SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2004 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: 0-21765

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

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

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

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


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

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

Yes [ ]         No [ ]


                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest  practicable date:  November 8, 2004 - 1,594,377 common
shares.

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



<PAGE>



                              RIVER VALLEY BANCORP
                                   FORM 10-QSB


                                      INDEX

                                                                        Page No.
PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

            Consolidated Condensed Balance Sheet                               3

            Consolidated Condensed Statement of Income                         4

            Consolidated Condensed Statement of Comprehensive Income           5

            Consolidated Condensed Statement of Cash Flows                     6

            Notes to Unaudited Consolidated Condensed Financial Statements     7

Item 2.  Management's Discussion and Analysis or Plan of Operation             9

Item 3.  Controls and Procedures.                                             14

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                    14
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds          15
Item 3.  Defaults Upon Senior Securities                                      15
Item 4.  Submission of Matters to a Vote of Security Holders                  15
Item 5.  Other Information                                                    15
Item 6.  Exhibits                                                             15

SIGNATURES                                                                    16

EXHIBITS





                                       2
<PAGE>
<TABLE>
<CAPTION>

PART I  FINANCIAL INFORMATION
Item 1.  Financial Statements

                                                RIVER VALLEY BANCORP
                                        Consolidated Condensed Balance Sheet

                                                                                   September 30,       December 31,
                                                                                       2004                2003
                                                                                    (Unaudited)
                                                                                  -----------------------------------
                                                                                 (In Thousands, Except Share Amounts)
<S>                                                                                  <C>                  <C>
   Assets
         Cash and due from  banks                                                    $  4,729             $  4,443
         Interest-bearing demand deposits                                               5,395                8,069
                                                                                  -----------------------------------
               Cash and cash equivalents                                               10,124               12,512
         Investment securities available for sale                                      19,160               34,557
         Loans held for sale                                                              105                  100
         Loans                                                                        229,928              194,222
                   Allowance for loan losses                                            2,339                2,056
                                                                                  -----------------------------------
                            Net loans                                                 227,589              192,166
         Premises and equipment                                                         6,201                5,980
         Federal Home Loan Bank stock                                                   3,250                2,176
         Interest receivable                                                            1,562                1,489
         Cash surrender value life insurance                                            5,251                5,093
         Other assets                                                                     986                1,003
                                                                                  -----------------------------------
                              Total assets                                           $274,228             $255,076
                                                                                  ===================================

   Liabilities
         Deposits
               Non-interest-bearing                                                  $ 14,929             $ 11,828
               Interest-bearing                                                       163,464              168,126
                                                                                  -----------------------------------
                     Total deposits                                                   178,393              179,954
         Borrowings                                                                    72,217               50,000
         Interest payable                                                                 348                  381
         Other liabilities                                                                923                1,886
                                                                                  -----------------------------------
               Total liabilities                                                      251,881              232,221
                                                                                  -----------------------------------

   Commitments and Contingencies

   Shareholders' Equity
         Preferred stock,  without par value
               Authorized and unissued - 2,000,000 shares
         Common stock, without par value
               Authorized - 5,000,000 shares
               Issued and outstanding - 1,607,385and 1,646,680 shares
         Additional paid-in capital                                                     8,392                8,705
         Retained earnings                                                             14,044               14,088
         Shares acquired by stock benefit plans                                          (167)                (193)
         Accumulated other comprehensive income                                            78                  255
                                                                                  -----------------------------------
               Total shareholders' equity                                              22,347               22,855
                                                                                  -----------------------------------

               Total liabilities and shareholders' equity                            $274,228             $255,076
                                                                                  ===================================

   See notes to consolidated condensed financial statements.


</TABLE>

                                                        3
<PAGE>
<TABLE>
<CAPTION>

                                                   RIVER VALLEY BANCORP
                                        Consolidated Condensed Statement of Income
                                                        (Unaudited)


                                                                            Nine Months Ended              Three Months Ended
                                                                              September 30,                    September 30,
                                                                         -------------------------------------------------------
                                                                          2004            2003              2004           2003
                                                                         -------------------------------------------------------
                                                                                  (In Thousands, Except Share Amounts)
<S>                                                                      <C>             <C>              <C>             <C>
Interest Income
      Loans receivable                                                   $ 9,055         $ 8,495          $ 3,199         $ 2,980
      Investment securities                                                  652             777              182             268
      Interest-earning deposits and other                                    135             171               47              61
                                                                         --------------------------------------------------------
            Total interest income                                          9,842           9,443            3,428           3,309
                                                                         --------------------------------------------------------

Interest Expense
      Deposits                                                             2,056           2,492              691             773
      Borrowings                                                           1,956           1,526              722             572
                                                                         --------------------------------------------------------
            Total interest expense                                         4,012           4,018            1,413           1,345
                                                                         --------------------------------------------------------

Net Interest Income                                                        5,830           5,425            2,015           1,964
      Provision for loan losses                                              266             360               72             180
                                                                         --------------------------------------------------------
Net Interest Income After Provision for Loan Losses                        5,564           5,065            1,943           1,784
                                                                         --------------------------------------------------------

Other Income
      Net realized gains (losses) on sales of available-for-sale
        securities                                                            24              (1)              15               1
      Service fees and charges                                             1,323           1,040              461             356
      Net gains on loan sales                                                342           1,450               80             471
      Other income                                                           264             168               79              96
                                                                         --------------------------------------------------------
            Total other income                                             1,953           2,657              635             924
                                                                         --------------------------------------------------------

Other Expenses
      Salaries and employee benefits                                       2,348           2,022              791             689
      Net occupancy and equipment expenses                                   840             602              361             213
      Data processing fees                                                   108             109               35              51
      Advertising                                                            170             196               53              65
      Legal and professional fees                                            167             143               67              38
      Amortization of mortgage servicing rights                              141             475                4             306
      Other expenses                                                         826             859              185             123
                                                                         --------------------------------------------------------
            Total other expenses                                           4,600           4,406            1,496           1,485
                                                                         --------------------------------------------------------

Income Before Income Tax                                                   2,917           3,316            1,082           1,223
      Income tax expense                                                   1,117           1,290              436             473
                                                                         --------------------------------------------------------

Net Income                                                               $ 1,800         $ 2,026          $   646         $   750
                                                                         ========================================================

Basic earnings per share                                                 $  1.12         $  1.28          $   .41         $   .47
Diluted earnings per share                                                  1.08            1.22              .39             .45
Dividends per share                                                          .53            .425              .18             .15

See notes to consolidated condensed financial statements.




</TABLE>

                                                                4
<PAGE>
<TABLE>
<CAPTION>


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




                                                                       Nine Months Ended                Three Months Ended
                                                                         September 30,                    September 30,
                                                                   -----------------------------------------------------------
                                                                     2004             2003             2004             2003
                                                                   -----------------------------------------------------------
                                                                                        (In Thousands)

<S>                                                                 <C>              <C>              <C>              <C>
Net income                                                          $ 1,800          $ 2,026          $   646          $   750
Other comprehensive income, net of tax
  Unrealized gains on securities available for sale
       Unrealized holding gains (losses) arising during
       the period, net of tax expense (benefit) of
       $(107), $(18), $42 and $(127)                                   (163)             (30)              64             (193)
       Less: Reclassification adjustment for gains (losses)
       included in net income, net of tax expense (benefit)
       of $10, $0, $6 and $0                                             14               (1)               9                1
                                                                    ----------------------------------------------------------
                                                                       (177)             (29)              55             (194)
                                                                    ----------------------------------------------------------
 Comprehensive income                                               $ 1,623          $ 1,997          $   701          $   556
                                                                    ==========================================================




See notes to consolidated condensed financial statements.


</TABLE>




                                                            5
<PAGE>
<TABLE>
<CAPTION>

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

                                                                                                Nine Months Ended
                                                                                                  September 30,
                                                                                           ---------------------------
                                                                                             2004              2003
                                                                                           ---------------------------
                                                                                                  (In Thousands)
<S>                                                                                        <C>               <C>
Operating Activities
  Net income                                                                               $  1,800          $  2,026
  Adjustments to reconcile net income to net cash provided by operating activities
    Provision for loan losses                                                                   266               360
    Depreciation and amortization                                                               433               375
    Investment securities (gains) losses                                                        (24)                1
    Loans originated for sale in the secondary market                                       (15,798)          (64,117)
    Proceeds from sale of loans in the secondary market                                      15,960            65,849
    Gain on sale of loans                                                                      (342)           (1,450)
    Amortization of deferred loan origination cost                                               99               132
    Amortization of expense related to stock benefit plans                                      248               291
    Net change in:
      Interest receivable                                                                       (73)             (145)
      Interest payable                                                                          (33)             (104)
     Other adjustments                                                                         (787)              596
                                                                                           ---------------------------
        Net cash provided by operating activities                                             1,749             3,814
                                                                                           ---------------------------

Investing Activities
  Purchases of securities available for sale                                                 (3,132)          (10,935)
  Proceeds from maturities of securities available for sale                                  14,034             3,067
  Proceeds from sale of securities available for sale                                         4,211             2,349
  Purchase of Federal Home Loan Bank stock                                                     (992)              (48)
  Net change in loans                                                                       (35,613)          (21,927)
  Premiums paid on life insurance                                                                --            (3,635)
  Purchases of premises and equipment                                                          (654)             (532)
  Proceeds from sale of real estate owned                                                         0                43
                                                                                           ---------------------------
        Net cash used in investing activities                                               (22,146)          (31,618)
                                                                                           ---------------------------

Financing Activities
  Net change in
    Noninterest-bearing, interest-bearing demand and savings deposits                        (1,794)           11,375
    Certificates of deposit                                                                     233            (1,607)
  Proceeds from borrowings                                                                   34,000            14,000
  Repayment of borrowings                                                                   (12,000)           (5,000)
  Cash dividends                                                                               (842)             (616)
  Purchase of stock                                                                          (1,679)             (285)
  Stock options exercised                                                                       101               227
  Acquisition of stock for stock benefit plans                                                  (34)                0
  Advances by borrowers for taxes and insurance                                                  24                19
                                                                                           ---------------------------
        Net cash provided by financing activities                                            18,009            18,113
                                                                                           ---------------------------

Net Change in Cash and Cash Equivalents                                                      (2,388)           (9,691)

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

Cash and Cash Equivalents, End of Period                                                   $ 10,124          $  8,919
                                                                                           ===========================

Additional Cash Flows and Supplementary Information
  Interest paid                                                                            $  4,045          $  4,122
  Income tax paid                                                                               673             1,041


See notes to consolidated condensed financial statements.




                                                         6
</TABLE>
<PAGE>

                              RIVER VALLEY BANCORP
         Notes to Unaudited Consolidated Condensed Financial Statements


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


Note 1: Basis of Presentation

The accompanying  unaudited  consolidated  condensed  financial  statements were
prepared in accordance with instructions for Form 10-QSB and, therefore,  do not
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, 2003.  However,  in the opinion of
management, all adjustments (consisting of only normal recurring accruals) which
are necessary for a fair  presentation  of the  financial  statements  have been
included.  The results of operations for the nine and three-month  periods ended
September 30, 2004, are not  necessarily  indicative of the results which may be
expected for the entire year. The  consolidated  condensed  balance sheet of the
Corporation  as  of  December  31,  2003  has  been  derived  from  the  audited
consolidated balance sheet of the Corporation as of that date.


Note 2: Principles of Consolidation

The consolidated  financial  statements  include the accounts of the Corporation
and its  subsidiaries.  All significant  intercompany  balances and transactions
have been eliminated in the accompanying consolidated financial statements.


Note 3: Earnings Per Share

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





                                       7
<PAGE>
<TABLE>
<CAPTION>
                                                      Nine Months Ended                         Nine Months Ended
                                                      September 30, 2004                        September 30, 2003
                                                      ------------------                        ------------------
                                                           Weighted       Per                            Weighted        Per
                                                            Average      Share                            Average       Share
                                            Income           Shares      Amount        Income              Shares       Amount
                                            ------           ------      ------        ------              ------       ------
                                                                    (In Thousands, Except Share Amounts)
<S>                                       <C>              <C>            <C>        <C>                 <C>            <C>
Basic earnings per share
   Income available to common
   shareholders                           $    1,800       1,600,173      $1.12      $    2,026          1,584,378      $1.28
                                                                          =====                                         =====

Effect of dilutive RRP awards and
stock options                                                 72,289                                        77,498
                                          --------------------------                 -----------------------------
Diluted earnings per share
Income available to  common
shareholders and assumed conversions
                                          $    1,800       1,672,462      $1.08      $    2,026          1,661,876      $1.22
                                          =====================================      ========================================



                                                      Three Months Ended                        Three Months Ended
                                                      September 30, 2004                        September 30, 2003
                                                      ------------------                        ------------------
                                                           Weighted       Per                            Weighted        Per
                                                            Average      Share                            Average       Share
                                            Income           Shares      Amount        Income              Shares       Amount
                                            ------           ------      ------        ------              ------       ------
                                                                    (In Thousands, Except Share Amounts)
Basic earnings per share
   Income available to common
   shareholders                           $      646       1,589,574      $. 41      $      750          1,591,906      $. 47
                                                                          =====                                         =====

Effect of dilutive RRP awards and
stock options                                                 69,629                                        79,088
                                          --------------------------                 -----------------------------
Diluted earnings per share
Income available to  common
shareholders and assumed conversions
                                          $      646       1,659,203      $ .39      $      750          1,670,994      $ .45
                                          =====================================      ========================================

</TABLE>


Note 4:     Stock Options

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





                                                           8
<PAGE>
<TABLE>
<CAPTION>


                                                   Nine Months Ended    Nine Months Ended    Three Months Ended   Three Months Ended
                                                     September 30,        September 30,        September 30,        September 30,
                                                         2004                  2003                 2004                 2003
                                                  ----------------------------------------------------------------------------------
<S>                                                   <C>                  <C>                    <C>                  <C>
Net income, as reported                               $   1,800            $   2,026              $   646              $   750

Less:  Total stock-based employee compensation
  cost determined under the fair value based
  method, net of income taxes                                20                   20                    7                    7
                                                      ------------------------------------------------------------------------

Pro forma net income                                  $   1,780            $   2,006              $   639              $   743
                                                      ========================================================================

Earnings per share:
     Basic - as reported                              $    1.12            $    1.28              $   .41              $   .47
     Basic - pro forma                                     1.11                 1.27                  .40                  .47
     Diluted - as reported                                 1.08                 1.22                  .39                  .45
     Diluted - pro forma                                   1.06                 1.21                  .39                  .45

</TABLE>


Note 5:     Accounting Changes

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


Note 6: Reclassifications

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


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

Forward Looking Statements

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



                                       9
<PAGE>

important  factors  that could cause such  differences.  These  factors  include
regional  and  national  economic  conditions,  changes in  monetary  and fiscal
policies of the federal government,  changes in levels of market interest rates,
the  adequacy  of the  allowance  for  losses  on loans  and the level of future
provisions for losses on loans,  the change in state leadership and dominance by
a different  political party in the state legislature,  demand for loan products
and  financial  services,  and the  results the bank has with the new markets in
Charlestown and Sellersburg, Indiana, and Carrollton, Kentucky.


Critical Accounting Policies

The notes to the  consolidated  financial  statements  contain a summary  of the
Company's  significant  accounting  policies presented on pages 25 through 27 of
the Annual Report to Shareholders for the year ended December 31, 2003.  Certain
of these  policies are  important to the  portrayal of the  Company's  financial
condition,  since  they  require  management  to  make  difficult,   complex  or
subjective  judgments,  some of which may relate to matters that are  inherently
uncertain.  Management  believes that its critical  accounting  policies include
determining  the  allowance  for  loan  losses  and the  valuation  of  mortgage
servicing rights.


Allowance for loan losses

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

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

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

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

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

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

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


                                       10
<PAGE>

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

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

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


Valuation of Mortgage Servicing Rights

The Company  recognizes the rights to service  mortgage loans as separate assets
in the  consolidated  balance  sheet.  The  total  cost of  loans  when  sold is
allocated between loans and mortgage servicing rights based on the relative fair
values of each. Mortgage servicing rights are subsequently  carried at the lower
of the  initial  carrying  value,  adjusted  for  amortization,  or fair  value.
Mortgage  servicing  rights are evaluated for impairment based on the fair value
of those  rights.  Factors  included  in the  calculation  of fair  value of the
mortgage  servicing  rights include,  estimating the present value of future net
cash flows,  market loan  prepayment  speeds for similar loans,  discount rates,
servicing costs, and other economic factors. Servicing rights are amortized over
the estimated period of net servicing revenue.  It is likely that these economic
factors will change over the life of the mortgage servicing rights, resulting in
different  valuations of the mortgage servicing rights. The differing valuations
will  affect  the  carrying  value  of  the  mortgage  servicing  rights  on the
consolidated balance sheet as well as the income recorded from loan servicing in
the income statement.  As of September 30, 2004 and December 31, 2003,  mortgage
servicing rights had carrying values of $886,000 and $854,000, respectively.


The Bank's Insurance Agency

On June 15, 2004, the Board of Directors of the Company approved the purchase by
the Company of one unit of common stock of The Bank's  Insurance  Agency Holding
Company LLC ("TBIAHC") and approved a Participating  Agency  Services  Agreement
between the Company and TBIAHC's wholly-owned  subsidiary,  The Bank's Insurance
Agency LLC ("TBIA"),  thereby  joining TBIA as an affiliate  bank. The Company's
cost for the unit of common stock was $75,000,  and the actual transfer of funds
for payment  occurred on September  28, 2004.  The TBIA is an Indiana  statewide
agency  under the  direction of the  Community  Bankers  Association  of Indiana
(CBAI) of which River Valley Financial Bank is a member.  TBIAHC's sole business
is to own and operate its  subsidiary,  TBIA,  which will be in the  business of
soliciting,  negotiating  and selling  insurance  products though its affiliated
members.  All business will be conducted through TBIA, and TBIA will provide the
clients of its  affiliate  banks a  cost-effective  and  choice-based  insurance
distribution  program.  TBIA  will  act  as an  independent  agent  of  multiple
insurance companies,  focusing on pre-selected  products that bank customers are
likely to need--including life, health and property and casualty coverages. TBIA
will also provide marketing and administration  agency distribution  services to
affiliate banks.

Each  affiliate  bank  of  TBIA,  including  the  Company,  will  enter  into  a
contractual  relationship  with TBIA,  whereby such affiliate  banks will assign
certain rights to their existing and future  insurance  client  relationships to
TBIA.  In return,  affiliate  banks will be  compensated  in  relation  to their
existing relationships and future clients referred to TBIA.  Specifically,  TBIA
will remit to affiliate banks a certain portion of the commissions TBIA receives
with respect to the policies  and  insureds  referred to TBIA by that  affiliate
bank. To  accomplish  this  arrangement,  the Company  became  licensed with the
Indiana  Department of Insurance.  Employees of the affiliate  banks will not be
licensed as insurance  producers  and  therefore  not able to directly  solicit,
negotiate and sell such products.  It is expected that TBIA's insurance products
will be offered to the Bank's clients in the last half of 2005.


Financial Condition

At September 30, 2004,  the  Corporation's  consolidated  assets  totaled $274.2
million,  an increase of $19.2  million,  or 7.5% from  December 31,  2003.  The
increase in assets resulted  primarily from an increase in net loans receivable,



                                       11
<PAGE>

including  loans  held for  sale,  of $35.4  million,  partially  offset  by the
decrease of the investment  portfolio of $15.4  million,  which was funded by an
increase in borrowed funds of $22.2 million.  Liquid assets (i.e., cash and cash
equivalents)  decreased by $2.4 million  from  December 31, 2003,  to a total of
$10.1 million at September 30, 2004.

The Corporation's consolidated allowance for loan losses totaled $2.1 million on
December 31, 2003 and $2.3 million at September 30, 2004, which represented 1.1%
and 1.0% of total loans  respectively.  Non-performing  loans  (defined as loans
delinquent  greater  than 90 days  and  loans  on  non-accrual  status)  totaled
$493,000  and   $1,116,000   at  December  31,  2003  and  September  30,  2004,
respectively. Although management believes that its allowance for loan losses at
September  30,  2004,   was  adequate   based  upon  the  available   facts  and
circumstances,  there can be no assurance  that additions to such allowance will
not  be  necessary  in  future  periods,   which  could  negatively  affect  the
Corporation's results of operations.

Deposits  totaled  $178.4  million at  September  30,  2004,  a decrease of $1.6
million,  or .9 %, compared to total  deposits at December 31, 2003. The lack of
growth for the nine-month  period resulted from very competitive  interest rates
in some of our  markets  and the loss of  approximately  $6.0  million in public
funds deposits.

Borrowings  totaled  $50.0  million at December 31, 2003,  and $72.2  million on
September  30, 2004.  The average cost of  borrowings  at September 30, 2004 was
3.99%, slightly down from 4.08% at December 31, 2003.

Shareholders'  equity totaled $22.3 million at September 30, 2004, a decrease of
$508,000,  or 2.2 % from $22.9  million  at  December  31,  2003.  The  decrease
resulted primarily from the Corporation's cash dividends and stock repurchases.

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


Comparison of Operating Results for the Nine Months Ended September 30, 2004 and
2003

General

The  Corporation's  net income for the nine months  ended  September  30,  2004,
totaled  $1,800,000,  a  decrease  of  $226,000  or 11.2 % from  the  $2,026,000
reported for the period ended  September 30, 2003. The decrease in income in the
2004 period was primarily  attributable  to a decrease in gains on loan sales of
$1,108,000.  The  decrease was offset in part by an increase in service fees and
charges of  $283,000,  an increase  in net  interest  income of  $405,000  and a
decrease in other expenses of $194,000.


Net Interest Income

Total interest  income for the nine months ended  September 30, 2004 amounted to
$9.8 million,  an increase of $399,000,  or 4.2%, from the comparable  period in
2003, reflecting the effects of an increase in average  interest-earning  assets
outstanding but also a decrease in the average loan rate of approximately 0.31%.

Interest expense on deposits decreased by $436,000, or 17.5%, to a total of $2.1
million for the nine  months  ended  September  30,  2004,  due  primarily  to a
decrease in the average rate paid on deposits outstanding year-to-year. Interest
expense on borrowings  totaled $2.0 million for the nine months ended  September
30, 2004,  an increase of $430,000,  from the  comparable  period in 2003.  This
increase resulted primarily from an increase in average borrowings year-to-year.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  increased by $405,000,  or 7.5%, for the nine months ended
September 30, 2004, as compared to the same period in 2003.


Provision for Losses on Loans

A  provision  for  losses  on loans is  charged  to  income  to bring  the total
allowance for loan losses to a level considered  appropriate by management based
upon  historical  experience,  the volume and type of lending  conducted  by the
Bank, the status of past due principal and interest  payment,  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




                                       12
<PAGE>

analysis,  management  recorded a $266,000 provision for losses on loans for the
nine months ended  September 30, 2004,  compared to the $360,000 amount recorded
in the 2003 period.  The 2004 provision amount was predicated on the increase in
the balance of the loan  portfolio,  coupled with the level of delinquent  loans
year-to-year.  While management  believes that the allowance for losses on loans
is  adequate  at  September  30,  2004,  based  upon  the  available  facts  and
circumstances,  there can be no assurance  that the loan loss  allowance will be
adequate to cover losses on non-performing assets in the future.


Other Income

Other income  decreased by $704,000,  during the nine months ended September 30,
2004, as compared to the same period in 2003.  The decrease was due primarily to
a $1,108,000  decrease in gains on sale of loans.  This decrease,  however,  was
offset partially by the $283,000 increase in service fees and charges due to new
programs and services introduced in late 2003.


Other Expense

Other  expense  increased  by  $194,000,  or 4.4%,  during the nine months ended
September 30, 2004, as compared to the same period in 2003. The increase was due
primarily  to a  $326,000  increase  in  salaries  and  benefits  and a $238,000
increase in net  occupancy  and  equipment  expense  resulting  from an expanded
branch  network.   These  increases  were  in  part  offset  by  a  decrease  in
amortization of mortgage  servicing  rights which was adjusted each period based
on the valuation results.


Income Taxes

The  provision  for income taxes  totaled $1.1 million for the nine months ended
September  30, 2004, a decrease of $173,000,  or 13.4%,  as compared to the same
period in 2003. The effective tax rates were 38.3% and 38.9% for the nine months
ended September 30, 2004 and 2003, respectively.


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

General

The  Corporation's  net income for the three  months ended  September  30, 2004,
totaled  $646,000,  a decrease of  $104,000,  or 13.9% from the  $750,000 of net
income reported in the comparable  2003 period.  The decrease in earnings in the
2004 period was primarily  attributable to a decrease in net gains on loan sales
of  $391,000,  offset in part by an  increase  in  service  fees and  charges of
$105,000,  an increase in net  interest  income of $51,000 and a decrease in the
provision for loan losses of $108,000.


Net Interest Income

Total interest  income for the three months ended September 30, 2004 amounted to
$3.4 million,  a increase of $119,000,  or 3.6%, from the comparable  quarter in
2003, reflecting the effects of an increase in average  interest-earning  assets
outstanding, coupled with a decrease in the yield year-to-year.  Interest income
on loans totaled $3.2 million for the three months ended  September 30, 2004, an
increase of $219,000,  or 7.3 %, from the comparable quarter in 2003, reflecting
the effects of an increase in average balance of loans year-to-year.

Interest  expense on  deposits  decreased  by $82,000,  or 10.6%,  to a total of
$691,000 for the quarter ended  September 30, 2004,  due primarily to a decrease
in the average  rate of deposits  outstanding.  Interest  expense on  borrowings
totaled  $722,000 for the three months ended  September 30, 2004, an increase of
$150,000 over the  comparable  quarter in 2003.  This increase  resulted from an
increase in average borrowings outstanding from year-to-year.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  increased by $51,000,  or 2.6%, for the three months ended
September 30, 2004, as compared to the same quarter in 2003.



                                       13
<PAGE>

Provision for Losses on Loans

A  provision  for  losses on loans is  charged  to  earnings  to bring the total
allowance for loan losses to a level considered  appropriate by management based
upon  historical  experience,  the volume and type of lending  conducted  by the
Bank, the status of past due principal and interest  payments,  general economic
conditions,  particularly as such  conditions  relate to the Bank's market area,
and other factors related to the collectibility of the Bank's loan portfolio. As
a result of such analysis, management recorded a $72,000 provision for losses on
loan for the three months  ended  September  30, 2004,  compared to the $180,000
recorded in the 2003 period.  While  management  believes that the allowance for
losses on loans is adequate at  September  30,  2004,  based upon the  available
facts and circumstances,  there can be no assurance that the loan loss allowance
will be adequate to cover losses on non-performing assets in the future.


Other Income

Other income  decreased by $289,000,  for the three months ended  September  30,
2004, as compared to the same period in 2003, due primarily to a decrease in net
gains on loan sales.


Other Expense

Other  expenses  increased  by $11,000,  or .7%,  during the three  months ended
September  30, 2004,  compared to the same period in 2003.  The increase was due
primarily to the increase in general expense due to growth.


Income Taxes

The  provision  for income  taxes  totaled  $436,000  for the three months ended
September  30,  2004,  a decrease of $37,000,  or 7.8%,  as compared to the same
period in 2003. This decrease  resulted  primarily from a decrease in net income
before  income taxes of $141,000,  or 29.8%.  The effective tax rates were 40.3%
and 38.7% for the three months ended September 30, 2004 and 2003, respectively.


Other

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


Item 3. Controls and Procedures.

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

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


PART II.   OTHER INFORMATION

Item 1. Legal Proceedings.

     In  connection  with the Bank's  2004  examination  by the Office of Thrift
     Supervision (the "OTS"),


                                       14
<PAGE>

     the OTS uncovered  certain  failures on the part of the Bank to comply with
     the Bank Secrecy Act, the Flood Disaster  Protection  Act(the "FDPA"),  the
     Homeowners' Protection Act and the Truth in Lending Act. The OTS made clear
     that the Bank had already made  substantial  corrective  actions to improve
     its  compliance  programs and systems.  Nonetheless,  because of the Bank's
     alleged failure to comply with the FDPA with respect to four loans, the OTS
     assessed  civil  monetary  penalties  against the Bank of $1,400.  The Bank
     executed a  Stipulation  and Consent to the  issuance of a cease and desist
     order and assessment of the $1,400 in civil money penalties with respect to
     these matters.  Management believes it has now taken all necessary steps to
     resolve these compliance issues.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

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

                                         Total Number of      Maximum Number of
                Total Number           Shares Purchased as     Shares That May
                 of Shares    Average   Part of  Publicly     Yet be Purchased
Period           Purchased     Price     Announced Plan        Under the Plan
--------------------------------------------------------------------------------
July 2004           6,500      $22.25          6,500                   *
August 2004         3,500       22.46          3,500                   *
September 2004      -----      ------          -----                  --

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


Item 3. Defaults Upon Senior Securities.

     None.


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

     None.


Item 5. Other Information.

     None.


Item 6. Exhibits.

     Exhibit  10   Employment Agreement between River Valley Financial Bank and
                   Gregory T. Siegrist

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

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

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



                                       15
<PAGE>



                                   Signatures

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



                                       RIVER VALLEY BANCORP


Date:  November 15, 2004            By: /s/ Matthew P. Forrester
                                        ----------------------------------------
                                        Matthew P. Forrester
                                        President and Chief Executive Officer



Date:  November 15, 2004            By: /s/ Larry C. Fouse
                                        ----------------------------------------
                                        Larry C. Fouse
                                        Vice President of Finance









                                       16