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              June 30, 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 August 12,  1999,  the latest  practicable  date  1,026,343  shares of the
registrant's common stock, without par value, were issued and outstanding.









                               Page 1 of 17 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                                              16

SIGNATURES                                                                17





























                                        2



<PAGE>

<TABLE>

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

                                                                                           June 30,        December 31,
         ASSETS                                                                                1999                1998
<S>                                                                                            <C>                  <C>
Cash and due from banks                                                                    $  3,172            $  4,014
Federal funds sold                                                                            1,050                 825
Interest-earning deposits in other financial institutions                                     4,746               7,468
                                                                                            -------             -------
         Cash and cash equivalents                                                            8,968              12,307

Investment securities designated as available for sale - at market                            7,609                 283
Investment securities held to maturity - at amortized cost, approximate market
  value of $987 and $980 as of June 30, 1999 and December 31, 1998                            1,000               1,000
Mortgage-backed securities designated as available for sale - at market                       2,333               2,796
Mortgage-backed and related securities held to maturity - at cost, approximate
  market value of $2,588 and $3,220 as of June 30, 1999 and December 31, 1998                 2,579               3,190
Loans receivable - net                                                                      107,322             108,684
Loans held for sale - at lower of cost or market                                                300               3,701
Real estate acquired through foreclosure                                                         -                   82
Property acquired in settlement of loans                                                         12                  -
Office premises and equipment - at depreciated cost                                           2,061               2,023
Federal Home Loan Bank stock - at cost                                                          943                 943
Accrued interest receivable on loans                                                          1,034                 987
Accrued interest receivable on mortgage-backed and related securities                            31                  40
Accrued interest receivable on investments and interest-earning deposits                         28                  29
Goodwill, net of accumulated amortization                                                        47                  50
Cash surrender value of life insurance                                                          836                 818
Prepaid expenses and other assets                                                               316                 373
Prepaid federal income taxes                                                                    296                 405
Deferred tax asset                                                                              731                 658
                                                                                            -------             -------

         Total assets                                                                      $136,446            $138,369
                                                                                            =======             =======

         LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                                                   $115,607            $118,151
Other borrowed money                                                                          1,896                 270
Advances by borrowers for taxes and insurance                                                    38                  34
Accrued interest payable                                                                        359                 468
Other liabilities                                                                               736                 763
Dividends payable                                                                                70                  70
                                                                                            -------             -------
         Total liabilities                                                                  118,706             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;
    1,075,343 and 1,173,440 shares issued and outstanding at
    June 30, 1999 and December 31, 1998                                                          -                   -
  Additional paid in capital                                                                  9,666              11,036
  Retained earnings - substantially restricted                                                9,192               8,789
  Shares acquired by stock benefit plans                                                     (1,079)             (1,199)
  Unrealized losses on securities designated as available for sale,
    net of related tax effects                                                                  (39)                (13)
                                                                                            -------             -------
         Total stockholders' equity                                                          17,740              18,613
                                                                                            -------             -------

         Total liabilities and stockholders' equity                                        $136,446            $138,369
                                                                                            =======             =======


</TABLE>

                                        3


<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                       CONSOLIDATED STATEMENTS OF EARNINGS

                        (In thousands, except share data)

                                                                          Six months ended           Three months ended
                                                                              June 30,                     June 30,
                                                                         1999         1998            1999         1998
<S>                                                                       <C>         <C>             <C>          <C>
Interest income
  Loans                                                                $4,439       $4,557          $2,233       $2,310
  Mortgage-backed and related securities                                  161          231              78          112
  Investment securities                                                   127          104              88           48
  Interest-earning deposits and other                                     232          128             115           62
                                                                        -----        -----           -----        -----
         Total interest income                                          4,959        5,020           2,514        2,532

Interest expense
  Deposits                                                              2,310        2,346           1,126        1,152
  Borrowings                                                               30           56              26           22
                                                                        -----        -----           -----        -----
         Total interest expense                                         2,340        2,402           1,152        1,174
                                                                        -----        -----           -----        -----

         Net interest income                                            2,619        2,618           1,362        1,358

Provision for losses on loans                                             100          150              40           75
                                                                        -----        -----           -----        -----

         Net interest income after provision for losses on loans        2,519        2,468           1,322        1,283

Other income
  Gain on sale of loans                                                    39          127              23           31
  Service fees, charges and other operating                               372          411             183          203
                                                                        -----        -----           -----        -----
         Total other income                                               411          538             206          234

General, administrative and other expense
  Employee compensation and benefits                                    1,117        1,071             584          559
  Occupancy and equipment                                                 266          223             134          123
  Amortization of goodwill                                                  3           13               1            6
  Data processing                                                          54           56              29           24
  Other operating                                                         608          597             306          274
                                                                        -----        -----           -----        -----
         Total general, administrative and other expense                2,048        1,960           1,054          986
                                                                        -----        -----           -----        -----

         Earnings before income taxes                                     882        1,046             474          531

Income taxes
  Current                                                                 402          310             250          258
  Deferred                                                                (60)         102             (70)         (40)
                                                                        -----        -----           -----        -----
         Total income taxes                                               342          412             180          218
                                                                        -----        -----           -----        -----

         NET EARNINGS                                                  $  540       $  634          $  294       $  313
                                                                        =====        =====           =====        =====

         EARNINGS PER SHARE
           Basic                                                         $.51         $.57            $.29         $.28
                                                                          ===          ===             ===          ===

           Diluted                                                       $.51         $.56            $.29         $.28
                                                                          ===          ===             ===          ===


</TABLE>



                                        4


<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                 (In thousands)

                                                                      For the six months            For the three months
                                                                         ended June 30,                 ended June 30,
                                                                       1999         1998              1999         1998
<S>                                                                    <C>           <C>               <C>          <C>
Net earnings                                                           $540         $634              $294         $313

Unrealized holding gains (losses) during the period, net of tax         (26)          14               (19)           3
                                                                        ---          ---               ---          ---

Comprehensive income                                                   $514         $648              $275         $316
                                                                        ===          ===               ===          ===

Accumulated other comprehensive losses                                 $(39)        $(18)             $(39)        $(18)
                                                                        ===          ===               ===          ===
</TABLE>




































                                        5



<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                        For the six months ended June 30,
                                 (In thousands)

                                                                                                 1999              1998
<S>                                                                                              <C>              <C>
Cash flows from operating activities:
  Net earnings for the period                                                                 $   540           $   634
  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                                            (58)               24
    Loans originated for sale in the secondary market                                          (7,039)          (12,538)
    Proceeds from sale of loans in the secondary market                                        10,435             8,090
    (Gain) loss on sale of loans                                                                    5               (54)
    Amortization of deferred loan origination costs                                                66                52
    Provision for losses on loans                                                                 100               150
    Amortization expense of stock benefit plans                                                   120                -
    Depreciation and amortization                                                                 118               105
    Amortization of goodwill                                                                        3                13
    Proceeds from sale of office premises and equipment                                            76                -
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable on loans                                                        (47)              (42)
      Accrued interest receivable on mortgage-backed securities                                     9               (42)
      Accrued interest receivable on investments and interest-
        earning deposits                                                                            1               (16)
      Prepaid expenses and other assets                                                            57              (102)
      Accrued interest payable                                                                   (109)              (57)
      Other liabilities                                                                           (27)             (278)
      Income taxes
        Current                                                                                   109              (276)
        Deferred                                                                                  (60)              102
                                                                                               ------            ------
         Net cash provided by (used in) operating activities                                    4,299            (4,235)

Cash flows provided by (used in) investing activities:
  Proceeds from maturity of investment securities                                               8,300             1,000
  Purchase of investment securities designated as available for sale                          (15,569)               -
  Principal repayments on mortgage-backed and related securities                                1,036             1,281
  Loan principal repayments                                                                    18,313            19,906
  Loan disbursements                                                                          (17,117)          (17,811)
  Proceeds from sale of real estate acquired through foreclosure                                   82                -
  Acquisition of property in settlement of loans                                                  (12)               -
  Purchase of office equipment                                                                   (232)             (139)
  Decrease in certificates of deposit in other financial institutions - net                        -                697
  Increase in cash surrender value of life insurance                                              (18)              (24)
                                                                                               ------            ------
         Net cash provided by (used in) investing activities                                   (5,217)            4,910
                                                                                               ------            ------

         Net cash provided by (used in) operating and investing
           activities (subtotal carried forward)                                                 (918)              675
                                                                                               ------            ------

</TABLE>


                                        6


<PAGE>

<TABLE>

                              River Valley Bancorp
<CAPTION>

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                        For the six months ended June 30,
                                 (In thousands)

                                                                                                 1999              1998
<S>                                                                                              <C>               <C>
         Net cash provided by (used in) operating and investing
           activities (subtotal brought forward)                                              $  (918)           $  675

Cash flows provided by (used in) financing activities:
  Decrease in deposit accounts                                                                 (2,544)           (4,502)
  Proceeds from Federal Home Loan Bank advances                                                    -              6,000
  Repayment of Federal Home Loan Bank advances                                                     -             (3,000)
  Proceeds from other borrowings                                                                1,626                -
  Purchase of shares for stock benefit plan                                                        -                (21)
  Purchase of shares                                                                           (1,370)               -
  Dividends paid on common stock                                                                 (137)             (126)
  Advances by borrowers for taxes and insurance                                                     4               (25)
                                                                                               ------             -----
         Net cash used in financing activities                                                 (2,421)           (1,674)
                                                                                               ------             -----

Net decrease in cash and cash equivalents                                                      (3,339)             (999)

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

Cash and cash equivalents at end of period                                                    $ 8,968            $3,869
                                                                                               ======             =====


Supplemental  disclosure of cash flow  information:
  Cash paid during the period for:
    Federal income taxes                                                                      $   215            $  271
                                                                                               ======             =====

    Interest on deposits and borrowings                                                       $ 2,449            $2,459
                                                                                               ======             =====

Supplemental disclosure of noncash investing activities:
  Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects                                                      $   (26)           $   14
                                                                                               ======             =====

  Recognition of mortgage servicing rights in accordance with
    SFAS No. 125                                                                              $    44            $   73
                                                                                               ======             =====

</TABLE>










                                        7


<PAGE>


                              River Valley Bancorp

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

             For the six month periods ended June 30, 1999 and 1998


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.

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 six and three month  periods ended June 30, 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 six month periods ended June 30, 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,  as amended  by SFAS No.  137,  is  effective  for  fiscal  years
beginning  after June 15, 2000. 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  unallocated  ESOP  shares  at June 30,  1999,  totaled
1,063,641 and 1,029,445 for the six and three month periods ended June 30, 1999,
respectively.  Weighted-average common shares outstanding, which gives effect to
83,123  unallocated ESOP shares at June 30, 1998,  totaled 1,107,126 for each of
the six and three month periods ended June 30, 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
1,063,641 and 1,029,445 for the six and three month periods ended June 30, 1999,
respectively.  Weighted-average common shares deemed outstanding for purposes of
computing  diluted earnings per share totaled  1,131,729 for each of the six and
three month periods ended June 30, 1998, respectively.

There were 24,603  incremental  shares related to the assumed  exercise of stock
options  included  in the  computation  of  diluted  earnings  per share for the
periods ended June 30, 1998.  Options to purchase 103,959 shares of common stock
with a weighted  average price of $14.81 were  outstanding at June 30, 1999, but
were excluded from the  computation  of common share  equivalents  because their
exercise 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 June 30, 1999 presentation.



                                        9



<PAGE>


                              River Valley Bancorp

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

        For the six and three month periods ended June 30, 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 June 30,
1999

At June 30, 1999, the Corporation's  consolidated assets totaled $136.4 million,
a decrease of $1.9  million,  or 1.4%,  from the  December  31, 1998 total.  The
decrease  in assets  resulted  primarily  from a decrease  in  deposits  of $2.5
million and an $873,000 decrease in stockholders'  equity,  which were partially
offset by an increase in other borrowed money of $1.6 million.

Liquid assets (i.e.,  cash,  federal funds sold and  interest-earning  deposits)
decreased  by $3.3 million  from  December  31, 1998 levels,  to a total of $9.0
million at June 30, 1999. Mortgage-backed and investment securities increased by
$6.3  million,  or 86.0%,  to a total of $13.5  million  at June 30,  1999,  due
primarily to purchases of short-term  investments of $15.6  million,  which were
partially  offset  by  principal   repayments  on  mortgage-backed  and  related
securities totaling $1.0 million and maturities of investment securities of $8.3
million.

Loans receivable,  including loans held for sale, totaled $107.6 million at June
30, 1999, a decrease of $4.8 million,  or 4.2%, from the $112.4 million total at
December 31, 1998. The decrease resulted primarily from principal  repayments of
$18.3 million and sales of $10.4 million, which were offset by loan originations
during the period of $24.1 million.

The Corporation's consolidated allowance for loan losses totaled $1.5 million at
both June 30, 1999 and December 31, 1998, which  represented 1.4% of total loans
at each of those dates. Nonperforming loans (defined as loans delinquent greater
than 90 days and loans on  nonaccrual  status)  totaled  $2.0  million  and $1.9
million  at  June  30,  1999  and  December  31,  1998,  respectively.  Although
management  believes that its  allowance  for loan losses at June 30, 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 six and three month periods ended June 30, 1999 and 1998


Discussion  of Financial  Condition  Changes from  December 31, 1998 to June 30,
1999 (continued)

Deposits totaled of $115.6 million at June 30, 1999, a decrease of $2.5 million,
or 2.2%,  compared to the $118.2 million total at December 31, 1998.  During the
six month period  ended June 30, 1999,  as rising loan rates caused a decline in
loan demand,  the Bank elected not to match  higher  interest  rates on deposits
offered within its highly competitive market area.

Stockholders'  equity  totaled  $17.7  million at June 30,  1999,  a decrease of
$873,000,  or 4.7%,  from the $18.6  million  total at December  31,  1998.  The
decrease resulted  primarily from the Corporation's  repurchase of 98,097 shares
of its stock totaling $1.4 million,  a $26,000 increase in unrealized  losses on
securities  designated as available for sale,  and the  declaration of dividends
totaling  $137,000.  These  decreases  were  partially  offset by current period
earnings of $540,000.

The Bank is required to maintain minimum  regulatory capital pursuant to federal
regulations.  At June 30,  1999,  the Bank's  regulatory  capital  exceeded  all
applicable regulatory capital requirements.


Comparison of Results of  Operations  for the Six Months Ended June 30, 1999 and
1998

General

The Corporation's  net earnings for the six months ended June 30, 1999,  totaled
$540,000,  a decrease of $94,000,  or 14.8%,  from the  $634,000 of net earnings
reported in the  comparable  1998  period.  The decrease in earnings in the 1999
period was primarily  attributable to a decrease in other income of $127,000 and
an increase in general,  administrative and other expense of $88,000, which were
partially  offset by a $50,000 decrease in the provision for losses on loans and
a decrease in the provision for income taxes of $70,000.

Net Interest Income

Total  interest  income for the six months ended June 30, 1999  amounted to $5.0
million,  a decrease of $61,000,  or 1.2%,  from the comparable  period 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 $4.6 million for the six months
ended June 30, 1999, a decrease of $188,000,  or 3.9%,  from the comparable 1998
period. The decrease resulted primarily from a $3.7 million,  or 3.1%,  decrease
in the average balance outstanding year-to-year.  Interest income on investments
and  interest-earning  deposits  increased  by  $127,000,  or  54.7%,  due to an
increase in the average balance outstanding of $7.9 million.





                                       11


<PAGE>


                              River Valley Bancorp

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

        For the six and three month periods ended June 30, 1999 and 1998


Comparison of Results of  Operations  for the Six Months Ended June 30, 1999 and
1998 (continued)

Net Interest Income (continued)

Interest expense on deposits  decreased by $36,000,  or 1.5%, to a total of $2.3
million  for the six month  period  ended  June 30,  1999,  due  primarily  to a
decrease in the average cost of deposits, partially offset by an increase in the
average balance of deposits  outstanding of $5.0 million, or 4.4%, year to year.
Interest expense on borrowings totaled $30,000 for the six months ended June 30,
1999, a decrease of $26,000,  or 46.4%,  from the comparable period in 1998. The
decrease resulted  primarily from a decrease in average  borrowings  outstanding
year to year.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income  increased by $1,000 for the six months ended June 30, 1999,
as compared to the comparable  period in 1998. The interest rate spread amounted
to approximately 3.73% for the 1999 period, compared to 3.82% in 1998, while the
net interest margin totaled approximately 4.03% in the 1999 period,  compared to
4.16% 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 $100,000 provision for losses
on loans for the six months ended June 30, 1999, compared to the $150,000 amount
recorded in the 1998 period.  While  management  believes that the allowance for
losses on loans is adequate at June 30, 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 $127,000,  or 23.6%, for the six months ended June 30,
1999,  as compared to the same period in 1998,  due  primarily  to a decrease of
$88,000 in gain on sale of loans and a  $39,000,  or 9.5%,  decrease  in service
fees, charges and other operating income.

General, Administrative and Other Expense

General,  administrative and other expense increased by $88,000, or 4.5%, during
the six months  ended June 30, 1999,  compared to the same period in 1998.  This
increase  resulted  primarily  from a $46,000,  or 4.3%,  increase  in  employee
compensation  and  benefits,  due  primarily  to normal merit  increases,  and a
$43,000, or 19.3%,  increase in occupancy and equipment expense. The increase in
occupancy and equipment  expense was due primarily to increases in depreciation,
maintenance and repairs and property tax expense.


                                       12


<PAGE>


                              River Valley Bancorp

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

        For the six and three month periods ended June 30, 1999 and 1998


Comparison of Results of Operations for the Three Months Ended June 30, 1999 and
1998 (continued)

Income Taxes

The provision  for income taxes  totaled  $342,000 for the six months ended June
30,  1999,  a decrease of $70,000,  or 17.0%,  as compared to the same period in
1998.  This decrease  resulted  primarily from a decrease in net earnings before
taxes of $164,000, or 15.7%. The effective tax rates amounted to 38.8% and 39.4%
for the six months ended June 30, 1999 and 1998, respectively.


Comparison of Results of Operations for the Three Months Ended June 30, 1999 and
1998

General

The Corporation's net earnings for the three months ended June 30, 1999, totaled
$294,000,  a decrease of $19,000,  or 6.1%,  from the  $313,000 of net  earnings
reported in the  comparable  1998  period.  The decrease in earnings in the 1999
period was primarily  attributable  to a decrease in other income of $28,000 and
an increase in general,  administrative and other expense of $68,000, which were
partially  offset by a decrease in the  provision for losses on loans of $35,000
and a decrease in the provision for income taxes of $38,000.

Net Interest Income

Total interest  income for the three months ended June 30, 1999 amounted to $2.5
million,  a decrease of $18,000,  or .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 June 30, 1999, a decrease of $111,000, or 4.6%, from the comparable
1998 quarter.  The decrease  resulted  primarily  from a $2.7 million,  or 2.3%,
decrease in the average  balance  outstanding  year-to-year.  Interest income on
investments and interest-earning deposits increased by $93,000, or 84.5%, due to
a increase in the average balance outstanding of approximately $10.0 million.

Interest expense on deposits  decreased by $26,000,  or 2.3%, to a total of $1.1
million for the quarter ended June 30, 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 $26,000 for the
three  months  ended June 30, 1999,  an increase of $4,000,  or 18.2%,  over the
comparable  quarter in 1998. The increase resulted primarily from an increase in
average borrowings outstanding from year to year.




                                       13



<PAGE>


                              River Valley Bancorp

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

        For the six and three month periods ended June 30, 1999 and 1998

Comparison of Results of Operations for the Three Months Ended June 30, 1999 and
1998 (continued)

Net Interest Income (continued)

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income increased by $4,000, or .3%, for the three months ended June
30, 1999,  as compared to the  comparable  quarter in 1998.  The  interest  rate
spread amounted to approximately  3.79% for the 1999 quarter,  compared to 4.01%
in 1998, while the net interest margin totaled  approximately  4.12% in the 1999
quarter, compared to 4.36% 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 $40,000 provision for losses on
loans for the three months ended June 30, 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 June 30, 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 $28,000, or 12.0%, for the three months ended June 30,
1999,  as compared to the same period in 1998,  due  primarily to a $20,000,  or
9.9%, decrease in service fees, charges and other operating income, coupled with
a decrease of $8,000 in gain on sale of loans.

General, Administrative and Other Expense

General,  administrative and other expense increased by $68,000, or 6.9%, during
the three months ended June 30, 1999,  compared to the same period in 1998. This
increase  resulted  primarily  from a $25,000,  or 4.5%,  increase  in  employee
compensation and benefits, due primarily to normal merit increases,  an $11,000,
or 8.9%,  increase in occupancy and equipment  expense and a $32,000,  or 11.7%,
increase in other operating expense.

Income Taxes

The provision for income taxes totaled  $180,000 for the three months ended June
30,  1999,  a decrease of $38,000,  or 17.4%,  as compared to the same period in
1998.  This decrease  resulted  primarily from a decrease in net earnings before
taxes of $57,000,  or 10.7%. The effective tax rates amounted to 38.0% and 41.1%
for the three months ended June 30, 1999 and 1998, respectively.


                                       14


<PAGE>


                              River Valley Bancorp

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

        For the six and three month periods ended June 30, 1999 and 1998


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.

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.







                                       15



<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

          On April 21,1999, the Annual Meeting of the Corporation's Stockholders
          was held.  Two directors were elected to terms expiring in 2002 by the
          following votes:

               Michael J. Hensley       For:  790,716        Withheld:  123,371
               Fred W. Koehler          For:  790,686        Withheld:  123,401

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 six
                                            month period ended June 30, 1999.


















                                       16



<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:  August 13, 1999                          By: /s/Fred W. Koehler
                                                    Fred W. Koehler
                                                    Chairman of the Board



Date:  August 13, 1999                          By: /s/Larry C. Fouse
                                                    Larry C. Fouse
                                                    Chief Financial Officer





































                                       17