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
        June 30, 2002                                           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 June 30, 2002 was 3,341,370.




<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>
                                                                                         June 30, 2002        December 31, 2001
                                                                                          Unaudited                Audited
                                                                                          ---------                -------
ASSETS
<S>                                                                                        <C>                    <C>
CASH AND DUE FROM BANKS .........................................................          $ 13,882               $  5,199
INTEREST-BEARING DEPOSITS IN OTHER BANKS ........................................                19                     24
FEDERAL FUNDS SOLD ..............................................................            38,454                  7,203
                                                                                           --------               --------
     Total cash and cash equivalents ............................................            52,355                 12,426
SECURITIES
     Available for sale .........................................................            56,419                 30,339
     Held for investment (market value
       of $3,177, and $3,417) ...................................................             3,059                  3,339
     Other investments, at cost .................................................             1,884                  1,815
LOANS-less allowance for loan losses
       of $2,785 and $2,288 .....................................................           225,228                210,248
MORTGAGE LOANS HELD FOR SALE ....................................................            13,100                 40,925
PREMISES AND EQUIPMENT, net of accumulated
       depreciation and amortization ............................................             8,816                  7,961
ACCRUED INTEREST RECEIVABLE .....................................................             1,788                  1,683
OTHER ASSETS ....................................................................             3,081                  3,430
                                                                                           --------               --------
         TOTAL ASSETS ...........................................................          $365,730               $312,166
                                                                                           ========               ========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
     Noninterest-bearing ........................................................          $ 39,341               $ 34,579
     Interest-bearing ...........................................................           265,381                202,223
                                                                                           --------               --------
         Total deposits .........................................................           304,722                236,802
SECURITIES SOLD UNDER REPURCHASE
     AGREEMENTS .................................................................            22,776                 20,646
FEDERAL FUNDS PURCHASED .........................................................                 0                      0
NOTES PAYABLE TO FEDERAL HOME LOAN BANK .........................................             5,000                 23,985
ACCRUED INTEREST PAYABLE ........................................................             1,191                  1,218
OTHER LIABILITIES ...............................................................             1,320                    964
                                                                                           --------               --------
         Total Liabilities ......................................................           335,009                283,615
                                                                                           --------               --------
SHAREHOLDERS' EQUITY
Common Stock - 10,000,000 shares authorized, $1.67
     Par value per share, 3,341,370 shares and 3,328,607
       shares outstanding, respectively  ........................................             5,580                  5,559
Additional paid-in capital ......................................................            22,855                 22,786
Retained Earnings ...............................................................             1,756                     32
Accumulated other comprehensive income ..........................................               530                    174
                                                                                           --------               --------
         Total Shareholders' Equity .............................................            30,721                 28,551
                                                                                           --------               --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ......................................          $365,730               $312,166
                                                                                           ========               ========
</Table>




                                       1
<Page>


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

<Table>
<Caption>
                                                                              Three Months Ended                  Six Months Ended
                                                                                   June 30,                            June 30,
                                                                            2002            2001             2002              2001
                                                                            ----            ----             ----              ----
INTEREST INCOME
<S>                                                                    <C>              <C>              <C>              <C>
Interest and fees on loans .....................................       $    4,228       $    4,512       $    8,607       $    8,930
Interest on securities
     Taxable ...................................................              624              446            1,088              977
     Tax-exempt ................................................               35               42               72               86
Interest on federal funds ......................................              139              181              198              243
                                                                       ----------       ----------       ----------       ----------
Total interest income ..........................................            5,026            5,181            9,965           10,236

INTEREST EXPENSE
Interest on deposits ...........................................            1,875            2,611            3,405            5,056
Interest on federal funds purchased and securities
     sold under repurchase agreements ..........................              120              170              244              349
Interest on notes payable Federal Home
     Loan Bank .................................................               62               68              133              230
                                                                       ----------       ----------       ----------       ----------
Total interest expense .........................................            2,057            2,849            3,782            5,635

Net interest income ............................................            2,969            2,332            6,183            4,601
PROVISION FOR LOAN LOSSES ......................................              198              119              511              252
                                                                       ----------       ----------       ----------       ----------
Net interest income after provision for
     loan losses ...............................................            2,771            2,213            5,672            4,349

NON-INTEREST INCOME
Service fees and other income ..................................              627              451            1,150              885
Mortgage banking income ........................................              759              841            1,638            1,621
                                                                       ----------       ----------       ----------       ----------
                                                                            1,386            1,292            2,788            2,506

NON-INTEREST EXPENSE
Salaries and benefits ..........................................            1,517            1,395            3,001            2,669
Occupancy ......................................................              122              125              245              248
Equipment ......................................................              180              164              332              309
Other operating expenses .......................................              871              712            1,620            1,409
                                                                       ----------       ----------       ----------       ----------
                                                                            2,690            2,396            5,198            4,635
Income before income taxes .....................................            1,467            1,109            3,262            2,220

PROVISION FOR INCOME TAXES .....................................              526              397            1,171              796
                                                                       ----------       ----------       ----------       ----------

Net income .....................................................       $      941       $      712       $    2,091       $    1,424
                                                                       ==========       ==========       ==========       ==========

INCOME PER COMMON SHARE:
     BASIC .....................................................       $     0.28       $     0.21       $     0.63       $     0.43
                                                                       ==========       ==========       ==========       ==========
     DILUTED ...................................................       $     0.27       $     0.21       $     0.61       $     0.42
                                                                       ==========       ==========       ==========       ==========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
    BASIC ......................................................        3,337,116        3,326,448        3,332,863        3,326,448
                                                                       ==========       ==========       ==========       ==========
    DILUTED ....................................................        3,445,871        3,409,898        3,434,066        3,414,225
                                                                       ==========       ==========       ==========       ==========
DIVIDENDS PAID PER COMMON
     SHARE .....................................................       $     0.06       $     0.04       $     0.11       $     0.08
                                                                       ==========       ==========       ==========       ==========
</Table>



                                       2
<Page>


                  Peoples Bancorporation, Inc. and Subsidiaries
           Consolidated Statements of Changes in Shareholders' Equity
                 for the six months ended June 30, 2001 and 2002

                    (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, 2000* .......................    3,168,046    $    5,290    $   20,587   $        0   $      (62)  $   25,815
Net Income ........................................                                                 1,424                     1,424
Other comprehensive income,
net of  tax:
   Unrealized holding gains on
   securities available for sale ..................                                                                171          171
   Less reclassification
   adjustments for gains
   included in net income .........................                                                                 0             0
                                                                                                                         ----------
Comprehensive income ..............................                                                                           1,595
Cash Dividends ....................................                                                  (254)                     (254)
Proceeds from stock options .......................                                                                               0
                                                      ----------    ----------    ----------   ----------   ----------   ----------
Balance, June 30, 2001 ............................    3,168,046    $    5,290    $   20,587   $    1,170   $      109   $   27,156
                                                      ==========    ==========    ==========   ==========   ==========   ==========

Balance, December 31, 2001* .......................    3,328,609    $    5,559    $   22,786   $       32   $      174   $   28,551
Net Income ........................................                                                 2,091                     2,091
Other comprehensive income, net
of tax:
   Unrealized holding losses on
   securities available for sale ..................                                                                356          356
   Less reclassification
   adjustments for gains
   included in net income .........................                                                                  0            0
                                                                                                                         ----------
Comprehensive income ..............................                                                                           2,447
Cash Dividends ....................................                                                  (367)                     (367)
Proceeds from stock options .......................       12,761            21            69                                     90
                                                      ----------    ----------    ----------   ----------   ----------   ----------
Balance, June 30, 2002 ............................    3,341,370    $    5,580    $   22,855   $    1,756   $      530   $   30,721
                                                      ==========    ==========    ==========   ==========   ==========   ==========
</Table>


* 5% stock  dividends  issued in January 2001 and 2002 are reflected in December
31, 2000 and 2001 data.





                                       3
<Page>



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

<Table>
<Caption>
                                                                                                             (Unaudited)
                                                                                                            Six months Ended
                                                                                                                June 30,
                                                                                                       2002                  2001
                                                                                                       ----                  ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                                 <C>                   <C>
   Net Income ..........................................................................            $   2,091             $   1,424
   Adjustments to reconcile net income to net cash provided
     by (used in) operating activities
   Provision for loan losses ...........................................................                  511                   252
   Depreciation and amortization .......................................................                  296                   274
   Amortization and accretion (net) of premiums and
     discounts on securities ...........................................................                   46                   (48)
   Origination of mortgage loans held for sale .........................................             (159,071)             (179,229)
   Sale of mortgage loans held for sale ................................................              186,896               174,843
   (Increase) decrease in accrued interest receivable ..................................                 (105)                  266
   Increase in other assets ............................................................                 (415)                 (782)
   Increase (decrease) in accrued interest payable .....................................                  (27)                   37
   Increase in other liabilities .......................................................                  356                    89
                                                                                                    ---------             ---------
     Net cash provided by (used in) by operating activities ............................               30,578                (2,874)
                                                                                                    ---------             ---------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of securities available for sale ..........................................              (33,680)              (16,319)
   Proceeds from the maturity of securities available for sale .........................                2,975                 2,736
   Proceeds from the call of securities available for sale .............................                5,400                19,800
   Net increase in loans ...............................................................              (14,980)              (10,869)
   Purchase of premises and equipment ..................................................               (1,152)                 (145)
                                                                                                    ---------             ---------
     Net cash used in investing activities .............................................              (41,437)               (4,797)
                                                                                                    ---------             ---------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits ............................................................               67,920                32,153
   Net increase in securities sold under repurchase
     agreements ........................................................................                2,130                 4,253
    Net increase(decrease) in Federal funds purchased ..................................                    0                (3,660)
   Net decrease in notes payable Federal Home Loan Bank ................................              (18,985)               (3,000)
   Proceeds from stock options exercised ...............................................                   90                     0
   Cash dividend .......................................................................                 (367)                 (254)
                                                                                                    ---------             ---------
     Net cash provided by financing activities .........................................               50,788                29,492
                                                                                                    ---------             ---------
     Net increase in cash and cash equivalents .........................................               39,929                21,821
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ...........................................               12,426                10,685
                                                                                                    ---------             ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD ...............................................            $  52,355             $  32,506
                                                                                                    =========             =========

CASH PAID FOR
     Interest ..........................................................................            $   3,809             $   5,598
                                                                                                    =========             =========
     Income Taxes ......................................................................            $     776             $     726
                                                                                                    =========             =========
</Table>






                                       4
<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 2001 Annual Report on Form
10-K 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.  All have  maturities  of three
months or less.

COMMON STOCK

     The Board of Directors declared cash dividends of $0.05 per common share to
shareholders  of record March 22,  2002,  payable  April 5, 2002,  and $0.06 per
common share to shareholders of record June 21, 2002, payable July 5, 2002.

     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 for the six
months ended June 30, 2002 and 2001 was 3,332,863 and  3,326,448,  respectively.
The weighted average number of common shares  outstanding for diluted net income
per common share was  3,434,066  and 3,414,225 for the six months ended June 30,
2002 and 2001.

      The Company issued a  five-percent  common stock dividend in January 2002.
Per share data in 2001 has been restated to reflect this transaction.








                                       5
<Page>


MANAGEMENT'S OPINION

     The accompanying unaudited financial statements of Peoples  Bancorporation,
Inc.  have been  prepared  in  accordance  with  generally  accepted  accounting
principles for interim  financial  information and with the instructions to Form
10-Q   according  to  guidelines  set  forth  by  the  Securities  and  Exchange
Commission.  Accordingly,  they do not include  all  information  and  footnotes
required by generally  accepted  accounting  principles  for complete  financial
statements.  However, in the opinion of management,  all adjustments (consisting
of normal recurring adjustments)  considered necessary for the fair presentation
have been  included.  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 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 2001
Annual  Report  of  Peoples  Bancorporation,  Inc.  on  Form  10-K.  Results  of
operations  for the six-month  period  ending June 30, 2002 are not  necessarily
indicative of the results to be attained for any other period.

Estimates

     The  preparation  of financial  statements  in conformity  with  accounting
principles   generally  accepted  in  the  United  States  of  America  requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities as of
the dates of the consolidated balance sheets and the consolidated  statements of
income  for  the  periods  covered.  Actual  results  could  differ  from  those
estimates.

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.  All statements that are not historical facts are
"forward-looking  statements."  Words such as "estimate,"  "project,"  "intend,"
"expect,"  "believe,"  "anticipate,"  "plan," and similar  expressions  identify
forward-looking statements. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking  statements.  In order to comply with
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 Peoples  Bancorporation'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.




                                       7
<Page>
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.


                                       8
<Page>

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EARNINGS PERFORMANCE

Overview

     The  consolidated  Company's net income for the second  quarter of 2002 was
$941,000  or $0.27 per diluted  share  compared to $712,000 or $0.21 per diluted
share for the second  quarter of 2001, an increase of 32.2%.  Net income for the
six months  ended  June 30,  2002 was  $2,091,000,  or $0.61 per  diluted  share
compared to $1,424,000, or $0.42 per diluted share for the six months ended June
30, 2001, an increase of 46.8%.  Return on average equity for the six months and
three  months  ended June 30, 2002 was 14.36% and 12.65%  compared to 10.84% and
10.67% for the six  months  and three  months  ended  June 30,  2001.  Return on
average assets for the six months and three months ended June 30, 2002 was 1.27%
and 1.08%  compared to 1.04% and 1.00% for the six months and three months ended
June 30, 2001.  The increases in the  Company's  net income,  earnings per fully
diluted share,  return on average  equity,  and return on average assets in 2002
are attributable to increased earnings at the Company's bank  subsidiaries.  The
Peoples  National Bank  recorded net earnings of  $1,595,000  for the six months
ended June 30, 2002  compared to net earnings of  $1,261,000  for the six months
ended June 30, 2001, an increase of 26.5%. Bank of Anderson,  N. A. recorded net
earnings of  $354,000  for the six months  ended June 30,  2002  compared to net
earnings  of $157,000  for the six months  ended June 30,  2001,  an increase of
125.5%.  Seneca  National  Bank  recorded  net  earnings of $149,000 for the six
months  ended June 30,  2002  compared  to net  earnings  of $22,000 for the six
months ended June 30, 2001, an increase of 577.3%.

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  increased  $637,000 or 27.3% to  $2,969,000  in the
quarter ended June 30, 2002 compared to $2,332,000 in the quarter ended June 30,
2001.  For the six  months  ended  June 30,  2002  net  interest  income  before
provision for loan losses increased  $1,582,000 or 34.4% to $6,183,000  compared
to $4,601,000 for the six months ended June 30, 2001. The Company's net interest
margin  for the six months and three  months  ended June 30,  2002 was 3.99% and
3.65%,  respectively,  compared  to 3.60% and 3.49%,  respectively,  for the six
months and three months ended June 30, 2001.  The  increases in the net interest
income and in the net interest margin resulted primarily from decreases in rates
paid on  interest-bearing  liabilities at the Banks.  This resulted from steeply
falling market interest rates beginning in January 2001. The increase in average
balances among earning assets also contributed to the Company's  increase in the
dollar amount of net interest income.



                                       9
<Page>

     The  Company's  total  interest  income for the second  quarter of 2002 was
$5,026,000  compared to $5,181,000 for the second quarter of 2001, a decrease of
$155,000 or 3.0%.  Total interest  income for the six months ended June 30, 2002
was $9,965,000 compared to $10,236,000 for the six months ended June 30, 2001, a
decrease of $271,000 or 2.6%.  Interest and fees on loans, the largest component
of total interest  income,  decreased  $284,000 in the second quarter of 2002 to
$4,228,000  compared to $4,512,000 for the second quarter of 2001, a decrease of
6.3%.  Interest  and fees on loans  decreased  $323,000 for the six months ended
June 30, 2002 to $8,607,000 compared to $8,930,000 for the six months ended June
30,  2001, a decrease of 3.6%.  The  decrease in interest and fees on loans,  as
well as the decrease in total interest income, resulted primarily from the lower
market interest rates that were  experienced at the Company's bank  subsidiaries
during the first half of 2002 when  compared to the first half of 2001,  and was
partially  offset by the higher average balances in the various types of earning
assets.

     The Company's  total  interest  expense for the second  quarter of 2002 was
$2,057,000  compared to $2,849,000 for the second quarter of 2001, a decrease of
$792,000,  or 27.8%.  Total  interest  expense for the six months ended June 30,
2002 was  $3,782,000  compared to  $5,635,000  for the six months ended June 30,
2001, a decrease of  $1,853,000,  or 32.9%.  Interest  expense on deposits,  the
largest  component of total interest expense,  decreased  $736,000 in the second
quarter of 2002 to $1,875,000  compared to $2,611,000  for the second quarter of
2001, a decrease of 28.2%. Interest expense on deposits decreased $1,651,000 for
the six months ended June 30, 2002 to $3,405,000  compared to $5,056,000 for the
six months ended June 30, 2001, a decrease of 32.6%.  Interest on federal  funds
purchased and securities sold under  repurchase  agreements,  the second largest
component of total interest  expense,  decreased $50,000 or 29.4% to $120,000 in
the second  quarter of 2002 compared to $170,000 for the second quarter of 2001.
Interest  on federal  funds  purchased  and  securities  sold  under  repurchase
agreements  decreased  $105,000  or 30.1% to  $244,000 in the first half of 2002
compared to $349,000  for the first half of 2001.  Interest on notes  payable to
the  Federal  Home Loan Bank,  the third  largest  component  of total  interest
expense,  decreased  $6,000 or 8.8% to  $62,000  in the  second  quarter of 2002
compared to $68,000 for the second quarter of 2001. Interest on notes payable to
the Federal Home Loan Bank  decreased  $97,000 or 42.2% to $133,000 in the first
half of 2002  compared to $230,000 for the first half of 2001.  The  significant
decrease in interest  expense among each of deposits,  federal funds  purchased,
securities sold under  repurchase  agreements,  and notes payable to the Federal
Home  Loan  Bank  is  largely   attributable  to  lower  market  interest  rates
experienced  at the Company's  bank  subsidiaries  during the first half of 2002
when compared to the first half of 2001, and was partially  offset by the higher
average balances in some of the accounts.

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.



                                       10
<Page>

     The provision for loan losses charged to operations during the three months
and six months  ended June 30, 2002 was  $198,000  and  $511,000,  respectively,
compared to $119,000 and  $252,000,  respectively,  for the three months and six
months ended June 30, 2001.  The increase in the  Company's  provision  for loan
losses for the second quarter and first half of 2002 is largely  attributable to
an increase in the volume of outstanding loans during 2002 when compared to 2001
and to management's view of current and future economic conditions.

     Subsequent  to June 30, 2002,  one of the  Company's  subsidiary  banks was
informed  of a  potential  problem  with  one  of its  credits.  At  this  time,
management feels it is difficult to determine the exact amount of probable loss,
but feels that the  allowance  for loan losses is adequate to absorb the maximum
loss of $250,000, should it occur.

Non-interest Income

     Non-interest  income increased $94,000 or 7.3% to $1,386,000 for the second
quarter  of  2002  compared  to  $1,292,000  for the  second  quarter  of  2001.
Non-interest income increased $282,000 or 11.3% to $2,788,000 for the first half
of 2002  compared  to  $2,506,000  for the first half of 2001.  The  increase in
non-interest  income for the two comparative  periods  resulted  largely from an
increase in fees associated with a relatively new overdraft  privilege  product,
which was implemented  during the third quarter of 2000 at Peoples National Bank
and during the first  quarter of 2001 at Bank of Anderson,  N. A., and at Seneca
National Bank. No gain or loss was realized on the sale of securities during the
first six months of either 2002 or 2001.

Non-interest Expense

     Total  non-interest  expense increased  $294,000 or 12.3% to $2,690,000 for
the second quarter of 2002 from $2,396,000 for the second quarter of 2001. Total
non-interest  expense  increased  $563,000 or 12.1% to $5,198,000  for the first
half of 2002 from $4,635,000 for the first half of 2001.  Salaries and benefits,
the largest component of non-interest  expense,  increased $122,000, or 8.7%, to
$1,517,000 for the second quarter of 2002 from $1,395,000 for the second quarter
of 2001. Salaries and benefits increased  $332,000,  or 12.4%, to $3,001,000 for
the first half of 2002 from  $2,669,000 for the first half of 2001. The increase
in salaries  and  benefits is  primarily  attributable  to  additional  staffing
associated  with the  Company's  continued  growth and normal  salary  increases
throughout the Company.


BALANCE SHEET REVIEW

Loans

     Outstanding  loans (which excludes  mortgage loans held for sale) represent
the largest  component of earning assets at 66.6% of total earning assets. As of
June 30, 2002, the Company held total gross loans  outstanding of  $228,013,000.
Gross  loans  increased  $15,477,000  or 7.3% from  $212,536,000  in total gross


                                       11
<Page>

outstanding  loans at December 31, 2001 and increased  $32,062,000 or 16.4% from
$195,951,000  in total gross loans  outstanding  at June 30, 2001.  The increase
resulted from new loans generated by the company's three banking subsidiaries.

     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 six months and three months ended June 30,
2002  was  7.20%  and  7.07%,   respectively,   compared  to  8.92%  and  8.20%,
respectively,  for  the six  months  and  three  months  ended  June  30,  2001.
Approximately 41.7% 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 other
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 employ  mortgage  loan  personnel who originate and package loans
that are pre-sold at origination to third parties and are classified as mortgage
loans held for sale for  reporting  purposes.  At June 30, 2002 the Company held
$13,100,000  of mortgage loans held for sale compared to $40,925,000 at December
31, 2001 and $21,378,000 at June 30, 2001. The  substantial  swings in the level
of mortgage loans held for sale are due to wide  fluctuations  in the demand for
residential  mortgages from time to time. During the three months ended June 30,
2002, the Company  originated  $73,837,000  and sold  $82,668,000 in residential
mortgages.  During the six months  ended June 30, 2002,  the Company  originated
$159,071,000 and sold $186,896,000 in residential mortgages.

     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 and 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  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
June  30,  2002  approximately  $9,508,000  or 5.7%  of  commercial  loans  were
unsecured.



                                       12
<Page>

     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 June 30, 2002 was  $2,785,000 or 1.22% of
loans  outstanding  (which  excludes  mortgage  loans held for sale) compared to
$2,288,000 or 1.08% of loans  outstanding at December 31, 2001 and to $2,176,000
or 1.11% of loans outstanding at June 30, 2001. 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 June 30,  2002 the  Company  had  $691,000  in  non-accruing  loans,  no
restructured  loans,  $20,000 in loans more than  ninety days past due and still
accruing  interest,  and $723,000 in Other Real Estate  Owned.  This compares to
$993,000 in non-accruing loans, $8,000 in restructured loans, no loans more than
ninety days past due on which interest was still being accrued,  and $950,000 in
other real estate owned at December 31, 2001. At June 30, 2001,  the Company had
$1,003,000 in  non-accruing  loans,  no  restructured  loans, no loans more than
ninety days past due and still  accruing  interest,  and  $941,000 in Other Real
Estate  Owned.  Non-performing  loans at June 30, 2002  consisted  of $54,000 in
commercial  loans,  $631,000 in mortgage  loans,  and $6,000 in consumer  loans.
Non-performing  assets as a percentage  of loans and other real estate owned was
0.59%,  0.77%, and 0.89% at June 30, 2002, December 31, 2001, and June 30, 2001,
respectively.

     Net charge-offs  during the first six months of 2002 were $14,000  compared
to net  charge-offs  of  $98,000  for the  first  six  months  of  2001  and net
charge-offs  of $627,000 for the year ended December 31, 2001. The allowance for
loan losses as a percentage of non-performing  loans was 392%, 228%, and 217% as
of June 30, 2002, December 31, 2001, and June 30, 2001, respectively.

         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 then applied to principal. At each of June 30, 2002, June 30, 2001,
and December 31, 2001 the Company had no impaired loans.


                                       13
<Page>


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 June 30, 2002 securities totaled $61,362,000,  which represents 18.1%
of  total  earning  assets.  Securities  increased  $25,869,000  or  72.9%  from
$35,493,000  invested as of December  31,  2001 and  $30,756,000  or 100.5% from
$30,606,000  invested  as of June  30,  2001.  The  increase  in  securities  is
primarily  attributable to the investment of excess liquidity  resulting from an
increase in deposits at the Company's bank subsidiaries.

         At  June  30,  2002  the  Company's  total  investments  classified  as
available for sale had an amortized  cost of  $55,615,000  and a market value of
$56,419,000  for an unrealized  gain of $804,000.  This compares to an amortized
cost of $25,282,000  and a market value of $25,448,000 for an unrealized gain of
$166,000 on the Company's  investments  classified as available for sale at June
30, 2001. At December 31, 2001 the  Company's  total  investments  classified as
available for sale had an amortized  cost of  $30,076,000  and a market value of
$30,339,000 for an unrealized gain of $263,000.

Cash and Cash Equivalents

         The Company's cash and cash equivalents increased $39,929,000 or 321.3%
to  $52,355,000  at June 30,  2002 from  $12,426,000  at  December  31, 2001 and
$19,849,000  or 61.1% from  $32,506,000  at June 30, 2001.  This increase is the
result of increased  deposits  coupled  with  slightly  lower loan  demand.  The
Company's  intent  is to  employ  these  funds  in  higher  yielding  assets  as
opportunities arise.

Deposits

         The Bank's  primary  source of funds for loans and  investments  is its
deposits.  Total deposits grew  $67,920,000 or 28.7% to $304,722,000 at June 30,
2002 from  $236,802,000  at  December  31,  2001 and  $66,935,000  or 28.2% from
$237,787,000 at June 30, 2001. 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 six months of 2002, interest-bearing deposits averaged
$233,008,000  compared to  $192,544,000  for the first six months of 2001.  From
time to time Peoples National Bank solicits certificates of deposit from various
sources  through  brokers and through a program  designed to gather deposits via
the Internet.  This is done to reduce the need for funding from other short-term


                                       14
<Page>

sources such as federal  funds  purchased  and  short-term  borrowings  from the
Federal Home Loan Bank of Atlanta. These non-traditional  deposits are primarily
being  used  to  fund  Peoples  National  Bank's  short-term   mortgage  lending
activities.  On June 30, 2002 the outstanding  certificates garnered through the
Internet  totaled  $4,450,000,  and brokered  deposits  totaled  $1,900,000.  At
December 31, 2001  Internet  certificates  of deposits  totaled  $7,681,000  and
brokered deposits totaled $5,100,000. At June 30, 2001 Peoples National Bank had
$10,809,000 in Internet certificates of deposits and no brokered deposits

         The average interest rate paid on  interest-bearing  deposits was 2.90%
for the first six months of 2002  compared  to 5.25% for the first six months of
2001.  In pricing  deposits,  the Company  considers its  liquidity  needs,  the
direction and levels of interest rates, and local market conditions. At June 30,
2002  interest-bearing  deposits  comprised 87.1% of total deposits  compared to
85.6% at June 30, 2001.

         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,  these core  deposits  continue to
provide the Company with a large source of funds.  Core deposits as a percentage
of total  deposits  averaged  approximately  76.8% and 72.6% for the six  months
ended  June 30,  2002  and June 30,  2001,  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 June 30, 2002 short-term
borrowings  totaled  $22,776,000 and were comprised  entirely of securities sold
under repurchase agreements.  At December 31, 2001 short-term borrowings totaled
$39,631,000   and  were  comprised  of  $20,646,000  in  securities  sold  under
repurchase  agreements and  $18,985,000 in short-term  advances from the Federal
Home  Loan Bank of  Atlanta.  At June 30,  2001  short-term  borrowings  totaled
$18,409,000  and were  comprised  entirely of securities  sold under  repurchase
agreements.  Short-term  borrowings  are used  primarily for the immediate  cash
needs of the Company.  During 2002 the Company repaid short-term borrowings from
the  Federal  Home Loan Bank of Atlanta  from funds  generated  from the sale of
mortgage loans held for sale and from an increase in core deposits.  The Company
also had  $5,000,000  of long-term  advances  from the Federal Home Loan Bank of
Atlanta at each of June 30, 2002, December 31, 2001, and June 30, 2001.

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


                                       15
<Page>

include cash and due from banks,  federal funds sold, and  securities  available
for sale. In addition, the Company (through the Banks) has the ability to borrow
funds on a  short-term  basis 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 June 30, 2002 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  $42,656,000.
The unused portion of this line of credit was  $37,656,000 at June 30, 2002. 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
$10,260,000 and $4,727,000  respectively,  all of which was unused.  At June 30,
2002 the Banks had unused  federal  funds lines of credit  totaling  $12,750,000
with various 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  six  months  of  2002,   the  Company  had  capital
expenditures  of  approximately  $927,000  associated with the purchase of a new
core data processing  system.  During the remainder of 2002, the Company expects
to spend approximately  $180,000 more on the purchase of this system. In July of
2002 Bank of Anderson  acquired a lot in Anderson to be used for a future branch
office at a cost of  $444,000.  The Company is also  considering  other  capital
expenditures  that may be made,  in whole or in part,  during the  remainder  of
2002.  These include the possible  construction of a branch banking facility for
Bank of Anderson for  approximately  $800,000 and the  possible  renovation  and
expansion of the main office of Bank of Anderson for approximately $800,000. The
Company may  additionally  make other lesser  capital  expenditures  through the
normal course of business.

         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.

OFF-BALANCE SHEET RISK

         The Company,  through the  operations of the Banks,  makes  contractual
commitments to extend credit in the ordinary course of its business  activities.
These  commitments are legally binding  agreements to lend money to customers of
the Banks at  predetermined  interest  rates for a specified  period of time. At
June 30, 2002, the Banks had issued  commitments to extend credit and letters of
credit of $59,805,000  through  various types of  arrangements.  The commitments
generally  expire  in one year.  Past  experience  indicates  that many of these
commitments to extend credit will expire not fully used.  However,  as described
under Liquidity,  the Company believes that it has adequate sources of liquidity
to fund commitments that are drawn upon by the borrowers.

         In  addition  to  commitments  to extend  credit,  the Banks also issue
standby letters of credit,  which are assurances to a third party that they will
not  suffer  a loss  if the  Banks'  customer  fails  to  meet  its  contractual


                                       16
<Page>

obligation to the third party.  Standby letters of credit totaled  $5,482,000 at
June 30, 2002. Past  experience  indicates that many of these standby letters of
credit will expire unused.  However,  through its various  sources of liquidity,
the Company  believes  that it will have the  necessary  resources to meet these
obligations  should the need arise.  Most of the  standby  letters of credit are
secured by various types of  collateral.  The Company  believes that the risk of
loss associated with standby letters of credit is comparable to the risk of loss
associated with its loan portfolio

         Neither  the  Company  nor  the  subsidiaries  are  involved  in  other
off-balance sheet contractual relationships or transactions that could result in
liquidity needs or other commitments or significantly impact earnings.

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 June 30, 2002:

                                 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 ...............         $32,976           13.08%      $25,211           10.00%      $20,169           8.00%
Tier 1 Risk-based Capital ..............          30,191           11.98        15,121            6.00        10,080           4.00
Leverage Ratio .........................          30,191            8.65        17,451            5.00        13,961           4.00

Peoples National Bank:
Total Risk-based Capital ...............         $19,100           12.09%      $15,798           10.00%      $12,639           8.00%
Tier 1 Risk-based Capital ..............          17,377           11.00         9,478            6.00         6,319           4.00
Leverage Ratio .........................          17,377            8.22        10,570            5.00         8,456           4.00

Bank of Anderson, N. A:
Total Risk-based Capital ...............         $ 6,762           11.31%      $ 5,979           10.00%      $ 4,783           8.00%
Tier 1 Risk-based Capital ..............           6,060           10.13         3,589            6.00         2,393           4.00
Leverage Ratio .........................           6,060            6.72         4,509            5.00         3,607           4.00

Seneca National Bank:
Total Risk-based Capital ...............         $ 3,888           12.24%      $ 3,176           10.00%      $ 2,541           8.00%
Tier 1 Risk-based Capital ..............           3,528           11.10         1,907            6.00         1,271           4.00
Leverage Ratio .........................           3,528            8.30         2,125            5.00         1,700           4.00
</Table>


                                       17
<Page>

IMPACT of NEW ACCOUNTING PRONOUNCEMENTS

In July 2001, the SEC issued Staff Accounting  Bulletin (SAB) No. 102 - Selected
Loan Loss Allowance  Methodology  Issues. This staff accounting bulletin clearly
defines the required development, documentation, and application of a systematic
methodology for  determining  allowances for loan and lease losses in accordance
with generally accepted accounting  principles.  The Company believes that it is
in compliance with SAB 102.

Additional  accounting  standards  that have been issued or proposed by the FASB
that do not  require  adoption  until a future  date are not  expected to have a
material impact on the consolidated financial statements upon adoption.


                                       18
<Page>



Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Market risk is the risk of loss from adverse  changes in market  prices and
interest 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 certain 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 and 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
interest-bearing  liabilities. The relationship of rate-sensitive earning assets
to  rate-sensitive  interest-bearing  liabilities  is the  principal  factor  in
projecting  the effect that  fluctuating  interest rates will have on future net
interest  income.  Rate-sensitive  assets and  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 June 30, 2002,  on a cumulative  basis through 12
months,   rate-sensitive   liabilities   exceeded   rate-sensitive   assets   by
$75,363,000.  This  liability-sensitive  position is largely attributable to the
Company's  short-term  Certificates  of Deposit,  Money Market  accounts and NOW
accounts, which totaled $119,159,000, $73,582,000 and $33,058,000, respectively,
at June 30, 2002, and may reprice or mature within one year.





                                       19
<Page>



PART II.  OTHER INFORMATION

Item 2.  Changes in Securities and Use of Proceeds

During the period  ended June 30, 2002 the  Registrant  issued  shares of common
stock to the  following  classes of persons upon the exercise of options  issued
pursuant to the Registrant's 1997 Non-Employee  Directors Stock Option Plan. The
securities were issued pursuant to the exemption from the 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
              -----------        ----------          ------             -----
               05/07/02           Director           12,761            $90,000


Item 4.  Submission to a Vote of Security Holders

On May 21, 2002, the Company held its Annual Meeting of Shareholders. The result
of the 2002 Annual Meeting of Shareholders is as follows:

The following persons were elected as Directors to serve for the terms set forth
below  with  2,285,623  shares  voted,  representing  68.7% of the total  voting
shares:

                               For         Withheld     Against    Term (years)
                               ---         --------     -------    ------------
    F. Davis Arnette, Jr.     2,267,489     18,137          0            3
    Garnet A. Barnes          2,278,914      6,709          0            3
    Charles E. Dalton         2,281,466      4,157          0            3
    Robert E. Dye, Sr.        2,267,873     17,750          0            3
    Larry D. Reeves           2,281,708      3,915          0            3
    R. Riggie Ridgeway        2,267,873     17,750          0            3

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 June 30,
2002.



                                       20
<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:  August 6, 2002                By:    /s/ Robert E. Dye, Sr.
                                           ------------------------
                                             Robert E. Dye, Sr.
                                             President and Chairman of the Board


Dated:  August 6, 2002                By:   /s/ William B. West
                                          ---------------------
                                             William B. West
                                             Sr. Vice President & CFO
                                             (principal financial officer)





                                       21