Exhibit 99.1




                River Valley Bancorp Announces Quarterly Dividend
                  and Application to Establish a Branch Office



For Immediate Release
Tuesday, September 21, 2004


Contact: Matthew P. Forrester - President, CEO
         River Valley Bancorp
         (812) 273-4949



Madison,  Indiana - River Valley Bancorp  (NASDAQ Small Cap Symbol  "RIVR"),  an
Indiana  corporation  (the  "Corporation")  and holding company for River Valley
Financial  Bank,  based in Madison,  Indiana  announced  today that River Valley
Bancorp has declared a cash  dividend of $0.18 per share of its Common Stock for
the quarter ending  September 30, 2004. The dividend is payable October 15, 2004
to the holders of record on September  30, 2004.  This dividend  represents  the
thirtieth consecutive dividend paid by the Corporation.

In other news, the Corporation's wholly owned subsidiary has made application to
its regulator for the establishment of a branch office in Sellersburg,  Indiana.
It is  anticipated  that the  facility  located  along SR 311,  better  known as
Charlestown Road, would be operational in the second quarter of 2005.

River Valley  Bancorp/River  Valley Financial Bank is based in Madison,  Indiana
and has six locations in the Madison, Hanover, and Charlestown,  Indiana area. A
seventh office is located in Carrollton, KY.