Exhibit 99.1



For Release:  Tuesday, April 18, 2006

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


                 PEOPLES-SIDNEY FINANCIAL CORPORATION ANNOUNCES
                         EARNINGS AND DECLARES DIVIDEND

Sidney, Ohio OTCBB - "PSFC"

Douglas  Stewart,  President  and CEO of  Peoples-Sidney  Financial  Corporation
announced today the  Corporation's  results for the third quarter of fiscal 2006
and nine  month  results  for the period  ending  March 31,  2006,  as well as a
regular quarterly dividend to be paid to its shareholders.

Net income for the quarter ended March 31, 2006 was $242,000, or $0.18 basic and
diluted  earnings  per share  compared to  $270,000,  or $0.20 basic and diluted
earnings per share for the same quarter in 2005.  The decrease in net income for
the current  quarter was primarily due to an increase in noninterest  expense of
$60,000  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.  The increase in  noninterest  expense was partially  offset by an
increase of $13,000 in net  interest  income and a decrease of $16,000 in income
tax expense.

The  Corporation's  year to date net income for the nine months  ended March 31,
2006 was  $767,000,  compared  to $764,000  for the same period a year ago.  Net
income for both periods equaled $0.56 basic and diluted  earnings per share. The
year to date  comparison  represents an increase in net income of $3,000 for the
current  year.  For the  nine-month  comparison,  the  Corporation  realized  an
increase in net interest income of $135,000 resulting from an improvement in the
net interest rate spread between  interest  earning assets and interest  bearing
liabilities.  Noninterest  income  also  increased  $30,000  primarily  due to a
$25,000 loss recorded on real estate owned properties that occurred in the prior
year coupled with a decrease of $10,000 in provisions for loan losses during the
current period. The increases to net income were partially offset by an increase
of $171,000 in  noninterest  expense for the current  nine-month  period for the
same reasons as previously discussed in the three-month comparison.

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On April 13, 2006, the Board of Directors declared a quarterly dividend of $0.16
per share for record  holders as of April 30, 2006. The dividend will be payable
on May 15, 2006. At March 31, 2006,  Peoples-Sidney  Financial  Corporation  had
assets of $137.8 million and shareholders' equity of $17.3 million.

The Board of  Directors  also  announced  the  extension  of the  current  stock
repurchase  program for another  twelve-month  period. To date a total of 32,500
shares have been  repurchased in the open market at a weighted  average price of
$15.36 per share.  There are 39,100 shares  remaining in the 5% stock repurchase
program that was  announced on April 19, 2005.  Total shares  outstanding  as of
March 31, 2006 were l,400,148.

      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.