11-K 1 0001.txt PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN MARIETTA, OHIO FINANCIAL STATEMENTS DECEMBER 31, 1999 SIGNATURES =========== The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN Date: June 13, 2000 By: /s/ ROBERT E. EVANS Robert E. Evans President and Chief Executive Officer PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN DECEMBER 31, 1999
TABLE OF CONTENTS STATEMENT PAGE Independent Auditors' Report 1 Statement of Net Assets Available for Benefits with Fund Information at December 31, 1999 I 2 Statement of Net Assets Available for Benefits with Fund Information at December 31, 1998 II 3 Statement of Changes in Net Assets Available for Benefits with Fund Information for the Year Ended December 31, 1999 III 4 Statement of Changes in Net Assets Available for Benefits with Fund Information for the Year Ended December 31, 1998 IV 5 Notes to Financial Statements 6-12 SUPPLEMENTAL INFORMATION SCHEDULE Schedule of Assets Held for Investment Purposes at End of Year A 14 Schedule of Reportable Transactions B 15 Index to Exhibits 16 Consent of Independent Auditors 17
Harman, Thompson, Mallory & Ice, A.C. [Letterhead] INDEPENDENT AUDITORS' REPORT To the Plan Administrative Committee Peoples Bancorp Inc. Retirement Savings Plan Marietta, Ohio We have audited the accompanying statements of net assets available for benefits with fund information of Peoples Bancorp Inc. Retirement Savings Plan as of December 31, 1999 and 1998, and the related statements of changes in net assets available for benefits with fund information for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits with fund information of Peoples Bancorp Inc. Retirement Savings Plan as of December 31, 1999 and 1998, and the changes in net assets available for benefits with fund information for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included in Schedule A - Assets Held for Investment Purposes at End of Year and Schedule B - Reportable Transactions together referred to as "Supplemental Information" is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan's management. The supplemental information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /S/ HARMAN, THOMPSON, MALLORY & ICE, A.C. Harman, Thompson, Mallory & Ice, A.C. Parkersburg, West Virginia May 11, 2000
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1999 STATEMENT I PARTICIPANT DIRECTED PEOPLES PEOPLES BANCORP CERTIFICATES INC. PEOPLES VANGUARD PEOPLES OF COMMON SPECIAL VANGUARD ASSET TEMPLETON BANK EQUITY DEPOSIT STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL ASSETS Money Market Funds Fidelity U.S. Treasury Income Portfolio Fund $ 4,650 $ 8,280 $ 38,130 $ 10,420 $ 6,950 $ 11,560 $ 3,650 $ 470 $ 11,610 $ 1,020 $ 96,740 Investments, at Fair Value Peoples Certificates of Deposit 953,761 953,761 Shares of Common/ Collective Trusts: Peoples Stock Fund EB 1,536,878 1,536,878 Peoples Special Stock Fund EB 583,617 583,617 Shares of Registered Investment Companies: Acorn Fund 672,269 672,269 Templeton Foreign Fund 46,749 46,749 Vanguard 500 Index Fund 1,140,379 1,140,379 Vanguard Asset Allocation Fund 352,767 352,767 Common stock: Bank One Corporation 172,736 172,736 Peoples Bancorp Inc. 4,774,806 4,774,806 Participant Loans Receivable 261,412 261,412 --------- -------- ---------- --------- -------- ---------- --------- ------- -------- -------- ----------- TOTAL INVESTMENTS $1,541,528 $962,041 $4,812,936 $ 594,037 $679,219 $1,151,939 $ 356,417 $47,219 $184,346 $262,432 $10,592,114 --------- -------- ---------- --------- -------- ---------- --------- ------- -------- -------- ----------- Cash, Non-Interest Bearing $ 9 $ 8 $ -0- $ 8 $ -0- $ 7 $ 10 $ 4 $ 3 $ 7 $ 56 --------- -------- ---------- -------- -------- ---------- -------- -------- -------- -------- ----------- Receivables: Employer's Contribution $ 2 $ $ 3 $ 2 $ 1 $ 1 $ $ $ $ $ 9 Participants' Contribution 15 34 19 15 14 97 Interest and Dividends 4,025 8,488 31,285 2,525 68 216 36 2 2,317 2 48,964 Interfund Transfers Pending 277 33 94 264 14 23 6 (9) 4 (706) -0- -------- -------- ---------- -------- ------- -------- -------- -------- -------- -------- -------- TOTAL RECEIVABLES $ 4,319 $ 8,521 $ 31,416 $ 2,810 $ 98 $ 254 $ 42 $ (7) 2,321 (704) $ 49,070 --------- -------- ---------- -------- ------- --------- -------- -------- -------- -------- ---------- TOTAL ASSETS $1,545,856 970,570 4,844,352 $ 596,855 $679,317 $1,152,200 $356,469 $ 47,216 $186,670 $261,735 $10,641,240 ---------- -------- ---------- -------- -------- --------- ------- -------- -------- -------- ---------- LIABILITIES Excess Contribution Payable $ 56 $ 3,384 $ 453 $ 248 $ 235 $ $ 426 $ $ $ $ 4,802 --------- --------- ---------- -------- ------- ---------- ------- -------- -------- -------- --------- TOTAL LIABILITIES $ 56 $ -0- $ 3,384 $ 453 $ 248 $ 235 $ -0- $ 426 $ -0- $ -0- $ 4,802 --------- --------- ---------- -------- -------- ---------- ------- -------- -------- -------- --------- NET ASSETS AVAILABLE FOR BENEFITS $1,545,800 $970,570 $4,840,968 $ 596,402 $ 679,069 $1,151,965 $356,469 $ 46,790 $186,670 $261,735 $10,636,438 ========== ======== ========== ========= ========= ========== ======== ======== ======== ======== =========== The accompanying notes are an integral part of these financial statements.
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1998 PARTICIPANT DIRECTED STATEMENT II PEOPLES PEOPLES BANCORP CERTIFICATES INC. PEOPLES VANGUARD PEOPLES OF COMMON SPECIAL VANGUARD ASSET TEMPLETON BANK EQUITY DEPOSIT STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL ASSETS Money Market Funds Fidelity U.S. $ 61,840 $ 44,940 $ 61,570 $ 28,860 $ $ 2,160 $ 1,850 $ $ $ 450 $ 201,670 Treasury Income Portfolio Fund Investments, at Fair Value Peoples Certificates of Deposit 424,404 424,404 Shares of Common/ Collective Trusts: Peoples Stock Fund EB 1,570,703 1,570,703 Peoples Special Stock Fund EB 482,901 482,901 Shares of Registered Investment Companies: Acorn Fund 483,233 483,233 Templeton Foreign Fund 27,751 27,751 Vanguard 500 Index Fund 802,784 802,784 Vanguard Asset Allocation Fund 194,336 194,336 Common stock: Bank One Corporation 390,530 390,530 Peoples Bancorp Inc. Participant Loans 4,973,585 4,973,585 Receivable 279,854 279,854 --------- -------- ---------- --------- -------- ---------- -------- -------- -------- -------- ----------- TOTAL INVESTMENTS $1,632,543 $469,344 $5,035,155 $ 511,761 $483,233 $ 804,944 $196,186 $ 27,751 $390,530 $280,304 $ 9,831,751 --------- -------- ---------- --------- -------- ---------- -------- -------- -------- -------- ----------- Cash, Non-Interest Bearing $ 2 $ 406 $ 1 $ 2 $ -0- $ 3 $ 4 $ -0- $ -0- $ 25,005 $ 25,423 --------- -------- ---------- --------- -------- ---------- -------- ------- -------- -------- ----------- Receivables: Rolloyer Contribution $ $ $ $ $ $ $ $ $ $ 24,201 $ 24,201 Interest and Dividends 3,987 1,704 28,533 2,483 28 81 39 8 604 37,503 Interfund Transfers Pending (369) 1,758 13,286 1,245 2,044 4,168 1,492 257 34 (23,915) -0- ---------- -------- ---------- -------- -------- ---------- -------- -------- -------- -------- ----------- TOTAL RECEIVABLES $ 3,618 $ 3,462 $ 41,819 $ 3,728 $ 2,072 $ 4,249 $ 1,531 $ 265 $ 34 926 $ 49,070 ---------- -------- ---------- -------- -------- ---------- -------- -------- -------- -------- ----------- TOTAL ASSETS $1,636,163 $473,212 $5,076,975 $ 515,491 $485,305 $ 809,196 $197,721 $ 28,016 $390,564 $306,235 $ 9,918,878 ---------- -------- ---------- -------- -------- ---------- -------- -------- -------- -------- ----------- LIABILITIES Excess Contribution Payable $ 166 $ 80 $ 8,362 $ 1,072 $ 497 $ 877 $ 18 $ 712 $ $ 1,304 $ 13,088 ---------- -------- ---------- -------- ------- ---------- --------- ------- -------- -------- --------- TOTAL LIABILITIES $ 166 $ 80 $ 8,362 $ 1,072 $ 497 $ 877 $ 18 $ 712 $ -0- $ 1,304 $ 13,088 ---------- -------- ---------- -------- -------- ---------- --------- ------- -------- -------- --------- NET ASSETS AVAILABLE FOR BENEFITS $1,635,997 $ 473,132 $5,068,613 $ 514,419 $484,808 $ 808,319 $ 197,703 $27,304 $390,564 $304,931 $ 9,905,790 ========== ========= ========== ========= ======== ========== ========= ======= ======== ======== =========== The accompanying notes are an integral part of these financial statements.
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1999 STATEMENT III PARTICIPANT DIRECTED PEOPLES PEOPLES CERTIFICATES BANCORP PEOPLES VANGUARD PEOPLES OF INC. SPECIAL VANGUARD ASSET TEMPLETON BANK EQUITY DEPOSIT COMMON STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL ADDITIONS Additions to Net Assets Attributed To: Investment Income: Net Appreciation (Depreciation) in Fair Value of Investments $ 140,922 $ $(138,640) $ 98,126 $ 55,045 $ 175,535 $ (6,632)$10,381 $(86,845)$ $ 247,892 Interest 1,996 32,569 816 182 157 554 188 81 604 27,079 64,226 Dividends 21,147 121,321 5,904 108,367 19,700 26,159 1,524 10,065 2,906 317,093 ---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ----------- TOTAL INVESTMENT INCOME $ 164,065 $ 32,569 $ (16,503) $ 104,212 $163,569 $ 195,789 $ 19,715 $11,986 $(76,176)$ 29,985 $ 629,211 ---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ----------- Contributions: Participants' $ 49,623 $ 32,977 $ 190,093 $ 30,614 $ 47,174 $ 101,885 $ 44,530 $ 8,836 $ $ $ 505,732 Employer's 10,952 8,668 46,601 6,311 10,918 21,150 8,864 2,387 115,851 Rollovers 12,312 46,832 20,054 806 37,437 44,341 12,567 174,349 ---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ----------- TOTAL CONTRIBUTIONS $ 72,887 $ 88,477 $ 256,748 $ 37,731 $ 95,529 $ 167,376 $ 65,961 $11,223 $ -0- $ -0- $ 795,932 ---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ----------- TOTAL ADDITIONS $ 236,952 $121,046 $ 240,245 $ 141,943 $259,098 $ 363,165 $ 85,676 $23,209 $(76,176)$ 29,985 $ 1,425,143 ---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ----------- DEDUCTIONS Deductions from Net Assets Attributed To: Benefits Paid to Participants $ 306,125 $ 3,607 $ 257,197 $ 38,026 $ 14,824 $ 32,378 $ 41,108 $ 1,230 $ $ $ 694,495 --------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ----------- TOTAL DEDUCTIONS $ 306,125 $ 3,607 $ 257,197 $ 38,026 $ 14,824 $ 32,378 $ 41,108 $ 1,230 $ -0- $ -0- $ 694,495 --------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ----------- Net Increase Prior to Interfund Transfers $ (69,173) $117,439 $ (16,952) $ 103,917 $244,274 $ 330,787 $ 44,568 $21,979 $(76,176)$ 29,985 $ 730,648 Interfund Transfers (21,024) 379,999 (210,693) (21,934) (50,013) 12,859 114,198 (2,493)(127,718) (73,181) -0- ---------- -------- --------- --------- -------- -------- -------- ------- -------- -------- ----------- NET INCREASE (DECREASE) $ (90,197) $497,438 $(227,645) $ 81,983 $194,261 $ 343,646 $ 158,766 $19,486 (203,894)$(43,196)$ 730,648 NET ASSETS AVAILABLE FOR BENEFITS Beginning of Year 1,635,997 473,132 5,068,613 514,419 484,808 808,319 197,703 27,304 390,564 304,931 9,905,790 --------- -------- --------- -------- -------- --------- --------- ------- ----------------- ----------- END OF YEAR $1,545,800 $970,570 $4,840,968 $ 596,402 $679,069 $1,151,965 $ 356,469 $46,790 $186,670 $261,735 $10,636,438 ========== ======== ========== ========= ======== ========= ========= ======= ======== ======== =========== The accompanying notes are an integral part of these financial statements.
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1998 STATEMENT IV PARTICIPANT DIRECTED PEOPLES PEOPLES CERTIFICATES BANCORP PEOPLES VANGUARD PEOPLES OF INC. SPECIAL VANGUARD ASSET TEMPLETON BANK EQUITY DEPOSIT COMMON STOCK STOCK ACORN 500 ALLOCATION FOREIGN ONE FUND FUND FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL ADDITIONS Additions to Net Assets Attributed To: Investment Income: Net Appreciation (Depreciation) in Fair Value of Investments $ 283,184 $ $(719,770) $ 30,145 $ 8,962 $ 139,956 $ 6,664 $(3,876)$ (3,342)$ $ (258,077) Interest 545 24,040 614 426 132 179 131 81 19,360 45,508 Dividends 21,063 104,899 7,453 26,794 10,172 11,147 1,776 183,304 ---------- -------- --------- --------- -------- --------- --------- ------- -------- -------- ---------- TOTAL INVESTMENT INCOME $ 304,792 $ 24,040 $ (614,257)$ 38,024 $ 35,888 $ 150,307 $ 17,942 $(2,019)$ (3,342)$ 19,360 $ (29,265) ---------- -------- ---------- --------- -------- --------- --------- ------- -------- -------- ---------- Contributions: Participants' $ 53,328 $ 30,530 $ 196,282 $ 34,301 $ 45,107 $ 59,621 $ 16,761 $ 7,119 $ $ $ 443,049 Employer's 11,541 7,343 47,953 7,163 9,679 13,433 2,652 1,548 101,312 Rollovers 90,182 37,628 261,896 70,126 65,351 150,234 61,058 8,673 393,906 24,201 1,163,255 ---------- -------- ---------- --------- -------- --------- -------- ------- -------- -------- ---------- TOTAL CONTRIBUTIONS $ 155,051 $ 75,501 $ 506,131 $ 111,590 $120,137 $ 223,288 $ 80,471 $17,340 $393,906 $ 24,201 $1,707,616 ---------- -------- ---------- --------- -------- --------- --------- ------- -------- -------- ---------- TOTAL ADDITIONS $ 459,843 $ 99,541 $ (108,126)$ 149,614 $156,025 $ 373,595 $ 98,413 $15,321 $390,564 $ 43,561 $1,678,351 ---------- -------- ---------- --------- -------- --------- --------- ------- -------- -------- ---------- DEDUCTIONS Deductions from Net Assets Attributed To: Benefits Paid to Participants $ 52,931 $ 41,108 $ 166,723 $ 17,022 $ 21,546 $ 28,459 $ $ $ $ 14,708 $ 342,497 ---------- -------- ---------- --------- -------- -------- --------- ------- -------- -------- ---------- TOTAL DEDUCTIONS $ 52,931 $ 41,108 $ 166,723 $ 17,022 $ 21,546 $ 28,459 $ -0- $ -0- $ -0- $ 14,708 $ 342,497 ---------- -------- ---------- --------- -------- -------- --------- ------- -------- -------- ---------- Net Increase Prior to Interfund Transfers $ 406,912 $ 58,433 $ (274,849)$ 132,592 $134,479 $345,136 $ 98,413 $15,321 $390,564 $ 28,853 $1,335,854 Interfund Transfers (71,594) 10,420 (112,212) (45,410) (19,396) (6,724) 99,290 11,983 133,643 -0- ---------- -------- ---------- --------- -------- -------- --------- ------- -------- -------- ---------- NET INCREASE (DECREASE) $ 335,318 $ 68,853 $ (387,061)$ 87,182 $115,083 $338,412 $ 197,703 $27,304 $390,564 $162,496 $1,335,854 NET ASSETS AVAILABLE FOR BENEFITS Beginning of Year 1,300,679 404,279 5,455,674 427,237 369,725 469,907 142,435 8,569,936 ---------- -------- ---------- --------- -------- -------- --------- ------- -------- -------- ---------- END OF YEAR $1,635,997 $473,132 $5,068,613 $ 514,419 $484,808 $808,319 $ 197,703 $27,304 $390,564 $304,931 $9,905,790 ========== ======== ========== ========= ======== ======== ========= ======= ======== ======== ========== The accompanying notes are an integral part of these financial statements.
PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 1: DESCRIPTION OF PLAN The following brief description of Peoples Bancorp Inc. Retirement Savings Plan (the Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General The Plan is a defined contribution plan covering substantially all employees of Peoples Bancorp Inc. and its Subsidiaries (The Peoples Banking and Trust Company, The First National Bank of Southeastern Ohio, The Russell Federal Savings Bank, and Catlettsburg Federal Savings Bank). The Plan is a qualified trust under Sections 401(a) and 401(k) of the Internal Revenue Code. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Trustee of the Plan is The Peoples Banking and Trust Company. Eligibility Employees are eligible to participate in the Plan if they work 1,000 hours or more during the year, beginning the first calendar quarter after employment full time or upon reaching 1,000 hours part time. Employees may join the Plan on any calendar quarter beginning January 1, April 1, July 1, or October 1. Contributions Participants may elect to contribute up to 15% of pretax annual compensation and an additional 10% of after tax annual compensation. Participants may also directly rollover amounts representing distributions from other qualified plans. In addition, Peoples Bancorp Inc. or its Subsidiaries will make a matching contribution on the employee's behalf. The amount of this matching contribution will be determined each year by the Employer's Board of Directors. For 1999 and 1998, the Employer's matching was 50% of the employee's contribution, up to a maximum of 3% of the employee's deferred annual compensation. Participant Accounts Each participant's account is credited with the participant's contribution and allocations of the Employer's matching contribution and Plan earnings. Allocations are based on participants' earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Vesting Participants are immediately fully vested in their voluntary contributions, the Employer's matching contributions, and actual earnings thereon. 6 PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 1: DESCRIPTION OF PLAN (CONTINUED) Investment Options Upon enrollment in the Plan, a participant may direct contributions into any of eight investment options. o The Peoples Equity Fund is a common stock fund which consists of a diversified portfolio of high-quality common stocks. o The Peoples Certificate of Deposit Fund is a fixed income fund which consists of investments in deposit instruments of The Peoples Banking and Trust Company. o The Peoples Bancorp Inc. Stock Fund consists of common shares of Peoples Bancorp Inc. If the participant invests in common shares of the Employer, the participant is entitled to vote proxies representing Employer common shares equal to the number of whole common shares in the participant's account and, when entitled to a distribution, may elect to receive common shares instead of cash. o The Peoples Special Stock Fund is a common stock fund which consists of a diversified portfolio of small company common stocks and common stock mutual funds. o The Acorn Fund is a common stock fund managed by Wanger Asset Management, L.P. which consists of a diversified portfolio of common stocks of small and medium sized companies in the United States and overseas. o The Templeton Foreign Fund is a common stock and bond fund managed by The Franklin Templeton Group which seeks long-term capital growth through a flexible policy of investing in stocks and debt obligations of companies and governments outside of the United States. o The Vanguard 500 Index Fund is a common stock fund managed by the Vanguard Group of Investment Companies which consists of a diversified portfolio of common stocks of large companies in the United States. o The Vanguard Asset Allocation Fund is a common stock, bond and money market fund managed by the Vanguard Group of Investment Companies which varies the mix according to the relative attractiveness of the asset classes. There is no limit on how much can be invested in any one asset class. Participants may change their investment options quarterly. 7 PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 1: DESCRIPTION OF PLAN (CONTINUED) Participant Loans Receivable Participants may apply for a loan from their account under the Plan. Certain legal restrictions impose limits on the amount of the loan and repayment terms. The minimum loan amount is $1,000 and the maximum loan amount is $50,000. The specific limit for any participant is 50% of their account balance. If a participant has an existing loan at the time of application, the $50,000 limit is reduced by the highest outstanding balance of the participant's loan over the previous twelve-month period or the total of all outstanding loans the day the new loan is granted. Generally, the participant's loan must be repaid within five years, unless the proceeds are used to purchase a principal residence. Payment of Benefits The participant's benefit will equal the sum of the salary deferral, the voluntary nondeductible contribution, the rollover contribution, and the Employer's matching contribution plus net income and net losses resulting from the investment of these amounts as valued on the valuation date as defined. Payment of such amounts upon termination of employment may be deferred until the participant reaches normal retirement, becomes eligible for early retirement benefits, terminates employment prior to retirement, becomes disabled, or dies. If the benefit is $5,000 or less, the benefit will be paid in a lump-sum payment. If the benefit exceeds $5,000, the participant may elect to have benefits paid in a lump-sum payment or in equal installments over a fixed period of time not to exceed ten years. If a participant dies without a surviving spouse, either before or after retirement, but before a complete distribution of their accounts, then the full value of the participant's accounts will be paid to a designated beneficiary. If a participant dies with a surviving spouse, either before or after retirement, but before a complete distribution of their accounts, then the full value of the participant's accounts will be paid to the surviving spouse. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements of the Plan are prepared using the accrual method of accounting. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. 8 PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investment Valuation and Income Recognition Shares of the common/collective trusts, Peoples Stock Fund EB, and Peoples Special Stock Fund EB, are valued at the Plan's proportionate share of net shares of the fund as of the most recent valuation date. Shares of the registered investment companies, Acorn Fund, Templeton Foreign Fund, Vanguard 500 Index Fund, and Vanguard Asset Allocation Fund, are valued at quoted market prices which represent the net asset value of shares held by the Plan at year end. Investments in Bank One Corporation and Peoples Bancorp Inc. common stock are carried at quoted market prices. The investment in The Peoples Banking and Trust Company certificates of deposit and the participant loans are recorded at cost which approximates fair market value. Dividends and interest received from investments are recorded as earned on an accrual basis. The Plan presents in the Statement of Changes in Net Assets Available for Benefits the net appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. Payment of Benefits Benefits are recorded when paid. 9 PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 3: INVESTMENTS The Plan's investments are held by a bank-administered trust fund. The following table presents the fair values of investments. Investments that represent 5% or more of the Plan's net assets are identified with an asterisk.
DECEMBER 31, 1999 1998 _____________________________ _____________________________ UNITS FAIR VALUE UNITS FAIR VALUE INVESTMENTS AT FAIR VALUE DETERMINED BY QUOTED MARKET PRICE Fidelity U.S. Treasury Income Portfolio Fund 96,740.000 $ 96,740 201,670.000 $ 201,670 * Acorn Fund 36,280.061 672,269 28,678.511 483,233 Templeton Foreign Fund 4,166.566 46,749 3,307.637 27,751 * Vanguard 500 Index Fund 8,426.651 1,140,379 7,045.058 802,784 Vanguard Asset Allocation Fund 14,822.134 352,767 7,971.098 194,336 Bank One Corporation Common Stock 5,398.000 172,736 7,648.000 390,530 * Peoples Bancorp Inc. Common Stock 222,084.000 4,774,806 204,044.500 4,973,585 ---------- ---------- $ 7,256,446 $ 7,073,889 ----------- ----------- INVESTMENTS AT ESTIMATED FAIR VALUE * Peoples Certificates of Deposit 953,760.570 $ 953,761 424,404.000 $ 424,404 * Peoples Stock Fund EB 12,443.000 1,536,878 13,799.000 1,570,703 * Peoples Special Stock Fund EB 10,958.000 583,617 10,881.000 482,901 Participants Loans Receivable 261,412.000 261,412 279,854.000 279,854 ---------- ---------- $ 3,335,668 $ 2,757,862 ----------- ----------- TOTAL INVESTMENTS $ 10,592,114 $ 9,831,751 =========== ===========
10 PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 3: INVESTMENTS (CONTINUED) During 1999 and 1998, the Plan's investments (including investments bought, sold, and held during the year) appreciated (depreciated) in value by $247,892 and $(258,077), respectively, as follows: APPRECIATION (DEPRECIATION) 1999 1998 CHANGES IN INVESTMENTS REPORTED AT FAIR VALUE AS DETERMINED BY QUOTED MARKET PRICE Acorn Fund $ 55,045 $ 8,962 Templeton Foreign Fund 10,381 (3,876) Vanguard 500 Index Fund 175,535 139,956 Vanguard Asset Allocation Fund (6,632) 6,664 Bank One Corporation Common Stock (86,845) (3,342) Peoples Bancorp Inc. Common Stock (138,640) (719,770) --------- ---------- $ 8,844 $ (571,406) --------- ---------- CHANGES IN INVESTMENTS REPORTED AT ESTIMATED FAIR VALUE Peoples Stock Fund EB $ 140,922 $ 283,184 Peoples Special Stock Fund EB 98,126 30,145 --------- ---------- $ 239,048 $ 313,329 --------- ---------- NET CHANGE IN FAIR VALUE $ 247,892 $ (258,077) ========= ========== NOTE 4: RELATED PARTY TRANSACTIONS Certain Plan investments such as certificates of deposit and shares in the common/collective trusts are managed by The Peoples Banking and Trust Company, a subsidiary of Peoples Bancorp Inc. The Peoples Banking and Trust Company is also the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest. NOTE 5: PAYMENT OF EXPENSES The Corporation elected to pay all the administrative expenses and investment costs of the Plan. Should the Corporation elect not to pay all or part of such expenses, the Trustee then pays these expenses from the Plan. NOTE 6: PLAN TERMINATION Although it has not expressed any intent to do so, Peoples Bancorp Inc. has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will continue to be 100% vested in their accounts. 11 PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS NOTE 7: TAX STATUS The Internal Revenue Service has determined and informed the Corporation by letter dated July 25, 1996, stating that the Plan constitutes a qualified trust under Sections 401(a) and 401(k) of the Internal Revenue Code and is, therefore, exempt from Federal income taxes under the provisions of Section 501(a). The Plan has been amended since receiving the determination letter. However, the plan administrator and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. 12 SUPPLEMENTAL INFORMATION
PEOPLES BANCORP INC. PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN 002 DECEMBER 31, 1999 31-0987416 SCHEDULE A (a) (b) (c) (d) (e) Identity of Issue, Borrower Description of Investment Cost Current Lessor, or Similar Party Including Maturity Date, Value Rate of Interest, Collateral, Par or Maturity Value Fidelity U.S. Treasury Income Money Market Portfolio Fund 96,740 Shares 96,740 96,740 * The Peoples Banking and Trust Certificates of Deposit Company 6.00% Due 01/27/02 225,000 225,000 4.89% Due 06/16/00 65,000 65,000 4.89% Due 07/19/00 13,121 13,121 4.99% Due 09/30/00 201,156 201,156 5.95% Due 01/19/01 210,000 210,000 4.85% Due 05/11/00 37,000 37,000 4.89% Due 06/05/00 90,000 90,000 4.85% Due 01/07/00 52,484 52,484 5.00% Due 03/30/00 60,000 60,000 * Peoples Stock Fund EB Common/Collective Trust 12,443 Shares 774,958 1,536,878 * Peoples Special Stock Fund EB Common/Collective Trust 10,958 Shares 369,907 583,617 Acorn Fund Registered Investment Company 36,280.061 Shares 592,06 672,269 Templeton Foreign Fund Registered Investment Company 4,166.566 Shares 40,748 46,749 Vanguard 500 Index Fund Registered Investment Company 8,426.651 Shares 772,328 1,140,379 Vanguard Asset Allocation Fund Registered Investment Company 14,822.134 Shares 355,909 352,767 Bank One Corporation Common Stock 5,398 Shares 277,997 172,736 * Peoples Bancorp Inc. Common Stock 222,084 Shares 2,311,936 4,774,806 * Loans to Participants Varied Terms Through 2005 and Varied Interest Rates from 9.75% to 11.00% -0- 261,412
PEOPLES BANCORP INC. PEOPLES BANCORP INC. RETIREMENT SAVINGS PLAN 002 FOR THE YEAR ENDED DECEMBER 31, 1999 31-0987416 SCHEDULE B (a) (b) (c) (d) (e) (f) (g) (h) (i) Identity of Description of Asset Purchase Selling Lease Expense Cost of Current Net Party Involved (Include Interest Rate Price Price Rental Incurred Asset Value of Gain and Maturity in Case with Asset on or of a Loan) Transaction Transaction (Loss) Fidelity U.S. Money Market Fund Treasury 382 Purchases 3,383,760 -0- 3,383,760 Income 216 Sales 3,488,690 -0- 3,488,690 3,488,690 -0- Portfolio Fund Peoples Common Stock Bancorp 23 Purchases 377,587 -0- 377,587 Inc. 24 Sales 416,867 -0- 311,475 416,867 105,392 Peoples Common/Collective Stock Fund Trust EB 8 Purchases 294,930 -0- 294,930 6 Sales 469,677 -0- 206,605 469,677 263,072 Vanguard 500 Registered Investment Index Fund Company 25 Purchases 335,397 -0- 335,397 4 Sales 173,338 -0- 116,132 173,338 57,206
INDEX TO EXHIBITS Exhibit No. Description Page No. 1 Consent of Harman, Mallory & Ice, A.C. 17 16