WORTHERN BANKING <WOR> IN AGREEMENT WITH FEDS
Worthern Banking Corp said it
entered into a formal written agreement with the Federal
Reserve Bank of St. Louis.
    The corporation said it will submit written plans and
reports on a regular basis to the Reserve Bank on several
matters, including current and future dividend policy for the
corporation and its affiliates.
    It also will inform the Reserve Bank about retaining an
independent management corporation to appoint a chairman of its
board, and it will first get approval from the Reserve Bank
before it takes on any more debt.
    In addition, Worthern said it will report on its
maintenance of adequate capital at the corporation and its 
affiliate banks, its strategic business plan for the remainder
of 1987 and 1988, and its improvement in the corporation's and
certain non-banking affiliates' position with respect to
certain assets previously subject to adverse classification.
    In addition, Worthern will provide the Federal Reserve Ban
with quarterly progress reports specifying the actions taken to
secure compliance with the agreement together with quarterly
balance sheets and income statements.
    Separately, Worthern said its results of oeperations for
the year ended Dec 31, 1986, previously announced Jan 29, 1987,
would be revised to reflect additional loan and lease loss
reserves and loan charge-offs, resulting in additional losses
for that period.
 Reuter
