SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

                 For the Quarterly Period Ended Commission file
                            March 31, 2003 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 May 6, 2003 was 3,507,911.





                                       1
<PAGE>



PART I - FINANCIAL INFORMATION
Item 1. Financial Statements


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

<TABLE>
<CAPTION>
                                                                                             March 31, 2003     December 31, 2002
                                                                                               Unaudited             Audited
                                                                                               ---------             -------
ASSETS
<S>                                                                                             <C>                  <C>
CASH AND DUE FROM BANKS ..................................................................      $ 14,616             $  9,474
INTEREST-BEARING DEPOSITS IN OTHER BANKS .................................................             8                   33
FEDERAL FUNDS SOLD .......................................................................         8,448                2,635
                                                                                                --------             --------
     Total cash and cash equivalents .....................................................        23,072               12,142
SECURITIES
     Available for sale ..................................................................        75,533               80,163
     Held for investment (market value of $4,723, and $4,248) ............................         4,545                4,123
       Other investments, at cost ........................................................         2,079                1,884
LOANS-less allowance for loan losses of $2,932 and $2,850 ................................       262,604              247,637
MORTGAGE LOANS HELD FOR SALE .............................................................        44,143               55,026
PREMISES AND EQUIPMENT, net of accumulated
     depreciation and amortization .......................................................         9,534                9,539
ACCRUED INTEREST RECEIVABLE ..............................................................         1,874                1,976
OTHER ASSETS .............................................................................         3,795                3,632
                                                                                                --------             --------
         TOTAL ASSETS ....................................................................      $427,179             $416,122
                                                                                                ========             ========


LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
DEPOSITS
     Noninterest-bearing .................................................................      $ 65,041             $ 40,614
     Interest-bearing ....................................................................       287,026              287,560
                                                                                                --------             --------
         Total deposits ..................................................................       352,067              328,174
SECURITIES SOLD UNDER REPURCHASE
     AGREEMENTS ..........................................................................        32,562               35,331
FEDERAL FUNDS PURCHASED ..................................................................           400                    0
NOTES PAYABLE TO FEDERAL HOME LOAN BANK ..................................................         5,000               17,000
ACCRUED INTEREST PAYABLE .................................................................         1,476                1,575
OTHER LIABILITIES ........................................................................         1,606                1,295
                                                                                                --------             --------
         Total Liabilities ...............................................................       393,111              383,375
                                                                                                --------             --------
SHAREHOLDERS' EQUITY
Common Stock - 10,000,000 shares authorized, $1.67
     Par value per share, 3,507,911 shares outstanding,
       respectively ......................................................................         5,858                5,858
Additional paid-in capital ...............................................................        25,758               25,758
Retained Earnings ........................................................................         1,858                  446
Accumulated other comprehensive income ...................................................           594                  685
                                                                                                --------             --------
         Total Shareholders' Equity ......................................................        34,068               32,747
                                                                                                --------             --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ...............................................      $427,179             $416,122
                                                                                                ========             ========
</TABLE>



                                       2
<PAGE>


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

<TABLE>
<CAPTION>
                                                                                                                (Unaudited)
                                                                                                              Three Months Ended
                                                                                                                  March 31,
                                                                                                                  ---------
                                                                                                        2003                    2002
                                                                                                        ----                    ----
INTEREST INCOME
<S>                                                                                               <C>                     <C>
   Interest and fees on loans ......................................................              $    4,527              $    4,379
   Interest on securities
       Taxable .....................................................................                     730                     465
       Tax-exempt ..................................................................                      42                      37
   Interest on federal funds .......................................................                      26                      59
                                                                                                  ----------              ----------
Total interest income ..............................................................                   5,325                   4,940
                                                                                                  ----------              ----------

INTEREST EXPENSE
   Interest on deposits ............................................................                   1,728                   1,531
   Interest on federal funds purchased and securities
       sold under repurchase agreements ............................................                     133                     124
Interest on notes payable Federal Home Loan Bank ...................................                      75                      71
                                                                                                  ----------              ----------
Total interest expense .............................................................                   1,936                   1,726
                                                                                                  ----------              ----------

Net interest income ................................................................                   3,389                   3,214

PROVISION FOR LOAN LOSSES ..........................................................                     129                     313
                                                                                                  ----------              ----------

Net interest income after provision for loan losses ................................                   3,260                   2,901

NON-INTEREST INCOME
   Service fees and other income ...................................................                     622                     523
   Mortgage banking ................................................................                   2,111                     879
    Gain on sale of available for sale securities ..................................                       1                       0
                                                                                                  ----------              ----------
                                                                                                       2,734                   1,402
NON-INTEREST EXPENSES
   Salaries and benefits ...........................................................                   2,053                   1,484
   Occupancy .......................................................................                     149                     123
   Equipment .......................................................................                     252                     152
   Marketing and advertising .......................................................                      64                      74
   Communications ..................................................................                      63                      58
   Printing and supplies ...........................................................                      65                      53
   Bank paid loan costs ............................................................                     114                     154
   Other operating expenses ........................................................                     634                     410
                                                                                                  ----------              ----------
             Total noninterest expenses ............................................                   3,394                   2,508
                                                                                                  ----------              ----------
   Income before income taxes ......................................................                   2,600                   1,795

PROVISION FOR INCOME TAXES .........................................................                     943                     645
                                                                                                  ----------              ----------

   Net income ......................................................................              $    1,657              $    1,150
                                                                                                  ==========              ==========

INCOME PER COMMON SHARE:
   BASIC ...........................................................................              $     0.47              $     0.33
                                                                                                  ==========              ==========
   DILUTED .........................................................................              $     0.46              $     0.32
                                                                                                  ==========              ==========

WEIGHTED AVERAGE COMMON SHARES:
   BASIC ...........................................................................               3,507,911               3,495,039
                                                                                                  ==========              ==========
   DILUTED .........................................................................               3,631,417               3,602,011
                                                                                                  ==========              ==========

DIVIDENDS PAID PER COMMON SHARE ....................................................              $     0.07              $     0.05
                                                                                                  ==========              ==========
</TABLE>


                                       3
<PAGE>


                 Peoples Bancorporation, Inc. and Subsidiaries
           Consolidated Statements of Changes in Shareholders' Equity
               for the three months ended March 31, 2002 and 2003

                    (Dollars 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, 2001 * ...............   3,328,609    $    5,559    $   22,786     $       32    $       174     $     28,551
Net Income .................................                                                  1,150                           1,150
Other comprehensive income, net of tax:
   Unrealized holding losses on
   securities available for sale ...........                                                                   (167)           (167)
   Less reclassification
   adjustments for gains
   included in net income ..................                                                                      0               0
                                                                                                                        -----------
Comprehensive income .......................                                                                                    983
Cash Dividends .............................                                                   (167)                           (167)
Proceeds from stock options ................           0             0           0                                                0
                                             -----------    ----------    ----------     ----------   -------------    ------------
Balance, March 31, 2002 ....................   3,328,609     $   5,559    $   22,786     $    1,015   $           7    $     29,367
                                             ===========    ==========    ==========     ==========   =============    ============

Balance, December 31, 2002 * ...............   3,507,911    $    5,858    $   25,758     $      446   $         685    $     32,747
Net Income                                                                                    1,657                           1,657
Other comprehensive income, net of tax:
   Unrealized holding losses on
   securities available for sale ...........                                                                   (91)             (91)
   Less reclassification
   adjustments for gains
   included in net income ..................                                                                      0               0
                                                                                                                        -----------
Comprehensive income .......................                                                                                  1,566
Cash Dividends .............................                                                   (245)                           (245)
Proceeds from stock options ................           0             0             0                                              0
                                             -----------    ----------    ----------     ----------   -------------    ------------
Balance, March 31, 2003 ....................   3,507,911    $    5,858    $   25,758     $    1,858   $         594    $     34,068
                                             ===========    = ========    ==========     ==========   =============    ============
</TABLE>

* Share data has been restated to reflect 5% stock  dividends  issued in January
2002 and November 2002.



                                       4
<PAGE>


                  Peoples Bancorporation, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                                                 (Unaudited)
                                                                                                            Three months Ended
                                                                                                                  March 31,
                                                                                                                  ---------
                                                                                                         2003                 2002
                                                                                                         ----                 ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                                                 <C>                   <C>
   Net Income ..........................................................................            $   1,657             $   1,150
   Adjustments to reconcile net income to net cash provided
     by (used in) operating activities
   Gain on sale of premises and equipment ..............................................                  (13)                    0
   Gain on sale of securities available for sale .......................................                   (1)                    0
   Provision for loan losses ...........................................................                  129                   313
   Depreciation and amortization .......................................................                  210                   144
   Amortization and accretion (net) of premiums and
     discounts on securities ...........................................................                   78                    11
    Origination of mortgage loans held for sale ........................................             (117,650)              (85,234)
    Sale of mortgage loans held for sale ...............................................              128,533               104,228
   (Increase) decrease in accrued interest receivable ..................................                  102                    (9)
   (Increase) decrease in other assets .................................................                 (164)                   36
   Decrease in accrued interest payable ................................................                  (99)                  (57)
   Increase in other liabilities .......................................................                  373                   390
                                                                                                    ---------             ---------
     Net cash provided by (used in) operating activities ...............................               13,155                20,972
                                                                                                    ---------             ---------

CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of securities available for sale ..........................................              (21,896)              (11,900)
   Purchase of other investments .......................................................                 (195)                  (68)
   Proceeds from the maturity of securities held to maturity ...........................                  275                 1,310
   Proceeds from the sale of securities available for sale .............................                1,000                     0
   Proceeds from the call of securities available for sale .............................               21,150                 1,000
   Proceeds from principal pay downs ...................................................                3,463                   575
   Net increase in loans ...............................................................              (15,096)               (6,626)
   Proceeds from the sale of premises and equipment ....................................                   39                     0
   Purchase of premises and equipment ..................................................                 (244)                 (422)
                                                                                                    ---------             ---------
     Net cash used in investing activities .............................................              (11,504)              (16,131)
                                                                                                    ---------             ---------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase in deposits ............................................................               23,893                30,384
   Net increase (decrease) in securities sold under repurchase
     agreements ........................................................................               (2,769)                2,969
    Net increase in Federal funds purchased ............................................                  400                     0
   Net decrease in notes payable Federal Home Loan Bank ................................              (12,000)              (18,985)
   Cash dividend .......................................................................                 (245)                 (167)
                                                                                                    ---------             ---------
     Net cash provided by financing activities .........................................                9,279                14,201
                                                                                                    ---------             ---------
     Net increase in cash and cash equivalents .........................................               10,930                19,042
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ...........................................               12,142                12,426
                                                                                                    ---------             ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD ...............................................            $  23,072             $  31,468
                                                                                                    =========             =========

CASH PAID FOR
     Interest ..........................................................................            $   2,035             $   1,717
                                                                                                    =========             =========
     Income Taxes ......................................................................            $     492             $     140
                                                                                                    =========             =========
</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 2002 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 $0.07 per common share to
shareholders of record March 21, 2003 payable April 4, 2003.

     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 three
months ended March 31, 2003 and 2002 was 3,507,911 and 3,495,039,  respectively.
The weighted average number of common shares  outstanding for diluted net income
per common share was  3,631,417  and  3,602,011 for the three months ended March
31, 2003 and 2002.

      The following table  illustrates the effect on net income and earnings per
share if the  Company  had  applied  the fair value  recognition  provisions  of
Financial  Accounting Standards Board ("FASB") Statement of Financial Accounting
Standards  ("SFAS")  No.  123,  Accounting  for  Stock-Based  Compensation,   to
stock-based employee compensation.

                                                        Quarter ended March 31,
                                                           2003          2002
                                                           ----          ----

Net income, as reported ............................   $      1,657  $    1,150
Deduct:  total stock-based employee compensation
  expense determined under fair value based method
  for all awards, Net of related tax effects .......            (11)        (15)
                                                       ------------   ---------
Pro forma net income ...............................   $      1,646  $    1,135
                                                       ============   =========
Net income per common share
  Basic - as reported ..............................   $       0.47   $    0.33
                                                       ============   =========
  Basic - pro forma ................................   $       0.47   $    0.32
                                                       ============   =========
  Diluted - as reported ............................   $       0.46   $    0.32
                                                       ============   =========
  Diluted - pro forma ..............................   $       0.45   $    0.32
                                                       ============   =========


      The Company  issued a  five-percent  common stock dividend in January 2002
and November  2002.  Per share data in 2002 has been  restated to reflect  these
transactions.


                                       6
<PAGE>

MANAGEMENT'S OPINION

     The accompanying unaudited financial statements of Peoples  Bancorporation,
Inc. have been  prepared in  accordance  with  accounting  principles  generally
accepted 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 notes required by accounting  principles  generally  accepted 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 2002
Annual  Report  of  Peoples  Bancorporation,  Inc.  on  Form  10-K.  Results  of
operations for the three-month  period ending March 31, 2003 are not necessarily
indicative of the results to be attained for any other period.

Critical Accounting Policies

         The Company has adopted  various  accounting  policies  that govern the
application of accounting  principles generally accepted in the United States in
the  preparation  of  the  Company's  financial   statements.   The  significant
accounting  policies  of the  Company  are  described  in Item 8,  Note 1 to the
Consolidated   Financial  Statements  in  the  2002  Annual  Report  of  Peoples
Bancorporation, Inc. on Form 10-K.

         Certain   accounting   policies  involve   significant   judgments  and
assumptions by management  that have a material  impact on the carrying value of
certain assets and liabilities; management considers such accounting policies to
be  critical  accounting  policies.   The  judgments  and  assumptions  used  by
management  are based on  historical  experience  and other  factors,  which are
believed to be reasonable under the circumstances.  Because of the nature of the
judgments and assumptions  made by management,  actual results could differ from
these  judgments and estimates that could have a material impact on the carrying
values of assets and liabilities and the results of operations of the Company.

         Of these  significant  accounting  policies,  the Company considers its
policies  regarding the allowance  for loan losses (the  "Allowance")  to be its
most  critical  accounting  policy due to the  significant  degree of management
judgment  involved in determining  the amount of the Allowance.  The Company has
developed  policies and  procedures for assessing the adequacy of the Allowance,
recognizing  that this process  requires a number of  assumptions  and estimates
with respect to its loan portfolio. The Company's assessments may be impacted in
future  periods by  changes in  economic  conditions,  the impact of  regulatory
examinations,  and the discovery of information with respect to borrowers, which
is not  known to  management  at the time of the  issuance  of the  consolidated
financial statements.  Refer to the discussion under Provision and Allowance for
Loan Losses, Loan Loss Experience section of the Company's 2002 Annual Report on
Form 10-K and the  Allowance  for Loan  Losses  and  Provision  for Loan  Losses
sections of this report on Form 10-Q for a detailed description of the Company's
estimation process and methodology related to the allowance for loan losses.

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


                                       8
<PAGE>

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

       The  Company  is  a  bank  holding   company   with  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 first  quarter of 2003 was
$1,657,000  or $0.46 per  diluted  share  compared  to  $1,150,000  or $0.32 per
diluted  share for the first  quarter of 2002, an increase of $507,000 or 44.1%.
Return on average  equity for the three  months  ended March 31, 2003 was 20.46%
compared to 16.13% for the three months ended March 31, 2002.  Return on average
assets for the three months ended March 31, 2003 was 1.60% compared to 1.47% for
the three months  ended March 31,  2002.  The  increases  in the  Company's  net
income,  earnings per fully diluted share,  return on average equity, and return
on  average  assets  in 2003  are  attributable  to  increased  earnings  at the
Company's bank subsidiaries.  The Peoples National Bank recorded net earnings of
$1,243,000 for the three months ended March 31, 2003 compared to net earnings of
$859,000 for the three  months ended March 31, 2002,  an increase of $384,000 or
44.7%.  Bank of Anderson,  N. A. recorded net earnings of $300,000 for the three
months  ended March 31, 2003  compared to net earnings of $210,000 for the three
months ended March 31, 2002,  an increase of $90,000 or 42.9%.  Seneca  National
Bank recorded net earnings of $123,000 for the three months ended March 31, 2003
compared to net  earnings of $77,000 for the three  months ended March 31, 2002,
an increase  of $46,000 or 59.7%.  Earnings  in the Banks are  presented  before
inter-bank elimination entries.

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 $175,000 or 5.4% to $3,389,000 for the quarter ended March
31,  2003  compared to  $3,214,000  for the quarter  ended March 31,  2002.  The
increases  in the net interest  income  resulted  primarily  from an increase in
interest income  attributable  to a larger volume of interest  earning assets in
the 2003 period.  The  Company's  net interest  margin was 3.47% for the quarter
ended March 31, 2003 compared to 4.39% for the quarter ended March 31, 2002.

     The  Company's  total  interest  income  for the first  quarter of 2003 was
$5,325,000  compared to $4,940,000 for the first quarter of 2002, an increase of
$385,000 or 7.8%.  Interest  and fees on loans,  the largest  component of total
interest income,  increased  $148,000 in the first quarter of 2003 to $4,527,000
compared to $4,379,000  for the first quarter of 2002, an increase of 3.4%.  The


                                       10
<PAGE>

increase  in  interest  and fees on loans is  attributable  to a larger  base of
outstanding loans and mortgage loans held for sale for the first quarter of 2003
when compared to the same period in 2002.  Interest income on taxable investment
securities  increased  $265,000,  or 56.99% to $730,000 in the 2003 period, as a
result of an increase in the volume of outstanding taxable securities.

     The  Company's  total  interest  expense for the first  quarter of 2003 was
$1,936,000  compared to $1,726,000 for the first quarter of 2002, an increase of
$210,000 or 12.2%. Interest expense on deposits,  the largest component of total
interest expense,  increased $197,000 in the first quarter of 2003 to $1,728,000
compared  to  $1,531,000  for the first  quarter of 2002,  an increase of 12.9%.
Interest  on federal  funds  purchased  and  securities  sold  under  repurchase
agreements,  the second largest component of total interest  expense,  increased
$9,000 or 7.3% to $133,000 in the first quarter of 2003 compared to $124,000 for
the first  quarter of 2002.  Interest on notes  payable to the Federal Home Loan
Bank, the third largest component of total interest expense, increased $4,000 or
5.6% to $75,000 in the first  quarter of 2003  compared  to $71,000 for the same
period of 2002. The increase in interest expense among each of deposits, federal
funds  purchased and  securities  sold under  repurchase  agreements,  and notes
payable to the Federal Home Loan Bank for the three-months ending March 31, 2003
is largely attributable to higher average balances in those types of accounts.

Provision for Loan Losses

      The  Company's  provision  for loan losses  during the three  months ended
March 31, 2003 was  $129,000  compared to $313,000  for the three  months  ended
March 31, 2002, a decrease of $184,000 or 58.8%.  The decrease in the  Company's
provision for loan losses for the first quarter of 2003 is based on management's
evaluation  of the  Company's  overall  credit  quality and its estimate of loan
losses  inherent in the loan  portfolio.  During the first quarter of 2003,  The
Peoples  National  Bank made  provision  of $75,000  compared  to  provision  of
$250,000 in the first quarter of 2002. Bank of Anderson, N. A. made provision of
$30,000 for the first quarter of 2003, compared to $40,000 for the first quarter
of 2002. Seneca National Bank made provision of $24,000 during the first quarter
of 2003, compared to $23,000 for the first quarter of 2002.

Non-interest Income

     Non-interest  income  increased  $1,331,000 or 95.0% to $2,734,000  for the
first quarter of 2003 compared to $1,402,000  for the first quarter of 2002. The
increase in  non-interest  income  resulted  largely from a $1,232,000 or 140.2%
increase in fees  associated  with the  origination of residential  mortgages to
$2,111,000  for the quarter  ended March 31, 2003,  compared to $879,000 for the
quarter  ended March 31,  2002.  A $99,000 or 18.9%  increase in service fees on
deposits also  contributed  to the increase in  non-interest  income.  A gain of
$1,000 was  realized  on the sale of  available-for-sale  securities  during the
first  quarter of 2003.  No gain or loss was realized on the sale of  securities
during the first three months of 2002.



                                       11
<PAGE>

Non-interest Expense

     Total  non-interest  expense increased  $886,000 or 35.3% to $3,394,000 for
the  first  quarter  of 2003 from  $2,508,000  for the  first  quarter  of 2002.
Salaries and benefits, the largest component of non-interest expense,  increased
$569,000 or 38.3% to $2,053,000  for the first  quarter of 2003 from  $1,484,000
for the first  quarter  of 2002.  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.  Occupancy
expense  increased  $26,000 or 21.1% to  $149,000  in the first  quarter of 2003
compared  to  $123,000 in the first  quarter of 2002.  The  increase in building
expense is partially  attributable to the opening of a new mortgage  origination
office in Greenville, South Carolina by Peoples National Bank. Equipment expense
increased $100,000 or 65.8% to $252,000 in the first quarter of 2003 compared to
$152,000  in the first  quarter  of 2002.  The  increase  is due  largely to the
depreciation  and other  expenses  associated  with the conversion to a new data
processing  system  during the third  quarter  of 2002.  The  increase  in other
non-interest  expense items  resulted from continued  growth  experienced by the
Company during the period.

BALANCE SHEET REVIEW

Loans

         Outstanding  loans  (which  excludes  mortgage  loans  held  for  sale)
represent  the largest  component  of earning  assets at 66.3% of total  earning
assets.  As of March 31, 2003, the Company held total gross loans outstanding of
$265,536,000.  Gross loans  increased  $15,049,000 or 6.0% from  $250,487,000 in
total gross loans outstanding at December 31, 2002 and increased  $46,075,000 or
21.0% from  $219,461,000 in total gross loans outstanding at March 31, 2002. The
increase  resulted  from new loans  generated  by the  Company's  three  banking
subsidiaries.  The following table  summarizes  outstanding  loans by collateral
type.

<TABLE>
<CAPTION>
                                                                                               March 31,              December 31,
                                                                                               ---------              ------------
Loan Portfolio Composition                                                               2003            2002             2002
                                                                                         ----            ----             ----

<S>                                                                                   <C>             <C>                <C>
Commercial  and  Industrial  - not  secured  by  real estate ..............           $ 36,071        $ 28,156           $ 35,548
Commercial and Industrial - secured by real estate ........................             77,331          47,578             72,600
Residential real estate - mortgage ........................................             76,208          75,206             69,579
Residential real estate - construction ....................................             54,521          45,109             48,452
Consumer loans ............................................................             21,405          23,192             24,308
                                                                                      --------        --------           --------
     Gross Loans ..........................................................           $265,536        $251,173           $250,487
                                                                                      ========        ========           ========
</TABLE>

     The interest  rates charged on loans vary with the degree of risk,  time to
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 three months ended March 31,
2003 was 6.00%  compared to 7.44% for the three  months  ended  March 31,  2002.
Approximately 49.3% of the Company's loans are tied to the prime interest rate.

                                       12
<PAGE>

     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 March 31, 2003 the Company held
$44,143,000  of mortgage loans held for sale compared to $55,026,000 at December
31, 2002 and $21,931,000 at March 31, 2002. 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 March 31,
2003 the Company  originated  $117,650,000 and sold  $128,533,000 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 loan
portfolio.  Commercial loans are made on either a secured or an unsecured basis.
When taken,  security  usually  consists of liens on  inventories,  receivables,
equipment,  furniture,  and fixtures.  Unsecured  commercial loans are generally
short-term with emphasis on repayment strengths and low debt-to-worth ratios. At
March 31,  2003  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 March 31, 2003 was  $2,932,000 or 1.10% of
loans  outstanding  (which  excludes  mortgage  loans held for sale) compared to
$2,850,000 or 1.14% of loans  outstanding at December 31, 2002 and to $2,587,000
or 1.18% of loans  outstanding  at March 31, 2002. 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


                                       13
<PAGE>

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 March 31, 2003 the  Company  had  $662,000  in  non-accruing  loans,  no
restructured  loans,  $303,000 in loans more than ninety days past due and still
accruing  interest,  and $229,000 in other real estate  owned.  This compares to
$926,000 in non-accruing loans, no restructured loans, $5,000 in loans more than
ninety days past due on which interest was still being accrued,  and $193,000 in
other real estate owned at December 31, 2002. At March 31, 2002, the Company had
$789,000 in non-accruing loans, no restructured loans, no loans more than ninety
days past due and still  accruing  interest,  and  $723,000 in other real estate
owned. Non-performing loans at March 31, 2003 consisted of $26,000 in commercial
loans, $619,000 in mortgage loans, and $17,000 in consumer loans. Non-performing
assets as a percentage  of loans and other real estate  owned was 0.39%,  0.37%,
and  0.64%  at  March  31,  2003,   December  31,  2002,  and  March  31,  2002,
respectively.

     Net  charge-offs  during the three months ended March 31, 2003 were $48,000
compared  to net  charge-offs  of $14,000 for the three  months  ended March 31,
2002. The allowance for loan losses as a percentage of non-performing  loans was
304%,  306%,  and 328% as of March 31, 2003,  December  31, 2002,  and March 31,
2002, respectively.

         The  Company  accounts  for  impaired  loans  in  accordance  with  the
provisions  of  Statement  of  Financial   Accounting  Standards  ("SFAS")  114,
Accounting  by Creditors for  Impairment of a Loan.  SFAS No. 114, as amended by
SFAS No. 118,  requires  that  impaired  loans be measured  based on the present
value of  expected  future  cash flows or the  underlying  collateral  values as
defined in the  pronouncement.  The Company  includes the provisions of SFAS NO.
114, if any, in the allowance for loan losses. When the ultimate  collectability
of an impaired  loan's  principal  is in doubt,  wholly or  partially,  all cash
receipts are then  applied to  principal.  At each of March 31, 2003,  March 31,
2002, and December 31, 2002 the Company had no impaired loans.

Securities

         The Company  invests  primarily in  obligations of the United States or
obligations  guaranteed as to principal and interest by the United States, other
taxable securities, and in certain obligations of states and municipalities. The
Company  does not  invest  in  corporate  bonds  nor  does it hold  any  trading
securities.  The Company uses its investment  portfolio to provide liquidity for
unexpected  deposit  liquidation  or  loan  generation,  to meet  the  Company's
interest rate  sensitivity  goals,  to secure public  deposits,  and to generate
income. At March 31, 2003 securities totaled $82,157,000, which represents 20.5%
of  total  earning  assets.   Securities   decreased  $4,013,000  or  4.7%  from
$86,170,000 invested as of December 31, 2002 and increased  $37,844,000 or 85.4%
from $44,313,000 invested as of March 31, 2002. The increase in securities, when
comparing  March 31,  2003 to March 31,  2002,  is  primarily  the result of the
investment  of excess  liquidity  resulting  from an increase in deposits at the


                                       14
<PAGE>

Company's  bank  subsidiaries.  The decrease  when  comparing  March 31, 2003 to
December  31,  2002 is largely the result of  declining  interest  rates,  U. S.
Government  agencies  called  prior to the  stated  maturities  and  prepayments
associated with mortgage-backed securities accelerated.

         At March  31,  2003  the  Company's  total  investments  classified  as
available for sale had an amortized  cost of  $74,633,000  and a market value of
$75,533,000  for an unrealized  gain of $900,000.  This compares to an amortized
cost of $39,658,000  and a market value of $39,668,000 for an unrealized gain of
$10,000 on the Company's  investments  classified as available for sale at March
31, 2002. At December 31, 2002 the  Company's  total  investments  classified as
available for sale had an amortized  cost of  $79,125,000  and a market value of
$80,163,000 for an unrealized gain of $1,038,000.

Cash and Cash Equivalents

         The Company's cash and cash equivalents  increased $10,930,000 or 90.0%
to  $23,072,000  at March 31, 2003 from  $12,142,000  at  December  31, 2002 and
decreased  $8,396,000 or 26.7% from $31,468,000 at March 31, 2002. The swings in
the level of cash and cash  equivalents  are due to  fluctuations  in the Banks'
need for immediate liquidity.

Deposits

         The  Banks'  primary  source  of funds for  loans  and  investments  is
deposits.  Total deposits grew  $23,893,000 or 7.3% to $352,067,000 at March 31,
2003 from  $328,174,000  at December 31,  2002,  and  $84,880,000  or 31.8% from
$267,187,000 at March 31, 2002. The increase resulted from deposits 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 three months ended March 31, 2003, interest-bearing deposits
averaged $289,092,000 compared to $216,275,000 for the same period of 2002. 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.  There were no Internet or brokered  deposits at March 31, 2003.  At
December 31, 2002 Internet  certificates of deposit  totaled  $990,000 and there
were no  brokered  deposits.  At  March  31,  2002  Peoples  National  Bank  had
$8,960,000  in  Internet  certificates  of deposit  and  $8,400,000  in brokered
deposits.

         The average interest rate paid on  interest-bearing  deposits was 2.42%
during the three  months  ended  March 31,  2003  compared to 2.87% for the same
period of 2002. In pricing deposits,  the Company considers its liquidity needs,
the  direction and levels of interest  rates,  and local market  conditions.  At
March 31,  2003  interest-bearing  deposits  comprised  81.5% of total  deposits
compared to 85.7% at March 31, 2002.



                                       15
<PAGE>

         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 80.3% and 75.5% for the three months ended March 31, 2003 and 2002
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 March  31,  2003
short-term  borrowings  totaled  $32,962,000  and were  comprised of $400,000 in
Federal Funds  Purchased and  $32,562,000  in securities  sold under  repurchase
agreements.  At December 31, 2002 short-term  borrowings totaled $35,331,000 and
were comprised entirely of securities sold under repurchase agreements. At March
31, 2002 short-term  borrowings totaled  $23,615,000 and were comprised entirely
of securities sold under repurchase  agreements.  Short-term borrowings are used
primarily  for the  immediate  cash needs of the  Company.  The Company also had
$5,000,000  of long-term  advances from the Federal Home Loan Bank of Atlanta at
each of March 31, 2003, December 31, 2002, and March 31, 2002.

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 March 31, 2003, The Peoples  National
Bank had total  secured  borrowing  capacity  from the Federal Home Loan Bank of
Atlanta equal to $13,850,000.  The unused portion of this secured line of credit
was $850,000 at April 30, 2003.  Peoples  National Bank has made an  application
with the Federal  Home Loan Bank of Atlanta  for an  additional  $19,360,000  in
secured borrowings.  If this application is approved,  the additional borrowings
will be secured by a blanket lien on Peoples  National  Bank's home equity lines
of credit  and  commercial  real  estate  loans.  The  Company's  other two bank
subsidiaries, Bank of Anderson and Seneca National Bank, each have secured lines
of credit with the Federal Home Loan Bank at March 31, 2003 of  $12,208,000  and
$3,493,0000,  respectively, all of which is unused. At March 31, 2003, the Banks
had unused  federal  funds  lines of credit  with  various  correspondent  banks
totaling $19,050,000.

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

                                       16
<PAGE>

         The Company will have certain  capital  expenditures  that will be made
during 2003. The Company began  incurring  costs for these  projects  during the
fourth  quarter of 2002.  These  include the  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  expects  to fund  these
expenditures with internally  generated funds. 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
March 31, 2003, the Banks had issued commitments to extend credit of $65,415,000
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. 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  $4,202,000 at
March 31, 2003. 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. Moreover, the fair value associated with any
standby letters of credit issued by the Company is immaterial to the Company.

         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.  The
Company  did not have  any  obligations  under  non-cancelable  operating  lease
agreements at March 31, 2003.




                                       17
<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 Company and the Banks are  required  to  maintain  certain  capital
ratios by federal banking regulators. The following table sets forth the capital
ratios for the Company and the Banks as of March 31, 2003:


                                 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 ...............         $36,405           12.56%      $30,212           10.00%      $24,169           8.00%
Tier 1 Risk-based Capital ..............          33,474           11.08        18,127            6.00        12,084           4.00
Leverage Ratio .........................          33,474            7.97        21,000            5.00        16,800           4.00

Peoples National Bank:
Total Risk-based Capital ...............         $21,591           11.52%      $18,742           10.00%      $14,994           8.00%
Tier 1 Risk-based Capital ..............          19,787           10.56        11,243            6.00         7,495           4.00
Leverage Ratio .........................          19,787            7.85        12,603            5.00        10,083           4.00

Bank of Anderson, N. A:
Total Risk-based Capital ...............         $ 9,090           11.53%      $ 7,884           10.00%      $ 6,307           8.00%
Tier 1 Risk-based Capital ..............           8,315           10.55         4,729            6.00         3,153           4.00
Leverage Ratio .........................           8,315            6.29         6,610            5.00         5,288           4.00

Seneca National Bank:
Total Risk-based Capital ...............         $ 4,088           11.59%      $ 3,527           10.00%      $ 2,822           8.00%
Tier 1 Risk-based Capital ..............           3,736           10.60         2,115            6.00         1,410           4.00
Leverage Ratio .........................           3,736            8.12         2,300            5.00         1,840           4.00
</TABLE>





                                       18
<PAGE>


Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
         MARKET RISK

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

         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 next twelve  months.  At March 31, 2003,  on a cumulative  basis
through 12 months,  rate-sensitive liabilities exceeded rate-sensitive assets by
$105,829,000.  This liability-sensitive  position is largely attributable to the
Company's  short-term  Certificates  of Deposit,  Money Market  accounts and NOW
accounts, which totaled $117,862,000, $64,857,000 and $36,445,000, respectively,
at March 31, 2003, and which may reprice or mature within one year.






                                       19
<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.







                                       20
<PAGE>



PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits.

          None

     (b)  Reports on Form 8-K.

          Peoples Bancorporation,  Inc. filed a Current Report on Form 8-K dated
          April  17,  2003,  pursuant  to Item 9 of that Form  with  respect  to
          information provided pursuant to Item 12 of that Form.



                                       21
<PAGE>



SIGNATURES

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


                                  PEOPLES BANCORPORATION, INC.


Dated:  May 6, 2003               By:    /s/ Robert E. Dye, Sr.
                                       ------------------------
                                         Robert E. Dye, Sr.
                                         President and Chairman of the Board


Dated:  May 6, 2003               By:   /s/ William B. West
                                      ---------------------
                                         William B. West
                                         Sr. Vice President & CFO
                                         (principal financial officer)




                                       22
<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  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:  May 6, 2003                  By:    /s/ Robert E. Dye, Sr.
                                          ------------------------
                                            Robert E. Dye, Sr.
                                            President and Chairman of the Board



<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  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:  May 6, 2003                    By:   /s/ William B. West
                                           ---------------------
                                              William B. West
                                              Sr. Vice President & CFO
                                              (principal financial officer)