SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 30,1996
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REDWOOD FINANCIAL, INC.
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(Exact name of Registrant as specified in its Charter)
Minnesota 0-25884 41-1807233
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
301 S. Washington Street, P.O. Box 317, Redwood Falls, Minnesota 56283
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (507) 637-8730
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Not Applicable
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(Former name or former address, if changed since last Report)
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Item 5. Other Events
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The Registrant issued a press release on December 30, 1996, announcing
that the letter of intent ("Letter") with Olivia Bancorporation, Inc. ("Olivia")
and American State Bank of Olivia (the "Bank") dated November 1, 1996 and
executed November 4, 1996 for the acquisition of Olivia and the Bank by the
Registrant terminated.
Consummation of the proposed acquisition was subject to several
conditions, including the completion of satisfactory due diligence by the
Registrant. Upon completion of due diligence, the Registrant decided that it
could not offer the consideration disclosed in the Letter. After further
negotiations, the parties could not reach agreement on a revised price for the
proposed acquisition.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits:
Exhibit 99 - Press Release dated December 30, 1996
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
REDWOOD FINANCIAL, INC.
Date: December 30, 1996 By: /s/ Paul W. Pryor
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Paul W. Pryor
President
EXHIBIT 99
Press Release
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PRESS RELEASE
Contact: Paul W. Pryor, Chief Executive Officer
Redwood Financial, Inc.
(507) 637-8730
For Immediate Release
December 30, 1996
LETTER OF INTENT BY AND AMONG OLIVIA BANCORPORATION, INC.,
AMERICAN STATE BANK OF OLIVIA
AND REDWOOD FINANCIAL, INC. TERMINATED
Redwood Falls, Minnesota -- December 30, 1996 -- Redwood Financial, Inc.
("Redwood"), Redwood Falls, Minnesota, the holding company of Redwood Falls
Federal Savings and Loan Association (the "Association") announced today that
the letter of intent dated November 1, 1996 (the "Letter of Intent") by and
among Redwood, American State Bank of Olivia (the "Bank") and Olivia
Bancorporation, Inc. ("Olivia") which owns 97.6% of the outstanding stock of the
Bank providing for the proposed acquisition of Olivia and the Bank by Redwood,
terminated and no further negotiations between the parties will be conducted in
the foreseeable future.
The transaction was subject to, among other things, the completion of a
due diligence examination by Redwood. Upon completion of the due diligence
examination, the Board of Directors of Redwood decided that Redwood could not
offer the consideration disclosed in the Letter of Intent. After further
negotiations the parties could not agree upon a revised price for the proposed
acquisition.
The Association is a federally chartered stock savings and loan
association headquartered in Redwood Falls, Minnesota. The Association has two
full service offices located in Redwood and Renville Counties, Minnesota. The
Association's deposits are federally insured by the FDIC. The Association is a
community oriented, full service retail savings and loan association offering
traditional mortgage loan products. At September 30, 1996, Redwood, on a
consolidated basis, had total assets and stockholders' equity of $51.0 million
and $13.2 million, respectively.
The common stock of Redwood (trading symbol "REDW") is listed on the OTC
Bulletin Board of Nasdaq.
