Exhibit 99




































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Permanent
Bancorp, Inc., Holding Company for Permanent Federal Savings Bank

                                  NEWS RELEASE



Donald P. Weinzapfel
Chairman of the Board,                                     FOR IMMEDIATE RELEASE
President & Chief                                          ---------------------
Executive Officer                                               May 22, 1997
Permanent Bancorp, Inc.
101 S.E. Third Street                                    FOR FURTHER INFORMATION
Evansville, IN  47708                                    -----------------------
812/428-6800                                                    Carl E. Root
                                                                812/428-6804


           PERMANENT BANCORP, INC. ANNOUNCES INCREASE IN CASH DIVIDEND 


         EVANSVILLE, INDIANA  (NASDAQ--"PERM")--Permanent  Bancorp, Inc., parent
corporation  of Permanent  Federal  Savings Bank, has announced that the Company
will  increase its cash  dividend to $.10 per share for the quarter  ending June
30, 1997. The Company's Board of Directors made the  announcement at its May 20,
1997  meeting.  The cash  dividend  represents a 33% increase over the $.075 per
share  cash  dividend  paid  during the fiscal  year  ended  March 31,  1997 and
represents  the second  consecutive  hike from the initial  dividend of $.05 per
share paid during the fiscal year 1996.

         The  announced  increase  in the  dividend  comes  on the  heels of the
Company's  annual  earnings  report which  highlighted  a 90% increase in annual
earnings before a one-time  industry-wide  assessment by the Savings Association
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC").

         In addition to the dividend announcement, the Company also stated plans
to recommence the previously  disclosed  stock  repurchase  program where 5%, or
approximately  107,000 of the  outstanding  shares were to be reacquired in open
market transactions.

         Permanent  Bancorp,  Inc.,  at March  31,  1997,  had  assets of $423.8
million and deposits of $280.8 million.

















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