Filed by: Peoples Bancorp Inc.
                Pursurant to Rule 425 under the Securities Act of 1933

                Subject Company: The Lower Salem Commercial Bank
                                 (Registration No. 333-81251)


                                  NEWS RELEASE


FOR IMMEDIATE RELEASE          Contact: John W. Conlon, Chief Financial Officer
- ---------------------------             (740) 374-3155
January 12, 2001


                           PEOPLES BANCORP AUTHORIZES
                           REPURCHASE OF COMMON STOCK
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    2000 earnings results to be released January 22; Annual Meeting date set

         MARIETTA,  Ohio - The  Board  of  Directors  of  Peoples  Bancorp  Inc.
(Nasdaq:  PEBO) yesterday adopted a resolution  authorizing the repurchase of up
to 125,000  shares (or  approximately  2% of the  Company's  outstanding  common
shares) from time to time in open market or privately  negotiated  transactions.
The timing of the purchases  and the actual  number of common  shares  purchased
will  depend  on  market  conditions.  This  stock  repurchase  program  will be
implemented at the Company's discretion and will expire December 31, 2001.
         "We believe  Peoples  Bancorp  shares  represent an  excellent  value,"
stated  Robert  E.  Evans,  President  and  CEO of  Peoples  Bancorp.  "The  new
repurchase  program  reflects our continued  commitment  to enhance  shareholder
value and effectively manage our capital levels."
         In addition,  the Company intends to continue the previously  announced
quarterly  purchase of 18,150  treasury  shares for issuance in connection  with
Peoples  Bancorp's  stock  option  plans.  The  continuation  of  the  quarterly
repurchase program may be amended or eliminated in the future.
         Peoples  Bancorp will release its 2000 earnings  statement  January 22,
2001,  at  approximately  1:00  pm  local  time.  Peoples  Bancorp  will  hold a
conference call to discuss 2000 results of operations  January 24, 2001, at 3:00
pm. The conference call is open to the public and management asks that questions
be limited to  investment  analysts,  investors,  and  members of the media.  To
participate in the call,  please dial  1-800-394-0105  approximately  10 minutes
before the scheduled start of the conference  call. The passcode for the call is
36190  followed  by the pound  sign.  Members  of  Peoples  Bancorp's  executive
management will  participate in the conference  call. Brief opening remarks will
be followed by a question and answer period. A transcript of the discussion will
be placed on Peoples  Bancorp's  web site at  www.peoplesbancorp.com  - click on
"Investor Relations", then "Conference Call Transcripts".
         In other events,  Peoples  Bancorp's Board of Directors  announced that
the 2001 Annual Meeting of  Shareholders  will be April 12, 2001, at 10:30 A.M.,
in the Ball Room of the Holiday Inn on Newport Pike  (Interstate  77, Exit 1) in
Marietta,  Ohio.  The Proxy,  2000  Annual  Report,  Proxy  Statement  and other
necessary documents will be mailed on or about March 9, 2001, to Stockholders of
record as of February 15, 2001.
         Peoples Bancorp is a diversified  financial  services company with $1.1
billion in assets.  The Company's lead subsidiary is Peoples Bank,  which offers
complete banking products and services  through 39 financial  service  locations
and 26 ATM's in the states of Ohio,  West Virginia,  and Kentucky.  Peoples Bank
also makes  available other financial  services via Peoples  Investments,  which
provides client-tailored solutions for fiduciary needs, investment alternatives,
and other asset management  needs  (securities are offered  exclusively  through
Raymond James Financial Services, member NASD/SIPC, an independent broker/dealer
located at Peoples Bank).  Peoples Insurance Agency provides a full set of life,
property and casualty insurance products and services.  Peoples Bancorp's common
stock is traded through the Nasdaq National Market System under the symbol PEBO.
Learn more about Peoples Bancorp or enroll in Peoples OnLine Connection internet
banking service at www.peoplesbancorp.com.

                                 END OF RELEASE