SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2004

[ ]  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: 0-21765


                              RIVER VALLEY BANCORP
        (Exact name of small business issuer as specified in its charter)


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


                                430 Clifty Drive
                             Madison, Indiana 47250
                    (Address of principal executive offices)


                                 (812) 273-4949
                           (Issuer's telephone number)


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
under a plan confirmed by a court.

Yes [ ]     No [ ]


                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest  practicable  date: August 11, 2004 - 1,592,549 common
shares

Transitional Small Business Disclosure Format (Check one): Yes [ ]   No [X]



<PAGE>



                              RIVER VALLEY BANCORP
                                   FORM 10-QSB

                                      INDEX

                                                                        Page No.

PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements

            Consolidated Condensed Balance Sheets                           3

            Consolidated Condensed Statements of Income                     4

            Consolidated Condensed Statements of Comprehensive Income       5

            Consolidated Condensed Statements of Cash Flows                 6

            Notes to Unaudited Consolidated Condensed Financial Statements  7

Item 2.   Management's Discussion and Analysis or Plan of Operation        10

Item 3.   Controls and Procedures                                          14

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                                15
Item 2.   Changes in Securities                                            15
Item 3.   Defaults Upon Senior Securities                                  15
Item 4.   Submission of Matters to a Vote of Security Holders              15
Item 5.   Other Information                                                15
Item 6.   Exhibits and Reports on Form 8-K                                 15

SIGNATURES                                                                 16

EXHIBITS




                                       2
<PAGE>
<TABLE>
<CAPTION>

PART I  FINANCIAL INFORMATION
Item 1.  Financial Statements

                              RIVER VALLEY BANCORP
                      Consolidated Condensed Balance Sheets

                                                                                      June 30,           December 31,
                                                                                        2004                 2003
                                                                                --------------------- --------------------
                                                                                    (In Thousands, Except Share Amounts)
                                                                                     (Unaudited)
<S>                                                                                     <C>                   <C>
Assets
       Cash and due from banks                                                          $ 3,438               $ 4,443
       Interest-bearing demand deposits                                                   3,706                 8,069
                                                                                --------------------- --------------------
           Cash and cash equivalents                                                      7,144                12,512
       Investment securities available for sale                                          25,103                34,557
       Loans held for sale                                                                  250                   100
       Loans                                                                            211,572               194,222
                  Allowance for loan losses                                               2,277                 2,056
                                                                                --------------------- --------------------
                         Net loans                                                      209,295               192,166
       Premises and equipment                                                             6,287                 5,980
       Federal Home Loan Bank stock                                                       2,800                 2,176
       Interest receivable                                                                1,424                 1,489
       Cash surrender value life insurance                                                5,201                 5,093
       Other assets                                                                         956                 1,003
                                                                                --------------------- --------------------
                   Total assets                                                        $258,460              $255,076
                                                                                ===================== ====================

  Liabilities
       Deposits
                                                                                      $  14,261              $ 11,828
  Non-interest-bearing
           Interest-bearing                                                             157,196               168,126
                                                                                --------------------- --------------------
                Total deposits                                                          171,457               179,954
       Borrowings                                                                        63,217                50,000
       Interest payable                                                                     241                   381
       Other liabilities                                                                  1,449                 1,886
                                                                                --------------------- --------------------
           Total liabilities                                                            236,364               232,221
                                                                                --------------------- --------------------

  Commitments and Contingencies


  Shareholders' Equity
       Preferred stock,  without par value
           Authorized and unissued - 2,000,000 shares
       Common stock, without par value
           Authorized - 5,000,000 shares
           Issued and outstanding - 1,599,049 and 1,646,680 shares
       Additional paid-in capital                                                         8,453                 8,705
       Retained earnings                                                                 13,800                14,088
       Shares acquired by stock benefit plans                                              (180)                (193)
       Accumulated other comprehensive income                                                23                   255
                                                                                --------------------- --------------------
           Total shareholders' equity                                                    22,096                22,855
                                                                                --------------------- --------------------

           Total liabilities and shareholders' equity                                 $ 258,460              $255,076
                                                                                ===================== ====================

  See notes to consolidated condensed financial statements.


                                       3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                              RIVER VALLEY BANCORP
                   Consolidated Condensed Statements of Income
                                   (Unaudited)




                                                                             Six Months Ended              Three Months Ended
                                                                                 June 30,                       June 30,
                                                                       -------------- -------------- ---------------- --------------
                                                                            2004           2003            2004            2003
                                                                       -------------- -------------- ---------------- --------------
Interest Income                                                                    (In Thousands, Except Share Amounts)
<S>                                                                        <C>             <C>           <C>             <C>
     Loans receivable                                                      $ 5,856         $ 5,515       2,945           2,740
     Investment securities                                                     470             509         214             271
     Interest-earning deposits and other                                        88             110          47              41
                                                                       -------------- --------------- --------------- --------------
         Total interest income                                               6,414           6,134       3,206           3,052
                                                                       -------------- --------------- --------------- --------------

Interest Expense
     Deposits                                                                1,365           1,719         666             834
     Borrowings                                                              1,234             954         651             518
                                                                       -------------- --------------- --------------- --------------
         Total interest expense                                              2,599           2,673       1,317           1,352
                                                                       -------------- --------------- --------------- --------------

Net Interest Income                                                          3,815           3,461       1,889           1,700
     Provision for loan losses                                                 194             180          92              90
                                                                       -------------- --------------- --------------- --------------
Net Interest Income After Provision for Loan Losses                          3,621           3,281       1,797           1,610
                                                                       -------------- --------------- --------------- --------------

Other Income
     Net realized gains (losses) on sales of available-for-sale
securities                                                                       9              (2)          3              (2)
     Service fees and charges                                                  862             684         442             344
     Net gains on loan sales                                                   262             979         156             487
     Other income                                                              185              72          97              35
                                                                       -------------- --------------- --------------- --------------
         Total other income                                                  1,318           1,733         698             864
                                                                       -------------- --------------- --------------- --------------

Other Expenses
     Salaries and employee benefits                                          1,557           1,333         799             676
     Net occupancy and equipment expenses                                      479             389         240             202
     Data processing fees                                                       73              58          33              38
     Advertising                                                               117             131          66              58
     Legal and professional fees                                               100             105          70              60
       Other Expenses                                                          778             905         428             362
                                                                       -------------- --------------- --------------- --------------
         Total other expenses                                                3,104           2,921       1,636           1,396
                                                                       -------------- --------------- --------------- --------------

Income Before Income Tax                                                     1,835           2,093         859           1,078
     Income tax expense                                                        681             817         314             398
                                                                       -------------- --------------- --------------- --------------

Net Income                                                                  $1,154          $1,276      $  545        $    680
                                                                       ============== =============== =============== ==============

Basic earnings per share                                                     $ .72           $ .81       $ .34           $ .43
Diluted earnings per share                                                     .69             .77         .33             .41
Dividends per share                                                            .35             .28         .18             .15



See notes to consolidated condensed financial statements.



                                       4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                              RIVER VALLEY BANCORP
            Consolidated Condensed Statements of Comprehensive Income
                                   (Unaudited)




                                                                                  Six Months Ended           Three Months Ended
                                                                                      June 30,                    June 30,
                                                                              ------------ ------------- ------------ -------------
                                                                                 2004          2003         2004          2003
                                                                              ------------ ------------- ------------ -------------
                                                                                                  (In Thousands)

<S>                                                                              <C>          <C>           <C>          <C>
  Net income                                                                     $1,154       $1,276        $545         $680
  Other comprehensive income (loss), net of tax
        Unrealized gains on securities available for sale
            Unrealized holding gains  arising during the period,
             net of tax expense (benefit) of $(149), $108, $(169) and $100         (277)         164        (277)         152
           Less: Reclassification adjustment for gains (losses)
                included in net income, net of tax expense (benefit)
                of $4, $(1), $1, and $(1)                                             5           (1)          2           (1)
                                                                              ------------ ----------- ------------ -------------
                                                                                   (232)         165        (279)         153
                                                                              ------------ ----------- ------------ -------------
   Comprehensive income                                                            $922       $1,441        $266         $833
                                                                              ============ =========== ============ =============




See notes to consolidated condensed financial statements.




                                       5
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                              RIVER VALLEY BANCORP
                 Consolidated Condensed Statements of Cash Flows
                                   (Unaudited)

                                                                                                      Six Months Ended
                                                                                                          June 30,
                                                                                              ------------------ -------------------
                                                                                                    2004               2003
                                                                                              ------------------ -------------------
  Operating Activities                                                                                   (In Thousands)
<S>                                                                                              <C>                <C>
       Net income                                                                                $    1,154         $   1,276
       Adjustments to reconcile net income to net cash provided by operating activities
         Provision for loan losses                                                                      194               180
         Depreciation and amortization                                                                  283               245
         Investment securities (gains) losses                                                            (9)                2
         Loans originated for sale in the secondary market                                          (12,596)          (44,760)
         Proceeds from sale of loans in the secondary market                                         12,571            43,724
         Gain on sale of loans                                                                         (262)             (979)
         Amortization of deferred loan origination cost                                                 151                94
         Amortization of expense related to stock benefit plans                                         210               200
         Net change in:
           Interest receivable                                                                           65               108
           Interest payable                                                                            (140)              (86)
         Other adjustments                                                                             (118)                2
                                                                                              ------------------ -------------------
                Net cash provided by operating activities                                             1,503                 6
                                                                                              ------------------ -------------------

  Investing Activities
       Purchases of securities available for sale                                                    (1,147)           (8,006)
       Proceeds from maturities of securities available for sale                                      6,016             1,183
       Proceeds from sale of securities available for sale                                            4,196             1,098
       Purchase of Federal Home Loan Bank stock                                                        (571)                -
       Net change in loans                                                                          (17,337)          (11,685)
       Premiums paid on life insurance                                                                    -            (3,639)
       Purchases of premises and equipment                                                             (590)             (403)
                                                                                              ------------------ -------------------
                Net cash used in investing activities                                                (9,433)          (21,452)
                                                                                              ------------------ -------------------

  Financing Activities
       Net change in
          Noninterest-bearing, interest-bearing demand and savings deposits                          (4,337)            9,356
         Certificates of deposit                                                                     (4,160)           (2,201)
       Proceeds from borrowings                                                                      23,000            11,000
       Repayment of borrowings                                                                      (10,000)           (4,000)
       Cash dividends                                                                                  (555)             (385)
       Purchase of stock                                                                             (1,455)             (205)
       Stock options exercised                                                                           78                69
       Acquisition of stock for stock benefit plans                                                     (34)                -
       Advances by borrowers for taxes and insurance                                                     25                (3)
                                                                                              ------------------ -------------------
                Net cash provided by financing activities                                             2,562            13,631
                                                                                              ------------------ -------------------

  Net Change in Cash and Cash Equivalents                                                            (5,368)           (7,815)

  Cash and Cash Equivalents, Beginning of Period                                                     12,512            18,610
                                                                                              ------------------ -------------------

  Cash and Cash Equivalents, End of Period                                                         $  7,144         $  10,795
                                                                                              ================== ===================

  Additional Cash Flows and Supplementary Information
       Interest paid                                                                             $    2,739        $    2,759
       Income tax paid                                                                                  499               624

  See notes to consolidated condensed financial statements.




                                       6
</TABLE>
<PAGE>

                              RIVER VALLEY BANCORP
         Notes to Unaudited Consolidated Condensed Financial Statements


River Valley Bancorp (the  "Corporation")  is a unitary savings and loan 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'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.


Note 1: Basis of Presentation

The accompanying  unaudited  consolidated  condensed  financial  statements were
prepared in accordance with instructions for Form 10-QSB and, therefore,  do not
included  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, 2003.  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 six and three month periods ended
June 30,  2004,  are not  necessarily  indicative  of the  results  which may be
expected for the entire year. The  consolidated  condensed  balance sheet of the
Corporation  as  of  December  31,  2003  has  been  derived  from  the  audited
consolidated balance sheet of the Corporation as of that date.


Note 2: Principles of Consolidation

The  consolidated  condensed  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.


Note 3: Earnings Per Share

Earnings per share have been  computed  based upon the weighted  average  common
shares  outstanding.  Unearned  Employee  Stock  Ownership Plan shares have been
excluded from the computation of average common shares outstanding.





                                       7
<PAGE>
<TABLE>
<CAPTION>

                                                     Six Months Ended                                 Six Months Ended
                                                       June 30, 2004                                   June 30, 2003
                                                       -------------                                   -------------
                                                         Weighted           Per                           Weighted        Per
                                                         Average           Share                           Average       Share
                                              Income       Shares          Amount           Income         Shares        Amount
                                              ------       ------          ------           ------         ------        ------
                                                               (Dollar Amounts In Thousands, Except Share Amounts)

<S>                                            <C>        <C>                 <C>           <C>         <C>                  <C>
     Basic earnings per share
       Income available to common
       shareholders                            $1,154     1,606,296           $.72          $1,276      1,575,309            $.81
                                                                        ===========                                     ==========

     Effect of dilutive RRP awards
       and stock options                                     73,618                                        81,834
                                           ------------- --------------                -------------- ---------------

     Diluted earnings per share
       Income available to common
         shareholders and assumed
         conversions                          $ 1,154     1,679,914           $.69         $ 1,276      1,657,143          $.77
                                           ============= ============== ===========    ============== =============== ==========




                                                    Three Months Ended                            Three Months Ended
                                                       June 30, 2004                                June 30, 2003
                                                       -------------                                -------------
                                                         Weighted              Per                      Weighted        Per
                                                         Average              Share                     Average        Share
                                              Income      Shares             Amount       Income         Shares        Amount
                                              ------      ------             ------       ------         ------        ------
                                                           (Dollar Amounts In Thousands, Except Share Amounts)
     Basic earnings per share

       Income available to common
       shareholders                             $ 545     1,599,284          $ .34          $680        1,582,718         $ .43
                                                                        ===========                                   ==========

     Effect of dilutive RRP awards
       and stock options                                     70,747                                        80,540
                                           ------------- --------------                -------------- ---------------

     Diluted earnings per share
       Income available to common
         shareholders and assumed
         conversions                             $545     1,670,031          $ .33          $680        1,663,258         $ .41
                                           ============= ============== ===========    ============== =============== ==========
</TABLE>


Note 4:  Stock Options

The Corporation has a stock-based employee compensation plan, which is described
more fully in Notes to  Financial  Statements  included in the December 31, 2003
Annual Report to shareholders.  The Corporation accounts for this plan under the
recognition  and  measurement  principles of APB Opinion No. 25,  Accounting for
Stock Issued to Employees, and related interpretations.  No stock-based employee
compensation  cost is reflected in net income,  as all options granted under the
plan had an exercise  price equal to the market value of the  underlying  common
stock on the grant  date.  The  following  table  illustrates  the effect on net
income and  earnings  per share if the  Corporation  had  applied the fair value
provisions  of  Statement of Financial  Accounting  Standards  ("SFAS") No. 123,
Accounting for Stock-Based Compensation, to stock-based employee compensation.



                                       8
<PAGE>
<TABLE>
<CAPTION>


                                                                  Six Months      Six Months     Three Months    Three Months
                                                                     Ended          Ended            Ended          Ended
                                                                 June 30, 2004   June 30, 2003   June 30, 2004   June 30, 2003
                                                                ------------------------------------------------------------
<S>                                                                    <C>             <C>             <C>           <C>
           Net income, as reported                                     $1,154          $1,276          $ 545         $ 680
           Less:  Total stock-based employee compensation
              cost determined under the fair value based
              method, net of income taxes                                  13              13              7             6
                                                                ------------------------------------------------------------

           Pro forma net income                                        $1,141          $1,263          $ 538         $ 674
                                                                ============================================================

           Earnings per share:
               Basic - as reported                                      $ .72            $.81        $   .34        $  .43
               Basic - pro forma                                          .71             .80            .34           .43
               Diluted - as reported                                      .69             .77            .33           .41
               Diluted - pro forma                                        .68             .76            .32           .41

</TABLE>


Note 5:  Accounting Changes

In previous financial  statements and reports,  the Corporation had consolidated
RIVR  Statutory  Trust I ("Trust")  through which it has issued trust  preferred
securities  ("TPS") and reported  the TPS as  "guaranteed  preferred  beneficial
interests in the Company's subordinated  debentures" in the consolidated balance
sheets. The Financial  Accounting Standards Board ("FASB") had previously issued
FASB  Interpretation  No. 46 ("FIN 46") and, in December 2003, issued a revision
to FIN 46 to clarify certain  provisions  which affected the accounting for TPS.
As a result of the  provisions  in FIN 46, the Trust  should be  deconsolidated,
with the Corporation  accounting for its investment in the Trust as assets,  its
subordinated  debentures  as debt,  and the  interest  paid  thereon as interest
expense.  During  2003,  the  Corporation  classified  the TPS as  debt  and the
dividends as interest but eliminated  its common stock  investment and dividends
received  from the Trust.  FIN 46 permits and  encourages  restatement  of prior
period results. The prior period financial  information has not been adjusted to
give effect to the revised  provisions of FIN 46 as the changes are not material
to the financial  statements and would have had no effect on previously reported
net interest margin, net income or earnings per share.


Note 6: Reclassifications

Certain  reclassifications  have  been made to the 2003  consolidated  condensed
financial statements to conform to the June 30, 2004 presentation.





                                       9
<PAGE>

Item 2: Management's  Discussion and Analysis

Forward Looking Statement

This Quarterly Report on Form 10-QSB ("Form 10-QSB")  contains  statements which
constitute  forward  looking  statements  within  the  meaning  of  the  Private
Securities Litigation Reform Act of 1995. These statements appear in a number of
places in this Form 10-QSB and include statements regarding the intent,  belief,
outlook, estimate or expectations of the Corporation (as defined in the notes to
the consolidated condensed financial statements),  its directors or its officers
primarily with respect to future events and the future financial  performance of
the Corporation. Readers of this Form 10-QSB are cautioned that any such forward
looking  statements  are not  guarantees  of future  events or  performance  and
involve risks and  uncertainties,  and that actual results may differ materially
from those in the forward looking statements as a result of various factors. The
accompanying  information  contained  in this Form 10-QSB  identifies  important
factors that could cause such  differences.  These  factors  include  changes in
interest   rates;   loss  of  deposits  and  loan  demand  to  other   financial
institutions;  substantial changes in financial markets;  changes in real estate
values and the real estate market; or regulatory changes.


Critical Accounting Policies

The notes to the  consolidated  financial  statements  contain a summary  of the
Corporation's  significant  accounting policies presented on pages 31 through 33
of the Annual  Report to  Shareholders  for the year ended  December  31,  2003.
Certain of these  policies are important to the  portrayal of the  Corporation's
financial condition, since they require management to make difficult, complex or
subjective  judgments,  some of which may relate to matters that are  inherently
uncertain.  Management  believes that its critical  accounting  policies include
determining  the  allowance  for  loan  losses  and the  valuation  of  mortgage
servicing rights.


Allowance for loan losses

The allowance for loan losses is a significant estimate that can and does change
based on management's  assumptions about specific  borrowers and current general
economic and business  conditions,  among other factors.  Management reviews the
adequacy of the  allowance  for loan losses on at least a quarterly  basis.  The
evaluation by management includes consideration of past loss experience, changes
in the  composition of the loan portfolio,  the current  condition and amount of
loans  outstanding,  identified  problem loans and the probability of collecting
all amounts due.

The  allowance  for loan  losses  represents  management's  estimate of probable
losses  inherent  in the  Corporation's  loan  portfolios.  In  determining  the
appropriate  amount of the allowance for loan losses,  management makes numerous
assumptions, estimates and assessments.

The  Corporation's  strategy for credit risk management  includes  conservative,
centralized credit policies,  and uniform underwriting criteria for all loans as
well as an overall  credit  limit for each  customer  significantly  below legal
lending limits.  The strategy also emphasizes  diversification  on a geographic,
industry  and customer  level,  regular  credit  quality  reviews and  quarterly
management   reviews  of  large   credit   exposures   and  loans   experiencing
deterioration of credit quality.

The  Corporation's  allowance  consists  of three  components:  probable  losses
estimated from individual  reviews of specific loans,  probable losses estimated
from historical loss rates, and probable losses resulting from economic or other
deterioration  above and beyond what is reflected in the first two components of
the allowance.

Larger  commercial loans that exhibit probable or observed credit weaknesses are
subject to  individual  review.  Where  appropriate,  reserves are  allocated to
individual  loans based on  management's  estimate of the borrower's  ability to
repay the loan given the availability of collateral,  other sources of cash flow
and legal  options  available  to the  Corporation.  Included  in the  review of
individual  loans are those  that are  impaired  as  provided  in SFAS No.  114,
Accounting by Creditors for  Impairment of a Loan.  Any  allowances for impaired
loans are  measured  based on the present  value of  expected  future cash flows
discounted at the loan's effective interest rate or fair value of the underlying
collateral.  The Corporation  evaluates the collectibility of both principal and
interest when assessing the need for a loss accrual.  Historical  loss rates are
applied to other commercial loans not subject to specific reserve allocations.

Homogenous  loans, such as consumer  installment and residential  mortgage loans
are not individually  risk graded.  Rather,  standard credit scoring systems are
used to assess credit  risks.  Reserves are  established  for each pool of loans
based on the expected net  charge-offs for one year. Loss rates are based on the
average net charge-off history by loan category.



                                       10
<PAGE>

Historical  loss rates for  commercial  and  consumer  loans may be adjusted for
significant  factors that, in management's  judgment,  reflect the impact of any
current  conditions on loss recognition.  Factors which management  considers in
the analysis include the effects of the national and local economies,  trends in
the  nature  and  volume of loans  (delinquencies,  charge-offs  and  nonaccrual
loans),  changes in mix,  credit  score  migration  comparisons,  asset  quality
trends, risk management and loan administration, changes in the internal lending
policies and credit standards, collection practices and examination results from
bank regulatory agencies and the Corporation's internal loan review.

An unallocated  reserve is maintained to recognize the imprecision in estimating
and measuring loss when  evaluating  reserves for  individual  loans or pools of
loans.  Allowances on individual  loans and  historical  loss rates are reviewed
quarterly and adjusted as necessary based on changing borrower and/or collateral
conditions and actual collection and charge-off experience.

The Corporation's  primary market area for lending is southeastern Indiana. When
evaluating  the adequacy of allowance,  consideration  is given to this regional
geographic  concentration  and the closely  associated  effect changing economic
conditions have on the Corporation's customers.

The Corporation has not substantively changed any aspect to its overall approach
in the  determination  of the  allowance  for loan  losses.  There  have been no
material  changes in assumptions  or estimation  techniques as compared to prior
periods that impacted the determination of the current period allowance.


Valuation of Mortgage Servicing Rights

The  Corporation  recognizes  the right to service  mortgage  loans as  separate
assets in the  consolidated  balance sheet. The total cost of loans when sold is
allocated between loans and mortgage servicing rights based on the relative fair
values of each. Mortgage servicing rights are subsequently  carried at the lower
of the  initial  carrying  value,  adjusted  for  amortization,  or fair  value.
Mortgage  servicing  rights are evaluated for impairment based on the fair value
of those  rights.  Factors  included  in the  calculation  of fair  value of the
mortgage  servicing  rights include,  estimating the present value of future net
cash flows,  market loan  prepayment  speeds for similar loans,  discount rates,
servicing costs, and other economic factors. Servicing rights are amortized over
the estimated period of net servicing revenue.  It is likely that these economic
factors will change over the life of the mortgage servicing rights, resulting in
different  valuations of the mortgage servicing rights. The differing valuations
will  affect  the  carrying  value  of  the  mortgage  servicing  rights  on the
consolidated balance sheet as well as the income recorded from loan servicing in
the income  statement.  As of June 30,  2004 and  December  31,  2003,  mortgage
servicing rights had carrying values of $852,000 and $854,000, respectively.



                                       11
<PAGE>

Financial Condition

At June 30, 2004, the Corporation's  consolidated assets totaled $258.5 million,
an increase of $3.4 million,  or 1.3%,  from December 31, 2003.  The increase in
assets resulted from an increase in net loans  receivable.  Liquid assets (i.e.,
cash and interest earning deposits)  decreased by $5.4 million from December 31,
2003 levels, to a total of $7.1 million at June 30, 2004.  Investment securities
decreased by $9.5  million,  or 27.5%,  to a total of $25.1  million at June 30,
2004. Net loans  receivable were $209.3 million at June 30, 2004, an increase of
$17.1 million,  or 8.9%, from $192.2 million at December 31, 2003. The increases
were funded  mostly by decreases in  investments  and cash and interest  earning
deposits of $14.9 million.

The Corporation's allowance for loan losses totaled $2.1 million at December 31,
2003 and $2.3 million at June 30, 2004, which represented  approximately 1.1% of
total loans.  Non-performing  loans (defined as loans delinquent greater than 90
days and loans on  non-accrual  status)  totaled $.5 million and $1.1 million at
December 31, 2003 and June 30, 2004, respectively.  Although management believes
that its allowance for loan losses at June 30, 2004, 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.

Deposits totaled $171.5 million at June 30, 2004, a decrease of $8.5 million, or
4.7%,  compared to total  deposits at December  31,  2003.  The decrease for the
six-month  period resulted from  disbursement  of local tax funds.  River Valley
collects local property taxes as a service, which is then disbursed as needed by
county authorities.

Advances  from the Federal Home Loan Bank totaled  $50.0 million at December 31,
2003 and $56.0 million at June 30, 2004. These advances had a positive effect on
the bottom line during the first and second  quarters  due to a decline in their
interest rates.  The average cost of Federal Home Loan Bank advances at June 30,
2004 was 3.99%.

Stockholders'  equity totaled $22.1 at June 30, 2004, a decrease of $.8 million,
or 3.5%,  from  $22.9  million at  December  31,  2003.  The  decrease  resulted
primarily  from the  Corporation's  dividends  paid and  stock  repurchases.  We
increased our dividend by 5.9 % from  December 31, 2003,  paying $0.18 per share
to the holders of record on June 25,  2004,  payable on July 9, 2004.  This,  in
addition  to  the 2 for 1  stock  split  this  past  January,  demonstrates  our
conviction  that River Valley  Financial Bank will sustain its growth and strong
performance.

The Bank is required to maintain minimum  regulatory capital pursuant to federal
regulations.  At June 30,  2004,  the Bank's  regulatory  capital  exceeded  all
applicable regulatory capital requirements.


Comparison of Operating Results for the Six Months Ended June 30, 2004 and 2003

General

The  Corporation's  net income for the six months ended June 30,  2004,  totaled
$1,154,000,  a decrease of $122,000 or 9.6% from the $1,276,000 reported for the
period ended June 30, 2003. The decrease in income was not totally unexpected by
management.  The historical  lows in mortgage  interest  rates  contributed to a
significant  volume of mortgage  originations  and sales in 2003. The fee income
associated  with the  refinance  boom in 2003  made it  difficult  to  realize a
comparable  income  in the  same  period  of 2004.  The  reality  of 2004,  with
depressed  margins,  marginally  higher operating  expenses,  and lower mortgage
origination  fees  explains  the  variance.  Going  forward,  River  Valley  has
positioned itself to take advantage of the coming economic forecast.


Net Interest Income

Total  interest  income for the six months ended June 30, 2004  amounted to $6.4
million,  an increase of $.3 million,  or 4.9%,  above the comparable  period in
2003,  reflecting the effects of a $17.4 million increase in our loan portfolio.
The loan yield went from 6.4% for the 2003 period to 5.9% for the 2004 period to
offset part of the $17.4 million portfolio growth income.

Interest expense on deposits decreased by $354,000, or 20.6%, to a total of $1.4
million for the six months ended June 30, 2004,  due  primarily to a decrease in
the average cost of deposits.  There was also a decrease in the average  balance
of deposits  outstanding  year-to-year.  Interest expense on borrowings  totaled
$1,234,000  for the six months ended June 30, 2004, an increase of $280,000 from
the comparable period in 2003. The increase resulted  primarily from an increase
in average borrowings year-to-year.



                                       12
<PAGE>


As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  increased  by $354,000 or 10.2%,  for the six months ended
June 30, 2004, as compared to the comparable period in 2003.


Provision for Losses on Loans

A  provision  for  losses  on loans is  charged  to  income  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 $194,000 provision for losses
on loans for the six months ended June 30, 2004, compared to the $180,000 amount
recorded in the 2003 period.  The 2004  provision  amount was  predicated on the
increase in the balance of the loan portfolio,  coupled with the decrease in the
level of  delinquent  loans  year-to-year.  While  management  believes that the
allowance  for  losses on loans is  adequate  at June 30,  2004,  based upon the
available facts and circumstances,  there can be no assurance that the loan loss
allowance  will be  adequate  to cover  losses on  non-performing  assets in the
future.


Other Income

Other income decreased by $415,000,  or 24.0%, for the six months ended June 30,
2004,  as compared to the same period in 2003,  due  primarily  to the  $717,000
decrease in gain on sale of loans.  This decrease was partially offset by a gain
in service  fees and  charges  of  $178,000  due to new  programs  and  services
introduced in late 2003.


Other Expense

Other expense  increased by $183,000,  or 6.3%, during the six months ended June
30, 2004, as compared to the same period in 2003. The increase was due primarily
to the increase in salary/benefit  expense.  This increase was the result of the
increase in  employees to service an  increased  asset base and expanded  branch
network.


Income Taxes

The provision  for income taxes  totaled  $681,000 for the six months ended June
30, 2004, an decrease of $136,000,  or 16.6%,  as compared to the same period in
2003. The effective tax rates were 37.1% and 39.0% for the six months ended June
30, 2004 and 2003, respectively.


Comparison  of  Operating  Results for the Three  Months Ended June 30, 2004 and
2003

General

The Corporation's  net income for the three months ended June 30, 2004,  totaled
$545,000,  a decrease of  $135,000,  or 19.9%,  from the  $680,000 of net income
reported in the  comparable  2003  period.  The decrease in earnings in the 2004
period was  primarily  attributable  to a decrease in net gains on loan sales of
$331,000,  and is offset in part by an increase  in service  fees and charges of
$98,000.


Net Interest Income

Total interest  income for the three months ended June 30, 2004 amounted to $3.2
million, an increase of $154,000,  or 5.1%, from the comparable quarter in 2003,
reflecting the effects of an increase in average  balance of loans year to year.
Interest  income on loans  totaled  $2.9 million for the three months ended June
30, 2004, an increase of  approximately  $205,000,  or 7.5%, from the comparable
2003 quarter.

Interest expense on deposits decreased by $168,000,  or 20.1%, to a total of $.7
million for the quarter ended June 30, 2004,  due primarily to a decrease in the
average cost of deposits.  Interest  expense on borrowings  totaled $651,000 for
the  three  months  ended  June 30,  2004,  an  increase  of  $133,000  over the
comparable  quarter in 2003. The increase resulted primarily from an increase in
average borrowings outstanding from year-to-year.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income increased by $189,000,  or 11.1%, for the three months ended
June 30, 2004, as compared to the same quarter in 2003.




                                       13
<PAGE>

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 $92,000 provision for losses on
loans for the three months ended June 30, 2004, compared to the $90,000 recorded
in the 2003 period.  While management  believes that the allowance for losses on
loans  is  adequate  at June  30,  2004,  based  upon the  available  facts  and
circumstances,  there can be no assurance  that the loan loss  allowance will be
adequate to cover losses on non-performing assets in the future.


Other Income

Other income  decreased by $166,000 for the three months ended June 30, 2004, as
compared to the same period in 2003,  due  primarily  to a $331,000  decrease in
gain on loan sales,  offset to some  extent by an  increase in service  fees and
charges of $98,000 for the three months ended June 30, 2004,  as compared to the
same period in 2003.


Other Expense

Other  expense  increased by $240,000,  or 17.2%,  during the three months ended
June 30,  2004,  compared to the same  period in 2003.  This  increase  resulted
primarily from the increase in loan volume/administrative  expense, both balance
sheet and off-balance sheet volume, and general expense increases due to growth.


Income Taxes

The provision for income taxes totaled  $314,000 for the three months ended June
30,  2004,  a decrease of $84,000,  or 21.1%,  as compared to the same period in
2003.  This  decrease  resulted  primarily  from a decrease in net income before
income taxes of $219,000, or 20.3%. The effective tax rates were 36.6% and 36.9%
for the three months ended June 30, 2004 and 2003, respectively.


Other

The  Securities  and  Exchange  Commission  maintains  a Web site that  contains
reports,   proxy  information   statements,   and  other  information  regarding
registrants  that  file  electronically  with  the  Commission,   including  the
Corporation. The address is http://www.sec.gov.


Item 3.  Controls and Procedures

A. Evaluation of disclosure  controls and procedures.  The  Corporation's  chief
executive   officer  and  chief   financial   officer,   after   evaluating  the
effectiveness  of the  Corporation's  disclosure  controls  and  procedures  (as
defined in Sections 13a-15(e) and 15d-15(e) of regulations promulgated under the
Securities  Exchange Act of 1934, as amended),  as of the end of the most recent
fiscal quarter covered by this quarterly  report (the "Evaluation  Date"),  have
concluded that as of the Evaluation Date, the Corporation's  disclosure controls
and  procedures   were  adequate  and  are  designed  to  ensure  that  material
information  relating to the Corporation would be made known to such officers by
others within the Corporation on a timely basis.

B.  Changes  in  internal  controls.  There were no  significant  changes in the
Corporation's internal control over financial reporting identified in connection
with  the  Corporation's   evaluation  of  controls  that  occurred  during  the
Corporation's last fiscal quarter that has materially affected, or is reasonably
likely to materially affect,  the Corporation's  internal control over financial
reporting.




                                       14
<PAGE>

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings

          None.

Item 2.   Changes in Securities  and Use of Proceeds  and Issuers  Purchases  of
          Equity Securities.

          Purchases  of common  stock  made by or on be half of the  Corporation
          during the three months ended June 30, 2004, are set forth below:

<TABLE>
<CAPTION>


                                                                   Total Number of      Maximum Number of
                                                                 Shares Purchased as     Shares That May
                                 Total Number of     Average      Part of Publicly      Yet be Purchased
          Period                 Shares Purchased     Price         announce Plan         Under the Plan
          -----------------------------------------------------------------------------------------------------------
<S>             <C>                    <C>           <C>               <C>
          April 2004                   14,500        $22.38            14,500                    *
          May 2004                       ----            --               ---                    *
          June 2004                     8,800        $21.18             8,800                    *

          *    Up to 10 % of total shares  outstanding  may be  repurchased at a
               given time by the Corporation.

</TABLE>


Item 3.   Defaults Upon Senior Securities.

          None.


Item 4.   Submission of Matters to Vote of Security Holders.

          On  April  21,  2004,   the  Annual   Meeting  of  the   Corporation's
          shareholders  was held.  Two  directors  were elected to the following
          terms and by the following votes:

                                                   For        Votes Withheld
                                                   ---        --------------
          Jonnie L. Davis (three-year term)     1,434,059         6,247
          Charles J. McKay (three-year term)    1,432,962         7,344

          Directors  continuing  in office  are  Robert  W.  Anger,  Matthew  P.
          Forrester, Michael J. Hensley, Fred W. Koehler, and L. Sue Livers.


Item 5.   Other Information.

          None.


Item 6.   Exhibits and Reports on Form 8-K.

          (a)  Exhibits

               31(1) CEO Certification required by 17 C.F.R. Section
                     240.13a-14(a)

               31(2) CFO Certification required by 17 C.F.R. Section
                     240.13a-14(a)

               32    Certification pursuant to 18 U.S.C. Section 1350, as
                     adopted pursuant to Section 906 of the Sarbanes-Oxley
                     Act of 2002.

          (b)  Reports on Form 8-K

               i)   On  April  22,  2004,   a  press   release   regarding   the
                    Corporation's  results of  operations  for the period  ended
                    March 31, 2004 was filed under Items 7 and 12 on Form 8-K.




                                       15
<PAGE>



                                   Signatures

          Pursuant to the  requirements of the Securities  Exchange Act of 1934,
          as amended, the Issuer has duly caused this report to be signed on its
          behalf by the undersigned thereunto duly authorized.

                                           RIVER VALLEY BANCORP


Date:         August 16, 2004              By: /s/ Matthew P. Forrester
              ---------------              -------------------------------------
                                           Matthew P. Forrester
                                           President and Chief Executive Officer



Date:         August 16, 2004              By: /s/ Larry C. Fouse
              ---------------              -------------------------------------
                                           Larry C. Fouse
                                           Vice President of Finance









                                       16