FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

(Mark One)

[X]           QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended             March 31, 1999
                               -----------------------------------------------

                                       OR

[ ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _______________

Commission File Number 2-47541

                              RIVER VALLEY BANCORP
             (Exact name of registrant as specified in its charter)

Indiana                                                   35-1984567
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                            Identification Number)

303 Clifty Drive
Madison, Indiana                                          47250 
------------------------------------                      ---------
(Address of principal                                     (Zip Code)
executive office)

Registrant's telephone number, including area code: (812) 273-4949

Check  whether  the issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports)  and (2) has been subject to such filing  requirements  for the past 90
days.

Yes   X                                                  No      

As of May  12,  1999,  the  latest  practicable  date  1,108,740  shares  of the
registrant's common stock, without par value, were issued and outstanding.









                               Page 1 of 16 pages

<PAGE>


                              River Valley Bancorp

                                      INDEX

                                                                          Page

PART I  - FINANCIAL INFORMATION

            Consolidated Statements of Financial Condition                    3

            Consolidated Statements of Earnings                               4

            Consolidated Statements of Comprehensive Income                   5

            Consolidated Statements of Cash Flows                             6

            Notes to Consolidated Financial Statements                        8

            Management's Discussion and Analysis of
            Financial Condition and Results of
            Operations                                                       10


PART II - OTHER INFORMATION                                                  15

SIGNATURES                                                                   16





























                                        2



<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                        (In thousands, except share data)

                                                                                          March 31,        December 31,
         ASSETS                                                                                1999                1998
<S>                                                                                           <C>                   <C>
Cash and due from banks                                                                    $  3,583            $  4,014
Federal funds sold                                                                            1,500                 825
Interest-earning deposits in other financial institutions                                     4,912               7,468
                                                                                            -------             -------
         Cash and cash equivalents                                                            9,995              12,307

Investment securities designated as available for sale - at market                            5,262                 283
Investment securities held to maturity - at amortized cost, approximate market
  value of $983 and $980 as of March 31, 1999 and December 31, 1998                           1,000               1,000
Mortgage-backed securities designated as available for sale - at market                       2,480               2,796
Mortgage-backed and related securities held to maturity - at cost, approximate
  market value of $2,850 and $3,220 as of March 31, 1999 and December 31, 1998                2,972               3,190
Loans receivable - net                                                                      108,963             108,684
Loans held for sale - at lower of cost or market                                              2,053               3,701
Real estate acquired through foreclosure                                                         -                   82
Office premises and equipment - at depreciated cost                                           2,161               2,023
Federal Home Loan Bank stock - at cost                                                          943                 943
Accrued interest receivable on loans                                                            952                 987
Accrued interest receivable on mortgage-backed and related securities                            33                  40
Accrued interest receivable on investments and interest-earning deposits                         62                  29
Goodwill, net of accumulated amortization                                                        48                  50
Cash surrender value of life insurance                                                          827                 818
Prepaid expenses and other assets                                                               250                 373
Prepaid federal income taxes                                                                    338                 405
Deferred tax asset                                                                              652                 658
                                                                                            -------             -------

         Total assets                                                                      $138,991            $138,369
                                                                                            =======             =======

         LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                                                   $118,458            $118,151
Other borrowed money                                                                            941                 270
Advances by borrowers for taxes and insurance                                                    59                  34
Accrued interest payable                                                                        378                 468
Other liabilities                                                                               873                 763
Dividends payable                                                                                68                  70
                                                                                            -------             -------
         Total liabilities                                                                  120,777             119,756

Stockholders' equity
  Preferred stock - 2,000,000 shares without par value
    authorized; no shares issued                                                                 -                   - 
  Common stock - 5,000,000 shares without par value authorized;
    1,131,940 and 1,173,440 shares issued and outstanding at
    March 31, 1999 and December 31, 1998                                                         -                   - 
  Additional paid in capital                                                                 10,466              11,036
  Retained earnings - substantially restricted                                                8,967               8,789
  Shares acquired by stock benefit plans                                                     (1,199)             (1,199)
  Unrealized losses on securities designated as available for sale,
    net of related tax effects                                                                  (20)                (13)
                                                                                            -------             -------
         Total stockholders' equity                                                          18,214              18,613
                                                                                            -------             -------

         Total liabilities and stockholders' equity                                        $138,991            $138,369
                                                                                            =======             =======

</TABLE>


                                        3


<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                       CONSOLIDATED STATEMENTS OF EARNINGS

                      For the three months ended March 31,

                        (In thousands, except share data)

                                                                                1999                  1998
<S>                                                                            <C>                    <C>
Interest income
  Loans                                                                       $2,206                $2,247
  Mortgage-backed and related securities                                          83                   119
  Investment securities                                                           39                    56
  Interest-earning deposits and other                                            117                    66
                                                                               -----                 -----
         Total interest income                                                 2,445                 2,488

Interest expense
  Deposits                                                                     1,184                 1,194
  Borrowings                                                                       4                    34
                                                                               -----                 -----
         Total interest expense                                                1,188                 1,228
                                                                               -----                 -----

         Net interest income                                                   1,257                 1,260

Provision for losses on loans                                                     60                    75
                                                                               -----                 -----

         Net interest income after provision for losses on loans               1,197                 1,185

Other income
  Gain on sale of loans                                                           16                    96
  Service fees, charges and other operating                                      189                   208
                                                                               -----                 -----
         Total other income                                                      205                   304

General, administrative and other expense
  Employee compensation and benefits                                             533                   512
  Occupancy and equipment                                                        132                   100
  Amortization of goodwill                                                         2                     7
  Data processing                                                                 25                    32
  Other operating                                                                302                   323
                                                                               -----                 -----
         Total general, administrative and other expense                         994                   974
                                                                               -----                 -----

         Earnings before income taxes                                            408                   515

Income taxes
  Current                                                                        152                    52
  Deferred                                                                        10                   142
                                                                               -----                 -----
         Total income taxes                                                      162                   194
                                                                               -----                 -----

         NET EARNINGS                                                         $  246                $  321
                                                                               =====                 =====

         EARNINGS PER SHARE
           Basic                                                                $.22                  $.29
                                                                                 ===                   ===

           Diluted                                                              $.22                  $.28
                                                                                 ===                   ===

</TABLE>





                                        4


<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                      For the three months ended March 31,
                                 (In thousands)

                                                                                                 1999              1998
<S>                                                                                              <C>                 <C>
Net earnings                                                                                     $246              $321

Unrealized holding gains (losses) during the period, net of tax                                    (7)               11
                                                                                                  ---               ---

Comprehensive income                                                                             $239              $332
                                                                                                  ===               ===


</TABLE>





































                                        5



<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                      For the three months ended March 31,
                                 (In thousands)

                                                                                                 1999              1998
<S>                                                                                              <C>                <C>
Cash flows from operating activities:
  Net earnings for the period                                                                 $   246           $   321
  Adjustments to reconcile net earnings to net cash provided
  by (used in) operating activities:
    Amortization of premiums  and discounts on investments and
      mortgage-backed securities - net                                                             (8)               23
    Loans originated for sale in the secondary market                                          (3,689)           (5,676)
    Proceeds from sale of loans in the secondary market                                         5,372             5,562
    Gain on sale of loans                                                                         (35)              (34)
    Amortization of deferred loan origination costs                                                18                24
    Provision for losses on loans                                                                  60                75
    Depreciation and amortization                                                                  58                55
    Amortization of goodwill                                                                        2                 7
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable on loans                                                         35                18
      Accrued interest receivable on mortgage-backed securities                                     7               (62)
      Accrued interest receivable on investments and interest-earning deposits                    (33)              (10)
      Prepaid expenses and other assets                                                           123               (45)
      Accrued interest payable                                                                    (90)              (61)
      Other liabilities                                                                           108               (85)
      Income taxes
        Current                                                                                    67              (202)
        Deferred                                                                                   10               142
                                                                                               ------            ------
         Net cash provided by operating activities                                              2,251                52

Cash flows provided by (used in) investing activities:
  Purchase of investment securities                                                            (5,959)               - 
  Proceeds from maturity of investment securities                                               1,000                - 
  Principal repayments on mortgage-backed securities                                              511               287
  Loan principal repayments                                                                    12,074            12,105
  Loan disbursements                                                                          (12,431)           (8,712)
  Proceeds from sale of real estate acquired through foreclosure                                   82                - 
  Purchase of office equipment                                                                   (196)             (103)
  Decrease in certificates of deposit in other financial institutions - net                        -                299
  Increase in cash surrender value of life insurance                                               (9)              (15)
                                                                                               ------            ------
         Net cash provided by (used in) investing activities                                   (4,928)            3,861
                                                                                               ------            ------

         Net cash provided by (used in) operating and investing
           activities (subtotal carried forward)                                               (2,677)            3,913
                                                                                               ------            ------
</TABLE>





                                        6


<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                      For the three months ended March 31,
                                 (In thousands)

                                                                                      1999              1998
<S>                                                                                   <C>                <C>
         Net cash provided by (used in) operating and investing
           activities (subtotal brought forward)                                   $(2,677)           $3,913

Cash flows provided by (used in) financing activities:
  Net increase (decrease) in deposit accounts                                          307            (1,334)
  Proceeds from Federal Home Loan Bank advances                                         -              1,000
  Repayment of Federal Home Loan Bank advances                                          -             (3,000)
  Proceeds from other borrowed money                                                   671                - 
  Advances by borrowers for taxes and insurance                                         25                11
  Dividends on common stock                                                            (68)              (60)
  Purchase of shares                                                                  (570)               - 
                                                                                    ------             -----
         Net cash provided by (used in) financing activities                           365            (3,383)
                                                                                    ------             -----

Net increase (decrease) in cash and cash equivalents                                (2,312)              530

Cash and cash equivalents at beginning of period                                    12,307             4,868
                                                                                    ------             -----

Cash and cash equivalents at end of period                                         $ 9,995            $5,398
                                                                                    ======             =====


Supplemental disclosure of cash flow information:
 Cash paid during the year for:
    Federal income taxes                                                           $    55            $   - 
                                                                                    ======             =====

    Interest on deposits and borrowings                                            $ 1,278            $1,289
                                                                                    ======             =====


Supplemental disclosure of noncash investing and financing activities:
  Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects                                           $    (7)           $   11
                                                                                    ======             =====

  Recognition of mortgage servicing rights in accordance with
    SFAS No. 125                                                                   $    23            $   62
                                                                                    ======             =====

  Dividends payable at period end                                                  $    68            $   70
                                                                                    ======             =====

</TABLE>









                                        7



<PAGE>


                              River Valley Bancorp

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

            For the three month periods ended March 31, 1999 and 1998


River Valley  Bancorp (the  "Corporation")  is a financial  institution  holding
company whose  activities  are  primarily  limited to holding the stock of River
Valley  Financial  Bank  ("River  Valley" or the  "Bank").  The Bank  conducts a
general banking  business in  southeastern  Indiana which consists of attracting
deposits from the general public and applying those funds to the  origination of
loans  for  consumer,   residential  and  commercial   purposes.   River  Valley
Financial's  profitability  is  significantly  dependent on net interest income,
which is the difference between interest income generated from  interest-earning
assets  (i.e.   loans  and   investments)  and  the  interest  expense  paid  on
interest-bearing  liabilities (i.e.  customer deposits and borrowed funds).  Net
interest  income is affected by the relative amount of  interest-earning  assets
and  interest-bearing  liabilities  and the  interest  received or paid on these
balances.  The  level of  interest  rates  paid or  received  by the Bank can be
significantly   influenced  by  a  number  of  competitive   factors,   such  as
governmental monetary policy, that are outside of management's control.

1.  Basis of Presentation

The accompanying  unaudited  consolidated  financial statements were prepared in
accordance  with  instructions  for Form 10-QSB and,  therefore,  do not include
information  or footnotes  necessary  for a complete  presentation  of financial
position,  results of  operations  and cash flows in conformity  with  generally
accepted accounting principles.  Accordingly,  these financial statements should
be read in  conjunction  with the  consolidated  financial  statements and notes
thereto of the Corporation  included in the Annual Report on Form 10-KSB for the
year ended  December  31,  1998.  However,  in the  opinion of  management,  all
adjustments  (consisting of only normal recurring  accruals) which are necessary
for a fair  presentation  of the financial  statements  have been included.  The
results of  operations  for the three month  period ended March 31, 1999 are not
necessarily indicative of the results which may be expected for the entire year.

2.  Principles of Consolidation

The consolidated  financial  statements  include the accounts of the Corporation
and its subsidiary,  the Bank and the Bank's  subsidiary,  Madison First Service
Corporation  ("First  Service").   All  significant  intercompany  balances  and
transactions  have been eliminated in the  accompanying  consolidated  financial
statements.

3.  Effect of Recent Accounting Pronouncements

In June 1998,  the  Financial  Accounting  Standards  Board (the "FASB")  issued
Statement of Financial  Accounting  Standards ("SFAS") No. 133,  "Accounting for
Derivative  Instruments  and Hedging  Activities,"  which  requires  entities to
recognize  all  derivatives  in their  financial  statements as either assets or
liabilities  measured at fair value.  SFAS No. 133 also specifies new methods of
accounting for hedging transactions,  prescribes the items and transactions that
may be hedged,  and specifies  detailed  criteria to be met to qualify for hedge
accounting.



                                        8


<PAGE>


                              River Valley Bancorp

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

            For the three month periods ended March 31, 1999 and 1998


3.  Effect of Recent Accounting Pronouncements (continued)

The definition of a derivative  financial instrument is complex, but in general,
it is an instrument  with one or more  underlyings,  such as an interest rate or
foreign exchange rate, that is applied to a notional  amount,  such as an amount
of currency,  to determine the settlement  amount(s).  It generally  requires no
significant initial investment and can be settled net or by delivery of an asset
that is  readily  convertible  to cash.  SFAS No.  133  applies  to  derivatives
embedded in other contracts, unless the underlying of the embedded derivative is
clearly and closely related to the host contract.

SFAS No. 133 is effective  for fiscal years  beginning  after June 15, 1999.  On
adoption, entities are permitted to transfer held-to-maturity debt securities to
the  available-for-sale  or trading category without calling into question their
intent to hold other debt securities to maturity in the future.  SFAS No. 133 is
not  expected  to  have  a  material  impact  on  the  Corporation's   financial
statements.

4.  Earnings Per Share

Basic  earnings  per share is computed  based upon the  weighted-average  shares
outstanding during the period,  less shares in the ESOP that are unallocated and
not committed to be released.  Weighted-average common shares outstanding, which
gives effect to 71,730 and 83,124  unallocated ESOP shares at March 31, 1999 and
1998, respectively,  totaled 1,098,216 and 1,107,126 for the three month periods
ended March 31, 1999 and 1998, respectively.

Diluted earnings per share is computed taking into  consideration  common shares
outstanding  and  dilutive  potential  common  shares  to be  issued  under  the
Corporation's   stock  option  plan.   Weighted-average   common  shares  deemed
outstanding  for  purposes  of  computing  diluted  earnings  per share  totaled
1,098,216  and  1,131,340  for the three month  periods ended March 31, 1999 and
1998, respectively.

There were 24,214  incremental  shares related to the assumed  exercise of stock
options in the  computation  of diluted  earnings per share for the period ended
March 31,  1998.  Options  to  purchase  103,939  shares of common  stock with a
weighted  average price of $14.81 were  outstanding  at March 31, 1999, but were
excluded from the  computation of common share  equivalents  because their share
prices were greater than the average market price of the common shares.

5.  Reclassifications

Certain  reclassifications  have  been made to the 1998  consolidated  financial
statements to conform to the March 31, 1999 presentation.





                                        9



<PAGE>


                              River Valley Bancorp

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

            For the three month periods ended March 31, 1999 and 1998


Forward-Looking Statements

In addition to historical information contained herein, the following discussion
contains  forward-looking  statements  that  involve  risks  and  uncertainties.
Economic  circumstances,  the  Corporation's  operations  and the  Corporation's
actual  results  could  differ   significantly   from  those  discussed  in  the
forward-looking  statements.  Some of the factors that could cause or contribute
to such differences are discussed herein but also include changes in the economy
and interest rates in the nation and the Corporation's market area generally.

Some of the  forward-looking  statements  included  herein  are  the  statements
regarding management's determination of the amount and adequacy of the allowance
for  losses on loans,  the  effect  of the year 2000 on  information  technology
systems and the effect of certain recent accounting pronouncements.


Discussion of Financial Condition Changes from December 31, 1998 to March 31,
1999

At March 31, 1999, the Corporation's consolidated assets totaled $139.0 million,
an increase of  $622,000,  or .4%,  from the  December  31, 1998 total of $138.4
million.  The increase in assets was funded primarily by an increase in deposits
of $307,000,  and an increase in other  borrowed  money of $671,000,  which were
partially offset by a $399,000 decrease in stockholders' equity.

Liquid assets (i.e.,  cash,  federal funds sold and  interest-earning  deposits)
decreased  by $2.3 million  from  December 31, 1998 levels,  to a total of $10.0
million at March 31, 1999.  Mortgage-backed and investment  securities increased
by $4.4 million,  or 61.2%,  to a total of $11.7 million at March 31, 1999,  due
primarily to purchases of short-term  investments  of $6.0  million,  which were
partially  offset  by  principal   repayments  on  mortgage-backed  and  related
securities  totaling  $511,000 and  maturities of investment  securities of $1.0
million.

Loans receivable, including loans held for sale, totaled $111.0 million at March
31, 1999, a decrease of $1.4 million,  or 1.2%, from the $112.4 million total at
December 31, 1998. The decrease resulted primarily from principal  repayments of
$12.1 million and sales of $5.3 million,  which were offset by loan originations
during the period of $16.1 million.  Loan origination  volume during the current
period exceeded that of the 1998 period by $1.7 million, or 12.0%.

The Corporation's consolidated allowance for loan losses totaled $1.5 million at
both March 31, 1999 and December 31, 1998, which represented 1.4% of total loans
at those dates. Nonperforming loans (defined as loans delinquent greater than 90
days and loans on  nonaccrual  status)  totaled $1.4 million and $1.9 million at
March 31, 1999 and December 31, 1998, respectively. Although management believes
that its  allowance for loan losses at March 31, 1999,  was adequate  based upon
the available facts and circumstances,  there can be no assurance that additions
to  such  allowance  will  not be  necessary  in  future  periods,  which  could
negatively affect the Corporation's results of operations.


                                       10


<PAGE>


                              River Valley Bancorp

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

            For the three month periods ended March 31, 1999 and 1998


Discussion  of Financial  Condition  Changes from December 31, 1998 to March 31,
1999 (continued)

Deposits increased by $307,000,  or .3%, to a total of $118.5 million,  compared
to the  $118.2  million  total at  December  31,  1998.  The  increase  resulted
primarily  from  management's  continuing  marketing  efforts  in  view  of  the
increased   competition   from  other  local   institutions  and  other  deposit
alternatives.

Stockholders'  equity  totaled  $18.2  million at March 31,  1999, a decrease of
$399,000,  or 2.1%,  from the $18.6  million  total at December  31,  1998.  The
decrease resulted  primarily from the Corporation's  repurchase of 41,500 shares
of its stock  totaling  $570,000,  a $7,000  increase  in  unrealized  losses on
securities  designated as available for sale,  and the  declaration of dividends
totaling  $68,000.  These  decreases  were  partially  offset by current  period
earnings of $246,000.

The Bank is required to maintain minimum  regulatory capital pursuant to federal
regulations.  At March 31,  1999,  the Bank's  regulatory  capital  exceeded all
applicable regulatory capital requirements.


Comparison of Results of Operations for the Three Months Ended March 31, 1999
and 1998

General

The  Corporation's  net  earnings  for the three  months  ended March 31,  1999,
totaled  $246,000,  a decrease of $75,000,  or 23.4%,  from the  $321,000 of net
earnings reported in the comparable 1998 period. The decrease in earnings in the
1999 period is primarily  attributable  to a decrease in net interest  income of
$3,000,  a decrease  in other  income of $99,000  and an  increase  in  general,
administrative  and other expense of $20,000,  which were partially  offset by a
decrease in the provision for income taxes of $32,000.

Net Interest Income

Total interest income for the three months ended March 31, 1999 amounted to $2.5
million,  a decrease of $43,000,  or 1.7%, from the comparable  quarter in 1998,
reflecting  the  effects  of  a  decline  in  average   interest-earning  assets
outstanding, coupled with a decrease in the yield year-to-year.  Interest income
on loans and  mortgage-backed  securities  totaled  $2.3  million  for the three
months ended March 31, 1999, a decrease of $77,000, or 3.3%, from the comparable
1998 quarter.  The decrease  resulted  primarily  from a $2.8 million,  or 2.3%,
decrease in the average  balance  outstanding  year-to-year.  Interest income on
investments and interest-earning deposits increased by $34,000, or 27.9%, due to
a increase in the average balance outstanding of $5.7 million.




                                       11


<PAGE>


                              River Valley Bancorp

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

            For the three month periods ended March 31, 1999 and 1998


Comparison of Results of Operations for the Three Months Ended March 31, 1999
and 1998 (continued)

Net Interest Income (continued)

Interest  expense on deposits  decreased by $10,000,  or .8%, to a total of $1.2
million for the quarter ended March 31, 1999, due primarily to a decrease in the
average cost of deposits, partially offset by an increase in the average balance
of deposits  outstanding.  Interest expense on borrowings totaled $4,000 for the
three months ended March 31,  1999,  a decrease of $30,000,  or 88.2%,  from the
comparable  quarter in 1998. The decrease resulted  primarily from a decrease in
average borrowings outstanding from year to year.

As a result of the foregoing  changes in interest  income and interest  expense,
net  interest  income  decreased  by $3,000,  or .2%, for the three months ended
March 31, 1999, as compared to the comparable quarter in 1998. The interest rate
spread amounted to approximately  3.55% for the 1999 quarter,  compared to 4.20%
in 1998, while the net interest margin totaled  approximately  3.88% in the 1999
quarter, compared to 4.03% in 1998.

Provision for Losses on Loans

A  provision  for  losses on loans is  charged  to  earnings  to bring the total
allowance for loan losses to a level considered  appropriate by management based
upon  historical  experience,  the volume and type of lending  conducted  by the
Bank, the status of past due principal and interest  payments,  general economic
conditions,  particularly as such  conditions  relate to the Bank's market area,
and other factors related to the collectibility of the Bank's loan portfolio. As
a result of such analysis, management recorded a $60,000 provision for losses on
loans for the three months ended March 31, 1999,  compared to the $75,000 amount
recorded in the 1998 period.  While  management  believes that the allowance for
losses on loans is adequate at March 31, 1999,  based upon the  available  facts
and  circumstances,  there can be no assurance that the loan loss allowance will
be adequate to cover losses on nonperforming assets in the future.

Other Income

Other income  decreased by $99,000,  or 32.6%,  for the three months ended March
31, 1999, as compared to the same period in 1998, due primarily to a $19,000, or
9.1%, decrease in service fees, charges and other operating income, coupled with
a decrease of $80,000 in gain on sale of loans.

General, Administrative and Other Expense

General,  administrative and other expense increased by $20,000, or 2.0%, during
the three months ended March 31, 1999, compared to the same period in 1998. This
increase  resulted  primarily  from a $21,000,  or 4.1%,  increase  in  employee
compensation  and  benefits,  due  primarily  to normal merit  increases,  and a
$32,000,  or 32.0%,  increase in occupancy  and  equipment  expense,  which were
partially offset by a $21,000, or 6.5%, decrease in other operating expense.


                                       12


<PAGE>


                              River Valley Bancorp

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

            For the three month periods ended March 31, 1999 and 1998


Comparison of Results of Operations for the Three Months Ended March 31, 1999
and 1998 (continued)

Income Taxes

The provision for income taxes totaled $162,000 for the three months ended March
31,  1999,  a decrease of $32,000,  or 16.5%,  as compared to the same period in
1998.  This increase  resulted  primarily from a decrease in net earnings before
taxes of $107,000, or 20.8%. The effective tax rates amounted to 39.7% and 37.7%
for the three months ended March 31, 1999 and 1998, respectively.


Year 2000 Compliance Matters

As with all providers of financial  services,  the Bank's operations are heavily
dependent  on  information  technology  systems.  The  Bank  is  addressing  the
potential  problems  associated  with the  possibility  that the computers  that
control or operate the Bank's  information  technology system and infrastructure
may not be  programmed  to read  four-digit  date codes and, upon arrival of the
year 2000,  may  recognize  the  two-digit  code "00" as the year 1900,  causing
systems to fail to function or to generate  erroneous  data. The Bank is working
with the companies that supply or service its information  technology systems to
identify and remedy any year 2000 related problems.

The Bank's core data processing  relative to customer loan and deposit accounts,
as well as the general ledger, is performed  in-house through use of a purchased
software  product.  Management  has been advised,  and certain  testing has been
performed to verify,  that the system will  continue to function upon arrival of
the year 2000.

As of the date of this Form 10-QSB,  the Bank has  identified  certain  expenses
that will be incurred by the Bank in connection  with this issue.  Such expenses
total approximately  $15,000. The Bank has established a budget of approximately
$65,000 for year 2000 related  costs.  From a review of the systems and vendors,
management  believes the budgeted amount should be sufficient.  No assurance can
be given,  however,  that  significant  expense  will not be  incurred in future
periods.  In the  event  that  the  Bank  is  ultimately  required  to  purchase
replacement  computer  systems,  programs and  equipment,  or incur  substantial
expense to make the Bank's  current  systems,  programs and equipment  year 2000
compliant,  the Bank's net earnings and financial  condition  could be adversely
affected.








                                       13



<PAGE>


                              River Valley Bancorp

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                 CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

            For the three month periods ended March 31, 1999 and 1998


Year 2000 Compliance Matters (continued)

In the event  that the Bank is unable to  process  transactions  as normal  upon
arrival of the year 2000, the Bank has access to a third-party  contingency site
with its software  vendor.  Additionally,  the Bank could  conduct  transactions
manually for a period of time, if necessary.

In addition to possible expense related to its own systems, the Bank could incur
losses if loan  payments  are delayed due to year 2000  problems  affecting  any
major  borrowers in the Bank's primary  market area. The Bank has contacted,  in
person or by mail,  most of its larger loan  customers to make them aware of the
year 2000 issues.  A brochure has also been distributed to customers by mail and
in person.  Because the Bank's loan portfolio is highly  diversified with regard
to individual  borrowers and types of businesses  and the Bank's  primary market
area is not significantly dependent upon one employer or industry, the Bank does
not  expect any  significant  or  prolonged  difficulties  that will  affect net
earnings or cash flow.































                                       14


<PAGE>


                              River Valley Bancorp

                                     PART II

ITEM 1.  Legal Proceedings

         Not applicable

ITEM 2.  Changes in Securities and Use of Proceeds

         None

ITEM 3.  Defaults Upon Senior Securities

         Not applicable

ITEM 4.  Submission of Matters to a Vote of Security Holders

         None.

ITEM 5.  Other Information

         None.

ITEM 6.  Exhibits and Reports on Form 8-K

         Reports on Form 8-K:              None.

         Exhibit 27:                       Financial Data Schedule for the three
                                           month period ended March 31, 1999























                                       15



<PAGE>


                                   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.





Date:        May 14, 1999                         By: /s/James E. Fritz
       ----------------------------                   ------------------------
                                                      James E. Fritz
                                                      CEO/President



Date:        May 14, 1999                         By: /s/Larry C. Fouse
       ----------------------------                   ------------------------
                                                      Larry C. Fouse
                                                      Chief Financial Officer





































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