EXHIBIT 99

NEWS RELEASE


FOR IMMEDIATE RELEASE           Contact: John W. Conlon, Chief Financial Officer
- ---------------------------              (740) 373-3155
January 4, 2002

               PEOPLES BANCORP TO ACQUIRE FIRST COLONY BANCSHARES
         ______________________________________________________________
        Peoples to buy majority of loans,deposits, full-service offices
                              of The Guernsey Bank

         MARIETTA, Ohio - Peoples Bancorp (Nasdaq: PEBO) announced today that it
has signed a definitive agreement to acquire all of the outstanding common stock
of First Colony Bancshares, the holding company of The Guernsey Bank based in
Cambridge, Ohio. The Guernsey Bank, a federal savings bank, operates five
full-service offices in Ohio's Guernsey and Belmont Counties, and one office in
Worthington, Ohio. In the transaction, Peoples Bank will acquire the Guernsey
and Belmont County operations.
         "We are excited about the opportunity to expand our franchise into
these new markets," said Robert E. Evans, President and CEO of Peoples. "The
Guernsey Bank and their associates have been successful in serving their
customers and growing their business. We want to continue that success by
offering our new customers an integrated, expanded line of financial services.
For the past 100 years, Peoples has earned the reputation as a leader in
community banking by providing our local communities with a personalized brand
of banking, a broad choice of financial products and services, and state of the
art technology."
         "The greater Cambridge area is a logical expansion of Peoples'
community bank markets," Evans continued. "This is a unique transaction which
allows us to expand our traditional banking business in markets that we find
attractive, giving us a new base to which we can offer life, health, car, home,
and business insurance, plus we make available investment accounts such as
brokerage or trust relationships. We believe these nontraditional banking
products and services will be well received by The Guernsey Bank's customers.
Our focus is to be the leading provider of financial services in the markets we
serve, with local decision-making and familiar faces to our customers."
         Robert Patrella, Chairman of First Colony and President of The Guernsey
Bank, stated "We are very pleased that Peoples was selected as the acquiror of
First Colony because of their long-standing community focus and commitment and
the fact that they are a local institution from neighboring Marietta. I know
that our Guernsey and Belmont County customers will be well served by Peoples
and will appreciate the broad array of products and services Peoples will offer
them."
         Under the terms of the agreement, Peoples has agreed to pay
approximately $18 million total cash consideration to First Colony's
shareholders, Robert and Diane Patrella, and assume $2 million of First Colony
debt. Office locations to be transferred to Peoples include two full-service
offices in downtown Cambridge, and full-service offices in Byesville, Quaker
City, and Flushing, involving assets of approximately $110 million and deposits
of approximately $100 million.
         The Guernsey Bank's full-service banking office and loan production
office in Worthington will continue to service its customers, unaffected by the
transaction, and will retain the "Guernsey Bank" name. According to Mr.
Patrella, "The transaction will provide the capital needed to expand the
Worthington operations throughout Franklin County. We are delighted that the
Guernsey Bank will be able to continue to serve our Worthington customers and
look forward to expanding our products and services, which will include internet
banking, as well as providing additional locations to service our customers'
needs."
         The transaction is expected to be immediately accretive to Peoples'
earnings. Peoples anticipates being able to realize cost savings and
corresponding improved efficiencies in executive management, as well as other
general and administrative costs.
         "This is Peoples' first acquisition under the new accounting rules,
which make the premium paid non-dilutive to earnings," stated John W. Conlon,
Peoples' Chief Financial Officer. "We have utilized conservative assumptions in
assessing this acquisition from both an earnings per share and return on
investment perspective."
         The proposed transaction is subject to regulatory approval and is
anticipated to be completed in the second quarter of 2002. At that time, the
Guernsey and Belmont County locations and related loans and deposits will become
offices of Peoples Bank.
         This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements are subject
to risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Such risks include, but are not limited to,
the interest rate environment, the effect of federal and state banking and tax
regulations, the effect of technological changes, the effect of economic
conditions, the impact of competitive products and pricing, and other risks
detailed in Peoples' Securities and Exchange Commission filings. Although
Peoples' management believes that the expectations in these forward-looking
statements are based on reasonable assumptions within the bounds of management's
knowledge of Peoples' business and operations, it is possible that actual
results may differ materially from these projections.
         Peoples Bancorp is a diversified financial services company with $1.2
billion in assets. The Company's lead subsidiary is Peoples Bank, which offers
complete banking products and services through 40 financial service locations
and 25 ATM's in the states of Ohio, West Virginia, and Kentucky. Peoples Bank
also makes available other financial services via Peoples Investment Services,
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.

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