<PAGE>
 
               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                  FORM 10-QSB
Mark One

[ X ]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND 
           EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1997

[   ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                For the transition period from __________  to __________

                      Commission File Number:  333-12293

                             Peoples Bancorp, Inc.
       -----------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

           Georgia                                         58-2265412
-------------------------------                       -------------------
(State or other jurisdiction of                         (IRS Employer
incorporation or organization)                        Identification No.)

               516 Bankhead Highway, Carrollton, Georgia 30117 
               -----------------------------------------------
                   (Address of principal executive offices)

                                (770) 838-9608
                                --------------
                          (Issuer's telephone number)

                                      N/A
  --------------------------------------------------------------------------
  (Former name, former address and former fiscal year, if changed since last 
                                    report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days. 
Yes  X     No
    ---       ---

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court.
Yes        No
    ---       ---

                     APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of 
common equity, as of November 1, 1997:  800,000

Transitional Small Business Disclosure Format (Check One)  Yes        No  X
                                                               ---       ---

                                       1
<PAGE>
 
                     PEOPLES BANCORP, INC. AND SUBSIDIARY


================================================================================

                                     INDEX
                                     -----
<TABLE>
<CAPTION> 
                                                                           Page
                                                                           ----
<S>        <C>                                                             <C>
PART I.    FINANCIAL INFORMATION

           Item 1.  Financial Statements

              Consolidated Balance Sheet - September 30, 1997 ...........    3

              Consolidated Statements of Operations - Three and Nine
                 Months Ended September 30, 1997 ........................    4

              Consolidated Statement of Cash Flows - Nine
                 Months Ended September 30, 1997 ........................    5

              Notes to Consolidated Financial Statements ................    6

           Item 2.  Management's Discussion and Analysis of
                          Financial Condition and Results of Operations      7


PART II.   OTHER INFORMATION

           Item 6 - Exhibits and Reports on Form 8-K ....................    8

           Signatures ...................................................    9
</TABLE>

                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION
                              FINANCIAL STATEMENTS

                      PEOPLES BANCORP, INC. AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 1997
                                   (Unaudited)
<TABLE> 
<CAPTION> 
                                   Assets
                                   ------
<S>                                                                                                     <C> 
Cash and due from banks                                                                                  $         306,178
Federal funds sold                                                                                               2,264,296
Securities available-for-sale, at fair value                                                                     6,013,352

Loans                                                                                                            7,127,312
Less allowance for loan losses                                                                                      73,000
                                                                                                       --------------------
          Loans, net                                                                                             7,054,312
                                                                                                       --------------------

Premises and equipment                                                                                             184,799
Other assets                                                                                                       251,789
                                                                                                       --------------------

          Total assets                                                                                   $      16,074,726
                                                                                                       ====================


                    Liabilities and Stockholders' Equity
                    ------------------------------------    

Deposits
    Demand                                                                                               $         813,267
    Interest-bearing demand                                                                                      2,671,585
    Savings                                                                                                        126,029
    Time                                                                                                         4,724,325
                                                                                                       --------------------
          Total deposits                                                                                         8,335,206
Other liabilities                                                                                                   76,567
                                                                                                       --------------------
          Total liabilities                                                                                      8,411,773
                                                                                                       --------------------

Commitments and contingent liabilities

Stockholders' equity
    Preferred stock, par value $.01; 1,000,000 shares authorized; none issued                                          -
    Common stock, par value $.01; 10,000,000 shares authorized; 800,000 shares issued                                8,000
    Capital surplus                                                                                              7,970,587
    Accumulated deficit                                                                                           (342,659)
    Unrealized gains on securities available-for-sale                                                               27,025
                                                                                                       --------------------
          Total stockholders' equity                                                                             7,662,953
                                                                                                       --------------------

          Total liabilities and stockholders' equity                                                     $      16,074,726
                                                                                                       ====================

</TABLE> 
The accompanying notes are an integral part of these consolidated 
financial statements.

                                       3

<PAGE>
                      PEOPLES BANCORP, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1997
                                   (Unaudited)


<TABLE> 
<CAPTION> 
                                                                                        Three Months              Nine Months 
                                                                                            Ended                    Ended    
                                                                                        September 30,             September 30, 
                                                                                            1997                      1997
------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                 <C>                    <C> 
Interest income
    Loans                                                                           $          137,438     $          221,820
    Taxable securities                                                                          73,001                133,970
    Federal funds sold and securities purchased
        under resell agreements                                                                 62,738                254,460
                                                                                    -------------------    -------------------
              Total interest income                                                            273,177                610,250
                                                                                    -------------------    -------------------

Interest expense
    Deposits                                                                                    81,384                143,800
    Other borrowings                                                                               -                    3,446
                                                                                    -------------------    -------------------
              Total interest expense                                                            81,384                147,246
                                                                                    -------------------    -------------------

              Net interest income                                                              191,793                463,004
Provision for loan losses                                                                       27,000                 73,000
                                                                                    -------------------    -------------------
              Net interest income after provision for loan losses                              164,793                390,004
                                                                                    -------------------    -------------------

Other operating income                                                                          41,356                 60,198
                                                                                    -------------------    -------------------

Other expenses
    Salaries and other employee benefits                                                       128,618                369,521
    Occupancy and equipment expenses                                                            29,360                 74,137
    Other operating expenses                                                                    82,679                256,241
                                                                                    -------------------    -------------------
                                                                                               240,657                699,899
                                                                                    -------------------    -------------------

              Net loss before income taxes                                                     (34,508)              (249,697)

Income tax expense                                                                                 -                      -
                                                                                    -------------------    -------------------

              Net loss                                                              $          (34,508)     $        (249,697)
                                                                                    ===================    ===================


              Net loss per share of common stock                                    $            (0.04)     $           (0.39)
                                                                                    ===================    ===================

Weighted average shares outstanding                                                            800,000                647,612
                                                                                    ===================    ===================

Cash dividends per share of common stock                                            $              -        $             -
                                                                                    ===================    ===================

</TABLE> 

The accompanying notes are an integral part of these consolidated 
financial statements.

                                       4
<PAGE>

                      PEOPLES BANCORP, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                      NINE MONTHS ENDED SEPTEMBER 30, 1997
                                   (Unaudited)

<TABLE> 
<S>                                                                                                         <C> 
OPERATING ACTIVITIES
    Net loss                                                                                                $        (249,697)
    Adjustments to reconcile net loss to net cash
        used in operating activities:
        Depreciation and amortization                                                                                  37,876
        Provision for loan losses                                                                                      73,000
        Increase in interest receivable                                                                              (138,746)
        Increase in interest payable                                                                                   51,349
        Other operating activities                                                                                      5,124
                                                                                                           -------------------

              Net cash used in operating activities                                                                  (221,094)
                                                                                                           -------------------

INVESTING ACTIVITIES
    Purchases of securities available-for-sale                                                                     (5,986,327)
    Net increase in Federal funds sold                                                                             (2,264,296)
    Net increase in loans                                                                                          (7,127,312)
    Purchase of premises and equipment                                                                               (161,230)
                                                                                                           -------------------

              Net cash used in investing activities                                                               (15,539,165)
                                                                                                           -------------------

FINANCING ACTIVITIES
    Net increase in deposits                                                                                        8,335,206
    Repayment of advances from organizers                                                                            (291,600)
    Proceeds from sale of common stock                                                                                982,090
                                                                                                           -------------------

              Net cash provided by financing activities                                                             9,025,696
                                                                                                           -------------------

Net decrease in cash and due from banks                                                                            (6,734,563)

Cash and due from banks, beginning of period                                                                        7,040,741
                                                                                                           -------------------

Cash and due from banks, end of period                                                                      $         306,178
                                                                                                           ===================

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
    Cash paid for:
        Interest                                                                                            $          95,897

        Income taxes                                                                                        $           4,200

NONCASH TRANSACTION
    Unrealized gains on securities available-for-sale                                                       $         (27,025)
</TABLE> 

The accompanying notes are an integral part of these consolidated 
financial statements.

                                       5
<PAGE>
 
                     PEOPLES BANCORP, INC. AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)


NOTE 1.  NATURE OF BUSINESS AND BASIS OF PRESENTATION

         Peoples Bancorp, Inc. (the Company) is a one-bank holding company whose
         business is conducted by its wholly-owned subsidiary, Peoples Bank of
         West Georgia (the Bank). The Bank is a commercial bank located in
         Carrollton, Carroll County, Georgia. The Company completed the sale of
         its common stock and obtained all necessary regulatory approvals to
         commence operations in February of 1997. The Company sold a total of
         $8,000,000 of its common stock and capitalized the Bank with $6,000,000
         on February 21, 1997. The Bank commenced operations on March 3, 1997.

         The financial information included herein is unaudited; however, such
         information reflects all adjustments (consisting solely of normal
         recurring adjustments) which are, in the opinion of management,
         necessary for a fair statement of results for the interim period.

         The results of operations for the nine month period ended September 30,
         1997 are not necessarily indicative of the results to be expected for
         the full year.


NOTE 2.  CURRENT ACCOUNTING DEVELOPMENTS

         The Financial Accounting Standards Board has issued SFAS No. 128,
         "Earnings Per Share". SFAS No. 128 establishes standards for computing
         and presenting earnings per share (EPS) and applies to entities with
         publicly held common stock or potential common stock. This Statement
         simplifies the standards for computing earnings per share previously
         found in APB Opinion No. 15, Earnings per Share, and makes them
         comparable to international EPS standards. It replaces the presentation
         of primary EPS with a presentation of basic EPS. It also requires dual
         presentation of basic and diluted EPS on the face of the income
         statement for all entities with complex capital structures and requires
         a reconciliation of the numerator and denominator of the basic EPS
         computation to the numerator and denominator of the diluted EPS
         computation. The effective date of this statement is for financial
         statements issued for periods ending after December 15, 1997. The
         adoption of this Statement is not expected to have a material effect on
         earnings (losses) per share.

                                       6
<PAGE>
 
                     PEOPLES BANCORP, INC. AND SUBSIDIARY

ITEM 2.

                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Financial Condition
-------------------

As of September 30, 1997, the Company had total assets of $16.1 million. The
Company raised $8 million from the sale of its common stock and has received
$8.3 million in deposits since the commencement of operations on March 3, 1997.
The Company has invested the proceeds from its stock sale and deposit growth in
Federal funds sold ($2.3 million), U. S. Treasury and Agency securities ($6.0
million) and loans ($7.1 million). The Company expects that loan and deposit
growth will be significant during its early periods of operations. This growth
is not uncommon for de novo banks.

Liquidity
---------

As of September 30, 1997, the Bank's liquidity ratio was far in excess of its
target ratio, due to its investment in Federal funds sold and other short-term
investments. As loan growth continues to increase, the Bank's liquidity will
decrease rapidly to levels more in line with its target ratio of 30%.

Capital
-------

The minimum capital requirements for banks and bank holding companies require a
leverage capital to assets ratio of at least 4%, core capital to risk-weighted
assets ratio of at least 4%, and total capital to risk-weighted assets of at
least 8%. The Company and the Bank's capital ratios are far in excess of these
regulatory requirements. As asset growth continues, these ratios will decrease
rapidly to levels closer to, but still in excess of the regulatory minimum
requirements.

Results of Operations
---------------------

The Company commenced its operations on March 3, 1997. Prior to the
commencement, the Company was engaged in activities involving the formation of
the Company, selling its common stock and obtaining necessary regulatory
approvals. The Company incurred operating losses totaling $157,000 during its
organizational period ($93,000 in 1996 and $64,000 in 1997). The Company
incurred total organizational and stock issue costs of $105,000 of which $84,000
has been capitalized to be amortized over a period of sixty months, and $21,000
has been recorded as a reduction of capital surplus. Through the third quarter,
the Company has incurred additional operating losses of $186,000 of which
$35,000 was attributable to the three month period ended September 30, 1997. The
Company expects that it will continue to incur operating losses during its first
full year of operations, until the increase in loans and other interest-earning
assets will generate the income necessary to cover interest expense and other
operating expenses.

The Company is not aware of any other known trends, events or uncertainties,
other than the effect of events as described above, that will have or that are
reasonably likely to have a material effect on its liquidity, capital resources
or operations. The Company is also not aware of any current recommendations by
the regulatory authorities which, if they were implemented, would have such an
effect.

                                       7
<PAGE>
 
                          PART II - OTHER INFORMATION


ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K.

           (a)       Exhibits.

                     27.  Financial Data Schedule.

           (b)       Reports on Form 8-K.

                     None.

                                       8
<PAGE>
 
                                  SIGNATURES



       In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                 PEOPLES BANCORP, INC.
                                      (Registrant)



DATE:                            BY: /s/ Timothy I. Warren
      ---------------------          -----------------------------------
                                     Timothy I. Warren. President and C.E.O.
                                          (Principal Executive Officer)


DATE:                            BY: /s/ Elaine B. Lovvorn
      ---------------------          -----------------------------------
                                     Elaine B. Lovvorn, Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)