<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

 (Mark One)

     [X]     QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
             EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2002

     [ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from __________ to ____________.

Commission File Number 0-22223
                       -------

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                      ------------------------------------
        (Exact name of small business issuer as specified in its charter)

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

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

                                 (937) 492-6129
                                 --------------
                           (Issuer's telephone number)


As of November 8, 2002, the latest practicable date, 1,448,302 shares of the
issuer's common shares, $.01 par value, were issued and outstanding.


Transitional Small Business Disclosure Format (Check One):

Yes    [ ]       No   [X]


                                                                              1.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION

                                      INDEX

<TABLE>
<CAPTION>
                                                                                              Page
                                                                                              ----
PART I - FINANCIAL INFORMATION

  Item 1.  Financial Statements (Unaudited)

<S>                                                                                            <C>
           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...........................................     15

  Item 3.  Controls and Procedures........................................................     20


Part II - Other Information

  Item 1.  Legal Proceedings..............................................................     21

  Item 2.  Changes in Securities..........................................................     21

  Item 3.  Defaults Upon Senior Securities................................................     21

  Item 4.  Submission of Matters to a Vote of Security Holders............................     21

  Item 5.  Other Information..............................................................     21

  Item 6.  Exhibits and Reports on Form 8-K...............................................     21


SIGNATURES ...............................................................................     22

CERTIFICATIONS............................................................................     23



-------------------------------------------------------------------------------------------------

                                                                                               2.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                          PEOPLES-SIDNEY FINANCIAL CORPORATION
                                               CONSOLIDATED BALANCE SHEETS
                                                      (Unaudited)

-------------------------------------------------------------------------------------------------------------------

Item 1.  Financial Statements
         --------------------
                                                                                 September 30,          June 30,
                                                                                     2002                 2002
                                                                                     ----                 ----
<S>                                                                             <C>                <C>
ASSETS
Cash and due from financial institutions                                        $     1,054,627    $      1,018,337
Interest-bearing deposits in other financial institutions                             3,774,985           3,770,677
Overnight deposits                                                                      300,000             800,000
                                                                                ---------------    ----------------
     Total cash and cash equivalents                                                  5,129,612           5,589,014
Securities available for sale                                                         4,044,320           3,525,750
Federal Home Loan Bank stock                                                          1,492,200           1,474,600
Loans, net                                                                          119,637,189         121,224,773
Accrued interest receivable                                                             887,076             834,744
Premises and equipment, net                                                           1,980,524           2,028,995
Real estate owned                                                                        76,537                  --
Other assets                                                                            142,262             176,432
                                                                                ---------------    ----------------

     Total assets                                                               $   133,389,720    $    134,854,308
                                                                                ===============    ================

LIABILITIES
Deposits                                                                        $    92,772,531    $     94,786,623
Borrowed funds                                                                       22,883,387          22,455,813
Accrued interest payable and other liabilities                                          411,882             417,664
                                                                                ---------------    ----------------
     Total liabilities                                                              116,067,800         117,660,100

SHAREHOLDERS' EQUITY
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                                                    17,854              17,854
Additional paid-in capital                                                           10,690,207          10,689,800
Retained earnings                                                                    11,461,410          11,371,950
Treasury stock, 326,228 and 321,228 shares, at cost                                  (3,763,717)         (3,703,717)
Unearned employee stock ownership plan shares                                          (985,997)         (1,023,928)
Unearned management recognition plan shares                                            (127,088)           (174,746)
Accumulated other comprehensive income                                                   29,251              16,995
                                                                                ---------------    ----------------
     Total shareholders' equity                                                      17,321,920          17,194,208
                                                                                ---------------    ----------------

     Total liabilities and shareholders' equity                                 $   133,389,720    $    134,854,308
                                                                                ===============    ================

-------------------------------------------------------------------------------------------------------------------

                                See accompanying notes to consolidated financial statements.

                                                                                                                 3.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                          PEOPLES-SIDNEY FINANCIAL CORPORATION
                                            CONSOLIDATED STATEMENTS OF INCOME
                                                      (Unaudited)

-------------------------------------------------------------------------------------------------------------------

                                                                                          Three Months Ended
                                                                                             September 30,
                                                                                       2002               2001
                                                                                       ----               ----
<S>                                                                               <C>               <C>
Interest income
     Loans, including fees                                                        $    2,199,268    $     2,407,543
     Securities                                                                           45,270             49,806
     Demand, time and overnight deposits                                                   6,407             41,724
     Dividends on Federal Home Loan Bank stock                                            17,655             24,652
                                                                                  --------------    ---------------
         Total interest income                                                         2,268,600          2,523,725

Interest expense
     Deposits                                                                            829,403          1,164,302
     Borrowed funds                                                                      331,708            388,578
                                                                                  --------------    ---------------
         Total interest expense                                                        1,161,111          1,552,880
                                                                                  --------------    ---------------

Net interest income                                                                    1,107,489            970,845

Provision for loan losses                                                                 16,329             15,462
                                                                                  --------------    ---------------

Net interest income after provision for loan losses                                    1,091,160            955,383

Noninterest income
     Service fees and other charges                                                       33,501             32,889

Noninterest expense
     Compensation and benefits                                                           427,125            407,162
     Director fees                                                                        24,300             24,300
     Occupancy and equipment                                                             112,011            107,682
     Computer processing expense                                                          62,988             63,710
     State franchise taxes                                                                45,138             47,569
     Professional fees                                                                    25,415             24,079
     Other                                                                                89,354             91,583
                                                                                  --------------    ---------------
         Total noninterest expense                                                       786,331            766,085
                                                                                  --------------    ---------------

Income before income taxes                                                               338,330            221,187

Income tax expense                                                                       125,400             84,600
                                                                                  --------------    ---------------

Net income                                                                        $      212,930    $       137,587
                                                                                  ==============    ===============

Earnings per common share - basic                                                 $         0.16    $         0.10
                                                                                  ==============    ==============

Earnings per common share - diluted                                               $         0.16    $         0.10
                                                                                  ==============    ==============

-------------------------------------------------------------------------------------------------------------------

                                See accompanying notes to consolidated financial statements.

                                                                                                                 4.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                    PEOPLES-SIDNEY FINANCIAL CORPORATION
                               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                  (Unaudited)

----------------------------------------------------------------------------------------------------------------

                                                                                   Three Months Ended
                                                                                      September 30,
                                                                                      -------------
                                                                                  2002              2001
                                                                                  ----              ----

<S>                                                                          <C>               <C>
Net income                                                                   $      212,930    $     137,587

Other comprehensive income
     Unrealized holding gains on
       available-for-sale securities                                                 18,570           53,460
     Tax effect                                                                      (6,314)         (18,176)
                                                                             --------------    -------------
         Other comprehensive income                                                  12,256           35,284
                                                                             --------------    -------------

Comprehensive income                                                         $      225,186    $     172,871
                                                                             ==============    =============







----------------------------------------------------------------------------------------------------------------

                            See accompanying notes to consolidated financial statements.

                                                                                                              5.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                               CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
                                             SHAREHOLDERS' EQUITY
                                                  (Unaudited)

--------------------------------------------------------------------------------------------------------------------

                                                                                             Three Months
                                                                                          Ended September 30,
                                                                                          -------------------
                                                                                      2002                 2001
                                                                                      ----                 ----

<S>                                                                             <C>                <C>
Balance, beginning of period                                                    $    17,194,208    $     17,149,613

Net income for period                                                                   212,930             137,587

Cash dividends, $.09 per share in 2002 and $.08 per share in 2001                      (123,470)           (112,622)

Purchase of 5,000 and 12,000 shares of treasury stock in 2002 and
  2001, at cost                                                                         (60,000)           (119,350)

Commitment to release 2,856 management recognition plan
  shares in 2002 and 2001                                                                47,658              47,658

Commitment to release 3,233 and 3,378 employee stock ownership
  plan shares in 2002 and 2001, at fair value                                            38,338              32,958

Change in fair value on securities available for sale, net of tax                        12,256              35,284
                                                                                ---------------    ----------------

Balance, end of period                                                          $    17,321,920    $     17,171,128
                                                                                ===============    ================





--------------------------------------------------------------------------------------------------------------------

                            See accompanying notes to consolidated financial statements.

                                                                                                                  6.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                           PEOPLES-SIDNEY FINANCIAL CORPORATION
                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        (Unaudited)

---------------------------------------------------------------------------------------------------------------------

                                                                                          Three Months Ended
                                                                                             September 30,
                                                                                             -------------
                                                                                       2002               2001
                                                                                       ----               ----
<S>                                                                               <C>               <C>
Cash flows from operating activities
     Net income                                                                   $      212,930    $       137,587
     Adjustments to reconcile net income to net cash from
       operating activities
         Depreciation                                                                     51,713             52,792
         Provision for loan losses                                                        16,329             15,462
         FHLB stock dividends                                                            (17,600)           (24,600)
         Compensation expense for ESOP shares                                             38,338             32,958
         Compensation expense for MRP shares                                              47,658             47,658
         Change in
              Accrued interest receivable and other assets                               (18,162)            37,503
              Accrued expense and other liabilities                                      (12,096)            (7,798)
              Deferred loan fees                                                           3,647             22,969
                                                                                  --------------    ---------------
                  Net cash from operating activities                                     322,757            314,531

Cash flows from investing activities
     Purchases of time deposits in other financial institutions                               --           (300,000)
     Proceeds from maturities/calls of securities available for sale                          --            500,000
     Purchases of securities available for sale                                         (500,000)                --
     Net change in loans                                                               1,491,071         (1,920,500)
     Premises and equipment expenditures                                                  (3,242)          (182,582)
                                                                                  --------------    ---------------
              Net cash from investing activities                                         987,829         (1,903,082)

Cash flows from financing activities
     Net change in deposits                                                           (2,014,092)         3,152,933
     Repayments of long-term FHLB advances                                               (72,426)          (114,710)
     Net change in short-term FHLB advances                                              500,000                 --
     Cash dividends paid                                                                (123,470)          (112,622)
     Purchase of treasury stock                                                          (60,000)          (119,350)
                                                                                  --------------    ---------------
         Net cash from financing activities                                           (1,769,988)         2,806,251
                                                                                  --------------    ---------------

Net change in cash and cash equivalents                                                 (459,402)         1,217,700

Cash and cash equivalents at beginning of period                                       5,589,014          6,350,895
                                                                                  --------------    ---------------

Cash and cash equivalents at end of period                                        $    5,129,612    $     7,568,595
                                                                                  ==============    ===============

Supplemental disclosures of cash flow information
     Cash paid during the period for
         Interest                                                                 $    1,213,964    $     1,541,703
         Income taxes                                                                     65,000                 --

Noncash transactions
         Transfer from loans to other real estate owned                           $       76,537    $            --

---------------------------------------------------------------------------------------------------------------------

                              See accompanying notes to consolidated financial statements.

                                                                                                                  7.
</TABLE>

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION: The accompanying consolidated financial statements
include accounts of Peoples-Sidney Financial Corporation ("Peoples") and its
wholly-owned subsidiary, Peoples Federal Savings and Loan Association
("Association"), a federal stock savings and loan association, together referred
to as the Corporation. All significant intercompany transactions and balances
have been eliminated.

These interim consolidated financial statements are prepared without audit and
reflect all adjustments which, in the opinion of management, are necessary to
present fairly the financial position of the Corporation at September 30, 2002
and its results of operations and cash flows for the periods presented. All such
adjustments are normal and recurring in nature. The accompanying consolidated
financial statements have been prepared in accordance with the instructions of
Form 10-QSB and, therefore, do not purport to contain all the necessary
financial disclosures required by accounting principles generally accepted in
the United States of America that might otherwise be necessary in the
circumstances, and should be read in conjunction with the consolidated financial
statements and notes thereto of the Corporation for the fiscal year ended June
30, 2002, included in the Corporation's 2002 Annual Report on Form 10-KSB for
the fiscal year ended June 30, 2002. Reference is made to the accounting
policies of the Corporation described in the notes to consolidated financial
statements contained in such report. The Corporation has consistently followed
these policies in preparing this Form 10-QSB.

NATURE OF OPERATIONS: The Corporation provides financial services through its
main office in Sidney, Ohio, and branch offices in Sidney, Anna and Jackson
Center, Ohio. Its primary deposit products are checking, savings and term
certificate accounts, and its primary lending products are residential mortgage,
commercial and installment loans. Substantially all loans are secured by
specific items of collateral including business assets, consumer assets and
commercial and residential real estate. Commercial loans are expected to be
repaid from cash flow from operations of businesses. Substantially all revenues
and services are derived from financial institution products and services in
Shelby County and contiguous counties. Management considers the Corporation to
operate primarily in one segment, banking.

USE OF ESTIMATES: To prepare financial statements in conformity with accounting
principles generally accepted in the United States of America, management makes
estimates and assumptions based on available information. These estimates and
assumptions affect the amounts reported in the financial statements and
disclosures provided, and future results could differ. The allowance for loan
losses and fair values of financial instruments are particularly subject to
change.

INCOME TAXES: Income tax expense is based on the effective tax rate expected to
be applicable for the entire year. Income tax expense is the total of the
current year income tax due or refundable and the change in deferred tax assets
and liabilities. Deferred tax assets and liabilities are the expected future tax
amounts for the temporary differences between the carrying amounts and tax basis
of assets and liabilities, computed using enacted tax rates. A valuation
allowance, if needed, reduces deferred tax assets to the amount expected to be
realized.

EARNINGS PER COMMON SHARE: Basic earnings per common share ("EPS") is net income
divided by the weighted average number of common shares outstanding during the
period. Employee stock ownership plan ("ESOP") shares are considered outstanding
for this calculation unless unearned. Management recognition plan ("MRP") shares
are considered outstanding as they become vested. Diluted EPS shows the dilutive
effect of MRP shares and the additional common shares issuable under stock
options.
--------------------------------------------------------------------------------

                                  (Continued)

                                                                              8.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

NEW ACCOUNTING PRONOUNCEMENTS: In June 2001, the Financial Accounting Standards
Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No.
142, "Goodwill and Other Intangible Assets," which addresses the accounting for
such assets arising from prior and future business combinations. Upon the
adoption of this Statement, goodwill arising from business combinations will no
longer be amortized, but rather will be assessed regularly for impairment, with
any such impairment recognized as a reduction to earnings in the period
identified. Other identified intangible assets, such as core deposit intangible
assets, will continue to be amortized over their estimated useful lives. The
Corporation was required to adopt this Statement on July 1, 2002. The adoption
of this Statement did not have an impact on the Corporation's financial
statements, because the Corporation does not have any intangible assets.

The FASB issued SFAS No. 143, "Asset Retirement Obligations." The provisions of
this standard apply to asset retirements beginning July 1, 2002. The adoption of
this standard did not have a material affect on the Corporation's financial
position or results of operations.

In August 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets," which amends SFAS No. 121 by addressing business
segments accounted for as a discontinued operation under Accounting Principles
Board Opinion No. 30. This Statement was effective July 1, 2002. The effect of
this Statement on the financial position and results of operations of the
Corporation was not material.

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities". This Statement addresses the timing of
recognition of a liability for exit and disposal cost at the time a liability is
incurred, rather than at a plan commitment date, as previously required. Exit or
disposal costs will be measured at fair value, and the recorded liability will
be subsequently adjusted for changes in estimated cash flows. This Statement is
required to be effective for exit or disposal activities entered after December
31, 2002, and early adoption is encouraged. The Corporation does not believe
this statement will have a material effect on its financial position or results
of operations.

SFAS No. 147, "Acquisitions of Certain Financial Institutions" became effective
October 1, 2002. This standard requires any unidentifiable intangible asset
previously recorded as the result of a business combination to be reclassified
as goodwill and the amortization of this asset will cease. The effect of this
standard on the financial position and results of operations of the Corporation
was not material, as the Corporation does not have any unidentified intangible
assets.






--------------------------------------------------------------------------------

                                  (Continued)

                                                                              9.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

NOTE 2 - SECURITIES AVAILABLE FOR SALE

Securities available for sale were as follows.

<TABLE>
<CAPTION>
                                                                         Gross             Gross
                                                       Fair           Unrealized        Unrealized
                                                       Value             Gains            Losses
September 30, 2002                                     -----             -----            ------
------------------
<S>                                                <C>               <C>              <C>
    U.S. Government agencies                       $  4,044,320      $     44,320     $          --
                                                   ============      ============     =============

June 30, 2002
-------------
    U.S. Government agencies                       $  3,525,750      $     28,080     $      (2,330)
                                                   ============      ============     =============
</TABLE>

Contractual maturities of securities available for sale at September 30, 2002
were as follows. Actual maturities may differ from contractual maturities
because borrowers may have the right to call or prepay obligations with or
without call or prepayment penalties.

                                                                      Fair
                                                                      Value
                                                                      -----

           Due after one year through five years                 $    3,031,530
           Due after five years through ten years                     1,012,790
                                                                 --------------

                                                                 $    4,044,320
                                                                 ==============

No securities were sold during the three-month periods ended September 30, 2002
and 2001. No securities were pledged as collateral at September 30, 2002 or June
30, 2002.









--------------------------------------------------------------------------------

                                  (Continued)

                                                                             10.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

NOTE 3 - LOANS

Loans were as follows.

<TABLE>
<CAPTION>
                                                                    September 30,         June 30,
                                                                        2002                2002
                                                                        ----                ----
<S>                                                               <C>                 <C>
     Mortgage loans:
        1-4 family residential                                    $    93,462,789     $   96,006,970
        Multi-family residential                                        1,898,563          1,913,649
        Commercial real estate                                         10,145,604         10,111,114
        Real estate construction and
          development                                                   8,567,243          7,096,855
        Land                                                              879,407          1,309,677
                                                                   --------------     --------------
            Total mortgage loans                                      114,953,606        116,438,265
     Consumer loans                                                     4,488,813          4,625,413
     Commercial loans                                                   3,921,495          3,716,760
                                                                   --------------     --------------
            Total loans                                               123,363,914        124,780,438
     Less:
       Allowance for loan losses                                         (719,000)          (708,000)
       Loans in process                                                (2,672,544)        (2,516,131)
       Deferred loan fees                                                (335,181)          (331,534)
                                                                   --------------     --------------

                                                                   $  119,637,189     $  121,224,773
                                                                   ==============     ==============
<CAPTION>

Activity in the allowance for loan losses is summarized as follows.

                                                                               Three Months Ended
                                                                                  September 30,
                                                                                  -------------
                                                                                2002          2001
                                                                                ----          ----

<S>                                                                        <C>             <C>
     Balance at beginning of period                                        $    708,000    $    660,800
     Provision for losses                                                        16,329          15,462
     Charge-offs                                                                 (5,570)             --
     Recoveries                                                                     241             238
                                                                           ------------    ------------

     Balance at end of period                                              $    719,000    $    676,500
                                                                           ============    ============
<CAPTION>

Nonperforming loans were as follows:

                                                                           September 30,     June 30,
                                                                                2002           2002
                                                                                ----           ----

<S>                                                                       <C>             <C>
     Loans past due over 90 days still on accrual                         $    472,000    $    472,000
     Nonaccrual loans                                                          801,000         598,000
</TABLE>

Nonperforming loans include smaller balance homogeneous loans, such as
residential mortgage and consumer loans that are collectively evaluated for
impairment.

As of September 30, 2002 and June 30, 2002 and for the three months ended
September 30, 2002 and 2001, impaired loans were not material.

--------------------------------------------------------------------------------

                                  (Continued)

                                                                             11.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

NOTE 4 - BORROWED FUNDS

At September 30, 2002 and June 30, 2002, the Association had a cash management
line of credit enabling it to borrow up to $8,000,000 from the Federal Home Loan
Bank of Cincinnati ("FHLB"). All cash management advances have an original
maturity of 90 days. The line of credit must be renewed on an annual basis.
There were $1,000,000 in outstanding borrowings on this line of credit at
September 30, 2002 and $500,000 in outstanding borrowings at June 30, 2002.

As a member of the FHLB system, the Association has the ability to obtain
borrowings up to a maximum total of $29,844,000 including the cash management
line of credit based upon the Corporation's current FHLB stock ownership.
However, the Association can obtain advances up to the lower of 50% of the
Association's total assets or 80% of the Association's pledgable residential
mortgage loan portfolio by purchasing more FHLB stock. Advances from the Federal
Home Loan Bank were as follows.

<TABLE>
<CAPTION>
                                                                   September 30,      June 30,
                                                                       2002             2002
                                                                       ----             ----
<S>                                                               <C>              <C>
    Cash management advance, variable rate
    2.15% at September 30, 2002 and June 30, 2002                 $   1,000,000    $     500,000
    6.13% FHLB fixed-rate advance, due June 25, 2008                  7,000,000        7,000,000
    6.00% FHLB convertible advance, fixed-rate until
      June 2004, due June 11, 2009                                    5,000,000        5,000,000
    6.27% FHLB convertible advance, fixed-rate until
      September 2003, due September 8, 2010                           5,000,000        5,000,000
    5.30% select pay mortgage-matched advance, final
      maturity May 1, 2011                                            1,611,319        1,635,638
    5.35% select pay mortgage-matched advance, final
      maturity July 1, 2011                                           3,272,068        3,320,175
                                                                  -------------    -------------

                                                                  $  22,883,387    $  22,455,813
                                                                  =============    =============

Advances under the borrowing agreements are collateralized by a blanket pledge
of the Association's residential mortgage loan portfolio and its FHLB stock.

The interest rates on the convertible advances are fixed for a specified number
of years, then convertible to a variable rate at the option of the FHLB. If the
convertible option is exercised, the advance may be prepaid without penalty. The
select pay mortgage-matched advances require monthly principal and interest
payments and annual additional principal payments.

Maturities of FHLB advances for the next fives years and thereafter were as
follows.

                  Year ended September 30,
                           2003                                 $    1,891,817
                           2004                                        782,134
                           2005                                        684,461
                           2006                                        597,545
                           2007                                        520,259
                        Thereafter                                  18,407,171
                                                                --------------

                                                                $   22,883,387
                                                                ==============
</TABLE>

--------------------------------------------------------------------------------

                                  (Continued)

                                                                             12.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

NOTE 5 - OFF-BALANCE-SHEET ACTIVITIES

Loss contingencies, including claims and legal actions arising in the ordinary
course of business, are recorded as liabilities when the likelihood of loss is
probable and an amount or range of loss can be reasonably estimated. Management
does not believe there now are such matters that will have a material effect on
the financial statements.

Some financial instruments, such as loan commitments, credit lines, letters of
credit and overdraft protection, are issued to meet customer financing needs.
These are agreements to provide credit or to support the credit of others, as
long as conditions established in the contract are met, and usually have
expiration dates. Commitments may expire without being used. Off-balance-sheet
risk to credit loss exists up to the face amount of these instruments, although
material losses are not anticipated. The same credit policies are used to make
such commitments as are used for loans, including obtaining collateral at
exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was
as follows.

<TABLE>
<CAPTION>
                                                   September 30,                   June 30,
                                                       2002                          2002
                                                       ----                          ----
                                                 Fixed       Variable        Fixed       Variable
                                                 Rate          Rate           Rate          Rate
                                                 ----          ----           ----          ----

<S>                                          <C>           <C>            <C>            <C>
      Nonresidential                         $        --   $        --    $   696,000    $       --
      Residential real estate                  1,337,000       143,000        400,000            --
      Interest rates                         5.875-6.75%      6.00-7.50%    6.75-7.00%           --
</TABLE>

Commitments to make loans are generally made for a period of 30 days or less.
The maximum maturity for fixed-rate loan commitments was 20 years.

The Corporation also had unused commercial and home equity lines of credit
approximating $3,857,000 and $3,156,000 at September 30, 2002 and June 30, 2002.

At September 30, 2002 and June 30, 2002, the Association was required to have
$1,591,000 and $1,700,000 on deposit with its correspondent banks as a
compensating clearing requirement.

The Association entered into employment agreements with certain officers of the
Corporation. The agreements provide for a term of one to three years and a
salary and performance review by the Board of Directors not less often than
annually, as well as inclusion of the employee in any formally established
employee benefit, bonus, pension and profit-sharing plans for which management
personnel are eligible. The agreements provide for extensions for a period of
one year on each annual anniversary date, subject to review and approval of the
extension by disinterested members of the Board of Directors of the Association.
The employment agreements also provide for vacation and sick leave.



--------------------------------------------------------------------------------

                                  (Continued)

                                                                             13.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

NOTE 6 - EARNINGS PER SHARE

A reconciliation of the numerators and denominators used in the computation of
the basic earnings per common share and diluted earnings per common share is
presented below:

<TABLE>
<CAPTION>
                                                                                    Three Months Ended
                                                                                    ------------------
                                                                                       September 30,
                                                                                       -------------
                                                                                    2002           2001
                                                                                    ----           ----
<S>                                                                             <C>             <C>
     Basic Earnings Per Common Share

           Net income                                                           $   212,930     $   137,587
                                                                                ===========     ===========

           Weighted average common shares outstanding                             1,459,962       1,506,850
           Less:  Average unallocated ESOP shares                                   (85,646)        (99,085)
           Less:  Average unearned MRP shares                                        (9,045)        (20,469)
                                                                                -----------     -----------
           Weighted average common shares outstanding for
             basic earnings per common share                                      1,365,271       1,387,296
                                                                                ===========     ===========

         Basic earnings per common share                                        $      0.16     $      0.10
                                                                                ===========     ===========

     Diluted Earnings Per Common Share

           Net income                                                           $   212,930     $   137,587
                                                                                ===========     ===========

           Weighted average common shares outstanding for
             basic earnings per common share                                      1,365,271       1,387,296
           Add:  Dilutive effects of average unearned MRP shares                         --              --
           Add:  Dilutive effects of assumed exercises of stock options                  --              --
                                                                                -----------     -----------
           Weighted average common shares and dilutive
             potential common shares outstanding                                  1,365,271       1,387,296
                                                                                ===========     ===========

         Diluted earnings per common share                                      $      0.16     $      0.10
                                                                                ===========     ===========
</TABLE>

Unearned MRP shares and stock options granted did not have a dilutive effect on
EPS for the three months ended September 30, 2002 and 2001 as the fair value of
the MRP shares on the date of grant and the exercise price of outstanding
options was greater than the average market price for the period. As of
September 30, 2002 and 2001, there were 140,824 options outstanding that were
not dilutive.

--------------------------------------------------------------------------------

                                  (Continued)
                                                                             14.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

Item 2.  Management's Discussion and Analysis
         -------------------------------------

INTRODUCTION

In the following pages, management presents an analysis of the consolidated
financial condition of the Corporation as of September 30, 2002, compared to
June 30, 2002, and results of operations for the three months ended September
30, 2002, compared with the same period in 2001. This discussion is designed to
provide a more comprehensive review of operating results and financial position
than could be obtained from an examination of the financial statements alone.
This analysis should be read in conjunction with the interim financial
statements and related footnotes included herein.

When used in this discussion or future filings by the Corporation with the
Securities and Exchange Commission, or other public or shareholder
communications, or in oral statements made with the approval of an authorized
executive officer, the words or phrases "will likely result," "are expected to,"
"will continue," "is anticipated," "estimate," "project," "believe" or similar
expressions are intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The Corporation
wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made, and to advise
readers that various factors, including regional and national economic
conditions, changes in levels of market interest rates, credit risks of lending
activities and competitive and regulatory factors, could affect the
Corporation's financial performance and could cause the Corporation's actual
results for future periods to differ materially from those anticipated or
projected.

The Corporation is not aware of any trends, events or uncertainties that will
have or are reasonably likely to have a material effect on its liquidity,
capital resources or operations except as discussed herein. The Corporation is
not aware of any current recommendations by regulatory authorities that would
have such effect if implemented.

The Corporation does not undertake, and specifically disclaims, any obligation
to publicly release the result of any revisions that may be made to any
forward-looking statements to reflect occurrence of anticipated or unanticipated
events or circumstances after the date of such statements.


FINANCIAL CONDITION

Total assets at September 30, 2002 were $133.4 million compared to $134.9
million at June 30, 2002, a decrease of $1.5 million. The decrease in total
assets was due to a decrease in loans coupled with a similar decrease in
deposits.

Cash and cash equivalents decreased $459,000, primarily due to the purchase of
an available for sale security from excess funds in overnight deposits.

Securities available for sale increased $519,000 as a result of the purchase of
an additional security coupled with an increase in the fair market value of the
portfolio.

Loans decreased $1.6 million from $121.2 million at June 30, 2002 to $119.6
million at September 30, 2002. The decrease in loans was primarily in one- to
four-family residential loans, which decreased $2.5 million and land loans which
decreased $430,000 partially offset by an increase of $1.5 million in real
estate construction and development loans. The overall net decrease in total
loans is reflective of the low interest rate environment which has enticed
mortgage customers to shop for 30 year fixed rates products which are not
currently offered by the Association.
--------------------------------------------------------------------------------

                                  (Continued)
                                                                             15.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

The Corporation's consumer and commercial loan portfolio remained relatively
unchanged between June 30, 2002 and September 30, 2002. Non-mortgage loans
remain a small portion of the entire loan portfolio and represented 6.8% and
6.7% of gross loans at September 30, 2002 and June 30, 2002.

Total deposits decreased $2.0 million from $94.8 million at June 30, 2002 to
$92.8 million at September 30, 2002. The largest decrease was in certificate
accounts which decreased $1.7 million. The Corporation also had decreases in
other deposit categories as NOW accounts decreased $209,000, noninterest-bearing
demand accounts decreased $124,000, and money market accounts decreased $55,000
while savings accounts increased $92,000. The overall decrease in deposit
accounts is reflective of the low interest rate environment as customers search
for higher rates or elect to spend rather than save.

Borrowed funds were $22.9 million at September 30, 2002 compared to $22.5
million at June 30, 2002. Borrowings at September 30, 2002 consisted of
short-term variable rate cash management advances, long-term fixed-rate
advances, convertible fixed-rate advances and select pay mortgage-matched
advances. Based on the FHLB stock owned by the Association at September 30,
2002, the Association had the ability to obtain borrowings up to a maximum total
of $29.8 million. However, the Association can obtain advances up to the lower
of 50% of the Association's total assets or 80% of the Association's pledgable
residential mortgage loan portfolio by purchasing more FHLB stock. Based upon
the 50% of total assets limitation, management estimates the maximum borrowing
capacity from the FHLB to be approximately $67.5 million at September 30, 2002.


RESULTS OF OPERATIONS

The operating results of the Corporation are affected by general economic
conditions, monetary and fiscal policies of federal agencies and regulatory
policies of agencies that regulate financial institutions. The Corporation's
cost of funds is influenced by interest rates on competing investments and
general market rates of interest. Lending activities are influenced by demand
for real estate loans and other types of loans, which in turn is affected by
interest rates at which such loans are made, general economic conditions and
availability of funds for lending activities.

The Corporation's net income primarily depends on its net interest income, which
is the difference between interest income earned on interest-earning assets,
such as loans and securities and interest expense incurred on interest-bearing
liabilities, such as deposits and borrowings. The level of net interest income
is dependent on the interest rate environment and volume and composition of
interest-earning assets and interest-bearing liabilities. Net income is also
affected by provisions for loan losses, service charges, gains on the sale of
assets and other income, noninterest expense and income taxes.

NET INCOME. The Corporation earned net income of $213,000 for the three months
ended September 30, 2002 compared to $138,000 for the three months ended
September 30, 2001. The increase in net income was primarily due to an increase
in net interest income partially offset by a slight increase in noninterest
expense.

NET INTEREST INCOME. Net interest income totaled $1,107,000 for the three months
ended September 30, 2002 compared to $971,000 for the three months ended
September 30, 2001. The increase was the result of a decrease in interest
expense on deposits and borrowed funds partially offset by a decrease in
interest income on loans.

Interest and fees on loans decreased $209,000, or 8.7% from $2,408,000 for the
three months ended September 30, 2001 to $2,199,000 for the three months ended
September 30, 2002. The decrease in interest income was due primarily to a lower
average yield earned on loans due to the lower interest rate environment.
--------------------------------------------------------------------------------

                                  (Continued)
                                                                             16.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

Interest on demand, time and overnight deposits decreased due to lower average
balances of overnight deposits for the current three month period combined with
a decline in interest rates.

Interest paid on deposits decreased $335,000 or 28.8% from $1,164,000 for the
three months ended September 30, 2001 to $829,000 for the three months ended
September 30, 2002. The decrease resulted from a lower average interest rate
offset slightly by a higher average balance of deposits.

Interest paid on borrowed funds totaled $332,000 for the three months ended
September 30, 2002 compared to $389,000 for the three months ended September 30,
2001. The decrease in interest expense on borrowed funds resulted from a lower
average balance of borrowed funds coupled with a decrease in the average rate
paid for borrowings.

PROVISION FOR LOAN LOSSES. The Corporation maintains an allowance for loan
losses in an amount that, in management's judgment, is adequate to absorb
probable losses in the loan portfolio. While management utilizes its best
judgment and information available, the ultimate adequacy of the allowance is
dependent upon a variety of factors, including the performance of the
Corporation's loan portfolio, the economy, changes in real estate values and
interest rates and the view of the regulatory authorities toward loan
classifications. The provision for loan losses is determined by management as
the amount to be added to the allowance for loan losses after net charge-offs
have been deducted to bring the allowance to a level that is considered adequate
to absorb probable losses in the loan portfolio. The amount of the provision is
based on management's monthly review of the loan portfolio and consideration of
such factors as historical loss experience, general prevailing economic
conditions, changes in the size and composition of the loan portfolio and
specific borrower considerations, including the ability of the borrower to repay
the loan and the estimated value of the underlying collateral.

The provision for loan losses for the three months ended September 30, 2002
totaled $16,000 compared to $15,000 for the three months ended September 30,
2001. The allowance for loan losses totaled $719,000, or 0.58% of gross loans
receivable and 56.5% of total nonperforming loans at September 30, 2002,
compared with $708,000, or 0.57% of gross loans receivable and 66.1% of total
nonperforming loans at June 30, 2002. Charge-offs experienced by the Corporation
have primarily related to consumer and other non-real estate loans. The
Corporation's low historical charge-off history is the product of a variety of
factors, including the Corporation's underwriting guidelines, which generally
require a loan-to-value or projected completed value ratio of 80% for purchase
or construction of one- to four-family residential properties and 75% for
commercial real estate and land loans, established income information and
defined ratios of debt to income.

NONINTEREST INCOME. Noninterest income includes service fees and other
miscellaneous income and totaled $34,000 for the three months ended September
30, 2002 and $33,000 for the three months ended September 30, 2001. The increase
was primarily due to an increase in service charges on deposit accounts.

NONINTEREST EXPENSE. Noninterest expense totaled $786,000 for the three months
ended September 30, 2002 compared to $766,000 for the three months ended
September 30, 2001, an increase of $20,000. The increase was the result of
normal increases in compensation and benefits.

INCOME TAX EXPENSE. Income tax expense totaled $125,000 for the three months
ended September 30, 2002 compared to $85,000 for the three months ended
September 30, 2001, representing an increase of $40,000. The increase in income
tax expense is reflective of the increase in net income for the three months
ended September 30, 2002 as compared to the three months ended September 30.
2001. The effective tax rate was 37.1% and 38.2% for the three months ended
September 30, 2002 and 2001.
--------------------------------------------------------------------------------

                                  (Continued)
                                                                             17.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

LIQUIDITY AND CAPITAL RESOURCES

The Corporation's liquidity, primarily represented by cash and cash equivalents,
is a result of operating, investing and financing activities. These activities
are summarized below for the three months ended September 30, 2002 and 2001.

<TABLE>
<CAPTION>
                                                                                 Three Months
                                                                              Ended September 30,
                                                                              -------------------
                                                                             2002             2001
                                                                             ----             ----
                                                                              (Dollars in thousands)

<S>                                                                      <C>              <C>
Net income                                                               $        213     $        138
Adjustments to reconcile net income to net cash from
  operating activities                                                            110              177
                                                                         ------------     ------------
Net cash from operating activities                                                323              315
Net cash from investing activities                                                988           (1,903)
Net cash from financing activities                                             (1,770)           2,806
                                                                         ------------     ------------
Net change in cash and cash equivalents                                          (459)           1,218
Cash and cash equivalents at beginning of period                                5,589            6,351
                                                                         ------------     ------------

Cash and cash equivalents at end of period                               $      5,130     $      7,569
                                                                         ============     ============
</TABLE>

The Corporation's principal sources of funds are deposits, loan repayments,
maturities of securities and other funds provided by operations. While scheduled
loan repayments and maturing investments are relatively predictable, deposit
flows and early loan prepayments are more influenced by interest rates, general
economic conditions and competition. The Association maintains investments in
liquid assets based on management's assessment of the (1) need for funds, (2)
expected deposit flows, (3) yields available on short-term liquid assets and (4)
objectives of the asset/liability management program.

The Association also has the ability to borrow from the FHLB up to a maximum
total of $29,844,000 including the cash management line of credit based upon the
Corporation's current FHLB stock ownership. However, the Association can obtain
advances up to the lower of 50% of the Association's total assets or 80% of the
Association's pledgable residential mortgage loan portfolio by purchasing more
FHLB stock. See Note 4 of the Notes to Consolidated Financial Statements for a
detail of the Corporation's borrowings from the FHLB at September 30, 2002.

At September 30, 2002, the Corporation had commitments to originate fixed-rate
commercial and residential real estate loans totaling $1,337,000 and
variable-rate nonresidential and residential real estate mortgage loans totaling
$143,000. Loan commitments are generally for 30 days. See Note 5 of the Notes to
Consolidated Financial Statements for a detail of the Corporation's loan
commitments at September 30, 2002. The Corporation considers its liquidity and
capital reserves sufficient to meet its outstanding short and long-term needs.





--------------------------------------------------------------------------------

                                  (Continued)
                                                                             18.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------

The Association is subject to various regulatory capital requirements
administered by the federal regulatory agencies. Under capital adequacy
guidelines and the regulatory framework for prompt corrective action, the
Association must meet specific capital guidelines that involve quantitative
measures of the Association's assets, liabilities and certain off-balance-sheet
items as calculated under regulatory accounting practices. The Association's
capital amounts and classifications are also subject to qualitative judgments by
the regulators about the Association's components, risk weightings and other
factors. Failure to meet minimum capital requirements can initiate certain
mandatory actions that, if undertaken, could have a direct material effect on
the Corporation's financial statements. At September 30, 2002 and June 30, 2002,
management believes the Association complies with all regulatory capital
requirements. Based on the Association's computed regulatory capital ratios, the
Association is considered well capitalized under the Federal Deposit Insurance
Act at September 30, 2002 and June 30, 2002. No conditions or events have
occurred subsequent to the last notification by regulators that management
believes would have changed the Association's category.

At September 30, 2002 and June 30, 2002, the Association's actual capital
levels, minimum required levels and levels to be considered "well capitalized"
were as follows.

<TABLE>
<CAPTION>
                                                                                                 To Be
                                                                                           Well Capitalized
                                                                 For Capital            Under Prompt Corrective
                                         Actual               Adequacy Purposes           Action Regulations
                                         ------               -----------------           ------------------
                                  Amount         Ratio      Amount         Ratio         Amount          Ratio
                                  ------         -----      ------         -----         ------          -----
                                                             (Dollars in Thousands)
<S>                            <C>               <C>      <C>               <C>        <C>               <C>
September 30, 2002
Total capital (to risk-
  weighted assets)             $  15,383         17.7%    $  6,953          8.0%       $  8,691          10.0%
Tier 1 (core) capital (to
  risk-weighted assets)           14,677         16.9        3,476          4.0           5,215           6.0
Tier 1 (core) capital (to
  adjusted total assets)          14,677         11.0        5,334          4.0           6,667           5.0
Tangible capital (to
  adjusted total assets)          14,677         11.0        2,000          1.5            N/A

June 30, 2002
Total capital (to risk-
  weighted assets)             $  15,073         17.1%    $  7,049          8.0%       $  8,811          10.0%
Tier 1 (core) capital (to
  risk-weighted assets)           14,365         16.3        3,524          4.0           5,287           6.0
Tier 1 (core) capital (to
  adjusted total assets)          14,365         10.6        5,396          4.0           6,745           5.0
Tangible capital (to
  adjusted total assets)          14,365         10.6        2,023          1.5            N/A
</TABLE>




--------------------------------------------------------------------------------

                                                                             19.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

--------------------------------------------------------------------------------


Item 3.  Controls and Procedures
         -----------------------

With the participation and under the supervision of the Corporation's
management, including the Corporation's Chief Executive Officer and Chief
Financial Officer, and within 90 days of the filing date of this quarterly
report, the Corporation's Chief Executive Officer and Chief Financial Officer
have evaluated the effectiveness of the design and operation of the
Corporation's disclosure controls and procedures (as defined in Exchange Act
Rules 13a-14(c) and 15(d)-14(c)) and, based on their evaluation, have concluded
that the disclosure controls and procedures are effective. There were no
significant changes in the Corporation's internal controls or in other factors
that could significantly affect these controls subsequent to the date of their
evaluation, including any corrective action with regard to significant
deficiencies and material weaknesses.













--------------------------------------------------------------------------------

                                                                             20.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                           PART II - OTHER INFORMATION

--------------------------------------------------------------------------------


Item 1.  Legal Proceedings
         -----------------
         None.

Item 2.  Changes in Securities
         ---------------------
         None.

Item 3.  Defaults Upon Senior Securities
         -------------------------------
         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------
         There were no matters brought to a vote of security holders during
         the quarter ended September 30, 2002.

Item 5.  Other Information
         -----------------
         None.

Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------
         (a)  Form 8-K was filed on July 19, 2002 under Item 5, Other Events,
              the Corporation reported the issuance of a press release to
              announce the quarterly and year-end earnings for the period
              ending June 30, 2002, declare a dividend, and announce the date
              of the 2002 Annual Meeting of Shareholders.






--------------------------------------------------------------------------------

                                                                             21.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                                   SIGNATURES


Pursuant to the requirement of the Securities Exchange Act of 1934, the small
business issuer has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



Date:    November 8, 2002                  /s/ Douglas Stewart
       ----------------------------        -------------------------------------
                                           Douglas Stewart
                                           President and Chief Executive Officer




Date:    November 8, 2002                  /s/ Debra Geuy
       ----------------------------        -------------------------------------
                                           Debra Geuy
                                           Chief Financial Officer









--------------------------------------------------------------------------------

                                                                             22.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
            PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


I, Douglas Stewart, certify that:

1)   I have reviewed this quarterly report on Form 10-QSB of Peoples-Sidney
     Financial Corporation;

2)   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3)   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4)   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;
     b)   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and
     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5)   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):
     a)   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and
     b)   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6)   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:   November 8, 2002
      ---------------------

/s/ Douglas Stewart
---------------------------
Douglas Stewart
President and Chief Executive Officer

--------------------------------------------------------------------------------

                                                                             23.

<PAGE>

                      PEOPLES-SIDNEY FINANCIAL CORPORATION
                  CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
            PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


I, Debra A. Geuy, certify that:

1)   I have reviewed this quarterly report on Form 10-QSB of Peoples-Sidney
     Financial Corporation;

2)   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3)   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4)   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
     a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;
     b)   evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and
     c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5)   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):
     a)   all significant deficiencies in the design or operation of internal
          controls which could adversely affect the registrant's ability to
          record, process, summarize and report financial data and have
          identified for the registrant's auditors any material weaknesses in
          internal controls; and
     b)   any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6)   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:    November 8, 2002
      ----------------------

/s/ Debra A. Geuy
----------------------------
Debra A. Geuy
Chief Financial Officer and Treasurer

--------------------------------------------------------------------------------

                                                                             24.

<PAGE>

<TABLE>
<CAPTION>
                                     PEOPLES-SIDNEY FINANCIAL CORPORATION
                                               INDEX TO EXHIBITS

     EXHIBIT
     NUMBER        DESCRIPTION
     ------        -----------
<S>  <C>           <C>                                     <C>
     3.1           Articles of Incorporation of            Incorporated by reference to the Registration  Statement
                   Peoples-Sidney Financial                on Form S-1 filed by Peoples-Sidney  Financial Corporation
                   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      Incorporated by reference to the S-1, Exhibit 3.2.
                   Corporation

     10.1          Employee Stock Ownership Plan           Incorporated by reference to the S-1, Exhibit 10.1

     10.2          Form of Employment Agreement with       Incorporated by Pre-Effective Amendment No. 1 to the S-1
                   Douglas Stewart                         filed with the SEC on March 12, 1997, Exhibit 10.2

     10.3          Form of Employment Agreements with      Incorporated by Pre-Effective Amendment No. 1 to the S-1
                   David R. Fogt, Gary N. Fullenkamp and   filed with the SEC on March 12, 1997, Exhibit 10.3
                   Debra A. Geuy
     10.4          Form of Severance Agreement with        Incorporated by Pre-Effective Amendment No. 1 to the S-1
                   Steve Goins                             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    Filed as an exhibit to the Registrant's Annual Report on
                   Amended and Restated 1998 Stock         Form 10-KSB for the fiscal year ended June 30, 1999 (File
                   Option and Incentive Plan               No. 0-22223) and incorporate herein by reference.

     10.7          Peoples-Sidney Financial Corporation    Filed as an exhibit to the Registrant's Annual Report on
                   Amended and Restated 1998 Management    Form 10-KSB for the fiscal year ended June 30, 1999 (File
                   Recognition Plan                        No. 0-22223) and incorporate herein by reference.

     11            Statement Regarding Computation of      See Note 6 to the consolidated financial statements.
                   Earnings per Share

     99.1          Certification of the Chief Executive
                   Officer Pursuant to Section 906 of
                   the Sarbanes-Oxley Act of 2002

     99.2          Certification of the Chief Financial
                   Officer Pursuant to Section 906 of
                   the Sarbanes-Oxley Act of 2002
---------------------------------------------------------------------------------------------------------------------

                                                                                                                  25.
</TABLE>