WASHINGTON, Dec 30 - Midwest Banc Holdings (MBHI.O) has entered into a written agreement with federal regulators to strengthen its board oversight and credit risk management as w 536870913 1701604384

The small Illinois lender, which had received about $85 million in Troubled Asset Relief Program funds earlier this year, also agreed to restrict risky lending practices and not pay divid 536870913 1701733491

The troubled community bank had $3.5 billion in assets as of Sept. 30. It mainly operated through its subsidiaries Midwest Bank and Trust Co and Midwest Financial and Investment Services 1231971118

The company said earlier this month that private investors could infuse as much as $190 million in the firm and it was in talks with the U.S. Treasury to convert the government-held prefer 536870913 1919247392 (Reporting by Karey Wutkowski; Editing by Neil Stempleman)