Two Indiana community banks have announced plans for a merger of equals that would create a $650 million-asset company in the southern and eastern parts of the state.

Under the agreement between Indiana United Bancorp, Greensburg, and P.T.C. Bancorp, Brookville, the new company would operate 28 offices in 12 counties. The parent would retain the Indiana United name.

The companies' three subsidiaries would retain their separate charters, local boards, and "high levels" of decision-making authority, according to a press release. Indiana United is the parent of Union Bank and Trust Co. of Indiana and Regional Federal Savings Bank. P.T.C. owns Peoples Trust Co.

Robert E. Hoptry, chairman and chief executive officer of Indiana United, would retain those titles, while James L. Saner, president and chief executive officer of P.T.C., would become president and chief operating officer of the combined entity. The combined board would have an equal number of directors from both banks.

Officials said they expect the merger to add to earnings beginning in the first quarter next year.

The agreement calls for P.T.C. shareholders to receive 1.075 share of Indiana United stock for each of their shares. The transaction, subject to shareholder and regulatory approval, is expected to close by yearend 1997.

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