SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

For the Quarterly Period Ended                                Commission file
    September 30, 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.)

               1818 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 [ ]

               Indicate by check mark whether the registrant is an
                  accelerated filer (as defined in Rule 12 b-2
                              of the Exchange Act).

                             Yes [ ]  No [X]

                     The number of outstanding shares of the
                      issuer's $1.67 par value common stock
                     as of September 30, 2002 was 3,341,370.





                                       1
<PAGE>


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements


        Peoples Bancorporation, Inc. and Subsidiaries
                 Consolidated Balance Sheets
           (Amounts in thousands except share data)

<TABLE>
<CAPTION>
                                                                                            September 30, 2002    December 31, 2001
                                                                                                 Unaudited              Audited
ASSETS
<S>                                                                                               <C>                  <C>
CASH AND DUE FROM BANKS ..................................................................        $ 17,234             $  5,199
INTEREST-BEARING DEPOSITS IN OTHER BANKS .................................................              25                   24
FEDERAL FUNDS SOLD .......................................................................          16,852                7,203
                                                                                                  --------             --------
     Total cash and cash equivalents .....................................................          34,111               12,426
SECURITIES
     Available for sale ..................................................................          76,948               30,339
     Held for investment (market value of $3,534, and $3,417) ............................           3,371                3,339
     Other investments, at cost ..........................................................           1,884                1,815
LOANS-less allowance for loan losses of $2,804 and $2,288 ................................         234,537              210,248
MORTGAGE LOANS HELD FOR SALE .............................................................          32,913               40,925
PREMISES AND EQUIPMENT, net of accumulated
     depreciation and amortization .......................................................           9,498                7,961
ACCRUED INTEREST RECEIVABLE ..............................................................           2,011                1,683
OTHER ASSETS .............................................................................           2,775                3,430
                                                                                                  --------             --------
         TOTAL ASSETS ....................................................................        $398,048             $312,166
                                                                                                  ========             ========


LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
     Noninterest-bearing .................................................................        $ 45,531             $ 34,579
     Interest-bearing ....................................................................         285,500              202,223
                                                                                                  --------             --------
         Total deposits ..................................................................         331,031              236,802
SECURITIES SOLD UNDER REPURCHASE
     AGREEMENTS ..........................................................................          23,225               20,646
FEDERAL FUNDS PURCHASED ..................................................................           4,363                    0
NOTES PAYABLE TO FEDERAL HOME LOAN BANK ..................................................           5,000               23,985
ACCRUED INTEREST PAYABLE .................................................................           1,372                1,218
OTHER LIABILITIES ........................................................................           1,297                  964
                                                                                                  --------             --------
         Total Liabilities ...............................................................         366,288              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 ........................................................................           2,630                   32
Accumulated other comprehensive income ...................................................             695                  174
                                                                                                  --------             --------
         Total Shareholders' Equity ......................................................          31,760               28,551
                                                                                                  --------             --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ...............................................        $398,048             $312,166
                                                                                                  ========             ========
</TABLE>


                                       2
<PAGE>


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

<TABLE>
<CAPTION>
                                                                             Three Months Ended               Nine Months Ended
                                                                                September 30,                   September 30,
                                                                           2002            2001              2002           2001
                                                                           ----            ----              ----           ----
INTEREST INCOME
<S>                                                                    <C>              <C>              <C>              <C>
Interest and fees on loans .....................................       $    4,400       $    4,453       $   13,007       $   13,383
Interest on securities
     Taxable ...................................................              773              475            1,862            1,452
     Tax-exempt ................................................               36               41              108              127
Interest on federal funds ......................................              135              159              333              402
                                                                       ----------       ----------       ----------       ----------
Total interest income ..........................................            5,344            5,128           15,310           15,364

INTEREST EXPENSE
Interest on deposits ...........................................            1,975            2,373            5,381            7,429
Interest on federal funds purchased and securities
     sold under repurchase agreements ..........................              112              185              356              534
Interest on notes payable Federal Home
     Loan Bank .................................................               62               62              195              292
                                                                       ----------       ----------       ----------       ----------
Total interest expense .........................................            2,149            2,620            5,932            8,255

Net interest income ............................................            3,195            2,508            9,378            7,109
PROVISION FOR LOAN LOSSES ......................................              143              149              654              401
                                                                       ----------       ----------       ----------       ----------
Net interest income after provision for
     loan losses ...............................................            3,052            2,359            8,724            6,708

NON-INTEREST INCOME
Service fees and other income ..................................              627              561            1,777            1,446
Mortgage banking income ........................................              885              720            2,523            2,341
                                                                       ----------       ----------       ----------       ----------
                                                                            1,512            1,281            4,300            3,787
NON-INTEREST EXPENSE
Salaries and benefits ..........................................            1,721            1,399            4,722            4,068
Occupancy ......................................................              154              135              399              383
Equipment ......................................................              217              159              549              468
Other operating expenses .......................................              791              689            2,411            2,098
                                                                       ----------       ----------       ----------       ----------
                                                                            2,883            2,382            8,081            7,017
Income before income taxes .....................................            1,681            1,258            4,943            3,478

PROVISION FOR INCOME TAXES .....................................              607              452            1,778            1,248
                                                                       ----------       ----------       ----------       ----------

Net income .....................................................       $    1,074       $      806       $    3,165       $    2,230
                                                                       ==========       ==========       ==========       ==========

INCOME PER COMMON SHARE:
     BASIC .....................................................       $     0.32       $     0.24       $     0.95       $     0.67
                                                                       ==========       ==========       ==========       ==========
     DILUTED ...................................................       $     0.32       $     0.24       $     0.93       $     0.65
                                                                       ==========       ==========       ==========       ==========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
    BASIC ......................................................        3,341,370        3,327,384        3,335,698        3,326,760
                                                                       ==========       ==========       ==========       ==========
    DILUTED ....................................................        3,402,755        3,427,638        3,420,524        3,413,198
                                                                       ==========       ==========       ==========       ==========
DIVIDENDS PAID PER COMMON  SHARE ...............................       $     0.06       $     0.04       $     0.17       $     0.12
                                                                       ==========       ==========       ==========       ==========
</TABLE>


                                       3
<PAGE>

                 Peoples Bancorporation, Inc. and Subsidiaries
           Consolidated Statements of Changes in Shareholders' Equity
             for the nine months ended September 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 ................................                                                  2,230                           2,230
Other comprehensive income, net of tax:
   Unrealized holding gains on
     securities available for sale .......                                                                     431             431
   Less reclassification
     adjustments for gains
     included in net income ..............                                                                       0               0
                                                                                                                       -----------
Comprehensive income ....................                                                                                    2,661
Cash Dividends ..........................                                                     (412)                           (412)
Proceeds from stock options .............         2,672             5             6                                             11
                                            -----------    ----------    ----------     ----------   -------------    ------------
Balance, September 30, 2001 .............     3,170,718     $   5,295    $   20,593     $    1,818   $         369    $     28,075
                                            ===========    ==========    ==========     ==========   =============    ============

Balance, December 31, 2001* .............     3,328,609    $    5,559    $   22,786     $       32   $         174    $     28,551
Net Income ..............................                                                    3,165                           3,165
Other comprehensive income,
 net of tax:
   Unrealized holding losses on
     securities available for sale ......                                                                      521             521
   Less reclassification
     adjustments for gains
     included in net income .............                                                                        0               0
                                                                                                                       -----------
Comprehensive income ....................                                                                                    3,686
Cash Dividends ..........................                                                     (567)                           (567)
Proceeds from stock options .............        12,761            21            69                                             90
                                            -----------    ----------    ----------     ----------   -------------    ------------
Balance, September 30, 2002 .............     3,341,370    $    5,580    $   22,855     $    2,630   $         695    $     31,760
                                            ===========    = ========    ==========     ==========   =============    ============
</TABLE>


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





                                       4
<PAGE>



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

<TABLE>
<CAPTION>
                                                                                                               (Unaudited)
                                                                                                             Nine months Ended
                                                                                                               September 30,
                                                                                                         2002                  2001
                                                                                                         ----                  ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                                 <C>                   <C>
   Net Income ..........................................................................            $   3,165             $   2,230
   Adjustments to reconcile net income to net cash provided
     by (used in) operating activities
   Provision for loan losses ...........................................................                  654                   401
   Depreciation and amortization .......................................................                  356                   421
   Amortization and accretion (net) of premiums and
     discounts on securities ...........................................................                   82                   (19)
    Origination of mortgage loans held for sale ........................................             (263,913)             (232,297)
    Sale of mortgage loans held for sale ...............................................              271,925               228,056
   (Increase) decrease in accrued interest receivable ..................................                 (328)                   86
   Increase in other assets ............................................................                 (147)                 (765)
   Increase (decrease) in accrued interest payable .....................................                  154                   (77)
   Increase (decrease) in other liabilities ............................................                  212                   (81)
                                                                                                    ---------             ---------
     Net cash provided by (used in) operating activities ...............................               12,160                (2,045)
                                                                                                    ---------             ---------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of securities available for sale ..........................................              (73,701)              (28,343)
   Proceeds from the maturity of securities available for sale .........................                5,299                 3,769
   Proceeds from the sale of securities available for sale .............................                5,750                     0
   Proceeds from the call of securities available for sale .............................               16,650                23,600
   Net increase in loans ...............................................................              (24,289)              (23,887)
   Purchase of premises and equipment ..................................................               (1,893)                 (251)
                                                                                                    ---------             ---------
     Net cash used in investing activities .............................................              (72,184)              (25,112)
                                                                                                    ---------             ---------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits ............................................................               94,229                33,471
   Net increase in securities sold under repurchase
     agreements ........................................................................                2,579                 5,219
   Net increase (decrease) in Federal funds purchased ..................................                4,363                (3,531)
   Net decrease in notes payable Federal Home Loan Bank ................................              (18,985)               (1,500)
   Proceeds from stock options exercised ...............................................                   90                    11
   Cash dividend .......................................................................                 (567)                 (412)
                                                                                                    ---------             ---------
     Net cash provided by financing activities .........................................               81,709                33,258
                                                                                                    ---------             ---------
     Net increase in cash and cash equivalents .........................................               21,685                 6,101
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ...........................................               12,426                10,685
                                                                                                    ---------             ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD ...............................................            $  34,111             $  16,786
                                                                                                    =========             =========

CASH PAID FOR
     Interest ..........................................................................            $   5,778             $   8,334
                                                                                                    =========             =========
     Income Taxes ......................................................................            $   1,597             $   1,204
                                                                                                    =========             =========
</TABLE>







                                       5
<PAGE>




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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         A summary of these  policies is  included in the 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 and September 20, 2002,
payable July 5, 2002 and October 4, 2002, 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 for the nine months ended  September  30, 2002 and 2001 was  3,335,698 and
3,326,760,   respectively.   The  weighted   average  number  of  common  shares
outstanding  for diluted net income per common share was 3,420,524 and 3,413,198
for the nine months ended September 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.








                                       6
<PAGE>


MANAGEMENT'S OPINION

         The   accompanying    unaudited   financial   statements   of   Peoples
Bancorporation, Inc. have been prepared in accordance with accounting principles
in the United States of America 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 accounting  principles in the United States of America 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.

















                                       7
<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  nine-month  period  ending  September  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. 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


                                       8
<PAGE>

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.



















                                       9
<PAGE>

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EARNINGS PERFORMANCE

Overview

         The consolidated Company's net income for the third quarter of 2002 was
$1,074,000 or $0.32 per diluted share  compared to $806,000 or $0.24 per diluted
share for the second  quarter of 2001, an increase of 33.3%.  Net income for the
nine months ended  September 30, 2002 was  $3,165,000 or $0.93 per diluted share
compared  to  $2,230,000  or $0.65 per diluted  share for the nine months  ended
September 30, 2001, an increase of 41.9%.  Return on average equity for the nine
months and three months ended  September 30, 2002 was 14.20% and 14.02% compared
to 11.13% and 11.76% for the nine months and three  months ended  September  30,
2001.  Return on average  assets  for the nine  months  and three  months  ended
September 30, 2002 was 1.21% and 1.12%  compared to 1.06% and 1.10% for the nine
months and three months ended September 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
$2,386,000 for the nine months ended September 30, 2002 compared to net earnings
of  $1,981,000  for the nine months ended  September  30,  2001,  an increase of
20.4%.  Bank of Anderson,  N. A.  recorded net earnings of $578,000 for the nine
months  ended  September  30, 2002  compared to net earnings of $255,000 for the
nine months ended  September  30, 2001, an increase of 126.7%.  Seneca  National
Bank  recorded net earnings of $229,000 for the nine months ended  September 30,
2002 compared to net earnings of $37,000 for the nine months ended September 30,
2001, an increase of 518.9%.

Interest Income, Interest Expense and Net Interest Income

         The largest  component of the Company's net income is 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  $687,000 or 27.4% to  $3,195,000  for the
quarter ended  September  30, 2002 compared to $2,508,000  for the quarter ended
September  30, 2001.  For the nine months ended  September 30, 2002 net interest
income  before  provision  for  loan  losses  increased  $2,269,000  or 31.9% to
$9,378,000  compared to $7,109,000 for the nine months ended September 30, 2001.
The increases in the net interest income resulted  primarily from an increase in
interest earning assets,  as well as, a decrease in interest expense  associated
with interest  bearing  liabilities.  The Company's net interest  margin for the
nine  months  and three  months  ended  September  30,  2002 was 3.84% and 3.57%
respectively,  compared to 3.62% and 3.66%  respectively for the nine months and
three months ended September 30, 2001.

         The Company's  total interest  income for the third quarter of 2002 was
$5,344,000  compared to $5,128,000 for the third quarter of 2001, an increase of


                                       10
<PAGE>

$216,000 or 4.2%.  Total interest income for the nine months ended September 30,
2002 was $15,310,000 compared to $15,364,000 for the nine months ended September
30, 2001, a decrease of $54,000 or 0.4%. Interest and fees on loans, the largest
component of total interest  income,  decreased  $53,000 in the third quarter of
2002 to  $4,400,000  compared to  $4,453,000  for the third  quarter of 2001,  a
decrease of 1.2%.  Interest  and fees on loans  decreased  $376,000 for the nine
months ended  September 30, 2002 to $13,007,000  compared to $13,383,000 for the
nine months  ended  September  30,  2001,  a decrease of 2.8%.  The  decrease in
interest and fees on loans  resulted  primarily  from the lower market  interest
rates that were experienced at the Company's bank subsidiaries  during the first
half of 2002 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 third quarter of 2002 was
$2,149,000  compared to $2,620,000  for the third quarter of 2001, a decrease of
$471,000 or 18.0%.  Total interest  expense for the nine months ended  September
30,  2002 was  $5,932,000  compared  to  $8,255,000  for the nine  months  ended
September  30,  2001, a decrease of  $2,323,000  or 28.1%.  Interest  expense on
deposits, the largest component of total interest expense, decreased $398,000 in
the third  quarter of 2002 to $1,975,000  compared to  $2,373,000  for the third
quarter of 2001,  a decrease of 16.8%.  Interest  expense on deposits  decreased
$2,048,000 for the nine months ended  September 30, 2002 to $5,381,000  compared
to $7,429,000 for the nine months ended September 30, 2001, a decrease of 27.6%.
Interest  on federal  funds  purchased  and  securities  sold  under  repurchase
agreements,  the second largest component of total interest  expense,  decreased
$73,000 or 39.5% to $112,000 in the third  quarter of 2002  compared to $185,000
for the  third  quarter  of  2001.  Interest  on  federal  funds  purchased  and
securities  sold under  repurchase  agreements  decreased  $178,000  or 33.3% to
$356,000 for the nine months ended  September  30, 2002 compared to $534,000 for
the same  period in 2001.  Interest on notes  payable to the  Federal  Home Loan
Bank, the third largest component of total interest expense,  remained unchanged
at $62,000 in the third  quarter of 2002  compared to the third quarter of 2001.
Interest on notes  payable to the Federal  Home Loan Bank  decreased  $97,000 or
33.2% to  $195,000  for the nine months  ended  September  30, 2002  compared to
$292,000 for the nine months ended September 30, 2001. The significant  decrease
in  interest  expense  among each of  deposits,  federal  funds  purchased,  and
securities sold under  repurchase  agreements for the three-month and nine-month
periods  ending  September  30,  2002  compared  to the same  periods in 2001 is
largely attributable to lower market interest rates experienced at the Company's
banks, and was partially offset by the higher average balances in certain 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.



                                       11
<PAGE>

         The  provision for loan losses  charged to operations  during the three
months and nine months  ended  September  30,  2002 was  $143,000  and  $654,000
respectively,  compared to $149,000  and  $401,000  respectively,  for the three
months and nine months ended  September 30, 2001.  The increase in the Company's
provision  for loan  losses for the nine  months  ended  September  30,  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.

         During the quarter  ended  September  30,  2002,  one of the  Company's
subsidiary banks was informed of a potential problem with one of its credits. As
a result,  management took a partial charge of $57,000 against the allowance for
loan losses during the quarter.  While it is difficult to determine at this time
the exact amount of any additional loss associated with this credit,  management
feels that the  allowance  for loan loss remains  adequate to absorb the maximum
loss  potential  on this one  credit of  $205,000  should it occur in any future
reporting period.

Non-interest Income

         Non-interest  income increased  $231,000 or 18.0% to $1,512,000 for the
third  quarter of 2002  compared to  $1,281,000  for the third  quarter of 2001.
Non-interest  income  increased  $513,000  or 13.5% to  $4,300,000  for the nine
months ended September 30, 2002 compared to $3,787,000 for the nine months ended
September 30, 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. Also contributing substantially to
the increase in non-interest  income was an increase in fees associated with the
origination of residential mortgages. A gain of $40,000 was realized on the sale
of  available-for-sale  securities  during the third quarter of 2002. No gain or
loss was  realized on the sale of  securities  during the three  months and nine
months ended September 30, 2001.

Non-interest Expense

         Total  non-interest  expense increased  $501,000 or 21.0% to $2,883,000
for the third  quarter of 2002 from  $2,382,000  for the third  quarter of 2001.
Total non-interest  expense increased  $1,064,000 or 15.2% to $8,081,000 for the
nine months  ended  September  30, 2002 from  $7,017,000  for nine months  ended
September 30, 2001. Salaries and benefits, the largest component of non-interest
expense, increased $322,000 or 23.0% to $1,721,000 for the third quarter of 2002
from $1,399,000 for the third quarter of 2001.  Salaries and benefits  increased
$654,000 or 16.1% to  $4,722,000  for the nine months ended  September  30, 2002
from  $4,068,000  for the nine months ended  September 30, 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.  The  increase  in other  non-interest  expense  items
resulted from continued growth  experienced by the Company during the comparable
periods.



                                       12
<PAGE>

BALANCE SHEET REVIEW

Loans

         Outstanding  loans  (which  excludes  mortgage  loans  held  for  sale)
represent  the largest  component  of earning  assets at 64.3% of total  earning
assets. As of September 30, 2002, the Company held total gross loans outstanding
of $237,341,000. Gross loans increased $24,805,000 or 11.7% from $212,536,000 in
total gross outstanding loans at December 31, 2001 and increased  $28,310,000 or
13.5% from  $209,031,000 in total gross loans outstanding at September 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 nine months and three months
ended September 30, 2002 was 7.03% and 6.86% respectively, compared to 8.27% and
7.99%  respectively,  for the nine months and three months ended  September  30,
2001.  Approximately 41.3% 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  predominantly  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 September 30, 2002 the
Company held $32,913,000 of mortgage loans held for sale compared to $40,925,000
at December 31, 2001 and  $21,232,000  at September  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  September 30, 2002 the Company  originated  $104,842,000  and sold
$85,209,000  in  residential  mortgage  loans.  During  the  nine  months  ended
September 30, 2002, the Company originated $263,913,000 and sold $271,925,000 in
residential mortgage loans.

         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


                                       13
<PAGE>

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 September 30, 2002  approximately  $13,225,000 or 8.7% of commercial
loans were unsecured.

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

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

Allowance for Loan Losses

         The allowance  for loan losses at September 30, 2002 was  $2,804,000 or
1.18% 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
$2,282,000 or 1.09% of loans  outstanding  at September 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 September 30, 2002 the Company had $691,000 in  non-accruing  loans,
no  restructured  loans,  $190,000  in loans more than  ninety days past due and
still accruing interest,  and $193,000 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 September 30, 2001,
the Company had $1,207,000 in  non-accruing  loans,  no  restructured  loans, no
loans more than ninety days past due and still accruing  interest,  and $957,000
in Other Real Estate Owned. Non-performing loans at September 30, 2002 consisted
of $231,000 in  commercial  loans,  $452,000  in mortgage  loans,  and $8,000 in
consumer  loans.  Non-performing  assets as a percentage of loans and other real
estate owned was 0.40%,  0.77%,  and 0.94% at September  30, 2002,  December 31,
2001, and September 30, 2001, respectively.

         Net  charge-offs  during the nine months ended  September 30, 2002 were
$138,000  compared  to net  charge-offs  of $142,000  for the nine months  ended
September  30,  2001.   The  allowance  for  loan  losses  as  a  percentage  of
non-performing loans was 318%, 228%, and 189% as of September 30, 2002, December
31, 2001, and September 30, 2001, respectively.



                                       14
<PAGE>

         The  Company  accounts  for  impaired  loans  in  accordance  with  the
provisions  of  Statement  of  Financial   Accounting  Standards  ("SFAS")  114,
Accounting  by Creditors for  Impairment of a Loan.  SFAS No. 114, as amended by
SFAS No. 118,  requires  that  impaired  loans be measured  based on the present
value of  expected  future  cash flows or the  underlying  collateral  values as
defined in the  pronouncement.  The Company  includes the provisions of SFAS NO.
114, if any, in the allowance for loan losses. When the ultimate  collectability
of an impaired  loan's  principal  is in doubt,  wholly or  partially,  all cash
receipts are then applied to principal. At each of September 30, 2002, September
30, 2001, and December 31, 2001 the Company had no impaired loans.

Securities

         The Company  invests  primarily in  obligations of the United States or
obligations  guaranteed as to principal and interest by the United States, other
taxable securities, and in certain obligations of states and municipalities. The
Company  does not  invest  in  corporate  bonds  nor  does it hold  any  trading
securities.  The Company uses its investment  portfolio to provide liquidity for
unexpected  deposit  liquidation  or  loan  generation,  to meet  the  Company's
interest rate  sensitivity  goals,  to secure public  deposits,  and to generate
income. At September 30, 2002 securities totaled  $82,203,000,  which represents
22.3% of total earning assets.  Securities increased  $46,710,000 or 131.6% from
$35,493,000  invested as of December  31,  2001 and  $44,044,000  or 115.4% from
$38,159,000  invested as of September  30, 2001.  The increase in  securities is
primarily the result of the  investment of excess  liquidity  resulting  from an
increase in deposits at the Company's bank subsidiaries.

         At September 30, 2002 the  Company's  total  investments  classified as
available for sale had an amortized  cost of  $75,895,000  and a market value of
$76,948,000 for an unrealized gain of $1,053,000.  This compares to an amortized
cost of $32,458,000  and a market value of $33,017,000 for an unrealized gain of
$559,000  on the  Company's  investments  classified  as  available  for sale at
September  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 $21,685,000 or 174.5%
to $34,111,000  at September 30, 2002 from  $12,426,000 at December 31, 2001 and
$17,325,000 or 103.2% from  $16,786,000 at September 30, 2001.  This increase is
the result of increased  deposits  coupled with slightly lower loan demand.  The
Company's  intent  is to deploy  these  funds  into  higher  yielding  assets as
opportunities arise.

Deposits

         The Bank's  primary  source of funds for loans and  investments  is its
deposits.  Total deposits grew $94,229,000 or 39.8% to $331,030,000 at September
30, 2002 from  $236,802,000  at December 31, 2001 and  $91,926,000 or 38.4% from
$239,105,000  at  September  30,  2001.  The  increase  resulted  from  deposits


                                       15
<PAGE>

generated by each of the Banks.  Competition  for deposit  accounts is primarily
based on the interest rates paid, location convenience and services offered.

         During the nine  months  ended  September  30,  2002,  interest-bearing
deposits averaged  $247,208,000  compared to $196,222,000 for the same period 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  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 September 30, 2002 the outstanding certificates
garnered through the Internet totaled $1,486,000,  and brokered deposits totaled
$100,000.  At December 31, 2001 the  Internet  certificates  of deposit  totaled
$7,681,000,  and brokered  deposits  totaled  $5,100,000.  At September 30, 2001
Peoples National Bank had $4,358,000 in Internet  certificates of deposit and no
brokered deposits.

         The average interest rate paid on  interest-bearing  deposits was 2.86%
during the nine months ended  September  30, 2002 compared to 5.04% for the same
period of 2001. In pricing deposits,  the Company considers its liquidity needs,
the  direction and levels of interest  rates,  and local market  conditions.  At
September 30, 2002  interest-bearing  deposits comprised 86.3% of total deposits
compared to 83.9% at September 30, 2001.

         The  Company's  core deposit  base  consists  largely of consumer  time
deposits,  savings accounts,  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  relatively
stable  funds.  Core  deposits  as  a  percentage  of  total  deposits  averaged
approximately  77.8% and 76.0% for the nine months ended  September 30, 2002 and
2001  respectively.  The Company  closely  monitors its reliance on certificates
greater than $100,000, which are generally considered to be 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  September  30, 2002
short-term  borrowings  totaled  $27,588,000 and were comprised of $4,363,000 in
Federal Funds  Purchased and  $23,225,000  in 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  September  30,  2001  short-term  borrowings  totaled  $21,004,000  and were
comprised of $129,000 in Federal Funds Purchased, $19,376,000 in securities sold
under  repurchase  agreements,  and  $1,500,000  in sort-term  advances from the
Federal Home Loan Bank of Atlanta.  Short-term borrowings are used primarily for
the  immediate  cash  needs  of the  Company.  During  2002 the  Company  repaid


                                       16
<PAGE>

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 September  30, 2002,  December 31,
2001, and September 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
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 September  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
$47,260,000.  The  unused  portion  of this line of credit  was  $42,260,000  at
September 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  $11,749,000  and  $4,756,000  respectively,  all of which was
unused.  At September  30,  2002,  the Banks had unused  federal  funds lines of
credit with various correspondent banks totaling $13,387,000.

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

         The Company is  considering  capital  expenditures  that may be made in
part during the  remainder of 2002.  The Company may begin  incurring  costs for
these  projects  during the fourth  quarter of 2002.  These include the possible
construction of a branch banking facility for Bank of Anderson for approximately
$800,000 when  completed and the possible  renovation  and expansion of the main
office of Bank of  Anderson  for  approximately  $800,000  when  completed.  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


                                       17
<PAGE>

September  30,  2002,  the Banks had  issued  commitments  to extend  credit and
letters of credit of  $64,472,000  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
obligation to the third party.  Standby letters of credit totaled  $5,602,000 at
September 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.










                                       18
<PAGE>



CAPITAL ADEQUACY and RESOURCES

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

         The following  table sets forth the capital  ratios for the Company and
the Banks as of September 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                                    $    33,870     12.56%   $   26,945     10.00%   $   21,556      8.00%
Tier 1 Risk-based Capital                                        31,065     11.52        16,166      6.00        10,777      4.00
Leverage Ratio                                                   31,065      8.19        18,965      5.00        15,172      4.00

Peoples National Bank:
Total Risk-based Capital                                    $    19,725     11.59%   $   17,019     10.00%   $   13,615      8.00%
Tier 1 Risk-based Capital                                        17,968     10.55        10,209      6.00         6,806      4.00
Leverage Ratio                                                   17,968      8.11        11,078      5.00         8,862      4.00

Bank of Anderson, N. A:
Total Risk-based Capital                                    $     7,749     11.50%   $    6,738     10.00%   $    5,391      8.00%
Tier 1 Risk-based Capital                                         7,034     10.44         4,043      6.00         2,695      4.00
Leverage Ratio                                                    7,034      6.40         5,495      5.00         4,396      4.00

Seneca National Bank:
Total Risk-based Capital                                    $     3,941     12.31%   $    3,201     10.00%   $    2,561      8.00%
Tier 1 Risk-based Capital                                         3,608     11.27         1,921      6.00         1,281      4.00
Leverage Ratio                                                    3,608      7.55         2,389      5.00         1,912      4.00
</TABLE>




                                       19
<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.



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 September 30, 2002, on a cumulative basis through
12  months,   rate-sensitive   liabilities  exceeded  rate-sensitive  assets  by
$119,944,000.  This liability-sensitive  position is largely attributable to the
Company's  short-term  Certificates  of Deposit,  Money Market  accounts and NOW
accounts, which totaled $115,560,000, $77,289,000 and $32,197,000, respectively,
at September 30, 2002, and may reprice or mature within one year.




                                       20
<PAGE>

Item 4.  CONTROLS AND PROCEDURES

     (a) Based on their  evaluation  of the  issuer's  disclosure  controls  and
procedures (as defined in 17 C.F.R Sections  240.13a-14(c) and 240.15d-14(c)) as
of a date  within 90 days  prior to the  filing of this  quarterly  report,  the
issuer's chief executive  officer and chief financial officer concluded that the
effectiveness of such controls and procedures was adequate.

     (b) There were no significant  changes in the issuer's internal controls or
in other factors that could  significantly  affect these controls  subsequent to
the date of their  evaluation,  including any corrective  actions with regard to
significant deficiencies and material weaknesses.




















                                       21
<PAGE>


PART II.  OTHER INFORMATION

Item 2.       Changes in Securities and Use of Proceeds

During the period ended September 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 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
               September 30, 2002.














                                       22
<PAGE>



SIGNATURES

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


                                      PEOPLES BANCORPORATION, INC.


Dated:  November 6, 2002              By:    /s/ Robert E. Dye, Sr.
                                           ------------------------
                                             Robert E. Dye, Sr.
                                             President and Chairman of the Board


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












                                       23
<PAGE>


                                 CERTIFICATIONS

     I, Robert E Dye, Sr., certify that:

     1.  I  have  reviewed  this  quarterly  report  on  Form  10-Q  of  Peoples
Bancorporation, Inc.;

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

     4. The  registrant's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

          a) designed  such  disclosure  controls and  procedures to ensure that
     material information relating to the registrant, including its consolidated
     subsidiaries,  is  made  know  to  us  by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

          b) evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

          c)  presented  in this  quarterly  report  our  conclusions  about the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

     5. The registrant's other certifying  officers and I have disclosed,  based
on our most  recent  evaluation,  to the  registrant's  auditors  and the  audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent functions):

          a) all significant deficiencies in the design or operation of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

          b) any fraud,  whether or not material,  that  involves  management or
     other employees who have a significant  role in the  registrant's  internal
     controls; and

     6. The registrant's other certifying  officers and I have indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


Dated:  November 6, 2002              By:    /s/ Robert E. Dye, Sr.
                                           ------------------------
                                             Robert E. Dye, Sr.
                                             President and Chairman of the Board

                                       24
<PAGE>

                                 CERTIFICATIONS

     I, William B. West., certify that:

     1.  I  have  reviewed  this  quarterly  report  on  Form  10-Q  of  Peoples
Bancorporation, Inc.;

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

     4. The  registrant's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

          a. designed  such  disclosure  controls and  procedures to ensure that
     material information relating to the registrant, including its consolidated
     subsidiaries,  is  made  know  to  us  by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

          b. evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of this
     quarterly report (the "Evaluation Date"); and

          c.  presented  in this  quarterly  report  our  conclusions  about the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

     5. The registrant's other certifying  officers and I have disclosed,  based
on our most  recent  evaluation,  to the  registrant's  auditors  and the  audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent functions):

          a. all significant deficiencies in the design or operation of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

          b. any fraud,  whether or not material,  that  involves  management or
     other employees who have a significant  role in the  registrant's  internal
     controls; and

     6. The registrant's other certifying  officers and I have indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


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

                                       25