8-K

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): October 20, 2008

PEOPLES BANCORP INC.

(Exact name of Registrant as specified in its charter)

Ohio	0-16772	31-0987416
(State or other jurisdiction	(Commission File	(I.R.S. Employer
of incorporation)	Number)	Identification Number)

138 Putnam Street, PO Box 738
Marietta, Ohio	45750
(Address of principal executive office)	(Zip Code)

                                     Registrant's telephone number, including area code: (740) 373-3155

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 October 20, 2008, Peoples Bancorp Inc. (“Peoples”) issued a news release announcing its wholly-owned subsidiary, People Bank, National Association, had

                               completed the previously announced sale of its Grayson, Kentucky banking office to First National Bank of Grayson.  A copy of the news release is attached as Exhibit

                               99 to this current Report on Form 8-K.

                    Item 9.01 Financial Statements and Exhibits

               a) through (c) not applicable

               d) Exhibits: See “Exhibit Index” below.

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 hereunto

                               duly authorized.

		PEOPLES BANCORP INC.
Date:  October 21, 2008	By:/s/	EDWARD G. SLOANE
		Edward G. Sloane
		Chief Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit Number	Description
99	News Release issued October 20, 2008

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EX-99

PEOPLES BANCORP INC. – P.O. BOX 738 - MARIETTA, OHIO – 45750

                                                      www.peoplesbancorp.com

 NEWS RELEASE

FOR IMMEDIATE RELEASE                                                                                           Contact:    Mark F. Bradley

October 20, 2008                                                                                                      President and Chief Executive Officer      

                    (740) 373-3155

PEOPLES BANK COMPLETES SALE OF

BANKING OFFICE IN GRAYSON, KENTUCKY

_____________________________________________________________________

MARIETTA, Ohio – Peoples Bank, National Association (“Peoples Bank”), a wholly-owned subsidiary of Peoples Bancorp Inc. (NASDAQ: PEBO), announced today that it has completed the sale of its Grayson, Kentucky banking office (“Grayson office”) to First National Bank of Grayson effective at the close of business on October 17, 2008.

The transaction was first announced in May 2008.  The Grayson office has $13.4 million of deposits and $2.0 million in loans.  First National Bank of Grayson paid $475,000 for the full-service office’s loans, deposits, and fixed assets.  The premium paid on deposits is approximately $255,000 or 1.91% of deposits.

Peoples Bank continues to operate full-service banking offices in Kentucky’s Boyd and Greenup counties through locations in Ashland, Russell, Greenup, and Summit, as well as two full-service offices in Huntington, West Virginia.  Peoples Bank also makes available insurance services through Putnam Agency’s offices in Ashland, Kentucky and Huntington, West Virginia.

Peoples Bancorp Inc. is a diversified financial products and services company with $1.9 billion in assets, 49 locations and 38 ATMs in Ohio, West Virginia and Kentucky.  Peoples makes available a complete line of banking, investment, insurance, and trust solutions through its financial service units – Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com.

END OF RELEASE