Frost Bank in San Antonio and a securities firm have agreed to share their bank clients with each other.

The Baker Group in Oklahoma City will refer community banks that it serves to Frost for securities safekeeping services. And Frost will recommend Baker's asset and liability management services to its small-bank clients.

Both parties announced the agreement late Tuesday.

"We deal with hundreds of financial institutions, and there's no regional bank more admired than Frost for its integrity, customer service and strong advocacy on behalf of community banking," Baker's president and chief executive, David Daugherty, said in a press release. Daugherty named financial strategies analyst Mark Baumann to lead the group's partnership with Frost. And the bank hired Jeff McQueen to lead its correspondent program outside of Texas.

Shares at Frost's parent, Cullen/Frost Bankers (CFR), rose 32 cents to $57.60 a share by Wednesday afternoon.

Frost has more than 250 bank clients in Texas, Arkansas, Illinois and Oklahoma. But this agreement takes Frost's correspondent business nationwide. Baker works with more than 800 financial institutions throughout the country.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.