Peoples Bancorp Declares Cash Dividend

The Board of Directors of Peoples Bancorp (NASDAQ:PFDC),
the Holding Company for Peoples Federal Savings Bank and First Savings
Bank, declared a Fiscal 2006 third quarter dividend of $0.19 per
share, according to Roger J. Wertenberger, Chairman. This is the
seventy-fifth consecutive dividend paid since the Company went public
on July 7, 1987. The dividend will be paid on July 20, 2006, to
stockholders of record as of July 3, 2006.
   Thus far during Fiscal 2006, Peoples has repurchased 116,902
shares of stock. As of May 18, 2005, Peoples had 3,261,483 shares
outstanding. The closing price of Peoples Bancorp as of May 19, 2006
was $20.08 per share as listed on the NASDAQ National Marketing System
under the symbol PFDC.
   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.