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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      8-K**

**CURRENT      REPORT**

**February      8, 2007**

**Peoples-Sidney      Financial Corporation**

| **Delaware**                                   | **000-22223**                    | **311499862**                      |
|------------------------------------------------|----------------------------------|------------------------------------|
| (State                or other jurisdiction of | (Commission                File) | (IRS                Employer       |
| incorporation                or organization)  | Number                           | Identification                No.) |
|                                           |                             |                               |

**101      East Court, Sidney, Ohio 45365**

**      (937) 492-6129**

|   | o | Written                communications pursuant to Rule 425 under the Securities Act (17                CFR                230.425) |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Soliciting                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR                240.14a-12) |
|--------|---|----------------------------------------------------------------------------------------------------------------------|

|   | o | Pre-commencement                communications pursuant to Rule 14d-2(b) under the Exchange Act (17                CFR                240.14d-2(b)) |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Pre-commencement                communications pursuant to Rule 13e-4(c) under the Exchange Act (17                CFR                240.13e-4 (c)) |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Section      1 - Registrant’s Business and Operations.**

**Item      1.01. Entry Into a Material Definitive Agreement.**

**Section      9 - Financial Statements and Exhibits.**

**Item      9.01.**
**Financial      Statements and Exhibits.**

|   | 99.1 | Order                to Cease and Desist of the Office of Thrift Supervision, dated February                8,                2007. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |
|--------|--------|--------|

|   | 99.2 | Stipulation                and Consent to Issuance of an Order to Cease and Desist between the                Office                of Thrift Supervision and Peoples Federal Savings and Loan Association,                dated February 8, 2007. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SIGNATURE**

|   |                                                |                                                                                                                                                                                                                                                                                                                |
|--------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | PEOPLES-SIDNEY                FINANCIAL CORPORATION |
|   |                                                |
|   | By:                                                 | /s/                Douglas                Stewart                                            |
|   |                                                | Douglas                Stewart                                                                                                                                                                                                                                                                                      |
|   |                                                | President                and Chief Executive Officer                                                                                                                                                                                                                                                                |
|   |                                                |                                                                                                                                                                                                                                                                                                                |
|   |                                                |                                                                                                                                                                                                                                                                                                                |

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| Exhibit |                                                                                                                                                                                                                                               |   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Number  | Description                of Exhibit                                                                                                                                                                                                              |   |
|    |                                                                                                                                                                                                                                               |   |
| 99.1    | Order                to Cease and Desist of the Office of Thrift Supervision, dated February                8,                2007.                                                                                                                |   |
|    |                                                                                                                                                                                                                                               |   |
| 99.2    | Stipulation                and Consent to Issuance of an Order to Cease and Desist between the                Office                of Thrift Supervision and Peoples Federal Savings and Loan Association,                dated February 8, 2007. |   |