Exhibit 99.1








For Release:  October 14, 2005

Contact:  Douglas Stewart, President-CEO
          Debra Geuy, Chief Financial Officer


             PEOPLES-SIDNEY FINANCIAL CORPORATION ANNOUNCES EARNINGS
                   AND DECLARES REGULAR AND SPECIAL DIVIDEND


Sidney, Ohio  NASDAQ-"PSFC"


Douglas  Stewart,  President and CEO of  Peoples-Sidney  Financial  Corporation,
parent company of Peoples Federal Savings and Loan  Association  announced today
the  Corporation's  first  quarter  earnings for the fiscal year ending June 30,
2006 and a regular quarterly dividend, plus a special dividend to be paid to its
shareholders.

Net income for the three-month period ended September 30, 2005 was $240,000,  or
$0.17 basic and diluted earnings per share. This compares to $240,000,  or $0.17
basic and diluted  earnings  per share for the same period ended  September  30,
2004.  Although  net  income  remained  unchanged,  there  were  changes  in the
components of net income. The most significant  changes occurred in net interest
income  which  increased  $49,000  coupled  with a  decrease  of  $10,000 in the
provision  for loan  losses  offset by an  increase  of $63,000  in  noninterest
expense. The increase in net interest income resulted from an improvement in the
net interest rate spread between  interest  earning assets and interest  bearing
liabilities  during the current  period.  The  increase in  noninterest  expense
related primarily to an increase in professional services and the increased cost
associated  with the upgraded  data  processing  system,  which was put in place
during the last quarter of fiscal 2005.

At their regular meeting held October 14, 2005, the Board of Directors  declared
a regular quarterly dividend of $0.15 per share for record holders as of October
31, 2005 and payable on November 15, 2005.

In addition,  the directors  declared a "special" dividend of $0.10 per share to
all record holders as of October 31, 2005 and payable on November 15, 2005.

Stewart  commented,  "We are  extremely  pleased  to be able to pay our  regular
quarterly  dividend,  plus a special dividend to our  shareholders.  This is the
fourth occasion since going public in 1997 that our shareholders have received a
special dividend as well as our regular quarterly dividends. We will continue to
pay a reasonable dividend in line with our earnings and appreciate the continued
support of our shareholders."



             PEOPLES-SIDNEY FINANCIAL CORPORATION ANNOUNCES EARNINGS
                    AND DECLARES REGULAR AND SPECIAL DIVIDEND

                                October 14, 2005

                                     Page 2


Assets of the  Corporation  at September  30, 2005 totaled  $137.7  million with
shareholders' equity of $17.7 million.

Peoples  Federal  operates  from its main  office  in  downtown  Sidney  and its
branches in Anna, Jackson Center and the Sidney Wal-Mart Supercenter.

      When  used  in  this  press   release  or  other  public  or   shareholder
communications,  in filings by the Corporation  with the Securities and Exchange
Commission  and in oral  statements  made  with the  approval  of an  authorized
executive  office,  the words or phrases "should  result," "will likely result,"
"will  enable," "are expected to," "is  anticipated,"  "estimate,"  "project" or
similar expressions are intended to identify "forward-looking statements" within
the  meaning of the  Private  Securities  Litigation  Reform  Act of 1995.  Such
statements are subject to certain risks and uncertainties,  including changes in
economic  conditions in the  Corporation's  market area,  changes in policies by
regulatory  agencies,  fluctuations in interest  rates,  demand for loans in the
Corporation's  market area and  competition,  that could cause actual results to
differ  materially  from historical  results and those presently  anticipated or
projected. The Corporation wishes to caution readers not to place undue reliance
on such  forward-looking  statements,  which speak only as of the date made. The
Corporation  wishes to advise  readers that the factors  listed could affect the
Corporation's  financial  performance and could cause the  Corporation's  actual
results for future periods to differ  materially from any opinions or statements
expressed with respect to future periods in any current statements.

      The  Corporation  does  not   undertake-and   specifically   declines  any
obligation-to  publicly release the result of any revisions which may be made to
any forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or  unanticipated
events.