Exhibit 99.1
                        PROXY

        THIS PROXY IS SOLICITED ON BEHALF OF
               THE BOARD OF DIRECTORS
     FOR THE SPECIAL MEETING OF SHAREHOLDERS OF
            PEOPLES BANCORP OF WASHINGTON

     I hereby appoint _________________________ and
____________________________, and each of them, my
proxies, with power of substitution, to vote all Common
Shares of Peoples Bancorp of Washington that I am
entitled to vote at the Special Meeting of Shareholders
to be held at the principal office of The Peoples
National Bank and Trust Company, 201 East Main Street,
Washington, Indiana, on _______________, 1996 at _____
a.m., Washington time, and any adjournments thereof, as
provided herein.

     THIS PROXY WILL BE VOTED AS SPECIFIED.  IN THE
ABSENCE OF SPECIFICATIONS, THIS PROXY WILL BE VOTED FOR
ITEM 1.  THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR
ITEM 1.
     
     This proxy may be revoked at any time prior to its
exercise upon compliance with the procedures set forth
in the Corporation's Prospectus/Proxy Statement, dated
________, 1996.

     SHAREHOLDERS SHOULD MARK, SIGN AND DATE THIS PROXY
AND RETURN IT PROMPTLY IN THE ENCLOSED POST-PAID
ENVELOPE.

     1.   MERGER OF PEOPLES BANCORP OF WASHINGTON WITH
          AND INTO A WHOLLY-OWNED SUBSIDIARY OF GERMAN
          AMERICAN BANCORP

          [ ] FOR     [ ]  AGAINST     [ ]  ABSTAIN

     2.   In their discretion, the proxies are
          authorized to vote upon such other business
          as may properly come before the meeting.

Dated:   _________________                            

                   _______________________             
                   _______________________   
                   Signature or Signatures

                   (Please sign exactly as your name
                   appears on this proxy.  If shares
                   are issued in the name of two or
                   more persons, all such persons
                   should sign.  Trustees, executors
                   and others signing in a
                   representative capacity should
                   indicate the capacity in which they
                   sign.)
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