|                                |
|-------------------------------------|
|  2009 ANNUAL      REPORT  |

----

|   | A Message from the      Board of Directors                                                        | 1  |
|--------|-------------------------------------------------------------------------------------------------------------|----|
|   | Selected      Consolidated Financial Information                                                  | 2  |
|   | Management's      Discussion and Analysis of Financial Condition and Results of      Operations   | 4  |
|   | Consolidated      Financial Statements                                                            | 34 |
|   | Stockholder      Information                                                                           | 86 |
|   | Corporate      Information                                                                             | 88 |

----

| /s/ Richard      McHugh                                | /s/      Tim      Cruciani                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Richard      McHugh                                                                                                                                                                 | Tim      Cruciani                                                                                                                                                                                                                            |
| Chairman                                                                                                                                                        | President                                                                                                                                                                                                                                    |

----

|                                    |   | September      30,  |    |
|-----------------------------------------|--------|---------------------|---------|
|                                    |   | 2009                |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                    |   | (In      Thousands) |    |
| Selected Financial Condition      Data: |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                       |   | $                   | 575,406 |   |   | $ | 480,036 |   |   | $ | 386,113 |   |   | $ | 283,990 |   |   | $ | 245,707 |   |
| Loans      receivable, net              |   |                | 440,545 |   |   |   | 368,518 |   |   |   | 320,027 |   |   |   | 258,467 |   |   |   | 217,931 |   |
| Other      interest-bearing deposits    |   |                | 2,458   |   |   |   | 371 |   |   |   | 371 |   |   |   | 959 |   |   |   | 1,444 |   |
| Securities      available for sale      |   |                | 56,215  |   |   |   | 61,776 |   |   |   | 39,592 |   |   |   | 782 |   |   |   | 2,088 |   |
| Deposits                                |   |                | 409,311 |   |   |   | 297,243 |   |   |   | 207,734 |   |   |   | 186,711 |   |   |   | 177,469 |   |
| Total      borrowings                   |   |                | 106,805 |   |   |   | 110,245 |   |   |   | 96,446 |   |   |   | 61,200 |   |   |   | 36,200 |   |
| Stockholders'      equity(1)            |   |                | 55,365  |   |   |   | 68,476 |   |   |   | 78,149 |   |   |   | 30,082 |   |   |   | 29,553 |   |

|                                                |   | Year      Ended September 30, |   |
|-----------------------------------------------------|--------|-------------------------------|--------|
|                                                |   | 2009                          |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                |   | (In      Thousands)           |   |
| Selected Operations Data:                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      interest income                          |   | $                             | 30,940 |   |   | $ | 26,734 |   |   | $ | 19,346 |   |   | $ | 15,311 |   |   | $ | 11,926 |   |
| Total      interest expense                         |   |                          | 14,688 |   |   |   | 14,139 |   |   |   | 8,889 |   |   |   | 7,221 |   |   |   | 3,992 |   |
| Net      interest income                            |   |                          | 16,252 |   |   |   | 12,595 |   |   |   | 10,457 |   |   |   | 8,090 |   |   |   | 7,934 |   |
| Provision      for loan losses                      |   |                          | 1,369  |   |   |   | 721 |   |   |   | 470 |   |   |   | 251 |   |   |   | 414 |   |
| Net      interest income after provision for loan   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| losses                                              |   |                          | 14,883 |   |   |   | 11,874 |   |   |   | 9,987 |   |   |   | 7,839 |   |   |   | 7,520 |   |
| Fees      and service charges                       |   |                          | (1,640 | ) |   |   | 1,352 |   |   |   | 1,262 |   |   |   | 1,243 |   |   |   | 1,160 |   |
| Gain      (Loss) on sales of loans, mortgage-backed |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities      and investment securities           |   |                          | (7,236 | )  |   |   | --- |   |   |   | -- |   |   |   | 27 |   |   |   | --- |   |
| Other      non-interest income                      |   |                          | 366    |   |   |   | 357 |   |   |   | 464 |   |   |   | 387 |   |   |   | 861 |   |
| Total      non-interest income (loss)               |   |                          | (5,230 | ) |   |   | 1,709 |   |   |   | 1,726 |   |   |   | 1,657 |   |   |   | 2,021 |   |
| Total      non-interest expense                     |   |                          | 14,925 |   |   |   | 11,101 |   |   |   | 10,522 |   |   |   | 8,741 |   |   |   | 7,806 |   |
| Income      (loss) before taxes                     |   |                          | (5,272 | ) |   |   | 2,482 |   |   |   | 1,191 |   |   |   | 755 |   |   |   | 1,735 |   |
| Income      tax provision (benefit)                 |   |                          | (2,089 | ) |   |   | 1,008 |   |   |   | 448 |   |   |   | 309 |   |   |   | 684 |   |
| Net      income (loss)                              |   | $                             | (3,183 | ) |   | $ | 1,474 |   |   | $ | 743 |   |   | $ | 446 |   |   | $ | 1,051 |   |
| Basic      and diluted earnings per share           |   | $                             | (0.59  | ) |   | $ | 0.24 |   |   | $ | 0.11 |   |   | $ | 0.06 |   |   | $ | 0.18 |   |

----

|                                                                          |   | September      30, |   |
|-------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                          |   | 2009               |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Performance      Ratios                                                       |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on assets (ratio of net income (loss) to average total    assets) |   |               | (0.60  | %) |   |   | 0.34 | % |   |   | 0.22 | % |   |   | 0.17 | % |   |   | 0.56 | % |
| Return      on equity (ratio of net income (loss) to average                  |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equity)                                                                       |   |               | (5.18  | %) |   |   | 2.00 | % |   |   | 1.09 | % |   |   | 1.50 | % |   |   | 4.87 |   |
| Interest      rate spread information                                         |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      during period                                                    |   |               | 2.98   | % |   |   | 2.44 | % |   |   | 3.07 | % |   |   | 3.28 | % |   |   | 4.28 | % |
| End      of period                                                            |   |               | 3.53   | % |   |   | 3.31 | % |   |   | 3.05 | % |   |   | 3.11 | % |   |   | 3.92 | % |
| Net      interest margin                                                      |   |               | 3.28   | % |   |   | 3.02 | % |   |   | 3.77 | % |   |   | 3.54 | % |   |   | 4.19 | % |
| Ratio      of operating expense to average total assets                       |   |               | 2.83   | % |   |   | 2.56 | % |   |   | 3.14 | % |   |   | 3.30 | % |   |   | 4.12 | % |
| Ratio      of average interest-bearing assets to                              |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| average      interest-bearing liabilities                                     |   |               | 1.10   | % |   |   | 1.17 | % |   |   | 1.24 | % |   |   | 1.09 | % |   |   | 1.11 | % |
|                                                                |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Quality      Ratios                                                           |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing      assets to total assets at end                             |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of      period                                                                |   |               | 1.12   | % |   |   | 0.68 | % |   |   | 0.43 | % |   |   | 0.63 | % |   |   | 0.29 | % |
| Allowance      for loan losses to non-performing                              |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| loans                                                                         |   |               | 33.25  | % |   |   | 36.62 | % |   |   | 60.92 | % |   |   | 60.07 | % |   |   | 118.26 | % |
| Allowance      for loan losses to net loans                                   |   |               | 0.44   | % |   |   | 0.32 | % |   |   | 0.29 | % |   |   | 0.32 | % |   |   | 0.37 | % |
|                                                                |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      Ratios                                                           |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      to total assets at end of period                                  |   |               | 9.62   | % |   |   | 14.26 | % |   |   | 20.24 | % |   |   | 10.59 | % |   |   | 12.03 | % |
| Average      equity to average assets                                         |   |               | 11.82  | % |   |   | 17.04 | % |   |   | 21.42 | % |   |   | 11.26 | % |   |   | 11.40 | % |
|                                                                          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data                                                               |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of full-service offices                                           |   |               | 26     |   |   |   | 18 |   |   |   | 12 |   |   |   | 12 |   |   |   | 12 |   |

----

----

----

|  ● |   | An initiative with      management to radically increase operational efficiency, reduce      expenditures and enhance revenues from operation;                                                            |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  ● |   | An      analysis of all vendor relationships and contracts with a view to      eliminating all but the essential ones and either changing vendors or      renegotiating terms with remaining vendors; and |
|  ● |   | An      evaluation of personnel policies, travel and entertainment policies,      salary and benefit plans, and management performance and      succession.                                               |

----

----

|  ● |   | A 78% increase in      non-performing loans during fiscal 2009.  Loans classified as      non-performing form the basis for the specific component of the allowance      for loan losses.                                            |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                           |
|  ● |   | An uptick in the      historical loss experience for consumer loans during fiscal 2009,      which  was greater than the modest decrease in real estate loan      historical loss rate during fiscal 2009.                           |
|          |   |                                                                                                                                                                                                                                           |
|  ● |   | An      increase in the size of the loan portfolio in fiscal 2009 affected the      general component of the allowance for loan losses.  The      increase in performing  loans during fiscal 2009 was $70.5      million. |

----

----

----

----

----

|                                                        |   | Year      EndedSeptember      30, |   |
|-------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                        |   | 2009                              |   |   | 2008 |   |
| Balance      at Beginning                                   |   | $                                 | 1,192  |   |   | $ | 926 |   |
| Provisions Charged to Operating Expense |   |                              | 1,369  |   |   |   | 721 |   |
| Loans Charged Off                                 |   |                              | (673   | ) |   |   | (492 | ) |
| Recoveries on Loans                               |   |                              | 37     |   |   |   | 37 |   |
| Balance at End                                    |   | $                                 | 1,925  |   |   | $ | 1,192 |   |

----

| September 30,      2009        |   | Amortized Cost |   |   | Fair Value |   |
|-------------------------------------------------------------------|--------|----------------|--------|--------|------------|--------|
|                                                              |   |           |   |   |       |   |
| Residential Agency      MBS                   |   | $              | 19,535 |   |       | $      | 19,698 |   |
| Residential      Non-agency MBS                                   |   |           | 46,772 |   |       |   | 36,517 |   |
|                                                              |   | $              | 66,307 |   |       | $      | 56,215 |   |

|   September      30, 2008  |   | Amortized Cost |         |   | Fair Value |   |
|---------------------------------|--------|----------------|--------------|--------|------------|--------|
|                            |   |           |         |   |       |   |
| Residential Agency      MBS     |   | $              | 541          |   |       | $      | 543 |   |
| Residential      Non-agency MBS |   |           |  65,242 |   |       |   |  61,233 |   |
|                            |   | $              | 65,783       |   |       | $      | 61,776 |   |

|  September 30,      2009    |   | Amortized Cost |   |   | Fair Value |   |
|-------------------------------------------------|--------|----------------|--------|--------|------------|--------|
|                                            |   |           |   |   |       |   |
|  Agency           |   | $              | 19,535 |   |       | $      | 19,698 |   |
|  AAA                        |   |           | 10,382 |   |       |   | 9,436 |   |
|  A                     |   |           | 4,642  |   |       |   | 4,013 |   |
|  BBB                        |   |           | 4,781  |   |       |   | 3,538 |   |
|  Below      investment grade     |   |           | 26,967 |   |       |   | 19,530 |   |
|                                            |   | $              | 66,307 |   |       | $      | 56,215 |   |

----

|  September 30,      2008    |   | Amortized Cost |        |   | Fair Value |   |
|-------------------------------------------------|--------|----------------|-------------|--------|------------|--------|
|  Agency                                    |   | $              | 541         |   |       | $      | 543 |   |
|  AAA                                  |   |           | 54,676      |   |       |   | 52,473 |   |
|  AA                         |   |           | 4,529       |   |       |   | 4,276 |   |
|  A                |   |           | 2,246       |   |       |   | 1,808 |   |
|  Below      Investment Grade     |   |           |  3,791 |   |       |   | 2,676 |   |
|                                            |   | $              | 65,783      |   |       | $      | 61,776 |   |

|  ● |   | Obtaining individual      loan level data from servicers and trustees directly, and deriving      assumptions regarding the global frequency of foreclosure, loss severity      and conditional prepayment rate (both the entire pool and the loan group      pertaining to the bond).                                                                                                                                                                          |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  ● |   | Projecting cash      flows based on these assumptions and stressing the cash flows under      different time periods and requirements of the capital structure of the      bond.                                                                                                                                                                                                                                                                                |
|  ● |   | Identifying various      price/yield scenarios based on the bank’s Book Value price, a      held-to-maturity price (for potential credit loss), and specific yields      deemed most appropriate for a trade that would occur in a free market      (Fair Value).  Discount rates were determined based on the      volatility and complexity of the security and the yields demanded by      buyers in the market at the time of thevaluation. |

----

| Beginning balance of      the amount of OTTI related to credit losses             |   |   | 0     |   |
|----------------------------------------------------------------------------------------|--------|--------|-------|--------|
| Credit portion of OTTI on securities      for which OTTI was not previously Recognized |   |   | 7,236 |   |
| Ending balance of the      amount of OTTI related to credit losses                     |   | $      | 7,236 |   |

----

|  ● |   | Significance and      length of the decline in net assets compared to the capital    stock; |
|---------------|--------|---------------------------------------------------------------------------------------------|
|          |   |                                                                                        |
|  ● |   | Commitments by the      FHLB to make payments required by law or regulation;                |
|          |   |                                                                                        |
|  ● |   | Impact of      legislative and regulatory changes; and                                      |
|          |   |                                                                                        |
|  ● |   | Liquidity position      of the FHLB.                                                        |

----

|                            |   | Amount($Mil) |   |
|---------------------------------|--------|--------------|--------|
| Comparable      Transactions    |   | $            | 55     |   |
| Control      Premium            |   |         | 41     |   |
| Discounted      Cash Flow (DCF) |   |         | 79     |   |
| Fair      Value                 |   | $            | 56     |   |

|  ● |   | Reviewing the      profitability and operating cash flow of the Bank in October and November      2009.                                                                                                 |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                    |
|  ● |   | Reviewing the 2010      budget.                                                                                                                                                                         |
|          |   |                                                                                                                                                                                                    |
|  ● |   | Updating the      financial data included in the August 31, 2009 Valuation  Report.                                                                                                                     |
|          |   |                                                                                                                                                                                                    |
|  ● |   | Inquiring of the      independent valuation firm as to possible changes to the valuation due to      market changes, a declining market price for the company’s stock and other      assumptions. |

|  ● |   | The Bank continued      to be profitable in the first quarter of fiscal 2010 with reported      year-to-date earnings of $360,000.  During this period, the      provision for loan losses increased in response to an increase in      Non-Performing Loans (NPL's); allowance coverage of NPL’s continued to be      in excess of 30%. |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                     |
|  ● |   | The company is      expected to be profitable based on the budget for fiscal year    2010.                                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                     |
|  ● |   | The updated summary      of financial ratios and other factors included in the August 30, 2009      independent valuation did not changesignificantly.                                                                                                                                                                                                   |

----

|  ● |   | A $48.8 million      increase in loans receivable, of which $9.1 million was originated through      our new in-store branches;                                                               |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                          |
|  ● |   | $17.7 million in      assets acquired by Citizens Community Federal through the previously      disclosed acquisition from ANB of three in-store branches;and                                 |
|          |   |                                                                                                                                                                                          |
|  ● |   | A $22.2 million      increase in the value of our non-agency residential MBS portfolio as a      result of additional non-agency residential MBS purchases occurring during      fiscal 2008. |

----

|                                                        |   | Year      EndedSeptember      30, |   |
|-------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                        |   | 2008                              |   |   | 2007 |   |
| Balance      at Beginning                                   |   | $                                 | 926    |   |   | $ | 835 |   |
| Provisions Charged to Operating Expense |   |                              | 721    |   |   |   | 470 |   |
| Loans Charged Off                                 |   |                              | (492   | ) |   |   | (413 | ) |
| Recoveries on Loans                               |   |                              | 37     |   |   |   | 34 |   |
| Balance at End                                    |   | $                                 | 1,192  |   |   | $ | 926 |   |

----

|                                                                                                  |   | Year      ended September 30, |    |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                                  |   | 2009                          |    |   | 2008 |   |   | 2007 |   |
|                                                                                                  |   | AverageOutstandingBalance     |    |   | InterestEarned/Paid |   |   | Yield/Rate |   |   | AverageOutstandingBalance |   |   | InterestEarned/Paid |   |   | Yield/Rate |   |   | AverageOutstandingBalance |   |   | InterestEarned/Paid |   |   | Yield/Rate |   |
|                                                                                                  |   | (In      Thousands)           |    |
| Interest-Earning Assets:                                                                         |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Cash equivalents                                                         |   | $                             | 23,769  |   |   | $ | 27 |   |   |   | 0.11 | % |   | $ | 13,445 |   |   | $ | 277 |   |   |   | 2.06 | % |   | $ | 5,953 |   |   | $ | 167 |   |   |   | 2.81 | % |
|     Loans receivable(1)                                                      |   |                          | 404,335 |   |   |   | 27,007 |   |   |   | 6.68 |   |   |   | 344,654 |   |   |   | 23,129 |   |   |   | 6.71 |   |   |   | 285,668 |   |   |   | 19,713 |   |   |   | 6.90 |   |
|     Other interest-bearing deposits                                     |   |                          | 3,894   |   |   |   | 119 |   |   |   | 3.06 |   |   |   | 371 |   |   |   | 7 |   |   |   | 1.89 |   |   |   | 567 |   |   |   | 30 |   |   |   | 5.29 |   |
|     Securities available for sale                                  |   |                          | 57,990  |   |   |   | 3,787 |   |   |   | 6.53 |   |   |   | 53,417 |   |   |   | 3,320 |   |   |   | 6.22 |   |   |   | 9,487 |   |   |   | 379 |   |   |   | 3.99 |   |
|     Federal Home Loan Bank stock                              |   |                          | 5,865   |   |   |   | --- |   |   |   | --- |   |   |   | 5,420 |   |   |   | --- |   |   |   | --- |   |   |   | 3,115 |   |   |   | 83 |   |   |   | 2.66 |   |
|         Total interest-earning assets               |   | $                             | 495,852 |   |   |   | 30,940 |   |   |   | 6.24 | % |   | $ | 417,307 |   |   |   | 26,733 |   |   |   | 6.41 |   |   | $ | 304,790 |   |   |   | 20,372 |   |   |   | 6.68 |   |
|                                                                                                  |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities:                                                                    |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Savings accounts                                                         |   | $                             | 23,162  |   |   |   | 192 |   |   |   | 0.83 |   |   | $ | 21,091 |   |   |   | 172 |   |   |   | 0.82 |   |   | $ | 22,858 |   |   |   | 218 |   |   |   | 0.95 |   |
|     Demand accounts(2)                                                       |   |                          | 19,805  |   |   |   | 28 |   |   |   | 0.14 |   |   |   | 18,711 |   |   |   | 26 |   |   |   | 0.14 |   |   |   | 19,283 |   |   |   | 28 |   |   |   | 0.15 |   |
|     Money market accounts                                               |   |                          | 81,922  |   |   |   | 1,948 |   |   |   | 2.38 |   |   |   | 31,711 |   |   |   | 717 |   |   |   | 2.26 |   |   |   | 24,323 |   |   |   | 588 |   |   |   | 2.42 |   |
|     CDs                                                                           |   |                          | 205,291 |   |   |   | 7,446 |   |   |   | 3.63 |   |   |   | 166,758 |   |   |   | 7,716 |   |   |   | 4.63 |   |   |   | 120,148 |   |   |   | 5,707 |   |   |   | 4.75 |   |
|     IRAs                                                                          |   |                          | 15,487  |   |   |   | 544 |   |   |   | 3.51 |   |   |   | 12,016 |   |   |   | 507 |   |   |   | 4.22 |   |   |   | 10,876 |   |   |   | 453 |   |   |   | 4.17 |   |
|     Federal Home Loan Bank advances                           |   |                          | 105,169 |   |   |   | 4,530 |   |   |   | 4.31 |   |   |   | 105,699 |   |   |   | 5,001 |   |   |   | 4.73 |   |   |   | 48,643 |   |   |   | 1,895 |   |   |   | 3.90 |   |
|         Total interest-bearing liabilities          |   | $                             | 450,835 |   |   |   | 14,688 |   |   |   | 3.26 |   |   | $ | 355,987 |   |   |   | 14,139 |   |   |   | 3.97 |   |   | $ | 246,130 |   |   |   | 8,889 |   |   |   | 3.61 |   |
|                                                                                                  |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                         |   |                          |    |   |   |   | 16,252 |   |   |   |   |   |   |   |   |   |   | $ | 12,594 |   |   |   |   |   |   |   |   |   |   | $ | 11,483 |   |   |   |   |   |
| Net interest rate spread                                                               |   |                          |    |   |   |   |   |   |   |   | 2.98 | % |   |   |   |   |   |   |   |   |   |   | 2.43 |   |   |   |   |   |   |   |   |   |   |   | 3.07 | % |
| Net interest margin(3)                                                                      |   |                          |    |   |   |   |   |   |   |   | 3.28 | % |   |   |   |   |   |   |   |   |   |   | 3.02 | % |   |   |   |   |   |   |   |   |   |   | 3.77 | % |
| Average interest-earning assets to average interest-bearing liabilities |   |                          |    |   |   |   |   |   |   |   | 1.10 | % |   |   |   |   |   |   | 1.17 | x |   |   |   |   |   |   |   |   |   |   | 1.24 | x |   |   |   |   |

| (1) | Calculated      net of loan fees of $(1,454,000) in 2009, $(1,492,000) in 2008 and      $(1,026,000) in 2007, loan discounts, loans in process and allowance for      losses on loans.            |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Includes      $14.9 million,  $14.4 million and $13.8 million of      non-interest-bearing demand deposits during the years ended September 30,      2009, 2008 and 2007, respectively. |
| (3) | Net      interest income divided by interest-earning  assets.                                                                                                                                     |

----

|                                                                                         |   | Year      Ended September 30,2009      vs. 2008 |   |    | Year      Ended September 30,2008      vs. 2007 |   |
|----------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|---------|-------------------------------------------------|--------|
|                                                                                         |   | Increase      (Decrease)Due      to             |   |    | TotalIncrease                                   |   |   | Increase      (Decrease)Due      to |   |   | TotalIncrease |   |
|                                                                                         |   | Volume                                          |   |    | Rate                                            |   |   | (Decrease) |   |   | Volume |   |   | Rate |   |   | (Decrease) |   |
|                                                                                         |   | (In      Thousands)                             |   |
| Interest-Earning Assets:                                                                |   |                                            |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Loans receivable(1)                                             |   | $                                               | 3,987  |    |                                            | $      | (101 | ) |   | $ | 3,878 |   |   | $ | 3,972 |   |   | $ | (556 | ) |   | $ | 3,416 |   |
|     Other                                                                |   |                                            | 524    |    |                                            |   | (195 | )  |   |   | 329 |   |   |   | 2,812 |   |   |   | 133 |   |   |   | 2,945 |   |
|                                                                                         |   |                                            |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total interest-earning      assets      |   |                                            | 4,511  |    |                                            |   | (304 | ) |   |   | 4,207 |   |   | $ | 6,784 |   |   | $ | (423 | ) |   | $ | 6,361 |   |
|                                                                                         |   |                                            |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities:                                                           |   |                                            |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Savings accounts                                                |   |                                            | 17     |    |                                            |   | 3 |   |   |   | 20 |   |   | $ | (18 | ) |   |   | (28 | )  |   |   | (46 | )  |
|     Demand accounts                                                 |   |                                            | 2      |    |                                            |   | 0 |   |   |   | 2 |   |   |   | (1 | ) |   |   | (1 | )  |   |   | (2 | )  |
|     Money market account                                       |   |                                            | 1,192  |    |                                            |   | 39 |   |   |   | 1,231 |   |   |   | 169 |   |   |   | (40 | ) |   |   | 129 |   |
|     IRA accounts                                                    |   |                                            | 131    |    |                                            |   | (94 | ) |   |   | 37 |   |   |   | 48 |   |   |   | 6 |   |   |   | 54 |   |
|     Certificates of deposit                                    |   |                                            | 1,584  |    |                                            |   | (1,854 | ) |   |   | (270 | )  |   |   | 2,160 |   |   |   | (151 | ) |   |   | 2,009 |   |
|     Federal      Home Loan Bank advances                            |   |                                            | (25    | )  |                                            |   | (446 | )  |   |   | (471 | )  |   |   | 2,626 |   |   |   | 480 |   |   |   | 3,106 |   |
|                                                                                         |   |                                            |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total interest-bearing liabilities |   | $                                               | 2,901  |    |                                            | $      | ( 2,352 | ) |   |   | 549 |   |   | $ | 4,984 |   |   | $ | 266 |   |   |   | 5,250 |   |
|                                                                                         |   |                                            |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                |   |                                            |   |    |                                            |   |   |   |   | $ | 3,658 |   |   |   |   |   |   |   |   |   |   | $ | 1,111 |   |

| (1)  | Calculated      net of loan fees of $(1,454,000) in 2009 and $(1,492,000) in      2008. |
|-----------|-----------------------------------------------------------------------------------------|

----

----

|   | Level      1:   | Quoted      prices for identical assets in active markets that an entity has the      ability to access as of the measurementdate. |
|--------|---------------------------|------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      2:  | Significant      other observable inputs other than Level 1 prices such as quoted prices      for similar assets or other inputs that are observable or can be      corroborated by observable marketdata. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      3: |  Significant      unobservable inputs that reflect an entity’s own assumptions about the      assumptions that market participants would use in pricing an      asset. |
|--------|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   | Fair      Value Measurements Using |   |   |         |   |
|----------------------------------------------|--------|------------------------------------|--------|--------|--------------|--------|
|                                         |   | Level      1                       |   |   | Level      2 |   |   | Level      3 |   |   | Total      Fair Value |   |
| 2009                                         |   | (In      Thousands)                |   |   |         |   |
| Available      for sale securities |   | $                                  | 0      |   |         | $      | 19,698 |   |   | $ | 36,517 |   |   | $ | 56,215 |   |

|                                    |   | Fair      Value Measurements Using |   |   |         |   |
|-----------------------------------------|--------|------------------------------------|--------|--------|--------------|--------|
|                                    |   | Level      1                       |   |   | Level      2 |   |   | Level      3 |   |   | Total      Fair Value |   |
| 2008                                    |   | (In      Thousands)                |   |   |         |   |
| Available      for sale securities |   | $                                  | 0      |   |         | $      | 543 |   |   | $ | 61,233 |   |   | $ | 61,776 |   |

----

|                                                   |   | Total      Fair Value |    |
|--------------------------------------------------------|--------|-----------------------|---------|
| 2009                                                   |   | (In      Thousands)   |    |
| Beginning      Balance                                 |   | $                     | 61,233  |   |
| Total      gains or losses (realized/unrealized): |   |                  |    |   |
| Included      in earnings                              |   |                  | (7,236  | ) |
| Included      in other comprehensive income            |   |                  | (6,251  | ) |
| Purchases,      sales, issuances and settlements, net  |   |                  |    |   |
| Transfers      in and/or out of Level 3                |   |                  | (11,229 | ) |
| Ending      Balance                                    |   | $                     | 36,517  |   |

|                                                                                                                                                              |   | Total      Fair Value |          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|---------------|
| 2008                                                                                                                                                              |   | (In      Thousands)   |          |
| Beginning      Balance                                                                                                                                            |   | $                     | 38,937        |   |
| Total      gains or      losses                  (realized/unrealized): |   |                  |          |   |
| Included      in earnings                                                                                                                                         |   |                  | (0            | ) |
| Included      in other comprehensive income                                                                                                                       |   |                  | (4,159        | ) |
| Purchases,      sales, issuances and settlements, net                                                                                                             |   |                  |          |   |
| Transfers      in and/or out of Level 3                                                                                                                           |   |                  |   26,455 |   |
| Ending      Balance                                                                                                                                               |   | $                     | 61,233        |   |

----

----

----

|  ● |   | originating first      mortgage loans, with a clause allowing for payment on demand after a      stated period of time;                       |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                          |
|  ● |   | originating      shorter-term consumer loans;                                                                                                 |
|          |   |                                                                                                                                          |
|  ● |   | originating      prime-based home equity lines of credit;                                                                                     |
|          |   |                                                                                                                                          |
|  ● |   | managing our      deposits to establish stable deposit relationships;                                                                         |
|          |   |                                                                                                                                          |
|  ● |   | using FHLB advances      to align maturities and repricing terms; and                                                                         |
|          |   |                                                                                                                                          |
|  ● |   | attempting to limit      the percentage of long-term, fixed-rate loans in our portfolio which do      not contain a payable-on-demand clause. |

----

| Change      in Interest Rates inBasis      Points ("bp")(Rate      Shock in Rates)(1) |                        | Net      Portfolio Value |   |   | Net      Portfolio Value as % ofPresent      Value of Assets |   |
|---------------------------------------------------------------------------------------|-----------------------------|--------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                                                                  |                        | Amount                   |   |   | Change                                                       |   |   | Change |   |   | NPV      Ratio |   |   | Change |   |
|                                                                                  | (Dollars      in thousands) |                     |   |   |
|                                                                                  |                        |                     |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |
| +300       bp                                                                    |                        | $                        | 28,763 |   |                                                         | $      | (9,270 | ) |   |   | (24 | )% |   |   | 5.21 | % |   |   | (145 | )      bp |
| +200       bp                                                                    |                        |                     | 32,039 |   |                                                         |   | (5,993 | ) |   |   | (16 | )    |   |   | 5.74 |   |   |   | (92 | )          |
| +100       bp                                                                    |                        |                     | 35,427 |   |                                                         |   | (2,606 | ) |   |   | (7 | )   |   |   | 6.27 |   |   |   | (39 | )          |
|      50      bp                                              |                        |                     | 36,839 |   |                                                         |   | (1,194 | ) |   |   | (3 | ) |   |   | 6.48 |   |   |   | (18 | ) |
|       0  bp                                   |                        |                     | 38,033 |   |                                                         |   | --- |   |   |   | --- |   |   |   | 6.66 |   |   |   | --- |   |
|     -50bp                                                         |                        |                     | 30,093 |   |                                                         |   | 1,060 |   |   |   | 3 |   |   |   | 6.81 |   |   |   | 15 |   |
| -100       bp                                                                    |                        |                     | 39,863 |   |                                                         |   | 1,831 |   |   |   | 5 |   |   |   | 6.92 |   |   |   | 26 |   |
|                                                                                  |                        |                     |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |                        |                     |   |

|   | (1)     Assumes      an instantaneous uniform change in interest rates at all      maturities. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| Change      in Interest Rates inBasis      Points ("bp")(Rate      Shock in Rates)(1) |                        | Net      Portfolio Value |   |   | Net      Portfolio Value as % ofPresent      Value of Assets |   |
|---------------------------------------------------------------------------------------|-----------------------------|--------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                                                                  |                        | Amount                   |   |   | Change                                                       |   |   | Change |   |   | NPV      Ratio |   |   | Change |   |
|                                                                                  | (Dollars      in thousands) |                     |   |   |
|                                                                                  |                        |                     |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |
| +300       bp                                                                    |                        | $                        | 27,546 |   |                                                         | $      | (10,206 | ) |   |   | (27 | )% |   |   | 6.10 | % |   |   | (190 | )      bp |
| +200       bp                                                                    |                        |                     | 31,438 |   |                                                         |   | (6,314 | ) |   |   | (17 | )    |   |   | 6.86 |   |   |   | (114 | )          |
| +100       bp                                                                    |                        |                     | 34,922 |   |                                                         |   | (2,830 | ) |   |   | (7 | )   |   |   | 7.50 |   |   |   | (50 | )          |
|    +50      bp                                                         |                        |                     | 36,436 |   |                                                         |   | (1,317 | ) |   |   | (3 | ) |   |   | 7.77 | % |   |   | (23 | ) |
|       0  bp                                   |                        |                     | 37,752 |   |                                                         |   | --- |   |   |   | --- |   |   |   | 8.00 |   |   |   | --- |   |
|    -50      bp                                                         |                        |                     | 38,851 |   |                                                         |   | 1,098 |   |   |   | 3 |   |   |   | 8.18 | % |   |   | 18 |   |
| -100       bp                                                                    |                        |                     | 39,669 |   |                                                         |   | 1,916 |   |   |   | 5 |   |   |   | 8.31 |   |   |   | 31 |   |
|                                                                                  |                        |                     |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | (1)     Assumes      an instantaneous uniform change in interest rates at all      maturities. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                           |   | Six Monthsor Less      |    |   | Over SixMonths toOne Year |   |    | Over Oneto ThreeYears |   |   | Over Threeto FiveYears |    |   | OverFiveYears |   |   | Total  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|------------------------------------------|--------|---------|---------------------------------|--------|--------|----------------------------------|---------|--------|---------------|--------|--------|--------|--------|
|                                                                                                                                                           |   | (Dollars in Thousands) |    |
| Real estate mortgage loans                                                                                                                      |   | $                                | 38,539  |   |                                     | $      | 32,242  |                            |   | $      | 84,819                           |    |   | $             | 43,049 |   |   | $      | 41,576 |   |   | $ | 240,225 |   |
| Consumer loans                                                                                                                                            |   |                             | 82,503  |   |                                     |   | 54,618  |                            |   |   | 57,281                           |    |   |          | 5,647  |   |   |   | 2,521 |   |   |   | 202,570 |   |
| Securities available for sale                                                                                                                   |   |                             | 5,285   |   |                                     |   | 5,416   |                            |   |   | 19,872                           |    |   |          | 13,290 |   |   |   | 22,449 |   |   |   | 66,312 |   |
| Other interest-bearing deposits                                                                                                                      |   |                             | 2,458   |   |                                     |   | --      |                            |   |   | ---                              |    |   |          | ---    |   |   |   | --- |   |   |   | 2,458 |   |
| Federal Home Loan Bank stock                                                                                                               |   |                             | ---     |   |                                     |   | ---     |                            |   |   | ---                              |    |   |          | 6,040  |   |   |   | --- |   |   |   | 6,040 |   |
| Cash equivalents                                                                                                                                          |   |                             | 43,191  |   |                                     |   | ---     |                            |   |   | ---                              |    |   |          | ---    |   |   |   | --- |   |   |   | 43,191 |   |
| Total interest-earning assets                                                                                                                        |   |                             | 171,976 |   |                                     |   | 92,276  |                            |   |   | 161,972                          |    |   |          | 68,026 |   |   |   | 66,546 |   |   |   | 560,796 |   |
|                                                                                                                                                           |   |                             |    |   |                                     |   |    |                            |   |   |                             |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                                                                                                          |   |                             | 2,639   |   |                                     |   | 2,639   |                            |   |   | 20,265                           |    |   |          | 811    |   |   |   | 33 |   |   |   | 26,387 |   |
| Demand and money market                                                                                                                         |   |                             | 36,677  |   |                                     |   | 36,677  |                            |   |   | 55,016                           |    |   |          | 13,754 |   |   |   | 24,316 |   |   |   | 166,440 |   |
| Certificates of deposit                                                                                                                              |   |                             | 84,031  |   |                                     |   | 79,471  |                            |   |   | 50,523                           |    |   |          | 2,459  |   |   |   | --- |   |   |   | 216,484 |   |
| Federal      Home Loan Bank advances                                                                                                                      |   |                             | 31,105  |   |                                     |   | 11,500  |                            |   |   | 49,800                           |    |   |          | 12,900 |   |   |   | 1,500 |   |   |   | 106,805 |   |
| Total interest-bearing liabilities                                                                                                                   |   |                             | 154,452 |   |                                     |   | 130,287 |                            |   |   | 175,604                          |    |   |          | 29,924 |   |   |   | 25,849 |   |   |   | 516,116 |   |
|                                                                                                                                                           |   |                             |    |   |                                     |   |    |                            |   |   |                             |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets less                                                                                                                    |   |                             |    |   |                                     |   |    |                            |   |   |                             |    |   |          |   |   |   |   |   |   |   |   |   |   |
| interest-bearing liabilities                                                                                                                              |   | $                                | 17,524  |   |                                     | $      | (38,011 | )                               |   | $      | (13,633                          | )  |   | $             | 38,101 |   |   | $      | 40,809 |   |   | $ | 44,790 |   |
|                                                                                                                                                           |   |                             |    |   |                                     |   |    |                            |   |   |                             |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Cumulative interest rate sensitivity gap                                                                                                   |   | $                                | 17,524  |   |                                     | $      | (20,487 | )                               |   | $      | (34,120                          | )       |   | $             | 3,981  |   |   | $      | 44,790 |   |   |   |   |   |
|                                                                                                                                                           |   |                             |    |   |                                     |   |    |                            |   |   |                             |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Cumulative      interest rate gap as a percentage      of assets at September 30, 2009                                                                         |   |                             | 3.05    | %      |                                     |   | (3.56   | )%                              |   |   | (5.93                            | )%      |   |          | 0.69   | %      |   |   | 7.78 | % |   |   |   |   |
|                                                                                                                                                           |   |                             |    |   |                                     |   |    |                            |   |   |                             |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Cumulative interest rate gap as a percentage of interest-earning assets      at September      30, 2009 |   |                             | 3.12    | %      |                                     |   | (3.65   | )%                              |   |   | (6.08                            | )%      |   |          | 0.71   | %      |   |   | 7.99 | % |   |   |   |   |

----

| ● |   | The      length of time, and extent to which, the fair value has been less than the      amortized cost.                                                                        |
|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                            |
| ● |   | Adverse      conditions specifically related to the security, industry or geographic      area.                                                                                 |
|    |   |                                                                                                                                                                            |
| ● |   | The      historical and implied volatility of the fair value of the      security.                                                                                              |
|    |   |                                                                                                                                                                            |
| ● |   | The      payment structure of the debt security and the likelihood of the issuer or      underlying borrowers being able to make payments that may increase in the      future. |
|    |   |                                                                                                                                                                            |
| ● |   | Failure      of the issuer of the security or the underlying borrowers to make      scheduled interest or principal payments.                                                   |
|    |   |                                                                                                                                                                            |
| ● |   | Any      changes to the rating of the security by a rating  agency.                                                                                                             |
|    |   |                                                                                                                                                                            |
| ● |   | Recoveries      or additional declines in fair value subsequent to the balance sheet      date.                                                                                 |

----

| ● | Inadequate      financial statement disclosures for other-than temporary securities,       income taxes, and subsequent events related to retirement plans;      and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Improper      application of GAAP related to revenue recognition on securities      classified as other-than temporarily impaired and the recording of      employee benefit expense related to terminated  employees. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● |   | We      are assessing the need for additional ongoing employee training as it      relates to the evolving financial reporting environment and new emerging      accounting issues. |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● |   | We      are implementing additional procedures within our financial close and      reporting process to analyze for accuracy and adjust all material accounts      on a timely basis. |
|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● |   | We      are evaluating our financial organization to determine the most      appropriate and effective use of our current resources and to determine if      additional resources are necessary to support the financial reporting      process. |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Citizens      Community Bancorp,Inc.      and SubsidiaryEau      Claire,      Wisconsin Consolidated      Financial Statements Years Ended September 30, 2009, 2008, and      2007 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Independent      Auditor's Report   | 36                                                             |
|-----------------------------------------------|----------------------------------------------------------------|
|                                          |                                                           |   |
|                                          | Consolidated Balance      Sheets                          | 37 |
|                                          | Consolidated      Statements of Operations                     | 38 |
|                                          | Consolidated      Statements of Change in Stockholders' Equity | 40 |
|                                          | Consolidated      Statements of Cash Flows                | 43 |
|                                          | Notes to      Consolidated Financial Statements           | 45 |

----

----

----

| Assets                                                                            |   | 2009   |    |   | 2008   |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                              |   |   |    |   |   |   |
| Cash      and cash equivalents                                                    |   | $      | 43,191  |   |   | $      | 23,666 |   |
| Interest-bearing      deposits                                                    |   |   | 2,458   |   |   |   | 371 |   |
| Securities      available for sale                                                |   |   | 56,215  |   |   |   | 61,776 |   |
| Loans      receivable - Net                                                       |   |   | 440,545 |   |   |   | 368,518 |   |
| Federal      Home Loan Bank stock - At cost                                       |   |   | 6,040   |   |   |   | 5,787 |   |
| Office      properties and equipment - Net                                        |   |   | 8,029   |   |   |   | 5,916 |   |
| Accrued      interest receivable                                                  |   |   | 2,179   |   |   |   | 1,726 |   |
| Intangible      assets                                                            |   |   | 1,148   |   |   |   | 1,481 |   |
| Goodwill                                                                          |   |   | 5,593   |   |   |   | 5,593 |   |
| Other      assets                                                                 |   |   | 10,008  |   |   |   | 5,202 |   |
|                                                                              |   |   |    |   |   |   |   |   |
| TOTAL      ASSETS                                                                 |   | $      | 575,406 |   |   | $      | 480,036 |   |
| Liabilities      and Stockholders’ Equity                                   |   |   |    |   |   |   |   |   |
|                                                                              |   |   |    |   |   |   |   |   |
| Deposits                                                                          |   | $      | 409,311 |   |   | $      | 297,243 |   |
| Borrowed      funds                                                               |   |   | 106,805 |   |   |   | 110,245 |   |
| Other      liabilities                                                            |   |   | 3,925   |   |   |   | 4,072 |   |
|                                                                              |   |   |    |   |   |   |   |   |
| Total      liabilities                                                            |   |   | 520,041 |   |   |   | 411,560 |   |
|                                                                              |   |   |    |   |   |   |   |   |
| Preferred      stock - Par value $.01:                                            |   |   |    |   |   |   |   |   |
| Authorized      - 1,000,000 shares in 2009 and 2008                               |   |   |    |   |   |   |   |   |
| Issued      and outstanding - 0 shares outstanding in 2009 and 2008               |   |   |    |   |   |   |   |   |
| Common      stock - Par value $.01:                                               |   |   |    |   |   |   |   |   |
| Authorized      - 20,000,000 shares in 2009 and 2008                              |   |   |    |   |   |   |   |   |
| Issued      and outstanding - 5,471,780 in 2009 and 6,226,995 shares in      2008 |   |   | 55      |   |   |   | 62 |   |
| Additional      paid-in capital                                                   |   |   | 56,877  |   |   |   | 62,192 |   |
| Retained      earnings                                                            |   |   | 8,221   |   |   |   | 12,550 |   |
| Unearned      ESOP shares                                                         |   |   | (3,070  | )      |   |   | (3,416 | ) |
| Unearned      compensation                                                        |   |   | (23     | )      |   |   | (126 | ) |
| Accumulated      other comprehensive loss                                         |   |   | (6,695  | )      |   |   | (2,786 | ) |
|                                                                              |   |   |    |   |   |   |   |   |
| Total      stockholders’ equity                                             |   |   | 55,365  |   |   |   | 68,476 |   |
|                                                                              |   |   |    |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                             |   | $      | 575,406 |   |   | $      | 480,036 |   |

----

----

|                                                                    |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                                    |   |   |    |   |   |   |   |   |   |
| Interest      and dividend income:                                      |   |   |    |   |   |   |   |   |   |
| Interest      and fees on loans                                         |   | $      | 27,007  |   |   | $      | 23,129 |   |   | $ | 18,687 |   |
| Interest      on investments                                            |   |   | 3,933   |   |   |   | 3,605  |   |   |   | 659 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Total      interest and dividend income                                 |   |   | 30,940  |   |   |   | 26,734 |   |   |   | 19,346 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest      expense:                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest      on deposits                                               |   |   | 10,158  |   |   |   | 9,138  |   |   |   | 6,994 |   |
| Interest      on borrowed funds                                         |   |   | 4,530   |   |   |   | 5,001  |   |   |   | 1,895 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Total      interest expense                                             |   |   | 14,688  |   |   |   | 14,139 |   |   |   | 8,889 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                |   |   | 16,252  |   |   |   | 12,595 |   |   |   | 10,457 |   |
| Provision      for loan losses                                          |   |   | 1,369   |   |   |   | 721    |   |   |   | 470 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      interest income after provision for loan losses                |   |   | 14,883  |   |   |   | 11,874 |   |   |   | 9,987 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Noninterest      income:                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Total      other-than-temporary impairment losses                       |   |   | (12,502 | )      |   |   | 0      |   |   |   | 0 |   |
| Portion      of loss recognized in other comprehensive loss (beforetax) |   |   | 5,266   |   |   |   | 0      |   |   |   | 0 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      impairment losses recognized in earnings                       |   |   | (7,236  | )      |   |   | 0      |   |   |   | 0 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Service      charges on deposit accounts                                |   |   | 1,361   |   |   |   | 1,069  |   |   |   | 980 |   |
| Insurance      commissions                                              |   |   | 355     |   |   |   | 344    |   |   |   | 450 |   |
| Loan      fees and service charges                                      |   |   | 279     |   |   |   | 283    |   |   |   | 282 |   |
| Other                                                                   |   |   | 11      |   |   |   | 13     |   |   |   | 14 |   |
|                                                                    |   |   |    |   |   |   |   |   |   |   |   |   |
| Total      noninterest income (loss)                                    |   |   | (5,230  | )      |   |   | 1,709  |   |   |   | 1,726 |   |

----

----

|                                                           |   |   |   |   |   |   |   |   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                           |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|                                                           |   |   |   |   |   |   |   |   |   |
| Noninterest      expense:                                      |   |   |   |   |   |   |   |   |   |
| Salaries      and related benefits                             |   | $      | 7,263  |   |   | $      | 5,857  |   |   | $ | 6,026 |   |
| Occupancy      - Net                                           |   |   | 2,203  |   |   |   | 1,313  |   |   |   | 1,143 |   |
| Office                                                         |   |   | 1,515  |   |   |   | 1,133  |   |   |   | 836 |   |
| Data      processing                                           |   |   | 396    |   |   |   | 359    |   |   |   | 452 |   |
| Amortization      of core deposit intangible                   |   |   | 333    |   |   |   | 307    |   |   |   | 301 |   |
| Advertising,      marketing, and public relations              |   |   | 242    |   |   |   | 148    |   |   |   | 161 |   |
| FDIC      premium assessment                                   |   |   | 962    |   |   |   | 176    |   |   |   | 91 |   |
| Professional      fees                                         |   |   | 728    |   |   |   | 589    |   |   |   | 690 |   |
| Other                                                          |   |   | 1,283  |   |   |   | 1,219  |   |   |   | 822 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      noninterest expense                                 |   |   | 14,925 |   |   |   | 11,101 |   |   |   | 10,522 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before provision (benefit) for income taxes |   |   | (5,272 | )      |   |   | 2,482  |   |   |   | 1,191 |   |
| Provision      (benefit) for income taxes                      |   |   | (2,089 | )      |   |   | 1,008  |   |   |   | 448 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                         |   | $      | (3,183 | )      |   | $      | 1,474  |   |   | $ | 743 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings (loss) per share                           |   | $      | (0.59  | )      |   | $      | 0.24   |   |   | $ | 0.11 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings (loss) per share                         |   | $      | (0.59  | )      |   | $      | 0.24   |   |   | $ | 0.11 |   |

----

----

|                                                                                         |   | Shares |      |   | CommonStock |   |   | Additional      Paid-InCapital |   |   | RetainedEarnings |   |   | UnearnedESOPShares |   |   | UnearnedCompensation |   |   | AccumulatedOtherComprehensiveLoss |   |   | TreasuryStock |   |   | Totals |   |
|----------------------------------------------------------------------------------------------|--------|--------|-----------|--------|-------------|--------|--------|--------------------------------|--------|--------|------------------|--------|--------|--------------------|--------|--------|----------------------|--------|--------|-----------------------------------|--------|--------|---------------|--------|--------|--------|--------|
|                                                                                         |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |
| Balance      - September 30, 2006                                                            |   |   | 3,747,319 |   |        | $      | 37     |                           |   | $      | 18,833           |   |   | $                  | 12,792 |   |                 | $      | (894   | )                                 |   | $      | (334          | )      |   | $      | (11    | ) |   | $ | (341 | ) |   | $ | 30,082 |   |
|                                                                                         |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment      to initially apply FASB Statement No. 158 - Net of tax                       |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   | (621   | ) |   |   |   |   |   |   | (621 | ) |
| Comprehensive      income:                                                                   |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                              |   |   |      |   |        |   |   |                           |   |   |             |   |   |               | 743    |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 743 |   |
| Pension      curtailment - Net of tax                                                        |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   | 75     |   |   |   |   |   |   |   | 75 |   |
| Amortization      of unrecognized prior service costs and net gains/losses - Net of      tax |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   | 262    |   |   |   |   |   |   |   | 262 |   |
| Net      unrealized gain on available-for-sale securities - Net of    tax                    |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   | 103    |   |   |   |   |   |   |   | 103 |   |
|                                                                                         |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                              |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 1,183 |   |
|                                                                                         |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of common stock (net of CCMHC shares reissued)                                     |   |   | 3,369,061 |   |        |   | 34     |                           |   |   | 51,204           |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 51,238 |   |
| Unearned      shares held by ESOP                                                            |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   | (3,415 | )                                 |   |   |          |   |   |   |   |   |   |   |   |   |   |   | (3,415 | ) |
| Stock      option expense                                                                    |   |   |      |   |        |   |   |                           |   |   | 75               |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 75 |   |
| Committed      ESOP shares                                                                   |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   | 432    |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 432 |   |
| Appreciation      in fair value of ESOP shares                                               |   |   |      |   |        |   |   |                           |   |   | 76               |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 76 |   |
| Cancellation      of treasury stock                                                          |   |   |      |   |        |   |   |                           |   |   | (341             | )      |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   | 341 |   |   |   | 0 |   |
| Dissolution      of CCMHC                                                                    |   |   |      |   |        |   |   |                           |   |   | 92               |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 92 |   |
| Cancellation      of unvested restricted stock                                               |   |   | (2,733    | )      |        |   |   |                           |   |   | (37              | )      |   |               |   |   |                 |   |   |                              |   |   | 37            |   |   |   |   |   |   |   |   |   |   |   | 0 |   |
| Stock      options exercised                                                                 |   |   | 4,558     |   |        |   |   |                           |   |   | 32               |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | 32 |   |
| Amortization      of restricted stock                                                        |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   | 90            |   |   |   |   |   |   |   |   |   |   |   | 90 |   |
| Cash      dividends ($0.20 per share)                                                        |   |   |      |   |        |   |   |                           |   |   |             |   |   |               | (1,115 | )      |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   | (1,115 | ) |
|                                                                                         |   |   |      |   |        |   |   |                           |   |   |             |   |   |               |   |   |                 |   |   |                              |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      - September 30, 2007                                                            |   |   | 7,118,205 |   |        |   | 71     |                           |   |   | 69,934           |   |   |               | 12,420 |   |                 |   | (3,877 | )                                 |   |   | (207          | )      |   |   | (192   | ) |   |   | 0 |   |   |   | 78,149 |   |

----

----

|                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   | Accumulated   |   |   |     |   |   |   |   |
|----------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|----------|--------|--------|--------------|--------|--------|---------------|--------|--------|----------|--------|--------|--------|--------|
|                                                                                         |   |   |      |   |   |   |   | Additional |   |   |     |   |   | Unearned |   |   |         |   |   | Other         |   |   |     |   |   |   |   |
|                                                                                         |   |   |      |   | Common |   |   | Paid-In    |   |   | Retained |   |   | ESOP     |   |   | Unearned     |   |   | Comprehensive |   |   | Treasury |   |   |   |   |
|                                                                                         |   | Shares |      |   | Stock  |   |   | Capital    |   |   | Earnings |   |   | Shares   |   |   | Compensation |   |   | Loss          |   |   | Stock    |   |   | Totals |   |
|                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |
|                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |
| Balance      - September 30, 2007 (brought forward)                                          |   |   | 7,118,205 |   |   | $      | 71     |       |   | $      | 69,934   |   |   | $        | 12,420 |   |         | $      | (3,877 | )             |   | $      | (207     | )      |   | $      | (192   | ) |   | $ | 0 |   |   | $ | 78,149 |   |
|                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss:                                                                     |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                              |   |   |      |   |   |   |   |       |   |   |     |   |   |     | 1,474  |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 1,474 |   |
| Amortization      of unrecognized prior service costs and net gains/losses - Net of      tax |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   | 102    |   |   |   |   |   |   |   | 102 |   |
| Net      unrealized loss on available-for-sale securities - Net of    tax                    |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   | (2,696 | ) |   |   |   |   |   |   | (2,696 | ) |
|                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive loss                                                                |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (1,120 | ) |
|                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock repurchased                                                                |   |   | (890,300  | )      |   |   | (9     | )          |   |   | (7,846   | )      |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (7,855 | ) |
| Stock      option expense                                                                    |   |   |      |   |   |   |   |       |   |   | 71       |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 71 |   |
| Committed      ESOP shares                                                                   |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   | 461    |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 461 |   |
| Appreciation      in fair value of ESOP shares                                               |   |   |      |   |   |   |   |       |   |   | 22       |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 22 |   |
| Cancellation      of unvested restricted stock                                               |   |   | (910      | )      |   |   |   |       |   |   | 11       |   |   |     |   |   |         |   |   |          |   |   | (11      | )      |   |   |   |   |   |   |   |   |   |   | 0 |   |
| Amortization      of restricted stock                                                        |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   | 92       |   |   |   |   |   |   |   |   |   |   |   | 92 |   |
| Cash      dividends ($0.20 per share)                                                        |   |   |      |   |   |   |   |       |   |   |     |   |   |     | (1,344 | )      |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (1,344 | ) |
|                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      - September 30, 2008                                                            |   |   | 6,226,995 |   |   |   | 62     |       |   |   | 62,192   |   |   |     | 12,550 |   |         |   | (3,416 | )             |   |   | (126     | )      |   |   | (2,786 | ) |   |   | 0 |   |   |   | 68,476 |   |

----

----

|                                                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   | Accumulated   |   |   |     |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|----------|--------|--------|--------------|--------|--------|---------------|--------|--------|----------|--------|--------|--------|--------|
|                                                                                                               |   |   |      |   |   |   |   | Additional |   |   |     |   |   | Unearned |   |   |         |   |   | Other         |   |   |     |   |   |   |   |
|                                                                                                               |   |   |      |   | Common |   |   | Paid-In    |   |   | Retained |   |   | ESOP     |   |   | Unearned     |   |   | Comprehensive |   |   | Treasury |   |   |   |   |
|                                                                                                               |   | Shares |      |   | Stock  |   |   | Capital    |   |   | Earnings |   |   | Shares   |   |   | Compensation |   |   | Loss          |   |   | Stock    |   |   | Totals |   |
|                                                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |
|                                                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |
| Balance      - September 30, 2008 (brought forward)                                                                |   |   | 6,226,995 |   |   | $      | 62     |       |   | $      | 62,192   |   |   | $        | 12,550 |   |         | $      | (3,416 | )             |   | $      | (126     | )      |   | $      | (2,786 | ) |   | $ | 0 |   |   | $ | 68,476 |   |
|                                                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss:                                                                                           |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                                      |   |   |      |   |   |   |   |       |   |   |     |   |   |     | (3,183 | )      |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (3,183 | ) |
| Pension      curtailment, net of tax                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   | 194    |   |   |   |   |   |   |   | 194 |   |
| Amortization      of unrecognized prior service costs and net gains/losses - Net of      tax                       |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   | (144   | ) |   |   |   |   |   |   | (144 | ) |
| Net      unrealized loss on available-for-sale securities - Net of    tax                                          |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   | (8,662 | ) |   |   |   |   |   |   | (8,662 | ) |
| Reclassification      adjustment for losses on securities available for sale included in      earnings, net of tax |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   | 4,703  |   |   |   |   |   |   |   | 4,703 |   |
|                                                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive loss                                                                                      |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (7,092 | ) |
|                                                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock repurchased                                                                                      |   |   | (749,520  | )      |   |   | (7     | )          |   |   | (5,253   | )      |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (5,260 | ) |
| Stock      option expense                                                                                          |   |   |      |   |   |   |   |       |   |   | 48       |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 48 |   |
| Committed      ESOP shares                                                                                         |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   | 346    |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 346 |   |
| Depreciation      in fair value of ESOP shares                                                                     |   |   |      |   |   |   |   |       |   |   | (70      | )      |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (70 | ) |
| Cancellation      of unvested restricted stock                                                                     |   |   | (5,695    | )      |   |   |   |       |   |   | (40      | )      |   |     |   |   |         |   |   |          |   |   | 40       |   |   |   |   |   |   |   |   |   |   |   | 0 |   |
| Amortization      of restricted stock                                                                              |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   | 63       |   |   |   |   |   |   |   |   |   |   |   | 63 |   |
| Cash      dividends ($0.20 per share)                                                                              |   |   |      |   |   |   |   |       |   |   |     |   |   |     | (1,146 | )      |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (1,146 | ) |
|                                                                                                               |   |   |      |   |   |   |   |       |   |   |     |   |   |     |   |   |         |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      - September 30, 2009                                                                                  |   |   | 5,471,780 |   |   | $      | 55     |       |   | $      | 56,877   |   |   | $        | 8,221  |   |         | $      | (3,070 | )             |   | $      | (23      | )      |   | $      | (6,695 | ) |   | $ | 0 |   |   | $ | 55,365 |   |

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|                                                                                                         |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                         |   |   |    |   |   |   |    |   |   |
| Increase      (decrease) in cash and cash equivalents:                                                       |   |   |    |   |   |   |    |   |   |
| Cash      flows from operating activities:                                                                   |   |   |    |   |   |   |    |   |   |
| Net      income (loss)                                                                                       |   | $      | (3,183  | )      |   | $      | 1,474   |   |   | $ | 743 |   |
|                                                                                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Adjustments      to reconcile net income (loss) to net cash provided by (used in) operating      activities: |   |   |    |   |   |   |    |   |   |   |   |   |
| Securities      discount accretion                                                                           |   |   | (341    | )      |   |   | (274    | )      |   |   | (17 | ) |
| Provision      for depreciation                                                                              |   |   | 959     |   |   |   | 533     |   |   |   | 493 |   |
| Provision      for loan losses                                                                               |   |   | 1,369   |   |   |   | 721     |   |   |   | 470 |   |
| Impairment      on mortgage-backed securities                                                                |   |   | 7,236   |   |   |   | 0       |   |   |   | 0 |   |
| Amortization      of purchase accounting adjustments                                                         |   |   | (52     | )      |   |   | (65     | )      |   |   | (68 | ) |
| Amortization      of core deposit intangible                                                                 |   |   | 333     |   |   |   | 307     |   |   |   | 301 |   |
| Amortization      of restricted stock                                                                        |   |   | 63      |   |   |   | 92      |   |   |   | 90 |   |
| Provision      for stock options                                                                             |   |   | 48      |   |   |   | 71      |   |   |   | 75 |   |
| Benefit      for deferred income taxes                                                                       |   |   | (631    | )      |   |   | (184    | )      |   |   | (230 | ) |
| Net      change in loans held for sale                                                                       |   |   | 0       |   |   |   | 0       |   |   |   | 321 |   |
| ESOP      contribution valuation change in excess of shares                                                  |   |   | (70     | )      |   |   | 22      |   |   |   | 76 |   |
| Increase      in accrued interest receivable and other assets                                                |   |   | (1,856  | )      |   |   | (617    | )      |   |   | (967 | ) |
| Increase      (decrease) in other liabilities                                                                |   |   | (97     | )      |   |   | 288     |   |   |   | (2,497 | ) |
|                                                                                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      adjustments                                                                                       |   |   | 6,961   |   |   |   | 894     |   |   |   | (1,953 | ) |
|                                                                                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                                                     |   |   | 3,778   |   |   |   | 2,368   |   |   |   | (1,210 | ) |
|                                                                                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash      flows from investing activities:                                                                   |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      increase in interest-bearing deposits                                                               |   |   | (2,087  | )      |   |   | 0       |   |   |   | 0 |   |
| Sale      of Federal Home Loan Bank stock                                                                    |   |   | 0       |   |   |   | 0       |   |   |   | 496 |   |
| Purchase      of Federal Home Loan Bank stock                                                                |   |   | (253    | )      |   |   | (965    | )      |   |   | (2,258 | ) |
| Purchase      of securities available for sale                                                               |   |   | (20,004 | )      |   |   | (31,839 | )      |   |   | (39,219 | ) |
| Proceeds      from principal repayments on securities available for sale                                     |   |   | 12,580  |   |   |   | 5,780   |   |   |   | 583 |   |
| Net      increase in loans                                                                                   |   |   | (73,987 | )      |   |   | (49,162 | )      |   |   | (62,074 | ) |
| Net      capital expenditures                                                                                |   |   | (3,070  | )      |   |   | (2,555  | )      |   |   | (272 | ) |
| Net      cash received from branch acquisition                                                               |   |   | 0       |   |   |   | 17,509  |   |   |   | 0 |   |
|                                                                                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      cash used in investing activities                                                                   |   |   | (86,821 | )      |   |   | (61,232 | )      |   |   | (102,156 | ) |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |
| Increase      (decrease) in cash and cash equivalents: (continued)                                                                                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |    |   |   |   |   |   |   |
| Net      increase (decrease) in borrowings                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | (3,440  | )      |   | $      | 13,799 |   |   | $ | 35,246 |   |
| Net      increase in deposits                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 112,068 |   |   |   | 71,115 |   |   |   | 21,040 |   |
| Proceeds      from sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 0       |   |   |   | 0      |   |   |   | 51,238 |   |
| Repurchase      shares of common stock                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (5,260  | )      |   |   | (7,855 | )      |   |   | 0 |   |
| Dissolution      of CCMHC                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 0       |   |   |   | 0      |   |   |   | 92 |   |
| Stock      options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 0       |   |   |   | 0      |   |   |   | 32 |   |
| Loan      to ESOP for purchase of common stock                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 0       |   |   |   | 0      |   |   |   | (3,415 | ) |
| Reduction      in unallocated shares held by ESOP                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 346     |   |   |   | 461    |   |   |   | 432 |   |
| Cash      dividends paid                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (1,146  | )      |   |   | (1,344 | )      |   |   | (1,115 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 102,568 |   |   |   | 76,176 |   |   |   | 103,550 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 19,525  |   |   |   | 17,312 |   |   |   | 184 |   |
| Cash      and cash equivalents at beginning                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 23,666  |   |   |   | 6,354  |   |   |   | 6,170 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at end                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 43,191  |   |   | $      | 23,666 |   |   | $ | 6,354 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash      paid during the year for:                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest      on deposits                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 10,155  |   |   | $      | 9,137  |   |   | $ | 6,994 |   |
| Interest      paid on borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 4,594   |   |   |   | 4,991  |   |   |   | 1,757 |   |
| Income      taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 925     |   |   |   | 1,312  |   |   |   | 806 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Supplemental      schedule of noncash investing and financing activities:                                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |
| Loans      transferred to foreclosed properties                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 641     |   |   | $      | 315    |   |   | $ | 94 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| On      August 1, 2008, the Company purchased certain assets and assumed the      deposits of the Fond du Lac, Oshkosh, and Appleton branches of      American National Bank. The Company paid a total of $387 to acquire      these assets and liabilities. This amount included $45 in direct      acquisition costs. In conjunction with the acquisition, the Company      received $17,509 and the following assets and liabilities: |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash      in vault                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   | $      | 223    |   |   |   |   |   |
| Office      properties and equipment                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   | 432    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Assets      acquired                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   | $      | 655    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Deposits      assumed                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |   |   | $      | 18,406 |   |   |   |   |   |
| Other      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |    |   |   |   | 145    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Liabilities      assumed                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |    |   |   | $      | 18,551 |   |   |   |   |   |

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| Note 1 | Summary of      Significant Accounting Policies  Nature      of OperationsCitizens      Community Bancorp, Inc. (the “Company”) is a federally chartered holding      company which owns all of the common stock of Citizens Community Federal      (the "Bank").  The Bank operates as a full service savings bank      with primary markets in, but not limited to, Wisconsin, Minnesota, and      Michigan.  It is engaged in the business of attracting deposits      from the general public and investing those deposits in residential and      consumer loans.Principles      of ConsolidationThe      consolidated financial statements include the accounts of Citizens      Community Bancorp, Inc. and its wholly owned subsidiary, Citizens      Community Federal.  All significant intercompany balances and      transactions have been eliminated.  The accounting and reporting      policies of the Company conform to accounting principles generally      accepted in the United States and to the practices within the banking      industry.Use      of Estimates in Preparation of Financial StatementsThe      preparation of the consolidated financial statements in conformity with      accounting principles generally accepted in the United States requires      management to make certain estimates and assumptions that affect the      reported amounts of assets and liabilities, the disclosure of contingent      assets and liabilities at the date of the financial statements, and the      reported amounts of revenue and expenses during the reporting      period.  Actual results could differ from these      estimates.Cash      and Cash EquivalentsFor      purposes of reporting cash flows in the consolidated financial statements,      cash and cash equivalents include cash, due from banks and      interest-bearing deposits with original maturities of three months or      less.Interest-Bearing      DepositsOther      interest-bearing deposits mature within one year and are carried at cost,      which approximates fair value. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1 | Summary      of Significant Accounting Policies (Continued) SecuritiesSecurities      are classified as available for sale and are carried at fair value, with      unrealized gains and losses reported in other comprehensive      income.  Amortization of premiums and accretion of discounts are      recognized in interest income using the interest method over the estimated      lives of the securities.The      Company evaluates all investment securities on a quarterly basis, and more      frequently when economic conditions warrant determining if an      other-than-temporary impairment exists.  A debt security is      considered impaired if the fair value is less than its amortized cost      basis at the report date.  If impaired, management then assesses      whether the impairment is other-than-temporary.Current      authoritative guidance provides that an unrealized loss is generally      deemed to be other-than-temporary and a credit loss is deemed to exist if      the present value of the expected future cash flows is less than the      amortized cost basis of the debt security.  The credit loss      component is recorded in earnings as a component of other-than-temporary      impairment in the consolidated statements of operations, while the loss      component related to other market factors is recognized in other      comprehensive income (loss), provided the Company does not intend to sell      the underlying debt security and it is “more likely than not” that the      Company will not have to sell the debt security prior to      recovery.Management      considers the following factors in determining whether a credit loss      exists and the period over which the debt security is expected to      recover: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |  ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The      length of time, and the extent to which, the fair value has been less than      the amortized cost. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |  ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Adverse conditions      specifically related to the security, industry, or geographic    area. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |  ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The historical and      implied volatility of the fair value of the security. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |  ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The      payment structure of the debt security and the likelihood of the issuer or      underlying borrowers being able to make payments that may increase in the      future. |

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| Note 1 | Summary      of Significant Accounting Policies (Continued)Securities      (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |  ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Failure of the      issuer of the security or the underlying borrowers to make scheduled      interest or principal payments. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   |  ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Any changes to the      rating of the security by a rating agency. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|   |  ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Recoveries or      additional declines in fair value subsequent to the balance sheet      date. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Interest      income on securities for which an other-than-temporary impairment has been      recognized in earnings is recognized at a rate commensurate with the      expected future cash flows and amortized cost basis of the securities      after impairment.Gains      and losses on the sale of securities are recorded on the trade date and      determined using the specific-identification method.LoansLoans      that management has the intent and ability to hold for the foreseeable      future, or until maturity or payoff, generally are reported at their      outstanding unpaid principal balances adjusted for charge-offs, the      allowance for loan losses, and any deferred fees or costs on originated      loans.  Interest on loans is accrued and credited to income      based on the unpaid principal balance.  Loan origination fees,      net of certain direct origination costs, are deferred and recognized as an      adjustment of the related loan yield over the life of the      loan.Allowance      for Loan Losses The      allowance for loan losses is established through a provision for loan      losses charged to expense.  Loan losses are charged against the      allowance for loan losses when management believes that the collectibility      of the principal is unlikely.  Subsequent recoveries, if any,      are credited to the allowance.Management      regularly evaluates the allowance for loan losses using the Company's past      loan loss experience, known and inherent risks in the portfolio,      composition of the portfolio, adverse situations that may affect the      borrower's ability to repay, estimated value of any underlying collateral,      current economic conditions, and other relevant factors.  This      evaluation is inherently subjective since it requires material estimates      that may be susceptible to significantchange. |

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| Note 1 | Summary      of Significant Accounting Policies(Continued)Allowance      for Loan Losses (Continued)The      allowance for loan losses consists of specific and general      components.  The specific component relates to loans that are      classified as doubtful, substandard, or special mention.  The      specific reserve is based on the fair value of the      collateral.  The general component covers nonclassified loans      and is based on historical loss experience adjusted for qualitative      factors.In      addition, various regulatory agencies periodically review the allowance      for loan losses.  These agencies may require additions to the      allowance for loan losses based on their judgments of      collectibility.In      management's judgment, the allowance for loan losses is maintained at a      level that represents its best estimate of probable losses relating to      specifically identified loans, as well as probable losses inherent in the      balance of the loan portfolio.  While management uses the best      information available to make its evaluation, future adjustments to the      allowance may be necessary if there are significant changes in economic      conditions.Federal      Home Loan Bank StockThe      Bank owns stock in the Federal Home Loan Bank (FHLB).  FHLB      stock is carried at cost which approximates fair value.  The      Bank is required to hold the stock as a member of the FHLB system, and      transfer of the stock is substantially restricted.  The stock is      pledged as collateral for outstanding FHLB advances.  The FHLB      of Chicago is under a regulatory order for its capital level which      requires approval of dividend payments and stock      redemptions.  The stock is evaluated for impairment on an annual      basis.  There is no impairment at September 30, 2009 or      2008.Office      Properties and EquipmentOffice      properties and equipment are stated at cost.  Maintenance and      repair costs are charged to expense as incurred.  Gains or      losses on disposition of office properties and equipment are reflected in      income.  Depreciation is computed principally on the      straight-line method and is based on the estimated useful lives of the      assets, varying from 10 to 40 years for buildings and 3 to 10 years for      equipment. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1 | Summary      of Significant Accounting Policies (Continued)Intangible      Assets and GoodwillIntangible      assets and goodwill are attributable to the value of core deposits      acquired less accumulated amortization and the excess of purchase price      over fair value of assets acquired.  Intangible assets are      amortized on a straight-line basis over periods of seven to fifteen      years.  Goodwill is not amortized.The      Company reviews intangible assets and goodwill for impairment at least      annually and whenever events or changes in circumstances indicate that the      carrying amount of an asset may not be recoverable.  The      evaluation includes assessing the estimated fair value of the intangible      asset based on market prices for similar assets, where available, and the      present value of the estimated future cash flows associated with the      intangible asset.  Impairment charges are recorded if it is      determined that the benefit of the intangible asset has      decreased.  There was no impairment to intangibles in 2009 or      2008.The      carrying amount of the core deposit intangible at September 30 is as      follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

|   |                      |   | 2009   |   |   | 2008   |   |
|--------|---------------------------|--------|--------|--------|--------|--------|--------|
|   |                      |   |   |   |   |   |   |
|   | Balance      at beginning |   | $      | 1,481  |   |   | $      | 1,528 |   |
|   | Capitalized               |   |   | 0      |   |   |   | 260 |   |
|   | Amortization              |   |   | (333   | )      |   |   | (307 | ) |
|   |                      |   |   |   |   |   |   |   |   |
|   | Balance      at end       |   | $      | 1,148  |   |   | $      | 1,481 |   |

|   | The estimated      amortization expense for amortizing core deposit intangible is as      follows: |
|--------|----------------------------------------------------------------------------------------------------|

|   | 2010 |   | $      | 333 |   |
|--------|------|--------|--------|-----|--------|
|   | 2011 |   |   | 333 |   |
|   | 2012 |   |   | 333 |   |
|   | 2013 |   |   | 149 |   |

|   | Foreclosed      AssetsAssets      acquired through, or in lieu of, loan foreclosure are held for sale and      are initially recorded at fair value (third-party appraisal) at the date      of foreclosure, establishing a new cost basis.  These assets are      included in other assets on the balance sheets.  Subsequent to      foreclosure, valuations are periodically performed by management, and the      assets are carried at the lower of carrying amount or fair value less cost      to sell.  Expenses from operations and changes in the valuation      allowance are included in net otherexpenses. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1 | Summary      of Significant Accounting Policies (Continued)Income      Taxes Deferred      income taxes have been provided under the liability      method.  Deferred tax assets and liabilities are determined      based on the difference between the consolidated financial statement and      tax basis of assets and liabilities as measured by the current enacted tax      rates which will be in effect when these differences are expected to      reverse.  Provision (credit) for deferred taxes is the result of      changes in the deferred tax assets and liabilities.The      Company prescribes a recognition threshold and a measurement attribute for      the financial statement recognition and measurement of a tax position      taken or expected to be taken in a tax return.  Benefits from      tax positions should be recognized in the financial statements only when      it is more likely than not that the tax position will be sustained upon      examination by the appropriate taxing authority that would have full      knowledge of all relevant information.  A tax position that      meets the more-likely-than-not recognition threshold is measured at the      largest amount of benefit that is greater than 50% likely of being      realized upon ultimate settlement.  Tax positions that      previously failed to meet the more-likely-than-not recognition threshold      should be recognized in the first subsequent financial reporting period in      which that threshold is met.  Previously recognized tax      positions that no longer meet the more-likely-than-not recognition      threshold should be derecognized in the first subsequent financial      reporting period in which that threshold is no longer      met.  Accounting literature also provides guidance on the      accounting for and disclosure of unrecognized tax benefits, interest, and      penalties.  In accordance with generally accepted accounting      principles, interest or penalties incurred for income taxes will be      recorded as a component of other expenses.Advertising      CostsAdvertising      costs are expensed as incurred.Off-Balance-Sheet      Financial InstrumentsIn      the ordinary course of business, the Bank has entered into      off-balance-sheet financial instruments consisting of commitments to      extend credit and commitments under credit card      arrangements.  Such financial instruments are recorded in the      financial statements when they becomepayable. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1 | Summary      of Significant Accounting Policies(Continued)Other      Comprehensive LossThe      Company's accumulated other comprehensive loss is comprised of the      unrealized and realized losses on securities available for sale and      pension liability adjustments, net of tax, and is shown on the      consolidated statements of stockholders' equity.Segment      InformationThe      Company, through a branch network of its banking subsidiary, provides a      full range of banking services in Wisconsin, Minnesota, and      Michigan.While      the Company’s chief decision makers monitor the revenue streams of various      Company products and services, operations are managed and financial      performance is evaluated on a companywide basis.  Accordingly,      all of the Company’s banking operations are considered by management to be      aggregated in one reportable operating segment.Recent      Accounting Changes In      June 2009, the Financial Accounting Standards Board (FASB) issued an      accounting pronouncement establishing the FASB Accounting Standards      CodificationTM      (ASC) as the source of authoritative accounting principles recognized by      the FASB to be applied in the preparation of financial statements in      conformity with U.S. GAAP.  This pronouncement is effective for      financial statements issued for interim and annual periods ending after      September 15, 2009, for most entities.  On the effective date,      all non-Securities and Exchange Commission accounting and reporting      standards were superseded.  The Company adopted this new      accounting pronouncement for the year ended September 30, 2009, as      required, and adoption did not have a material impact on the Company’s      consolidated financial statements.In      February 2007, the FASB issued guidance permitting entities to measure      certain financial instruments and certain other items at fair value that      are not currently required to be measured at fair value.  This      guidance is included in ASC 825, Financial      Instruments.  The Company adopted this guidance effective      October 1, 2008, and has not elected to measure any financial assets and      financial liabilities at fair value which were not previously required to      be measured at fair value.  The adoption of this topic has had      no impact on the Company’s consolidated financial    statements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1 | Summary      of Significant Accounting Policies (Continued)Recent      Accounting Changes (Continued)In      April 2009, FASB issued ASC 820-10, Determining Fair Value When      the Volume and Level of Activity for the Asset or Liability Have      Significantly Decreased and Identifying Transactions That Are Not      Orderly.  ASC 820-10 affirms that the objective of fair      value when the market for an asset is not active is the price that would      be received to sell the asset in an orderly transaction, and clarifies and      includes additional factors for determining whether there has been a      significant decrease in market activity for an asset when the market for      that asset is not active.  ASC 820-10 requires an entity to base      its conclusion about whether a transaction was not orderly on the weight      of the evidence.  ASC 820-10 is effective for interim and annual      periods ending after June 15, 2009.  The adoption of ASC 820-10      did not have a material impact on the Company’s consolidated financial      statements.In      April 2009, FASB issued ASC 320-10, Recognition and Presentation      of Other-Than-Temporary Impairments.  ASC 320-10 amended      other-than-temporary impairment (OTTI) guidance for debt securities by      requiring a write-down when fair value is below amortized cost in      circumstances where (1) an entity has the intent to sell a security, (2)      it is more likely than not that an entity will be required to sell the      security before recovery of its amortized cost basis, or (3) an entity      does not expect to recover the entire amortized cost basis of the      security.  If an entity intends to sell a security or if it is      more likely than not that the entity will be required to sell the security      before recovery, an OTTI write-down is recognized in earnings equal to      entire difference between the security’s amortized cost basis and its fair      value.  If an entity does not intend to sell the security or it      is not more likely than not that it will be required to sell the security      before recovery, the OTTI write-down is separated into an amount      representing credit loss, which is recognized in earnings, and an amount      related to all other factors, which is recognized in other comprehensive      income.  The Company adopted this accounting standard on      April 1, 2009.  As a result of implementing the new      guidance, the amount of OTTI recognized in income in the June 2009 quarter      was $7,236. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1 | Summary      of Significant Accounting Policies (Continued)Recent      Accounting Changes (Continued)In      May 2009, FASB issued ASC 855-019, Subsequent Events,      which establishes general standards of accounting for and disclosure of      events that occur after the balance sheet date but before financial      statements are issued or available to be issued.  ASC 855-019      defines (1) the period after the balance sheet date during which a      reporting entity’s management should evaluate events or transactions that      may occur for potential recognition or disclosure in the financial      statements, (2) the circumstances under which an entity should recognize      events or transactions occurring after the balance sheet date in its      financial statements, and (3) the disclosures an entity should make about      events or transactions that occurred after the balance sheet      date.  ASC 855-019, which includes a required disclosure of the      date through which an entity has evaluated subsequent events, became      effective for consolidated financial statements for periods ending after      June 15, 2009.  See Note 22 for the Company’s discussion of      subsequent events.  The adoption of this standard did not have a      material impact on the Company’s financial statements.In      June 2009, FASB issued ASC 860-10, Accounting for Transfers of      Financial Assets, an Amendment of ASC 860-10 which amends ASC      860-10, Accounting for      Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities, to enhance reporting about transfers of financial      assets, including securitizations, and where companies have continuing      exposure to the risks related to transferred financial      assets.  ASC 860-10 eliminates the concept of a “qualifying      special-purpose entity” and changes the requirements for derecognizing      financial assets.  ASC 860-10 also clarifies that a transferor      must evaluate whether it has maintained effective control of a financial      asset by considering its continuing direct or indirect involvement with      the transferred financial asset.  ASC 860-10 will be effective      for all reporting periods beginning after November 15,      2009.  The adoption of ASC 860-10 is not expected to have a      material impact on the Company’s consolidated financial      statements.In      June 2009, FASB Issued ASC 810-10, Amendments to ASC 810-10,      Consolidation of Variable Interest Entities, to change how a      company determines when an entity that is insufficiently capitalized or is      not controlled through voting (or similar rights) should be      consolidated.  The determination of whether a company is      required to consolidate an entity is based on, among other things, an      entity’s purpose and design and a company’s ability to direct the      activities of the entity that most significantly impact the entity’s      economic performance.  ASC 810-10 will be effective for all      reporting periods beginning after November 15, 2009.  The      adoption of ASC 810-10 is not expected to have a material impact on the      Company’s consolidated financialstatements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 1 | Summary of      Significant Accounting Policies (Continued)ReclassificationsCertain      reclassifications have been made to the 2008 financial statements to      conform to the 2009 classifications.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Note 2 | Acquisition  On      August 1, 2008, the acquisition of the Fond du Lac, Oshkosh, and Appleton,      Wisconsin, branch offices from American National Bank of Beaver Dam,      Wisconsin, was completed.  The primary objective of the      acquisition was to provide additional liquidity and geographic growth      opportunities for the Company.The      acquisition was accounted for using the purchase method of      accounting.  Accordingly, the results of operations since the      date of acquisition are included in the consolidated financial      statements.The      purchase price to complete the acquisition was $387.  The      purchase price of the acquisition was allocated to the assets acquired and      liabilities assumed, using their fair values at the acquisition      date.Goodwill      of approximately $127 was recorded upon the consummation of the      acquisition due to expenses associated with the      acquisition.  The Bank recorded a core deposit intangible of      $260, which is being amortized over 100 months. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Note 3 | Cash and      Cash Equivalents In      the normal course of business, the Bank maintains cash and due from bank      balances with correspondent banks which routinely exceed insured      amounts.  Accounts at each institution are insured by the      Federal Deposit Insurance Corporation up to $250.On      October 3, 2008, the deposit insurance was increased to $250 per depositor      until December 31, 2009.  On May 20, 2009, the FDIC extended the      deposit insurance increase to December 31, 2013.The      Bank monitors the financial condition of correspondent banks and believes      credit risk is minimal.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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| Note 4 | Securities The amortized cost and estimated fair value of securities, with gross      unrealized gains and losses at September 30,follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                        |   |      |   |   | Gross      |   |   | Gross      |   |   |            |   |
|--------|---------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|-----------------|--------|
|   |                                        |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Estimated       |   |
|   |                                        |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Fair      Value |   |
|   |                                        |   |      |   |
|   | 2009                                        |   |      |   |   |       |   |   |       |   |   |            |   |
|   |                                        |   |      |   |   |       |   |   |       |   |   |            |   |
|   | Securities      available for sale:         |   |      |   |   |       |   |   |       |   |   |            |   |
|   | Debt      securities:                       |   |      |   |   |       |   |   |       |   |   |            |   |
|   | U.S.      agency securities                 |   | $         | 19,535 |   |       | $      | 163    |       |   | $      | 0               |   |   | $ | 19,698 |   |
|   | Residential      mortgage-backed securities |   |      | 46,777 |   |       |   | 0      |       |   |   | 10,260          |   |   |   | 36,517 |   |
|   |                                        |   |      |   |   |       |   |   |       |   |   |            |   |   |   |   |   |
|   | Total      securities available for sale    |   | $         | 66,312 |   |       | $      | 163    |       |   | $      | 10,260          |   |   | $ | 56,215 |   |
|   |                                        |   |      |   |   |       |   |   |       |   |   |            |   |   |   |   |   |
|   | 2008                                        |   |      |   |   |       |   |   |       |   |   |            |   |   |   |   |   |
|   |                                        |   |      |   |   |       |   |   |       |   |   |            |   |   |   |   |   |
|   | Securities      available for sale:         |   |      |   |   |       |   |   |       |   |   |            |   |   |   |   |   |
|   | Debt      securities:                       |   |      |   |   |       |   |   |       |   |   |            |   |   |   |   |   |
|   | U.S.      agency securities                 |   | $         | 541    |   |       | $      | 3      |       |   | $      | 1               |   |   | $ | 543 |   |
|   | Residential      mortgage-backed securities |   |      | 65,242 |   |       |   | 182    |       |   |   | 4,191           |   |   |   | 61,233 |   |
|   |                                        |   |      |   |   |       |   |   |       |   |   |            |   |   |   |   |   |
|   | Total      securities available for sale    |   | $         | 65,783 |   |       | $      | 185    |       |   | $      | 4,192           |   |   | $ | 61,776 |   |

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| Note 4 | Securities (Continued) The following tables show the fair value and gross unrealized losses      of securities with unrealized losses at September 30, aggregated by      investment category and length of time that individual securities have      been in a continuous unrealized lossposition: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                        |   | Less      than 12 Months |   |   | 12      Months or More |   |   | Total  |   |
|--------|---------------------------------------------|--------|--------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|   | Description                                 |   | Fair                     |   |   | Unrealized             |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|   | of      Securities                          |   | Value                    |   |   | Losses                 |   |   | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
|   |                                        |   |                     |   |
|   | 2009                                        |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                        |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | U.S.      agency securities                 |   | $                        | 0      |   |                   | $      | 0      |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |
|   | Residential      mortgage-backed securities |   |                     | 5,852  |   |                   |   | 965    |   |   |   | 30,665 |   |   |   | 9,295 |   |   |   | 36,517 |   |   |   | 10,260 |   |
|   |                                        |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total      securities                       |   | $                        | 5,852  |   |                   | $      | 965    |   |   | $ | 30,665 |   |   | $ | 9,295 |   |   | $ | 36,517 |   |   | $ | 10,260 |   |
|   |                                        |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | 2008                                        |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                        |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | U.S.      agency securities                 |   | $                        | 0      |   |                   | $      | 0      |   |   | $ | 149 |   |   | $ | 1 |   |   | $ | 149 |   |   | $ | 1 |   |
|   | Residential      mortgage-backed securities |   |                     | 52,491 |   |                   |   | 4,191  |   |   |   | 0 |   |   |   | 0 |   |   |   | 52,491 |   |   |   | 4,191 |   |
|   | Total      securities                       |   | $                        | 52,491 |   |                   | $      | 4,191  |   |   | $ | 149 |   |   | $ | 1 |   |   | $ | 52,640 |   |   | $ | 4,192 |   |

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| Note 4 | Securities (Continued) On      September 30, 2009, 17 securities have unrealized losses recognized in      accumulated other comprehensive income, with aggregate depreciation of 22%      of the Company’s amortized cost basis.  While performance of      these residential mortgage-backed securities has deteriorated and the      securities have been subject to downgrades, these unrealized losses relate      principally to the continued dislocation of the securities market and are      not due to changes in the financial condition of the issuer, the quality      of any underlying assets, or applicable credit enhancements.To      determine if an other-than-temporary impairment exists on a debt security,      the Institution holding the security first determines if (1) it intends to      sell the security or (2) it is more likely than not that it will be      required to sell the security before its anticipated      recovery.  If either of the conditions is met, the Institution      holding the security will recognize an other-than-temporary impairment in      earnings equal to the difference between the security’s fair value and its      adjusted cost basis.  If neither of the conditions is met, the      Institution holding the security determines (a) the amount of the      impairment related to credit loss and (b) the amount of the impairment due      to all other factors.  The difference between the present values      of the cash flows expected to be collected and the amortized cost basis is      the credit loss.  The credit loss is the amount of the      other-than-temporary impairment that is recognized in earnings and is a      reduction to the cost basis of the security.  The amount of      total impairment related to all other factors (excluding credit loss) is      included in other comprehensive income.The      Company utilizes a discounted cash flow model to determine fair value,      which is also used in the calculation of other-than-temporary impairments      on debt securities.  This model is also used to determine the      portion of the other-than-temporary impairment that is due to credit      losses, and the portion that is due to all other factors.  On      securities with other-than-temporary impairment, the difference between      the present value of the cash flows expected to be collected and the      amortized cost basis of the debt security is the credit      loss. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 4 | Securities (Continued) The      significant inputs are generated using actual loan by loan feeds within a      specific debt security.  This information is provided by      multiple sources including the transaction’s servicers, trustees, and/or      outside data providers including, but not limited to Bloomberg and      Markit.  Each loan in the debt security is modeled in order to      determine an individual prepayment assumption, loss severity, and default      rate for that loan.  Factors that are used to determine these      assumptions for each loan include, but are not limited to, original FICO      scores, probability rates of already delinquent loans, current and      historical amortization schedule, original loan-to-value ratio, current      adjusted loan-to-value ratio, property location, property type, loan      purpose, and loan size.  Once these loan level assumptions are      determined, they are used as the significant inputs to produce the final      cash flow streams for the debt security.  The discount rate      utilized to establish the net present value of projected cash flows for a      hold-to-maturity value is set using the coupon rate, or the original      accretion or anticipated prepurchase expected yield.  In      establishing the fair value of the securities, a discount rate of 9% to      15% was utilized for seasoned performing senior debt      securities.  Wider rates, as wide as 50% to 80% are used for      troubled support debt securities.Based      on the Company’s impairment testing, they recognized $12,502 of      other-than-temporary impairment losses on nine securities.  The      impairment loss before tax that was recorded in earnings and other      comprehensive loss was $7,236 and $5,266, respectively.  At      September 30, 2009, the approximate aggregate fair value of those nine      securities is $14.7 million.The      following table is a roll forward of the amount of other-than-temporary      impairment related to credit losses that have been recognized in earnings      for the year ended September 30,2009: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Beginning      balance of the amount of OTTI related to credit losses                                                                                                                                     |   | $      | 0      |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|   | Credit      portion of OTTI on securities for which OTTI was not previously      recognized                                                                                                               |   |   | 7,236  |   |
|   |                                                                                                                                                                                                      |   |   |   |   |
|   | Ending      balance of the amount of OTTI related to credit losses                                                                                                                                        |   | $      | 7,236  |   |
|   |                                                                                                                                                                                                      |   |   |   |   |
|   | There      were no sales of available-for-sale securities during the three-year      period ended September 30, 2009.  No securities were pledged by      the Company as of September 30, 2009. |

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| Note 4 | Securities (Continued) The      contractual maturities of securities available for sale at September 30,      2009, follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   |                                        |   | AmortizedCost |   |   | EstimatedFair      Value |   |
|--------|---------------------------------------------|--------|---------------|--------|--------|--------------------------|--------|
|   |                                        |   |          |   |   |                     |   |
|   | Due      after one year through five years  |   | $             | 113    |   |                     | $      | 115 |   |
|   | Due      after five years through ten years |   |          | 185    |   |                     |   | 192 |   |
|   | Due      after ten years                    |   |          | 19,237 |   |                     |   | 19,391 |   |
|   |                                        |   |          |   |   |                     |   |   |   |
|   | Subtotal                                    |   |          | 19,535 |   |                     |   | 19,698 |   |
|   | Mortgage-backed      securities             |   |          | 46,777 |   |                     |   | 36,517 |   |
|   |                                        |   |          |   |   |                     |   |   |   |
|   | Total      securities available for sale    |   | $             | 66,312 |   |                     | $      | 56,215 |   |

| Note 5 | Loans The composition of loans at September 30follows: |
|--------|-------------------------------------------------------------|

|   |                                 |   | 2009   |    |   | 2008   |   |
|--------|--------------------------------------|--------|--------|---------|--------|--------|--------|
|   |                                 |   |   |    |   |   |   |
|   | Real      estate loans:              |   |   |    |   |   |   |
|   | First      mortgages--1- to 4-family |   | $      | 230,412 |   |   | $      | 193,958 |   |
|   | Multifamily      and commercial      |   |   | 174     |   |   |   | 180 |   |
|   | Second      mortgages                |   |   | 9,639   |   |   |   | 10,774 |   |
|   |                                 |   |   |    |   |   |   |   |   |
|   | Total      real estate loans         |   |   | 240,225 |   |   |   | 204,912 |   |
|   |                                 |   |   |    |   |   |   |   |   |
|   | Consumer      loans:                 |   |   |    |   |   |   |   |   |
|   | Automobile                           |   |   | 24,875  |   |   |   | 25,887 |   |
|   | Secured      personal                |   |   | 172,040 |   |   |   | 133,181 |   |
|   | Unsecured      personal              |   |   | 5,655   |   |   |   | 5,797 |   |
|   |                                 |   |   |    |   |   |   |   |   |
|   | Total      consumer loans            |   |   | 202,570 |   |   |   | 164,865 |   |
|   |                                 |   |   |    |   |   |   |   |   |
|   | Gross      loans                     |   |   | 442,795 |   |   |   | 369,777 |   |
|   | Allowance      for loan losses       |   |   | (1,925  | )      |   |   | (1,192 | ) |
|   | Net      deferred loan costs (fees)  |   |   | (325    | )      |   |   | (67 | ) |
|   |                                 |   |   |    |   |   |   |   |   |
|   | Loans      receivable, net           |   | $      | 440,545 |   |   | $      | 368,518 |   |

----

----

| Note 5 | Loans (Continued)       The      aggregate amount of nonperforming loans was $5,789 and $3,255 at      September 30, 2009 and 2008, respectively.  Nonperforming      loans are those which are contractually past due more than 90 days as to      interest or principal payments, on a nonaccrual of interest      status.  Payments received on nonaccrual loans are applied first      to principal and then to interest.  Once a nonperforming loan      becomes less than 91 days delinquent, the accrual of interest is      resumed.  If interest on those loans had been accrued, such      income would have been $402, $187, and $102 in 2009, 2008, and 2007,      respectively.  There were no nonperforming loans still accruing      interest in 2009 and 2008.Directors,      officers, principal stockholders, and employees of the Company, including      their families and firms in which they are principal owners, are      considered to be related parties.  Substantially all loans to      directors and executive officers were made on the same terms, including      interest rates and collateral, as those prevailing at the time for      comparable transactions with others and, in the opinion of management, did      not involve more than the normal risk of collectibility or present other      unfavorable features.Activity      in related-party loans for the years ended September 30, 2009 and      2008, is as follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                            |   | 2009   |   |   | 2008   |   |
|--------|-------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   |                                                                                            |   |   |   |   |   |   |
|   | Loans      outstanding, October 1                                                               |   | $      | 36     |   |   | $      | 27 |   |
|   | New      loans                                                                                  |   |   | 27     |   |   |   | 18 |   |
|   | Repayments                                                                                      |   |   | (15    | )      |   |   | (9 | ) |
|   |                                                                                            |   |   |   |   |   |   |   |   |
|   | Loans      outstanding, September 30                                                            |   | $      | 48     |   |   | $      | 36 |   |
|   |                                                                                            |   |   |   |   |   |   |   |   |
|   | An      analysis of the activity in the allowance for loan losses at September 30      follows: |   |   |   |   |   |   |   |   |

|   |                                         |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                         |   |   |   |   |   |   |   |   |   |
|   | Balance      at beginning                    |   | $      | 1,192  |   |   | $      | 926    |   |   | $ | 835 |   |
|   | Provisions      charged to operating expense |   |   | 1,369  |   |   |   | 721    |   |   |   | 470 |   |
|   | Loans      charged off                       |   |   | (673   | )      |   |   | (492   | )      |   |   | (413 | ) |
|   | Recoveries      on loans                     |   |   | 37     |   |   |   | 37     |   |   |   | 34 |   |
|   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance      at end                          |   | $      | 1,925  |   |   | $      | 1,192  |   |   | $ | 926 |   |

----

----

| Note 6 | Office      Properties and Equipment Office properties and equipment at September 30 consists of the      following: |
|--------|---------------------------------------------------------------------------------------------------------------------------|

|        |                                                                                                                                                   |   | 2009   |   |   | 2008   |   |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|        |                                                                                                                                                   |   |   |   |   |   |   |
|        | Land                                                                                                                                                   |   | $      | 695    |   |   | $      | 695 |   |
|        | Buildings                                                                                                                                              |   |   | 2,825  |   |   |   | 2,863 |   |
|        | Furniture,      equipment, and vehicles                                                                                                                |   |   | 9,466  |   |   |   | 6,460 |   |
|        |                                                                                                                                                   |   |   |   |   |   |   |   |   |
|        | Subtotals                                                                                                                                              |   |   | 12,986 |   |   |   | 10,018 |   |
|        | Less      - Accumulated depreciation                                                                                                                   |   |   | 4,957  |   |   |   | 4,102 |   |
|        |                                                                                                                                                   |   |   |   |   |   |   |   |   |
|        | Office      properties and equipment - Net                                                                                                             |   | $      | 8,029  |   |   | $      | 5,916 |   |
|        |                                                                                                                                                   |   |   |   |   |   |   |   |   |
|        | Depreciation      charged to operating expense totaled $959, $533, and $493 for the years      ended September 30, 2009, 2008, and 2007, respectively. |
|        |                                                                                                                                                   |
| Note      7 | Deposits The composition of deposits at September 30  follows:                                                                                    |

|   |                                      |   | 2009   |    |   | 2008   |   |
|--------|-------------------------------------------|--------|--------|---------|--------|--------|--------|
|   |                                      |   |   |    |   |   |   |
|   | Non-interest-bearing      demand deposits |   | $      | 14,943  |   |   | $      | 14,363 |   |
|   | Interest-bearing      demand deposits     |   |   | 4,788   |   |   |   | 4,654 |   |
|   | Savings      accounts                     |   |   | 26,387  |   |   |   | 22,267 |   |
|   | Money      market accounts                |   |   | 146,709 |   |   |   | 44,777 |   |
|   | Certificate      accounts                 |   |   | 216,484 |   |   |   | 211,182 |   |
|   |                                      |   |   |    |   |   |   |   |   |
|   | Total      deposits                       |   | $      | 409,311 |   |   | $      | 297,243 |   |

----

----

| Note 7 | Deposits      (Continued) Interest expense on deposits for the years ended September 30 was as      follows: |
|--------|-------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                 |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
|   | Interest-bearing      demand deposits                                                                                                                                                |   | $      | 27     |   |   | $      | 26     |   |   | $ | 28 |   |
|   | Savings      accounts                                                                                                                                                                |   |   | 192    |   |   |   | 172    |   |   |   | 218 |   |
|   | Money      market accounts                                                                                                                                                           |   |   | 1,949  |   |   |   | 717    |   |   |   | 588 |   |
|   | Certificate      accounts                                                                                                                                                            |   |   | 7,990  |   |   |   | 8,223  |   |   |   | 6,160 |   |
|   |                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Totals                                                                                                                                                                               |   | $      | 10,158 |   |   | $      | 9,138  |   |   | $ | 6,994 |   |
|   |                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   | The      aggregate amount of time deposit accounts with individual balances of      $100,000 or more was $65,305 and $53,380 at September 30, 2009 and      2008, respectively. |
|   |                                                                                                                                                                                 |
|   | At      September 30, 2009, the scheduled maturities of certificate accounts are      as follows:                                                                                    |

|   | 2010                                                                                                                                                                                              |   | $      | 163,502 |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|   | 2011                                                                                                                                                                                              |   |   | 41,388  |   |
|   | 2012                                                                                                                                                                                              |   |   | 9,135   |   |
|   | 2013                                                                                                                                                                                              |   |   | 2,453   |   |
|   | After      2013                                                                                                                                                                                   |   |   | 6       |   |
|   |                                                                                                                                                                                              |   |   |    |   |
|   | Total                                                                                                                                                                                             |   | $      | 216,484 |   |
|   |                                                                                                                                                                                              |   |   |    |   |
|   | Deposits      from directors, executive officers, principal shareholders and their      affiliates totaled $348 and $465 for the years ended September 30,      2009 and 2008, respectively. |   |   |    |   |

----

----

| Note 8 | Borrowed      Funds Borrowed funds consist of the following at September  30: |
|--------|------------------------------------------------------------------------------------|

|   |                                                                                                                |   | 2009   |      |   | 2008   |   |
|--------|---------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|   |                                                                                                                |   | Rates  |      |   | Amount |   |   | Rates |   |   | Amount |   |
|   |                                                                                                                |   |   |      |   |   |   |   |   |   |   |   |   |
|   | Federal      Home Loan Bank (FHLB):                                                                                 |   |   |      |   |   |   |   |   |   |   |
|   | Fixed-rate,      fixed-term advances                                                                                |   |   | 0.96-5.48 | %      |   | $      | 99,600 |   |   |   | 2.88-5.48 | % |   | $ | 110,245 |   |
|   | Adjustable      rate advances                                                                                       |   |   | 0.36      | %      |   |   | 7,205 |   |   |   |   |   |   |   | 0 |   |
|   |                                                                                                                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Totals                                                                                                              |   |   |      |   |   | $      | 106,805 |   |   |   |   |   |   | $ | 110,245 |   |
|   |                                                                                                                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | The      following is a summary of scheduled maturities of fixed-term borrowed      funds as of September 30, 2009: |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Weighted |   |   |   |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|--------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Average  |   |   | Total  |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Rate     |   |   | Amount |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |   |   |   |
|   | 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 4.01   | %      |   | $      | 35,400 |   |
|   | 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 4.12   | %      |   |   | 33,800 |   |
|   | 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 4.46   | %      |   |   | 16,000 |   |
|   | 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 3.99   | %      |   |   | 6,750 |   |
|   | 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     | 4.45   | %      |   |   | 6,150 |   |
|   | After      2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     | 4.05   | %      |   |   | 1,500 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |   |   |   |   |   |
|   | Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |     |   |   |   | $      | 99,600 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |   |   |   |   |   |   |
|   | Actual      maturities may differ from the scheduled principal maturities due to call      options on the various advances.The      Company has a master contract agreement with the Federal Home Loan Bank      that provides for borrowing up to the maximum of 75% of the book value of      the Company's qualifying one- to four-family residential real estate      loans.  The FHLB provides both fixed and floating rate      advances.  Floating rates are tied to short-term market rates of      interest, such as London InterBank Offered Rate (LIBOR), federal funds, or      Treasury bill rates.  Advances with call provisions permit the      FHLB to request payment beginning on the call date and quarterly      thereafter.  FHLB advances are subject to a prepayment penalty      if they are repaid prior to maturity.  FHLB advances are also      secured by FHLB stock owned by the Company of $6,040 and $5,787 at      September 30, 2009 and 2008, respectively. |   |

----

----

| Note 8 | Borrowed      Funds (Continued) At September 30, 2009, the Company’s available and unused portion of      this borrowing agreement totaled approximately $55,300. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                         |
| Note 9 | Income      Taxes The components of the provision (benefit) for income taxes are as      follows:                                                                       |

|   |                                            |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------|-------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                            |   |   |   |   |   |   |   |   |   |
|   | Current      tax expense (benefit):             |   |   |   |   |   |   |   |   |   |
|   | Federal                                         |   | $      | (1,145 | )      |   | $      | 894    |   |   | $ | 580 |   |
|   | State                                           |   |   | (313   | )      |   |   | 298    |   |   |   | 98 |   |
|   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total      current tax expense (benefit)        |   |   | (1,458 | )      |   |   | 1,192  |   |   |   | 678 |   |
|   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Deferred      tax benefit:                      |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Federal                                         |   |   | (505   | )      |   |   | (140   | )      |   |   | (190 | ) |
|   | State                                           |   |   | (126   | )      |   |   | (44    | )      |   |   | (40 | ) |
|   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total      deferred tax benefit                 |   |   | (631   | )      |   |   | (184   | )      |   |   | (230 | ) |
|   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total      provision (benefit) for income taxes |   | $      | (2,089 | )      |   | $      | 1,008  |   |   | $ | 448 |   |

----

----

| Note 9 | Income      Taxes (Continued) Deferred income taxes are provided for the temporary differences      between the financial reporting basis and the tax basis of the Company’s      assets and liabilities.  The major components of net deferred      tax asset at September 30 are as follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                      |   | 2009   |   |   | 2008   |   |
|--------|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   |                                                      |   |   |   |   |   |   |
|   | Deferred      tax assets:                                 |   |   |   |   |   |   |
|   | Mutual      savings bank conversion costs                 |   | $      | 0      |   |   | $      | 4 |   |
|   | Director/officer      compensation plans                  |   |   | 1,178  |   |   |   | 1,202 |   |
|   | Deferred      loan cost/fees                              |   |   | 54     |   |   |   | 0 |   |
|   | Allowance      for loan losses                            |   |   | 530    |   |   |   | 264 |   |
|   | Net      unrealized loss on securities available for sale |   |   | 3,534  |   |   |   | 1,402 |   |
|   | Purchase      accounting adjustments                      |   |   | 74     |   |   |   | 94 |   |
|   |                                                      |   |   |   |   |   |   |   |   |
|   | Deferred      tax assets                                  |   |   | 5,370  |   |   |   | 2,966 |   |
|   |                                                      |   |   |   |   |   |   |   |   |
|   | Deferred      tax liabilities:                            |   |   |   |   |   |   |   |   |
|   | Deferred      loan costs/fees                             |   |   | 0      |   |   |   | (60 | ) |
|   | Office      properties and equipment                      |   |   | (37    | )      |   |   | (159 | ) |
|   | Federal      Home Loan Bank stock                         |   |   | (67    | )      |   |   | (67 | ) |
|   | Prepaids                                                  |   |   | (14    | )      |   |   | (36 | ) |
|   | Core      deposit intangible                              |   |   | (365   | )      |   |   | (486 | ) |
|   |                                                      |   |   |   |   |   |   |   |   |
|   | Deferred      tax liabilities                             |   |   | (483   | )      |   |   | (808 | ) |
|   |                                                      |   |   |   |   |   |   |   |   |
|   | Net      deferred tax asset                               |   | $      | 4,887  |   |   | $      | 2,158 |   |

----

----

| Note 9 | Income      Taxes (Continued) A summary of the sources of differences between income taxes at the      federal statutory rate and the provision for income taxes for the years      ended September 30 follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2009   |   |   | 2008           |   |   | 2007   |   |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------------|--------|--------|--------|--------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   | Percent        |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   | of      Pretax |   |   |   |   |   | of      Pretax |   |   |   |   |   | of      Pretax |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Amount |   |   | Income         |   |   | Amount |   |   | Income |   |   | Amount |   |   | Income |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         | Tax      expense (benefit) at statutory rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | (1,794 | )      |           |   | 34.0   | %      |   | $ | 844 |   |   |   | 34.0 | % |   | $ | 405 |   |   |   | 34.0 | % |
|         | Increase      (decrease) in taxes resulting from state                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (295   | )      |           |   | 5.60   | %      |   |   | 164 |   |   |   | 6.60 | % |   |   | 43 |   |   |   | 3.60 | % |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         | Total      provision (benefit) for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | (2,089 | )      |           |   | 39.6   | %      |   | $ | 1,008 |   |   |   | 40.6 | % |   | $ | 448 |   |   |   | 37.6 | % |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Note      10 | Retirement      Plans 401(k)      PlanThe      Company sponsors a 401(k) profit sharing plan that covers substantially      all employees.  Employees may make pretax voluntary      contributions to the plan which are matched in part by the      Company.  Employer matching contributions to the plan were $91,      $85, and $84 for 2009, 2008, and 2007, respectively.Supplemental      Executive and Director Retirement PlanThe      Company maintained an unfunded Supplemental Executive Retirement Plan      (SERP) providing retirement benefits for key employees designated by the      Board of Directors.  Benefits under the SERP generally were      based on the key employees' years of service and compensation during the      years preceding retirement.  In May 2009, any additional      contributions to the SERP were suspended.  In September 2009,      members of the current executive management team voluntarily surrendered      the SERP.  The balance remaining in the Supplemental Executive      and Director Retirement Plan is for former Executive Management and      current and former Directors.The      Company also maintains an unfunded Directors’ Retirement      Plan.  The benefit amounts are determined by individual director      agreements. |

----

----

| Note 10 | Retirement Plans      (Continued) The      components of the SERP and Directors' Retirement plans' cost at September      30 are summarized as follows: |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                                                                                             |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |
|   | Beginning      accrued benefit cost                                                                                                                                                                                                                              |   | $      | 2,444  |   |   | $      | 2,149  |   |   | $ | 1,613 |   |
|   |                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Service      cost                                                                                                                                                                                                                                                |   |   | 19     |   |   |   | 54     |   |   |   | 64 |   |
|   | Interest      cost                                                                                                                                                                                                                                               |   |   | 166    |   |   |   | 158    |   |   |   | 148 |   |
|   | Amortization      of prior service costs                                                                                                                                                                                                                         |   |   | 49     |   |   |   | 91     |   |   |   | 117 |   |
|   |                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Net      periodic benefit cost                                                                                                                                                                                                                                   |   |   | 234    |   |   |   | 303    |   |   |   | 329 |   |
|   | Benefits      paid                                                                                                                                                                                                                                               |   |   | (15    | )      |   |   | (8     | )      |   |   | 0 |   |
|   | Curtailment      and settlement                                                                                                                                                                                                                                  |   |   | (232   | )      |   |   | 0      |   |   |   | 207 |   |
|   |                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Ending      accrued benefit cost                                                                                                                                                                                                                                 |   | $      | 2,431  |   |   | $      | 2,444  |   |   | $ | 2,149 |   |
|   |                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|   | The      following table sets forth the change in projected benefit obligation and      change in plan assets, funded status of the SERP and Directors' Retirement      plans, and net liability recognized in the Company's balance sheet at      September 30: |

|   |                                                 |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                 |   |   |   |   |   |   |   |   |   |
|   | Change      in benefit obligation:                   |   |   |   |   |   |   |   |   |   |
|   | Projected      benefit obligation, beginning of year |   | $      | 2,751  |   |   | $      | 2,627  |   |   | $ | 2,646 |   |
|   | Service      cost                                    |   |   | 19     |   |   |   | 54     |   |   |   | 64 |   |
|   | Interest      cost                                   |   |   | 166    |   |   |   | 158    |   |   |   | 148 |   |
|   | Curtailment      and settlement                      |   |   | (585   | )      |   |   | 0      |   |   |   | (124 | ) |
|   | Actuarial      loss (gain)                           |   |   | 318    |   |   |   | (80    | )      |   |   | (107 | ) |
|   | Benefits      paid                                   |   |   | (15    | )      |   |   | (8     | )      |   |   | 0 |   |
|   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Projected      benefit obligation, end of year       |   | $      | 2,654  |   |   | $      | 2,751  |   |   | $ | 2,627 |   |
|   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Change      in plan assets:                          |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Plan      assets at fair value, beginning of year    |   | $      | 0      |   |   | $      | 0      |   |   | $ | 0 |   |
|   | Actual      return on plan assets                    |   |   | 0      |   |   |   | 0      |   |   |   | 0 |   |
|   | Company      contributions                           |   |   | 15     |   |   |   | 8      |   |   |   | 0 |   |
|   | Benefits      paid                                   |   |   | (15    | )      |   |   | (8     | )      |   |   | 0 |   |
|   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Plan      assets at fair value, end of year          |   | $      | 0      |   |   | $      | 0      |   |   | $ | 0 |   |

----

----

| Note 10 | Retirement      Plans (Continued) Weighted average assumptions used in determining the benefit      obligation and net pension costs as of September 30 are as    follows: |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                        |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                                        |   |   |   |   |   |   |   |   |   |
|   | Benefit      obligation actuarial assumptions:                                                                                              |   |   |   |   |   |   |   |   |   |
|   | Discount      rate                                                                                                                          |   |   | 5.00   | %      |   |   | 6.25   | %      |   |   | 6.00 | % |
|   | Rate      of compensation increase                                                                                                          |   |   | N/A    |   |   |   | 5.00   | %      |   |   | 5.00 | % |
|   |                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Net      pension cost actuarial assumption:                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Discount      rate                                                                                                                          |   |   | 6.25   | %      |   |   | 6.00   | %      |   |   | 5.75 | % |
|   | Expected      long-term rate of return on plan assets                                                                                       |   |   | N/A    |   |   |   | N/A    |   |   |   | N/A |   |
|   | Rate      of compensation increase                                                                                                          |   |   | 5.00   | %      |   |   | 5.00   | %      |   |   | 5.00 | % |
|   |                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Estimated      future benefit payments as of September 30, 2009, which reflect expected      future service, as appropriate, are asfollows: |

|   | 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 19     |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|   | 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 56     |   |
|   | 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 119    |   |
|   | 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 269    |   |
|   | 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 270    |   |
|   | 2015-2019                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 1,376  |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |
|   | Employee      Stock Ownership PlanThe      Board of Directors approved an Employee Stock Ownership Plan (ESOP) that      became effective March 29, 2004.  The Plan is designed to      provide eligible employees the advantage of ownership of Company      stock.  Employees are eligible to participate in the Plan after      reaching age twenty-one, completing one year of service, and working at      least one thousand hours of consecutive service during the      year.  Contributions are allocated to eligible participants on      the basis of compensation.  In      the third quarter of fiscal 2009, contributions to the ESOP were      suspended. |

----

----

| Note 10 | Retirement      Plans      (Continued) The      ESOP borrowed $1,192 from the Company to finance the purchase of 227,821      shares in connection with the initial public offering.  The loan      is payable in annual installments over ten years at an annual interest      rate equal to 5%.The      ESOP borrowed $3,415 from the Company to finance the purchase of 341,501      shares in connection with the second-step conversion.  The loan      is payable in annual installments over ten years at an annual interest      rate of 4.9%.The      loans can be prepaid without penalty.  Loan payments are      principally funded by cash contributions from the Company, subject to      federal tax law limits.Shares      used as collateral to secure the loan are released and available for      allocation to eligible employees as the principal and interest on the loan      are paid.  Employees become fully vested in their ESOP account      after five years of service.  Dividends on unallocated shares      are generally applied toward payment of the loan.  ESOP shares      committed to be released are considered outstanding in determining      earnings per share.Contribution      expense to the ESOP is based on the fair value (average stock price) of      the shares scheduled to be released and totaled $276 as of June      2009.  Approximately one-tenth of the shares are scheduled to be      released each year.  The cost of all unallocated shares held by      the ESOP has been reflected in the consolidated balance sheets as a      reduction to equity.The      ESOP shares as of September 30, 2009, were as    follows: |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Allocated                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 176,516 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|   | Committed      to be released                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 28,466  |   |
|   | Unallocated                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 358,502 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |
|   | Estimated      fair value of unallocated shares held                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 1,703   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |
|   | Effective      December 2009, the ESOP was terminated and the allocated ESOP shares will      be merged into the Citizens Community Federal 401K as of December 31,      2009.  The termination will have no material impact on future      earnings; however capital at the bank level will increase by approximately      $3.3 million.  With this increase, the Company anticipates      capital levels at the bank will be considered well capitalized for all      regulatory capital requirements. |

----

----

| Note 11 | Leases The      Company leases certain branch facilities and its administrative offices      under operating leases.  Rent expense under these operating      leases was $897, $337, and $302, for the years ended September 30, 2009,      2008, and 2007, respectively.Future      minimum lease payments by year and in aggregate under the original terms      of the noncancelable operating leases consist of the      following: |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         | 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 986    |   |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|         | 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 921    |   |
|         | 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 869    |   |
|         | 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 759    |   |
|         | 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 379    |   |
|         | After      2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 30     |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 3,944  |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |
| Note      12 | Stock-Based      Compensation Plans Recognition      and Retention PlansOn      February 4, 2005, shareholders approved the Company’s 2004 Recognition and      Retention Plan (Recognition Plan) which authorized the Board of Directors      to award up to 113,910 shares of common stock.  On February 4,      2005, and November 5, 2005, the Board of Directors granted 63,789 and      6,833 shares, respectively.  The market value of the shares      awarded at the grant date amounted to $449 and $42, respectively, and has      been recognized in the accompanying balance sheet as unearned stock-based      compensation.  The market value of the shares awarded is being      recognized as compensation expense ratably over the five-year vesting      period.  During fiscal years 2009, 2008, and 2007, 5,695 shares,      910 shares, and 2,733 shares, respectively, were      forfeited.  Compensation expense related to the Recognition Plan      was $63, $92, and $90, for the years ended September 30, 2009, 2008, and      2007, respectively. |   |   |   |   |

----

----

| Note 12 | Stock-Based      Compensation Plans (Continued) Stock      Option PlanIn      February 2005, the 2004 stock option and incentive plan was approved by      Company's shareholders.  The plan provides for the grant of      nonqualified and incentive stock options.  The plan provides for      the grant of options for up to 284,778 shares.  At September 30,      2009, 202,197 options had been granted under this plan at a weighted      average exercise price of $7.04 per share.  Exercised options      will be satisfied by the issuance of previously unissued      shares.  Options vest over a five-year      period.  Unexercised nonqualified stock options expire in 15      years and unexercised incentive stock options expire in 10      years.  The fair value of stock options granted in 2005 was      estimated at the date of grant using the Black-Scholes      methodology.  No options were granted in 2009, 2008, and      2007.  The following assumptions were made in estimating the      fair value for options granted for the year ended September 30,      2005. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                        |   | 2005   |   |
|--------|---------------------------------------------|--------|--------|--------|
|   |                                        |   |   |   |
|   | Dividend      yield                         |   |   | 1.49   | % |
|   | Risk-free      interest rate                |   |   | 4.16   | % |
|   | Weighted      average expected life (years) |   |   | 10     |   |
|   | Expected      volatility                    |   |   | 16.08  | % |

----

----

| Note 12 | Stock-Based      Compensation Plans (Continued) The weighted average fair value of options at their grant date, using      the assumptions shown above, was computed at $3.66 per      share.  Total compensation expense of $48 and $71 was recognized      during 2009 and 2008, respectively.  As of September 30,      2009 and 2008, there was $12 and $88, respectively, of total unrecognized      compensation cost related to the nonvested share-based compensation      arrangement, which is expected to be recognized over the next    year. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                           |   | 2009   |    |   | 2008     |   |    | 2007   |   |
|--------|----------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|----------|--------|---------|--------|--------|
|   |                                                                                                           |   |   |    |   | Weighted |   |    |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
|   |                                                                                                           |   | Option |    |   | Average  |   |    | Option |   |   | Average |   |   | Option |   |   | Average |   |
|   |                                                                                                           |   | Shares |    |   | Price    |   |    | Shares |   |   | Price |   |   | Shares |   |   | Price |   |
|   |                                                                                                           |   |   |    |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |
|   | Outstanding      - Beginning of year                                                                           |   |   | 185,110 |   |     | $      | 7.04    |   |   |   | 190,806 |   |   | $ | 7.04 |   |   |   | 202,197 |   |   | $ | 7.04 |   |
|   | Options      forfeited                                                                                         |   |   | (71,195 | )      |     |   |    |   |   |   | (5,696 | ) |   |   |   |   |   |   | (6,833 | ) |   |   |   |   |
|   | Options      exercised                                                                                         |   |   | 0       |   |     |   |    |   |   |   | 0 |   |   |   |   |   |   |   | (4,558 | )  |   |   |   |   |
|   |                                                                                                           |   |   |    |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Outstanding      - End of Year                                                                                 |   |   | 113,915 |   |     | $      | 7.04    |   |   |   | 185,110 |   |   | $ | 7.04 |   |   |   | 190,806 |   |   | $ | 7.04 |   |
|   |                                                                                                           |   |   |    |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Exercisable      at September 30, 2009                                                                         |   |   |    |   |     |   | 92,836  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Weighted      average fair value of options granted                                                            |   |   | $       | 3.66   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Available      for future grant at year-end                                                                    |   |   |    |   |     |   | 166,305 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                           |   |   |    |   |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | The      following table summarizes information about Plan awards outstanding at      September 30, 2009: |

|   | Options      Outstanding |                            |
|--------|--------------------------|---------------------------------|
|   | Number                   | Weighted      Average           |   | Weighted      Average |   |
|   | Outstanding              | Remaining      Contractual Life |   | Exercise      Price |   |
|   |                     |                            |   |   |   |
|   | 48,411                   |        5.42 years          |   | $ | 7.04 |   |
|   | 65,504                   | 10.42      years                |   | $ | 7.04 |   |

----

----

| Note 12 | Stock-Based      Compensation Plans (Continued) In February 2008, the 2008 Equity Incentive Plan was approved by      shareholders.  The aggregate number of shares of the Company      reserved and available for issuance under the Incentive Plan is      597,605.  Under the Plan, the Compensation Committee may grant      stock options and stock appreciation rights that, upon exercise, result in      the issuance of 426,860 shares of Company’s common stock.  The      Committee may grant restricted stock and restricted stock units for an      aggregate of 170,745 shares of the Company’s common stock.  As      of September 30, 2009, no shares have been granted under the 2008 Equity      Incentive Plan.                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Note 13 | Earnings      Per Share Basic and diluted earnings per share data are based on the      weighted-average number of common shares outstanding during each      period.  Diluted earnings per share are further adjusted for      potential common shares that were dilutive and outstanding during the      period.  Potential common shares consist of stock options      outstanding under the incentive plan.  The dilutive effect of      potential common shares is computed using the treasury stock      method.  All stock options are assumed to be 100% vested for      purposes of the earnings per share computations.  The      computation of earnings per share for the years ended September 30, 2009,      2008, and 2007, are as follows: |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |   |   |      |   |   |
|         | Weighted      average shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 5,365,122 |   |   |   | 6,225,270 |   |   |   | 6,709,115 |   |
|         | Effect      of dilutive stock options outstanding                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 0         |   |   |   | 17,370    |   |   |   | 25,834 |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
|         | Diluted      weighted average shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 5,365,122 |   |   |   | 6,242,640 |   |   |   | 6,734,949 |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
|         | Basic      earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | (0.59     | )      |   | $      | 0.24      |   |   | $ | 0.11 |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
|         | Diluted      earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | (0.59     | )      |   | $      | 0.24      |   |   | $ | 0.11 |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Note      14 | Commitments      and ContingenciesFinancial      Instruments with Off-Balance-Sheet RiskThe      Company’s financial statements do not reflect various commitments and      contingent liabilities which arise in the normal course of business and      which involve elements of credit risk, interest rate risk, and liquidity      risk.  These commitments and contingent liabilities are      commitments to extend credit. |

----

----

| Note 14 | Commitments and      Contingencies (Continued) A summary of the Company’s commitments and contingent liabilities at      September 30 follows: |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009   |   |   | 2008   |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
|   | Commitments      to extend credit - Fixed rate 4.25 - 10.25% in 2009 and 5.00 - 9.90% in      2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 2,569  |   |   | $      | 360 |   |
|   | Unused      lines of credit:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|   | Real      estate equity advance plan (REAP)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 615    |   |   |   | 660 |   |
|   | Kwik      cash and lines of credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 2,299  |   |   |   | 2,254 |   |
|   | MasterCard      and VISA credit cards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 5,210  |   |   |   | 4,687 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|   | Totals                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 10,693 |   |   | $      | 7,961 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|   | Commitments      to extend credit are agreements to lend to a customer as long as there is      no violation of any conditions established in the      contract.  Commitments generally have fixed expiration dates or      other termination clauses and may require payment of a fee.  A      portion of the commitments is expected to be drawn upon, thus representing      future cash requirements.  Management evaluates each customer’s      creditworthiness on a case-by-case basis.  The amount of      collateral obtained upon extension of credit is based on management’s      credit evaluation of the customer.  Collateral held varies but      may include real estate and personal property.  Substantial      amounts of unsecured personal loans are granted by the      Company.  However, ongoing credit evaluations of customers are      performed.Concentration      of Credit RiskThe      majority of the Company’s loans and commitments have been granted to      customers in the Company’s local market areas.  The      concentrations of credit by type are set forth in Note      6.  Management believes the diversity of the various economies      will prevent significant losses through the current economic      downturn.ContingenciesIn      the normal course of business, the Company occasionally becomes involved      in various legal proceedings.  In the opinion of management, any      liability from such proceedings would not have a material adverse effect      on the business or financial condition of the  Company. |

----

----

| Note 15 | Capital      Requirements The      Bank is subject to various regulatory capital requirements administered by      the federal agencies.  Failure to meet minimum capital      requirements can initiate certain mandatory, and possibly additional      discretionary, actions by regulators that, if undertaken, could have a      direct material effect on the Bank’s financial      statements.  Under capital adequacy guidelines and the      regulatory framework for prompt corrective action, the Bank must meet      specific capital guidelines that involve quantitative measures of the      Bank’s assets, liabilities, and certain off-balance-sheet items as      calculated under regulatory accounting practices.  The capital      amounts and classification are also subject to qualitative judgments by      the regulators about components, risk weightings, and other      factors.Quantitative      measures established by regulation to ensure capital adequacy require the      Bank to maintain minimum amounts and ratios (set forth in the table below)      of total and Tier I capital to risk-weighted assets and of Tier I capital      to average assets.As      of September 30, 2009, the Bank’s total risk-based capital was 9.6%,      classified as adequately capitalized.  As of that same date, the      Tier 1 capital to risk-weighted assets and the Tier 1 capital to adjusted      assets were both categorized as well capitalized.The      Company and the Bank cannot declare dividends without prior approval of      the Office of Thrift Supervision as of September 30, 2009, because of the      need to maintain satisfactory regulatory determined capital      ratios. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Note      15 | Capital      Requirements (Continued) The Bank’s actual and regulatory capital amounts and ratios are      presented in the following table: |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |  Actual |   |   |        For      CapitalAdequacy Purposes  |   |   | To      Be Well-Capitalized UnderPrompt CorrectiveActions      Provisions  |   |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |  Amount |   |   | Ratio                                               |   |   |  Amount                                                                    |   |   |   | Ratio |   |   | Amount |   |   |   | Ratio |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|         | September      30, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|         | Total      risk-based capital (to risk-weighted assets)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $            | 52,081 |   |                                                |   | 9.6    | %                                                                               |   | $ | 43,630 |   | > |   |   | 8.0 | % |   | $ | 54,537 |   | > |   |   | 10.0 | % |
|         | Tier      1 capital:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         | To      risk-weighted assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |         | 51,074 |   |                                                |   | 9.4    | %                                                                               |   |   | 21,815 |   | > |   |   | 4.0 | % |   |   | 32,722 |   | > |   |   | 6.0 | % |
|         | To      adjusted total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |         | 51,074 |   |                                                |   | 8.9    | %                                                                               |   |   | 23,009 |   | > |   |   | 4.0 | % |   |   | 28,762 |   | > |   |   | 5.0 | % |
|         | Tangible      capital (to tangible assets)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |         | 51,074 |   |                                                |   | 8.9    | %                                                                               |   |   | 8,628 |   | > |   |   | 1.5 | % |   |   | N/A |   |   |   |   | N/A |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         | September      30, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         | Total      risk-based capital (to risk-weighted assets)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $            | 46,591 |   |                                                |   | 15.3   | %                                                                               |   | $ | 24,340 |   | > |   |   | 8.0 | % |   | $ | 30,425 |   | > |   |   | 10.0 | % |
|         | Tier      1 capital:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         | To      risk-weighted assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |         | 45,821 |   |                                                |   | 15.1   | %                                                                               |   |   | 12,170 |   | > |   |   | 4.0 | % |   |   | 18,255 |   | > |   |   | 6.0 | % |
|         | To      adjusted total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |         | 45,821 |   |                                                |   | 9.6    | %                                                                               |   |   | 19,023 |   | > |   |   | 4.0 | % |   |   | 23,778 |   | > |   |   | 5.0 | % |
|         | Tangible      capital (to tangible assets)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |         | 45,821 |   |                                                |   | 9.6    | %                                                                               |   |   | 7,134 |   | > |   |   | 1.5 | % |   |   | N/A |   |   |   |   | N/A |   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |         |   |   |                                                |   |   |                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Note      16 | Fair      Value Measurements The Company measures some of its assets on a fair value      basis.  Fair value is used on a recurring basis for certain      assets, such as securities available for sale and loans, in which fair      value is the primary basis of accounting.  Fair value is defined      as the price that would be received for the sale of an asset in an orderly      transaction between market participants at the measurement      date.  The Company applies the following fair value      hierarchy: Level      1: Quoted prices for identical assets in active markets that the Company      has the ability to access as of the measurement  date. |

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| Note 16 | Fair      Value Measurements (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    | Level      2:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Significant      other observable inputs other than Level 1 prices such as quoted prices      for similar assets or other inputs that are observable or can be      corroborated by observable market data. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|    | Level      3:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Significant      unobservable inputs that reflect the Company’s own assumptions about the      assumptions that market participants would use in pricing an      asset. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|    | In      estimating the fair values for securities available for sale, the Company      believes that independent third-party market prices are the best evidence      of exit price and, where available, bases its estimates on such      prices.  If such third-party market prices are not available,      valuations from an independent third-party are obtained.  Where      market observable data is not available due to market conditions in an      illiquid market, the valuation of financial instruments becomes more      subjective and involves substantial judgment.  Additionally,      there may be inherent risk in the valuation calculation and changes in      underlying assumptions, including estimates of future cash flow and      discount rates that could significantly affect future values. Level      3 assets are certain investments for which little or no market activity      exists or whose value of the underlying collateral is not market      observable.  With respect to mortgage-backed securities held as      investments by the Company, the credit markets continue to be disrupted      resulting in a continued dislocation and lack of trading      activity.  The valuation used both observable as well as      unobservable inputs to assist in the Level 3 valuation of      mortgage-backed securities, employing a methodology that considers future      cash flows along with risk-adjusted returns.  The inputs in this      methodology are as follows:  ability and intent to hold to      maturities, mortgage underwriting rates, market prices/conditions, loan      type, loan to value, strength of borrower, loan age, delinquencies,      prepayment/cash flows, liquidity, expected future cash flows, and rating      agency actions. |

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| Note 16 | Fair      Value Measurements (Continued) The following table summarizes securities available for sale measured      at fair value on a recurring basis at September30: |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                                                                                  |   | Fair      Value Measurements Using |   |   | Total        |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|--------------|--------|
|   |                                                                                                                                                                                                                                                  |   | Level      1                       |   |   | Level      2 |   |   | Level      3 |   |   | Fair      Value |   |
|   |                                                                                                                                                                                                                                                  |   |                               |   |   |         |   |   |   |   |   |   |   |
|   | 2009                                                                                                                                                                                                                                                  |   |                               |   |   |         |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                  |   |                               |   |   |         |   |   |   |   |   |   |   |
|   | Available      for sale securities                                                                                                                                                                                                                    |   | $                                  | 0      |   |         | $      | 19,698 |   |   | $ | 36,517 |   |   | $ | 56,215 |   |
|   |                                                                                                                                                                                                                                                  |   |                               |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
|   | 2008                                                                                                                                                                                                                                                  |   |                               |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                  |   |                               |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
|   | Available      for sale securities                                                                                                                                                                                                                    |   | $                                  | 0      |   |         | $      | 543 |   |   | $ | 61,233 |   |   | $ | 61,776 |   |
|   |                                                                                                                                                                                                                                                  |   |                               |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
|   | The      following table presents a reconciliation of residential mortgage-backed      securities measured at fair value on a recurring basis using significant      unobservable inputs (Level 3) for the fiscal year ended September 30,      2009: |

|   |                                                                                                                                                                                                               |   | Total      Fair Value |    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|---------|
|   |                                                                                                                                                                                                               |   | 2009                  |    |   | 2008 |   |
|   |                                                                                                                                                                                                               |   |                  |    |   |   |   |
|   | Beginning      balance                                                                                                                                                                                             |   | $                     | 61,233  |   |   | $ | 38,937 |   |
|   | Total      gains or losses (realized/unrealized):                                                                                                                                                                  |   |                  |    |   |   |   |   |   |
|   | Included      in earnings                                                                                                                                                                                          |   |                  | (7,236  | ) |   |   | 0 |   |
|   | Included      in other comprehensive loss                                                                                                                                                                          |   |                  | (6,251  | ) |   |   | (4,159 | ) |
|   | Purchases,      sales, issuances, and settlements, net                                                                                                                                                             |   |                  | (11,229 | ) |   |   | 26,455 |   |
|   |                                                                                                                                                                                                               |   |                  |    |   |   |   |   |   |
|   | Ending      balance                                                                                                                                                                                                |   | $                     | 36,517  |   |   | $ | 61,233 |   |
|   |                                                                                                                                                                                                               |   |                  |    |   |   |   |   |   |
|   | The      Company has only partially applied the provisions of FASB ASC      820-10.  These provisions have not been applied to goodwill,      intangible assets, or other real estate/collateral  owned. |

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| Note 17 | Fair      Values of Financial Instruments Current      accounting standards require that the Company disclose estimated fair      values for its financial instruments.  Fair value estimates,      methods, and assumptions for the Company’s financial instruments are      summarized below.Cash      and Cash EquivalentsThe      carrying values approximate the fair values for these assets.Interest-Bearing      DepositsThe      carrying values approximate the fair values for these assets.LoansFair      value is estimated for portfolios of loans with similar financial      characteristics.  Loans are segregated by type such as      residential mortgage and consumer.  The fair value of loans is      calculated by discounting scheduled cash flows through the estimated      maturity using market discount rates reflecting the credit and interest      rate risk inherent in the loan.  The estimate of maturity is      based on the Company’s repayment schedules for each loan      classification.Federal      Home Loan Bank StockFair      value for the Federal Home Loan Bank stock is based on its redeemable      (carrying) value, since the market for this stock is      restricted. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 17 | Fair      Values of Financial Instruments (Continued) DepositsThe      fair value of deposits with no stated maturity, such as demand deposits,      savings accounts, and money market accounts, is the amount payable on      demand at the reporting date.  The fair value of certificate      accounts is calculated by using discounted cash flows applying interest      rates currently being offered on similar certificates.Borrowed      FundsThe      fair value of borrowed funds is estimated using discounted cash flows      based on the Bank’s current incremental borrowing rates for similar      borrowing arrangements.Accrued      InterestThe      carrying amount of accrued interest approximates its fair      value.Off-Balance-Sheet      InstrumentsThe      fair value of commitments would be estimated using the fees currently      charged to enter into similar agreements, taking into account the      remaining terms of the agreements, the current interest rates, and the      present creditworthiness of the customers.  Since this amount is      immaterial, no amounts for fair value are  presented. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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| Note 17 | Fair      Values of Financial Instruments (Continued) The carrying amount and estimated fair value of financial instruments      at September 30 were as follows: |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2009     |    |   | 2008      |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|-----------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     |    |   | Estimated |   |   |   |   |   | Estimated |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Carrying |    |   | Fair      |   |   | Carrying |   |   | Fair |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Amount   |    |   | Value     |   |   | Amount |   |   | Value |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     |    |   |      |   |   |   |   |   |   |   |
|   | Financial      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |     |    |   |      |   |   |   |   |   |   |   |
|   | Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $        | 43,191  |   |      | $      | 43,191 |   |   | $ | 23,666 |   |   | $ | 23,666 |   |
|   | Interest-bearing      deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |     | 2,458   |   |      |   | 2,458 |   |   |   | 371 |   |   |   | 371 |   |
|   | Securities      available for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     | 56,215  |   |      |   | 56,215 |   |   |   | 61,776 |   |   |   | 61,776 |   |
|   | Loans      receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |     | 440,545 |   |      |   | 449,666 |   |   |   | 368,518 |   |   |   | 366,018 |   |
|   | FHLB      stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |     | 6,040   |   |      |   | 6,040 |   |   |   | 5,787 |   |   |   | 5,787 |   |
|   | Accrued      interest receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     | 2,179   |   |      |   | 2,179 |   |   |   | 1,726 |   |   |   | 1,726 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
|   | Financial      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |     |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
|   | Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |     | 409,311 |   |      |   | 413,511 |   |   |   | 297,243 |   |   |   | 301,803 |   |
|   | Borrowed      funds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |     | 106,805 |   |      |   | 112,009 |   |   |   | 110,245 |   |   |   | 111,339 |   |
|   | Accrued      interest payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     | 351     |   |      |   | 351 |   |   |   | 412 |   |   |   | 412 |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
|   | LimitationsFair      value estimates are made at a specific time, based on relevant market      information and information about the financial      instrument.  These estimates do not reflect any premium or      discount that could result from offering for sale at one time the      Company’s entire holdings of a particular financial      instrument.  Because no market exists for a significant portion      of the Company’s financial instruments, fair value estimates are based on      judgments regarding future expected loss experience, current economic      conditions, risk characteristics of various financial instruments, and      other factors.  These estimates are subjective in nature and      involve uncertainties and matters of significant judgment and therefore      cannot be determined with precision.  Changes in assumptions      could significantly affect the estimates.  Fair value estimates      are based on existing on- and off-balance-sheet financial instruments      without attempting to estimate the value of anticipated future business      and the value of assets and liabilities that are not considered financial      instruments.  Significant assets and liabilities that are not      considered financial assets or liabilities include premises and equipment,      other assets, and otherliabilities. |

----

----

| Note 17 | Fair      Values of Financial Instruments (Continued) In addition, the tax ramifications related to the realization of the      unrealized gains or losses can have a significant effect on fair value      estimates and have not been considered in the estimates. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                      |
| Note 18 | Other      Comprehensive Income (Losses)The      activity in other comprehensive income (loss) and related tax effects are      as follows:                                                                                                                               |
|    |                                                                                                                                                                                                                                                                      |

|   |                                                                                                                                                            |   | Fiscal      Year Ended September      30, |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|   |                                                                                                                                                            |   | 2009                                      |   |   | 2008 |   |   | 2007 |   |
|   |                                                                                                                                                            |   |                                      |   |   |   |   |   |   |   |
|   | Net      unrealized gain (loss) on securities available for sale, net of tax      expense (benefit) of ($4,664) in 2009, ($1,453) in 2008, and      $53 in 2007 |   | $                                         | (8,662 | ) |   | $ | (2,696 | ) |   | $ | 103 |   |
|   |                                                                                                                                                            |   |                                      |   |   |   |   |   |   |   |   |   |   |
|   | Reclassification      adjustment for losses realized in income, net of tax expense of      $2,533                                                               |   |                                      | 4,703  |   |   |   | 0 |   |   |   | 0 |   |
|   |                                                                                                                                                            |   |                                      |   |   |   |   |   |   |   |   |   |   |
|   | Pension      liability adjustments, net of tax expense (benefit) of $33 in 2009, $68 in      2008, and ($193) in 2007                                           |   |                                      | 50     |   |   |   | 102 |   |   |   | (284 | ) |
|   |                                                                                                                                                            |   |                                      |   |   |   |   |   |   |   |   |   |   |
|   | Other      comprehensive loss                                                                                                                                   |   | $                                         | (3,909 | ) |   | $ | (2,594 | ) |   | $ | (181 | ) |
|   |                                                                                                                                                            |   |                                      |   |   |   |   |   |   |   |   |   |   |
|   | The      components of accumulated other comprehensive loss, net of income      taxes:                                                                          |   |                                      |   |   |   |   |   |   |   |   |   |   |

|   |                                                                                                                                  |   | 2009   |   |   | 2008   |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                                  |   |   |   |   |   |   |
|   | Net      unrealized loss on securities available for sale, net of tax expense      (benefit) of ($3,534) in 2009 and ($1,402) in 2008 |   | $      | (6,563 | )      |   | $      | (2,605 | ) |
|   |                                                                                                                                  |   |   |   |   |   |   |   |   |
|   | Pension      liability adjustments, net of tax benefit of ($88) in 2009 and ($121) in      2008                                       |   |   | (132   | )      |   |   | (181 | ) |
|   |                                                                                                                                  |   |   |   |   |   |   |   |   |
|   | Accumulated      other comprehensive loss                                                                                             |   | $      | (6,695 | )      |   | $      | (2,786 | ) |

----

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| Note 19 | Condensed      Parent Company Only Financial Statements The      following condensed balance sheets as of September 30, 2009 and 2008,      and condensed statements of operations and cash flows for each of the      years in the three-year period ended September 30, 2009, for Citizens      Community Bancorp, Inc. should be read in conjunction with the      consolidated financial statements and the notes thereto.Balance      Sheets |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Assets                          |   | 2009   |   |   | 2008   |   |
|--------|---------------------------------|--------|--------|--------|--------|--------|--------|
|   |                            |   |   |   |   |   |   |
|   | Cash      and cash equivalents  |   | $      | 943    |   |   | $      | 14,754 |   |
|   | Investment      in subsidiary   |   |   | 51,120 |   |   |   | 50,109 |   |
|   | Note      receivable - ESOP     |   |   | 3,302  |   |   |   | 3,613 |   |
|   |                            |   |   |   |   |   |   |   |   |
|   | TOTAL      ASSETS               |   | $      | 55,365 |   |   | $      | 68,476 |   |
|   |                            |   |   |   |   |   |   |   |   |
|   | Stockholders'      Equity       |   |   |   |   |   |   |   |   |
|   |                            |   |   |   |   |   |   |   |   |
|   | TOTAL      STOCKHOLDERS' EQUITY |   | $      | 55,365 |   |   | $      | 68,476 |   |
|   |                            |   |   |   |   |   |   |   |   |
|   | Statements      of Operations   |

|   |                                                                                                         |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------|--------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                         |   |   |   |   |   |   |   |   |   |
|   | Income      - Interest and dividends                                                                         |   | $      | 128    |   |   | $      | 189    |   |   | $ | 240 |   |
|   | Expenses      - Other                                                                                        |   |   | 459    |   |   |   | 454    |   |   |   | 292 |   |
|   |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Loss      before provision for income taxes and equity in undistributed net income      (loss) of subsidiary |   |   | (331   | )      |   |   | (265   | )      |   |   | (52 | ) |
|   |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Benefit      for income taxes                                                                                |   |   | (140   | )      |   |   | (121   | )      |   |   | (43 | ) |
|   |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Loss      before equity in undistributed net income (loss) of    subsidiary                                  |   |   | (191   | )      |   |   | (144   | )      |   |   | (9 | ) |
|   |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Equity      in undistributed net income (loss) of subsidiary                                                 |   |   | (2,992 | )      |   |   | 1,618  |   |   |   | 752 |   |
|   |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Net      income (loss)                                                                                       |   | $      | (3,183 | )      |   | $      | 1,474  |   |   | $ | 743 |   |

----

----

| Note 19 | Condensed Parent      Company Only Financial Statements (Continued) |
|---------|--------------------------------------------------------------------------|
|    |                                                                     |
|    |  Statements of      Cash Flows                                      |

|   |                                                      |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|--------|-----------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|   |                                                      |   |   |    |   |   |   |   |   |   |
|   | Increase      (decrease) in cash and cash equivalents:    |   |   |    |   |   |   |   |   |   |
|   | Cash      flows from operating activities:                |   |   |    |   |   |   |   |   |   |
|   | Net      income (loss)                                    |   | $      | (3,183  | )      |   | $      | 1,474  |   |   | $ | 743 |   |
|   | Provision      for stock options                          |   |   | 48      |   |   |   | 71     |   |   |   | 75 |   |
|   | Adjustments      to reconcile net income to net cash      |   |   |    |   |   |   |   |   |   |
|   | provided      by operating activities - Equity in         |   |   |    |   |   |   |   |   |   |   |   |   |
|   | undistributed      (income) loss of subsidiary            |   |   | 2,992   |   |   |   | (1,618 | )      |   |   | (752 | ) |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Net      cash provided by (used in) operating activities  |   |   | (143    | )      |   |   | (73    | )      |   |   | 66 |   |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Cash      flows from investing activities:                |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Investment      in subsidiary                             |   |   | (7,573  | )      |   |   | 0      |   |   |   | (25,619 | ) |
|   | Loan      to ESOP                                         |   |   | 0       |   |   |   | 0      |   |   |   | (3,415 | ) |
|   | Principal      received on ESOP loan                      |   |   | 311     |   |   |   | 396    |   |   |   | 355 |   |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Net      cash provided by (used in) investing activities  |   |   | (7,262  | )      |   |   | 396    |   |   |   | (28,679 | ) |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Cash      flows from financing activities:                |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Sale      of common stock                                 |   |   | 0       |   |   |   | 0      |   |   |   | 51,238 |   |
|   | Repurchase      shares of common stock                    |   |   | (5,260  | )      |   |   | (7,855 | )      |   |   | 0 |   |
|   | Stock      options exercised                              |   |   | 0       |   |   |   | 0      |   |   |   | 32 |   |
|   | Cash      dividends paid                                  |   |   | (1,146  | )      |   |   | (1,344 | )      |   |   | (1,115 | ) |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Net      cash provided by (used in) financing activities  |   |   | (6,406  | )      |   |   | (9,199 | )      |   |   | 50,155 |   |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Net      increase (decrease) in cash and cash equivalents |   |   | (13,811 | )      |   |   | (8,876 | )      |   |   | 21,542 |   |
|   | Cash      and cash equivalents at beginning               |   |   | 14,754  |   |   |   | 23,630 |   |   |   | 2,088 |   |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Cash      and cash equivalents at end                     |   | $      | 943     |   |   | $      | 14,754 |   |   | $ | 23,630 |   |
|   |                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Supplemental      cash flow information:                  |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Cash      received during the year for income taxes       |   | $      | 140     |   |   | $      | 121    |   |   | $ | 43 |   |

----

----

| Note 20 | Subsequent      Events In accordance with the authoritative guidance for subsequent events,      the Company has evaluated subsequent events through December 21, 2009,      which represents the date these financial statements were issued, in order      to ensure that these financial statements include appropriate disclosure      of events both recognized in the financial statements as of September 30,      2009, and events which occurred subsequent to September 30, 2009, but were      not recognized in the financial statements.  As of December 21,      2009, there were no subsequent events which required recognition or      disclosure. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                     |   | HIGH   |   |   | LOW    |   |   | DIVIDENDS |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
|                                     |   |   |   |   |   |   |   |      |   |
|          Fiscal      2009 |   |   |   |   |   |   |   |      |   |
| First      Quarter                       |   | $      | 7.41   |   |   | $      | 5.80   |      |   | $ | 0.05 |   |
| Second      Quarter                      |   | $      | 7.39   |   |   | $      | 5.85   |      |   | $ | 0.05 |   |
| Third      Quarter                       |   | $      | 6.50   |   |   | $      | 5.27   |      |   | $ | 0.05 |   |
| Fourth      Quarter                      |   | $      | 6.38   |   |   | $      | 4.75   |      |   | $ | 0.05 |   |
|                                     |   |   |   |   |   |   |   |      |   |   |   |   |
|          Fiscal      2008 |   |   |   |   |   |   |   |      |   |   |   |   |
| First      Quarter                       |   | $      | 9.65   |   |   | $      | 8.50   |      |   | $ | 0.05 |   |
| Second      Quarter                      |   | $      | 9.29   |   |   | $      | 8.02   |      |   | $ | 0.05 |   |
| Third      Quarter                       |   | $      | 8.95   |   |   | $      | 7.25   |      |   | $ | 0.05 |   |
| Fourth      Quarter                      |   | $      | 8.50   |   |   | $      | 7.00   |      |   | $ | 0.05 |   |
|                                     |   |   |   |   |   |   |   |      |   |   |   |   |

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| STOCKHOLDERS      AND GENERAL INQUIRIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | TRANSFER      AGENT                                                                                                                                                                                                                                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Citizens      Community Bancorp, Inc. files an annual report with the Securities and      Exchange Commission on Form 10-K and three quarterly reports on Form      10-Q.  Copies of these forms are available by      request.  Requests, as well as inquiries from stockholders,      analysts and others seeking information about Citizens Community Bancorp,      Inc. should be directed to John D. Zettler, Senior Vice President and      Chief Financial Officer, at 2174 EastRidge Center, Eau Claire, WI 54701,      telephone (715) 836-9994. www.citizenscommunityfederal.net |   | Stockholders      should direct inquiries concerning their stock, change of name, address or      ownership; report lost certificates or consolidate accounts to our      transfer agent at 1-800-368-5948 or write:Registrar      and Transfer Co.10      Commerce DriveCranford,      NJ  070161-(800)      368-5948 |

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| Citizens      Community Bancorp, Inc. Board of Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Citizens      Community Federal Officers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Richard      McHugh, ChairmanThomas      C. Kempen, Vice      ChairmanBrian      R. SchillingDavid      B. WestrateJames      G. Cooley                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Timothy      J. Cruciani,      PresidentJohn      D. Zettler, SeniorVice President      and Chief      Financial OfficerRebecca      Johnson, SeniorVice      President, MIC/Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Citizens      Community Federal Locations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Administrative Offices2174      EastRidge CenterEau      Claire, WI 54701 Branch      Offices:Appleton      Branch3701      E. Calumet St.Appleton,      WI  54915 Black      River Falls Branch611      Highway 54 E.Black      River Falls, WI 54615 Chippewa      Falls Branch427      W.  Prairie View RoadChippewa      Falls, WI 54729 Eastside      Branch1028      N. Hillcrest ParkwayAltoona,      WI 54720 Fairfax      Branch219      Fairfax StreetAltoona,      WI 54720 Fond      du Lac Branch377      N. Rolling Meadows Dr.Fond      du Lac, WI  54936 Menomonie Branch180      Cedar Falls RdMenomonie,      WI 54751 Mondovi      Branch695      E. Main StreetMondovi,      WI 54755 |   | Neenah      Branch1155      Winneconne AveNeenah,      WI 54956 Oshkosh      Branch351      S. Washburn St.Oshkosh,      WI  54904 Plover      Branch250      Crossroads DrPlover,      WI 54467 Rice      Lake Branch2501      West Ave.Rice      Lake, WI 54868 Shawano      Branch1244      E Green Bay StShawano,      WI 54166 Westside      Branch2125      Cameron StreetEau      Claire, WI 54703 Wisconsin      Dells Branch130      Commerce St.Wisconsin      Dells, WI 53965 Wisconsin Rapids Branch4331      8th      St SWisconsin      Rapids, WI 54494 Michigan      Offices:Rochester      Hills Branch310      W. Tienken RoadRochester      Hills, MI  48306 |   | Lake      Orion Branch688      S. Lapeer RoadLake      Orion, MI  48362 Minnesota      Offices:Brooklyn      Park Branch8000      Lakeland Ave.Brooklyn      Park, MN 55445 Faribault      Branch150      Western Ave.Faribault,      MN 55021 Hutchinson      Branch1300      Trunk Hwy. 15 SHutchinson,      MN  55350 Mankato      Branch1410      Madison AvenueMankato,      MN 56001 Oakdale      Branch7035      10th Street NorthOakdale,      MN 55128 Oak      Park Heights Branch5815      Norell AveOak      Park Heights, MN 55082 Red Wing Branch295      Tyler Rd. SRed      Wing, MN  55066 Winona      Branch955      Frontenac Dr.Winona,      MN   55987 |

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| Independent AuditorsWipfli, LLP3703      Oakwood Hills PkwyEau      Claire, WI  54703 |   | Special CounselReinhart      Boerner Van Deuren s.c.N16      W23250 Stone Ridge Dr.Suite      1Waukesha,      WI  53188 |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

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