SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

   For the Quarterly Period Ended                      Commission file
         September 30, 2000                               000-20616

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

           South Carolina                                     57-09581843
    -------------------------------                      -----------------------
    (State or other jurisdiction of                       (I.R.S. Employer
     incorporation or organization)                      Identification No.)

               1814 East Main Street, Easley, South Carolina 29640
               --------------------------------------------- -----
               (Address of principal executive offices) (Zip Code)

                  Registrant's telephone number: (864) 859-2265


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 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 [ ]


The number of outstanding shares of the issuer's $1.67 par value common stock as
of September 30, 2000 was 3,016,964.




<PAGE>


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements


         Peoples Bancorporation, Inc. and Subsidiaries
                  Consolidated Balance Sheets
           (Amounts in thousands except share data)
<TABLE>
<CAPTION>
                                                                               September 30,         September 30,      December 31,
                                                                                   2000                  1999                 1999
                                                                                 Unaudited             Unaudited            Audited
                                                                                 ---------             ---------            -------
ASSETS
<S>                                                                             <C>                  <C>                  <C>
CASH AND DUE FROM BANKS .............................................           $  10,019            $  10,711            $   6,507
INTEREST-BEARING DEPOSITS IN OTHER BANKS ............................                   0                    0                5,047
FEDERAL FUNDS SOLD ..................................................               3,290                9,610                9,200
SECURITIES
     Available for sale .............................................              33,125               31,723               31,209
     Held for investment (market value of $3,689,
         $4,248 and $4,438) .........................................               3,671                4,221                4,445
LOANS-less allowance for loan losses of $1,967,
     $1,578 and $1,581 ..............................................             176,171              127,485              140,336
LOANS HELD FOR SALE .................................................               8,094               12,890                6,662
PREMISES AND EQUIPMENT, net of accumulated
     depreciation and amortization ..................................               7,101                6,626                6,969
ACCRUED INTEREST RECEIVABLE .........................................               1,722                1,410                1,544
OTHER ASSETS ........................................................               2,511                1,972                1,994
                                                                                ---------            ---------            ---------
         TOTAL ASSETS ...............................................           $ 245,704            $ 206,648            $ 213,913
                                                                                =========            =========            =========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
     Noninterest-bearing ............................................           $  30,353            $  23,055            $  19,953
     Interest-bearing ...............................................             169,320              138,225              148,823
                                                                                ---------            ---------            ---------
         Total deposits .............................................             199,673              161,280              168,776
SECURITIES SOLD UNDER REPURCHASE
     AGREEMENTS .....................................................              17,008               16,142               15,434
FEDERAL FUNDS PURCHASED .............................................                 130                    0                    0
NOTES PAYABLE TO FEDERAL HOME LOAN BANK .............................               2,000                5,000                5,000
ACCRUED INTEREST PAYABLE ............................................               1,492                  851                1,154
OTHER LIABILITIES ...................................................                 398                  315                  203
                                                                                ---------            ---------            ---------
         Total Liabilities ..........................................             220,701              183,588              190,567
                                                                                ---------            ---------            ---------
SHAREHOLDERS' EQUITY
Common Stock - 10,000,000 shares authorized,
     $1.67 Par value per share,
     3,016,964 shares, 2,845,770 shares
     and 2,987,627 shares outstanding ...............................               5,038                4,752                4,989
Additional paid-in capital ..........................................              18,844               17,324               18,867
Retained Earnings ...................................................               1,488                1,402                    0
Accumulated other comprehensive income ..............................                (367)                (418)                (510)
                                                                                ---------            ---------            ---------
         Total Shareholder's Equity .................................              25,003               23,060               23,346
                                                                                ---------            ---------            ---------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY ...........................           $ 245,704            $ 206,648            $ 213,913
                                                                                =========            =========            =========
</TABLE>




                                       2
<PAGE>

                  PEOPLES BANCORPORATION, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
                    (Amounts in thousands except share data)

<TABLE>
<CAPTION>
                                                                             Three Months Ended                 Nine Months Ended
                                                                                September 30,                    September 30,
                                                                           2000              1999            2000            1999
                                                                           ----              ----            ----            ----
INTEREST INCOME
<S>                                                                    <C>              <C>              <C>              <C>
Interest and fees on loans .....................................       $    4,258       $    2,852       $   11,763       $    7,439
Interest on securities
     Taxable ...................................................              524              505            1,574            1,431
     Tax-exempt ................................................               46               53              149              160
Interest on federal funds ......................................               86              195              325              595
                                                                       ----------       ----------       ----------       ----------
Total interest income ..........................................            4,914            3,605           13,811            9,625

INTEREST EXPENSE
Interest on deposits ...........................................            2,161            1,424            5,935            3,804
Interest on federal funds purchased and securities
     sold under repurchase agreements ..........................              205              177              563              330
Interest on notes payable Federal Home
     Loan Bank .................................................               64               48              182              110
                                                                       ----------       ----------       ----------       ----------
Total interest expense .........................................            2,430            1,649            6,680            4,244

Net interest income ............................................            2,484            1,956            7,131            5,381
PROVISION FOR LOAN LOSSES ......................................              180              250              498              541
                                                                       ----------       ----------       ----------       ----------
Net interest income after provision for
     loan losses ...............................................            2,304            1,706            6,633            4,840

NON-INTEREST INCOME
Service fees and other income ..................................              764              479            1,857            1,230
                                                                       ----------       ----------       ----------       ----------
                                                                              764              479            1,857            1,230
NON-INTEREST EXPENSE
Salaries and benefits ..........................................            1,197              915            3,355            2,642
Occupancy ......................................................               91               82              264              222
Equipment ......................................................              155              149              447              396
Other operating expenses .......................................              564              495            1,680            1,460
                                                                       ----------       ----------       ----------       ----------
                                                                            2,007            1,641            5,746            4,720

Income before income taxes .....................................            1,061              544            2,744            1,350

PROVISION FOR INCOME TAXES .....................................              365              186              940              460
                                                                       ----------       ----------       ----------       ----------

Net income .....................................................       $      696       $      358       $    1,804       $      890
                                                                       ==========       ==========       ==========       ==========

INCOME PER COMMON SHARE:
     BASIC .....................................................       $     0.23       $     0.13       $     0.60       $     0.31
                                                                       ==========       ==========       ==========       ==========
     DILUTED ...................................................       $     0.22       $     0.12       $     0.57       $     0.29
                                                                       ==========       ==========       ==========       ==========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
    BASIC ......................................................        3,014,996        2,843,191        2,999,784        2,841,854
                                                                       ==========       ==========       ==========       ==========
    DILUTED ....................................................        3,099,781        2,998,697        3,167,004        3,092,702
                                                                       ==========       ==========       ==========       ==========
DIVIDENDS PAID PER COMMON
     SHARE .....................................................       $    0.035       $    0.035       $    0.105       $    0.105
                                                                       ==========       ==========       ==========       ==========
</TABLE>


                                       3
<PAGE>

                  Peoples Bancorporation, Inc. and Subsidiaries
           Consolidated Statements of Changes in Shareholders' Equity
              for the six months ended September 30, 2000 and 1999
                    (Amounts in thousands except share data)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                                      Accummulated
                                                   Common stock           Additional                      other            Total
                                                   ------------             paid-in        Retained   Comprehensive    shareholders'
                                               Shares         Amount        capital        earnings      income           equity
                                               ------         ------        -------        --------      ------           ------
<S>                                           <C>          <C>           <C>            <C>          <C>              <C>
Balance, December 31, 1998                    2,764,016    $    4,616    $   17,092     $      811   $        (48)    $     22,471
Net Income ............................                                                        890                             890
Other comprehensive income, net of
tax:
   Unrealized holding gains on
   securities available for sale ......                                                                      (370)            (370)
                                                                                                                       -----------
Comprehensive income ..................                                                                                        520
Cash Dividends ........................                                                       (299)                           (299)
Proceeds from stock options ...........          81,854           136           232                                            368
                                            -----------    ----------    ----------     ----------   -------------    ------------
Balance, September 30, 1999 ...........       2,845,770     $   4,752    $   17,324     $    1,402   $       (418)    $     23,060
                                            ===========    ==========    ==========     ==========   =============    ============

Balance, December 31, 1999* ...........       2,987,627    $    4,989    $   18,867     $        0   $       (510)    $     23,346
Net Income ............................                                                      1,804                           1,804
Other comprehensive income, net of
tax:
   Unrealized holding losses on
   securities available for sale ......                                                                        143             143
                                                                                                                       -----------
Comprehensive income ..................                                                                                      1,947
Cash Dividends ........................                                                       (316)                           (316)
Proceeds from stock options ...........          29,337            49           (23)                                            26
                                            -----------    ----------    -----------    ----------   -------------    ------------
Balance, September 30, 2000 ...........       3,016,964    $    5,038    $   18,844     $    1,488   $       (367)    $     25,003
                                            ===========    ==========    ==========     ==========   =============    ============
</TABLE>


* 5% stock  dividend  issued in January  2000 is  reflected in December 31, 1999
data.




                                       4
<PAGE>


                  Peoples Bancorporation, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows
                    (Amounts in thousands except share data)

<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                             Nine Months Ended
                                                                                                                September 30,
                                                                                                          2000                 1999
                                                                                                          ----                 ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                                   <C>                  <C>
   Net Income ............................................................................            $  1,804             $    890
   Adjustments to reconcile net income to net cash provided
     by (used in) operating activities
   Provision for loan losses .............................................................                 497                  541
   Depreciation and amortization .........................................................                 393                  314
   Amortization and accretion (net) of premiums and
     discounts on securities .............................................................                  25                   85
   Increase in accrued interest receivable ...............................................                (178)                (488)
   Increase in other assets ..............................................................                (589)                (375)
   Increase (decrease) in accrued interest payable .......................................                 338                  (16)
   Increase in other liabilities .........................................................                 196                   62
                                                                                                      --------             --------
     Net cash provided by operating activities ...........................................               2,486                1,013
                                                                                                      --------             --------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of securities held for investment ...........................................                   0                 (100)
   Purchases of securities available for sale ............................................              (4,580)              (8,874)
   Proceeds from the maturity of securities available for sale ...........................               3,194                5,424
   Proceeds from the call of securities available for sale ...............................                 433                3,060
   Net increase in loans .................................................................             (37,765)             (53,993)
   Purchase of premises and equipment ....................................................                (525)              (2,014)
                                                                                                      --------             --------
     Net cash used in investing activities ...............................................             (39,243)             (56,497)
                                                                                                      --------             --------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits ..............................................................              30,898               41,180
   Net increase in securities sold under repurchase
     agreements ..........................................................................               1,574               10,162
    Net increase in Federal funds purchased ..............................................                 130                    0
   Net increase (decrease) in notes payable Federal Home Loan Bank .......................              (3,000)               3,000
   Proceeds from stock options exercised .................................................                  26                  369
   Cash dividend .........................................................................                (316)                (299)
                                                                                                      --------             --------
     Net cash provided by financing activities ...........................................              29,312               54,412
                                                                                                      --------             --------
     Net increase (decrease) in cash and cash equivalents ................................              (7,445)              (1,072)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR .............................................              20,754               21,393
                                                                                                      --------             --------
CASH AND CASH EQUIVALENTS, END OF PERIOD .................................................            $ 13,309             $ 20,321
                                                                                                      ========             ========

CASH PAID FOR
     Interest ............................................................................            $  6,431             $  4,260
                                                                                                      ========             ========
     Income Taxes ........................................................................            $    810             $    585
                                                                                                      ========             ========
</TABLE>





                                       5
<PAGE>


                  PEOPLES BANCORPORATION, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      A summary of these  policies  is  included  in the 1999  Annual  Report to
shareholders and incorporated herein by reference.

STATEMENT OF CASH FLOWS

      Cash  includes  currency  and coin,  cash items in process of  collection,
amounts due from banks and federal funds sold.

COMMON STOCK

     The Board of Directors  declared a cash dividend of $0.035 per common share
to shareholders of record  September 21, 2000, June 22, 2000 and March 23, 2000,
respectively,  payable  October  6,  2000,  July 7,  2000  and  April  6,  2000,
respectively.

     SFAS No. 128,  "Earnings per Share" requires that the Company present basic
and diluted net income per common share. The assumed conversion of stock options
creates the  difference  between basic and diluted net income per share.  Income
per share is calculated by dividing net income by the weighted average number of
common shares outstanding for each period presented. The weighted average number
of common shares outstanding for basic net income per common share was 2,999,784
at September 30, 2000 and 2,841,854 at September 30 1999.  The weighted  average
number of common shares  outstanding for diluted net income per common share was
3,167,004 at September 30, 2000 and 3,092,702 at September 30, 1999.

      The Company issued a  five-percent  common stock dividend in January 2000.
Per share data in 1999 has been restated to reflect this transaction.

MANAGEMENT'S OPINION

     In  the  opinion  of  management,   the  accompanying  unaudited  financial
statements of Peoples Bancorporation,  Inc. contain all adjustments necessary to
fairly  present the  financial  results of the interim  periods  presented.  The
results of operations for any interim period are not  necessarily  indicative of
the results to be expected for an entire year.





                                       6
<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
         OPERATION

      The following  discussion and analysis should be read in conjunction  with
the consolidated financial statements and related notes and with the statistical
information  and  financial  data  appearing  in this report as well as the 1999
Annual  Report  of  Peoples  Bancorporation,  Inc.  on  Form  10-K.  Results  of
operations for the three-month and nine-month  periods ending September 30, 2000
are not  necessarily  indicative  of the  results to be  attained  for any other
period.

Forward-Looking Statements

         From time to time,  Peoples  Bancorporation,  Inc. (the  "Company") may
publish  forward-looking  statements  relating  to such  matters as  anticipated
financial  performance,  business  prospects,  technological  developments,  new
products and similar matters.  The Private  Securities  Litigation Reform Act of
1995 provides a safe harbor for forward-looking  statements.  In order to comply
with the terms of the safe harbor,  the Company  notes that a variety of factors
could cause the Company's  actual  results and  experience to differ  materially
from the anticipated  results or other  expectations  expressed in the Company's
forward-looking  statements.  The risks and  uncertainties  that may  affect the
operations,  performances,  development  and results of the  Company's  business
include,  but are not limited to, the following:  risks from changes in economic
and industry  conditions;  changes in interest  rates;  risks inherent in making
loans including  repayment  risks and value of collateral;  dependence on senior
management;  and recently-enacted or proposed legislation.  Statements contained
in this filing  regarding  the demand for the  Company's  products and services,
changing  economic  conditions,  interest rates,  consumer spending and numerous
other factors may be forward-looking statements and are subject to uncertainties
and risks.

Overview

      Peoples Bancorporation,  Inc. was incorporated under South Carolina law on
March 6, 1992,  for the purpose of becoming a bank holding  company by acquiring
all of the Common Stock of The Peoples  National Bank,  Easley,  South Carolina.
The  Company  commenced  operations  on July 1, 1992 upon  effectiveness  of the
acquisition of The Peoples  National Bank. On May 19, 2000, the Company filed an
election with the Federal Reserve Bank of Richmond to become a financial holding
company,  pursuant to the Gramm-Leach-Bliley Act of 1999. As a financial holding
company,  Peoples  Bancorporation,  Inc.  may  engage  in  activities  that  are
financial  in nature or  incidental  to a  financial  activity.  The  activities
permissible for a financial holding company and the applicable notice procedures
are contained in sections  225.85 through 225.89 of the Federal  Reserve Board's
Regulation Y (12 C.F.R.  225.85-89).  The election to become a financial holding
company became effective June 23, 2000.

      The Company  currently has three  wholly-owned  subsidiaries:  The Peoples
National Bank, Easley,  South Carolina, a national bank which commenced business
operations in August 1986;  Bank of Anderson,  National  Association,  Anderson,
South Carolina, a national bank which commenced business operations in September
1998; and, Seneca National Bank, Seneca,  South Carolina,  a national bank which
commenced business  operations in February 1999 (sometimes referred to herein as
the "Banks").

     Currently,  the Company engages in no significant operations other than the
ownership  of its  three  subsidiaries  and the  support  thereof.  The  Company
conducts its business  from six banking  offices  located in the Upstate Area of
South Carolina.


                                       7
<PAGE>


                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EARNINGS PERFORMANCE

Overview

     The  consolidated  Company's  net income for the third  quarter of 2000 was
$696,000,  or $0.22 per diluted share compared to $358,000, or $0.12 per diluted
share for the third  quarter  of 1999.  Net  income  for the nine  months  ended
September  30,  2000 was  $1,804,000,  or $0.57 per diluted  share,  compared to
$890,000,  or $0.29 per diluted  share for the nine months ended  September  30,
1999.  Return on average  equity  for the nine  months  and three  months  ended
September  30,  2000 was 9.81% and 11.08%,  respectively,  compared to 5.14% and
6.13%,  respectively  for the nine months and three months ended  September  30,
1999.  Return on average  assets  for the nine  months  and three  months  ended
September  30,  2000 was 1.02% and 1.13%,  respectively,  compared  to 0.66% and
0.72%,  respectively,  for the nine months and three months ended  September 30,
1999.  The  increases in the  Company's  net income,  earnings per fully diluted
share,  return on  average  equity,  and  return on  average  assets in 2000 are
attributable to the attainment of  profitability  by Seneca National Bank, which
commenced  operations in February 1999, the attainment of  profitability by Bank
of Anderson,  N. A., which commenced business  operations in September 1998, and
increased  earnings at The  Peoples  National  Bank  resulting  largely  from an
increase in interest income from a larger base of  interest-earning  assets. For
the nine months ended  September  30, 2000,  Seneca  National  Bank recorded net
earnings of $13,000 compared to a net loss of $187,000 for the nine months ended
September  30, 1999.  Bank of Anderson,  N. A. recorded net earnings of $163,000
for the nine months ended  September 30, 2000 compared to a net loss of $153,000
for the nine months ended September 30, 1999. The Peoples National Bank recorded
net earnings of $1,626,000 for the nine months ended September 30, 2000 compared
to net earnings of $1,209,000 for the nine months ended September 30, 1999.

Net Interest Income

     The largest  component of the Company's net income is net interest  income.
Net interest  income,  which is the difference  between the interest  revenue on
interest-earning assets and the interest expense on interest-bearing liabilities
used to fund those assets,  measures the gross profit from lending and investing
activities  and is  the  primary  contributor  to the  Company's  earnings.  Net
interest income before provision for loan losses increased  $528,000,  or 27.0%,
to  $2,484,000  in the third quarter of 2000 compared to $1,956,000 in the third
quarter of 1999.  For the nine months ended  September  30,  2000,  net interest
income  before  provision for loan losses  increased  $1,750,000,  or 32.5%,  to
$7,131,000  compared to $5,381,000 for the nine months ended September 30, 1999.
The Company's  net interest  margin was 4.31% and 4.38%,  respectively,  for the
three and nine months  ended  September  30,  2000,  compared to 4.25% and 4.38%
respectively,  for the three and nine  months  ended  September  30,  1999.  The
increases in net interest income for the quarter and year-to-date period in 2000
when compared to the quarter and  year-to-date  period in 1999 resulted  largely
from an increase in earning assets,  primarily loans,  attributable to all three
of the Company's banking subsidiaries. The Company's net interest margin for the
nine-month  period ended  September  30, 2000 remained flat when compared to the
nine-month  period ended  September 30, 1999. The Company's net interest  margin
for the three-month  period ended September 30, 2000 increased slightly over the
comparable  three-month  period in 1999, largely as a result of an  increase  in
earning assets.

Provision for Loan Losses

     The amount charged to the provision for loan losses by the Company is based
on  management's  judgment as to the amount  required  to maintain an  allowance
adequate to provide for potential losses in the Company's loan portfolio.

     The provision for loan losses charged to operations during the three months
ended September 30, 2000 was $180,000  compared to $250,000 for the three months
ended September 30, 1999, a decrease of $70,000 or 28.0%. The provision for loan
losses during the nine months ended September 30, 2000 was $498,000  compared to
$541,000 for the nine months ended September 30, 1999, a decrease of $43,000, or
7.9%.  The variations in the provision for loan losses reflect the growth in the
loan  portfolio,  the net  amount of assets  being  charged  off by the  Company
against the  allowance  for loan losses,  and possible  changes in the levels of
risk associated with the various loans in the portfolio.

                                       8
<PAGE>

Non-interest Income

     Non-interest income increased $285,000, or 59.5%, to $764,000 for the third
quarter of 2000 compared to $479,000 for the third quarter of 1999. For the nine
months ended  September 30, 2000  non-interest  income  increased  $627,000,  or
51.0%, to $1,857,000  compared to $1,230,000 for the nine months ended September
30, 1999. The increase in non-interest  income for the two  comparative  periods
resulted  largely  from an increase in fees on  mortgage  loans,  an increase in
service  charge income on deposit  accounts,  and an increase in income  derived
from the sale of alternative  investment products.  No gain or loss was realized
on the sale of available-for-sale securities during the comparative periods.

Non-interest Expense

     Total non-interest expense increased $366,000,  or 22.3%, to $2,007,000 for
the third quarter of 2000 compared to $1,641,000  for the third quarter of 1999.
For the  first  nine  months  of  2000,  total  non-interest  expense  increased
$1,026,000,  or 21.7%,  to $5,746,000  compared to $4,720,000 for the first nine
months of 1999.  Salaries and benefits,  the largest  component of  non-interest
expense,  increased $282,000, or 30.8%, in the third quarter of 2000 compared to
the third  quarter  of 1999.  For the nine  months  ended  September  30,  2000,
salaries and benefits increased  $713,000,  or 26.9%, to $3,355,000  compared to
$2,642,000  for the nine  months  ended  September  30,  1999.  The  increase in
salaries and benefits for the comparative  periods is primarily  attributable to
the addition of several  employees as well as normal  salary  increases  for the
holding company and the three  subsidiary  banks.  Occupancy  expense  increased
$9,000,  or 11.0%, in the third quarter of 2000 compared to the third quarter of
1999. For the first nine months of 2000 occupancy  expense totaled  $264,000,  a
$42,000, or 18.9%, increase over the $222,000 recorded for the first nine months
of 1999. The increase in occupancy  expense for the two  comparative  periods is
attributable to an increase in depreciation, maintenance, and utilities expenses
associated  with the  construction  of a new branch office for Peoples  National
Bank in Easley which opened during the fourth quarter of 1999 and the renovation
and  expansion  of the  existing  branch  office  of  Peoples  National  Bank in
Powdersville,  which was completed during the second quarter of 2000.  Equipment
expense increased $6,000, or 4.0%, to $155,000 in the third quarter of 2000 when
compared to $149,000 in the third quarter of 1999.  For the first nine months of
2000,  equipment expense totaled $447,000, a $51,000, or 12.9% increase over the
$396,000  recorded for the first nine months of 1999.  The increase is primarily
attributable  to  additional  furniture and equipment  expense  associated  with
Peoples National Bank's new office construction and office renovation  described
above. Other operating expense increased  $69,000,  or 13.9%, to $564,000 in the
third  quarter of 2000 when  compared to $495,000 in the third  quarter of 1999.
For the nine months ended September 30, 2000, other operating expenses increased
$220,000,  or 15.0%,  to $1,680,000  compared to  $1,460,000 in other  operating
expenses  recorded  during the first nine months of 1999.  The increase in other
operating  expenses is primarily  attributable  to increases in various  expense
categories resulting from a larger base of deposits, loans, and assets.

BALANCE SHEET REVIEW

Loans

     Outstanding  loans  represent  the largest  component of earning  assets at
78.7% of total earning assets.  As of September 30, 2000, the Company held total
gross loans  outstanding  of  $178,138,000,  which excludes loans held for sale.
Gross loans  increased  $36,221,000  or 25.5% from  $141,917,000  in total gross
outstanding loans at December 31, 1999 and increased $49,075,000, or 38.0%, from
$129,063,000  in total  gross  outstanding  loans at  September  30,  1999.  The
increase resulted from new loans generated by Bank of Anderson,  N.A. and Seneca
National  Bank  as well as  internal  loan  growth  experienced  by The  Peoples
National  Bank.  At  September  30,  2000,  Bank of  Anderson,  N.A.  had  gross
outstanding  loans of $37,690,000;  Seneca  National Bank had gross  outstanding
loans of $18,774,000;  and The Peoples National Bank had outstanding gross loans
of $121,674,000.

     The interest rates charged on loans vary with the degree of risk,  maturity
and amount of the loan. Competitive pressures,  money market rates, availability
of funds, and government  regulation also influence  interest rates. The average
yield on the  company's  loans for the nine months ended  September 30, 2000 was
9.03% compared to 8.52%, for the first nine months of 1999.  Approximately 36.9%
of the Company's loans are tied to the prime interest rate.


                                       9
<PAGE>

     The Company's loan portfolio consists  principally of residential  mortgage
loans,  commercial  loans and consumer  loans.  Almost all of these loans are to
borrowers located in South Carolina,  and they are concentrated in the Company's
market areas.

     The Company's real estate loans are primarily  construction loans and loans
secured by commercial and residential real estate,  located within the Company's
trade areas. The Company does not actively pursue long-term, fixed-rate mortgage
loans for retention in its loan portfolio.  The Banks have residential  mortgage
loan   originators  who  originate  and  package  loans  that  are  pre-sold  at
origination  to third  parties  and are  classified  as loans  held for sale for
reporting  purposes.  At  September  30, 2000 the  Company  held  $8,094,000  of
mortgage  loans held for sale  compared to  $6,662,000  at December 31, 1999 and
$12,890,000 at September 30, 1999. During the third quarter of 2000, the Company
originated $43,014,000 and sold $34,920,000 in residential mortgages.

     The Company's  commercial lending activity is directed  principally towards
businesses  whose demands for funds fall within each of the Bank's legal lending
limits and which are potential  deposit customers of the Banks. This category of
loans includes loans made to individuals,  partnerships, or corporate borrowers,
which are obtained for a variety of business  purposes.  Particular  emphasis is
placed on loans to small and medium-sized  businesses.  The Company's commercial
loans are spread  throughout a variety of industries,  with no industry or group
of related  industries  accounting  for a significant  portion of the commercial
loan  portfolio.  Commercial  loans are made on either a  secured  or  unsecured
basis.  When  taken,  security  consists of liens on  inventories,  receivables,
equipment,  furniture and  fixtures.  Unsecured  commercial  loans are generally
short-term with emphasis on repayment strengths and low debt-to-worth ratios. At
September 30, 2000,  approximately  $12,428,000,  or 54.4%, of commercial  loans
were unsecured.

     The  Company's   direct   consumer  loans  consist   primarily  of  secured
installment  loans to individuals for personal,  family and household  purposes,
including automobile loans to individuals, and pre-approved lines of credit.

     Management believes that the loan portfolio is adequately diversified.  The
Company has no foreign  loans or loans for highly  leveraged  transactions.  The
Company has few agricultural loans.

Allowance for Loan Losses

     The  allowance  for loan losses at September  30, 2000 was  $1,967,000,  or
1.06%  of  loans  outstanding  (including  loans  held  for  sale)  compared  to
$1,581,000, or 1.06% of loans outstanding,  at December 31, 1999 and $1,578,000,
or 1.11% of loans  outstanding,  at September  30, 1999.  The allowance for loan
losses is based upon management's continuing evaluation of the collectability of
past due loans based on the  historical  loan loss  experience  of the  Company,
current  economic  conditions  affecting the ability of borrowers to repay,  the
volume of loans, the quality of collateral  securing  non-performing and problem
loans, and other factors deserving recognition.

     At September 30, 2000, the Company had $1,073,000 in non-accruing loans, no
restructured  loans,  no loans more than ninety days past due and still accruing
interest, and $502,000 in Other Real Estate Owned. These compares to $628,000 in
non-accruing  loans,  $150,000 in restructured  loans, no loans more than ninety
days past due on which interest was still being  accrued,  and $219,000 in Other
Real Estate Owned at December 31, 1999. At September  30, 1999,  The Company had
$501,000 in non-accruing loans, $177,000 in restructured loans and no loans more
than ninety days past due and still accruing interest and $219,000 in Other Real
Estate Owned.  Non-performing  loans at September 30, 2000 consisted of $160,000
in commercial loans;  $864,000 in mortgage loans; and $49,000 in consumer loans.
Non-performing  assets as a percentage  of loans and other real estate owned was
0.84%,  0.67% and 0.63% at September  30, 2000,  December 31, 1999 and September
30, 1999, respectively.

     Net charge-offs  during the three month period and nine month periods ended
September  30, 2000 were  $25,000 and  $112,000,  respectively,  compared to net
charge-offs  of $33,000  and  $56,000,  respectively,  for the  three-month  and
nine-month  periods ended September 30, 1999. The allowance for loan losses as a
percentage of non-performing loans was 183%, 233% and 203%, respectively,  as of
September 30, 2000, September 30, 1999 and December 31, 1999.


                                       10
<PAGE>

         The  Company  accounts  for  impaired  loans  in  accordance  with  the
provisions  of  Statement  of  Financial   Accounting  Standards  ("SFAS")  114,
Accounting  by Creditors for  Impairment of a Loan.  SFAS No. 114, as amended by
SFAS No. 118,  requires  that  impaired  loans be measured  based on the present
value of  expected  future  cash flows or the  underlying  collateral  values as
defined in the  pronouncement.  The Company  includes the provisions of SFAS No.
114, if any, in the allowance for loan losses. When the ultimate  collectability
of an impaired  loan's  principal  is in doubt,  wholly or  partially,  all cash
receipts are applied to principal. When this doubt does not exist, cash receipts
are applied under the contractual terms of the loan agreement first to principal
then to interest income. Once the recorded principal balance has been reduced to
zero,  future cash receipts are applied to interest  income,  to the extent that
any interest has been foregone. Further cash receipts are recorded as recoveries
on any amounts previously charged off. At each of September 30, 2000,  September
30, 1999, and December 31, 1999 the Company had no impaired loans.

Securities

          The Company  invests  primarily in obligations of the United States or
obligations  guaranteed as to principal and interest by the United States, other
taxable securities and in certain obligations of states and municipalities.  The
Company  does not  invest  in  corporate  bonds  nor  does it hold  any  trading
securities.  The Company uses its investment  portfolio to provide liquidity for
unexpected  deposit  liquidation  or  loan  generation,  to meet  the  Company's
interest rate sensitivity  goals and to generate income.  At September 30, 2000,
securities totaled $36,796,000. Securities increased $1,142,000 from $35,654,000
invested as of December 31, 1999 and $852,000  from  $35,944,000  invested as of
September 30, 1999.

         At September 30, 2000, the Company's  total  investments  classified as
available  for  sale  had a book  value of  $33,683,000  and a  market  value of
$33,125,000  for an  unrealized  net loss of $558,000.  This  compares to a book
value of  $32,356,000  and a market value of  $31,723,000  for an unrealized net
loss of $633,000 on the Company's  investments  classified as available for sale
at September  30, 1999.  At December 31, 1999 the  Company's  total  investments
classified  as available for sale had a book value of  $31,982,000  and a market
value of $31,209,000 for an unrealized net loss of $773,000.

Deposits

         The  Company's  primary  source of funds for loans and  investments  is
deposits. Total deposits were $199,673,000 at September 30, 2000, an increase of
$30,897,000, or 18.3%, from $168,776,000 at December 31, 1999 and an increase of
$38,393,000,  or 23.8%, from $161,280,000 at September 30, 1999. These increases
resulted from deposits generated by The Peoples National Bank, Bank of Anderson,
and Seneca National Bank in their  respective  markets.  Competition for deposit
accounts is primarily based on the interest rates paid, location convenience and
services offered.

         During  the  first  nine  months  of  2000,  interest-bearing  deposits
averaged  $161,765,000  compared  to  $120,387,000  for the first nine months of
1999. The average interest rate paid on interest-bearing  deposits was 4.89% for
the first nine  months of 2000  compared  to 4.21% for the first nine  months of
1999.  In pricing  deposits,  the Company  considers its  liquidity  needs,  the
direction and levels of interest rates and local market conditions. At September
30, 2000 interest-bearing deposits comprised 84.8% of total deposits compared to
85.7% at September 30, 1999.

         The Company's  core deposit base  consists of consumer  time  deposits,
savings,  NOW accounts,  money market accounts and checking  accounts.  Although
such core  deposits are becoming  increasingly  interest-sensitive  for both the
Company and the industry as a whole, they continue to provide the Company with a
large and  stable  source of  funds.  Core  deposits  as a  percentage  of total
deposits  averaged  approximately  74.8% for the nine months ended September 30,
2000.  The Company  closely  monitors  its reliance on  certificates  of deposit
greater than $100,000, which are generally considered to be less stable and less
reliable  than core  deposits.  At September 30, 2000,  certificates  of deposit
greater than $100,000  totaled  $42,172,000  compared to $20,494,000 at December
31, 1999 and $34,489,000 at September 30, 1999.


                                       11
<PAGE>

Short-Term Borrowings

         The  Company's  short-term  borrowings  are  comprised of daily federal
funds  purchased,  securities sold under repurchase  agreements,  and short-term
borrowings  from the Federal Home Loan Bank of Atlanta.  At  September  30, 2000
short-term  borrowings  totaled  $19,138,000  and were  comprised of $130,000 in
federal  funds  purchased,  $17,008,000  in  securities  sold  under  repurchase
agreements,  and  $2,000,000  in  short-term  Federal  Home Loan  Bank  advances
compared to  $20,434,000  in short-term  borrowings at December 31, 1999,  which
were comprised of $15,434,000 in securities sold under repurchase agreements and
$5,000,000 in short-term Federal Home Loan Bank advances.  At September 30, 1999
short-term  borrowings totaled $21,142,000,  which were comprised of $16,142,000
in securities  sold under  repurchase  agreements  and  $5,000,000 in short-term
Federal Home Loan Bank advances.

LIQUIDITY

         Liquidity management involves meeting the cash flow requirements of the
Company.  The Company's  liquidity position is primarily dependent upon its need
to respond to  short-term  demand for funds caused by  withdrawals  from deposit
accounts and upon the liquidity of its assets.  The Company's  primary liquidity
sources  include  cash and  funds  due  from  banks,  federal  funds  sold,  and
"securities  available for sale." In addition,  the Company  (through the Banks)
has the ability, on a short-term basis, to borrow funds from the Federal Reserve
System and to purchase  federal  funds from other  financial  institutions.  The
Banks are also members of the Federal Home Loan Bank System and have the ability
to borrow both  short-term and long-term  funds on a secured basis. At September
30, 2000, The Peoples National Bank had $2,000,000 in short-term borrowings from
the  Federal  Home Loan Bank of  Atlanta.  At  September  30,  2000 The  Peoples
National Bank had a total borrowing  capacity from the Federal Home Loan Bank of
Atlanta  equal to sixteen  percent  (16%) of its total  assets or  approximately
$27,000,000, with the unused borrowing capacity being $25,000,000. The Company's
other two bank  subsidiaries,  Bank of Anderson,  N. A. and Seneca National Bank
have a borrowing  capacity  with the Federal Home Loan Bank equal to ten percent
(10%)  of  their  total  assets  or  approximately  $5,100,000  and  $2,500,000,
respectively at September 30, 2000, all of which was available. At September 30,
2000, the Banks  collectively  had unused federal funds lines of credit totaling
$13,720,000 with correspondent banks.

         Peoples  Bancorporation,  Inc., the parent holding company, has limited
liquidity  needs.  Peoples  Bancorporation  requires  liquidity  to pay  limited
operating  expenses and  dividends.  These needs are  presently met by dividends
from The Peoples National Bank.

         Company management  believes its liquidity sources are adequate to meet
its  operating  needs  and does not know of any  trends  that may  result in the
Company's liquidity materially increasing or decreasing.

CAPITAL ADEQUACY AND RESOURCES

         The capital needs of the Company have been met through the retention of
earnings and from the proceeds of prior public stock offerings.


                                       12
<PAGE>


         The following  table sets forth the capital  ratios for the Company and
the Banks as of September 30, 2000.


                                 CAPITAL RATIOS
                             (Amounts in Thousands)
<TABLE>
<CAPTION>
                                                                                        Well                       Adequately
                                                                                     Capitalized                   Capitalized
                                                          Actual                     Requirement                   Requirement
                                                  Amount         Ratio          Amount         Ratio         Amount          Ratio
                                                  ------         -----          ------         -----         ------          -----
Company:
<S>                                              <C>             <C>           <C>             <C>           <C>               <C>
Total Risk-based Capital ...............         $27,336         14.57%        $18,762         10.00%        $15,009           8.00%
Tier 1 Risk-based Capital ..............         $25,370         13.52%        $11,259          6.00%        $ 7,506           4.00%
Leverage Ratio .........................         $25,370         10.23%        $12,400          5.00%        $ 9,920           4.00%

Peoples National Bank:
Total Risk-based Capital ...............         $14,927         11.42%        $13,071         10.00%        $10,457           8.00%
Tier 1 Risk-based Capital ..............         $13,637         10.44%        $ 7,837          6.00%        $ 5,225           4.00%
Leverage Ratio .........................         $13,637          8.02%        $ 8,502          5.00%        $ 6,801           4.00%

Bank of Anderson, N. A:
Total Risk-based Capital ...............         $ 5,706         15.02%        $ 3,799         10.00%        $ 3,039           8.00%
Tier 1 Risk-based Capital ..............         $ 5,264         13.85%        $ 2,280          6.00%        $ 1,520           4.00%
Leverage Ratio .........................         $ 5,264         10.55%        $ 2,495          5.00%        $ 1,996           4.00%

Seneca National Bank:
Total Risk-based Capital ...............         $ 3,490         19.06%        $ 1,831         10.00%        $ 1,465           8.00%
Tier 1 Risk-based Capital ..............         $ 3,261         17.81%        $ 1,099          6.00%        $   732           4.00%
Leverage Ratio .........................         $ 3,261         13.20%        $ 1,235          5.00%        $   988           4.00%

</TABLE>



                                       13
<PAGE>

EFFECTS OF REGULATORY ACTION

     The  management  of the  Company and the Banks are not aware of any current
recommendations by regulatory authorities, which if they were to be implemented,
would have a material effect on liquidity, capital resources, or operations.


Item 3.  QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT
         MARKET RISK

         Market risk is the risk of loss from adverse  changes in market  prices
and rates. The Company's market risk arises  principally from interest rate risk
inherent in its lending,  deposit and borrowing activities.  Management actively
monitors  and manages its  interest  rate risk  exposure.  Although  the Company
manages other risks,  such as credit  quality and liquidity  risk, in the normal
course  of  business,  management  considers  interest  rate risk to be its most
significant  market  risk and the risk that could  potentially  have the largest
material effect on the Company's  financial condition and results of operations.
Other types of market risks,  such as foreign  currency risk and commodity price
risk, do not arise in the normal course of the Company's business activities.

     The primary  objective of  Asset/Liability  Management at the Company is to
manage  interest  rate risk and achieve  reasonable  stability  in net  interest
income  throughout  interest rate cycles.  This is achieved by  maintaining  the
proper  balance of rate  sensitive  earning  assets and rate  sensitive  earning
liabilities. The relationship of rate sensitive earning assets to rate sensitive
liabilities,  is the principal  factor in projecting the effect that fluctuating
interest rates will have on future net interest  income.  Rate sensitive  assets
and  interest-bearing  liabilities  are those  that can be  repriced  to current
market rates within a relatively short time period. Management monitors the rate
sensitivity of earning assets and  interest-bearing  liabilities over the entire
life of these instruments,  but places particular emphasis on the first year. At
September 30, 2000,  on a cumulative  basis  through 12 months,  rate  sensitive
liabilities exceeded  rate-sensitive assets,  resulting in a liability sensitive
position  of  $53.3  million.  This  liability  sensitive  position  is  largely
attributable  to assuming that the  Company's  NOW  accounts,  which totaled $24
million at September 30, 2000, will reprice within one year. This assumption may
or may not hold true as the Company  believes its NOW accounts are generally not
price sensitive.



                                       14
<PAGE>

PART II.  OTHER INFORMATION

Item 1.       Legal Proceedings

                  The Company is involved  in various  claims and legal  actions
                  arising in the normal course of business.  Management believes
                  that these  proceedings  will not result in a material loss to
                  the Company.


Item 2.       Changes in Securities and Use of Proceeds

                  During the period  ended  September  30,  2000 the  Registrant
                  issued  shares of common  stock to the  following  classes  of
                  persons  upon the exercise of options  issued  pursuant to the
                  Registrant's  1993 Incentive Stock Option Plan. The securities
                  were  issued  pursuant  to  the  exemption  from  registration
                  provided by Section 4(2) of the Securities Act of 1933 because
                  the issuance did not involve a public offering.

                                                                   Aggregate
                         Class of           # of Shares            Exercise
   Date Issued          Purchasers             Issued                Price
   -----------          ----------             ------                -----
    01/07/2000          Employees                 775              $ 3,666
    06/12/2000          Employees              30,629*           $ 151,797
    08/13/2000          Employees               5,904              $21,998

              *Stock purchase by exchange of 7,971 shares.

Item 6.       Exhibits and Reports on Form 8-K

(a)      Exhibits.

               Exhibit 27  Financial Data Schedule

(b)      Reports on Form 8-K. No report on Form 8-K was filed during the quarter
         ended September 30, 2000



                                       15
<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.


                                    PEOPLES BANCORPORATION, INC.


Dated: November 6, 2000             By:    /s/ Robert E. Dye
                                         -------------------
                                           Robert E. Dye
                                           President and Chairman of the Board


Dated:  November 6, 2000            By:   /s/ William B. West
                                        ---------------------
                                           William B. West
                                           Sr. Vice President & CFO
                                           (principal financial officer)




                                       16
<PAGE>


                                  EXHIBIT INDEX


          Exhibit No. From
             Item 601 of
           Regulation S-B                            Description
           --------------                            -----------

                 27                                  Financial Data Schedule




                                       17