Herald National Bank Enters Into Formal Agreement With Office of the Comptroller of the Currency (“OCC”)

Herald National Bank (NYSE AMEX: HNB), a New York-based full-service commercial bank, announced today that on April 22, 2010, the Bank entered into a formal agreement with the United States Comptroller of the Currency (“OCC”). The OCC is the primary regulator for national banks.

The formal agreement is based on the results of the Bank’s first formal regulatory examination using the Uniform Financial Institution Rating System (UFIRS) which assigns CAMELS Ratings. A copy of the agreement has been filed as an exhibit to the Bank’s Form 8-K filed today with the OCC and is available within the investor relations tab of the Bank’s website, www.heraldnb.com.

The Bank is “well-capitalized” at this time, and entry into the agreement has no impact on the bank’s regulatory capital status. In addition, the formal agreement has no impact on the Bank’s continued participation in the Transaction Account Guarantee Program (TAGP), which provides unlimited federal deposit insurance for certain non-interest bearing business transaction accounts.

“We view the agreement between the OCC and the Bank to be both timely and constructive. As a de novo bank in our formative years, maintaining close communications with our regulators and developing and implementing policies and procedures that support our business plan are critical to aligning our long term plans with the expectations of the Comptroller,” stated Raymond A. Nielsen, Herald National Bank Chairman and Chief Executive Officer.

The Board of Directors and Executive Management have begun the corrective process called for in the agreement, including the appointment of a Compliance Committee to oversee compliance by the bank with the formal agreement and to submit quarterly progress reports to the OCC.

“Since assuming the additional role of CEO on March 31, 2010, simultaneous with the completion of our private placement capital offering, my focus is on the key issues of regulatory compliance, and governance, as well as the strategic planning process including business and capital planning, and risk management initiatives,” Nielsen continued.

“Our charge from this point is clear: manage and maintain our clean balance sheet and control our rate of growth in a manner that is supportive of our clients while minimizing portfolio risk,” added President David S. Bagatelle.

Financial information for the first quarter of 2010 will be made available through the Bank’s forthcoming Quarterly Earnings report for the period ending March 31, 2010, which is scheduled for release on May 3, 2010.

About Herald National Bank

Herald National Bank is a relationship-based banking institution dedicated to serving the commercial and private banking needs of small to mid-size businesses, their owners, executives and senior managers, as well as high-net-worth individuals in the New York metropolitan area. Herald National Bank presently has three offices located in Manhattan (623 Fifth Avenue), Brooklyn (1333 60th Street), and Melville, Long Island (58 South Service Road). As of December 31, 2009 the Bank had $443 million in assets of which $301 million were loans. Deposits at December 31, 2009 were $405 million, of which 93% were core deposits and 35% of which were checking accounts, largely the operating accounts of the businesses served by the Bank.

For more information, visit www.heraldnb.com.

Forward Looking Statements Disclaimer

Certain matters in this press release constitute forward-looking statements that involve assumptions and potential risks and uncertainties, which are made in a manner consistent with the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance and achievements of Herald National Bank to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include: general economic, capital market and business conditions; risks arising from litigation or similar proceedings; interest rate fluctuations; levels of delinquent loans; employee turnover; government regulation; and those other factors discussed in the filings of Herald National Bank with the Office of the Comptroller of the Currency. Herald National Bank undertakes no obligation, and expressly disclaims any obligation, to update publicly or revise any forward-looking statement, which speaks only as of the date it is made, whether as a result of new information, future events or otherwise.

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