EXHIBIT 99

                                 Press Release












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.