FORM 5
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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( ) Form 3 Holdings Reported
( ) Form 4 Transactions Reported
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Eschange Act of 1934, Section
17(a) of the Public Utility Holding Company act of 1935 or Section 30(h) of the
Investment Company Act of 1940
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1. Name and Address of Reporting Person*
James W. Gray
4630 Ridgemoor Drive
Belden, MS 38826
2. Issuer Name and Ticker or Trading Symbol
Peoples Holding Company (PHC)
3. IRS Identification Number of Reporting Person, if an entity (Voluntary)
459-11-0294
4. Statement for Month/Day/Year
December 31, 2002
5. If Amendment, Date of Original (Month/Day/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
( ) Director ( ) 10% Owner
( X ) Officer (give title below) ( ) Other (specify below)
Executive Vice President
_________________________
7. Individual or Joint/Group Filing (Check Applicable Line)
( X ) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
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Table I - - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
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+-------------------+------------+-------------+----------+------------------------------+----------------+-----------+------------+
|1. Title of |2. Trans- |2a.Deemed |3. Trans- | 4.Securities Acquired (A) |5. Amount of | 6.Owner- |7. Nature of|
| Security | action | Execution| action | or Disposed of (D) | Securities | ship | Indirect |
| | Date | Date, if | Code | (Instr.3,4 and 5) | Beneficially | Form: | Bene- |
| (Instr.3) | | any | (Instr.8)| | Owned at end | Direct | ficial |
] | | |-----------+------------------------------| of Issuer's | (D) or | Owner- |
| | | | | | | | | Fiscal Year | Indirect| ship |
| | | | | | |(A)or | | (s)(Instr.3 | (I) | |
| |(Mo/Dy/Yr) | (Mo/Dy/Yr)| Code | V | Amount |(D) | Price | and 4) | (Instr.4)| (Instr.4) |
--------------------+------------+------------+-----------+------------+------+----------+----------------+-----------+------------+
Common Stock 3,275.41 D
Common Stock 1,209.15(1) I By 401(k)Plan
Common Stock 541.36(2) I By ESOP Plan
Common Stock 230.64 I Spouse
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(1) Prior to December 31, 2001, the reporting person had acquired 959.57 shares of the Company's common stock under the Company's
401(k) Plan. The end of period holdings reflect ownership as the most recent plan statement, September 30, 2002.
(2) Prior to December 31, 2001, the reporting person had acquired 476.52 shares of the Company's common stock under the Company's
ESOP Plan. The end of period holdings have been adjusted to reflect shares allocated during 2002.
Reminder: Report on a separate line for each class of securities benefically
owned directly or indirectly.
*If the form is filed by more than one reporting person, see Instruction 4(b)(v).
Persons who respond to the collection
of information contained in this form
are not required to respond unless the
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(Over)
SEC 1474 (9-02)
FORM 5 (Continued)
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TABLE II - - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g.,puts, calls, warrants, options, convertible securities)
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+-----------------------------+--------------+-----------+---------------+--------------+-------------------+----------------------+
|1. Title of Derivative | 2. Convers- | 3. Trans- | 3A Deemed | 4. Transact- | 5. Number of | 6. Date Exercisable |
| Security | ion or | action | Execution | ion Code | Derivative | and Expiration |
| (Instr.3) | Exercise | Date | Date, if | (Instr.8) | Securities | Date |
| | Price of | | any | | Acquired (A) or| (Month/Day/Year) |
| | Derivative| | | | Disposed of | |
| | Security | | | | (D)(Instr. 3,4,| |
| | | | | | and 5) +-----------+----------|
| | | + +-------+------+---------+---------| Date Exer-| Expira- |
| | | (M/D/Y) | (M/D/Y ) | Code | V | (A) | (D) | cisable | tion Date|
+-----------------------------+--------------+-----------+---------------+-------+------+---------+---------+-----------+----------+
Employee Stock Option (Right
to buy)
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+--------------------------------------+---------------------+---------------------+----------------------+------------------------+
|7. Title and Amount of Underlying |8. Price of Deriv- | 9. Number of Deriv- | 10. Ownership Form | 11. Nature of Indirect |
| Securities | ative Security | ative Securities | of Derivative | Beneficial |
| (Instr. 3 and 4) | (Instr.5) | Beneficially | Security: | Ownership |
+-----------------+--------------------+ | Owned at end | Direct(D) or | (Instr. 4) |
| Title | Amount or Number | | of Year | Indirect (I) | |
| | of Shares | | | (Instr.4) | |
| | | | (Instr.4) | | |
+-----------------+--------------------+---------------------+---------------------+----------------------+------------------------+
3,500.00 D
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Explanation of Responses:
/s/ James W. Gray February 14, 2003
___________________________________ ________________________________
**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.