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Harrisburg Bank, Houston's second oldest remaining community bank, has been sold to Frost National Bank in a $55 million stock deal.
The sale price was 2.2 times the bank's book value and 18 times its annual earnings of about $3 million, says Bill Strunk of Strunk & Associates, a banking consultant.
The deal surprised many people both because of the high price and the fact that Harrisburg Bank has traditionally not been for sale.
"Frost apparently sees some value there and some savings by folding it into their operation," Strunk says. "It's a good bank with a good location, but not high performing."
Frost reportedly outbid Houston-based Sterling Bank …