 $ 38,026 $ 14,824 $ 32,378 $ 41,108 $ 1,230 $ $ $ 694,495
--------- -------- --------- --------- -------- --------- --------- ------- -------- -------- -----------
TOTAL DEDUCTIONS $ 306,125 $ 3,607 $ 257,197 $ 38,026 $ 14,824 $ 32,378 $ 41,108 $ 1,230 $ -0- $ -0- $ 694,495
--------- -------- --------- --------- -------- --------- --------- ------- -------- -------- -----------
Net Increase Prior to
Interfund Transfers $ (69,173) $117,439 $ (16,952) $ 103,917 $244,274 $ 330,787 $ 44,568 $21,979 $(76,176)$ 29,985 $ 730,648
Interfund Transfers (21,024) 379,999 (210,693) (21,934) (50,013) 12,859 114,198 (2,493)(127,718) (73,181) -0-
---------- -------- --------- --------- -------- -------- -------- ------- -------- -------- -----------
NET INCREASE (DECREASE) $ (90,197) $497,438 $(227,645) $ 81,983 $194,261 $ 343,646 $ 158,766 $19,486 (203,894)$(43,196)$ 730,648
NET ASSETS AVAILABLE
FOR BENEFITS
Beginning 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
--------- -------- --------- -------- -------- --------- --------- ------- ----------------- -----------
END OF YEAR $1,545,800 $970,570 $4,840,968 $ 596,402 $679,069 $1,151,965 $ 356,469 $46,790 $186,670 $261,735 $10,636,438
========== ======== ========== ========= ======== ========= ========= ======= ======== ======== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
STATEMENT IV
PARTICIPANT DIRECTED
PEOPLES PEOPLES
CERTIFICATES BANCORP PEOPLES VANGUARD
PEOPLES OF INC. SPECIAL VANGUARD ASSET TEMPLETON BANK
EQUITY 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>
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>
<PAGE>
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 1999 and
1998, 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.
6
<PAGE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1: DESCRIPTION OF PLAN (CONTINUED)
Investment Options
Upon enrollment in the Plan, a participant may direct contributions
into any of eight investment options.
o The Peoples Equity Fund is a common stock fund which consists of a
diversified portfolio of high-quality common stocks.
o 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.
o 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.
o 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.
o 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.
o 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.
o 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.
o 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.
7
<PAGE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1: DESCRIPTION OF PLAN (CONTINUED)
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.
8
<PAGE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
9
<PAGE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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.
<TABLE>
<CAPTION>
DECEMBER 31,
1999 1998
_____________________________ _____________________________
UNITS FAIR VALUE UNITS FAIR VALUE
INVESTMENTS AT FAIR VALUE
DETERMINED BY QUOTED MARKET PRICE
<S> <C> <C> <C> <C>
Fidelity U.S. Treasury Income Portfolio Fund 96,740.000 $ 96,740 201,670.000 $ 201,670
* Acorn Fund 36,280.061 672,269 28,678.511 483,233
Templeton Foreign Fund 4,166.566 46,749 3,307.637 27,751
* Vanguard 500 Index Fund 8,426.651 1,140,379 7,045.058 802,784
Vanguard Asset Allocation Fund 14,822.134 352,767 7,971.098 194,336
Bank One Corporation Common Stock 5,398.000 172,736 7,648.000 390,530
* Peoples Bancorp Inc. Common Stock 222,084.000 4,774,806 204,044.500 4,973,585
---------- ----------
$ 7,256,446 $ 7,073,889
----------- -----------
INVESTMENTS AT ESTIMATED FAIR VALUE
* Peoples Certificates of Deposit 953,760.570 $ 953,761 424,404.000 $ 424,404
* Peoples Stock Fund EB 12,443.000 1,536,878 13,799.000 1,570,703
* Peoples Special Stock Fund EB 10,958.000 583,617 10,881.000 482,901
Participants Loans Receivable 261,412.000 261,412 279,854.000 279,854
---------- ----------
$ 3,335,668 $ 2,757,862
----------- -----------
TOTAL INVESTMENTS $ 10,592,114 $ 9,831,751
=========== ===========
</TABLE>
10
<PAGE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 3: INVESTMENTS (CONTINUED)
During 1999 and 1998, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value by $247,892
and $(258,077), respectively, as follows:
APPRECIATION
(DEPRECIATION)
1999 1998
CHANGES IN INVESTMENTS REPORTED AT FAIR VALUE
AS DETERMINED BY QUOTED MARKET PRICE
Acorn Fund $ 55,045 $ 8,962
Templeton Foreign Fund 10,381 (3,876)
Vanguard 500 Index Fund 175,535 139,956
Vanguard Asset Allocation Fund (6,632) 6,664
Bank One Corporation Common Stock (86,845) (3,342)
Peoples Bancorp Inc. Common Stock (138,640) (719,770)
--------- ----------
$ 8,844 $ (571,406)
--------- ----------
CHANGES IN INVESTMENTS REPORTED
AT ESTIMATED FAIR VALUE
Peoples Stock Fund EB $ 140,922 $ 283,184
Peoples Special Stock Fund EB 98,126 30,145
--------- ----------
$ 239,048 $ 313,329
--------- ----------
NET CHANGE IN FAIR VALUE $ 247,892 $ (258,077)
========= ==========
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.
11
<PAGE>
PEOPLES BANCORP INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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.
12
<PAGE>
SUPPLEMENTAL INFORMATION
<PAGE>
<TABLE>
<CAPTION>
PEOPLES BANCORP INC.
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN 002
DECEMBER 31, 1999
31-0987416
SCHEDULE A
(a) (b) (c) (d) (e)
Identity of Issue, Borrower Description of Investment Cost Current
Lessor, or Similar Party Including Maturity Date, Value
Rate of Interest, Collateral,
Par or Maturity Value
<S> <C> <C> <C> <C>
Fidelity U.S. Treasury Income Money Market
Portfolio Fund 96,740 Shares 96,740 96,740
* The Peoples Banking and Trust Certificates of Deposit
Company 6.00% Due 01/27/02 225,000 225,000
4.89% Due 06/16/00 65,000 65,000
4.89% Due 07/19/00 13,121 13,121
4.99% Due 09/30/00 201,156 201,156
5.95% Due 01/19/01 210,000 210,000
4.85% Due 05/11/00 37,000 37,000
4.89% Due 06/05/00 90,000 90,000
4.85% Due 01/07/00 52,484 52,484
5.00% Due 03/30/00 60,000 60,000
* Peoples Stock Fund EB Common/Collective Trust
12,443 Shares 774,958 1,536,878
* Peoples Special Stock Fund EB Common/Collective Trust
10,958 Shares 369,907 583,617
Acorn Fund Registered Investment Company
36,280.061 Shares 592,06 672,269
Templeton Foreign Fund Registered Investment Company
4,166.566 Shares 40,748 46,749
Vanguard 500 Index Fund Registered Investment Company
8,426.651 Shares 772,328 1,140,379
Vanguard Asset Allocation Fund Registered Investment Company
14,822.134 Shares 355,909 352,767
Bank One Corporation Common Stock
5,398 Shares 277,997 172,736
* Peoples Bancorp Inc. Common Stock
222,084 Shares 2,311,936 4,774,806
* Loans to Participants Varied Terms Through 2005 and
Varied Interest Rates from 9.75%
to 11.00% -0- 261,412
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PEOPLES BANCORP INC.
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN 002
FOR THE YEAR ENDED DECEMBER 31, 1999
31-0987416
SCHEDULE B
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Identity of Description of Asset Purchase Selling Lease Expense Cost of Current Net
Party Involved (Include Interest Rate Price Price Rental Incurred Asset Value of Gain
and Maturity in Case with Asset on or
of a Loan) Transaction Transaction (Loss)
<S> <C> <C> <C> <C> <C> <C> <C>
Fidelity U.S. Money Market Fund
Treasury 382 Purchases 3,383,760 -0- 3,383,760
Income 216 Sales 3,488,690 -0- 3,488,690 3,488,690 -0-
Portfolio
Fund
Peoples Common Stock
Bancorp 23 Purchases 377,587 -0- 377,587
Inc. 24 Sales 416,867 -0- 311,475 416,867 105,392
Peoples Common/Collective
Stock Fund Trust
EB 8 Purchases 294,930 -0- 294,930
6 Sales 469,677 -0- 206,605 469,677 263,072
Vanguard 500 Registered Investment
Index Fund Company
25 Purchases 335,397 -0- 335,397
4 Sales 173,338 -0- 116,132 173,338 57,206
</TABLE>
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description Page No.
1 Consent of Harman, Mallory & Ice, A.C. 17
16
