Peoples Bancorp Declares Cash Dividend and Approves Stock Repurchase Plan

The Board of Directors of Peoples Bancorp, the Holding
Company for Peoples Federal Savings Bank and First Savings Bank,
declared a Fiscal 2006 second quarter dividend of $0.19 per share,
according to Roger J. Wertenberger, Chairman. The dividend will be
paid on April 13, 2006, to stockholders of record as of April 3, 2006.
   Thus far during Fiscal 2006, Peoples has repurchased 42,242 shares
of stock. As of February 23, 2006, Peoples had 3,333,243 shares
outstanding. The closing price of Peoples Bancorp, as of February 23,
2006, was $20.506 per share as listed on the NASDAQ National Marketing
System under the symbol PFDC.
   The Board of Directors has approved the repurchase of up to
300,000 shares of the Company's common stock over the next three
years. The shares will be purchased at prevailing market prices from
time to time depending upon market conditions and regulatory
requirements. The Company reserves the right to discontinue this
program at any time due to changes in market conditions or otherwise.
The Plan shall expire in February 2009.
   Peoples Bancorp, through its Indiana subsidiary, Peoples Federal
Savings Bank, operates nine full-service offices located in Auburn,
Avilla, Garrett, LaGrange, Kendallville, Topeka, Waterloo and two in
Columbia City, Indiana. Peoples Bancorp's Michigan subsidiary, First
Savings Bank, operates six full-service offices located in Three
Rivers (two offices), Schoolcraft and Union in Michigan and Howe and
Middlebury in Indiana.