Exhibit 99.1









For Release:  Thursday, July 20, 2006

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


            PEOPLES-SIDNEY FINANCIAL CORPORATION ANNOUNCES QUARTERLY,
              YEAR END EARNINGS, DECLARES DIVIDEND AND SETS ANNUAL
                                  MEETING DATE

Sidney, Ohio OTCBB - "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 fourth quarter and year-end earnings for the fiscal year ended
June 30, 2006. Mr. Stewart also  announced the  Corporation  had declared a cash
dividend of $0.16 per share.

Net income for the quarter ended June 30, 2006 was $272,000,  or $0.20 basic and
diluted  earnings  per share  compared to  $214,000,  or $0.15 basic and diluted
earnings per share for the same quarter in 2005.  The increase of $58,000 in net
income for the current  quarter was  primarily  due to an increase of $38,000 in
net interest  income coupled with a decrease of $46,000 in  noninterest  expense
partially offset by an increase of $33,000 in income tax expense.

The  Corporation's  net  income for the  fiscal  year  ended  June 30,  2006 was
$1,039,000, or $0.76 basic and diluted earnings per share, compared to $978,000,
or $0.71 basic and diluted  earnings per share the previous year, an increase of
$61,000. The Corporation realized an increase of $173,000 in net interest income
resulting from an  improvement in the net interest rate spread between  interest
earning  assets  and  interest  bearing  liabilities.  Noninterest  income  also
increased  $29,000 primarily due to a $25,000 loss recorded on real estate owned
properties  that  occurred in the prior year.  The  increases to net income were
partially  offset by an increase of $125,000 in  noninterest  expense  resulting
from normal  increases in  compensation  and benefits  expense,  increased costs
associated   with  an  upgraded   computer   processing   system  and  increased
professional  fees resulting from new government  regulations and  requirements.
Income tax expense also increased $35,000 for the current fiscal year due to the
increased income before income taxes.



Page 2


On July 13, 2006,  the Board of Directors  declared a quarterly cash dividend of
$0.16 per share for record  holders as of July 31, 2006.  The  dividend  will be
payable  on  August  15,  2006.  At  June  30,  2006,  Peoples-Sidney  Financial
Corporation  had assets of $139.0  million with $17.3  million in  shareholders'
equity.

Additionally,  Mr. Stewart  announced that the Annual Meeting of the Corporation
will be held on Friday,  October 13,  2006 at 11:00 a.m.  at the Sidney  Holiday
Inn. The record date for voting purposes will be August 31, 2006.

Peoples  Federal  operates  from its main office at 101 E. Court  Street and its
branch offices at 2400 W. Michigan Street (inside Wal Mart), 405 S. Pike Street,
Anna, Ohio, and 115 E. Pike Street, Jackson Center, Ohio.

         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.