**Exhibit
      99.1**


**For
      Release:  Tuesday, April 17, 2007**





**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 the fiscal year ending
      June 30, 2007 and year to date results for the period ending March 31, 2007,
      as
      well as a regular quarterly dividend to be paid to its
      shareholders.





Net
      income for the quarter ended March 31, 2007 was $255,000, or $0.19 basic and
      diluted earnings per share compared to $242,000, or $0.18 basic and diluted
      earnings per share for the same quarter in 2006.  The increase of
      $13,000 in net income for the current quarter was primarily the result of a
      decrease of $30,000 in provision for loan losses coupled with an increase of
      $14,000 in net interest income.  This was partially offset by an
      increase of $26,000 in noninterest expense and an increase of $6,000 in income
      taxes.  The decrease in provision for loan losses resulted from
      $30,000 in required provisions during the prior period primarily related to
      an
      increase in the balance of commercial loans with a loss
      classification.  During the current three-month period no additional
      provisions were required as allowance balances remained at adequate levels
      for
      the corresponding classified loan amounts.  The increase in
      noninterest expense was primarily due to an increase of $12,000 in professional
      services during the current period relating to the addition of third party
      reviews to assist the Corporation with regulatory compliance.





The
      Corporation’s year to date net income for the nine months ended March 31, 2007
      was $825,000, or $0.62 basic and diluted earnings per share compared to
      $767,000, or $0.56 basic and diluted earnings per share for the same period
      a
      year ago.  The year to date comparison represents an increase in net
      income of $58,000 for the current year.  For the nine-month
      comparison, the Corporation realized a decrease of $117,000 in provision for
      loan losses from $48,000 for the nine months ended March 31, 2006 to a negative
      provision of $69,000 for the current nine months.  This offset a
      decrease of $7,000 in net interest income, a decrease of $4,000 in noninterest
      income and an increase of $26,000













**Page
      2**








and
      $21,000 in noninterest expense and income tax expense
      respectively.  The negative provision for loan losses was primarily
      the result of the positive resolution of a commercial loan that had a specific
      loss allocation of $80,000 at June 30, 2006.





On
      April
      11, 2007, the Board of Directors declared a quarterly dividend of $0.16 per
      share for record holders as of April 30, 2007.  The dividend will be
      payable on May 15, 2007.  At March 31, 2007, Peoples-Sidney Financial
      Corporation had assets of $138.7 million and shareholders’ equity of $15.5
      million.





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.