SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(MARK ONE)

|X|      QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
         OF THE SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended September 30, 2000

         OR

|_|      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
         OF THE SECURITIES EXCHANGE ACT OF 1934

         Commission File Number:  O-13653


                       THE PEOPLES BANCTRUST COMPANY, INC.
             (Exact name of registrant as specified on its charter)

           Alabama                                        63-0896239
------------------------------------        -----------------------------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                      Identification No.)

310 Broad Street, Selma, Alabama                               36701
------------------------------------------          ---------------------------
(Address of principal executive offices)                     (Zip Code)

                                 (334) 875-1000
           ---------------------------------------------------------
              (Registrant's telephone number, including area code)

     Indicate by a check mark whether the  registrant  (1) has filed all reports
required to be filed by Section 13 of 15(d) of the  Securities  Exchange  Act of
1934  during the  preceding  12 months (or such  shorter  time  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

     As of the close of business on  November 9, 2000,  5,148,138  shares of the
registrant's Common Stock, par value $.10 per share, were outstanding.

<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

               THE PEOPLES BANCTRUST COMPANY, INC., SELMA, ALABAMA
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                           In Thousands
                                                   September 30,    December 31,
                                                       2000            1999
                                                       ----            ----
                                                   (Unaudited)
ASSETS:
Cash and due from banks                                $  22,287      $  39,809
Federal funds sold and securities purchased
   under agreement to resell                               9,255          4,663
                                                       ---------      ---------
Total cash and cash equivalents                           31,542         44,472

Securities available-for-sale                            122,176        119,559
Loans, net of unearned discount                          464,369        436,732
Allowance for loan losses                                 (6,042)        (5,333)
                                                       ---------      ---------
Net loans                                                458,327        431,399

Bank premises and equipment, net                          14,911         13,880
Intangible assets                                          8,429          8,997
Other real estate, net                                       970            876
Other assets                                              13,555         10,160
                                                       ---------      ---------
Total assets                                           $ 649,910      $ 629,343
                                                       =========      =========

LIABILITIES AND STOCKHOLDERS' EQUITY:
Non-interest-bearing deposits                          $  69,054      $  68,056
Interest-bearing deposits                                449,461        421,285
                                                       ---------      ---------
Total deposits                                           518,515        489,341


Federal funds purchased and securities sold
   under agreements to repurchase                          4,679         34,789
Other borrowed funds                                      57,702         42,104
Other liabilites                                           8,168          5,204
                                                       ---------      ---------
Total liabilities                                        589,064        571,438


Common stock                                                 515            515
Additional paid-in-capital                                 5,651          5,651
Accumulated other comprehensive income, net
   of tax                                                 (1,669)        (1,647)
Retained earnings                                         56,349         53,386
                                                       ---------      ---------

Total stockholders' equity                                60,846         57,905
                                                       ---------      ---------
Total liabilities and stockholders' equity             $ 649,910      $ 629,343
                                                       =========      =========

  See Notes to the Unaudited Condensed Consolidated Financial Statements

                                       2
<PAGE>
<TABLE>
<CAPTION>
               THE PEOPLES BANCTRUST COMPANY, INC., SELMA, ALABAMA
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                                 In Thousands, except share and per share data
                                                                 (Unaudited)
                                      Three Months Ended September 30,  Nine Months Ended September 30,
                                      --------------------------------  -------------------------------
                                                2000          1999           2000          1999
                                                ----          ----           ----          ----
<S>                                         <C>           <C>           <C>            <C>
Interest and fees on loans                  $    11,334   $     9,454   $    32,189    $    26,331
Interest and dividends on investment
   securities                                     1,804         1,912         5,435          5,896
Other interest income                               234            18           461            315
                                            -----------   -----------   -----------    -----------
Total interest income                            13,372        11,384        38,085         32,542

Interest on deposits                              5,459         4,150        14,976         12,001
Interest on borrowed funds                          977           577         2,447          1,572
                                            -----------   -----------   -----------    -----------
Total interest expense                            6,436         4,727        17,423         13,573
                                            -----------   -----------   -----------    -----------
Net interest income                               6,936         6,657        20,662         18,969

Provision for loans losses                          782         1,290         2,347          2,870
                                            -----------   -----------   -----------    -----------
Net interest income after provision for
   loan losses                                    6,154         5,367        18,315         16,099

Net securities gains (losses)                        17            42            (7)           204
Other non-interest income                         2,057         1,886         5,515          5,356
Non-interest expense                              6,186         5,277        17,385         16,001
                                            -----------   -----------   -----------    -----------
Income before income taxes                        2,042         2,018         6,438          5,658

Provision for income taxes                          589           666         2,085          1,874
                                            -----------   -----------   -----------    -----------
Net income                                  $     1,453   $     1,352   $     4,353    $     3,784
                                            ===========   ===========   ===========    ===========

Basic weighted average number of shares       5,148,138     5,148,138     5,148,138      5,148,138
Diluted weighted average number of shares     5,149,953     5,150,700     5,149,717      5,151,467
Basic net income per share                  $      0.28   $      0.26   $      0.85    $      0.74
Diluted net income per share                $      0.28   $      0.26   $      0.85    $      0.73
Dividends per share                         $      0.09   $     0.085   $      0.27    $     0.255
</TABLE>
See Notes to the Unaudited Condensed Consolidated Financial Statements

                                       3
<PAGE>

               THE PEOPLES BANCTRUST COMPANY, INC., SELMA, ALABAMA
            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
                                                        In Thousands         In Thousands
                                                         (Unaudited)          (Unaudited)
                                                     Three Months Ended    Nine Months Ended
                                                        September 30,         September 30,
                                                     -------------------   ------------------
                                                       2000      1999       2000       1999
                                                       ----      ----       ----       ----
<S>                                                  <C>       <C>        <C>        <C>
Net income                                           $ 1,453   $ 1,352    $ 4,353    $ 3,784
Other comprehensive income:
Unrealized gains (losses) on securities
      available for sale during the period               846      (499)       (40)    (3,204)
Less: reclassification adjustment for net
 gains (losses) included in net income                    17        42         (7)       204
                                                     -------   -------    -------    -------
Other comprehensive income (loss)                        829      (541)       (33)    (3,408)
Income tax provision (benefit) related to items of
   other Comprehensive income (loss)                     282      (173)       (11)    (1,091)
                                                     -------   -------    -------    -------
Other comprehensive income (loss), net of tax            547      (368)       (22)    (2,317)
                                                     -------   -------    -------    -------
Comprehensive income, net of tax                     $ 2,000   $   984    $ 4,331    $ 1,467
                                                     =======   =======    =======    =======
</TABLE>
See Notes to the Unaudited Condensed Consolidated Financial Statements

                                       4
<PAGE>
               THE PEOPLES BANCTRUST COMPANY, INC., SELMA, ALABAMA
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                               In Thousands
                                                                (Unaudited)
                                                             Nine Months Ended
                                                               September 30,
                                                          ---------------------
                                                            2000        1999
                                                            ----        ----

Net cash provided by operating activities                 $  6,542    $  4,975
                                                          --------    --------

Cash flow from investing activities
  Proceeds from sales of available-for-sale securities       8,473      28,957
  Proceeds from maturity and call of available-for-sale
    securities                                               1,450      17,409
  Purchases of available-for-sale securities               (12,659)    (32,142)
  Net increase in loans                                    (27,785)    (56,901)
  Purchases of bank premises and equipment                  (2,686)     (3,728)
  Proceeds from sale of bank premises and equipment             29         310
  Investment in other real estate and equipment                 --        (117)
  Proceeds from sale of other real estate                      535         269
  Investment in low income housing                            (101)       (105)
                                                          --------    --------
Net cash used by investing activities                      (32,744)    (46,048)
                                                          --------    --------
Cash flow from financing activities
  Increase in deposits                                      29,174      15,777
  Net (decrease) increase in borrowed funds                (14,512)     19,488
  Dividends paid                                            (1,390)     (1,313)
                                                          --------    --------
Net cash provided  by financing activities                  13,272      33,952
                                                          --------    --------
Net decrease in cash and cash equivalents                  (12,930)     (7,121)
Cash and cash equivalents beginning of year                 44,472      36,267
                                                          --------    --------
Cash and cash equivalents end of period                   $ 31,542    $ 29,146
                                                          ========    ========

Cash paid for interest                                    $ 16,017    $ 13,095
Cash paid for income taxes                                $  1,975    $  1,800

See Notes to the Unaudited Condensed Consolidated Financial Statements

               THE PEOPLES BANCTRUST COMPANY, INC. AND SUBSIDIARY

Notes to the Unaudited Condensed Consolidated Financial Statements

Accounting Policies:

     The accompanying unaudited consolidated financial statements of The Peoples
BancTrust Company, Inc, (the "Company") and its subsidiary, The Peoples Bank and
Trust Company ("Peoples Bank"),  along with its subsidiaries Loan Express,  Inc.
and The Peoples  Insurance  Agency,  Inc. have been prepared in accordance  with
generally accepted  accounting  principles for interim  information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes  required by generally accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management,  all  adjustments  (consisting  only of normal  recurring  accruals)
considered necessary for a fair presentation have been included.  The

                                       5
<PAGE>

results  of  operations  are  not  necessarily  indicative  of  the  results  of
operations  for  the  full  year  or any  other  interim  periods.  For  further
information refer to the consolidated financial statements and footnotes thereto
included in the Company's Annual Report on Form 10-K for the year-ended December
31, 1999.

Commitments and Contingencies:

     The Company and its  subsidiaries are from time to time defendants in legal
actions arising from normal business activities.  Management does not anticipate
that the ultimate liability arising from litigation outstanding at September 30,
2000,  will  have  a  materially  adverse  effect  on  the  Company's  financial
statements.

Derivatives and Hedging Activities:

     In June 1998, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standards No. 133, Accounting for Derivative
Instruments and Hedging  Activities  ("SFAS 133").  SFAS 133,  effective for all
fiscal  quarters of fiscal  years  beginning  after June 15,  1999,  establishes
accounting  and  reporting  for  derivative   instruments,   including   certain
derivative instruments embedded in other contracts,  by requiring that an entity
recognize all  derivatives  as either assets or  liabilities in the statement of
financial  position  and  measure  those  instruments  at  fair  value.  It also
establishes  the  condition  under which a derivative  should be  designated  as
hedging a specific type of exposure and requires the company to establish at the
inception of the hedge the method and  measurement  approach  used to assess its
effectiveness.

     SFAS 133 as amended by SFAS 137, is  effective  for all fiscal  quarters of
fiscal years  beginning  after June 15,  2000.  The Company does not believe the
adoption of SFAS 133 will have a significant impact on its financial  statements
and disclosures.

                                       6
<PAGE>

     Earnings Per Share:

     The  following  tables  reflect the  reconciliation  of the  numerator  and
denominator of the basic EPS  computation to the diluted EPS computation for the
three months and nine months ended  September  30, 2000 and 1999 (In  thousands,
except for per share data):
<TABLE>
<CAPTION>
                                                                              2000
                                                 ----------------------------------------------------------------
                                                            Basic                            Diluted
                                                    Q-T-D           Y-T-D            Q-T-D            Y-T-D
                                                    -----           -----            -----            -----
<S>                                              <C>              <C>             <C>             <C>
Net income                                       $  1,453         $  4,353        $   1,453       $   4,353

Average shares outstanding                          5,148            5,148            5,148           5,148
  Effect of dilutive securities stock
   options                                                                                2               2
                                                                                  ---------       ---------
Diluted average shares outstanding                                                    5,150           5,150
Earnings per share:
   Net income                                    $   0.28         $   0.85        $    0.28       $    0.85



                                                                              1999
                                                 ----------------------------------------------------------------
                                                            Basic                            Diluted
                                                    Q-T-D           Y-T-D            Q-T-D            Y-T-D
                                                    -----           -----            -----            -----

Net income                                       $  1,352         $  3,784        $   1,352       $   3,784

Average shares outstanding                          5,148            5,148            5,148           5,148
  Effect of dilutive securities stock
   options                                                                                3               3
                                                                                  ---------       ---------
Diluted average shares outstanding                                                    5,151           5,151
Earnings per share:
   Net income                                    $   0.26         $   0.74        $    0.26       $    0.73
</TABLE>
                                       7
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

                                     GENERAL

The  following  analysis  focuses  on the  financial  condition  and  results of
operations of The Peoples BancTrust Company, Inc. (the "Company"), and should be
read in conjunction with the consolidated  financial statements included in this
report.

Management's discussion and analysis includes certain forward-looking statements
addressing,  among other  things,  the Company's  prospects for earnings,  asset
growth and net interest margin.  Forward-looking  statements are accompanied by,
and  identified  with,  such  terms  as  "anticipates,"  "believes,"  "expects,"
"intends,"  and similar  phrases.  Management's  expectations  for the Company's
future necessarily  involve a number of assumptions and estimates.  Factors that
could cause  actual  results to differ from the  expectations  expressed  herein
include:  substantial  changes in  interest  rates and  changes  in the  general
economy,  as  well  as  changes  in the  Company's  strategies  for  credit-risk
management,   interest-rate   risk   management   and   investment   activities.
Accordingly, any forward-looking statements included herein do not purport to be
predictions of future events or circumstances and may not be realized.

                               FINANCIAL CONDITION

LOANS

Loans, net of unearned income, rose $27,637,000 to $464,369,000 at September 30,
2000, from  $436,732,000  at December 31, 1999.  Strong demand in the commercial
real  estate  section  of the loan  portfolio  was the  primary  reason for this
increase.

INVESTMENTS

Total investment  securities were $122,176,000 at September 30, 2000 as compared
to $119,559,000 on December 31, 1999. This represents an increase of $2,617,000.
Both  deposit  growth,  as well as  reductions  in cash  and  cash  equivalents,
contributed to this increase in investment securities.

At year-end 1999, and at September 30, 2000, the entire investment portfolio was
classified   as   "available-for-sale",   resulting  in  the   portfolio   being
marked-to-market.  At December 31, 1999, the portfolio had a net unrealized loss
(net of taxes) of $1,647,000 as compared to a net unrealized loss (net of taxes)
of $1,669,000 at September 30, 2000.  This increase in the net  unrealized  loss
(net of  taxes)  was  primarily  the  result of rising  interest  rates  between
December 31, 1999 and September 30, 2000, which caused  reductions in the market
value of fixed rate bonds during this period.

SHORT-TERM INVESTMENTS

Short-term  investments  totaled $9,255,000 at September 30, 2000 as compared to
$4,663,000  at  December  31,  1999,  an  increase  of  $4,592,000.   Short-term
investments are comprised of federal funds sold, and securities  purchased under
agreements  to resell.  Both deposit  growth,  as well as reductions in cash and
cash  equivalents,   contributed  to  this  increase  in  short-term  investment
securities.

ALLOWANCE FOR LOAN LOSSES

Management's  estimate of the  uncollectable  loans  within the  Company's  loan
portfolio is  represented  by the allowance  for loan losses.  The allowance for
loan  losses  is  established  through  charges  to  earnings  in the  form of a
provision  for loan losses.  A loan is charged  against the  allowance  for loan
losses when management  determines that it is probable that the repayment of the
principal amount of a loan will not be made in accordance with the loan's terms.
Should a loan  that has been  charged  off be  recovered,  either  partially  or
entirely,  it is credited back to the  allowance.  Periodic  reviews of the loan
portfolio,  that  include  analysis  of such  factors  as current  and  expected
economic conditions, historical loss experience and levels of non-accruing loans
and  delinquencies,  determine  the

                                       8
<PAGE>

appropriate  level at which to maintain the allowance  for loan losses.  Because
the  allowance is based on  assumptions  and  subjective  judgements,  it is not
necessarily reflective of the charge-offs that may ultimately occur.

At September 30, 2000, the Company's  allowance for loan losses had a balance of
$6,042,000  as compared to  $5,333,000  at December 31, 1999.  As a result,  the
ratio of the allowance to total loans net of unearned income was 1.30% and 1.22%
at  September  30, 2000 and December 31,  1999,  respectively.  Loans  requiring
special  attention  because of  potential  weaknesses  fell from  $8,180,000  at
December 31, 1999, to $7,073,000 at September 30, 2000. As a percentage of total
loans  net of  unearned  interest,  non-accruing  loans  decreased  to  0.50% at
September 30, 2000,  as compared to 0.65% at December 31, 1999.  The coverage of
the allowance to non-accruing  loans was 260% and 188% at September 30, 2000 and
December 31, 1999, respectively.  The current level of allowance for loan losses
exceeds the minimum  requirements  set forth by  regulatory  authorities.  It is
management's belief that, at its current level, the allowance for loan losses is
sufficient to absorb any potential  losses  currently  existing in the Company's
loan portfolio.

DEPOSITS

At  September  30,  2000,  total  deposits had  increased  to  $518,515,000,  or
$29,174,000    from   a   December   31,   1999    balance   of    $489,341,000.
Non-interest-bearing  deposits  increased $998,000 between December 31, 1999 and
September 30, 2000, while  interest-bearing  deposits increased  $28,176,000 for
the same period.

Between  December 31, 1999 and  September  30, 2000 the Company  entered two new
markets,  both of which have generated deposit growth.  During July of 2000, the
Company   acquired   $10,000,000  of  deposits  placed  by  brokers   ("Brokered
deposits").  Brokered  deposits are more likely to be withdrawn from the Company
than other,  more  traditional,  types of  deposits.  These  deposits  are fully
insured by the  Federal  Deposit  Insurance  Corporation,  and are  deployed  by
management to meet short-term funding needs.  Having entered two new markets and
the acceptance or brokered  deposits  contributed to the  significant  growth in
total deposits.

LIQUIDITY

Liquidity  describes  the  Company's  ability to meet its needs for cash.  Those
needs primarily include lending, withdrawal demands of customers and the payment
of operating  expenses.  The liability base provides  liquidity  through deposit
growth,  the rollover of maturing deposits and accessibility to external sources
of funds, ("borrowed funds").

From time to time, the Company  utilizesshort-term  borrowed funds. At September
30, 2000,  short-term  borrowings  in the form of federal  funds  purchased  and
securities sold under agreement to repurchase totaled $4,679,000, as compared to
$34,789,000 at December 31, 1999.  This  significant  reduction in the amount of
short-term  borrowings  was  primarily  due to the Company  having repaid monies
borrowed  to fund  several  large,  short-term  loans  issued  to  customers  at
year-end,  as well as the repayment of funds  borrowed  related to the Company's
year 2000 contingency plan guidelines.

Other  borrowed  funds  increased  to  $57,702,000  at  September  30, 2000 from
$42,104,000  at  December  31,  2000.  Other  borrowed  funds  is  comprised  of
borrowings  from the  Federal  Home Loan Bank of Atlanta.  This  increase is the
result of having funded loan growth that occurred  between December 31, 1999 and
September 30, 2000.

STOCKHOLDERS' EQUITY

Total  stockholders'  equity at September 30, 2000 was $60,846,000,  compared to
$57,905,000 at December 31, 1999.  This increase of $2,941,000 was accounted for
as follows: $4,353,000 year-to-date earnings,  $1,390,000 common stock dividends
and $22,000 additional net unrealized loss on available-for-sale securities.

                                       9
<PAGE>

Risk-based capital  regulations  require all bank holding companies and banks to
achieve and maintain a minimum  total capital to  risk-weighted  assets ratio of
8.00%, at least half of which must be in the form of Tier 1 capital  (consisting
of  stockholders'  equity less  goodwill).  The  following  table  indicates the
Company's  Tier 1 capital  ratio and total  capital  ratio at September 30, 2000
were 11.45% and 12.70%,  respectively.  The Company maintained, at September 30,
2000, a leverage  ratio of Tier 1 capital to total  assets of 8.85%  compared to
the minimum regulatory standard of 4.00% required of the strongest companies and
banks.  In  addition,  the table  indicates  that the  ratios  of the  Company's
subsidiary  bank, The Peoples Bank and Trust Co. ("Peoples  Bank"),  also exceed
the minimum requirements of the regulation.
<TABLE>
<CAPTION>
                                                             Risk-Based Capital Ratios & Leverage Ratios
                                                                       As of September 30, 2000
                                       ------------------------------------------------------------------------------

RISK-BASED CAPITAL RATIOS                                                Dollars in Thousands
---------------------------------------
                                                          The Company                           Peoples Bank
                                                  ----------------------------           ----------------------------
<S>                                                     <C>            <C>                     <C>            <C>
Tier 1 Capital                                          $  54,087      11.45%                  $  54,272      11.55%
Tier 1 Capital - Minimum Required                          18,889       4.00%                     18,792       4.00%
                                                  ----------------------------           ----------------------------
Excess                                                  $  35,198       7.45%                  $  35,480       7.55%

Total Capital                                           $  59,992      12.70%                  $  60,314      12.84%
Total Capital - Minimum Required                           37,779       8.00%                     37,583       8.00%
                                                  ----------------------------           ----------------------------
Excess                                                  $  22,213       4.70%                  $  22,731       4.84%

Net risk-weighted assets                                $ 472,234                              $ 469,792

LEVERAGE RATIOS
---------------------------------------
Total Tier 1 Capital                                    $  54,087       8.85%                  $  54,272       8.89%
Minimum Leverage Requirement                               24,441       4.00%                     24,421       4.00%
                                                  ----------------------------           ----------------------------
Excess                                                  $  29,646       4.85%                  $  29,851       4.89%

Average Total Assets,
      Net of all intangibles                            $ 611,033                              $ 610,526
</TABLE>
                                       10
<PAGE>

                              RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2000,  COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1999

The  Company's  profitability,  like  that of many  financial  institutions,  is
dependent to a large extent upon its net interest  income.  Simply  stated,  net
interest income is the difference  between  interest income on  interest-earning
assets, such as loans and investments,  and interest expense on interest-bearing
liabilities, such as deposits and borrowings.

Interest  income  for the third  quarter  ended  September  30,  2000 (the "2000
quarter") totaled  $13,372,000,  compared to $11,384,000 for the same quarter of
1999 (the "1999 quarter").  The increase of $1,988,000 was primarily due to both
an increase in the average  balance of the Company's  loan  portfolio and in the
average  yield  earned on said  portfolio,  having been  partially  offset by an
increase in interest paid on deposits.

The 2000 quarter saw a decrease of $108,000 in  investment  income when compared
to the 1999 quarter.  Interest income on investments  totaled $1,804,000 for the
2000 quarter as opposed to  $1,912,000  for the same period in 1999. A reduction
in the average  volume of  investment  securities  during the 2000  quarter,  as
compared to the 1999 quarter, was the primary reason for this decline.

Interest  income from business  loans totaled  $3,110,000  for the 2000 quarter.
This  represents an increase of $748,000 when compared to $2,362,000 of interest
income for the 1999  quarter.  Increases  in both the  average  volume and yield
earned on these loans  contributed  to the  increase  in income  between the two
quarters.

Personal loan interest income  decreased to $2,747,000 for the 2000 quarter from
$2,933,000  for the 1999 quarter.  A decrease in the average  volume of personal
loans during the 2000 quarter, as compared to the 1999 quarter,  was largely the
cause for this $186,000 reduction.

Interest  income  earned on real estate loans  totaled  $5,179,000  for the 2000
quarter,  as compared  to  $3,902,000  for the 1999  quarter.  This  increase of
$1,277,000  between the 1999  quarter and the 2000  quarter  was  primarily  the
result of a  significant  increase in the average  balance of real estate  loans
held.

Interest paid on deposits totaled  $5,459,000 for the 2000 quarter,  as compared
to $4,150,000 for the 1999 quarter.  Both the average cost and average volume of
interest  bearing  deposits  were  higher in the 2000  quarter  than in the 1999
quarter, thus resulting in the $1,309,000 increase in interest paid.

The 2000 quarter  provision for loan losses charge was $782,000,  as compared to
$1,290,000 for the 1999 quarter.  The Company  experienced lower loan charge off
activity during the 2000 quarter than during the 1999 quarter, thus contributing
to the $508,000  reduction in the provision  for loan losses charge  between the
two quarters.

Other non-interest income for the 2000 quarter totaled $1,858,000.  For the 1999
quarter, other non-interest income totaled $1,886,000.

Non-interest  expense increased $710,000 from the 1999 quarter to $5,987,000 for
the 2000 quarter.  Non-interest expense for the 1999 quarter totaled $5,277,000.
Higher  personnel and premises costs  relative to ongoing market  expansion were
the primary  reasons for this increase in noninterest  expense  between the 1999
and 2000 quarters.

Income before taxes for the 2000 quarter was $2,042,000,  compared to $2,018,000
for the 1999  quarter.  For the 2000  quarter,  the  provision  for income taxes
totaled $589,000,  as compared to $666,000 for the 1999 quarter.  This reduction
in income tax  provision  between the two  quarters is the result of the Company
recognizing  income tax credits,  and the tax benefit of flow through  losses on
low income housing projects in which it is a limited partner. The resulting 2000
quarter net income was  $1,453,000,  compared to net income for the 1999 quarter
of  $1,352,000.  Earnings per share for the 2000  quarter was $.28,  compared to
$.26 for the 1999 quarter.

NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
2000

Interest   income  for  the  nine  months  ended   September  30,  2000  totaled
$38,085,000,  an increase of $5,543,000 from  $32,542,000 for the same period in
1999. The average  volume of interest  earning  assets rose to  $569,713,000  at

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<PAGE>

September 30, 2000,  representing an increase of $52,859,000  over the September
30, 1999 level of  $516,854,000.  The increase in average volume,  along with an
increase in average annual yield,  resulted in the increase in interest  income.
The average  annual yield on interest  earning  assets for the nine months ended
September 30, 2000 was 8.91%, whereas for the same period in 1999 it was 8.39%.

Interest income on the Company's  investment  securities  portfolio for the nine
months ended  September  30, 2000 totaled  $5,435,000,  which  translates  to an
average  annual yield of 6.16%.  For the nine months ended  September  30, 1999,
income from  investment  securities  totaled  $5,896,000,  resulting  in a 5.96%
average annual yield. The investment  securities portfolio had an average volume
at September 30, 2000 of $117,562,000,  that when compared to the average volume
for the same period in 1999 of $131,800,000,  explains the reduction in interest
income, given the aforementioned increase in average annual yield.

Interest  income on the Company's  loans totaled  $32,189,000 for the nine-month
period ended September 30, 2000. For the same period in 1999, interest income on
loans totaled $26,331,000. Average loans for the nine months ended September 30,
2000 were  $441,889,000,  yielding a 9.71% average annual  return.  For the same
period in 1999,  average loans totaled  $375,899,000,  earning an average annual
yield of 9.34%.  The $5,858,000  increase in loan interest income was the result
of both higher average loan volume and higher average annual loan yields.

Interest  expense  on  interest-bearing  deposits  for  the  nine  months  ended
September 30, 2000 totaled $14,976,000,  with an average cost for these deposits
of 4.58%.  For the same period in 1999,  interest  expense on  deposits  totaled
$12,001,000,   with  an  average  cost  of  3.99%.   The  average   balances  of
interest-bearing  deposits for the nine months ended September 30, 2000 and 1999
were $435,689,000 and $401,533,000,  respectively.  Both the increase in average
deposit cost and average  deposit  balances were  attributable to the $2,975,000
increase in interest expense on deposits.

The resulting net interest income of the Company for nine months ended September
30, 2000 totaled $20,662,000. This represents an increase of $1,693,000 over net
interest income for the same period in 1999 of $18,969,000.  Net interest margin
for the Company for the nine months ended September 30, 2000 was 4.84%,  whereas
for the same period in 1999 it was 4.89%.

Provision  for loan losses for the nine months ended  September 30, 2000 totaled
$2,347,000,  as compared to $2,870,000  for the same period in 1999. The Company
experienced relatively favorable loan charge off activity during the nine months
ended  September  30, 2000.  Given this,  the Company was able to charge a lower
provision  for loan  losses  against  earnings.  Provision  for loan  losses are
charges made against net interest income,  and applied to the allowance for loan
losses. See "Financial Condition--Allowance for Loan Losses" above.

During the nine months ended  September 30, 2000,  non-interest  income  totaled
$5,515,000, as compared to $5,356,000 for the same period in 1999. This $159,000
increase was primarily due to the Company having increased its customer base.

Non-interest  expense  for the nine months  ended  September  30,  2000  totaled
$17,385,000  as  compared  to  $16,001,000  for the same  period  of  1999.  The
$1,384,000  increase is primarily  accounted  for in  additional  personnel  and
facilities expenses associated with the Company's ongoing market expansion.

For the nine months ended  September  30,  2000,  income  before  taxes  totaled
$6,438,000,  compared to $5,658,000  for the same period in 1999. The income tax
provision for nine months ended September 30, 2000 totaled  $2,085,000,  whereas
for the same period in 1999 it totaled $1,874,000.  The resulting net income for
the nine  months  ended  September  30,  2000  totaled  $4,353,000,  compared to
$3,784,000 for the same period in 1999.

                       IMPACT OF NEW ACCOUNTING STANDARDS

     See Notes to the Unaudited Condensed Consolidated Financial Statements.

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<PAGE>

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest  sensitivity is one measure of the vulnerability of earnings to changes
in the general level of interest rates. Whenever interest-earning assets reprice
to market interest rates at a different pace than interest-bearing  liabilities,
interest income  performance  will be affected  favorably or unfavorably  during
periods of changes in general  interest  rates.  Management is unable to predict
future changes in market rates and their impact on the Company's  profitability.
Management  believes,  however,  that the  Company's  current  rate  sensitivity
position is well matched,  indicating  the  assumption of minimal  interest rate
risk.  Management  does not believe there to have been any material shift in the
relationship  between the maturity  characteristics of interest-earning  assets,
and interest-bearing liabilities since December 31, 1999, and, consequently,  no
material change in interest rate risk exposure.

                           PART II - OTHER INFORMATION
ITEM 1.   LEGAL PROCEEDINGS

Shelton Trent Merriweather v. The Peoples Bank and Trust Company, et al, Circuit
Court of Dallas County, Alabama, Case No. CV-2000-318. This complaint was served
on Peoples Bank on October 2, 2000. The complaint claims unspecified  amounts of
compensatory  and  punitive  damages  based on a mortgage  loan and sale of life
insurance to the  plaintiff by the Peoples Bank which  occurred in July of 1994.
The plaintiff  alleges that the defendants  charged the  plaintiff,  without his
permission,  for credit life  insurance,  which he never  received  and that the
defendant  Peoples Bank amortized the  plaintiff's  mortgage at an amount higher
than what he was told was the amount of the loan.  The complaint  avers that the
actions  of the  defendants  constitute  negligence,  wanton  and/or  fraudulent
conduct,  misrepresentations,  suppression,  deception,  breach of contract, and
conspiracy. The Peoples Bank denies the allegations of the complaint and intends
to vigorously  defend the case.  Based on the  information  now  available,  the
Company  considers  that the suit is without merit.  However,  there has been no
discovery  or hearings in the case,  and it is premature to attempt to determine
any possible exposure.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits
         Exhibit 27 - Financial Data Schedule (SEC use only)

(b)      Not applicable.

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<PAGE>
                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                               The Peoples BancTrust Company, Inc.


Date:  November 9, 2000        /s/ Richard P. Morthland
                               ---------------------------------------------
                               Richard P. Morthland
                               Chairman and Chief Executive Officer


Date:  November 9, 2000        /s/ Andrew C. Bearden, Jr.
                               ---------------------------------------------
                               Andrew C. Bearden, Jr.
                               Executive Vice President and Chief Financial
                                 Officer


Date:  November 9, 2000        /s/ Thomas P. Wilbourne
                               ---------------------------------------------
                               Thomas P. Wilbourne
                               Assistant Vice President and Assistant Treasurer
                               (Principal Accounting Officer)

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