Peoples Bancorp (PBNI) Declares Cash Dividend May 11, 2011

For Immediate Release                            

Date:  May 17, 2011 
                                                                                  
Pink Sheets Symbol - PBNI                                                                                    
Contact:  Maurice F. Winkler, III                                                                                                    
                       President and CEO                                                                                               
                       260-925-2500

(Auburn)  The Board of Directors of Peoples Bancorp (PBNI), the Holding Company for Peoples Federal Savings Bank of DeKalb County, declared a Fiscal 2011 third quarter dividend of $0.19 per share, according to G. Richard Gatton, Chairman.  The dividend will be paid on July 11, 2011 to Stockholders of Record as of July 1, 2011.  This is the ninety-fifth consecutive dividend that has been paid since the Company went public on July 7, 1987.

As of May 17, 2011, Peoples had 2,480,965 shares outstanding.  The closing price of Peoples Bancorp stock, as of May 16, 2011, was $17.40 per share as listed on the Pink Sheets under the symbol of PBNI.

Peoples Bancorp, through its subsidiary, Peoples Federal Savings Bank of DeKalb County, operates eleven full-service offices in Indiana, located in Auburn, Avilla, Garrett, Howe, Kendallville, LaGrange, Middlebury, Topeka, Waterloo, and two offices in Columbia City.  Peoples Federal operates four full-service offices in Michigan, with two offices located in Three Rivers and offices at Schoolcraft and Union.