On January 21, 2014, First Midwest Bancorp Inc. entered into a loan agreement with U.S. Bank National Association (the lender) providing for a $35 million short term, unsecured revolving credit facility. The company intends to use any proceeds from the credit facility for general short term corporate purposes. Advances under the loan agreement will bear interest at a rate equal to one-month LIBOR plus 1.75% per annum, adjusted on a monthly basis.

In addition, the company is required to pay the lender an unused facility fee equal to 0.30% per annum. During the term of the credit facility, the company must repay all advances for a period of thirty consecutive calendar days. The credit facility will mature on January 20, 2015.

The agreement contains certain representations and warranties pertaining to, among other matters, (i) the company's continued ownership of its shares of First Midwest Bank (FMB) stock free and clear of any pledges and liens, (ii) the company's and FMB's financial condition, and (iii) certain loans of FMB, all of which remain in effect during the term of the credit facility. The agreement also contains certain general and financial covenants that must be satisfied during the term of the credit facility. The general covenants include, among others, restrictions on (i) mergers where the company is not the surviving entity, (ii) the ability of the company to pay any dividends on or redeem any of its capital stock if an event of default has occurred and is continuing, and (iii) the company incurring certain indebtedness or placing certain liens on its properties.