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               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 7,
1998

                     SOVEREIGN BANCORP, INC.
     (Exact name of registrant as specified in its charter)

        Pennsylvania               0-16533           23-2453088  
(State or other jurisdiction     (Commission       (IRS Employer
      of incorporation)          File Number)       Ident. No.)

1130 Berkshire Boulevard, Wyomissing, Pennsylvania      19610    
     (Address of principal executive offices)        (Zip Code)

Registrant's telephone number, including area code (610) 320-8400

                               N/A                              
 (Former name or former address, if changed since last report.)

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Item 5.  Other Events.

     On September 7, 1998, Sovereign Bancorp, Inc. (the
"Company") and Peoples Bancorp, Inc. ("Peoples"), Lawrenceville,
New Jersey, entered into an Agreement and Plan of Merger (the
"Agreement") providing for the statutory merger of Peoples with
and into the Company.  The terms of the Agreement are more
particularly described in the Company's press release, dated
September 8, 1998, attached hereto as Exhibit 99.1 and
incorporated herein by reference. 

Item 7.  Financial Statements and Exhibits.

     (a)  Exhibits.

          The following exhibit is filed herewith:

          99.1 Press Release, dated September 8, 1998, of
               Sovereign Bancorp, Inc.
  PAGE 1

                           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.

                              SOVEREIGN BANCORP, INC.

Dated:  September 10, 1998
                              /s/ Dennis S. Marlo              
                              Dennis S. Marlo
                              Chief Financial Officer
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                          EXHIBIT INDEX

Exhibit Number

     99.1 Press Release, dated September 8, 1998, of Sovereign
          Bancorp, Inc.  <PAGE 3>