FORM 10-QSB


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

(Mark One)

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

For the quarterly period ended         June 30, 1997
                               --------------------------------

                                       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 August 11,  1997,  the latest  practicable  date  1,190,250  shares of the
registrant's common stock, without par value, were issued and outstanding.









                               Page 1 of 18 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 Cash Flows .....................    5

          Notes to Consolidated Financial Statements ................    7

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


PART II - OTHER INFORMATION .........................................   17

SIGNATURES ..........................................................   18





























                                        2



<PAGE>


<TABLE>
<CAPTION>

                              River Valley Bancorp

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                        (In thousands, except share data)

                                                                                           June 30,        December 31,
         ASSETS                                                                                1997                1996
<C>                                                                                            <S>                 <S>
Cash and due from banks ...........................................................      $    3,143          $    4,209
Federal funds sold ................................................................             850                  -
Interest bearing deposits in other financial institutions .........................           1,752               4,476
                                                                                          ---------           ---------
         Cash and cash equivalents ................................................           5,745               8,685

Certificates of deposit in other financial institutions ...........................             896                 100
Investment securities designated as available for sale - at market ................           1,254               3,448
Investment securities - at amortized cost, approximate market value of
  $3,451 and $5,434 as of June 30, 1997 and December 31, 1996 .....................           3,500               5,500
Mortgage-backed securities designated as available for sale - at market ...........           3,867               5,041
Mortgage-backed and related securities - at cost, approximate market
  value of $6,467 and $7,794 as of June 30, 1997 and December 31, 1996 ............           6,480               7,805
Loans receivable - net ............................................................         112,558             107,918
Loans held for sale - at lower of cost or market ..................................             298               1,076
Office premises and equipment - at depreciated cost ...............................           1,810               2,057
Real estate acquired through foreclosure ..........................................              82                  -
Federal Home Loan Bank stock - at cost ............................................             943                 943
Federal Reserve Bank stock - at cost ..............................................             144                  80
Accrued interest receivable on loans ..............................................             893                 819
Accrued interest receivable on mortgage-backed securities .........................              59                  78
Accrued interest receivable on investments and interest-earning deposits ..........              85                 171
Goodwill, net of accumulated amortization .........................................             259                 272
Cash surrender value of life insurance ............................................             766                 747
Prepaid expenses and other assets .................................................             117                 169
Prepaid federal income taxes ......................................................              27                   4
Deferred tax asset ................................................................             659                 628
                                                                                         ----------          ----------

         Total assets .............................................................        $140,442            $145,541
                                                                                            =======             =======

         LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits ..........................................................................        $116,020            $125,656
Advances from the Federal Home Loan Bank ..........................................           5,000               1,100
Advances by borrowers for taxes and insurance .....................................              55                  70
Accrued interest payable ..........................................................             262                 279
Other liabilities .................................................................           1,467               1,422
Dividends payable .................................................................              47                  -
Minority interest in consolidated subsidiary ......................................             187                 209
                                                                                         ----------          ----------
         Total liabilities ........................................................         123,038             128,736

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 ......................................................          11,173              11,173
  Retained earnings - substantially restricted ....................................           7,253               6,635
  Shares acquired by Employee Stock Ownership Plan (ESOP) .........................            (952)               (952)
  Unrealized losses on securities designated as available for sale,
    net of related tax effects ....................................................             (70)                (51)
                                                                                        -----------         -----------
         Total stockholders' equity ...............................................          17,404              16,805
                                                                                           --------            --------

         Total liabilities and stockholders' equity ...............................        $140,442            $145,541

                                                                                            =======             =======
</TABLE>
                                                             3


<PAGE>


<TABLE>
<CAPTION>

                              River Valley Bancorp

                       CONSOLIDATED STATEMENTS OF EARNINGS

                        (In thousands, except share data)

                                                                          Six months ended            Three months ended
                                                                              June 30,                     June 30,
                                                                         1997         1996            1997         1996
<S>                                                                      <C>          <C>             <C>          <C> 
Interest income
  Loans ...........................................................    $4,487       $2,251          $2,286       $1,134
  Mortgage-backed and related securities ..........................       384          291             178          142
  Investment securities ...........................................       156          291              69          141
  Interest-earning deposits and other .............................       196          109              79           66
                                                                       ------       ------         -------      -------
         Total interest income ....................................     5,223        2,942           2,612        1,483

Interest expense
  Deposits ........................................................     2,451        1,691           1,201          837
  Borrowings ......................................................        34           44              30            8
                                                                      -------      -------         -------     --------
         Total interest expense ...................................     2,485        1,735           1,231          845
                                                                        -----        -----           -----       ------

         Net interest income ......................................     2,738        1,207           1,381          638

Provision for losses on loans .....................................       170           12              74            6
                                                                       ------      -------         -------     --------

         Net interest income after provision for losses on loans ..     2,568        1,195           1,307          632

Other income
  Insurance commissions ...........................................         7          104              -            44
  Gain on sale of investment and mortgage-backed securities .......         3           -                1           -
  Gain on sale of loans ...........................................        14           -               18           -
  Gain on sale of office premises and equipment ...................       203           -               -            -
  Service fees, charges and other operating .......................       397           97             194           49
                                                                       ------      -------          ------      -------
         Total other income .......................................       624          201             213           93

General, administrative and other expense
  Employee compensation and benefits ..............................     1,082          592             521          298
  Occupancy and equipment .........................................       248           98             120           54
  Federal deposit insurance premiums ..............................        15           88               9           43
  Amortization of goodwill ........................................        14            4               8            3
  Data processing .................................................       133          141              63           71
  Other operating .................................................       568          184             251           85
                                                                       ------       ------          ------      -------
         Total general, administrative and other expense ..........     2,060        1,107             972          554
                                                                        -----        -----          ------       ------

         Earnings before income taxes .............................     1,132          289             548          171

Income taxes
  Current .........................................................       488          148             238           66
  Deferred ........................................................       (21)         (40)            (14)         (12)
                                                                      -------      -------         -------      -------
         Total income taxes .......................................       467          108             224           54
                                                                       ------       ------          ------      -------

         NET EARNINGS .............................................   $   665      $   181         $   324      $   117
                                                                       ======       ======          ======       ======

         EARNINGS PER SHARE .......................................      $.61          N/A            $.30          N/A
                                                                          ===          ===             ===          ===
</TABLE>


                                        4


<PAGE>


<TABLE>
<CAPTION>

                              River Valley Bancorp

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

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

                                                                                                 1997              1996
<S>                                                                                              <C>               <C>
Cash flows from operating activities:
  Net earnings for the period ...........................................................     $   665           $   181
  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 ..................................          (2)               (1)
    Gain on sale of investment and mortgage-backed securities
      designated as available for sale ..................................................          (3)               -
    Loans originated for sale in the secondary market ...................................      (1,396)               -
    Proceeds from sale of loans in the secondary market .................................       2,188                -
    Loss on sale of loans ...............................................................           8                -
    Amortization of deferred loan origination costs .....................................          21                 9
    Provision for losses on loans .......................................................         170                12
    Depreciation and amortization .......................................................          98                27
    Amortization of goodwill ............................................................          14                 4
    Proceeds from sale of office premises and equipment .................................         402                -
    Gain on sale of office premises and equipment .......................................        (203)               -
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable on loans ..............................................         (74)                7
      Accrued interest receivable on mortgage-backed securities .........................          19                 5
      Accrued interest receivable on investments and interest-
        bearing deposits ................................................................          86                68
      Prepaid expenses and other assets .................................................          51              (219)
      Accrued interest payable ..........................................................         (17)                1
      Other liabilities .................................................................          23                75
      Income taxes
        Current .........................................................................         (23)               89
        Deferred ........................................................................         (21)              (40)
                                                                                              -------           -------
         Net cash provided by operating activities ......................................       2,006               218

Cash flows provided by (used in) investing activities:
  Proceeds from maturity of investment securities .......................................       2,000             3,000
  Proceeds from sale of investment securities designated as available for sale ..........       2,200                -
  Proceeds from sale of mortgage-backed securities designated as available for sale .....       1,158                -
  Purchase of Federal Reserve Bank stock ................................................         (64)               -
  Purchase of mortgage-backed securities designated as available for sale ...............         (67)               -
  Principal repayments on mortgage-backed securities ....................................       1,378             1,228
  Loan principal repayments .............................................................      17,271             7,729
  Loan disbursements ....................................................................     (22,206)           (7,254)
  Purchase of office equipment ..........................................................         (50)               -
  (Increase) decrease in certificates of deposit in other financial institutions - net ..        (796)              100
  Purchase of single premium life insurance .............................................          -               (188)
  Increase in cash surrender value of life insurance ....................................         (19)              (12)
                                                                                              -------           -------
         Net cash provided by investing activities ......................................         805             4,603
                                                                                               ------             -----

         Net cash provided by operating and investing
           activities (subtotal carried forward) ........................................       2,811             4,821

                                                                                                -----             -----
</TABLE>
                                        5


<PAGE>

<TABLE>
<CAPTION>


                              River Valley Bancorp

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

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

                                                                                                 1997              1996
<S>                                                                                               <C>              <C>
         Net cash provided by operating and investing
           activities (subtotal brought forward) ........................................      $2,811            $4,821

Cash flows provided by (used in) financing activities:
  Decrease in deposit accounts ..........................................................      (9,636)             (506)
  Proceeds from Federal Home Loan Bank advances .........................................       5,000                -
  Repayment of Federal Home Loan Bank advances ..........................................      (1,100)           (4,471)
  Advances by borrowers for taxes and insurance .........................................         (15)                9
                                                                                              -------          --------
         Net cash used in financing activities ..........................................      (5,751)           (4,968)
                                                                                                -----             -----

Net decrease in cash and cash equivalents ...............................................      (2,940)             (147)

Cash and cash equivalents at beginning of period ........................................       8,685             2,389
                                                                                                -----             -----

Cash and cash equivalents at end of period ..............................................      $5,745            $2,242
                                                                                                =====             =====


Supplemental  disclosure of cash flow  information:
  Cash paid during the period for:
    Federal income taxes ................................................................      $  344            $   84
                                                                                               ======             =====

    Interest on deposits and borrowings .................................................      $2,502            $1,734
                                                                                                =====             =====

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

  Unrealized losses on securities designated as available
    for sale, net of related tax effects ................................................      $  (19)           $  (52)
                                                                                                =====             ===== 

  Recognition of mortgage servicing rights in accordance with
    SFAS No. 122 ........................................................................      $   22            $   -

                                                                                                =====             ====
</TABLE>















                                        6



<PAGE>



                              River Valley Bancorp


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



On March 5, 1996,  the Board of Directors of Madison First  Federal  Savings and
Loan  Association  ("First  Federal")  adopted an overall plan of conversion and
reorganization  (the "Plan")  whereby  First  Federal would convert to the stock
form  of  ownership,  followed  by  the  issuance  of  all  of  First  Federal's
outstanding  stock to a newly  formed  holding  company,  River  Valley  Bancorp
("River  Valley" or the  "Corporation").  Pursuant to the Plan, the  Corporation
offered for sale up to 1,190,250  common  shares to certain  depositors of First
Federal and members of the  community.  The conversion was completed on December
20,  1996,  and  resulted in the  issuance  of  1,190,250  common  shares of the
Corporation  which,  after  consideration  of offering and acquisition  expenses
totaling  approximately  $730,000,  and shares  purchased  by the ESOP  totaling
$952,000,  resulted in net  capital  proceeds of $10.2  million.  The  financial
statements  included herein for periods prior to December 20, 1996, are those of
First Federal prior to the conversion to stock form.

In  connection  with  the  Conversion,   River  Valley  acquired  95.6%  of  the
outstanding  stock of Citizens  National  Bank of Madison  (the "Bank") for $3.1
million.  This  acquisition  was  accounted  for  using the  purchase  method of
accounting and as such, the June 30, 1996, financial statements presented herein
have not been restated for this acquisition.

The Corporation is a financial  institution holding company whose activities are
primarily   limited  to  holding  the  stock  of  First  Federal  and  the  Bank
(collectively,  "the Institutions").  The Institutions conduct 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. The Institutions'  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 First Federal and 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 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,  1996.  However,  in the opinion of  management,  all  adjustments
(consisting of only normal  recurring  accruals)  which are necessary for a fair
presentation  of the financial  statements  have been  included.  The results of
operations  for the six and three month periods ended June 30, 1997 and 1996 are
not  necessarily  indicative  of the results which may be expected for an entire
year.




                                        7


<PAGE>



                              River Valley Bancorp


             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


2.  Principles of Consolidation

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

3.  Effect of Recent Accounting Pronouncements

In October 1995, the Financial  Accounting  Standards  Board (the "FASB") issued
Statement of Financial  Accounting  Standards ("SFAS") No. 123,  "Accounting for
Stock-Based  Compensation,"  establishing  financial  accounting  and  reporting
standards  for  stock-based  compensation  plans.  SFAS No. 123  encourages  all
entities to adopt a new method of accounting to measure compensation cost of all
stock  compensation  plans based on the estimated fair value of the award at the
financial statement date. Companies are, however, allowed to continue to measure
compensation  cost for those plans  using the  intrinsic  value based  method of
accounting,  which generally does not result in compensation expense recognition
for most plans.  Companies that elect to remain with the existing accounting are
required to disclose in a footnote  to the  financial  statements  pro forma net
earnings  and, if  presented,  earnings  per share,  as if SFAS No. 123 had been
adopted.  The  accounting  requirements  of  SFAS  No.  123  are  effective  for
transactions  entered  into during  fiscal  years that begin after  December 15,
1995, although companies are required to disclose information for awards granted
in their first fiscal year  beginning  after  December 15, 1994.  Management has
determined  that the  Corporation  will  continue  to  account  for  stock-based
compensation in accordance with Accounting  Principles Board Opinion No. 25, and
therefore  the  disclosure  provisions  of  SFAS  No.  123  have  no  effect  on
consolidated financial position or results of operations.

In June 1996,  the FASB  issued  SFAS No.  125,  "Accounting  for  Transfers  of
Financial Assets,  Servicing Rights,  and  Extinguishment 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.






                                        8



<PAGE>



                              River Valley Bancorp


             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


3.  Effect of Recent Accounting Pronouncements (continued)

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  does not believe that  adoption of SFAS No. 125 will have a material
adverse effect on River Valley's  consolidated  financial position or results of
operations.

In  February  1997,  the FASB issued SFAS No. 128  "Earnings  Per Share",  which
requires  companies  to present  basic  earnings  per share and, if  applicable,
diluted  earnings per share,  instead of primary and fully diluted  earnings per
share,  respectively.  Basic  earnings per share is computed  without  including
potential common shares, i.e., no dilutive effect. Diluted earnings per share is
computed  taking into  consideration  common  shares  outstanding  and  dilutive
potential common shares, including options, warrants, convertible securities and
contingent stock agreements.  SFAS No. 128 is effective for periods ending after
December 15, 1997. Early adoption is not permitted. Based upon the provisions of
SFAS No. 128, the Corporation's basic and diluted earnings per share for the six
months ended June 30, 1997 would each have been $.61.

4.  Pending Legislative Changes

Congress  has enacted  legislation  that  provides for the merger of the Savings
Association Insurance Fund ("SAIF") and the Bank Insurance Fund ("BIF") by 1999,
but not until such time as bank and thrift  charters  are  combined.  A bill has
been  introduced  in the Congress  that would  consolidate  the Office of Thrift
Supervision with the Office of the Comptroller of the Currency.  If this statute
is  approved,  First  Federal  could be  required  to become a state or national
commercial  bank and become  subject to  regulation  by a  different  government
agency. If First Federal becomes a commercial bank, its investment authority and
the ability of River Valley to engage in  diversified  activities may be limited
or prohibited.








                                        9



<PAGE>



                              River Valley Bancorp


             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


5.  Earnings Per Share

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 deemed outstanding,
which gives effect to 95,220 unallocated ESOP shares, totaled 1,095,050 for each
of the three and six month  periods  ended June 30, 1997.  Earnings per share is
not  applicable  for the three and six month periods ended June 30, 1996, as the
Corporation completed its conversion to stock form in December 1996.

6.  Reclassification

Certain  reclassifications  have  been made to the 1996  consolidated  financial
statements to conform to the June 30, 1997 presentation.



































                                       10



<PAGE>



                              River Valley Bancorp


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

        For the three and six month periods ended June 30, 1997 and 1996


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,  legislative  changes  with  respect to the federal  thrift
charter and the effect of certain accounting pronouncements.


Discussion of Financial Condition Changes from December 31, 1996 to June 30,
  1997

At June 30, 1997, River Valley's  consolidated  assets totaled $140.4 million, a
decrease of $5.1  million,  or 3.5%,  from the December 31, 1996 total of $145.5
million.  The  decrease  in assets  resulted  primarily  from a decrease  in the
deposit portfolio of $9.6 million,  which was partially offset by an increase in
advances from the Federal Home Loan Bank of $3.9 million and  undistributed  net
earnings of $618,000.

Liquid assets (i.e.,  cash,  federal funds sold,  interest-earning  deposits and
certificates of deposit) decreased by $2.1 million from December 31, 1996 levels
to a total of $6.6 million at June 30, 1997.  Investment securities totaled $4.8
million at June 30, 1997, a decrease of $4.2  million,  or 46.9%,  from December
31, 1996 levels.  During the six month period ended June 30, 1997, maturities of
investment securities totaled $2.0 million, while sales of investment securities
designated  as  available   for  sale  totaled  $2.2  million.   Mortgage-backed
securities  decreased by $2.5 million,  or 19.5%, to a total of $10.3 million at
June 30, 1997, primarily due to principal repayments of $2.5 million.

Loans receivable,  including loans held for sale, totaled $112.9 million at June
30, 1997, an increase of $3.9 million, or 3.5%, over the $109.0 million total at
December 31, 1996. The increase resulted primarily from loan originations during
the period of $23.6 million, which were partially offset by principal repayments
of $17.3 million and sales of $2.2 million.

The  Corporation's  consolidated  allowance for loan losses totaled $1.2 million
and $1.1 million at June 30, 1997 and December  31,  1996,  respectively,  which
represented  1.0% and .99% of total loans at those  dates.  Nonperforming  loans
(defined  as  loans  delinquent  greater  than 90 days and  loans on  nonaccrual
status)  totaled  $609,000  and $819,000 at June 30, 1997 and December 31, 1996,
respectively.   The  decrease  in  nonperforming  loans  was  primarily  due  to
restoration of certain borrowers to a current status.



                                       11


<PAGE>



                              River Valley Bancorp


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

        For the three and six month periods ended June 30, 1997 and 1996


Discussion  of Financial  Condition  Changes from  December 31, 1996 to June 30,
  1997 (continued)

Although management believes that its allowance for loan losses at June 30, 1997
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  decreased  by $9.6  million,  or 7.7%,  to a total of $116.0  million,
compared to the $125.7  million  total at December 31, 1996.  The decline can be
attributed  primarily to $6.8 million of deposits sold in  conjunction  with the
sale of First Federal's branch located in Hanover, Indiana which was consummated
on February 28, 1997.

Advances  from the Federal Home Loan Bank totaled $5.0 million at June 30, 1997,
an increase of $3.9 million,  or 354.5%, over the $1.1 million total at December
31, 1996.  The increase was due to current  period  borrowings  of $4.5 million,
offset by  repayments  of  $600,000.  The  borrowings  were  deployed  into loan
originations.

Stockholders'  equity  totaled  $17.4  million at June 30, 1997,  an increase of
$599,000,  or 3.6%,  over the $16.8  million  total at December  31,  1996.  The
increase resulted primarily from current period earnings of $665,000,  partially
offset by a $19,000 increase in the unrealized  losses on securities  designated
as available for sale and the declaration of a dividend  totaling  $47,000.  The
Institutions are each required to maintain minimum  regulatory  capital pursuant
to federal regulations.  At June 30, 1997, each of the Institutions'  regulatory
capital exceeded all applicable regulatory capital requirements.


Comparison of Results of Operations for the Six Months Ended June 30, 1997 and
  1996

Increases in the level of income and expenses  during the six month period ended
June 30, 1997, as compared to the  comparable  period in 1996, are partially due
to the inclusion of the accounts of Citizens National Bank of Madison, which was
acquired by River Valley on December 20, 1996,  in a  transaction  accounted for
using the purchase method of accounting.  Accordingly, the statement of earnings
and the  statement  of cash flows for the six month  period ended June 30, 1996,
were not restated for the Acquisition.

General

River  Valley's net  earnings  for the six months  ended June 30, 1997,  totaled
$665,000,  an increase of $484,000, or 267.4%, over the $181,000 of net earnings
reported in the  comparable  1996  period.  The increase in earnings in the 1997
period is primarily  attributable  to an increase in net interest income of $1.5
million and an increase of $423,000 in other income, which were partially offset
by an increase in the provision for losses on loans of $158,000,  an increase in
general,  administrative  and other  expense of $953,000  and an increase in the
provision for federal income taxes of $359,000.



                                       12



<PAGE>



                              River Valley Bancorp


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

        For the three and six month periods ended June 30, 1997 and 1996


Comparison of Results of Operations for the Six Months Ended June 30, 1997
  and 1996 (continued)

Net Interest Income

Total interest  income for the six months ended June 30, 1997,  amounted to $5.2
million,  an increase of $2.3 million,  or 77.5%,  over the comparable period in
1996,  reflecting  the  effects  of growth in  average  interest-earning  assets
outstanding, coupled with an increase in yield year-to-year.  Interest income on
loans and  mortgage-backed  securities  totaled  $4.9 million for the six months
ended June 30, 1997, an increase of $2.3 million,  or 91.6%, over the comparable
1996 period. The increase resulted  primarily from the $55.1 million,  or 82.5%,
increase in the average  balance  outstanding  year-to-year,  coupled  with a 39
basis point increase in yield, to 8.00% in 1997.  Interest income on investments
and interest-earning  deposits decreased by $48,000, or 12.0%, due to a decrease
in average balances of $4.1 million which was partially offset by an approximate
106 basis point increase in yield over the comparable 1996 period.

Interest expense on deposits increased by $760,000, or 44.9%, to a total of $2.5
million for the six months ended June 30, 1997, due primarily to a $43.7 million
increase in the average  balance of deposits  outstanding,  which was  partially
offset by a decline in the weighted-average cost of deposits of 35 basis points,
to 4.08% in 1997.  Interest  expense on borrowings  totaled  $34,000 for the six
months ended June 30, 1997, a decrease of $10,000, or 22.7%, from the comparable
period in 1996.  The  decrease  resulted  primarily  from a decline  in  average
borrowings outstanding year-to-year.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  increased by $1.5 million,  or 126.8%,  for the six months
ended June 30, 1997,  compared to the  comparable  period in 1996.  The interest
rate spread increased by approximately 103 basis points for the six months ended
June 30, 1997,  to 3.79% from 2.76% in the 1996  period,  while the net interest
margin amounted to 4.12% in 1997 and 2.94% in 1996.

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
Institutions,  the status of past due principal and interest  payments,  general
economic conditions, particularly as such conditions relate to the Institutions'
market area, and other factors related to the collectibility of the Institutions
loan  portfolio.  As a result of such analysis,  management  recorded a $170,000
provision  for  losses on loans for the six  months  ended  June 30,  1997.  The
current period provision  generally reflects the growth in non-residential  real
estate and commercial  loans.  While management  believes that the allowance for
losses on loans is adequate at June 30, 1997, 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.



                                       13



<PAGE>



                              River Valley Bancorp


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

        For the three and six month periods ended June 30, 1997 and 1996


Comparison of Results of Operations for the Six Months Ended June 30, 1997
  and 1996 (continued)

Other Income

Other income increased by $423,000, or 210.4%, for the six months ended June 30,
1997,  as compared to the same period in 1996,  due primarily to a $203,000 gain
on sale of office  premises and equipment,  coupled with a $300,000,  or 309.3%,
increase  in  service  fees,  charges  and other  operating  income,  which were
partially  offset by a decline of $97,000,  or 93.3%,  in insurance  commissions
year-to-year.  The gain on sale of office premises resulted from First Federal'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 the Bank.  The decline in insurance
commissions  resulted  from  the  Association's  sale  of its  insurance  agency
subsidiary during the last quarter of 1996.

General, Administrative and Other Expense

General,  administrative  and other  expense  increased by  $953,000,  or 86.1%,
during the six months ended June 30, 1997,  compared to the same period in 1996.
This increase resulted primarily from a $490,000, or 82.3%, increase in employee
compensation  ad benefits,  a $150,000,  or 153.1%,  increase in  occupancy  and
equipment  expense  and a  $384,000,  or  208.7%,  increase  in other  operating
expense, which were partially offset by a $73,000, or 83.0%, decrease in federal
deposit insurance premiums.  The increase in employee  compensation and benefits
resulted  from costs  associated  with  stock  benefit  plans and  normal  merit
increases,  and by the inclusion of the Bank's operating expenses.  The increase
in other operating  expense  reflects  increases in professional  fees and other
costs  associated  with the  public  reporting  requirements  of a public  stock
company.  The decline in federal  deposit  insurance  premiums  resulted  from a
reduction in premium rates  following  the payment of the SAIF  recapitalization
assessment in 1996 by First Federal.

Income Taxes

The provision  for income taxes  increased by $359,000,  or 332.4%,  for the six
months  ended  June 30,  1997,  as  compared  to the same  period in 1996.  This
increase  resulted  primarily  from an  increase in net  earnings  before tax of
$843,000,  or 291.7%.  The  effective tax rates were 41.3% and 37.4% for the six
months ended June 30, 1997 and 1996, respectively.


Comparison of Results of Operations for the Three Months Ended June 30, 1997
  and 1996

Increases in the level of income and expense during the three month period ended
June 30, 1997, as compared to the  comparable  quarter in 1996, is partially due
to the inclusion of the accounts of Citizens National Bank of Madison, which was
acquired by River Valley on December 20, 1996,  in a  transaction  accounted for
using the purchase method of accounting.  Accordingly, the statement of earnings
for the quarter ended June 30, 1996 has not been restated for the Acquisition.

                                       14



<PAGE>



                              River Valley Bancorp


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

        For the three and six month periods ended June 30, 1997 and 1996


Comparison of Results of Operations for the Three Months Ended June 30, 1997
  and 1996 (continued)

General

River  Valley's net  earnings for the three months ended June 30, 1997,  totaled
$324,000,  an increase of $207,000, or 176.9%, over the $117,000 of net earnings
in the  comparable  1996 period.  The increase in earnings in the 1997 period is
primarily  attributable to an increase in net interest income of $743,000 and an
increase of $120,000 in other income, which were partially offset by an increase
in the  provision  for  losses on loans of  $68,000,  an  increase  in  general,
administrative  and other expense of $418,000,  and an increase in the provision
for federal income taxes of $170,000.

Net Interest Income

Total interest  income for the three months ended June 30, 1997 amounted to $2.6
million,  an increase of $1.1 million,  or 76.1%, over the comparable quarter in
1996,  reflecting  the  effects  of growth in  average  interest-earning  assets
outstanding, coupled with an increase in the yield year-to-year. Interest income
on loans and  mortgage-backed  securities  totaled  $2.5  million  for the three
months  ended June 30, 1997,  an increase of $1.2  million,  or 93.1%,  over the
comparable 1996 quarter. The increase resulted primarily from the $61.0 million,
or 94.1%,  increase in the average balance  outstanding  year-to-year.  Interest
income on investments and  interest-earning  deposits  decreased by $59,000,  or
28.5%,  due to a decrease in the average  balances of $1.3 million  which was an
approximate 72 basis point decrease in yield over the comparable 1996 period.

Interest expense on deposits increased by $364,000, or 43.5%, to a total of $1.2
million for the quarter  ended June 30, 1997,  due  primarily to a $40.4 million
increase in the average  balance of deposits  outstanding.  Interest  expense on
borrowings totaled $30,000 for the three months ended June 30, 1997, an increase
of  $22,000,  or  275.0%,  over the  comparable  quarter in 1996.  The  increase
resulted   primarily  from  a  $2.3  million  increase  in  average   borrowings
outstanding year to year.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income increased by $743,000, or 116.5%, for the three months ended
June 30, 1997, as compared to the comparable  quarter in 1996. The interest rate
spread amounted to 3.85% for the 1997 quarter,  compared to 3.36% in 1996, while
the net interest margin totaled 4.16% in the 1997 quarter,  compared to 3.31% in
1996.

Provision for Losses on Loans

Provision  for losses on loans  increased  by $68,000 over the  comparable  1996
quarter to a total of $74,000.  The current period provision  generally reflects
the growth in non-residential real estate and commercial loans.

                                       15



<PAGE>



                              River Valley Bancorp


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

        For the three and six month periods ended June 30, 1997 and 1996


Comparison of Results of Operations for the Three Months Ended June 30, 1997 
  and 1996 (continued)

Other Income

Other income increased by $120,000,  or 129.0%,  for the three months ended June
30, 1997,  as compared to the same period in 1996,  due primarily to an increase
of $18,000 on the gain on sale of loans  coupled  with a  $145,000  increase  in
service fees, charges,  and other operating income,  which were partially offset
by decline of $44,000,  in insurance  commissions  year to year.  The decline in
insurance  commissions  resulted  from the  Association's  sale of its insurance
subsidiary during the last quarter of 1996.

General, Administrative and Other Expense

General,  administrative  and other  expense  increased by  $418,000,  or 75.5%,
during the three  months  ended June 30,  1997,  compared  to the same period in
1996. This increase resulted  primarily from a $223,000,  or 74.8%,  increase in
employee compensation and benefits, a $66,000, or 122.2%,  increase in occupancy
and equipment and a $166,000,  or 195.3%,  increase in other operating  expense,
which were partially offset by a $36,000, or 83.7%,  decrease in federal deposit
insurance  premiums.  The increase in other operating expense reflects increases
in professional fees and other costs associated with the reporting  requirements
of a public stock company.

Income Taxes

The provision for income taxes increased by $170,000,  or 314.8%,  for the three
months  ended  June 30,  1997,  as  compared  to the same  period in 1996.  This
increase  resulted  primarily  from an  increase in net  earnings  before tax of
$377,000, or 220.5%. The effective tax rates amounted to 40.9% and 31.6% for the
three months ended June 30, 1997 and 1996, respectively.

















                                       16



<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

         On June 23, 1997, River Valley Bancorp held its Annual Meeting
         of  Stockholders.   Three  directors  were  elected  to  terms
         expiring in 1998 by the following votes:
             Jonnie L. Davis       For:  1,050,225           Withheld:  13,464
             Cecil L. Dorten       For:  1,052,284           Withheld:  11,405
             Earl W. Johann        For:  1,053,409           Withheld:  10,280

         Two directors were elected to terms expiring in 1999 by the following
          votes:
             Michael J. Hensley    For:  1,053,359           Withheld:  10,330
             Fred W. Koehler       For:  1,052,909           Withheld:  10,780

         Two directors were elected to terms expiring in 2000 by the following
         votes:
             Robert W. Anger       For:  1,053,359           Withheld:  10,330
             James E. Fritz        For:  1,052,909           Withheld:  10,780

         Two other  matters  were  submitted to the  stockholders,  for which
         the following votes were cast:

         1) Approval and ratification of River Valley Bancorp Stock Option Plan.
               For:  780,138      Against:  24,744            Abstain:  15,170

         2) Approval and ratification of River Valley Bancorp Recognition and
            Retention Plan and Trust.
               For:  768,913      Against:  36,069            Abstain:  15,070

ITEM 5.  Other Information

                  None

ITEM 6.  Exhibits and Reports on Form 8-K

           Reports on Form 8-K:       None

           Exhibit 27:                Financial Data Schedule for the six month
                                      period ended June 30, 1997





                                       17



<PAGE>





                                   SIGNATURES


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





Date:   August 12, 1997                           By: /s/James E. Fritz
     ---------------------                            -----------------
                                                      James E. Fritz
                                                      CEO/President



Date:   August 12, 1997                           By: /s/J. Wayne Deveary
     ----------------------                           -------------------
                                                       J. Wayne Deveary
                                                       Chief Financial Officer





































                                       18