FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

(Mark One)

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


                For the quarterly period ended September 30, 2001
                                               -------------------

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)
     OF THE  SECURITIES EXCHANGE ACT OF 1934


         For the transition period from ____________ to _______________

                           Commission File No. 0-25217
                                               -------

                             PEOPLES BANKCORP, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         New York                                              16-1560886
--------------------------------------------------------------------------------
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                            Identification Number)

825 State Street
Ogdensburg, New York                                              13669
--------------------------------------------------------------------------------
(Address of principal                                          (Zip Code)
executive office)

         Issuer's telephone number, including area code: (315) 393-4340
                                                         --------------

Check  whether  the issuer  (1) has 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  [ ]

As of November 14, 2001,  the latest  practicable  date,  131,979  shares of the
registrant's   common  stock,   $.01  par  value  per  share,  were  issued  and
outstanding.

Transitional small business disclosure format (check one):

Yes [ ]                                            No  [X]
<PAGE>

                          PART I. FINANCIAL STATEMENTS

Item 1.   Financial Statements

         Consolidated Statements  of Financial  Condition as
         of September 30, 2001 (unaudited) and December 31, 2000.............3

         Consolidated  Statements  of Income for the Three and
         Nine Months Ended September 30, 2001 and 2000 (unaudited)...........4

         Consolidated Statements of Cash Flows for the Nine
         Months Ended September 30, 2001 and 2000 (unaudited)................5

         Notes to Consolidated Financial Statements..........................7


Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations...........................................8


                           PART II. OTHER INFORMATION

Item 1.     Legal Proceedings................................................11
Item 2.     Changes in Securities and Use of Proceeds........................11
Item 3.     Defaults Upon Senior Securities..................................11
Item 4.     Submission of Matters to a Vote of Security Holders..............11
Item 5.     Other Information................................................11
Item 6.     Exhibits and Reports on Form 8-K.................................11

                                   SIGNATURES

                                       2
<PAGE>
                          PART I. FINANCIAL STATEMENTS

                             PEOPLES BANKCORP, INC.
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
                      (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                                                        September 30,     December 31,
                         ASSETS                                                              2001             2000
                                                                                        -------------     -----------
                                                                                                          (Audited)
<S>                                                                                     <C>               <C>
Cash and Cash Equivalents:
     Cash and due from banks                                                            $     877         $     605
     Interest-bearing deposits in other banks                                                 167               204
                                                                                        ---------         ---------
         Total cash and cash equivalents                                                    1,044               809

Securities available-for-sale - at fair value                                               4,343             1,017
Securities held-to-maturity (fair value of $3,013 (unaudited)
    at September 30, 2001 and $4,192 at December 31, 2000)                                  2,926             4,126
Loans, net of deferred fees                                                                19,601            20,688
         Less allowance for loan losses                                                       176               176
                                                                                        ---------         ---------
                  Net loans                                                                19,425            20,512

Real estate owned                                                                              24                --
Premises and equipment, net                                                                   425               444
Federal Home Loan Bank stock, at cost-required by law                                         162               155
Accrued interest receivable                                                                   167               179
Other assets                                                                                   37                19
                                                                                        ---------         ---------
TOTAL ASSETS                                                                            $  28,553         $  27,261
                                                                                        =========         =========

                  LIABILITIES AND EQUITY
Liabilities:
     Deposits:
     Demand accounts - non-interest bearing                                             $     716         $     813
     Savings and club accounts - interest bearing                                           3,259             2,930
     Time certificates - interest bearing                                                  18,261            18,075
     NOW and money market accounts - interest bearing                                       2,092             1,927
                                                                                        ---------         ---------
                  Total deposits                                                           24,328            23,745
                                                                                        ---------         ---------

Borrowed money                                                                              1,000               500
Advance payments by borrowers for property taxes and insurance                                  2                 2
Other liabilities                                                                             121                86
                                                                                        ---------         ---------
                  Total liabilities                                                        25,451            24,333
                                                                                        ---------         ---------
Commitments and contingencies

Stockholders' Equity:
     Preferred stock $.01 par value per share, 500,000 shares authorized,
        no shares issued or outstanding                                                        --                --
     Common stock of $.01 par value, 3,000,000
       shares authorized, 132,979 and 132,390  shares issued and
       outstanding at June 30, 2001 and December 31, 2000                                       1                 1
     Additional paid-in capital                                                             1,002             1,003
     Retained earnings - substantially restricted                                           2,128             2,036
     Accumulated other comprehensive income                                                    76                --
     Loan to employee stock ownership plan                                                    (86)              (86)
     Common stock in treasury, at cost (1,431 shares at June 30, 2001 and
            2,000 shares at December 31, 2000)                                                (19)              (26)
                                                                                        ---------         ---------
                  Total stockholders' equity                                                3,102         $   2,928
                                                                                        ---------         ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                              $  28,553         $  27,261
                                                                                        =========         =========
</TABLE>

See accompanying notes to consolidated financial statements.


                                       3
<PAGE>

                             PEOPLES BANKCORP, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
         FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                      (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                           Three Months Ended                Nine Months Ended
                                                            September 30,                     September 30,
                                                     ------------------------------     ---------------------------
                                                       2001              2000             2001              2000
                                                     --------          --------         --------          --------
<S>                                                  <C>               <C>              <C>               <C>
Interest income
  Loans                                              $     393         $     433        $   1,233         $   1,264
  Securities                                               112                76              329               212
  Other short-term investments                               8                13               39                55
                                                     ---------         ---------        ---------         ---------
         Total interest income                             513               522            1,601             1,531
                                                     ---------         ---------        ---------         ---------
Interest expense:
  Deposits                                                 302               293              929               824
  Borrowings                                                10                 6               45                42
                                                     ---------         ---------        ---------         ---------
         Total interest expense                            312               299              974               866
                                                     ---------         ---------        ---------         ---------

         Net interest income                               201               223              627               665

Provision for loan losses                                   24                 6               45                25
                                                     ---------         ---------        ---------         ---------
         Net interest income after provision
              for loan losses                              177               217              582               640
                                                     ---------         ---------        ---------         ---------
Non-interest income:
  Service charges                                            6                 9               25                28
  Other                                                      7                 3               21                12
                                                     ---------         ---------        ---------         ---------
         Total non-interest income                          13                12               46                40
                                                     ---------         ---------        ---------         ---------
Non-interest expense:
  Salaries and employee benefits                            80                84              247               228
  Director fees                                             13                12               49                40
  Building, occupancy and equipment                         17                15               49                44
  Data processing                                            9                 9               28                27
  Postage and supplies                                       6                 7               23                23
  Deposit insurance premium                                  1                 1                3                 3
  Insurance                                                  3                 5                9                15
  Other                                                     28                32               86               106
                                                     ---------         ---------        ---------         ---------
         Total non-interest expense                        157               165              494               486
                                                     ---------         ---------        ---------         ---------

         Income before income tax expense                   33                64              134               194

Income tax expense                                           8                24               43                72
                                                     ---------         ---------        ---------         ---------

         Net income                                  $      25         $      40        $      91         $     122
                                                     =========         =========        =========         =========
Earnings per share
  Basic                                              $     .19         $    .30         $     .69         $    .91
  Diluted                                            $     .18         $    .30         $     .68         $    .91
  Weighted average shares outstanding                      132               133              132              134
</TABLE>


See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

                             PEOPLES BANKCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                    Nine Months Ended
                                                                                      September 30,
                                                                                -------------------------
                                                                                  2001             2000
                                                                                --------         --------
<S>                                                                             <C>              <C>
Cash flows from operating activities:
  Net income                                                                    $     91         $     122
  Adjustment to reconcile net income to net cash
    provided by operating activities:
     Depreciation and amortization                                                    19                19
     Decrease in accrued interest receivable                                          12                (8)
     Provision for loan losses                                                        45                25
     Net amortization (accretion) of premium/discounts                                (9)               --
     Increase in other liabilities                                                    42                24
     Deferred income taxes                                                            --                --
     Increase in other assets                                                        (18)                1
                                                                                --------         ---------
         Net cash provided by operating activities                                   182               183
                                                                                --------         ---------

Cash flows from investing activities:
  Net (increase) decrease in loans                                                 1,018               (77)
  Purchases of securities available-for-sale                                      (3,996)               --
  Proceeds from maturities and principal reductions
    of securities available-for-sale                                                 804                --
  Purchases of securities held-to-maturity                                            --              (750)
  Proceeds from maturities and principal reductions
    of securities held-to-maturity                                                 1,151               437
  Purchase of FHLB stock                                                              (7)              (16)
  Purchase of fixed assets                                                            --                (6)
                                                                                --------         ---------
         Net cash provided (used) by investing activities                         (1,030)             (412)
                                                                                --------         ---------

Cash flows from financing activities:
  Increase in deposits                                                               583             1,016
  Decrease in advance payments and borrowers for
     property taxes and insurance                                                     --                (1)
  Purchase of treasury stock                                                          --               (26)
  Borrowings from FHLB                                                             3,200                --
  Repayments to FHLB                                                              (2,700)           (1,500)
                                                                                --------         ---------
         Net cash provided by financing activities                                 1,083              (511)

Net increase in cash and cash equivalents                                            235              (740)
Cash and cash equivalents at beginning of period                                     809             1,457
                                                                                --------         ---------
Cash and cash equivalents at end of period                                      $  1,044         $     717
                                                                                ========         =========

                                                                                 (continued)
</TABLE>


                                       5
<PAGE>

                             PEOPLES BANKCORP, INC.
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                  NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                    Nine Months Ended
                                                                                       September 30,
                                                                                -------------------------
                                                                                  2001             2000
                                                                                --------         --------
<S>                                                                             <C>              <C>
Supplemental Disclosure of Cash Flow Information:
  Non-cash investing activities:
     Loans transferred to real estate owned through foreclosure                 $     --         $      --
    Additions to real estate owned                                                    24                --
    Treasury stock utilized for MRP                                                    7                --

  Cash paid during the period for:
     Interest                                                                        974               866
     Income taxes                                                                     44                58
                                                                                ========         =========
</TABLE>

                                       6
<PAGE>

                             PEOPLES BANKCORP, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              For the nine months ended September 30, 2001 and 2000


NOTE 1 - PEOPLES BANKCORP, INC.
------------------------------

Peoples  Bankcorp,  Inc. (the "Company") was incorporated  under the laws of the
State of New York for the purpose of becoming the holding  company of Ogdensburg
Federal Savings and Loan Association (the  "Association") in connection with the
Association's  conversion  from a federally  chartered  mutual  savings and loan
association to a federally chartered capital stock savings and loan association.
On November  22,  1998,  the Company  commenced a  subscription  offering of its
shares in connection with the Association's  conversion.  The Company's offering
and the Association's conversion closed on December 28, 1998. A total of 134,390
shares were sold at $10.00 per share.

NOTE 2 - BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
--------------------------------------------------------------

The accompanying unaudited financial statements have been prepared in accordance
with the  instructions  to Form  10-QSB and on the same  basis as the  Company's
audited  financial  statements.  In the opinion of management,  all adjustments,
consisting  of normal  recurring  accruals,  necessary  to  present  fairly  the
financial  position,  results  of  operations,  and cash  flows for the  interim
periods presented have been included. The results of operations for such interim
periods are not  necessarily  indicative  of the results  expected  for the full
year.

NOTE 3 - PLAN OF CONVERSION
---------------------------

On July 23, 1998, the Association's  Board of Directors formally approved a plan
("Plan")  to  convert  from  a  federally  chartered  mutual  savings  and  loan
association to a federally  chartered stock savings and loan association subject
to approval by the Association's  members and the Office of Thrift  Supervision.
The Plan called for the common stock of the  Association  to be purchased by the
Company and the common stock of the Company to be offered to various  parties in
a subscription  offering at a price based upon an  independent  appraisal of the
Association.  All requisite  approvals  were obtained and the conversion and the
Company's offering were consummated effective December 28, 1998.

Upon consummation of the conversion,  the Association  established a liquidation
account in an amount equal to its  retained  earnings as reflected in the latest
statement of financial  condition used in the final conversion  prospectus.  The
liquidation  account will be maintained for the benefit of certain depositors of
the  Association  who  continue  to  maintain  their  deposit  accounts  in  the
Association  after  conversion.  In the event of a complete  liquidation  of the
Association, such depositors will be entitled to receive a distribution from the
liquidation  account  before  any  liquidation  may be made with  respect to the
common stock.

                                       7
<PAGE>

            MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The Company's assets consist  primarily of its ownership of the Association.  As
such, the following discussion relates primarily to the Association's  financial
condition and results of  operations.  The  Association's  results of operations
depend  primarily  on net  interest  income,  which  is  determined  by (i)  the
difference between rates of interest it earns on its interest-earning assets and
the rates it pays on interest-bearing  liabilities  (interest rate spread),  and
(ii) the  relative  amounts  of  interest-earning  assets  and  interest-bearing
liabilities.

The  Association's  results of  operations  are also  affected  by  non-interest
expense, including primarily compensation and employee benefits, federal deposit
insurance  premiums and office  occupancy costs.  The  Association's  results of
operations  also  are  affected   significantly  by  general  and  economic  and
competitive   conditions,   particularly   changes  in  market  interest  rates,
government  policies  and actions of  regulatory  authorities,  all of which are
beyond its control.

FORWARD-LOOKING STATEMENTS

In addition to historical information contained herein, the following discussion
contains  forward-looking  statements  that  involve  risks  and  uncertainties.
Economic  circumstances,  the  Company's  operations  and the  Company's  actual
results could differ  significantly from those discussed in the  forward-looking
statements.  Some  of the  factors  that  could  cause  or  contribute  to  such
differences  are  discussed  herein but also include  changes in the economy and
interest rates in the nation and the Company's  market area  generally.  Some of
the  forward-looking  statements  included  herein are the statements  regarding
management's  determination  of the amount and  adequacy  of the  allowance  for
losses on loans and the effect of certain recent accounting pronouncements.

COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

Total assets at September 30, 2001 amounted to $28.6 million, a $1.3 million, or
4.74%, increase from December 31, 2000's level of $27.3 million. The increase in
total assets was centered in a $3.3 million increase in securities classified as
available for sale and a $235,000 increase in cash and cash  equivalents.  These
increases were funded by a combination of a $583,000  increase in total deposits
and a $500,000  increase in FHLB advances along with a $1.2 million reduction in
securities  held to maturity.  Net loans at September 30, 2001 amounted to $19.4
million  which  represented  as decrease of $1.1 million  from $20.5  million at
December 31, 2000. Total  liabilities at September 30, 2001 increased from $24.3
million at December 31, 2000, to $25.5 million at September 30, 2001.  Deposits,
which comprise the majority of total  liabilities,  amounted to $24.3 million at
September  30, 2001,  up from $23.7 million at December 31, 2000 for an increase
of $583,000,  or 2.46%,  with increases in all categories of deposits other than
demand deposits.  Total  stockholders'  equity at September 30, 2001 amounted to
$3.1  million as compared to $2.9 million at December 31, 2000 with the $174,000
increase attributable to the retention of earnings from the period and a $76,000
increase in accumulated other  comprehensive  income. At September 30, 2001, the
Association   was  in  compliance   with  all  applicable   regulatory   capital
requirements  with total core and  tangible  capital of $2.7  million  (9.48% of
adjusted total assets) and total  risk-based  capital of $2.8 million (20.7%) of
risk-weighted assets).

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND
2000

NET INCOME.  Net income for the three  months ended  September  30, 2001 and the
three  months  ended  September  30,  2000  amounted  to  $25,000  and  $40,000,
respectively.  The  $15,000 or 37.5%  decrease  was due  primarily  to a $22,000
decrease in net interest  income and an $18,000  increase in the  provision  for
loan losses, partially offset by a $16,000 decrease in income tax expense and an
$8,000 decrease in non-interest expense. For the nine months ended September 30,
2001, net income amounted to $91,000 as compared to $122,000 for the nine months
ended  September 30, 2000 with the $31,000 or 25.4% decrease  attributable  to a
$38,000 decrease in the net interest  income, a $29,000  reduction in income tax
expense,  a $20,000  increase  in the  provision  for loan  losses  and a $6,000
increase in non-interest income.

NET  INTEREST  INCOME.  Net interest  income  before  provision  for loan losses
decreased  by  $22,000,  or 9.87%,  from  $223,000  for the three  months  ended
September  30, 2000 to $201,000 for the three months ended  September  30, 2001.
The  decrease in net interest  income was due to a $13,000  increase in interest
expense as compared to the

                                       8
<PAGE>

three months ended  September 30, 2000 and a $9,000  decrease in total  interest
income.  The  increase  in  interest  expense  was due to a $9,000  increase  in
interest on deposits  which  reflected  the  decrease in the average  balance of
interest-bearing  deposits  during the three months ended  September 30, 2001 as
compared  to the same  period in 2000.  The  decrease  in  interest  income  was
primarily due to a $40,000 decrease in interest from loans,  partially offset by
a $36,000 increase in interest from the securities portfolio due to the purchase
of two GNMA  securities.  For the nine months  ended  September  30,  2001,  net
interest income before provision for loan losses amounted to $627,000, down from
$665,000  for the first half of fiscal year 2000 for a decrease of $38,000  with
the change due to a $108,000 increase in interest expense.

PROVISION FOR LOAN LOSSES.  For the three months ended  September 30, 2001,  the
Company made a $24,000  provision  for loan losses as compared to a provision of
$6,000 for the same period in 2000. The provision in 2001 reflected the level of
charge-offs during that period. For the nine months ended September 30, 2001 the
Company  made a  $45,000  provision  for loan  losses as  compared  to a $25,000
provision  for the same period in 2000.  The  increased  provision  in the first
three  quarters of fiscal year 2001 as compared to fiscal year 2000 was due to a
higher level of charge-offs during the period.

A  provision  for  losses on loans is  charged  to  earnings  to bring the total
allowance for loan losses to a level considered  appropriate by management based
on  historical  experience,  the  volume and type of  lending  conducted  by the
Association,  the status of past due  principal and interest  payments,  general
economic conditions, particularly as such conditions relate to the Association's
market  area,  and  other  factors   related  to  the   collectibility   of  the
Association's  loan  portfolio.  There  can be no  assurance  that the loan loss
allowance of the Association  will be adequate to cover losses on  nonperforming
assets in the future.

NON-INTEREST  INCOME.  Non-interest  income for the three months ended September
30, 2001  amounted to $13,000 as compared to $12,000 for the three  months ended
September  30, 2000 with the increase  attributable  to increased  other income,
offset by a reduction in service  charges.  For the nine months ended  September
30, 2001, non-interest income amounted to $46,000 as compared to $40,000 for the
nine months ended  September 30, 2000 with the increase due to a $9,000 increase
in other non-interest income, offset by a $3,000 reduction in service charges.

NON-INTEREST  EXPENSES.  Non-interest  expenses  for the third  quarter  of 2001
totaled  $157,000,  down from  $165,000  for the third  quarter of 2000 with the
decrease  primarily due to an $4,000 decrease in salaries and employee  benefits
and a $4,000  decrease in  miscellaneous  expenses.  For the nine  months  ended
September 30, 2001,  non-interest expenses totaled $494,000 which represented an
$8,000 increase as compared to the first three quarters of fiscal year 2000. The
increase  in the  first  three  quarters  of  fiscal  year  2001  was  primarily
attributable to a $19,000 increase in salaries and employee benefits,  partially
offset by a $20,000 decrease in miscellaneous expenses.

INCOME TAX EXPENSE.  Income tax expense for the three months ended September 30,
2001  amounted to $8,000,  a $16,000  decrease from the same period in 2000 with
the  decrease  primarily  attributable  to a  decrease  in pre-tax  income.  The
Company's effective tax rates for the respective periods were 24.24% and 37.50%.
For the nine months ended  September  30, 2001,  income tax expense  amounted to
$43,000,  down  from  $72,000  for the same  period  in 2000  with the  decrease
primarily due to the decreased level of pre-tax income. The Company's  effective
tax rates for the first three quarters of fiscal years 2001 and 2000 were 32.08%
and 37.1%, respectively.


LIQUIDITY AND CAPITAL RESOURCES

The Association is required to maintain levels of liquid assets  consistent with
its safe and  sound  operation.  The  Association  believes  its level of liquid
assets are sufficient for its needs.

The Association's primary sources of funds are deposits,  repayment of loans and
mortgage-backed  securities,  maturities  of  investments  and  interest-bearing
deposits, funds provided from operations. The Association is also able to obtain
advances from the Federal Home Loan Bank of New York. While scheduled repayments
of loans and mortgage-backed  securities and maturities of investment securities
are predicable sources of funds,  deposit flows and loan prepayments are greatly
influenced  by the general  level of interest  rates,  economic  conditions  and
competition.  The Association uses its liquidity  resources  principally to fund
existing and future loan commitments,  to fund maturing  certificates of deposit
and demand deposit withdrawals,  to invest in other interest-earning  assets, to
maintain liquidity, and to meet operating expenses.

                                       9
<PAGE>

FINANCIAL MODERNIZATION LEGISLATION

On November 12, 1999,  President  Clinton signed  legislation which could have a
far-reaching impact on the financial services industry.  The  Gramm-Leach-Bliley
("G-L-B") Act authorizes affiliations between banking,  securities and insurance
firms and  authorizes  bank holding  companies and national banks to engage in a
variety  of new  financial  activities.  Among the new  activities  that will be
permitted to bank holding  companies are  securities  and  insurance  brokerage,
securities underwriting,  insurance underwriting and merchant banking. The Board
of Governors of the Federal  Reserve System (the "Federal  Reserve  Board"),  in
consultation  with  the  Secretary  of  the  Treasury,  may  approve  additional
financial activities.  The G-L-B Act, however,  prohibits future acquisitions of
existing unitary savings and loan holding companies,  like the Company, by firms
which are engaged in commercial activities and limits the permissible activities
of unitary holding companies formed after May 4, 1999.

The G-L-B Act imposes new requirements on financial institutions with respect to
customer  privacy.  The G-L-B Act  generally  prohibits  disclosure  of customer
information to  non-affiliated  third parties unless the customer has been given
the  opportunity  to object and has not objected to such  disclosure.  Financial
institutions  are  further  required  to  disclose  their  privacy  policies  to
customers annually. Financial institutions,  however, will be required to comply
with state law if it is more protective of customer  privacy than the G-L-B Act.
The G-L-B Act directs the federal  banking  agencies,  the National Credit Union
Administration,  the  Secretary of the  Treasury,  the  Securities  and Exchange
Commission  and the  Federal  Trade  Commission,  after  consultation  with  the
National  Association  of Insurance  Commissioners,  to promulgate  implementing
regulations  within six  months of  enactment.  The  privacy  provisions  became
effective in July 2001.

The G-L-B Act contains  significant  revisions to the FHLB System. The G-L-B Act
imposes new capital  requirements  on the FHLBs and authorizes them to issue two
classes of stock with differing dividend rates and redemption requirements.  The
G-L-B Act deletes the current  requirement  that the FHLBs  annually  contribute
$300 million to pay interest on certain government obligations in favor of a 20%
of net  earnings  formula.  The G-L-B Act expands the  permissible  uses of FHLB
advances by community  financial  institutions (under $500 million in assets) to
include   funding   loans  to  small   businesses,   small   farms   and   small
agri-businesses.  The G-L-B  Act  makes  membership  in the FHLB  voluntary  for
federal savings associations.

The G-L-B Act  contains a variety of other  provisions  including a  prohibition
against ATM surcharges unless the customer has first been provided notice of the
imposition  and  amount of the fee.  The  G-L-B Act  reduces  the  frequency  of
Community  Reinvestment Act  examinations  for smaller  institutions and imposes
certain reporting requirements on depository  institutions that make payments to
non-governmental entities in connection with the Community Reinvestment Act. The
G-L-B Act eliminates the SAIF special  reserve and authorizes a federal  savings
association that converts to a national or state bank charter to continue to use
the term "federal" in its name and to retain any interstate branches.

The Company is unable to predict  the impact of the G-L-B Act on its  operations
at this time.  Although the G-L-B Act reduces the range of companies  with which
the Company may affiliate,  it may facilitate affiliations with companies in the
financial services industry.


                                       10
<PAGE>
                           PART II. OTHER INFORMATION


ITEM 1.           Legal Proceedings
                  -----------------

                  None.

ITEM 2.           Changes in Securities and Use of Proceeds
                  -----------------------------------------

                  Not applicable

ITEM 3.           Defaults Upon Senior Securities
                  -------------------------------

                  Not applicable

ITEM 4.           Submission of Matters to a Vote of Security Holders
                  ---------------------------------------------------

                  None.

ITEM 5.           Other Information
                  -----------------

                  None.

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

                  Exhibits:  None.

                  Reports on Form 8-K:  None.

                                       11
<PAGE>
                                   SIGNATURES

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


                                  PEOPLES BANKCORP, INC.



Date: November 14, 2001           By: /s/ Robert E. Wilson
                                       -----------------------------------------
                                       Robert E. Wilson
                                       President and Chief Executive Officer
                                       (Duly Authorized and Principal Executive,
                                       Accounting and Financial Officer)



                                       12