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, 2000

                                       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 13, 2000,  the latest  practicable  date,  132,390  shares of the
registrant's   common  stock,   $.01  par  value  per  share,  were  issued  and
outstanding.

Transitional small business disclosure format (check one):

Yes [X]                                                                No [  ]


<PAGE>



                          PART I. FINANCIAL STATEMENTS

Item 1.   Financial Statements

         Consolidated  Statements  of Financial  Condition as of
         September  30, 2000  (unaudited) and December 31, 1999................3

         Consolidated  Statements  of Income for the Three and Nine
         Months Ended September 30, 2000 and 1999 (unaudited)..................4

         Consolidated  Statements of Cash Flows for the Nine Months
         Ended September 30, 2000 and 1999 (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, 2000 AND DECEMBER 31, 1999
                      (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                                                        September 30,     December 31,
                         ASSETS                                                              2000            1999
                                                                                        ------------      -----------
                                                                                                           (Audited)
<S>                                                                                     <C>               <C>
Cash and Cash Equivalents:
     Cash and due from banks                                                            $     550         $     847
     Interest-bearing deposits in other banks                                                 167               610
                                                                                        ---------         ---------
         Total cash and cash equivalents                                                      717             1,457

Securities held-to-maturity (fair value of $4,184 (unaudited)
    at September 30, 2000 and $3,829 at December 31, 1999)                                  4,179             3,865
Loans, net of deferred fees                                                                20,998            20,942
         Less allowance for loan losses                                                       180               176
                                                                                        ---------         ---------
                  Net loans                                                                20,818            20,766

Premises and equipment, net                                                                   450               463
Federal Home Loan Bank stock, at cost required by law                                         155               139
Accrued interest receivable                                                                   171               163
Other assets                                                                                    6                 7
                                                                                        ---------         ---------
                  Total assets                                                          $  26,496         $  26,860
                                                                                        =========         =========

                  LIABILITIES AND EQUITY

Liabilities:
     Deposits:
     Demand accounts - non-interest bearing                                             $     879         $     594
     Savings and club accounts - interest bearing                                           3,185             3,025
     Time certificates - interest bearing                                                  17,787            16,963
     NOW and money market accounts - interest bearing                                       1,609             1,862
                                                                                        ---------         ---------
                  Total deposits                                                        $  23,460         $  22,444
                                                                                        =========         =========

Advance payments by borrowers for property taxes and insurance                                  2                 3
Other liabilities                                                                             149               125
Borrowed money                                                                                 --             1,500
                                                                                        ---------         ---------
                  Total liabilities                                                     $  23,611         $  24,072
                                                                                        =========         =========

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, 132,390 and 134,390 shares issued and
       outstanding at September 30, 2000 and December 31, 1999                                  1                 1
     Additional paid-in capital                                                             1,002             1,002
     Retained earnings                                                                      2,005             1,882
     Accumulated other comprehensive income                                                    --                --
     Common stock held in treasury at cost                                                    (26)               --
     Loan to employee stock ownership plan                                                    (97)              (97)
                                                                                        ---------         ---------
                  Total stockholders' equity                                                2,885         $   2,788
                                                                                        ---------         ---------

                  Total liabilities and stockholders' equity                            $  26,496         $  26,860
                                                                                        =========         =========
</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, 2000 AND 1999
                      (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                           Three Months Ended              Nine Months Ended
                                                              September 30,                   September 30,
                                                     ---------------------------        ---------------------------
                                                       2000              1999             2000              1999
                                                     --------          --------         --------          --------
                                                                             (In thousands)
<S>                                                  <C>               <C>              <C>               <C>
Interest income
  Loans                                              $     433         $     435        $   1,264         $   1,249
  Securities                                                76                36              212                77
  Other short-term investments                              13                12               55                70
                                                     ---------         ---------        ---------         ---------
         Total interest income                             522               483            1,531             1,396
                                                     ---------         ---------        ---------         ---------

Interest expense:
  Deposits                                                 293               256              824               764
  Borrowings                                                 6                10               42                10
                                                     ---------         ---------        ---------         ---------
         Total interest expense                            299               266              866               774
                                                     ---------         ---------        ---------         ---------

         Net interest income                               223               217              665               622

Provision for loan losses                                    6                 7               25                18
                                                     ---------         ---------        ---------         ---------
         Net interest income after provision
              for loan losses                              217               210              640               604
                                                     ---------         ---------        ---------         ---------

Non-interest income:
  Service charges                                            9                 8               28                23
  Other                                                      3                10               12                22
                                                     ---------         ---------        ---------         ---------
         Total non-interest income                          12                18               40                45
                                                     ---------         ---------        ---------         ---------

Non-interest expense:
  Salaries and employee benefits                            84                83              228               229
  Director fees                                             12                10               40                34
  Building, occupancy and equipment                         15                15               44                42
  Data processing                                            9                 8               27                24
  Postage and supplies                                       7                 7               23                18
  Deposit insurance premium                                  1                 3                3                 9
  Insurance                                                  5                 2               15                 6
  Other                                                     32                23              106                86
                                                     ---------         ---------        ---------         ---------
         Total non-interest expense                        165               151              486               448
                                                     ---------         ---------        ---------         ---------

         Income before income tax expense                   64                77              194               201

Income tax expense                                          24                24               72                71
                                                     ---------         ---------        ---------         ---------

         Net income                                  $      40         $      53        $     122         $     130
                                                     =========         =========        =========         =========

Earnings per share
  Basic and diluted                                  $     .30         $    .39         $     .91         $    .96
                                                     ---------         --------         ---------         --------
  Weighted average shares outstanding                      133               134              134               134
                                                     ---------         ---------        ---------         ---------
</TABLE>

See accompanying notes to consolidated financial statements.

                                       4
<PAGE>

                             PEOPLES BANKCORP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                   Nine Months Ended
                                                                                        September 30,
                                                                                --------------------------
                                                                                  2000             1999
                                                                                --------         --------
                                                                                        (In thousands)

<S>                                                                             <C>              <C>
Cash flows from operating activities:
  Net income                                                                    $    122         $     130
  Adjustment to reconcile net income to net cash
    provided by operating activities:
     Depreciation and amortization                                                    19                11
     Decrease in accrued interest receivable                                          (8)               --
     Provision for loan losses                                                        25                18
     Net gains on sales of securities                                                 --                --
     Increase (decrease) in other liabilities                                         24              (126)
     Deferred income taxes                                                            --                --
     Decrease in other assets                                                          1                (5)
                                                                                --------         ---------
         Net cash provided by operating activities                                   183                28
                                                                                --------         ---------

Cash flows from investing activities:
  Net increase (decrease) in loans                                                   (77)           (3,003)
  Proceeds from sales of securities available-for-sale                                --                --
  Proceeds from maturities and principal reductions
    of securities available-for-sale                                                  --                --
Purchase of securities held-to-maturity                                             (750)           (1,125)
  Purchases of securities available-for-sale                                          --              (743)
Proceeds from maturities and principal reductions
    of securities held-to-maturity                                                   437             1,001
  Purchase of FHLB stock                                                             (16)               --
  Purchase of fixed assets                                                            (6)              (46)
                                                                                --------         ---------
         Net cash provided (used) by investing activities                           (412)           (3,916)
                                                                                --------         ---------

Cash flows from financing activities:
  Increase (decrease) in deposits                                                  1,016               488
  Decrease in advance payments and borrowers for
    property taxes and insurance                                                      (1)               (1)
  Purchase of treasury stock                                                         (26)               --
  Borrowings from FHLB                                                                --             1,800
  Repayments to FHLB                                                              (1,500)               --
                                                                                --------         ---------

         Net cash provided by financing activities                                  (511)            2,287

Net increase (decrease) in cash and cash equivalents                                (740)           (1,601)
Cash and cash equivalents at beginning of period                                   1,457             2,475
                                                                                --------         ---------
Cash and cash equivalents at end of period                                      $    717         $     874
                                                                                ========         =========
</TABLE>


                                       5
<PAGE>





                             PEOPLES BANKCORP, INC.
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                  NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
                                 (In thousands)

<TABLE>
<CAPTION>

                                                                                     Nine Months Ended
                                                                                         September   30,
                                                                                ----------------------------
                                                                                  2000             1999
                                                                                --------         --------
                                                                                        (In thousands)
                                                                                                      -
<S>                                                                             <C>              <C>
Supplemental Disclosure of Cash Flow Information:
  Non-cash investing activities:
     Additions to real estate owned                                             $     --         $      --

  Cash paid during the period for:
     Interest                                                                        866               764
     Income taxes                                                                     58                72
                                                                                ========         =========

</TABLE>


                                       6
<PAGE>


                             PEOPLES BANKCORP, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
              For the nine months ended September 30, 2000 and 1999


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>


                             PEOPLES BANKCORP, INC.

            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, 2000 AND DECEMBER 31, 1999

Total assets at September 30, 2000  amounted to $26.5  million,  a $364,000,  or
1.36%, decrease from December 31, 1999's level of $26.9 million. The composition
of the  Company's  balance  sheet  had  changed  somewhat  with  cash  and  cash
equivalents  decreasing  by $740,000  from $1.5  million at December 31, 1999 to
$717,000 at September 30, 2000, a decrease of 50.79%.  Partially offsetting this
decrease  was a $314,000  increase  in  securities  held to  maturity  from $3.9
million at  December  31,  1999 to $4.2  million at  September  30,  2000 for an
increase of 8.12%.  Cash  balances at December  31, 1999  reflected  higher than
normal  liquidity  to be prepared for any higher than  expected  cash needs as a
result  of any  Year  2000  concerns.  Net  loans at  September  30,  2000  were
essentially  unchanged as compared to December 31, 1999 increasing by $52,000 or
0.25% to $20.8 million. Total liabilities at September 30, 2000 had decreased by
$461,000,  or 1.92% from $24.1 million at December 31, 1999, to $23.6 million at
September 30, 2000. Deposits,  which comprise the majority of total liabilities,
amounted  to $23.5  million at  September  30,  2000,  up from $22.4  million at
December 31, 1999 for an increase of $1.0 million,  or 4.53%,  with decreases in
NOW and money market  accounts  being  offset by increases in all other  deposit
categories.  Total  stockholders'  equity at September 30, 2000 amounted to $2.9
million as  compared  to $2.8  million at  December  31,  1999 with the  $97,000
increase  attributable  to the retention of earnings from the period,  partially
offset by the $26,000 cost of  repurchasing  shares of treasury stock during the
period.  At  September  30,  2000 the  Association  was in  compliance  with all
applicable  regulatory capital requirements with total core and tangible capital
of $2.5 million (9.7% of adjusted total assets) and total risk-based  capital of
$2.7 million (17.8%) of risk weighted assets).

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND
1999

NET INCOME.  Net income for the three  months ended  September  30, 2000 and the
three  months  ended   September  30,  1999  amounted  to  $40,000  and  $53,000
respectively. The $13,000 decrease in net income for the 2000 period as compared
to fiscal year 1999 was attributable to increased levels of non interest expense
and, to a lesser extent, a decrease in non-interest income,  partially offset by
an increase in net  interest  income.  For the nine months ended  September  30,
2000,  net income  amounted to  $122,000  as  compared to $130,000  for the nine
months ended  September 30, 1999 with the $8,000 or 6.15% decrease  attributable
to the aforementioned factors.

NET  INTEREST  INCOME.  Net interest  income  before  provision  for loan losses
increased  by  $6,000,  or  2.77%,  from  $217,000  for the three  months  ended
September  30, 1999 to $223,000 for the three months ended  September  30, 2000.
The increase in net interest  income was primarily due to a $39,000  increase in
interest  income,  partially offset by a $33,000


                                       8
<PAGE>
increase in interest expense as compared to the three months ended September 30,
1999. The increase in interest income was primarily due to a $40,000 increase in
interest from the  securities  portfolio due to the purchase of a GNMA security.
Interest  expense for the quarter ended September 30, 2000 amounted to $299,000,
a $33,000  increase from the same period in 1999 with the increase  attributable
to a $37,000 increase in interest  expense from deposits,  partially offset by a
$4,000 reduction in interest expense due to FHLB borrowings. For the nine months
ended September 30, 2000, net interest  income before  provision for loan losses
amounted to $665,000,  up from $622,000 for the first nine months of fiscal year
1999 for an  increase  of  $43,000  with the  change  due to the  aforementioned
factors.

PROVISION FOR LOAN LOSSES.  For the three months ended  September 30, 2000,  the
Company  made a  $6,000  provision  for  loan  losses  as  compared  to a $7,000
provision for the same period in 1999. The provision in 2000 reflected the level
of charge-offs  during that period. For the nine months ended September 30, 2000
the Company  made a $25,000  provision  for loan losses as compared to a $18,000
provision  for the same period in 1999.  The  increased  provision  in the first
three  quarters of fiscal year 2000 as compared to fiscal year 1999 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, 2000  amounted to $12,000 as compared to $18,000 for the three  months ended
September 30, 1999 with the decrease attributable to decreases in appraisal fees
and  miscellaneous  operating  income.  For the nine months ended  September 30,
2000,  non-interest  income  amounted  to $40,000 as compared to $45,000 for the
nine  months  ended  September  30,  1999  with the  decrease  due to a  $10,000
reduction in other non-interest income.

NON-INTEREST  EXPENSES.  Non-interest  expenses  for the third  quarter  of 2000
totaled  $165,000,  up from  $151,000  for the  third  quarter  of 1999 with the
increase primarily due to a $9,000 increase in other  non-interest  expenses due
to  miscellaneous  expenses,  a $3,000 increase in insurance  expense,  a $2,000
increase in  directors'  fees and a $1,000  increase in  salaries  and  employee
benefits,  offset by $2,000 decrease in FDIC insurance premiums. The decrease in
this  item was due to the  decreased  assessment  rate paid by  institutions  in
connection  with the FICO bonds.  For the nine months ended  September 30, 2000,
non-interest  expenses totaled $486,000 which  represented a $38,000 increase as
compared to the first three  quarters of fiscal year 1999.  The increase for the
first  three  quarters  of fiscal year 2000 was  primarily  attributable  to the
combined effects of a $20,000 increase in other  non-interest  expense, a $9,000
increase in insurance  expense,  a $5,000 increase in postage and supplies and a
$6,000 increase in directors  fees,  partially  offset by a $6,000  reduction in
FDIC insurance premiums. This reduction was due to the aforementioned  reduction
in the assessment rate for premiums paid in connection with the FICO bonds.

INCOME TAX EXPENSE.  Income tax expense for the three months ended September 30,
2000  amounted to $24,000 which was  comparable to the same period in 1999.  The
Company's  effective tax rates for the respective  periods were 37.5% and 31.2%.
For the nine months ended  September  30, 2000,  income tax expense  amounted to
$72,000,  up from $71,000 for the same period in 1999.  The Company's  effective
tax rates for the first three  quarters of fiscal years 2000 and 1999 were 37.1%
and 35.3%, respectively.

LIQUIDITY AND CAPITAL RESOURCES

The  Association  is  required to maintain  minimum  levels of liquid  assets as
defined by OTS  regulations.  This  requirement,  which varies from time to time
depending upon economic conditions and deposit flows, is based upon a percentage
of the Association's deposits and short-term  borrowings.  The required ratio at
September  30,  2000  was  4%.  For the  month  ended  September  30,  2000  the
Association was in compliance.

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


                                       9
<PAGE>
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.

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 will become
effective six months thereafter.

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>


                             PEOPLES BANKCORP, INC.


                                     PART II


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
         -----------------

         During the quarter  ended  September  30, 2000,  the Company  adopted a
stock  repurchase plan pursuant to which the Board  authorized the repurchase of
up to 5% of the Company's  outstanding  shares of Common  Stock.  In the quarter
ended September 30, 2000, 2,000 shares were repurchased under this plan.

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

         Reports on Form 8-K:  None.

         Exhibit 27: Financial Data Schedule for the nine months ended September
                     30, 2000.



                                       11
<PAGE>



                             PEOPLES BANKCORP, INC.

                                   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.




Date: November 14, 2000         By: /s/ Robert E. Wilson
                                    ------------------------------------
                                    Robert E. Wilson
                                    President and Chief
                                    Executive Officer
                                    (Duly Authorized and Principal
                                    Executive, Accounting and Financial Officer)




                                       12