----

----

|   | T | QUARTERLY                  REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934 |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------|

|   | o | TRANSITION                  REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE                  ACT |
|--------|---|---------------------------------------------------------------------------------------------------|

**PEOPLES-SIDNEY      FINANCIAL CORPORATION**

| Delaware                                                                                     | 31-1499862                                       |
|----------------------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation                or organization) | (IRS                Employer Identification No.) |

| 101                E. Court Street, Sidney, Ohio  45365 |
|-------------------------------------------------------------------|
| (Address                of principal executive offices)           |

| (937)                492-6129                    |
|--------------------------------------------------|
| (Issuer’s                telephone number) |

----

----

----

PEOP

|                                          |   |                                                                                                     |   | Page   |
|-----------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|--------|
|                                          |   |                                                                                                     |   |   |
| PART                I - FINANCIAL INFORMATION |   |                                                                                                     |
|                                          |   |                                                                                                     |   |   |
| Item                1.                        |   | Financial                Statements (Unaudited)                                                          |   |   |
|                                          |   |                                                                                                     |   |   |
|                                          |   | Consolidated                Balance Sheets                                                               |   | 3      |
|                                          |   |                                                                                                     |   |   |
|                                          |   | Consolidated                Statements of Income                                                         |   | 4      |
|                                          |   |                                                                                                     |   |   |
|                                          |   | Consolidated                Statements of Comprehensive                Income                            |   | 5      |
|                                          |   |                                                                                                     |   |   |
|                                          |   | Condensed                Consolidated Statements of Changes in                Shareholders’ Equity |   | 6      |
|                                          |   |                                                                                                     |   |   |
|                                          |   | Consolidated                Statements of Cash Flows                                                     |   | 7      |
|                                          |   |                                                                                                     |   |   |
|                                          |   | Notes                to Consolidated Financial                Statements                                 |   | 8      |
|                                          |   |                                                                                                     |   |   |
| Item                2.                        |   | Management’s                Discussion and Analysis                                                |   | 16     |
|                                          |   |                                                                                                     |   |   |
| Item                3.                        |   | Controls                and Procedures                                                                   |   | 24     |
|                                          |   |                                                                                                     |   |   |
| PART                II - OTHER INFORMATION    |   |                                                                                                     |
|                                          |   |                                                                                                     |   |   |
| Item                1.                        |   | Legal                Proceedings                                                                         |   | 25     |
|                                          |   |                                                                                                     |   |   |
| Item                2.                        |   | Unregistered                Sales of Equity Securities and Use of                Proceeds                |   | 25     |
|                                          |   |                                                                                                     |   |   |
| Item                3.                        |   | Defaults                Upon Senior Securities                                                           |   | 25     |
|                                          |   |                                                                                                     |   |   |
| Item                4.                        |   | Submission                of Matters to a Vote of Security                Holders                        |   | 25     |
|                                          |   |                                                                                                     |   |   |
| Item                5.                        |   | Other                Information                                                                         |   | 25     |
|                                          |   |                                                                                                     |   |   |
| Item                6.                        |   | Exhibits                                                                                                 |   | 25     |
|                                          |   |                                                                                                     |   |   |
| SIGNATURES                                    |   | 26                                                                                                       |
|                                          |   |                                                                                                     |   |   |
| INDEX                TO EXHIBITS              |   | 27                                                                                                       |

----

*Index*

PEOP

----

Item

|                                                                                                                  |   | March                31,2007 |        |   | June                30,2006 |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|--------|-----------------------------|--------|
|                                                                                                                  |   | (Unaudited)                  |        |   |                        |   |
| **ASSETS**                                                                                                            |   |                         |        |   |                        |   |
| Cash                and due from financial institutions                                                               |   | $                            | 1,108,862   |   |                        | $      | 899,313 |   |
| Interest-bearing                deposits in other financial institutions                                              |   |                         | 4,101,928   |   |                        |   | 3,815,616 |   |
| Overnight                deposits                                                                                     |   |                         | 1,000,000   |   |                        |   | -- |   |
| Total                cash and cash equivalents                                                                        |   |                         | 6,210,790   |   |                        |   | 4,714,929 |   |
| Securities                available for sale                                                                          |   |                         | 4,888,440   |   |                        |   | 5,250,170 |   |
| Federal                Home Loan Bank stock                                                                           |   |                         | 1,820,800   |   |                        |   | 1,768,100 |   |
| Loans,                net of allowance of $628,000 and $893,600                                                       |   |                         | 122,634,870 |   |                        |   | 124,171,193 |   |
| Accrued                interest receivable                                                                            |   |                         | 851,217     |   |                        |   | 827,725 |   |
| Premises                and equipment, net                                                                            |   |                         | 1,879,655   |   |                        |   | 1,974,672 |   |
| Other                real estate owned                                                                                |   |                         | 254,341     |   |                        |   | 100,421 |   |
| Other                assets                                                                                           |   |                         | 188,207     |   |                        |   | 240,258 |   |
|                                                                                                                  |   |                         |        |   |                        |   |   |   |
| Total                assets                                                                                           |   | $                            | 138,728,320 |   |                        | $      | 139,047,468 |   |
|                                                                                                                  |   |                         |        |   |                        |   |   |   |
|                                                                                                                  |   |                         |        |   |                        |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                         |   |                         |        |   |                        |   |   |   |
| Deposits                                                                                                              |   | $                            | 82,699,444  |   |                        | $      | 82,819,038 |   |
| Borrowed                funds                                                                                         |   |                         | 38,558,230  |   |                        |   | 38,511,268 |   |
| Accrued                interest payable and other liabilities                                                         |   |                         | 434,422     |   |                        |   | 460,821 |   |
| Total                liabilities                                                                                      |   |                         | 121,692,096 |   |                        |   | 121,791,127 |   |
|                                                                                                                  |   |                         |        |   |                        |   |   |   |
| Common                stock in ESOP subject to repurchase obligation                                                  |   |                         | 1,562,281   |   |                        |   | 1,756,829 |   |
|                                                                                                                  |   |                         |        |   |                        |   |   |   |
| Preferred                stock, $.01 par value, 500,000 shares authorized, none issued and                outstanding |   |                         | --          |   |                        |   | -- |   |
| Common                stock, $.01 par value, 3,500,000 shares authorized, 1,785,375 shares                issued      |   |                         | 16,675      |   |                        |   | 16,675 |   |
| Additional                paid-in capital                                                                             |   |                         | 9,281,294   |   |                        |   | 9,065,163 |   |
| Retained                earnings                                                                                      |   |                         | 11,810,957  |   |                        |   | 11,764,118 |   |
| Treasury                stock, 424,327 and 392,727 shares, at cost                                                    |   |                         | (5,198,322  | )      |                        |   | (4,725,278 | ) |
| Unearned                employee stock ownership plan shares                                                          |   |                         | (364,177    | )      |                        |   | (457,602 | ) |
| Accumulated                other comprehensive loss                                                                   |   |                         | (72,484     | )      |                        |   | (163,564 | ) |
| Total                shareholders’ equity                                                                       |   |                         | 15,473,943  |   |                        |   | 15,499,512 |   |
|                                                                                                                  |   |                         |        |   |                        |   |   |   |
| Total                liabilities and shareholders’ equity                                                       |   | $                            | 138,728,320 |   |                        | $      | 139,047,468 |   |

----

----

*Index*

PEO

----

|                                                               |   | Three                Months EndedMarch                31, |      |   | Nine                Months EndedMarch                31, |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|--------|----------------------------------------------------------|--------|
|                                                               |   | 2007                                                      |      |   | 2006                                                     |   |   | 2007 |   |   | 2006 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |
| Interest                income                                     |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |
| Loans,                including fees                               |   | $                                                         | 2,146,657 |   |                                                     | $      | 1,996,720 |   |   | $ | 6,384,618 |   |   | $ | 5,929,691 |   |
| Securities                                                         |   |                                                      | 50,089    |   |                                                     |   | 52,465 |   |   |   | 158,825 |   |   |   | 157,964 |   |
| Demand,                time and overnight deposits                 |   |                                                      | 37,938    |   |                                                     |   | 32,954 |   |   |   | 96,959 |   |   |   | 88,523 |   |
| Dividends                on Federal Home Loan Bank Stock           |   |                                                      | 28,621    |   |                                                     |   | 24,371 |   |   |   | 81,373 |   |   |   | 69,496 |   |
| Total                interest income                               |   |                                                      | 2,263,305 |   |                                                     |   | 2,106,510 |   |   |   | 6,721,775 |   |   |   | 6,245,674 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                    |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                           |   |                                                      | 545,128   |   |                                                     |   | 435,143 |   |   |   | 1,558,338 |   |   |   | 1,298,832 |   |
| Borrowed                funds                                      |   |                                                      | 510,693   |   |                                                     |   | 478,094 |   |   |   | 1,586,333 |   |   |   | 1,362,668 |   |
| Total                interest expense                              |   |                                                      | 1,055,821 |   |                                                     |   | 913,237 |   |   |   | 3,144,671 |   |   |   | 2,661,500 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                 |   |                                                      | 1,207,484 |   |                                                     |   | 1,193,273 |   |   |   | 3,577,104 |   |   |   | 3,584,174 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses                           |   |                                                      | 210       |   |                                                     |   | 29,787 |   |   |   | (68,887 | ) |   |   | 47,563 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income after provision for loan losses |   |                                                      | 1,207,274 |   |                                                     |   | 1,163,486 |   |   |   | 3,645,991 |   |   |   | 3,536,611 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest                income                                  |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Service                fees and other charges                      |   |                                                      | 31,706    |   |                                                     |   | 29,581 |   |   |   | 96,638 |   |   |   | 97,734 |   |
| Gain                on sale of real estate owned                   |   |                                                      | 816       |   |                                                     |   | 2,255 |   |   |   | 696 |   |   |   | 2,912 |   |
| Total                noninterest income                            |   |                                                      | 32,522    |   |                                                     |   | 31,836 |   |   |   | 97,334 |   |   |   | 100,646 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest                expense                                 |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                and benefits                           |   |                                                      | 439,936   |   |                                                     |   | 434,684 |   |   |   | 1,303,476 |   |   |   | 1,284,519 |   |
| Director                fees                                       |   |                                                      | 24,300    |   |                                                     |   | 24,300 |   |   |   | 72,900 |   |   |   | 72,900 |   |
| Occupancy                and equipment                             |   |                                                      | 103,529   |   |                                                     |   | 98,711 |   |   |   | 280,825 |   |   |   | 289,035 |   |
| Computer                processing                                 |   |                                                      | 89,473    |   |                                                     |   | 84,041 |   |   |   | 272,160 |   |   |   | 250,284 |   |
| Professional                services                               |   |                                                      | 47,247    |   |                                                     |   | 34,800 |   |   |   | 129,460 |   |   |   | 137,297 |   |
| State                franchise taxes                               |   |                                                      | 51,194    |   |                                                     |   | 54,451 |   |   |   | 160,094 |   |   |   | 153,975 |   |
| Other                                                              |   |                                                      | 86,874    |   |                                                     |   | 85,873 |   |   |   | 245,388 |   |   |   | 249,503 |   |
| Total                noninterest expense                           |   |                                                      | 842,553   |   |                                                     |   | 816,860 |   |   |   | 2,464,303 |   |   |   | 2,437,513 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                          |   |                                                      | 397,243   |   |                                                     |   | 378,462 |   |   |   | 1,279,022 |   |   |   | 1,199,744 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense                                  |   |                                                      | 142,000   |   |                                                     |   | 136,400 |   |   |   | 454,300 |   |   |   | 432,800 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                          |   | $                                                         | 255,243   |   |                                                     | $      | 242,062 |   |   | $ | 824,722 |   |   | $ | 766,944 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per common share - basic                   |   | $                                                         | 0.19      |   |                                                     | $      | 0.18 |   |   | $ | 0.62 |   |   | $ | 0.56 |   |
|                                                               |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per common share - diluted                 |   | $                                                         | 0.19      |   |                                                     | $      | 0.18 |   |   | $ | 0.62 |   |   | $ | 0.56 |   |

----

----

*Index*

PEO

----

|                                                                                                 |   | Three                Months EndedMarch                31, |    |   | Nine                Months EndedMarch                31, |   |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|--------|----------------------------------------------------------|--------|
|                                                                                                 |   | 2007                                                      |    |   | 2006                                                     |   |   | 2007 |   |   | 2006 |   |
|                                                                                                 |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |
|                                                                                                 |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |
| Net                income                                                                            |   | $                                                         | 255,243 |   |                                                     | $      | 242,062 |   |   | $ | 824,722 |   |   | $ | 766,944 |   |
|                                                                                                 |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss)                                                     |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains and (losses) on available-for-sale                securities |   |                                                      | 35,210  |   |                                                     |   | (47,900 | ) |   |   | 138,000 |   |   |   | (144,970 | ) |
| Tax                effect                                                                            |   |                                                      | (11,972 | )      |                                                     |   | 16,286 |   |   |   | (46,920 | ) |   |   | 49,290 |   |
| Other                comprehensive income (loss)                                                     |   |                                                      | 23,238  |   |                                                     |   | (31,614 | ) |   |   | 91,080 |   |   |   | (95,680 | ) |
|                                                                                                 |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                  |   | $                                                         | 278,481 |   |                                                     | $      | 210,448 |   |   | $ | 915,802 |   |   | $ | 671,264 |   |

----

----

*Index*

PEO

----

|                                                                                                                                                                                                                                                                                                                                              |   | Three                Months EndedMarch                31, |       |   | Nine                Months EndedMarch                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|------------|--------|----------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                              |   | 2007                                                      |       |   | 2006                                                     |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |
| Balance,                beginning of period                                                                                                                                                                                                                                                                                                       |   | $                                                         | 15,261,059 |   |                                                     | $      | 17,336,153 |   |   | $ | 15,499,512 |   |   | $ | 17,761,391 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                income for period                                                                                                                                                                                                                                                                                                              |   |                                                      | 255,243    |   |                                                     |   | 242,062 |   |   |   | 824,722 |   |   |   | 766,944 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Cash                dividends, $.16 and $.16 per share for the three months ended March                31,                2007 and 2006, $.58 and $.56 per share for the nine months ended                March 31,                2007 and 2006                                                                                                  |   |                                                      | (211,528   | )      |                                                     |   | (216,793 | ) |   |   | (777,883 | ) |   |   | (761,776 | ) |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Purchase                of 5,000 shares of treasury stock for the three months ended March                31,                2006, and 31,600 and 32,500 shares of treasury stock for the nine                months                ended March 31, 2007 and 2006, at cost                                                                        |   |                                                      | --         |   |                                                     |   | (75,000 | ) |   |   | (473,044 | ) |   |   | (499,062 | ) |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Commitment                to release 2,654 and 2,799employee stock ownership plan shares for                the                three months ended March 31, 2007 and 2006, and 7,962 and 8,397 employee                stock ownership plan shares for the nine months ended March 31, 2007                and                2006, at fair value |   |                                                      | 36,277     |   |                                                     |   | 41,534 |   |   |   | 115,008 |   |   |   | 124,525 |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Change                in fair value of common stock subject to repurchase obligation for                the                three and nine months ended March 31, 2007                                                                                                                                                                             |   |                                                      | 109,654    |   |                                                     |   | -- |   |   |   | 194,548 |   |   |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Change                in fair value on securities available for sale, net of tax                                                                                                                                                                                                                                                                  |   |                                                      | 23,238     |   |                                                     |   | (31,614 | ) |   |   | 91,080 |   |   |   | (95,680 | ) |
|                                                                                                                                                                                                                                                                                                                                              |   |                                                      |       |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                end of period                                                                                                                                                                                                                                                                                                             |   | $                                                         | 15,473,943 |   |                                                     | $      | 17,296,342 |   |   | $ | 15,473,943 |   |   | $ | 17,296,342 |   |

----

----

*Index*

PEO

----

|                                                                                                    |   | Nine                Months EndedMarch                31, |       |
|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|------------|
|                                                                                                    |   | 2007                                                     |       |   | 2006 |   |
| Cash                flows from operating activities                                                     |   |                                                     |       |   |   |   |
| Net                income                                                                               |   | $                                                        | 824,722    |   |   | $ | 766,944 |   |
| Adjustments                to reconcile net income to net cash from operating                activities |   |                                                     |       |   |   |   |   |   |
| Depreciation                                                                                            |   |                                                     | 121,945    |   |   |   | 137,335 |   |
| Provision                for loan losses                                                                |   |                                                     | (68,887    | ) |   |   | 47,563 |   |
| Net                accretion on securities                                                              |   |                                                     | (270       | ) |   |   | (270 | ) |
| Proceeds                from sale of loans in secondary market                                          |   |                                                     | 82,356     |   |   |   | -- |   |
| Loans                disbursed for sale in secondary market                                             |   |                                                     | (81,500    | ) |   |   | -- |   |
| Gain                on sale of loans                                                                    |   |                                                     | (2,340     | ) |   |   | -- |   |
| Gain                on sale of real estate owned                                                        |   |                                                     | (696       | ) |   |   | (2,912 | ) |
| FHLB                stock dividends                                                                     |   |                                                     | (52,700    | ) |   |   | (69,300 | ) |
| Compensation                expense for ESOP shares                                                     |   |                                                     | 115,008    |   |   |   | 124,525 |   |
| Change                in:                                                                               |   |                                                     |       |   |   |   |   |   |
| Accrued                interest receivable and other assets                                             |   |                                                     | (16,877    | ) |   |   | (104,587 | ) |
| Accrued                expense and other liabilities                                                    |   |                                                     | (26,399    | ) |   |   | (7,395 | ) |
| Deferred                loan fees                                                                       |   |                                                     | (21,321    | ) |   |   | 4,219 |   |
| Net                cash from operating activities                                                       |   |                                                     | 873,041    |   |   |   | 896,122 |   |
|                                                                                                    |   |                                                     |       |   |   |   |   |   |
| Cash                flows from investing activities                                                     |   |                                                     |       |   |   |   |   |   |
| Proceeds                from maturities of available for sale securities                                |   |                                                     | 500,000    |   |   |   | -- |   |
| Net                change in loans                                                                      |   |                                                     | 1,364,190  |   |   |   | (1,637,533 | ) |
| Premises                and equipment expenditures                                                      |   |                                                     | (26,928    | ) |   |   | (48,174 | ) |
| Proceeds                from sale of real estate owned                                                  |   |                                                     | 109,117    |   |   |   | 89,703 |   |
| Net                cash from investing activities                                                       |   |                                                     | 1,946,379  |   |   |   | (1,596,004 | ) |
|                                                                                                    |   |                                                     |       |   |   |   |   |   |
| Cash                flows from financing activities                                                     |   |                                                     |       |   |   |   |   |   |
| Net                change in deposits                                                                   |   |                                                     | (119,594   | ) |   |   | (2,236,367 | ) |
| Net                change in short-term FHLB advances                                                   |   |                                                     | (3,500,000 | ) |   |   | (1,500,000 | ) |
| Repayments                of long-term FHLB advances                                                    |   |                                                     | (1,453,038 | ) |   |   | (1,654,721 | ) |
| Proceeds                from long-term FHLB advances                                                    |   |                                                     | 5,000,000  |   |   |   | 7,000,000 |   |
| Cash                dividends paid                                                                      |   |                                                     | (777,883   | ) |   |   | (761,776 | ) |
| Purchase                of treasury stock                                                               |   |                                                     | (473,044   | ) |   |   | (499,062 | ) |
| Net                cash from financing activities                                                       |   |                                                     | (1,323,559 | ) |   |   | 348,074 |   |
|                                                                                                    |   |                                                     |       |   |   |   |   |   |
| Net                change in cash and cash equivalents                                                  |   |                                                     | 1,495,861  |   |   |   | (351,808 | ) |
| Cash                and cash equivalents at beginning of period                                         |   |                                                     | 4,714,929  |   |   |   | 5,321,196 |   |
|                                                                                                    |   |                                                     |       |   |   |   |   |   |
| Cash                and cash equivalents at end of period                                               |   | $                                                        | 6,210,790  |   |   | $ | 4,969,388 |   |
|                                                                                                    |   |                                                     |       |   |   |   |   |   |
| Supplemental                disclosures of cash flow information                                        |   |                                                     |       |   |   |   |   |   |
| Cash                paid during the period for                                                          |   |                                                     |       |   |   |   |   |   |
| Interest                                                                                                |   | $                                                        | 3,125,613  |   |   | $ | 2,634,351 |   |
| Income                taxes                                                                             |   |                                                     | 395,000    |   |   |   | 315,000 |   |
|                                                                                                    |   |                                                     |       |   |   |   |   |   |
| Noncash                transactions                                                                     |   |                                                     |       |   |   |   |   |   |
| Transfer                from loans to other real estate owned                                           |   | $                                                        | 262,341    |   |   | $ | 187,212 |   |

----

----

*Index*

PEO

----

**NOTE      1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

----

----

*Index*

----

**NOTE      1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES **

*Share Based      Payment*

----

----

*Index*

----

**NOTE      2 – SECURITIES AVAILABLE FOR SALE**

|                                    |   | FairValue |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |
|-----------------------------------------|--------|-----------|-----------|--------|----------------------|--------|--------|-----------------------|--------|
| March                31, 2007           |   |      |      |   |                 |   |   |                  |   |
| U.S.                Government agencies |   | $         | 4,888,440 |   |                 | $      | --     |                  |   | $ | (109,824 | ) |
|                                    |   |      |      |   |                 |   |   |                  |   |   |   |   |
| June                30, 2006            |   |      |      |   |                 |   |   |                  |   |   |   |   |
| U.S.                Government agencies |   | $         | 5,250,170 |   |                 | $      | --     |                  |   | $ | (247,824 | ) |

|                                                  |   | FairValue |      |
|-------------------------------------------------------|--------|-----------|-----------|
|                                                  |   |      |      |
| Due                after one year through five years  |   | $         | 2,983,440 |   |
| Due                after five years through ten years |   |      | 1,905,000 |   |
|                                                  |   |      |      |   |
|                                                  |   | $         | 4,888,440 |   |

|                                       |   | Less                  than 12 Months |    |   | 12                  Months or More |   |   | Total     |   |
|--------------------------------------------|--------|--------------------------------------|---------|--------|------------------------------------|--------|--------|-----------|--------|
| Description                  of Securities |   | FairValue                            |    |   | UnrealizedLoss                     |   |   | FairValue |   |   | UnrealizedLoss |   |   | FairValue |   |   | UnrealizedLoss |   |
|                                       |   |                                 |    |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |   |
| March                  31, 2007            |   |                                 |    |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                                 |    |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |   |
| U.S.                  Government agencies  |   | $                                    | --      |   |                               | $      | --     |      |   | $ | 4,888,440 |   |   | $ | (109,824 | ) |   | $ | 4,888,440 |   |   | $ | (109,824 | ) |
|                                       |   |                                 |    |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                  30, 2006             |   |                                 |    |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                                 |    |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.                  Government agencies  |   | $                                    | 497,970 |   |                               | $      | (2,030 | )         |   | $ | 4,752,200 |   |   | $ | (245,794 | ) |   | $ | 5,250,170 |   |   | $ | (247,824 | ) |

----

----

*Index*

----

**NOTE      3 - LOANS**

|                                                    |   | March                31,2007 |        |   | June                30,2006 |   |
|---------------------------------------------------------|--------|------------------------------|-------------|--------|-----------------------------|--------|
| Mortgage                loans:                          |   |                         |        |   |                        |   |
| 1-4                family residential                   |   | $                            | 88,249,541  |   |                        | $      | 90,115,467 |   |
| Multi-family                residential                 |   |                         | 4,206,333   |   |                        |   | 2,861,027 |   |
| Commercial                real estate                   |   |                         | 13,458,246  |   |                        |   | 12,972,451 |   |
| Real                estate construction and development |   |                         | 1,576,104   |   |                        |   | 2,982,155 |   |
| Land                                                    |   |                         | 3,003,716   |   |                        |   | 2,362,925 |   |
| Total                mortgage loans                     |   |                         | 110,493,940 |   |                        |   | 111,294,025 |   |
| Consumer                loans                           |   |                         | 5,382,688   |   |                        |   | 6,402,995 |   |
| Commercial                loans                         |   |                         | 7,750,276   |   |                        |   | 7,753,128 |   |
| Total                loans                              |   |                         | 123,626,904 |   |                        |   | 125,450,148 |   |
| Less:                                                   |   |                         | (628,000    | )      |                        |   | (893,600 | ) |
| Allowance                for loan losses                |   |                         | (364,034    | )      |                        |   | (385,355 | ) |
| Deferred                loan fees                       |   | $                            | 122,634,870 |   |                        | $      | 124,171,193 |   |

|                                          |   | Three                Months EndedMarch                31, |    |   | Nine                Months EndedMarch                31, |   |
|-----------------------------------------------|--------|-----------------------------------------------------------|---------|--------|----------------------------------------------------------|--------|
|                                          |   | 2007                                                      |    |   | 2006                                                     |   |   | 2007 |   |   | 2006 |   |
|                                          |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |
|                                          |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |
| Balance                at beginning of period |   | $                                                         | 696,000 |   |                                                     | $      | 839,000 |   |   | $ | 893,600 |   |   | $ | 835,500 |   |
| Provision                for losses           |   |                                                      | 210     |   |                                                     |   | 29,787 |   |   |   | (68,887 | ) |   |   | 47,563 |   |
| Charge-offs                                   |   |                                                      | (70,596 | )      |                                                     |   | (2,057 | ) |   |   | (200,307 | ) |   |   | (16,674 | ) |
| Recoveries                                    |   |                                                      | 2,386   |   |                                                     |   | 1,070 |   |   |   | 3,594 |   |   |   | 1,411 |   |
|                                          |   |                                                      |    |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at end of period       |   | $                                                         | 628,000 |   |                                                     | $      | 867,800 |   |   | $ | 628,000 |   |   | $ | 867,800 |   |

----

----

*Index*

----

**NOTE      3 – LOANS **

|                                                                                   |   | March                  31,2007 |   |   | June                  30,2006 |   |
|----------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                                                                                   |   |                           |   |   |                          |   |
| Period-end                  impaired loans with no allowance for loan losses allocated |   | $                              | --     |   |                          | $      | -- |   |
| Period-end                  impaired loans with allowance for loan losses allocated    |   |                           | 28,000 |   |                          |   | 232,000 |   |
| Amount                  of the allowance allocated to impaired loans                   |   |                           | 12,000 |   |                          |   | 209,000 |   |

|                                                        |   | Three                Months EndedMarch                31, |   |   | Nine                Months EndedMarch                31, |   |
|-------------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                                                        |   | 2007                                                      |   |   | 2006                                                     |   |   | 2007 |   |   | 2006 |   |
|                                                        |   |                                                      |   |   |                                                     |   |   |   |   |   |   |   |
|                                                        |   |                                                      |   |   |                                                     |   |   |   |   |   |   |   |
| Average                of impaired loans during the period  |   | $                                                         | 70,000 |   |                                                     | $      | 234,000 |   |   | $ | 90,000 |   |   | $ | 208,000 |   |
| Interest                income recognized during the period |   |                                                      | 335    |   |                                                     |   | 4,085 |   |   |   | 2,206 |   |   |   | 11,094 |   |
| Cash-basis                interest income recognized        |   |                                                      | 335    |   |                                                     |   | 730 |   |   |   | 2,206 |   |   |   | 2,761 |   |

|                                                        |   | March                31,2007 |    |   | June                30,2006 |   |
|-------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------|--------|
|                                                        |   |                         |    |   |                        |   |
| Loans                past due over 90 days still on accrual |   | $                            | 93,000  |   |                        | $      | 375,000 |   |
| Nonaccrual                loans                             |   |                         | 908,000 |   |                        |   | 1,525,000 |   |

**NOTE      4 – MORTGAGE BANKING ACTIVITIES**

----

----

*Index*

----

**NOTE      5 - BORROWED FUNDS**

|                                                                                                                           |   | March                31,2007 |       |   | June                30,2006 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
| Cash                management advance, variable rate 5.43% at June 30, 2006                                                   |   | $                            | --         |   |                        | $      | 3,500,000 |   |
| 4.88%                FHLB fixed-rate advance, due January 25, 2008                                                             |   |                         | 2,000,000  |   |                        |   | 2,000,000 |   |
| 6.13%                FHLB fixed-rate advance, due June 25, 2008                                                                |   |                         | 7,000,000  |   |                        |   | 7,000,000 |   |
| 5.16%                FHLB fixed-rate advance, due March 13, 2009                                                               |   |                         | 3,000,000  |   |                        |   | 3,000,000 |   |
| 6.00%                FHLB convertible advance, fixed-rate until June 2007, due June 11,                2009                    |   |                         | 5,000,000  |   |                        |   | 5,000,000 |   |
| 4.42%                FHLB fixed-rate advance, due July 9, 2010                                                                 |   |                         | 2,000,000  |   |                        |   | 2,000,000 |   |
| 6.27%                FHLB convertible advance, fixed-rate until June 2007, due September                8,                2010 |   |                         | 5,000,000  |   |                        |   | 5,000,000 |   |
| 5.12%                FHLB fixed-rate advance, due October 31, 2011                                                             |   |                         | 5,000,000  |   |                        |   | -- |   |
| 5.30%                select pay mortgage-matched advance, final maturity May 1,                2011                            |   |                         | 568,653    |   |                        |   | 658,357 |   |
| 5.35%                select pay mortgage-matched advance, final maturity July 1,                2011                           |   |                         | 1,179,244  |   |                        |   | 1,507,849 |   |
| 3.92%                select pay mortgage-matched advance, final maturity November 1,                2012                       |   |                         | 500,230    |   |                        |   | 587,902 |   |
| 3.55%                select pay mortgage-matched advance, final maturity March 1,                2013                          |   |                         | 641,929    |   |                        |   | 712,991 |   |
| 4.10%                select pay mortgage-matched advance, final maturity March 1,                2015                          |   |                         | 532,055    |   |                        |   | 716,967 |   |
| 4.09%                select pay mortgage-matched advance, final maturity November 1,                2017                       |   |                         | 505,811    |   |                        |   | 593,068 |   |
| 3.31%                select pay mortgage-matched advance, final maturity April 1,                2019                          |   |                         | 608,572    |   |                        |   | 638,925 |   |
| 4.72%                select pay mortgage-matched advance, final maturity November 1,                2022                       |   |                         | 2,090,044  |   |                        |   | 2,269,998 |   |
| 4.38%                select pay mortgage-matched advance, final maturity December 1,                2022                       |   |                         | 695,491    |   |                        |   | 755,928 |   |
| 3.92%                select pay mortgage-matched advance, final maturity December 1,                2022                       |   |                         | 556,111    |   |                        |   | 638,874 |   |
| 3.64%                select pay mortgage-matched advance, final maturity March 1,                2023                          |   |                         | 1,680,090  |   |                        |   | 1,930,409 |   |
|                                                                                                                           |   |                         |       |   |                        |   |   |   |
|                                                                                                                           |   | $                            | 38,558,230 |   |                        | $      | 38,511,268 |   |

----

----

*Index*

----

**NOTE      5 - BORROWED FUNDS **

| Year                ended March 31, |   |   |       |
|-------------------------------------|--------|--------|------------|
| 2008                                |   | $      | 3,649,439  |   |
| 2009                                |   |   | 11,455,183 |   |
| 2010                                |   |   | 6,288,063  |   |
| 2011                                |   |   | 8,143,987  |   |
| 2012                                |   |   | 5,820,892  |   |
| Thereafter                          |   |   | 3,200,666  |   |
|                                |   |   |       |   |
|                                |   | $      | 38,558,230 |   |

**NOTE      6 - OFF-BALANCE-SHEET ACTIVITIES**

|                                                                    |   | March                31,2007 |      |   | June                30,2006 |   |
|-------------------------------------------------------------------------|--------|------------------------------|-----------|--------|-----------------------------|--------|
|                                                                    |   |                         |      |   |                        |   |
| 1-4                family residential real estate – fixed rate    |   | $                            | 34,000    |   |                        | $      | 239,000 |   |
| 1-4                family residential real estate – variable rate |   |                         | 120,000   |   |                        |   | 448,000 |   |
| Commercial                real estate – variable rate             |   |                         | 215,000   |   |                        |   | -- |   |
| Commercial                lines of credit – variable rate         |   |                         | 5,504,000 |   |                        |   | 4,213,000 |   |
| Home                equity lines of credit – variable rate        |   |                         | 975,000   |   |                        |   | 913,000 |   |

----

----

*Index*

----

**NOTE      6 - OFF-BALANCE-SHEET ACTIVITIES **

**NOTE      7 – EARNINGS PER SHARE**

|                                                                                                             |   | Three                Months EndedMarch                31, |      |   | Nine                Months EndedMarch                31, |   |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|--------|----------------------------------------------------------|--------|
|                                                                                                             |   | 2007                                                      |      |   | 2006                                                     |   |   | 2007 |   |   | 2006 |   |
| Basic                Earnings Per Common Share                                                                   |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |
| Net                income                                                                                        |   | $                                                         | 255,243   |   |                                                     | $      | 242,062 |   |   | $ | 824,722 |   |   | $ | 766,944 |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding                                                        |   |                                                      | 1,361,048 |   |                                                     |   | 1,402,592 |   |   |   | 1,372,877 |   |   |   | 1,413,433 |   |
| Less:  Average                unallocated ESOP shares                                                  |   |                                                      | (32,361   | )      |                                                     |   | (43,194 | ) |   |   | (35,015 | ) |   |   | (45,993 | ) |
| Weighted                average common shares outstanding for basic earnings per common                share     |   |                                                      | 1,328,687 |   |                                                     |   | 1,359,398 |   |   |   | 1,337,862 |   |   |   | 1,367,440 |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per common share                                                                   |   | $                                                         | 0.19      |   |                                                     | $      | 0.18 |   |   | $ | 0.62 |   |   | $ | 0.56 |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                Earnings Per Common Share                                                                 |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                        |   | $                                                         | 255,243   |   |                                                     | $      | 242,062 |   |   | $ | 824,722 |   |   | $ | 766,944 |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding for basic earnings per common                share     |   |                                                      | 1,328,687 |   |                                                     |   | 1,359,398 |   |   |   | 1,337,862 |   |   |   | 1,367,440 |   |
| Add:  Dilutive                effects of assumed exercises of stock options                            |   |                                                      | --        |   |                                                     |   | -- |   |   |   | -- |   |   |   | -- |   |
| Weighted                average common shares and dilutive potential common shares                outstanding    |   |                                                      | 1,328,687 |   |                                                     |   | 1,359,398 |   |   |   | 1,337,862 |   |   |   | 1,367,440 |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per common share                                                                 |   | $                                                         | 0.19      |   |                                                     | $      | 0.18 |   |   | $ | 0.62 |   |   | $ | 0.56 |   |
|                                                                                                             |   |                                                      |      |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Average                stock options not considered in calculation because they were not                dilutive |   |                                                      | 121,063   |   |                                                     |   | 128,898 |   |   |   | 126,324 |   |   |   | 129,062 |   |

----

----

*Index*

----

Item

**Introduction**

**Overview      and Outlook**

**Forward-Looking      Statements**

----

----

*Index*

----

**Financial      Condition**

----

----

*Index*

----

**Results      of Operations**

**Three      Months Ended March 31, 2007 Compared to the Three Months Ended March 31,      2006**

**Net      Income.**

**Net      Interest Income.**

----

----

*Index*

----

**Provision      for Loan Losses.**

----

----

*Index*

----

**Noninterest      income.**

**Noninterest      expense.**

**Income      Tax Expense.**

**Nine      Months Ended March 31, 2007 Compared to the Nine Months Ended March 31,      2006**

**Net      Income.**

**Net      Interest Income.**

----

----

*Index*

----

**Provision      for Loan Losses.**

**Noninterest      income.**

**Noninterest      expense.**

----

----

*Index*

----

**Income      Tax Expense.**

**Liquidity      and Capital Resources**

|                                                                                                    |   | Nine                MonthsEnded                March 31, |     |
|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|----------|
|                                                                                                    |   | 2007                                                     |     |   | 2006 |   |
|                                                                                                    |   | (Dollars                in thousands)                    |     |
|                                                                                                    |   |                                                     |     |   |   |   |
| Net                income                                                                               |   | $                                                        | 825      |   |   | $ | 767 |   |
| Adjustments                to reconcile net income to net cash from operating                activities |   |                                                     | 48  |   |   |   | 129  |   |
| Net                cash from operating activities                                                       |   |                                                     | 873      |   |   |   | 896 |   |
| Net                cash from investing activities                                                       |   |                                                     | 1,947    |   |   |   | (1,596 | ) |
| Net                cash from financing activities                                                       |   |                                                     | (1,324   | ) |   |   | 348 |   |
| Net                change in cash and cash equivalents                                                  |   |                                                     | 1,496    |   |   |   | (352 | ) |
| Cash                and cash equivalents at beginning of period                                         |   |                                                     | 4,715    |   |   |   | 5,321 |   |
|                                                                                                    |   |                                                     |     |   |   |   |   |   |
| Cash                and cash equivalents at end of period                                               |   | $                                                        | 6,211    |   |   | $ | 4,969 |   |

----

----

*Index*

----

|                                                                |   |                     Actual |   |   | For                CapitalAdequacy                Purposes |   |   | To                BeWell-CapitalizedUnder                Prompt CorrectiveAction                Regulations |   |
|---------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------|--------|
|                                                                |   | Amount                                         |   |   | Ratio                                                      |   |   | Amount                                                                                                      |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                                                |   |                                           |   |   |                                                       |   |   | (Dollars                in Thousands)                                                                       |   |   |   |   |   |   |   |
| March                31, 2007                                       |   |                                           |   |   |                                                       |   |   |                                                                                                        |   |   |   |   |   |   |   |   |   |   |
| Total                capital to                risk-weighted assets |   | $                                              | 16,834 |   |                                                       |   | 19.4   | %                                                                                                           |   | $ | 6,955 |   |   |   | 8.0 | % |   | $ | 8,694 |   |   |   | 10.0 | % |
| Tier                1 (core) capital to risk-weighted assets        |   |                                           | 16,366 |   |                                                       |   | 18.8   |                                                                                                        |   |   | 3,477 |   |   |   | 4.0 |   |   |   | 5,216 |   |   |   | 6.0 |   |
| Tier                1 (core) capital to adjusted total assets       |   |                                           | 16,366 |   |                                                       |   | 11.8   |                                                                                                        |   |   | 5,558 |   |   |   | 4.0 |   |   |   | 6,948 |   |   |   | 5.0 |   |
| Tangible                capital to adjusted total assets            |   |                                           | 16,366 |   |                                                       |   | 11.8   |                                                                                                        |   |   | 2,084 |   |   |   | 1.5 |   |   | N/A |   |   |   |   |   |
|                                                                |   |                                           |   |   |                                                       |   |   |                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                30, 2006                                        |   |                                           |   |   |                                                       |   |   |                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                capital to risk-weighted assets                |   | $                                              | 16,048 |   |                                                       |   | 18.9   | %                                                                                                           |   | $ | 6,779 |   |   |   | 8.0 | % |   | $ | 8,473 |   |   |   | 10.0 | % |
| Tier                1 (core) capital to risk-weighted assets        |   |                                           | 15,368 |   |                                                       |   | 18.1   |                                                                                                        |   |   | 3,389 |   |   |   | 4.0 |   |   |   | 5,084 |   |   |   | 6.0 |   |
| Tier                1 (core) capital to adjusted total assets       |   |                                           | 15,368 |   |                                                       |   | 11.0   |                                                                                                        |   |   | 5,576 |   |   |   | 4.0 |   |   |   | 6,970 |   |   |   | 5.0 |   |
| Tangible                capital to adjusted total assets            |   |                                           | 15,368 |   |                                                       |   | 11.0   |                                                                                                        |   |   | 2,091 |   |   |   | 1.5 |   |   | N/A |   |   |   |   |   |

----

----

*Index*

----

Ite

**Disclosure      Controls**

----

----

*Index*

----

| Item                  1. | Legal                  Proceedings |
|--------------------------|------------------------------------|

| Item                  2. | Unregistered                  Sales of Equity Securities and Use of                  Proceeds |
|--------------------------|-----------------------------------------------------------------------------------------------|

| Item                  3. | Defaults                  Upon Senior Securities |
|--------------------------|--------------------------------------------------|

| Item                  4. | Submission                  of Matters to a Vote of Security                  Holders |
|--------------------------|---------------------------------------------------------------------------------------|

| Item                  5. | Other                  Information |
|--------------------------|------------------------------------|

| Item                  6. | Exhibits |
|--------------------------|----------|

----

----

*Index*

PEOP

----

| Date:  | May              15, 2007 |                                                 | /s/                Douglas Stewart |   |
|--------|---------------------------|------------------------------------------------------|------------------------------------|--------|
|   |                      | Douglas                Stewart                       |                               |
|   |                      | President                and Chief Executive Officer |                               |
|   |                      |                                                 |                               |
|   |                      |                                                 |                               |
|   |                      |                                                 |                               |
| Date:  | May              15, 2007 |                                                 | /s/                Debra Geuy      |   |
|   |                      | Debra                Geuy                            |                               |
|   |                      | Chief                Financial Officer               |                               |

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*Index*

PEO

| EXHIBIT                NUMBER |   | DESCRIPTION                                                                                                                                                                          |   |                                                                                                                                                                                                                                                                                                        |
|-------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                           |   | Articles                of Incorporation of Peoples-Sidney Financial Corporation                                                                                                     |   | Incorporated                by reference to the Registration Statement on Form S-1 filed by                Peoples-Sidney Financial Corporation on January 27, 1997 (the “S-1”) with                the Securities and Exchange Commission (the “SEC”), Exhibit                3.1. |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 3.2                           |   | Bylaws                of Peoples-Sidney Financial Corporation                                                                                                                        |   | Incorporated                by reference to the S-1, Exhibit 3.2.                                                                                                                                                                                                                                           |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 10.1                          |   | Employee                Stock Ownership Plan                                                                                                                                         |   | Incorporated                by reference to the S-1, Exhibit 10.1                                                                                                                                                                                                                                           |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 10.2                          |   | Form                of Employment Agreement with Douglas Stewart                                                                                                                     |   | Incorporated                by Pre-Effective Amendment No. 1 to the S-1 filed with the SEC on                March                12, 1997, Exhibit 10.2                                                                                                                                                    |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 10.3                          |   | Form                of Employment Agreements with David R. Fogt, Gary N. Fullenkamp and                Debra                A. Geuy                                                  |   | Incorporated                by Pre-Effective Amendment No. 1 to the S-1 filed with the SEC on                March                12, 1997, Exhibit 10.3                                                                                                                                                    |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 10.4                          |   | Form                of Severance Agreement with Steve Goins                                                                                                                          |   | Incorporated                by Pre-Effective Amendment No. 1 to the S-1 filed with the SEC on                March                12, 1997, Exhibit 10.4                                                                                                                                                    |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 10.5                          |   | 401                (k) Plan                                                                                                                                                          |   | Incorporated                by Pre-Effective Amendment No. 1 to the S-1 filed with the SEC on                March                12, 1997, Exhibit 10.5                                                                                                                                                    |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 10.6                          |   | Peoples-Sidney                Financial Corporation Amended and Restated 1998 Stock Option and                Incentive                Plan                                          |   | Filed                as an exhibit to the Registrant’s Annual Report on Form 10-KSB for the                fiscal year ended June 30, 1999 (File No. 0-22223) and incorporate                herein                by reference.                                                                      |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 10.7                          |   | Peoples-Sidney                Financial Corporation Amended and Restated 1998 Management Recognition                Plan                                                             |   | Filed                as an exhibit to the Registrant’s Annual Report on Form 10-KSB for the                fiscal year ended June 30, 1999 (File No. 0-22223) and incorporate                herein                by reference.                                                                      |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 11                            |   | Statement                Regarding Computation of Earnings per Share                                                                                                                 |   | See                Notes 1 and 6 to the consolidated financial statements, which are                incorporated herein by reference.                                                                                                                                                                       |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 31.1                          |   | Certification                of Principal Executive Officer Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                 |   |                                                                                                                                                                                                                                                                                                        |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 31.2                          |   | Certification                of Principal Financial Officer Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                 |   |                                                                                                                                                                                                                                                                                                        |
|                          |   |                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                        |
| 32                            |   | Certifications                of the Chief Executive Officer and the Chief Financial Officer Pursuant                to                Section 906 of the Sarbanes-Oxley Act of 2002 |   |                                                                                                                                                                                                                                                                                                        |

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