8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

      Date of Report (Date of earliest event reported): September 22, 2006
                                                        ------------------

                            SI FINANCIAL GROUP, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)

       United States                 0-50801             84-1655232
       -------------                 -------             ----------
(State or other jurisdiction of     (Commission         (IRS Employer
 incorporation or organization)     File Number)        Identification No.)


803 Main Street, Willimantic, Connecticut                06226
- -----------------------------------------                -----
(Address of principal executive offices)                 (Zip Code)

                                 (860) 423-4581
                                 --------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
                                 --------------
          (Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

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

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

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

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ITEM 8.01   OTHER EVENTS
            ------------

      On September 22, 2006, SI Financial Group, Inc. (the "Company"), the
holding company for Savings Institute Bank and Trust Company (the "Bank"),
announced that it completed its offering of $8.0 million of trust preferred
securities. The press release announcing the trust preferred offering is
furnished as Exhibit 99.1 and incorporated herein by reference.

ITEM 9.01   FINANCIAL STATEMENTS AND EXHIBITS
            ---------------------------------

      (a)  Financial Statements of Businesses Acquired: Not applicable

      (b)  Pro Forma Financial Information: Not applicable

      (c)  Shell Company Transactions: Not applicable

      (d)  Exhibits

           Number            Description
           ------            -----------

            99.1             Press Release Dated September 22, 2006



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                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                   SI FINANCIAL GROUP, INC.


Date: September 22, 2006           By: /s/ Rheo A. Brouillard
                                       -----------------------------------------
                                       Rheo A. Brouillard
                                       President and Chief Executive Officer

EX-99.1

                     [SI FINANCIAL GROUP, INC. LETTERHEAD]

                                                                  PRESS RELEASE
================================================================================
                                                                  (NASDAQ: SIFI)

SI FINANCIAL GROUP, INC. RAISES $8.0 MILLION IN TRUST-PREFERRED SECURITIES
OFFERING

WILLIMANTIC, CONNECTICUT--SEPTEMBER 22, 2006. SI Financial Group, Inc. (the
"Company")(NASDAQ Global Market: SIFI) today announced that it has raised $8.0
million through a pooled trust-preferred securities offering. The
trust-preferred securities were issued by a newly established subsidiary, SI
Capital Trust II.

The trust preferred securities will mature in 30 years and bear a fixed coupon
of 7.09% until December 2006, and thereafter, the coupon rate will adjust
quarterly at three-month LIBOR plus 1.70%. Interest on the securities is payable
quarterly. The Company may redeem the trust-preferred securities, in whole or in
part, on or after September 15, 2011, or earlier under certain conditions.

The Company expects to utilize the net proceeds from the offering for general
corporate purposes, including the expected redemption, in April 2007, of
previously issued trust-preferred securities which carry significantly higher
interest rates. The net proceeds qualify as Tier I Core capital for regulatory
purposes.

SI Financial Group, Inc. is the holding company for Savings Institute Bank and
Trust Company. Established in 1842, the Savings Institute Bank and Trust Company
is a community-oriented financial institution headquartered in Willimantic,
Connecticut.

Statements in this press release concerning future results, performance,
expectations or intentions are forward-looking statements. Actual results,
performance or developments may differ materially from forward-looking
statements as a result of known or unknown risks, uncertainties, and other
factors, including those identified from time to time in the Company's other
filings with the Securities and Exchange Commission, press releases and other
communications.

CONTACT:

SI Financial Group, Inc.
Sandra Mitchell, (860) 456-6509
Vice President / Director of Corporate Communications
investorrelations@banksi.com
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