**Exhibit
      99.1**




**For
      Release:  Thursday, July 19, 2007**





**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, 2007.  Mr. Stewart also announced the Corporation had
      declared a cash dividend of $0.16 per share.





Net
      income for the quarter ended June 30, 2007 was $195,000, or $0.15 basic and
      diluted earnings per share compared to $272,000, or $0.20 basic and diluted
      earnings per share for the same quarter in 2006.  The decrease of
      $77,000 in net income for the current quarter was primarily due to a decrease
      of
      $30,000 in net interest income coupled with an increase of $46,000 in provision
      for loan losses and an increase in noninterest expense of $46,000 partially
      offset by a decrease of $43,000 in income tax expense.  The increase
      in provision for loan losses resulted from an increase in the balance of
      classified loans during the current period.  The increase in
      noninterest expense was primarily due to an increase of $36,000 in professional
      services during the current period related to compliance and oversight of
      government regulations.





The
      Corporation’s net income for the fiscal year ended June 30, 2007 was $1,020,000
      compared to $1,039,000 for the previous year.  Basic and diluted
      earnings per share for both periods was $0.76.  The Corporation
      realized a decrease of $37,000 in net interest income resulting from a slight
      decrease in the net interest margin.  Noninterest expense also
      increased $72,000 primarily due to normal increases in compensation and benefits
      expense and increased professional fees resulting from new government
      regulations and requirements.  The decreases to net income were
      partially offset by a decrease of $71,000 in provision for loan losses resulting
      from the resolution of problem loans that had loss allocations during the prior
      year as well as a decrease in the average balance of loans.





2





Income
      tax expense also decreased $21,000 for the current fiscal year due to decreased
      income before income taxes.





On
      July
      13, 2007, the Board of Directors declared a quarterly cash dividend of $0.16
      per
      share for record holders as of July 31, 2007.  The dividend will be
      payable on August 15, 2007.  At June 30, 2007, Peoples-Sidney
      Financial Corporation had assets of $138.3 million with $15.3 million in
      shareholders’ equity.





Additionally,
      Mr. Stewart announced that the Annual Meeting of the Corporation would be held
      on Friday, October 12, 2007 at 11:00 a.m. at the Sidney Holiday
      Inn.  The record date for voting purposes will be August 31,
      2007.





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.