Exhibit
99.1




For
Release:   April 16, 2008
 
 Contact:
              Douglas
      Stewart, President-CEODebra
      Geuy, Chief Financial Officer
  PEOPLES-SIDNEY
FINANCIAL CORPORATION
 ANNOUNCES
EARNINGS AND DIVIDEND
 Sidney,
Ohio OTCBB - “PSFC”
  Douglas
Stewart, President and CEO of Peoples-Sidney Financial Corporation, parent
company of Peoples Federal Savings and Loan Association, announced today the
Corporation’s results for the third quarter of the fiscal year ending June 30,
2008 and the year to date results for the period ending March 31, 2008, as well
as declaration of its regular quarterly dividend to paid to its
shareholders.
 
 Net
income for the quarter ended March 31, 2008 was $194,000, or $0.14 basic and
diluted earnings per share.  This compares to $255,000, or $0.19 basic
and diluted earnings per share for the same period ended March 31,
2007.  This represents a decrease in net income of
$61,000.  The most significant change occurred in net interest income,
which decreased $55,000 during the current quarter.  This was the
result of a decrease in interest income due to the soft demand for interest
income producing mortgage products coupled with an increase in interest expense
resulting from an increase in the average balance of deposits plus a higher
average cost of funds as compared to the same period a year
ago.  Noninterest expense increased $26,000 during the current
quarter.  The increase in noninterest expense resulted primarily from
an increase in professional services relating to the going private transaction
and an increase in computer processing relating to the addition of Internet
banking.  Provision for loan losses increased $10,000 the three months
ended March 31, 2008 as compared to the three months ended March 31,
2007.  These decreases to net income were partially offset by a
decrease of $33,000 in income tax expense.
 
 The
Corporation’s year to date net income for the nine months ended March 31, 2008
was $625,000, or $0.47 basic and diluted earnings per share.  This
compares to $825,000, or $0.62
basic and diluted earnings per share for the same period a year
ago.  This year to date comparison represents a decrease in net income
of $200,000 for the current year.  For the nine-month comparison, the
Corporation realized an increase of $163,000 in provision for loan losses from a
negative provision of $69,000 for the nine months ended March 31, 2007 to a
provision for loan losses of $94,000 for the current nine-month
period.  The increase in provision for loan losses in the current year
to date is largely due to increases in specific allocations on impaired
loans.  Also contributing to the decrease in net income was an
increase in noninterest expense of $72,000 and a decrease of $71,000 in net
interest income during the current period.  A decrease of $105,000 in
income tax expense provided a partial offset to the decline in net
income.
 
 At its
regular meeting held April 10, 2008, the Board of Directors declared a regular
quarterly dividend of $0.16 per share for record holders as of April 30, 2008
and payable on May 15, 2008.
 
 Stewart
commented, “We continue to manage our asset quality by providing appropriate
reserve allowances for probable losses on loans due to the general downturn of
the economy and the housing market.  We sacrifice some earnings
potential by remaining conservative in our loan underwriting policies and
procedures to protect the quality in our loan portfolio, in an attempt to keep
any unforeseen losses at a minimum.”
 
 Assets of
the Corporation at March 31, 2008 totaled $136.8 million with shareholders’
equity of $15.5 million.
 
 Peoples
Federal operates from its main office and separate drive-through facility in
downtown Sidney and its branches in Anna, Jackson Center and the Sidney Wal-Mart
Supercenter.
 
 When used
in this press release or other public or shareholder communications, in filings
by the Corporation with the Securities and Exchange Commission and in oral
statements made with the approval of an authorized executive office, the words
or phrases “should result,” “will likely result,” “will enable,” “are expected
to,” “is anticipated,” “estimate,” “project” or similar expressions are intended
to identify “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995.  Such statements are subject
to certain risks and uncertainties, including changes in economic conditions in
the Corporation’s market area, changes in policies by regulatory agencies,
fluctuations in interest rates, demand for loans in the Corporation’s market
area and competition, that could cause actual results to differ materially from
historical results and those presently anticipated or projected.  The
Corporation wishes to caution readers not to place undue reliance on such
forward-looking statements, which speak only as of the date made.  The
Corporation wishes to advise readers that the factors listed could affect the
Corporation’s financial performance and could cause the Corporation’s actual
results for future periods to differ materially from any opinions or statements
expressed with respect to future periods in any current statements.
  The
Corporation does not undertake-and specifically declines any obligation-to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.