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 fourth quarter dividend of $0.19 per
share, according to Roger J. Wertenberger, Chairman. The dividend will
be paid on October 19, 2006, to stockholders of record as of October
2, 2006.
   As of August 23, 2006, Peoples had 3,241,316 shares outstanding.
The closing price of Peoples Bancorp as of August 23, 2006 was $19.10
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.