$32 million Deal Value

NYSE Alternext : HNB

NYSE Alternext : HNB

Has received an investment from an

Co-manager for Herald National Bank

Co-manager for Herald National Bank

March 2010

Freeman & Co. Participates in $32MM Capital Raised by Herald National Bank
March 2010
Private Equity, Specialty Finance
Capital Raise
Deal Value

Herald National Bank has raised $32 million from an Investor Group

April 5, 2010 (New York, NY) – Freeman & Co. Securities LLC congratulates its client Herald National Bank (NYSE AMEX: HNB), a New York-based full-service commercial bank, on its completion of a private placement of approximately $32 million. Freeman & Co. participated in placing the offering which was announced on April 2, 2010.

"The capital raise enhances Herald National Bank’s capital position and increases our pro-forma tier one capital ratio to a level considerably in excess of that required of de novo banks, which is significantly higher than the ratio required of older more established banks,” stated Herald National Bank President, David S. Bagatelle. “We are pleased to have the support of our institutional investors and look forward to working with them as we continue to build our relationship based franchise in the New York metropolitan area," he concluded.

"The investors in this offering have reaffirmed their confidence in our business plan and our ability to execute. Unlike many offerings in the financial services sector these days, our offering was not about balance sheet repair, rather the capital we raised strengthens our bank’s ability to work with and lend to many of the premier middle market businesses in our market area,” added Chairman of the Board and CEO, Raymond A. Nielsen.

New York-based, Clinton Group was the lead investor in the offering with a 24.9% investment in the Bank. In total five new institutional investors participated in the offering including: The Clinton Group, Blue Atlantic Capital, Triumph Investment Funds, and ALDA Capital, LLC. In addition to the new investors, four of Herald National Bank’s initial institutional investors and Raymond A. Nielsen also participated in the private placement.