FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

(Mark One)

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

For the quarterly period ended         March 31, 1998
                               ---------------------------------

                                       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) 265-3421

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

Yes   X                                                 No

As of May  11,  1998,  the  latest  practicable  date  1,190,250  shares  of the
registrant's common stock, without par value, were issued and outstanding.









                               Page 1 of 16 pages

<PAGE>


                              River Valley Bancorp

                                      INDEX

                                                                        Page

PART I  - FINANCIAL INFORMATION

             Consolidated Statements of Financial Condition                3

             Consolidated Statements of Earnings                           4

             Consolidated Statements of Comprehensive Income               5

             Consolidated Statements of Cash Flows                         6

             Notes to Consolidated Financial Statements                    8

             Management's Discussion and Analysis of
             Financial Condition and Results of
             Operations                                                   11


PART II - OTHER INFORMATION                                               15

SIGNATURES                                                                16





























                                        2



<PAGE>


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

                                                                                          March 31,        December 31,
         ASSETS                                                                                1998                1997
<S>                                                                                            <C>                <C>
Cash and due from banks                                                                    $  2,967            $  3,542
Federal funds sold                                                                            1,100                 300
Interest earning deposits in other financial institutions                                     1,331               1,026
                                                                                            -------             -------
         Cash and cash equivalents                                                            5,398               4,868

Certificates of deposit in other financial institutions                                         598                 897
Investment securities designated as available for sale - at market                              775                 772
Investment securities - at amortized cost, approximate market value of
  $3,457 and $3,444 as of March 31, 1998 and December 31, 1997                                3,500               3,500
Mortgage-backed securities designated as available for sale - at market                       3,479               3,604
Mortgage-backed and related securities - at cost, approximate market
  value of $4,820 and $5,432 as of March 31, 1998 and December 31, 1997                       5,203               5,374
Loans receivable - net                                                                      107,827             111,319
Loans held for sale - at lower of cost or market                                                832                 684
Office premises and equipment - at depreciated cost                                           2,113               2,065
Real estate acquired through foreclosure                                                         82                  82
Federal Home Loan Bank stock - at cost                                                          943                 943
Accrued interest receivable on loans                                                            898                 916
Accrued interest receivable on mortgage-backed and related securities                           179                 117
Accrued interest receivable on investments and interest-earning deposits                         75                  65
Goodwill, net of accumulated amortization                                                       239                 245
Cash surrender value of life insurance                                                          791                 776
Prepaid expenses and other assets                                                               186                 141
Prepaid federal income taxes                                                                    197                  -
Deferred tax asset                                                                              533                 681
                                                                                            -------             -------

         Total assets                                                                      $133,848            $137,049
                                                                                            =======             =======

         LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                                                   $113,621            $114,955
Advances from the Federal Home Loan Bank                                                         -                2,000
Advances by borrowers for taxes and insurance                                                    64                  53
Accrued interest payable                                                                        402                 463
Other liabilities                                                                             1,440               1,524
Dividends payable                                                                                60                  60
Accrued federal income taxes                                                                     -                    5
                                                                                            -------            --------
         Total liabilities                                                                  115,587             119,060

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;
    1,190,250 shares issued and outstanding                                                      -                   -
  Additional paid in capital                                                                 11,229              11,229
  Retained earnings - substantially restricted                                                8,058               7,797
  Shares acquired by stock benefit plans                                                     (1,005)             (1,005)
  Unrealized losses on securities designated as available for sale,
    net of related tax effects                                                                  (21)                (32)
                                                                                            -------            -------
         Total stockholders' equity                                                          18,261              17,989
                                                                                            -------             -------

         Total liabilities and stockholders' equity                                        $133,848            $137,049
                                                                                            =======             =======

</TABLE>


                                        3


<PAGE>


                              River Valley Bancorp

<TABLE>
<CAPTION>
                       CONSOLIDATED STATEMENTS OF EARNINGS

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

                                                                              1998          1997
<S>                                                                          <C>            <C>
Interest income
  Loans                                                                     $2,280        $2,201
  Mortgage-backed and related securities                                       128           206
  Investment securities                                                         56            87
  Interest-earning deposits and other                                           66           117
                                                                             -----         -----
         Total interest income                                               2,530         2,611

Interest expense
  Deposits                                                                   1,194         1,250
  Borrowings                                                                    34             4
                                                                             -----         -----
         Total interest expense                                              1,228         1,254
                                                                             -----         -----

         Net interest income                                                 1,302         1,357

Provision for losses on loans                                                   75            96
                                                                             -----         -----

         Net interest income after provision for losses on loans             1,227         1,261

Other income
  Insurance commissions                                                         -             12
  Gain on sale of investment securities                                         -              2
  Gain (loss) on sale of loans                                                  96            (4)
  Gain on sale of office premises and equipment                                 -            203
  Service fees, charges and other operating                                    208           198
                                                                             -----         -----
         Total other income                                                    304           411

General, administrative and other expense
  Employee compensation and benefits                                           585           561
  Occupancy and equipment                                                       94           128
  Federal deposit insurance premiums                                            11            10
  Amortization of goodwill                                                       6             6
  Data processing                                                               32            70
  Other operating                                                              288           313
                                                                             -----         -----
         Total general, administrative and other expense                     1,016         1,088
                                                                             -----         -----

         Earnings before income taxes                                          515           584

Income taxes
  Current                                                                       52           250
  Deferred                                                                     142            (7)
                                                                             -----         -----
         Total income taxes                                                    194           243
                                                                             -----         -----

         NET EARNINGS                                                       $  321        $  341
                                                                             =====         =====

         EARNINGS PER SHARE
           Basic                                                              $.29          $.31
                                                                              ===           ===

           Diluted                                                            $.28          $.31
                                                                               ===           ===
</TABLE>



                                        4


<PAGE>


                              River Valley Bancorp

<TABLE>
<CAPTION>
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

                                                            1998           1997
<S>                                                          <C>            <C>
Net earnings                                                $321           $341

Unrealized gains (losses) during the period                   11            (47)
                                                            ----           ----

Comprehensive income                                        $332           $294
                                                             ===            ===

</TABLE>






































                                        5



<PAGE>


                              River Valley Bancorp

<TABLE>
<CAPTION>
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

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

                                                                                                 1998              1997
<S>                                                                                               <C>              <C>
Cash flows from operating activities:
  Net earnings for the period                                                                $    321           $   341
  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                                             23                 1
    Gain on sale of investment securities designated as available for sale                         -                 (2)
    Loans originated for sale in the secondary market                                          (5,676)             (944)
    Proceeds from sale of loans in the secondary market                                         5,562             1,072
    (Gain) loss on sale of loans                                                                  (34)                4
    Amortization of deferred loan origination costs                                                24                20
    Provision for losses on loans                                                                  75                96
    Depreciation and amortization                                                                  55                49
    Amortization of goodwill                                                                        6                 6
    Proceeds from sale of office premises and equipment                                            -                407
    Gain on sale of office premises and equipment                                                  -               (203)
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable on loans                                                         18                49
      Accrued interest receivable on mortgage-backed and related securities                       (62)               (8)
      Accrued interest receivable on investments and interest-
        earning deposits                                                                          (10)              113
      Prepaid expenses and other assets                                                           (45)              (26)
      Accrued interest payable                                                                    (61)              (39)
      Other liabilities                                                                           (84)               14
      Income taxes
        Current                                                                                  (202)               95
        Deferred                                                                                  142                (7)
                                                                                              -------             -----
         Net cash provided by operating activities                                                 52             1,038

Cash flows provided by (used in) investing activities:
  Proceeds from maturity of investment securities                                                  -              2,000
  Proceeds from sale of investment securities designated as available for sale                     -              2,002
  Purchase of mortgage-backed securities                                                           -                (67)
  Principal repayments on mortgage-backed securities                                              287               650
  Loan principal repayments                                                                    12,105             7,251
  Loan disbursements                                                                           (8,712)           (7,225)
  Purchase of office equipment                                                                   (103)               (9)
  (Increase) decrease in certificates of deposit in other financial institutions - net            299              (199)
  Increase in cash surrender value of life insurance                                              (15)              (11)
                                                                                              -------             -----
         Net cash provided by investing activities                                              3,861             4,392
                                                                                              -------             -----

         Net cash provided by operating and investing
           activities (subtotal carried forward)                                                3,913             5,430
                                                                                              -------             -----
</TABLE>


                                        6


<PAGE>


                              River Valley Bancorp

<TABLE>
<CAPTION>
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

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

                                                                                                 1998              1997
<S>                                                                                              <C>                <C>
         Net cash provided by operating and investing
           activities (subtotal brought forward)                                               $3,913            $5,430

Cash flows provided by (used in) financing activities:
  Decrease in deposit accounts                                                                 (1,334)           (6,995)
  Proceeds from Federal Home Loan Bank advances                                                 1,000                -
  Repayment of Federal Home Loan Bank advances                                                 (3,000)             (600)
  Dividends paid on common stock                                                                  (60)               -
  Advances by borrowers for taxes and insurance                                                    11                14
                                                                                                -----             -----
         Net cash used in financing activities                                                 (3,383)           (7,581)
                                                                                                -----             -----

Net increase (decrease) in cash and cash equivalents                                              530            (2,151)

Cash and cash equivalents at beginning of period                                                4,868             8,685
                                                                                                -----             -----

Cash and cash equivalents at end of period                                                     $5,398            $6,534
                                                                                                =====             =====


Supplemental  disclosure of cash flow  information:  
   Cash paid during the period for:
    Federal income taxes                                                                       $   -             $  108
                                                                                                =====             =====

    Interest on deposits and borrowings                                                        $1,289            $1,293
                                                                                                =====             =====

Supplemental disclosure of noncash investing activities:
  Transfers from loans to real estate acquired through foreclosure                             $   -             $   82
                                                                                                =====             =====

  Unrealized gains (losses) on securities designated as available
    for sale, net of related tax effects                                                       $   11            $  (47)
                                                                                                =====             ===== 

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

</TABLE>











                                        7



<PAGE>


                              River Valley Bancorp

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

            For the three month periods ended March 31, 1998 and 1997


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

1.  Basis of Presentation

The accompanying  unaudited  consolidated  financial statements were prepared in
accordance  with  instructions  for Form 10-QSB and,  therefore,  do not include
information  or footnotes  necessary  for a complete  presentation  of financial
position,  results of  operations  and cash flows in conformity  with  generally
accepted accounting principles.  Accordingly,  these financial statements should
be read in  conjunction  with the  consolidated  financial  statements and notes
thereto of the Corporation  included in the Annual Report on Form 10-KSB for the
year ended  December  31,  1997.  However,  in the  opinion of  management,  all
adjustments  (consisting of only normal recurring  accruals) which are necessary
for a fair  presentation  of the financial  statements  have been included.  The
results of  operations  for the three month  period ended March 31, 1998 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.












                                        8


<PAGE>


                              River Valley Bancorp

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

            For the three month periods ended March 31, 1998 and 1997


3.  Effect of Recent Accounting Pronouncements

In June 1996,  the  Financial  Accounting  Standards  Board (the "FASB")  issued
Statement of Financial  Accounting  Standards ("SFAS") No. 125,  "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities",
that provides accounting guidance on transfers of financial assets, servicing of
financial assets, and extinguishment of liabilities.  SFAS No. 125 introduces an
approach to accounting  for transfers of financial  assets that provides a means
of dealing with more complex transactions in which the seller disposes of only a
partial  interest in the assets,  retains  rights or  obligations,  makes use of
special  purpose  entities  in the  transaction,  or  otherwise  has  continuing
involvement with the transferred assets. The new accounting method,  referred to
as the financial components  approach,  provides that the carrying amount of the
financial assets transferred be allocated to components of the transaction based
on their relative fair values.  SFAS No. 125 provides  criteria for  determining
whether control of assets has been relinquished and whether a sale has occurred.
If the transfer  does not qualify as a sale,  it is  accounted  for as a secured
borrowing. Transactions subject to the provisions of SFAS No. 125 include, among
others, transfers involving repurchase agreements,  securitizations of financial
assets,  loan   participations,   factoring   arrangements,   and  transfers  of
receivables with recourse.

An entity that undertakes an obligation to service  financial assets  recognizes
either a servicing asset or liability for the servicing contract (unless related
to a securitization of assets,  and all the securitized  assets are retained and
classified  as  held-to-maturity).  A  servicing  asset  or  liability  that  is
purchased or assumed is initially recognized at its fair value. Servicing assets
and  liabilities are amortized in proportion to and over the period of estimated
net  servicing  income  or net  servicing  loss and are  subject  to  subsequent
assessments for impairment based on fair value.

SFAS No. 125 provides that a liability is removed from the balance sheet only if
the debtor  either pays the creditor and is relieved of its  obligation  for the
liability or is legally released from being the primary obligor.

SFAS No. 125 is effective for  transfers  and servicing of financial  assets and
extinguishment  of liabilities  occurring  after December 31, 1997, and is to be
applied  prospectively.  Earlier or  retroactive  application  is not permitted.
Management adopted SFAS No. 125 effective January 1, 1998, as required,  without
material effect on River Valley's consolidated  financial position or results of
operations.

In June 1997, the FASB issued SFAS No. 130,  "Reporting  Comprehensive  Income."
SFAS No. 130  establishes  standards for reporting and display of  comprehensive
income and its components (revenues,  expenses,  gains and losses) in a full set
of general-purpose  financial  statements.  SFAS No. 130 requires that all items
that are required to be recognized under  accounting  standards as components of
comprehensive income be reported in a financial statement that is displayed with
the same  prominence  as other  financial  statements.  It does  not  require  a
specific  format for that  financial  statement  but requires that an enterprise
display an amount representing total comprehensive income for the period in that
financial statement.


                                        9



<PAGE>


                              River Valley Bancorp

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


3.  Effect of Recent Accounting Pronouncements (continued)

SFAS  No.  130  requires  that  an  enterprise   (a)  classify  items  of  other
comprehensive  income by their nature in a financial  statement  and (b) display
the accumulated balance of other  comprehensive  income separately from retained
earnings and additional  paid-in capital in the equity section of a statement of
financial  position.  SFAS No. 130 is effective for fiscal years beginning after
December 15, 1997.  Reclassification of financial statements for earlier periods
provided for comparative  purposes is required.  Management adopted SFAS No. 130
effective  January 1, 1998, as required,  without material adverse effect on the
Corporation's financial statements.

In June 1997,  the FASB issued SFAS No. 131,  "Disclosures  about Segments of an
Enterprise and Related  Information." SFAS No. 131 significantly changes the way
that public business  enterprises report information about operating segments in
annual financial  statements and requires that those enterprises report selected
information  about reportable  segments in interim  financial  reports issued to
shareholders.  It also  establishes  standards  for  related  disclosures  about
products and services, geographic areas and major customers. SFAS No. 131 uses a
"management  approach" to disclose  financial and descriptive  information about
the way that management  organizes the segments within the enterprise for making
operating  decisions  and  assessing  performance.  For  many  enterprises,  the
management  approach  will likely  result in more segments  being  reported.  In
addition,  SFAS No. 131 requires  significantly more information to be disclosed
for each reportable segment than is presently being reported in annual financial
statements  and also requires that selected  information  be reported in interim
financial statements. SFAS No. 131 is effective for fiscal years beginning after
December 15, 1997. SFAS No. 131 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 83,124 and 95,220  unallocated ESOP shares at March 31, 1998 and
1997, respectively,  totaled 1,107,126 and 1,095,030 for the three month periods
ended March 31, 1998 and 1997, 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
1,131,340  and  1,095,030  for the three month  periods ended March 31, 1998 and
1997, respectively.

5.  Reclassifications

Certain  reclassifications  have  been made to the 1997  consolidated  financial
statements to conform to the March 31, 1998 presentation.



                                       10



<PAGE>


                              River Valley Bancorp

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

            For the three month periods ended March 31, 1998 and 1997


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, 1997 to March 31,
1998

At March 31, 1998, River Valley's  consolidated assets totaled $133.8 million, a
decrease of $3.2  million,  or 2.3%,  from the December 31, 1997 total of $137.0
million.  The  decrease  in assets  resulted  primarily  from a decrease  in the
deposit  portfolio of $1.3  million and a decrease in advances  from the Federal
Home Loan Bank of $2.0 million,  which were  partially  offset by an increase in
undistributed net earnings of $261,000.

Liquid assets (i.e.,  cash,  federal funds sold,  interest-earning  deposits and
certificates of deposit) increased by $231,000 from December 31, 1997 levels, to
a total of $6.0 million at March 31, 1998.  Mortgage-backed securities decreased
by $296,000,  or 3.3%,  to a total of $8.7 million at March 31, 1998,  primarily
due to principal repayments of $287,000.

Loans receivable, including loans held for sale, totaled $108.7 million at March
31, 1998, a decrease of $3.3 million,  or 3.0%, from the $112.0 million total at
December 31, 1997. The decrease resulted primarily from principal  repayments of
$11.9 million and sales of $5.5  million,  which were  partially  offset by loan
originations during the period of $14.4 million.  Loan origination volume during
the current quarter exceeded that of the 1997 quarter by $6.2 million, or 72.2%.

The  Corporation's  consolidated  allowance for loan losses totaled $1.1 million
and $1.2 million at March 31, 1998 and December  31, 1997,  respectively,  which
represented 1.0% of total loans at those dates.  Nonperforming loans (defined as
loans  delinquent  greater than 90 days and loans on nonaccrual  status) totaled
$745,000 and $718,000 at March 31, 1998 and December 31, 1997, respectively.

Although  management  believes  that its  allowance for loan losses at March 31,
1998, 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.


                                       11


<PAGE>


                              River Valley Bancorp

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

            For the three month periods ended March 31, 1998 and 1997


Discussion  of Financial  Condition  Changes from December 31, 1997 to March 31,
1998 (continued)

Deposits  decreased  by $1.3  million,  or 1.2%,  to a total of $113.6  million,
compared to the $115.0  million  total at December  31,  1997.  The  decrease is
primarily attributed to increased competition from other local institutions.

There were no advances from the Federal Home Loan Bank  outstanding at March 31,
1998, a decrease of $2.0 million,  or 100%,  from the December 31, 1997 balance.
The decrease was due to current  period  repayments of $3.0  million,  offset by
borrowings of $1.0  million.  Management  decided to utilize loan  repayments to
repay borrowings.

Stockholders'  equity  totaled  $18.3  million at March 31, 1998, an increase of
$272,000,  or 1.5%,  over the $18.0  million  total at December  31,  1997.  The
increase  resulted  primarily  from current  period  earnings of $321,000 and an
$11,000 decrease in the unrealized losses on securities  designated as available
for sale,  partially offset by the declaration and payment of dividends totaling
$60,000. The Bank is required to maintain minimum regulatory capital pursuant to
federal  regulations.  At March 31, 1998, the Bank's regulatory capital exceeded
all applicable regulatory capital requirements.


Comparison of Results of Operations for the Three Months Ended March 31, 1998
and 1997

General

River  Valley's net earnings for the three months ended March 31, 1998,  totaled
$321,000, a decrease of $20,000,  from the $341,000 net earnings reported in the
comparable 1997 period. The decrease in earnings in the 1998 period is primarily
attributable  to a decrease in the gain on sale of office premises and equipment
of $203,000,  which was partially  offset by an increase of $100,000 in the gain
on sale of loans,  a decrease  of $72,000 in general,  administrative  and other
expense,  a $49,000  decrease in the  provision  for federal  income taxes and a
$21,000 decrease in the provision for losses on loans.

Net Interest Income

Total  interest  income for the three months  ended March 31, 1998,  amounted to
$2.5 million,  a decrease of $81,000,  or 3.1%,  from the  comparable  period in
1997,  reflecting  the  effects of decline  in average  interest-earning  assets
outstanding,  partially  offset by an increase in yield  year-to-year.  Interest
income on loans and mortgage-backed  securities totaled $2.4 million for each of
the three months ended March 31, 1998 and 1997.  Interest  income on investments
and interest-earning  deposits decreased by $82,000, or 40.2%, due to a decrease
in the average  balance  outstanding of $4.4 million and an approximate 75 basis
point decrease in yield from the comparable 1997 period.




                                       12


<PAGE>


                              River Valley Bancorp

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

            For the three month periods ended March 31, 1998 and 1997


Comparison of Results of Operations for the Three Months Ended March 31, 1998
and 1997 (continued)

Net Interest Income (continued)

Interest expense on deposits  decreased by $56,000,  or 4.5%, to a total of $1.2
million for the three  months  ended March 31,  1998,  due  primarily  to a $8.8
million  decrease in the  average  balance of  deposits  outstanding,  which was
partially offset by an increase in the  weighted-average  cost of deposits of 11
basis points, to 4.15% in 1998.  Interest expense on borrowings  totaled $34,000
for the three  months  ended March 31,  1998,  an  increase of $30,000  over the
comparable period in 1997. The increase  resulted  primarily from an increase in
average borrowings outstanding year-to-year, coupled with an increase in average
cost.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  decreased by $55,000,  or 4.1%, for the three months ended
March 31, 1998,  compared to the  comparable  period in 1997.  The interest rate
spread  increased  by  approximately  17 basis points for the three months ended
March 31, 1998,  to 4.20% from 4.03% in the 1997 period,  while the net interest
margin remained virtually unchanged at 4.03%.

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 $75,000 provision for losses on
loans for the three months ended March 31, 1998. While management  believes that
the allowance for losses on loans is adequate at March 31, 1998,  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 $107,000,  or 26.0%, for the three months ended March
31, 1998,  as compared to the same period in 1997,  due  primarily to a $203,000
gain on sale of office  premises and equipment  recorded during the three months
ended March 31, 1997, coupled with a $12,000 decrease in insurance  commissions,
which were partially offset by a $100,000  increase on gain on sale of loans and
a $10,000 increase from service fees,  charges,  and other operating income. The
gain on sale of office  premises  resulted from River  Valley's sale of a branch
office facility,  located in Hanover, Indiana, which was consummated on February
28, 1997, as required in accordance with the terms of regulatory approval of the
acquisition  of Citizens.  The decline in insurance  commissions  resulted  from
River Valley's sale of its insurance agency subsidiary.



                                       13


<PAGE>


                              River Valley Bancorp

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

            For the three month periods ended March 31, 1998 and 1997


Comparison of Results of Operations for the Three Months Ended March 31, 1998
and 1997 (continued)

General, Administrative and Other Expense

General,  administrative and other expense decreased by $72,000, or 6.6%, during
the three months ended March 31, 1998, compared to the same period in 1997. This
decrease  resulted  primarily  from  a  $38,000,  or  54.3%,  decrease  in  data
processing  expense,  a $34,000,  or 26.6%,  decrease in occupancy and equipment
expense and a $25,000, or 8.0%, decrease in other operating expense,  which were
partially offset by a $24,000,  or 4.3%,  increase in employee  compensation and
benefits.  The  decrease in  general,  administrative  and other  expense can be
partially  attributed  to the  economies  recognized  from the merger of the two
institutions in November 1997 and the sale of the Hanover branch during February
1997.

Income Taxes

The provision  for income taxes  decreased by $49,000,  or 20.2%,  for the three
months  ended March 31,  1998,  as  compared  to the same  period in 1997.  This
decrease  resulted  primarily  from a  decrease  in net  earnings  before tax of
$69,000,  or 11.8%.  The  effective tax rates were 37.7% and 41.6% for the three
months ended March 31, 1998 and 1997, respectively.

Other 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.

As of the date of this Form  10-QSB,  the Bank has not  identified  any specific
expenses  that are  reasonably  likely to be incurred by the Bank in  connection
with this issue and does not expect to incur  significant  expense to  implement
the necessary  corrective  measures.  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 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.  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.

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<PAGE>


                              River Valley Bancorp

                                     PART II

ITEM 1.  Legal Proceedings

         Not applicable

ITEM 2.  Changes in Securities

         None

ITEM 3.  Defaults Upon Senior Securities

         Not applicable

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

         None.

ITEM 5.  Other Information

         None.

ITEM 6.  Exhibits and Reports on Form 8-K

         Reports on Form 8-K:              None

         Exhibit 27:                       Financial Data Schedule for the three
                                           month period ended March 31, 1998























                                       15



<PAGE>




                                   SIGNATURES

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





Date:        May 11, 1998                           By: /s/James E. Fritz
       -----------------------------                    -----------------
                                                        James E. Fritz
                                                        CEO/President



Date:        May 11, 1998                            By: /s/Larry C. Fouse
       -----------------------------                     -----------------
                                                         Larry C. Fouse
                                                         Chief Financial Officer





































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