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, 2000                                            000-20616

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


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


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

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


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

     Yes [x] No [ ]

     The number of  outstanding  shares of the  issuer's  $1.67 par value common
stock as of June 30, 2000 was 3,011,060.




<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,              June 30,         December 31,
                                                                                  2000                   1999                1999
                                                                                Unaudited             Unaudited             Audited
                                                                                ---------             ---------             -------
ASSETS
<S>                                                                             <C>                  <C>                  <C>
CASH AND DUE FROM BANKS .............................................           $   8,456            $   7,128            $   6,507
INTEREST-BEARING DEPOSITS IN OTHER BANKS ............................                   0                    0                5,047
FEDERAL FUNDS SOLD ..................................................               4,850               20,290                9,200
SECURITIES
     Available for sale .............................................              33,887               31,972               31,209
     Held for investment (market value of $3,738,
         $4,348 and $4,438) .........................................               3,747                4,224                4,445
LOANS-less allowance for loan losses of $1,812,
     $1,361 and $1,581 ..............................................             168,238              111,755              140,336
LOANS HELD FOR SALE .................................................              17,949                5,660                6,662
PREMISES AND EQUIPMENT, net of accumulated
     Depreciation and amortization ..................................               7,164                6,389                6,969
ACCRUED INTEREST RECEIVABLE .........................................               1,644                1,137                1,544
OTHER ASSETS ........................................................               2,296                2,033                1,994
                                                                                ---------            ---------            ---------
         TOTAL ASSETS ...............................................           $ 248,231            $ 190,588            $ 213,913
                                                                                =========            =========            =========

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
     Noninterest-bearing ............................................           $  30,148            $  23,664            $  19,953
     Interest-bearing ...............................................             167,869              124,214              148,823
                                                                                ---------            ---------            ---------
         Total deposits .............................................             198,017              147,878              168,776
SECURITIES SOLD UNDER REPURCHASE
     AGREEMENTS .....................................................              16,461               15,847               15,434
NOTES PAYABLE TO FEDERAL HOME LOAN BANK .............................               8,000                3,000                5,000
ACCRUED INTEREST PAYABLE ............................................               1,339                  896                1,154
OTHER LIABILITIES ...................................................                 245                  136                  203
                                                                                ---------            ---------            ---------
         Total Liabilities ..........................................             224,062              167,757              190,567
                                                                                ---------            ---------            ---------
SHAREHOLDERS' EQUITY
Common  Stock -  10,000,000 shares authorized,
     $1.67 Par value per share,
     3,011,060 shares, 2,841,901 shares
     and 2,987,627 shares outstanding ...............................               5,028                4,746                4,989
Additional paid-in capital ..........................................              18,832               17,312               18,867
Retained Earnings ...................................................                 898                1,144                    0
Accumulated other comprehensive income ..............................                (589)                (371)                (510)
                                                                                ---------            ---------            ---------
         Total Shareholder's Equity .................................              24,169               22,831               23,346
                                                                                ---------            ---------            ---------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY ...........................           $ 248,231            $ 190,588            $ 213,913
                                                                                =========            =========            =========
</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,
                                                                          2000             1999              2000           1999
                                                                          ----             ----              ----           ----
INTEREST INCOME
<S>                                                                    <C>              <C>              <C>              <C>
Interest and fees on loans .....................................       $    3,983       $    2,406       $    7,505       $    4,587
Interest on securities
     Taxable ...................................................              527              460            1,050              926
     Tax-exempt ................................................               49               53              103              107
Interest on federal funds ......................................               87              211              239              400
                                                                       ----------       ----------       ----------       ----------
Total interest income ..........................................            4,646            3,130            8,897            6,020

INTEREST EXPENSE
Interest on deposits ...........................................            2,015            1,254            3,774            2,380
Interest on federal funds purchased and securities
     sold under repurchase agreements ..........................              166               85              358              153
Interest on notes payable Federal Home
     Loan Bank .................................................               92               36              118               62
                                                                       ----------       ----------       ----------       ----------
Total interest expense .........................................            2,273            1,375            4,250            2,595

Net interest income ............................................            2,373            1,755            4,647            3,425
PROVISION FOR LOAN LOSSES ......................................              155              172              318              291
                                                                       ----------       ----------       ----------       ----------
Net interest income after provision for
     loan losses ...............................................            2,218            1,583            4,329            3,134

NON-INTEREST INCOME
Service fees and other income ..................................              628              383            1,093              751
Gain on sales of securities available for sale .................                0                0                0                0
                                                                       ----------       ----------       ----------       ----------
                                                                              628              383            1,093              751
NON-INTEREST EXPENSE
Salaries and benefits ..........................................            1,110              886            2,158            1,727
Occupancy ......................................................               87               78              173              140
Equipment ......................................................              156              141              292              247
Other operating expenses .......................................              599              487            1,116              965
                                                                       ----------       ----------       ----------       ----------
                                                                            1,952            1,592            3,739            3,079

Income before income taxes .....................................              894              374            1,683              806

PROVISION FOR INCOME TAXES .....................................              312              127              575              274
                                                                       ----------       ----------       ----------       ----------

Net income .....................................................       $      582       $      247       $    1,108       $      532
                                                                       ==========       ==========       ==========       ==========

INCOME PER COMMON SHARE:
     BASIC .....................................................       $     0.19       $     0.08       $     0.37       $     0.18
                                                                       ==========       ==========       ==========       ==========
     DILUTED ...................................................       $     0.18       $     0.08       $     0.35       $     0.17
                                                                       ==========       ==========       ==========       ==========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
    BASIC ......................................................        2,995,955        2,983,996        2,992,178        2,983,243
                                                                        =========        =========        =========        =========
    DILUTED ....................................................        3,220,734        3,202,414        3,104,568        3,088,486
                                                                       ==========       ==========       ==========       ==========

DIVIDENDS PAID PER COMMON
     SHARE .....................................................       $    0.035       $    0.035       $     0.07       $     0.07
                                                                       ==========       ==========       ==========       ==========
</TABLE>


                                       2
<PAGE>

                 Peoples Bancorporation, Inc. and Subsidiaries
           Consolidated Statements of Changes in Shareholders' Equity
                for the six months ended June 30, 2000 and 1999
                    (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, 1998 .....................     2,764,016     $     4,616   $    17,092    $   811      $ (48)     $ 22,471
Net Income .....................................                                                    532                      532
Other comprehensive income, net of
tax:
   Unrealized holding gains on
   securities available for sale ...............                                                              (323)         (323)
   Less reclassification
   adjustments for gains
   included in net income ......................                                                                 0             0
                                                                                                                        --------
Comprehensive income ...........................                                                                             209
Cash Dividends .................................                                                   (199)                    (199)
Proceeds from stock options ....................        77,885             130        220                                    350
                                                     ---------     -----------   -----------    -------      -----      --------
Balance, June 30, 1999 .........................     2,841,901     $     4,746   $    17,312    $ 1,144      $(371)     $ 22,831
                                                     =========     ===========   ===========    =======      =====      ========

Balance, December 31, 1999 * ...................     2,987,627     $     4,989   $    18,867    $     0      $(510)     $ 23,346
Net Income .....................................                                                  1,108                    1,108
Other comprehensive income, net of
tax:
   Unrealized holding losses on
   securities available for sale ...............                                                               (79)          (79)
   Less reclassification
   adjustments for gains
   included in net income ......................                                                                 0             0
                                                                                                                        --------
Comprehensive income ...........................                                                                           1,029
Cash Dividends .................................                                                   (210)                    (210)
Proceeds from stock options ....................        23,433              39           (35)                                  4
                                                     ---------     -----------   -----------    -------      -----      --------
Balance, June 30, 2000 year ....................     3,011,060     $     5,028   $    18,832    $   898      $(589)     $ 24,169
                                                     =========     ===========   ===========    =======      =====      ========
</TABLE>


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





                                       3
<PAGE>



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

<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                              Six Months Ended
                                                                                                                  June 30,
                                                                                                         2000                 1999
                                                                                                         ----                 ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                                  <C>                   <C>
   Net Income ..........................................................................             $  1,108              $    532
   Adjustments to reconcile net income to net cash provided
     by (used in) operating activities
   Provision for loan losses ...........................................................                  318                   291
   Depreciation and amortization .......................................................                  259                   183
   Amortization and accretion (net) of premiums and
     discounts on securities ...........................................................                   18                    59
   Increase in accrued interest receivable .............................................                 (100)                 (214)
   Increase in other assets ............................................................                 (252)                 (436)
   Increase in accrued interest payable ................................................                  185                    28
   Increase (decrease) in other liabilities ............................................                   34                  (141)
                                                                                                     --------              --------
     Net cash provided by (used in) operating activities ...............................                1,570                  (302)
                                                                                                     --------              --------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of securities held for investment .........................................                    0                  (100)
   Purchases of securities available for sale ..........................................               (4,330)               (7,776)
   Proceeds from the maturity of securities available for sale .........................                2,078                 4,171
   Proceeds from the call of securities available for sale .............................                  133                 3,060
   Net increase in loans ...............................................................              (39,508)              (30,782)
   Purchase of premises and equipment ..................................................                 (453)               (1,646)
                                                                                                     --------              --------
     Net cash used in investing activities .............................................              (42,080)              (33,073)
                                                                                                     --------              --------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits ............................................................               29,241                27,778
   Net increase in securities sold under repurchase
     agreements ........................................................................                1,027                 9,867
   Net increase in Federal funds purchased .............................................                    0                     0
   Net decrease in notes payable Federal Home Loan Bank ................................                3,000                 1,000
   Proceeds from stock options exercised ...............................................                    4                   350
   Cash dividend .......................................................................                 (210)                 (199)
                                                                                                     --------              --------
     Net cash provided by financing activities .........................................               33,062                38,796
                                                                                                     --------              --------
     Net increase (decrease) in cash and cash equivalents ..............................               (7,448)                6,025
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ...........................................               20,754                21,393
                                                                                                     --------              --------
CASH AND CASH EQUIVALENTS, END OF PERIOD ...............................................             $ 13,306              $ 27,418
                                                                                                     ========              ========

CASH PAID FOR
     Interest ..........................................................................             $  4,065              $  2,567
                                                                                                     ========              ========
     Income Taxes ......................................................................             $    391              $    520
                                                                                                     ========              ========
</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 1999  Annual  Report to
shareholders and incorporated herein by reference.

STATEMENT OF CASH FLOWS

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

COMMON STOCK

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

     SFAS No. 128,  "Earnings per Share" requires that the Company present basic
and diluted net income per common share. The assumed conversion of stock options
creates the  difference  between basic and diluted net income per share.  Income
per share is calculated by dividing net income by the weighted average number of
common shares outstanding for each period presented. The weighted average number
of common shares outstanding for basic net income per common share was 2,992,178
at June 30, 2000 and 2,983,243 at June 30 1999.  The weighted  average number of
common shares  outstanding for diluted net income per common share was 3,104,568
at June 30, 2000 and 3,088,486 at June 30, 1999.

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


MANAGEMENT'S OPINION

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





                                        5
<PAGE>


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

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

Forward-Looking Statements

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



                                       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. As a financial holding
company,  Peoples  Bancorporation,  Inc.  may  engage  in  activities  that  are
financial  in nature or  incidental  to a  financial  activity.  The  activities
permissible for a financial holding company and the applicable notice procedures
are contained in sections  225-85 through 225.89 of the Federal  Reserve Board's
Regulation Y (12 C.F.R.  225.85-89).  The election to become a financial holding
company became effective June 23, 2000.

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

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

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EARNINGS PERFORMANCE

Overview

     The  consolidated  Company's net income for the second  quarter of 2000 was
$582,000,  or $0.18 per diluted share compared to $247,000, or $0.08 per diluted
share for the second  quarter of 1999.  Net income for the six months ended June
30, 2000 was $1,108,000,  or $0.35 per diluted share,  compared to $532,000,  or
$0.17 per  diluted  share for the six  months  ended  June 30,  1999.  Return on
average equity for the six months and three months ended June 30, 2000 was 9.15%
and 9.52%,  respectively,  compared to 4.66% and 4.27%, respectively for the six
months and three months ended June 30,  1999.  Return on average  assets for the
six  months  and  three  months  ended  June  30,  2000  was  0.96%  and  0.97%,
respectively,  compared to 0.63% and 0.56%, respectively, for the six months and
three months ended June 30, 1999.  The  increases in the  Company's  net income,
earnings  per fully  diluted  share,  return on  average  equity,  and return on
average assets in 2000 are attributable to the diminished early operating losses
associated  with Seneca National Bank,  which  commenced  operations in February
1999, the attainment of profitability  associated with Bank of Anderson,  N. A.,
which commenced business operations in September 1998, and increased earnings at
The Peoples National Bank resulting  largely from an increase in interest income
from a larger base of interest-earning assets. For the six months ended June 30,
2000,  Bank of Anderson,  N. A. recorded net earnings of $104,000  compared to a
net loss of $110,000  for the six months ended June 30,  1999.  Seneca  National
Bank  recorded  a net loss of $3,000  for the six  months  ended  June 30,  2000
compared to a net loss of $155,000 for the six months  ended June 30, 1999.  The
Peoples  National Bank  recorded net earnings of  $1,011,000  for the six months
ended June 30,  2000  compared to net  earnings  of $769,000  for the six months
ended June 30, 1999.

Net Interest Income

     The largest  component of the Company's net income is net interest  income.
Net interest  income,  which is the  difference  between the interest  earned on
interest-earning  assets and the interest paid on  interest-bearing  liabilities
used to fund those assets,  measures the gross profit from lending and investing
activities  and is  the  primary  contributor  to the  Company's  earnings.  Net
interest income before provision for loan losses increased  $618,000,  or 35.2%,
to $2,373,000 in the second quarter of 2000 compared to $1,755,000 in the second
quarter of 1999.  For the six months  ended June 30, 2000,  net interest  income


                                       7
<PAGE>

before provision for loan losses increased  $1,222,000,  or 35.7%, to $4,647,000
compared to $3,425,000 for the six months ended June 30, 1999. The Company's net
interest  margin  was 4.26% and 4.37%,  respectively,  for the  quarter  and six
months ended June 30, 2000, compared to 4.35% and 4.46%,  respectively,  for the
quarter and six months ended June 30, 1999. The increases in net interest income
for the quarter and year-to-date period in 2000 when compared to the quarter and
year-to-date period in 1999 resulted largely from an increase in earning assets,
primarily   loans,   attributable   to  all  three  of  the  Company's   banking
subsidiaries.  The decreases in the  Company's net interest  margin for the 2000
periods when compared to the 1999 periods is attributable to an overall increase
in the Company's cost of interest bearing liabilities in the 2000 periods.

Provision for Loan Losses

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

     The provision for loan losses charged to operations during the three months
ended June 30, 2000 was $155,000 compared to $172,000 for the three months ended
June 30, 1999, a decrease of $17,000 or 11.0%.  However,  the provision for loan
losses  during  the six months  ended June 30,  2000 was  $318,000  compared  to
$291,000 for the six months ended June 30, 1999, an increase of $27,000 or 9.3%.
The  variations in the provision for loan losses  reflect the growth in the loan
portfolio, the net amount of assets being charged off by the Company against the
allowance for loan losses, and possible changes in the levels of risk associated
with the various loans in the portfolio.

Non-interest Income

     Non-interest  income  increased  $245,000,  or 64.0%,  to $628,000  for the
second  quarter of 2000 compared to $383,000 for the second quarter of 1999. For
the six months ended June 30, 2000 non-interest  income increased  $342,000,  or
45.5%,  to  $1,093,000  compared to $751,000  for the six months  ended June 30,
1999.  The  increase  in  non-interest  income for the two  comparative  periods
resulted  largely  from an increase in fees on  mortgage  loans,  an increase in
service  charge income on deposit  accounts,  and an increase in income  derived
from the sale of alternative  investment products.  No gain or loss was realized
on the sale of available-for-sale securities during the comparative periods.

Non-interest Expense

     Total non-interest expense increased $360,000,  or 22.6%, to $1,952,000 for
the second  quarter of 2000  compared to  $1,592,000  for the second  quarter of
1999. For the first six months of 2000,  total  non-interest  expense  increased
$660,000,  or 21.4%,  to  $3,739,000  compared to  $3,079,000  for the first six
months of 1999.  Salaries and benefits,  the largest  component of  non-interest
expense, increased $224,000, or 25.3%, in the second quarter of 2000 compared to
the second quarter of 1999. For the six months ended June 30, 2000, salaries and
benefits increased $431,000,  or 25.0%, to $2,158,000 compared to $1,727,000 for
the six months  ended June 30,  1999.  The increase in salaries and benefits for
the  comparative  periods is primarily  attributable  to the addition of several
employees as well as normal  salary  increases  for the holding  company and the
three subsidiary  banks.  Occupancy  expense  increased $9,000, or 11.5%, in the
second quarter of 2000 compared to the second quarter of 1999. For the first six
months of 2000 occupancy expense totaled $173,000, a $33,000, or 23.6%, increase
over the  $140,000  recorded  for the first six months of 1999.  The increase in
occupancy expense for the two comparative periods is attributable to an increase
in  depreciation,  maintenance,  and  utilities  expenses  associated  with  the
construction  of a new branch  office for Peoples  National Bank in Easley which
opened during the fourth quarter of 1999 and the renovation and expansion of the
existing  branch  office of Peoples  National  Bank in  Powdersville,  which was
completed  during  the  second  quarter  of 2000.  Equipment  expense  increased
$15,000,  or 10.6%,  to $156,000 in the second  quarter of 2000 when compared to
the second quarter of 1999. For the first six months of 2000,  equipment expense
totaled  $292,000,  a $45,000,  or 18.2% increase over the $247,000 recorded for
the  first  six  months of 1999.  The  increase  is  primarily  attributable  to
additional  furniture and equipment  expense  associated  with Peoples  National
Bank's new office  construction and office  renovation  described  above.  Other
operating  expense  increased  $112,000,  or 23.0%,  to  $599,000  in the second


                                       8
<PAGE>

quarter of 2000 when compared to the second  quarter of 1999. For the six months
ended June 30, 2000, other operating expenses increased  $151,000,  or 15.6%, to
$1,116,000  compared to $965,000 in other operating expenses recorded during the
first six months of 1999. The increase in other operating  expenses is primarily
attributable to increases in various expense categories  resulting from a larger
base of deposits, loans, and assets.

BALANCE SHEET REVIEW

Loans

     Outstanding  loans  represent  the largest  component of earning  assets at
73.8% of total earning assets. As of June 30, 2000, the Company held total gross
loans  outstanding of  $170,050,000,  which excludes loans held for sale.  Gross
loans  increased  $28,133,000,   or  19.8%  from  $141,917,000  in  total  gross
outstanding loans at December 31, 1999 and increased $56,934,000, or 50.3%, from
$113,116,000  in total gross  outstanding  loans at June 30, 1999.  The increase
resulted from new loans generated by Bank of Anderson,  N.A. and Seneca National
Bank as well as internal loan growth  experienced by The Peoples  National Bank.
At June  30,  2000,  Bank of  Anderson,  N.A.  had  gross  outstanding  loans of
$35,789,000;  Seneca National Bank had gross  outstanding  loans of $16,923,000;
and The Peoples National Bank had outstanding gross loans of $117,338,000.

     The interest rates charged on loans vary with the degree of risk,  maturity
and amount of the loan. Competitive pressures,  money market rates, availability
of funds, and government  regulation also influence  interest rates. The average
yield on the company's  loans for the  six-month  period ended June 30, 2000 was
8.92% compared to 8.99%, for the first six months of 1999.  Approximately  33.2%
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.  Almost all of these loans are to
borrowers located in South Carolina,  and they are concentrated in the Company's
market areas.

     The Company's real estate loans are primarily  construction loans and loans
secured by real estate, 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 June 30, 2000 the Company held  $17,949,000  of mortgage  loans held for sale
compared to  $6,662,000  at December 31, 1999 and  $5,660,000  at June 30, 1999.
During the second quarter of 2000, the Company  originated  $60,893,000 and sold
$42,944,000 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  consists of liens on  inventories,  receivables,
equipment and furniture and fixtures.  Unsecured  commercial loans are generally
short-term with emphasis on repayment strengths and low debt to worth ratios. At
June 30, 2000,  approximately  $12,113,000,  or 44.9%, 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.



                                       9
<PAGE>

Allowance for Loan Losses

     The allowance for loan losses at June 30, 2000 was $1,812,000,  or 0.96% of
loans  outstanding  compared to $1,581,000,  or 1.06% of loans  outstanding,  at
December 31, 1999 and  $1,361,000,  or 1.15% of loans  outstanding,  at June 30,
1999.  The  allowance  for loan  losses is based  upon  management's  continuing
evaluation of the  collectability of past due loans based on the historical loan
loss  experience  of the Company,  current  economic  conditions  affecting  the
ability of borrowers to repay,  the volume of loans,  the quality of  collateral
securing   non-performing   and  problem  loans,  and  other  factors  deserving
recognition.  The decrease in the  allowance  for loan losses as a percentage of
loans  outstanding  is  partially  attributed  to the increase in loans held for
sale. These loans, which are residential  mortgages typically held for less than
two weeks,  are  believed to have a lower  level of risk when  compared to other
loans contained in the company's portfolio.

     At June 30, 2000, the Company had $703,000 in non-accruing loans,  $218,000
in  restructured  loans,  no loans  more  than  ninety  days  past due and still
accruing  interest,  and $219,000 in Other Real Estate  Owned.  This compares to
$628,000 in non-accruing  loans,  $150,000 in restructured  loans, no loans more
than  ninety  days past due on which  interest  was  still  being  accrued,  and
$219,000 in Other Real Estate Owned at December 31, 1999. At June 30, 1999,  The
Company had $559,000 in non-accruing  loans,  $205,000 in restructured loans and
no loans more than ninety days past due and still accruing interest and $313,000
in Other Real Estate Owned.  Non-performing  loans at June 30, 2000 consisted of
$68,000 in commercial loans; $577,000 in mortgage loans; and $58,000 in consumer
loans.  Non-performing  assets as a  percentage  of loans and other real  estate
owned was 0.41%,  0.67% and 0.47% at June 30,  2000,  December 31, 1999 and June
30, 1999, respectively.

     Net  charge-offs  during the three month period and six month periods ended
June  30,  2000  were  $33,000  and  $87,000,  respectively,   compared  to  net
charge-offs  of $11,000  and  $23,000,  respectively,  for the  three-month  and
six-month  periods  ended June 30,  1999.  The  allowance  for loan  losses as a
percentage of non-performing loans was 258%, 243% and 252%, respectively,  as of
June 30, 2000, June 30, 1999 and December 31, 1998.

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

Securities

          The Company  invests  primarily in obligations of the United States or
obligations  guaranteed as to principal and interest by the United States, other
taxable securities and in certain obligations of states and municipalities.  The
Company  does not  invest  in  corporate  bonds  nor  does it hold  any  trading
securities.  The Company uses its investment  portfolio to provide liquidity for
unexpected  deposit  liquidation  or  loan  generation,  to meet  the  Company's
interest  rate  sensitivity  goals and to  generate  income.  At June 30,  2000,
securities totaled $37,634,000. Securities increased $1,980,000 from $35,654,000
invested as of December 31, 1999 and $1,438,000 from $36,196,000  invested as of
June 30, 1999. The slight increase is due to increases in investment  securities
held by Bank of Anderson, N. A. and Seneca National Bank.



                                       10
<PAGE>

         At June  30,  2000,  the  Company's  total  investments  classified  as
available  for  sale  had a book  value of  $34,780,000  and a  market  value of
$33,887,000  for an  unrealized  net loss of $893,000.  This  compares to a book
value of  $32,534,000  and a market value of  $31,972,000  for an unrealized net
loss of $562,000 on the Company's  investments  classified as available for sale
at June  30,  1999.  At  December  31,  1999  the  Company's  total  investments
classified  as available for sale had a book value of  $31,982,000  and a market
value of $31,209,000 for an unrealized net loss of $773,000.

Deposits

         The Bank's  primary  source of funds for loans and  investments  is its
deposits.  Total  deposits  were  $198,017,000  at June 30, 2000, an increase of
$29,241,000, or 17.3%, from $168,776,000 at December 31, 1999 and an increase of
$50,139,000,  or 33.9%,  from  $147,878,000  at June 30, 1999.  These  increases
resulted from deposits generated by The Peoples National Bank, Bank of Anderson,
and Seneca National Bank in their  respective  markets.  Competition for deposit
accounts is primarily based on the interest rates paid, location convenience and
services offered.

         During the first six months of 2000, interest-bearing deposits averaged
$158,543,000  compared  to  $114,590,000  for the first six months of 1999.  The
average interest rate paid on interest-bearing  deposits was 4.49% for the first
six  months of 2000  compared  to 4.15% for the  first  six  months of 1999.  In
pricing  deposits,  the Company considers its liquidity needs, the direction and
levels  of  interest  rates  and  local  market  conditions.  At June  30,  2000
interest-bearing deposits comprised 84.8% of total deposits compared to 84.0% at
June 30, 1999.

         The Company's  core deposit base  consists of consumer  time  deposits,
savings,  NOW accounts,  money market accounts and checking  accounts.  Although
such core  deposits are becoming  increasingly  interest-sensitive  for both the
Company and the industry as a whole,  such core deposits continue to provide the
Company with a large and stable  source of funds.  Core deposits as a percentage
of total deposits averaged approximately 79.3% for the six months ended June 30,
2000.  The Company  closely  monitors  its reliance on  certificates  of deposit
greater than $100,000, which are generally considered to be less stable and less
reliable than core deposits.  At June 30, 2000,  certificates of deposit greater
than $100,000 totaled  $42,163,000  compared to $20,494,000 at December 31, 1999
and $28,987,000 at June 30, 1999.

Short Term Borrowings

         The Company's  short-term  borrowings are comprised of securities  sold
under repurchase agreements and short-term borrowings from the Federal Home Loan
Bank of Atlanta. At June 30, 2000 short-term  borrowings totaled $24,461,000 and
was comprised of $16,461,000 in securities sold under repurchase  agreements and
$8,000,000 in short-term Federal Home Loan Bank advances compared to $20,434,000
in short-term borrowings at December 31, 1999 which was comprised of $15,434,000
in securities  sold under  repurchase  agreements  and  $5,000,000 in short-term
Federal Home Loan Bank advances and to $18,847,000  is short-term  borrowings at
June 30,  1999 which was  comprised  of  $15,847,000  in  securities  sold under
repurchase  agreements  and  $3,000,000  in  short-term  Federal  Home Loan Bank
advances.

LIQUIDITY

     Liquidity  management  involves  meeting the cash flow  requirements of the
Company.  The Company's  liquidity position is primarily dependent upon its need
to respond to  short-term  demand for funds caused by  withdrawals  from deposit
accounts and upon the liquidity of its assets.  The Company's  primary liquidity
sources  include  cash and 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 June 30, 2000, The Peoples
National Bank had $8,000,000 in short-term borrowings from the Federal Home Loan


                                       11
<PAGE>

Bank of Atlanta. At June 30, 2000 The Peoples National Bank had unused borrowing
capacity from the Federal Home Loan Bank of Atlanta of equal to sixteen  percent
(16%) of its total assets or approximately $20,000,000.  The Company's other two
bank  subsidiaries,  Bank of  Anderson,  N. A. and  Seneca  National  Bank  have
established lines of credit with the Federal Home Loan Bank totaling  $3,700,000
and $1,500,000,  respectively  at June 30, 2000, all of which was available.  At
June 30,  2000,  the Banks had unused  federal  funds  lines of credit  totaling
$10,100,000 with correspondent banks.

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

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

CAPITAL ADEQUACY and RESOURCES

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

     For bank holding  companies  with total  assets of more than $150  million,
such as the  Company,  capital  adequacy is generally  evaluated  based upon the
capital of its banking  subsidiaries.  Generally,  the Board of Governors of the
Federal  Reserve  System (the  "Federal  Reserve  Board")  expects  bank holding
companies to operate above minimum capital levels. The Office of the Comptroller
of the  Currency  ("Comptroller")  regulations  establish  the minimum  leverage
capital  ratio  requirement  for national  banks at 3% in the case of a national
bank that has the highest regulatory examination rating and is not contemplating
significant  growth or  expansion.  All other  national  banks are  expected  to
maintain a ratio of at least 1% to 2% above the stated minimum. Furthermore, the
Comptroller  reserves the right to require  higher  capital ratios in individual
banks on a case by case basis  when,  in its  judgement,  additional  capital is
warranted by a deterioration of financial  condition or when high levels of risk
otherwise  exist.  The Banks  have not been  notified  that  they must  maintain
capital levels above regulatory minimums.

     The Federal  Reserve  Board has  adopted a  risk-based  capital  rule which
requires  bank holding  companies to have  qualifying  capital to  risk-weighted
assets of at least 8%, with at least 4% being  "Tier 1" capital.  Tier 1 capital
consists principally of common stockholders'  equity,  non-cumulative  preferred
stock,  qualifying  perpetual  preferred stock, and minority interests in equity
accounts of  consolidated  subsidiaries,  less  goodwill and certain  intangible
assets.  "Tier 2" (or  supplementary)  capital  consists  of  general  loan loss
reserves (subject to certain limitations),  certain types of preferred stock and
subordinated  debt,  and  certain  hybrid  capital  instruments  and other  debt
securities such as equity commitment notes. A bank holding company's  qualifying
capital base for purposes of its risk-based capital ratio consists of the sum of
its Tier 1 and Tier 2 capital  components,  provided that the maximum  amount of
Tier 2 capital that may be treated as  qualifying  capital is limited to 100% of
Tier 1 capital.  The Comptroller  imposes a similar  standard on national banks.
The regulatory  agencies  expect  national  banks and bank holding  companies to
operate above minimum risk-based capital levels.

     During 1998 the Company  successfully  completed the sale of 925,000 shares
of its common  stock  through two public stock  offerings.  From these two stock
offerings the company raised  $12,025,000 in additional  capital.  $4,500,000 of
this  additional  capital was used to  initially  capitalize  Bank of  Anderson,
National  Association  in September of 1998 and $3,500,000 was used to initially
capitalize  Seneca  National Bank in February 1999. In January 1999, the Company
injected  $1,000,000  in  additional  capital in The Peoples  National  Bank and
$1,000,000  in  additional  capital in Bank of  Anderson  to provide  for future
growth  of these  two  subsidiaries.  The  remaining  funds  from the two  stock
offerings are being held at the parent company level for future operating needs.



                                       12
<PAGE>

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

                                 CAPITAL RATIOS
                             (Amounts in Thousands)
<TABLE>
<CAPTION>
                                                                                          Well                    Adequately
                                                                                      Capitalized                 Capitalized
                                                          Actual                      Requirement                 Requirement
                                                  Amount          Ratio         Amount          Ratio          Amount         Ratio
                                                  ------          -----         ------          -----          ------         -----
Company:
<S>                                              <C>             <C>            <C>             <C>            <C>             <C>
Total Risk-based Capital ...............         $26,570         14.36%         $18,503         10.00%         $14,802         8.00%
Tier 1 Risk-based Capital ..............         $24,758         13.38%         $11,102          6.00%         $ 7,401         4.00%
Leverage Ratio .........................         $24,758          9.88%         $12,529          5.00%         $10,023         4.00%
</TABLE>

<TABLE>
<CAPTION>
                                                                                          Well                    Adequately
                                                                                      Capitalized                 Capitalized
                                                          Actual                      Requirement                 Requirement
                                                  Amount          Ratio         Amount          Ratio          Amount         Ratio
                                                  ------          -----         ------          -----          ------         -----
Peoples National Bank:
<S>                                              <C>             <C>            <C>             <C>            <C>             <C>
Total Risk-based Capital ...............         $14,345         10.89%         $13,173         10.00%         $10,538         8.00%
Tier 1 Risk-based Capital ..............         $13,128          9.97%         $ 7,901          6.00%         $ 5,267         4.00%
Leverage Ratio .........................         $13,128          7.63%         $ 8,603          5.00%         $ 6,882         4.00%

Bank of Anderson, N. A:
Total Risk-based Capital ...............         $ 5,594         15.40%         $ 3,632         10.00%         $ 2,906         8.00%
Tier 1 Risk-based Capital ..............         $ 5,205         14.32%         $ 2,181          6.00%         $ 1,454         4.00%
Leverage Ratio .........................         $ 5,205         10.87%         $ 2,394          5.00%         $ 1,915         4.00%

Seneca National Bank:
Total Risk-based Capital ...............         $ 3,451         20.77%         $ 1,662         10.00%         $ 1,329         8.00%
Tier 1 Risk-based Capital ..............         $ 3,245         19.53%         $   997          6.00%         $   665         4.00%
Leverage Ratio .........................         $ 3,245         14.18%         $ 1,144          5.00%         $   915         4.00%
</TABLE>





                                       13
<PAGE>

EFFECTS OF REGULATORY ACTION

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


Item 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

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

     The primary  objective of  Asset/Liability  Management at the Company is to
manage  interest  rate risk and achieve  reasonable  stability  in net  interest
income  throughout  interest rate cycles.  This is achieved by  maintaining  the
proper  balance of rate  sensitive  earning  assets and rate  sensitive  earning
liabilities. The relationship of rate sensitive earning assets to rate sensitive
liabilities,  is the principal  factor in projecting the effect that fluctuating
interest rates will have on future net interest  income.  Rate sensitive  assets
and  interest-bearing  liabilities  are those  that can be  repriced  to current
market rates within a relatively short time period. Management monitors the rate
sensitivity of earning assets and  interest-bearing  liabilities over the entire
life of these instruments,  but places particular emphasis on the first year. At
June  30,  2000,  on a  cumulative  basis  through  12  months,  rate  sensitive
liabilities exceeded  rate-sensitive assets,  resulting in a liability sensitive
position  of  $54.9  million.  This  liability  sensitive  position  is  largely
attributable  to assuming that the  Company's NOW accounts,  which totaled $24.8
million at June 30, 2000,  will reprice within one year.  This assumption may or
may not hold true as the Company  believes its NOW accounts  are  generally  not
price sensitive.



                                       14
<PAGE>

PART II.  OTHER INFORMATION

Item 1.       Legal Proceedings

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

               Thomas T. Brittain  commenced a lawsuit against Peoples  National
               Bank in the  Court of  Common  Pleas for  Pickens  County,  South
               Carolina,   Thirteenth   Judicial  Circuit,  on  July  20,  2000.
               Plaintiff,  a former employee of Peoples  National Bank, seeks an
               unspecified  amount of actual and  punitive  damages  for alleged
               breach of an employment  contract and termination in violation of
               public policy.  The Company intends to vigorously defend the suit
               and is presently unable to determine the amount of liability,  if
               any, the Company may have.

Item 2.       Changes in Securities and Use of Proceeds

               During  the  period  ended June 30,  2000 the  Registrant  issued
               shares of common stock to the  following  classes of persons upon
               the exercise of options issued pursuant to the Registrant's  1993
               Incentive  Stock Option Plan. The securities were issued pursuant
               to the exemption from 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
   -----------          ----------             ------                -----
    01/07/2000          Employees                 775             $   3,666
    06/12/2000          Employees              30,629*            $ 151,797

*Stock purchase by exchange of 7,971 shares.


Item 4.       Submission to a Vote of Security Holders

On April 10, 2000,  the Company  held its Annual  Meeting of  Shareholders.  The
result of the 2000 Annual Meeting of Shareholders is as follows:

Election of Directors

The following persons were elected as Directors to serve for the terms set forth
below  with  1,850,851  shares  voted,  representing  61.9% of the total  voting
shares:

<TABLE>
<CAPTION>
                                                           For                Withheld            Against       Term (years)
                                                           ---                --------            -------       ------------
<S>                                                     <C>                     <C>                 <C>             <C>
William A. Carr ...................................     1,848,647               2,204               0               3
Robert E. Dye, Jr .................................     1,848,647               2,204               0               3
W. Rutledge Galloway ..............................     1,848,647               2,204               0               3
E. Smyth McKissick, III ...........................     1,848,647               2,204               0               3
James A. Black, Jr ................................     1,848,647               2,204               0               3
William B. West ...................................     1,849,749               1,102               0               3
F. Davis Arnette, Jr ..............................     1,848,647               2,204               0               2
Larry D. Reeves ...................................     1,849,749               1,102               0               2
David C. King .....................................     1,849,749               1,102               0               1
Andrew M McFall ...................................     1,848,647               2,204               0               1
</TABLE>

Item 6.       Exhibits and Reports on Form 8-K

(a)      Exhibits.

               Exhibit 27  Financial Data Schedule

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

                                       15
<PAGE>



SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                          PEOPLES BANCORPORATION, INC.


Dated: August 7,2000              By: /s/ Robert E. Dye
                                     -------------------
                                      Robert E. Dye
                                      President and Chairman of the Board


Dated:  August 7,2000              By: /s/ William B. West
                                       ---------------------
                                       William B. West
                                       Sr. Vice President & CFO
                                       (principal financial officer)





                                       16
<PAGE>


                                  EXHIBIT INDEX


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

                 27                                  Financial Data Schedule




                                       17