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
         March 31, 2001                                        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.)

               1800 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 March 31, 2001 was 3,168,046.




<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>
                                                                                          March 31,2001         December 31, 2000
                                                                                             Unaudited               Audited
                                                                                             ---------               -------
ASSETS
<S>                                                                                         <C>                    <C>
CASH AND DUE FROM BANKS .............................................................       $  11,133              $   9,462
INTEREST-BEARING DEPOSITS IN OTHER BANKS ............................................              57                     43
FEDERAL FUNDS SOLD ..................................................................          14,681                  1,180
                                                                                            ---------              ---------
     Total cash and cash equivalents ................................................          25,871                 10,685
SECURITIES
     Available for sale .............................................................          28,295                 31,673
     Held for investment (market value of $3,451,
         and $3,794) ................................................................           3,358                  3,754
       Other investments, at cost ...................................................           1,802                  1,088
LOANS-less allowance for loan losses
     of $2,102 and $2,023 ...........................................................         182,739                183,003
LOANS HELD FOR SALE .................................................................          26,212                 16,992
PREMISES AND EQUIPMENT, net of accumulated
     depreciation and amortization ..................................................           8,070                  8,138
ACCRUED INTEREST RECEIVABLE .........................................................           1,707                  1,816
OTHER ASSETS ........................................................................           3,368                  2,351
                                                                                            ---------              ---------
         TOTAL ASSETS ...............................................................       $ 281,422              $ 259,500
                                                                                            =========              =========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
     Noninterest-bearing ............................................................       $  28,097              $  28,716
     Interest-bearing ...............................................................         202,104                176,918
                                                                                            ---------              ---------
         Total deposits .............................................................         230,201                205,634
SECURITIES SOLD UNDER REPURCHASE
     AGREEMENTS .....................................................................          15,442                 14,157
FEDERAL FUNDS PURCHASED .............................................................               0                  3,660
NOTES PAYABLE TO FEDERAL HOME LOAN BANK .............................................           6,100                  8,000
ACCRUED INTEREST PAYABLE ............................................................           2,001                  1,721
OTHER LIABILITIES ...................................................................           1,085                    513
                                                                                            ---------              ---------
         Total Liabilities ..........................................................         254,829                233,685
                                                                                            ---------              ---------
SHAREHOLDERS' EQUITY
Common Stock - 10,000,000 shares authorized, $1.67
     Par value per share, 3,168,046 shares outstanding ..............................           5,290                  5,290
Additional paid-in capital ..........................................................          20,587                 20,587
Retained Earnings ...................................................................             585                      0
Accumulated other comprehensive income ..............................................             131                    (62)
                                                                                            ---------              ---------
         Total Shareholder's Equity .................................................          26,593                 25,815
                                                                                            ---------              ---------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY ...........................................       $ 281,422              $ 259,500
                                                                                            =========              =========
</TABLE>






                                       2
<PAGE>



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

<TABLE>
<CAPTION>
                                                                                                             (Unaudited)
                                                                                                         Three Months Ended
                                                                                                              March 31,
                                                                                                              ---------
                                                                                                    2001                    2000
                                                                                                    ----                    ----
INTEREST INCOME
<S>                                                                                               <C>                     <C>
   Interest and fees on loans ......................................................              $    4,418              $    3,522
   Interest on securities
       Taxable .....................................................................                     531                     523
       Tax-exempt ..................................................................                      44                      54
   Interest on federal funds .......................................................                      62                     152
                                                                                                  ----------              ----------
Total interest income ..............................................................                   5,055                   4,251
                                                                                                  ----------              ----------

INTEREST EXPENSE
   Interest on deposits ............................................................                   2,445                   1,759
   Interest on federal funds purchased and securities
       sold under repurchase agreements ............................................                     179                     192
Interest on notes payable Federal Home Loan Bank ...................................                     162                      26
                                                                                                  ----------              ----------
Total interest expense .............................................................                   2,786                   1,977
                                                                                                  ----------              ----------

Net interest income ................................................................                   2,269                   2,274

PROVISION FOR LOAN LOSSES ..........................................................                     133                     163
                                                                                                  ----------              ----------

Net interest income after provision for loan losses ................................                   2,136                   2,111

NON-INTEREST INCOME
   Service fees and other income ...................................................                   1,214                     465
                                                                                                  ----------              ----------

NON-INTEREST EXPENSES
   Salaries and benefits ...........................................................                   1,274                   1,048
   Occupancy .......................................................................                     123                      86
   Equipment .......................................................................                     145                     136
   Other operating expenses ........................................................                     697                     517
                                                                                                  ----------              ----------
             Total noninterest expenses ............................................                   2,239                   1,787
                                                                                                  ----------              ----------
   Income before income taxes ......................................................                   1,111                     789

PROVISION FOR INCOME TAXES .........................................................                     399                     263
                                                                                                  ----------              ----------

   Net income ......................................................................              $      712              $      526
                                                                                                  ==========              ==========

INCOME PER COMMON SHARE:
   BASIC ...........................................................................              $     0.22              $     0.17
                                                                                                  ==========              ==========
   DILUTED .........................................................................              $     0.22              $     0.16
                                                                                                  ==========              ==========

WEIGHTED AVERAGE COMMON SHARES:
   BASIC ...........................................................................               3,168,046               3,137,822
                                                                                                  ==========              ==========
   DILUTED .........................................................................               3,255,229               3,257,821
                                                                                                  ==========              ==========

DIVIDENDS PAID PER COMMON SHARE ....................................................              $    0.040              $    0.035
                                                                                                  ==========              ==========
</TABLE>





                                       3
<PAGE>



                  Peoples Bancorporation, Inc. and Subsidiaries
           Consolidated Statements of Changes in Shareholders' Equity
               for the three months ended March 31, 2001 and 2000

                    (Amounts in thousands except share data)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                                      Accumulated
                                                   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, 1999 * .........        2,987,627    $    4,989    $   18,867     $        0   $        (510)   $     23,346
Net Income ...........................                                                         526                             526
Other comprehensive income, net of
tax:
   Unrealized holding gains on
   securities available for sale                                                                               (83)            (83)
   Less reclassification
   adjustments for gains
   included in net income ............                                                                           0               0
                                                                                                                       -----------
Comprehensive income .................                                                                                         443
Cash Dividends .......................                                                        (105)                           (105)
Proceeds from stock options ..........              775             2             2                                              4
                                              ---------    ----------    ----------     ----------   -------------    ------------
Balance, March 31, 1999 ..............        2,988,402    $    4,991    $   18,869     $      421   $        (593)   $     23,688
                                              =========    ==========    ==========     ==========   =============    ============

Balance, December 31, 2000 * .........        3,168,046    $    5,290    $   20,587     $        0   $         (62)   $     25,815
Net Income ...........................                                                         712                             712
Other comprehensive income, net of
tax:
   Unrealized holding losses on
   securities available for sale .....                                                                         193             193
   Less reclassification
   adjustments for gains
   included in net income ............                                                                           0               0
                                                                                                                      ------------
Comprehensive income .................                                                                                         905
Cash Dividends .......................                                                        (127)                           (127)
Proceeds from stock options ..........
                                              ---------    ----------    ----------     ----------   -------------    ------------
Balance, March 31, 2000 ..............        3,168,046    $    5,290    $   20,587     $      585   $         131    $     26,593
                                              =========    ==========    ==========     ==========   =============    ============
</TABLE>

* 5% stock  dividends  issued in January 2000 and 2001 are reflected in December
31, 1999 and 2000 data.





                                       4
<PAGE>



                  Peoples Bancorporation, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows
                             (Amounts in thousands)
<TABLE>
<CAPTION>
                                                                                                              (Unaudited)
                                                                                                          Three Months Ended
                                                                                                               March 31,
                                                                                                               ---------
                                                                                                       2001                 2000
                                                                                                       ----                 ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                                  <C>                   <C>
   Net Income ..........................................................................             $    712              $    526
   Adjustments to reconcile net income to net cash provided
     by operating activities
   Provision for loan losses ...........................................................                  133                   163
   Depreciation and amortization .......................................................                  132                   124
   Amortization and accretion (net) of premiums and
     discounts on securities ...........................................................                  (16)                   11
    Origination of mortgage loans held for sale ........................................              (93,913)              (32,261)
    Sale of mortgage loans held for sale ...............................................               84,693                21,931
   (Increase)decrease in accrued interest receivable ...................................                  108                   (31)
   (Increase) decrease in other assets .................................................               (1,119)                  109
   Increase in accrued interest payable ................................................                  279                   124
   Increase (decrease) in other liabilities ............................................                  571                  (111)
                                                                                                     --------              --------
     Net cash provided by operating activities .........................................               (8,420)               (9,415)
                                                                                                     --------              --------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of securities available for sale ..........................................               (8,575)               (3,780)
   Proceeds from the maturity of securities available for sale .........................                1,246                   878
   Proceeds from the call of securities available for sale .............................               10,700                   133
   Net (increase) decrease in loans ....................................................                  132                (8,816)
   Purchase of premises and equipment ..................................................                  (63)                 (243)
                                                                                                     --------              --------
     Net cash used in investing activities .............................................                3,440               (11,828)
                                                                                                     --------              --------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits ............................................................               24,567                14,536
   Net increase in securities sold under repurchase
     agreements ........................................................................                1,286                   728
   Net increase(decrease) in Federal funds purchased ...................................               (3,660)                2,230
   Net decrease in notes payable Federal Home Loan Bank ................................               (1,900)               (5,000)
   Proceeds from stock options exercised ...............................................                    0                     4
   Cash dividend .......................................................................                 (127)                 (113)
                                                                                                     --------              --------
     Net cash provided by financing activities .........................................               20,166                12,385
                                                                                                     --------              --------
     Net increase (decrease) in cash and cash equivalents ..............................               15,186                (8,858)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ...........................................               10,685                20,754
                                                                                                     --------              --------
CASH AND CASH EQUIVALENTS, END OF PERIOD ...............................................             $ 25,871              $ 11,896
                                                                                                     ========              ========

CASH PAID FOR
     Interest ..........................................................................             $  2,505              $  1,853
                                                                                                     ========              ========
     Income Taxes ......................................................................             $     67              $     42
                                                                                                     ========              ========
</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 2000  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 $0.04 per common share
to shareholders of record March 23, 2001 payable April 6, 2001.

     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 3,168,046
at March 31, 2001 and 3,137,822 at March 31, 2000.  The weighted  average number
of common  shares  outstanding  for  diluted  net income  per  common  share was
3,255,229 at March 31, 2001 and 3,257,821 at March 31, 2000.

      The Company issued a  five-percent  common stock dividend in January 2001.
Per share data in 2000 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.

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

     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 2000
Annual  Report  of  Peoples  Bancorporation,  Inc.  on  Form  10-K.  Results  of
operations for the three-month  period ending March 31, 2001 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.



                                       6
<PAGE>

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, and the election became
effective June 23, 2000. As a financial holding company, Peoples Bancorporation,
Inc. may engage in  activities  that are  financial in nature or incidental to a
financial  activity as described in the law and regulations  adopted pursuant to
the law. To date, the Company has not engaged in any activities other than those
permitted  to a bank  holding  company  and has not yet taken  advantage  of its
status as a financial holding company to engage in additional activities.

       The Company 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.

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EARNINGS PERFORMANCE

Overview

     The  consolidated  Company's  net income for the first  quarter of 2001 was
$712,000,  or $0.22 per diluted share compared to $526,000, or $0.16 per diluted
share for the first  quarter  of 2000.  Return on  average  equity for the three
months  ended March 31, 2001 was 11.03%  compared to 8.76% for the three  months
ended March 31, 2000.  Return on average assets for the three months ended March
31, 2001 was 1.07%  compared to 0.96% for the three months ended March 31, 2000.
The  increases in the Company's  net income,  earnings per fully diluted  share,
return on average equity,  and return on average assets in 2001 are attributable
to the attainment of  profitability  associated with Seneca National Bank, which
commenced  operations in February  1999,  and increased  earnings at The Peoples
National Bank and at Bank of Anderson,  N. A. resulting largely from an increase
in interest income from a larger base of interest-earning assets coupled with an
increase in fee income  associated with the Company's  mortgage loan operations.
The Peoples  National  Bank  recorded  net  earnings of $633,000 for the quarter
ended March 31, 2001  compared to net earnings of $503,000 for the quarter ended
March 31, 2000. Bank of Anderson, N. A. recorded net earnings of $75,000 for the
quarter ended March 31, 2001 compared to net earnings of $32,000 for the quarter
ended March 31, 2000.  Seneca  National Bank recorded net earnings of $7,000 for
the  quarter  ended  March 31,  2001  compared  to a net loss of $1,000  for the
quarter ended March 31, 2000.

Interest Income, Interest Expense and 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  earned on
assets and the  interest  paid for the  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  decreased  $5,000,  or 0.2%,  to  $2,269,000  in the
quarter  ended March 31, 2001  compared to $2,274,000 in the quarter ended March
31, 2000.  The  Company's  net interest  margin was 3.52% for the quarter  ended
March 31,  2001  compared to 4.51% for the quarter  ended  March 31,  2000.  The
decreases in the dollar  amount of net  interest  income and in the net interest
margin  resulted  primarily  from  decreases  in rates  earned  on  assets  that
outweighed corresponding decreases in rates paid on interest-bearing liabilities
at the Banks, which resulted from falling market rates.

     The  Company's  total  interest  income  for the first  quarter of 2001 was
$5,055,000  compared to $4,251,000 for the first quarter of 2000, an increase of
$804,000,  or 18.9%.  Interest and fees on loans, the largest component of total
interest income,  increased  $896,000 in the first quarter of 2001 to $4,418,000
compared to $3,522,000 for the first quarter of 2000, an increase of 25.4%.  The
significant  increase in interest and fees on loans is  attributable to a larger
base of  outstanding  loans in the first  quarter of 2001 when  compared  to the
first quarter of 2000.

                                       7
<PAGE>

     The  Company's  total  interest  expense for the first  quarter of 2001 was
$2,786,000  compared to $1,977,000 for the first quarter of 2000, an increase of
$809,000, or 40.9%. Interest expense on deposits, the largest component of total
interest expense,  increased $686,000 in the first quarter of 2001 to $2,445,000
compared  to  $1,759,000  for the first  quarter of 2000,  an increase of 39.0%.
Interest  on Federal  funds  purchased  and  securities  sold  under  repurchase
agreements,  the second largest component of total interest  expense,  decreased
$13,000,  or 6.8%, to $179,000 in the first quarter of 2001 compared to $192,000
for the first  quarter of 2000.  Interest on notes  payable to the Federal  Home
Loan Bank,  the third largest  component of total  interest  expense,  increased
$136,000,  or 523.1%,  to  $162,000  in the first  quarter of 2001  compared  to
$26,000  for the  first  quarter  of 2000.  The  significant  increase  in total
interest expense and corresponding increases in interest expense on deposits and
interest  expense on notes  payable to the  Federal  Home Loan Bank are  largely
attributable to increases in the dollar amounts  outstanding in these categories
of liabilities.

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 losses inherent in the Company's loan portfolio.

     The provision for loan losses charged to operations during the three months
ended March 31, 2001 was  $133,000  compared  to $163,000  for the three  months
ended March 31, 2000.  The decrease in the  Company's  provision for loan losses
for the 2001 quarter is partly  attributable to some  diminishment of the strong
loan growth experienced by the Company's banking  subsidiaries.  During the 2001
quarter,  The Peoples  National  Bank made  provisions  of $105,000  compared to
provisions  of  $90,000  in the  2000  quarter.  Bank of  Anderson,  N. A.  made
provisions  of $10,000  for the 2001  quarter  compared  to $43,000 for the 2000
quarter. Seneca National Bank made provisions of $18,000 during the 2001 quarter
compared to $30,000 for the 2000 quarter.

Non-interest Income

     Non-interest  income increased  $749,000,  or 161.1%, to $1,214,000 for the
first quarter of 2001  compared to $465,000 for the first  quarter of 2000.  The
increase is largely attributable to an increase of $587,000,  or 304.1%, in fees
generated from the Company's  mortgage loan operations,  which were $780,000 for
the three months ended March 31, 2001, compared to $193,000 for the three months
ended March 31, 2000.  This  significant  increase in fees  associated  with the
Company's  mortgage  lending  operations  resulted from lower long term mortgage
interest  rates which resulted in a significant  amount of refinancing  activity
and new mortgage loans.

     Another  factor  contributing  to the  increase in  non-interest  income is
additional  fee  income  of  $187,000  recorded  in the  first  quarter  of 2001
associated with a new overdraft  privilege product which was implemented  during
the late third  quarter  of 2000.  No gain or loss was  realized  on the sale of
available-for-sale  securities  during the first three  months of either 2001 or
2000.

Non-interest Expense

     Total  non-interest  expense  increased  $452,000  or 25.3%  for the  first
quarter  of 2001 over the first  quarter of 2000.  Salaries  and  benefits,  the
largest component of non-interest expense,  increased $226,000, or 21.6%, in the
first  quarter of 2001  compared to the first  quarter of 2000.  The increase in
salaries  and  benefits  is  primarily   attributable  to  additional   staffing
associated  with the  Company's  overall  growth  and  normal  salary  increases
throughout the Company.  Occupancy and equipment expenses increased $46,000,  or
20.7%, in the first quarter of 2001 over the first quarter of 2000 due primarily
to an increase in depreciation  expense and maintenance expenses associated with
the purchase of a new corporate office building in October 2000.



                                       8
<PAGE>

BALANCE SHEET REVIEW

Loans

     Outstanding  loans  represent  the largest  component of earning  assets at
71.3% of total earning assets. As of March 31, 2001, the Company had total gross
loans  outstanding of  $184,841,000.  Loans  decreased  $185,000,  or 0.1%, from
$185,026,000 in total gross outstanding loans at December 31, 2000 and increased
$26,971,000,  or 17.1% from  $157,870,000,  in total gross loans  outstanding at
March 31,  2000.  The  increase  resulted  from new loans  generated  by Bank of
Anderson  and Seneca  National  Bank and strong loan growth  experienced  by The
Peoples National Bank.

     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  quarter  ended  March 31, 2001 was 8.17%
compared to 8.97% for the quarter ended March 31, 2000.  Approximately  37.9% of
the Company's loans are tied to the prime interest rate.

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

     The Company's real estate loans are primarily  construction loans and loans
secured by real estate,  both  commercial  and  residential,  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  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 March  31,  2001 the  Company  held
$26,212,000  of mortgage  loans for sale compared to $16,992,000 at December 31,
2000 and  $9,800,000 at March 31, 2000.  During the first  quarter of 2001,  the
Company originated $93,912,000 and sold $67,700,000 in mortgages held for sale.

     The Company's  commercial lending activity is directed  principally towards
businesses  whose demands for funds fall within each 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,  and
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  usually  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 March 31, 2001,  approximately  $13,365,000,  or 10.2%, 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 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 March 31, 2001 was $2,102,000,  or 1.0% of
loans  outstanding  compared  to  $2,023,000,  or 1.0% of loans  outstanding  at
December 31, 2000 and to $1,690,000,  or 1.01% of loans outstanding at March 31,
2000.  The  allowance  for loan  losses is based  upon  management's  continuing
evaluation of the  collectibility 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.



                                       9
<PAGE>

     At March 31,  2001,  the Company had  $904,000 in  non-accruing  loans,  no
restructured  loans,  $177,000 in loans more than ninety days past due and still
accruing  interest,  and $1,065,000 in Other Real Estate Owned. This compares to
$993,000 in non-accruing loans,  $67,000 in restructured loans, $67,000 in loans
more than ninety days past due on which  interest was still being  accrued,  and
$478,000 in other real estate owned at December 31, 2000. At March 31, 2000, the
Company had $485,000 in non-accruing  loans, no 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 March 31, 2001  consisted of
$260,000 in commercial loans; $815,000 in mortgage loans; and $6,000 in consumer
loans.  Non-performing  assets as a  percentage  of loans and other real  estate
owned was 1.01%, 0.81% and 0.29% at March 31, 2001,  December 31, 2000 and March
31, 2000, respectively.

     Net  charge-offs  during  the first  three  months  of 2001  were  $54,000,
compared to net  charge-offs  of $53,000 for the first three months 2000 and net
charge-offs  of $83,000 for the year ended  December 31, 2000. The allowance for
loan losses as a percentage  of  non-performing  loans was 194%,  348% and 173%,
respectively, as of March 31, 2001, March 31, 2000 and December 31, 2000.

     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.  At each of March 31, 2001,  March 31, 2000 and December 31, 2000
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,  to secure public  deposits,  and to generate
income. At March 31, 2001, securities totaled $33,455,000.  Securities decreased
$3,060,000 from $36,515,000 invested as of December 31, 2000 and $4,831,000 from
$38,286,000 invested as of March 31, 2000.

     At March 31, 2001, the Company's total investments  classified as available
for sale had a book value of $28,097,000  and a market value of $28,295,000  for
an unrealized gain of $198,000. This compares to a book value of $35,210,000 and
a  market  value  of  $34,312,000  for an  unrealized  loss of  $898,000  on the
Company's  investments  classified  as available  for sale at March 31, 2000. At
December 31, 2000 the Company's  total  investments  classified as available for
sale had a book value of $31,767,000  and a market value of  $31,673,000  for an
unrealized loss of $94,000.

Deposits

     The  Bank's  primary  source  of funds for  loans  and  investments  is its
deposits. Deposits grew $24,567,000, or 11.9%, to $230,201,000 at March 31, 2001
from  $205,634,000  at  December  31,  2000  and  $46,889,000,  or  25.6%,  from
$183,312,000 at March 31, 2000. The increase resulted from deposits generated by
all of the Banks.  Competition  for deposit  accounts is primarily  based on the
interest rates paid, location convenience and services offered.

     During the first three months of 2001,  interest-bearing  deposits averaged
$184,051,000  compared to $152,483,000  for the first three months of 2000. Some
of the increase in  interest-bearing  deposits is attributable to the receipt by
The Peoples National Bank of $14,077,000 in certificates of deposit from various
sources through a program designated to seek deposits via the Internet. This was
done to reduce the need for liquidity  from  short-term  sources such as federal
funds  purchased and  short-term  borrowings  from the Federal Home Loan Bank of
Atlanta. These deposits are also being used to fund Peoples National Bank's need
for short-term  mortgage lending activities.  The certificates  garnered through
the internet were in  increments of less than $100,000 each with original  fixed
terms  ranging from 90 to 180 days and with interest  rates  comparable to those
offered in the bank's local market area for like amounts and terms.



                                       10
<PAGE>

     The average interest rate paid on  interest-bearing  deposits was 5.38% for
the first  quarter of 2001  compared to 4.61% for the first  quarter of 2000. In
pricing  deposits,  the Company considers its liquidity needs, the direction and
levels of  interest  rates  and  local  market  conditions.  At March  31,  2001
interest-bearing deposits comprised 87.8% of total deposits compared to 86.2% at
March 31, 2000.

     The Company's core deposit base consists largely 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,  such core deposits continue to provide the
Company with a large  source of funds.  Core  deposits as a percentage  of total
deposits averaged approximately 75.6% and 79.5% for the three months ended March
31, 2001 and 2000,  respectively.  The Company closely  monitors its reliance on
certificates  greater than $100,000,  which are generally considered less stable
and less reliable than core deposits.

Borrowings

     The  Company's   borrowings  are  comprised  of  Federal  funds  purchased,
securities sold under repurchase  agreements,  and both short-term and long-term
advances  from  the  Federal  Home  Loan  Bank of  Atlanta.  At March  31,  2001
short-term  borrowings totaled  $16,542,000 and were comprised of $15,442,000 in
securities  sold  under  repurchase  agreements  and  $1,100,000  in  short-term
advances  from the  Federal  Home Loan Bank of  Atlanta.  At  December  31, 2000
short-term  borrowings  totaled  $17,817,000 and were comprised of $3,660,000 in
Federal  funds  purchased,  $14,157,000  in  securities  sold  under  repurchase
agreements,  and  $3,000,000 in  short-term  advances from the Federal Home Loan
Bank of Atlanta. At March 31, 2000 short-term borrowings totaled $18,392,000 and
were  comprised of  $2,230,000 in Federal funds  purchased  and  $16,162,000  in
securities  sold under  repurchase  agreements.  Short-term  borrowings are used
primarily  for the  immediate  cash needs of the  Company.  The Company also had
$5,000,000  of long-term  advances from the Federal Home Loan Bank of Atlanta at
March 31, 2001 compared to  $5,000,000 at December 31, 2000.  The Company had no
long-term Federal Home Loan Bank of Atlanta advances at March 31, 2000.

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 increased  loan demand and
withdrawals  from deposit  accounts.  The Company's  primary  liquidity  sources
include cash and 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 and  long-term  funds on a secured  basis.  At March 31,  2001 The Peoples
National  Bank had total  borrowing  capacity from the Federal Home Loan Bank of
Atlanta  equal to  twenty  percent  (20%) of its total  assets or  approximately
$37,942,000.  The unused portion of this line of credit was $31,842,000 at March
31, 2001. The Company's other two bank subsidiaries, Bank of Anderson and Seneca
National  Bank,  each had  established  secured lines of credit with the Federal
Home Loan  Bank  totaling  ten  percent  (10%) of each  bank's  total  assets or
approximately  $6,228,000  and  $2,690,000  respectively.  At March 31, 2001 the
Banks had  unused  federal  funds  lines of  credit  totaling  $14,600,000  with
correspondent banks.

     Peoples  Bancorporation,  Inc.,  the parent  holding  company,  has limited
liquidity needs, and requires  liquidity to pay limited  operating  expenses and
dividends only.

     During the first quarter of 2001,  the Company had no capital  expenditures
other than through the normal course of business.  No large capital expenditures
are anticipated through the remainder of 2001.

     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.




                                       11
<PAGE>


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.

     The following  table sets forth the capital  ratios for the Company and the
Banks as of March 31, 2001:

                                 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 ...............         $28,564          13.93%      $20,505          10.00%      $16,404          8.00%
Tier 1 Risk-based Capital ..............          26,462          12.90        12,308           6.00         8,205          4.00
Leverage Ratio .........................          26,462           9.34        14,166           5.00        11,333          4.00

Peoples National Bank:
Total Risk-based Capital ...............         $15,990          11.50%      $13,904          10.00%      $11,123          8.00%
Tier 1 Risk-based Capital ..............          14,648          10.53         8,346           6.00         5,564          4.00
Leverage Ratio .........................          14,648           7.98         9,178           5.00         7,342          4.00

Bank of Anderson, N. A:
Total Risk-based Capital ...............         $ 5,956          13.87%      $ 4,294          10.00%      $ 3,435          8.00%
Tier 1 Risk-based Capital ..............           5,439          12.67         2,576           6.00         1,717          4.00
Leverage Ratio .........................           5,439           9.30         2,924           5.00         2,339          4.00

Seneca National Bank:
Total Risk-based Capital ...............         $ 3,539          17.25%      $ 2,052          10.00%      $ 1,641          8.00%
Tier 1 Risk-based Capital ..............           3,296          16.07         1,231           6.00           820          4.00
Leverage Ratio .........................           3,296          12.45         1,324           5.00         1,059          4.00
</TABLE>





                                       12
<PAGE>

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
March 31,  2001,  on a  cumulative  basis  through  12  months,  rate  sensitive
liabilities exceeded  rate-sensitive assets,  resulting in a liability sensitive
position  of  $70.3  million.  This  liability  sensitive  position  is  largely
attributable  to the assumption  that the Company's NOW accounts,  which totaled
$27.8 million at March 31, 2001,  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.

PART II.  OTHER INFORMATION

Item 1.       Legal Proceedings

               By Stipulation of Dismissal, filed April 23, 2001 in the Court of
               Common Pleas for the Thirteenth  Judicial Circuit of the State of
               South  Carolina,  the legal action by Thomas T. Brittain  against
               Peoples National Bank, and the Bank's  counterclaims  against Mr.
               Brittain,  which  were  previously  disclosed  in  the  Company's
               reports  pursuant to the  Securities  Exchange Act of 1934,  were
               dismissed  with  prejudice.  As a result  of the  dismissal  with
               prejudice,  the matter has been finally  resolved,  neither party
               was required to make any payment to the other, and the proceeding
               may not be reinstated.



                                       13
<PAGE>

Item 6.       Exhibits and Reports on Form 8-K

(a)      Exhibits.

               No Exhibits

(b)      Reports on Form 8-K.

               No reports on Form 8-K were filed during the quarter  ended March
31, 2001.





















                                       14
<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:  May 4, 2001                      By: /s/ Robert E. Dye
                                            ------------------------------------
                                             Robert E. Dye
                                             President and Chairman of the Board


Dated:  May 4, 2001                      By: /s/ William B. West
                                            ------------------------------------
                                             William B. West
                                             Sr. Vice President & CFO
                                             (principal financial officer)




                                       15