PEOPLES BANCORP, INC.
RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
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: July 3, 2002 By:/s/ ROBERT E. EVANS
-------------------------------------
Robert E. Evans
President and Chief Executive Officer
PEOPLES BANCORP, INC. RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
CONTENTS
PAGE
----
Independent Auditor's Report...........................................1
Statements of Net Assets Available for Benefits at
December 31, 2001 and 2000.............................................2
Statements of Changes in Net Assets Available for the
Years Ended December 31, 2001 and 2000.................................3
Notes to Financial Statements..........................................4-9
SUPPLEMENTAL INFORMATION
Schedule of Assets Held for Investment Purposes at the End of Year....10-19
April 22, 2002
To the Plan Administrative Committee
Peoples Bancorp, Inc. Retirement Savings Plan
Marietta, Ohio
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying statements of net assets
available for benefits of Peoples Bancorp, Inc. Retirement
Savings Plan as of December 31, 2001, and the related
statements of changes in net assets available for benefits for
the year 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 audit. The financial statements of Peoples Bancorp, Inc.
Retirement Savings Plan as of December 31, 2000, were audited
by other auditors whose report dated May 15, 2001, expressed
an unqualified opinion on those statements.
We conducted our audit in accordance with U. S. 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 from 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 audit provides a
reasonable basis for our opinion.
In our opinion, the December 31, 2001 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, 2001, and the changes in net assets available for benefits
with fund information for the year then ended in conformity
with U.S. generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion
on the basic financial statements taken as a whole. The
supplemental information included in Schedule H - Assets Held
for Investment Purposes at End of Year 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.
PEOPLES BANCORP, INC. RETIREMENT SAVINGS PLAN
PAGE 2
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2001 AND 2000
ASSETS
2001 2000
------ ------
ASSETS
Cash and cash equivalents $ 429 $ 37,230
Investments, at fair value:
Money market funds 3,723,181 1,714,120
Peoples certificates of deposit 1,090,051 858,782
Shares of Registered Investment Companies:
Acorn Fund 1,284,835 973,747
Templeton Foreign Fund 0 125,058
Vanguard 500 Index Fund 0 1,481,471
Vanguard Asset Allocation Fund 0 434,342
Common stock 5,140,753 3,756,972
Participant loan receivable 250,626 256,199
---------- ---------
Total investments 11,489,446 9,600,691
Receivables:
Interest and dividends receivable 45,041 39,769
Other receivables 0 18
---------- ---------
Total receivables 45,041 39,787
TOTAL ASSETS 11,534,916 9,677,708
LIABILITIES
Excess contributions payable 5,364 619
---------- ---------
Net assets available for benefits $11,529,552 $9,677,089
=========== ==========
PEOPLES BANCORP, INC. RETIREMENT SAVINGS PLAN
PAGE 3
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
2001 2000
---- ----
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Interest and dividend income $ 297,277 $ 434,926
Net realized gain on sale/redemption of investments 0 915,135
Net unrealized appreciation in fair value of investments 1,154,376 0
Participant contributions 649,133 595,981
Rollover contributions 103,629 40,430
Employers' contributions 351,551 323,554
------------ -----------
Total additions $2,555,966 2,310,026
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants 564,801 776,450
Net unrealized depreciation in fair value of investments 0 2,492,925
Net realized loss on sale/redemption of investments 138,702 0
------------ -----------
Total deductions 703,503 3,269,375
------------ -----------
Net increase(decrease) 1,852,463 (959,349)
Net Assets Available for Benefits
Beginning of year 9,677,089 10,636,438
------------ -----------
End of year $ 11,529,552 $ 9,677,089
============ ===========
PEOPLES BANCORP, INC.
RETIREMENT SAVINGS PLAN
PAGE 4
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 Subsidiary,
Peoples Bank, NA. 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
Peoples Bank, NA.
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% after tax annual
compensation. Participants may also directly rollover amounts
representing distributions from other qualified plans. In
addition, Peoples Bancorp, Inc. or its Subsidiary 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. Effective for 2001 and 2000,
the Employer's matching was 100% of the employee's
contribution up to the first 3% of the employee's compensation
and 50% of the employee's contribution on the next 2% of the
employee's compensation.
Participant Directed Investments
--------------------------------
Participants direct the investment of their contributions and
their allocated share of the matching contributions into
various investment options offered by the Plan. The Plan
currently offers eight funds as investment options for
participants through the Plan's bank-administered trust fund
with Peoples Bank, NA.
Participants may change their investment options quarterly.
PEOPLES BANCORP, INC.
RETIREMENT SAVINGS PLAN
PAGE 5
NOTES TO FINANCIAL STATEMENTS
NOTE 1: DESCRIPTION OF PLAN (Continued)
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.
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 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.
PEOPLES BANCORP, INC.
RETIREMENT SAVINGS PLAN
PAGE 6
NOTES TO FINANCIAL STATEMENTS
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 could 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 Peoples Bancorp, Inc. common stock are carried
at quoted market prices.
The investment in Peoples Bank, NA, 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.
PEOPLES BANCORP, INC.
RETIREMENT SAVINGS PLAN
PAGE 7
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.
December 31,
-----------------------------------------------------------------------
2001 2000
----------------------------------- --------------------------------
FAIR VALUE FAIR VALUE
UNITS UNITS
INVESTMENTS AT FAIR VALUE AS DETERMINED BY QUOTED MARKET
PRICE
* Fidelity U.S. Treasury Income Portfolio Fund 3,723,181 $3,723,181 1,714,120.000 $1,714,120
* Acorn Fund 71,858.772 1,284,835 56,580.299 973,747
Templeton Foreign Fund 0.000 0 12,094.609 125,058
* Vanguard 500 Index Fund 0.000 0 12,157.155 1,481,471
Vanguard Asset Allocation Fund 0.000 0 18,349.880 434,342
* Peoples Bancorp, Inc. Common Stock 280,150 5,140,753 254,710.000 3,756,972
--------- ---------
INVESTMENTS AT ESTIMATED FAIR VALUE
* Peoples Certificates of Deposit 1,090,051 1,090,051 858,781.990 $ 858,782
Participants Loans Receivable 250,626 256,199.000 256,199
---------
$1,340,677 $1,114,981
---------- ----------
TOTAL INVESTMENTS $11,489,446 $9,600,691
----------- ==========
PEOPLES BANCORP, INC.
RETIREMENT SAVINGS PLAN
PAGE 8
NOTES TO FINANCIAL STATEMENTS
NOTE 3: INVESTMENTS (Continued)
During 2001 and 2000, the Plan's investments (including
investments bought, sold and held during the year) appreciated
(depreciated) in value by $1,015,674 and $(1,577,790),
respectively as follows:
2001 2000
------------ ------------
CHANGES IN INVESTMENTS REPORTED AT FAIR VALUE
AS DETERMINED BY QUOTED MARKET PRICE
Acorn Fund 67,092 $ (53,130)
Templeton Foreign Fund (483) (3,596)
Janus Worldwide Fund (83,632) 0
White Oak Growth Fund (162,125) 0
T Rowe Price Mid-Cap Growth 823 0
Vanguard Total Bond Fund (361) 0
Vanguard 500 Index Fund (183,655) (160,865)
Vanguard Asset Allocation Fund (53,228) (4,494)
Bank One Corporation Common Stock 0 5,199
Peoples Bancorp, Inc. Common Stock 1,431,243 (1,204,220)
----------- -----------
$ 1,015,674 $(1,421,106)
CHANGES IN INVESTMENTS REPORTED AT
ESTIMATED FAIR VALUE
Peoples Stock Fund EB 0 $ (115,509)
Peoples Special Stock Fund EB (41,175)
------------ -----------
0
NET CHANGE IN FAIR VALUE $ 1,015,674 $(1,577,790)
============ ============
NOTE 4: RELATED PARTY TRANSACTIONS
Certain Plan investments such as certificates of deposit and
shares in the common/collective trusts are managed by Peoples
Bank, NA, a subsidiary of Peoples Bancorp, Inc. Peoples Bank,
NA 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 of 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.
PEOPLES BANCORP, INC.
RETIREMENT SAVINGS PLAN
PAGE 9
NOTES TO FINANCIAL STATEMENTS
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.
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 10
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Certificate of Deposit Portion
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
------------------------------------------------------------------------------------------------------------------
Fidelity US Treas Income #680 41,896 41,896
Peoples CD 95213760 6.00% 01/27/02 253,611 253,611
Peoples CD 95215890 6.05% 02/24/02 60,000 60,000
Peoples CD 95249810 6.90% 03/02/02 205,877 205,877
Peoples CD 29288123 2.73% 05/28/03 155,348 155,348
Peoples CD 29245337 4.28% 02/10/03 181,949 181,949
Peoples CD 29248288 4.46% 11/20/03 233,267 233,267
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 11
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Peoples Bancorp Stock Portion
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
---------------------------------------------------------------------------------------------------------------------
Fidelity US Treasury Income Portfolio #680 12,091 12,091
PEBO Peoples Bancorp, Inc. 280,150 2,600,823 5,140,753
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 12
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Acorn Fund
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Fidelity US Treasury Income Portfolio #680 6,218 6,218
ACRN X Liberty Acorn Fund Z #492 Small Cap Growth
Stock Fund 1,218,418 1,284,835
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 13
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Vanguard 500
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Fidelity US Treas Income Portfolio Fund #680 1,444,426 1,444,426
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 14
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Vanguard Asset Allocation
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Fidelity US Treas Income Portfolio Fund #680 670,449 670,449
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 15
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Janus Worldwide
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Fidelity US Treas Income Portfolio Fund #680 393,569 393,569
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 16
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
White Oak Growth
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Fidelity US Treas Income Portfolio Fund #680 443,692 443,692
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 17
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
T. Rowe Price Mid-Cap Growth
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Fidelity US Treas Income Portfolio Fund #680 532,789 532,789
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 18
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Vanguard Total Bond Fund Index
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Fidelity US Treas Income Portfolio Fund #680 178,052 178,052
PEOPLES BANCORP RETIREMENT SAVINGS PLAN
PAGE 19
Employer Identification Number: 31-0987416
Three Digit Plan Number: 002
SCHEDULE H - Assets Held for Investment Purposes at End of Year
As of December 31, 2001
Savings Plan
(a) (b) Identity of issues, (c) Description of investment including (d) Cost (e) Current Value
borrower, lessor or maturity date, rate of interest, collateral,
similar party par or maturity value
-------------------------------------------------------------------------------------------------------------------------
Participant Loans
66-0981 Peoples Note Receivables 7%-11% 0 250,626