The $851 million Arrowhead Credit Union has sold it insurancesubsidiary, Sawyer Cook Insurance, several publications recentlyreported.

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Terms of the transaction, completed on Feb. 26, were notdisclosed. Arrowhead CU President/CEO Larry Sharp was not availableto respond to questions at press time. The San Bernardino,Calif.-based Sawyer Cook was sold to another unnamed insurancefirm, according to a March 1, 2010 article in The Sun.Darrel Olson, president/CEO of Sawyer Cook, was unavailable tocomment on the deal.

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According to Sawyer Cook's Web site, the firm was founded in1924 in Redlands, Calif. under the name of Dexter, Sawyer RealEstate & Insurance. In 1960, it merged with Richard Cook, thecompany under the new nameplate Sawyer Cook Insurance. Arrowheadbrought the firm under its family of CUSOs in 2002 through theArrowhead Financial Group. In addition to business, personal andmarine insurance, the insurance firm also offered investment andfinancial planning services through the Arrowhead InvestmentCenter.

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Arrowhead CFO Daniel Marciante told The Sun that theSawyer Cook sale will add $750,000 to the CU's projected profit for2010. The insurance firm's buyer laid off nine employees but kept13 on staff, the publication reported.

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“It will stop losses to our bottom line,” Marciante told thepublication.

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The sale is the latest in several cost-cutting moves forArrowhead. In 2009, the CU closed four of its 28 branches and laidoff nearly 60 employees. The San Bernardino, Calif.-basedcooperative had to raise it capitalization ratio after stateregulators discovered it was significantly undercapitalized.According to NCUA December 2009 call report data, the wholly ownedCUSO Arrowhead Financial Group had total assets of $4.59 millionand $22.82 million in total capital. The CUSO had a loss of $18.8million.

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After a ten-year run, Arrowhead shut down Arrowhead Trust Inc.in 2005. At the time, Sharp said the trust firm did not live up tofinancial expectations even after acquiring a bank's $300 millionretirement plan portfolio.

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