U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
                                   (Mark One)

 X   Quarterly report under Section 13 or 15(d) of the
     Securities Exchange Act of 1934

For the quarterly period ended June 30, 1999

     Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from ____________ to ______________

Commission file number 000-22547

                        CITIZENS COMMUNITY BANCORP, INC.
        (Exact Name of Small Business Issuer as Specified in Its Charter)

           Florida                                   65-0614044
---------------------------------                -------------------
(State or Other Jurisdiction                      (I.R.S. Employer
of Incorporation or Organization)                Identification No.)

                             650 East Elkcam Circle
                           Marco Island, Florida 34145
                    (Address of Principal Executive Offices)

                                 (941) 389-1800
                (Issuer's Telephone Number, Including Area Code)


         (Former Name, Former Address and Former Fiscal Year, if Changed
                               Since Last Report)

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

YES  X    NO

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:


Common stock, par value $.01 per share                  3,472,111
--------------------------------------         --------------------------------
              (class)                          Outstanding at June 30, 1999


--------------------------------------------------------------------------------


<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                                      INDEX


PART I. FINANCIAL INFORMATION

Item 1.   Financial Statements                                           Page

Condensed  Consolidated  Balance  Sheets  -  June  30,  1999
     (unaudited) and December 31, 1998 .......................................2

Condensed Consolidated  Statements of Earnings Three and Six
     Months ended June 30, 1999 and 1998 (unaudited) .........................3

Condensed  Consolidated  Statement of Stockholders' Equity -
     Six Months ended June 30, 1999 (unaudited) ..............................4

Condensed  Consolidated  Statements of Cash Flows Six Months
     ended June 30, 1999 and 1998 (unaudited) ................................5

Notes  to  Condensed   Consolidated   Financial   Statements
     (unaudited) ...........................................................6-7

Review By Independent Certified Public Accountants ...........................8

Report on Review by Independent Certified Public Accountants..................9

Item 2.  Management's  Discussion  and Analysis of Financial
     Condition and Results of Operations .................................10-15

PART II. OTHER INFORMATION

Item 2. Changes in Securities and Use of Proceeds ...........................16

Item 4. Submission of Matters to a Vote of Security  Holders .............16-17

Item 6. Exhibits and Reports on Form 8-K ....................................18

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



<PAGE>
<TABLE>
<CAPTION>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                          PART I. FINANCIAL INFORMATION

                          Item 1. Financial Statements

                      Condensed Consolidated Balance Sheets

                                                                              June 30,       December 31,
                                                                              --------       ------------
Assets                                                                          1999            1998
                                                                                ----            ----
                                                                             (unaudited)

<S>                                                                        <C>              <C>
Cash and due from banks ................................................   $  4,401,270       5,481,992
Federal funds sold and securities purchase under agreements
        to resell ......................................................      9,578,064      19,181,095
                                                                           ------------      ----------

Cash and cash equivalents ..............................................     13,979,334      24,663,087

Securities held to maturity ............................................     13,024,567       8,499,968
Securities available for sale ..........................................      1,606,778            --
Restricted securities, Federal Home Loan Bank stock, at cost ...........        214,900         127,100
Loans, net of allowance for loan losses of $707,211
and $453,211 ...........................................................     64,638,155      44,932,943
Premises and equipment, net ............................................      3,594,439       3,549,924
Accrued interest receivable and other assets ...........................        729,701         453,104
                                                                           ------------      ----------

Total assets ...........................................................   $ 97,787,874      82,226,126
                                                                           ============      ==========

Liabilities and Stockholders' Equity

Liabilities:
Demand deposits ........................................................      8,747,581       6,365,180
Savings and NOW deposits ...............................................     30,070,250      33,307,881
Money-market deposits ..................................................     14,215,840       4,010,998
Time deposits ..........................................................     26,239,817      20,306,399
                                                                           ------------      ----------

Total deposits .........................................................     79,273,488      63,990,458

Official checks ........................................................        572,334         697,458
Income taxes payable ...................................................         55,498          19,850
Accrued interest payable and other liabilities .........................        353,369         293,832
                                                                           ------------      ----------

Total liabilities ......................................................     80,254,689      65,001,598
                                                                           ------------      ----------

Stockholders' Equity:
Preferred  stock, $.01 value; 2,000,000 shares authorized, none issued or
outstanding - Common stock, $.01 par value; 8,000,000 shares authorized,
3,472,111 and 3,455,039 shares issued and outstanding ..................         34,721          34,550
Additional paid-in capital .............................................     19,239,569      19,158,862
Accumulated deficit ....................................................     (1,731,368)     (1,968,884)
Accumulated other comprehensive income (loss) ..........................         (9,737)           --
                                                                           ------------      ----------

Total stockholders' equity .............................................     17,533,185      17,224,528
                                                                           ------------      ----------

Total liabilities and stockholders' equity .............................   $ 97,787,874      82,226,126
                                                                           ============      ==========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       2

<PAGE>
<TABLE>
<CAPTION>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                  Condensed Consolidated Statements of Earnings

                                                    Three Months Ended         Six Months Ended
                                                    ------------------         ----------------
                                                         June 30,                  June 30,
                                                     1999         1998        1999         1998
                                                     ----         ----        ----         ----
                                                        (unaudited)              (unaudited)
<S>                                              <C>          <C>          <C>          <C>
Interest income:
Loans ........................................   $1,249,903      771,079    2,280,177    1,481,060
Securities ...................................      245,374      158,711      426,103      216,517
Other interest-earning assets ................      134,969      144,925      325,160      308,016
                                                  ---------    ---------    ---------    ---------

Total interest income ........................    1,630,246    1,074,715    3,031,440    2,005,593
                                                  ---------    ---------    ---------    ---------

Interest expense on deposits .................      641,733      533,556    1,189,125      997,023

   Net interest income .......................      988,513      541,159    1,842,315    1,008,570

Provision for loan losses ....................      133,000       15,000      254,000       71,000
                                                  ---------    ---------    ---------    ---------

   Net interest income after provision
     for loan losses .........................      855,513      526,159    1,588,315      937,570
                                                  ---------    ---------    ---------    ---------

Noninterest income:
Other service charges and fees ...............       84,277       59,613      202,319      111,036
Other ........................................       49,152       40,203       64,769       76,647
                                                  ---------    ---------    ---------    ---------

Total noninterest income .....................      133,429       99,816      267,088      187,683
                                                  ---------    ---------    ---------    ---------

Noninterest expense:
Salaries and employee benefits ...............      346,401      242,697      684,611      466,026
Occupancy and equipment ......................      128,634       83,197      234,089      166,947
Professional fees ............................       43,810        8,180       83,594       11,114
Other ........................................      236,640      186,613      495,713      336,806
                                                  ---------    ---------    ---------    ---------

Total noninterest expense ....................      755,485      520,687    1,498,007      980,893
                                                  ---------    ---------    ---------    ---------

Earnings before income taxes .................      233,457      105,288      357,396      144,360

Income taxes .................................       82,780       34,796      119,880       49,796
                                                  ---------    ---------    ---------    ---------

Net earnings .................................   $  150,677       70,492      237,516       94,564
                                                  =========    =========    =========    =========

Earnings per share:
Basic ........................................   $      .04          .04          .07          .05
                                                  =========    =========    =========    =========

Diluted ......................................   $      .04          .03          .07          .05
                                                  =========    =========    =========    =========

Weighted-average number of shares outstanding:
Basic ........................................    3,469,051    1,993,203    3,462,608    1,851,222
                                                  =========    =========    =========    =========

Diluted ......................................    3,563,893    2,048,856    3,555,843    1,906,737
                                                  =========    =========    =========    =========

Dividends per share ..........................   $     --           --           --           --
                                                  =========    =========    =========    =========

</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       3

<PAGE>
<TABLE>
<CAPTION>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

            Condensed Consolidated Statement of Stockholders' Equity

                         Six Months Ended June 30, 1999

                                                                                             Accumulated
                                                                                             Other
                                                                                             Compre-
                                           Common Stock          Additional                  hensive        Total
                                     Number of                   Paid-in      Accumulated    Income    Stockholders'
                                       Shares        Amount      Capital        Deficit      (Loss)       Equity
                                       ------        ------      -------        --------     ------       ------
<S>                                  <C>         <C>            <C>           <C>            <C>        <C>
Balance at December 31, 1998         3,455,039   $    34,550    19,158,862    (1,968,884)      --       17,224,528
                                                                              ----------     ------     ----------

Comprehensive income:
Net earnings (unaudited)                  --            --            --         237,516       --          237,516
Net change in unrealized
gain on securities
available for sale
(unaudited)                               --            --            --            --      (9,737)        (9,737)
                                                                              ----------    ------     ----------

Comprehensive income (unaudited)          --            --            --         237,516    (9,737)       227,779

Shares issued under stock
option plan (unaudited)                 17,072           171        80,707          --        --           80,878
                                     ---------   -----------    ----------    ----------    ------     ----------

Balance at June 30, 1999
(unaudited)                          3,472,111   $    34,721    19,239,569    (1,731,368)   (9,737)    17,533,185
                                     =========   ===========    ==========    ==========    ======     ==========
</TABLE>



















See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       4

<PAGE>
<TABLE>
<CAPTION>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows

                                                                                 Six Months Ended
                                                                                      June 30,
                                                                                 ----------------
                                                                              1999             1998
                                                                                    (unaudited)
<S>                                                                      <C>             <C>
Cash flows from operating activities:
Net earnings ........................................................   $    237,516          94,564
Adjustments to reconcile net earnings to net cash
  provided by operating activities:
Depreciation ........................................................         53,917          71,374
Provision for loan losses ...........................................        254,000          71,000
Provision for deferred income taxes .................................         41,521          33,418
Net amortization of loan fees, premiums and discounts ...............       (145,514)         55,737
Increase in accrued interest receivable and other assets ............       (276,597)       (223,512)
Increase (decrease) in accrued interest payable and other liabilities         59,537         (22,810)
        Net (decrease) increase in official checks ..................       (125,124)        257,035
                                                                         -----------     -----------

Net cash provided by operating activities ...........................         99,256         336,806
                                                                         -----------     -----------

Cash flows from investing activities:
Purchase of securities available for sale ...........................     (1,632,430)           --
Purchase of securities held to maturity .............................    (22,432,064)     (8,500,000)
Maturities of securities held to maturity ...........................     17,996,627         500,000
Purchase of restricted securities, Federal Home Loan Bank stock .....        (87,800)       (127,100)
Net increase in loans ...............................................    (19,892,818)     (7,963,518)
Purchase of premises and equipment ..................................        (98,432)       (668,886)
                                                                         -----------     -----------

Net cash used in investing activities ...............................    (26,146,917)    (16,759,504)
                                                                         -----------     -----------

Cash flows from financing activities:
Net increase in noninterest-bearing demand,
savings and NOW deposits ............................................      9,349,612       9,690,324
Net increase in time deposits .......................................      5,933,418       3,273,838
Payment of stock offering costs .....................................           --           (78,744)
Sale of common stock ................................................         80,878       6,471,058
                                                                         -----------     -----------

Net cash provided by financing activities ...........................     15,363,908      19,356,476
                                                                         -----------     -----------

Net increase (decrease) in cash and cash equivalents ................    (10,683,753)      2,933,778

Cash and cash equivalents at beginning of period ....................     24,663,087      12,210,577
                                                                         -----------     -----------

Cash and cash equivalents at end of period ..........................   $ 13,979,334      15,144,355
                                                                         ===========     ===========

Supplemental disclosure of cash flow information-
Cash paid during the period for:
Interest ............................................................   $  1,163,952         963,207
                                                                         ===========     ===========

Income taxes ........................................................   $     65,000            --
                                                                         ===========     ===========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       5

<PAGE>

        CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

        Notes to Condensed Consolidated Financial Statements (unaudited)

(1)  General.  In the  opinion of the  management,  the  accompanying  condensed
     consolidated  financial statements of Citizens Community Bancorp,  Inc. and
     Subsidiaries   (the   "Company")   contain  all   adjustments   (consisting
     principally of normal recurring  accruals)  necessary to present fairly the
     financial  position at June 30, 1999, and the results of operations for the
     three-month and six-month periods ended June 30, 1999 and 1998 and the cash
     flows for the six-month  periods ended June 30, 1999 and 1998.  The results
     of  operations  for the three and six months  ended  June 30,  1999 are not
     necessarily indicative of the results to be expected for the full year.

(2)  Loan Impairment and Credit Losses.  No loans were identified as impaired at
     June 30, 1999 or June 30,  1998.  The  activity in the  allowance  for loan
     losses was as follows:

                                                     For the Six
                                                     Months Ended
                                                        June 30,
                                                     ------------
                                                   1999           1998
                                                   ----           ----

Balance at beginning of period                  $ 453,211       298,000
Provision charged to earnings                     254,000        71,000
Charge-offs, net of recoveries                       -               -
                                                ---------       -------

Balance at end of period                        $ 707,211       369,000
                                                =========       =======

(3)  Earnings  Per Share.  Earnings  per share  ("EPS") of common stock has been
     computed  on the basis of the  weighted-average  number of shares of common
     stock outstanding. Prior to the public stock offering in April, 1998, there
     was no public  market for the  Company's  common  stock.  For  purposes  of
     calculating diluted EPS the $7.50 stock offering price is assumed to be the
     market price for the three and six months ended June 30, 1998; for 1999 the
     calculation  is based on  actual  trading  activity.  For the three and six
     months  ended June 30, 1999  outstanding  options are  considered  dilutive
     securities for purposes of calculating  diluted EPS which is computed using
     the  treasury  stock  method.  All per share  amounts  reflect the 8% stock
     dividend  effective  December 31, 1998.  The following  table  presents the
     calculations of EPS (dollars in thousands, except per share amounts).
<TABLE>
<CAPTION>

                                        For the Three Months Ended June 30,
                           ----------------------------------------------------------------
                                            1999                           1998
                           --------------------------------- ------------------------------
                             Earnings      Shares  Per Share  Earnings    Shares   Per Share
                           (Numerator) (Denominator) Amount (Numerator)(Denominator) Amount
                           ----------------------------------------------------------------
<S>                         <C>         <C>         <C>       <C>      <C>         <C>
Basic EPS:
Net earnings available
  to common stockholders    $     151   3,469,051   $   .04   $   70   1,993,203   $   .04
                                                    =======                        =======
Effect of dilutive
  securities-
Incremental shares from
  assumed conversion
  of options                               94,842                         55,653
                                           ------                         ------

Diluted EPS:
Net earnings available
  to common stockholders
  and assumed conversions   $     151   3,563,893   $   .04   $   70   2,048,856   $   .03
                            =========   =========   =======   ======   =========   =======
</TABLE>

                                                                     (continued)

                                       6


<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

        Notes to Condensed Consolidated Financial Statements (unaudited)

<TABLE>
<CAPTION>

(3)     Earnings Per Share, Continued.
                                          For the Six Months Ended June 30,
                           ----------------------------------------------------------------
                                            1999                           1998
                           --------------------------------- ------------------------------
                             Earnings      Shares  Per Share  Earnings    Shares   Per Share
                           (Numerator) (Denominator) Amount (Numerator)(Denominator) Amount
                           ----------------------------------------------------------------
<S>                         <C>         <C>         <C>       <C>      <C>         <C>
Basic EPS:
Net earnings available
  to common stockholders    $     238   3,462,608   $   .07   $   95   1,851,222   $   .05

Effect of dilutive
  securities-
Incremental shares from
  assumed conversion
  of options                               93,235                         55,515

Diluted EPS:
Net earnings available
  to common stockholders
  and assumed conversions   $     238   3,555,843   $   .07   $   95   1,906,737   $   .05
</TABLE>

(4)  Regulatory  Capital.  The Citizens Community Bank of Florida (the Company's
     Banking  Subsidiary)  ("Citizens") is required to maintain  certain minimum
     regulatory  capital  requirements.  The  following is a summary at June 30,
     1999 of the  regulatory  capital  requirements  and the Bank's capital on a
     percentage basis:

                                                  Ratios of  Regulatory
                                                   the Bank  Requirement
                                                   --------  -----------

Total capital to risk-weighted assets                12.85%   8.00%

Tier I capital to risk-weighted assets               11.75%   4.00%

Tier I capital to total assets - leverage ratio       7.77%   4.00%

                                       7


<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

               Review by Independent Certified Public Accountants


Hacker,  Johnson,  Cohen & Grieb PA, the Company's  independent certified public
accountants,  have made a limited  review of the  financial  data as of June 30,
1999,  and for the three- and  six-month  periods  ended June 30,  1999 and 1998
presented in this  document,  in accordance  with  standards  established by the
American Institute of Certified Public Accountants.

Their  report  furnished  pursuant to Article 10 of  Regulation  S-X is included
herein.



                                       8






<PAGE>

          Report on Review by Independent Certified Public Accountants



The Board of Directors
Citizens Community Bancorp, Inc.
Marco Island, Florida:

     We have reviewed the accompanying  condensed  consolidated balance sheet of
Citizens Community Bancorp, Inc. and Subsidiaries (the "Company") as of June 30,
1999,  and the related  condensed  consolidated  statements  of earnings for the
three- and  six-month  periods  ended June 30, 1999 and 1998,  and the condensed
consolidated  statement of stockholders' equity and cash flows for the six-month
period ended June 30, 1999. These financial statements are the responsibility of
the Company's management.

     We conducted our review in accordance  with  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of applying analytical procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the  expression  of an opinion  regarding the  financial  statements  taken as a
whole. Accordingly, we do not express such an opinion.

     Based on our review,  we are not aware of any material  modifications  that
should be made to the condensed  consolidated  financial  statements referred to
above  for  them  to  be  in  conformity  with  generally  accepted   accounting
principles.

     We have previously  audited, in accordance with generally accepted auditing
standards,  the  consolidated  balance  sheet as of December 31,  1998,  and the
related  consolidated  statements of operations,  stockholders'  equity and cash
flows for the year then ended (not  presented  herein);  and in our report dated
January 29,  1999 we  expressed  an  unqualified  opinion on those  consolidated
financial  statements.  In  our  opinion,  the  information  set  forth  in  the
accompanying  condensed  consolidated  balance sheet as of December 31, 1998, is
fairly stated, in all material respects, in relation to the consolidated balance
sheet from which it has been derived.






HACKER, JOHNSON, COHEN & GRIEB PA
Tampa, Florida
July 15, 1999

                                       9

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                  Item 2. Management's Discussion and Analysis
                of Financial Condition and Results of Operations

                Comparison of June 30, 1999 and December 31, 1998

Liquidity and Capital Resources
The Company's  primary  source of cash during the six months ended June 30, 1999
was from net deposit inflows and maturities of securities held to maturity. Cash
was used primarily for loan originations and for the purchase of securities.  At
June 30, 1999, the Company had outstanding  commitments to fund existing and new
loans of $21.6 million.  It is expected that these  requirements  will be funded
from the sources  described  above.  At June 30,  1999,  the Bank  exceeded  its
regulatory liquidity requirements.

The following  table shows selected ratios for the periods ended or at the dates
indicated:

                                                    Six Months
                                                       Ended   Year Ended
                                                      June 30, December 31,
                                                        1999     1998
                                                        ----     ----
Average equity as a percentage
of average assets ...............................      18.81%   18.91%

Equity to total assets at end of period .........      17.93%   20.95%

Return on average assets (1) ....................        .51%    0.32%

Return on average equity (1) ....................       2.73%    1.71%

Noninterest expense to average assets (1) .......       3.24%    3.04%

Nonperforming loans and foreclosed real estate to
total assets at end of period ...................         NIL      NIL



(1)     Annualized for the six months ended June 30, 1999.

                                       10

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

The following table sets forth, for the periods indicated, information regarding
(i) the total dollar amount of interest and dividend  income of the Company from
interest-earning  assets and the resultant average yields; (ii) the total dollar
amount of interest  expense on  interest-bearing  liabilities  and the resultant
average cost; (iii) net interest income; (iv) interest-rate  spread; and (v) net
interest margin (dollar amounts in thousands).
<TABLE>
<CAPTION>

                                                               Three Months Ended June 30,
                                              ----------------------------------------------------------

                                                           1999                        1998
                                              ------------------------------ ---------------------------
                                                           Interest  Average           Interest  Average
                                              Average        and      Yield/ Average      and     Yield/
                                              Balance     Dividends    Rate  Balance   Dividends   Rate
                                              -------     ---------    ----  -------   ---------   ----
                                                                  (Dollars in thousands)
<S>                                           <C>          <C>       <C>    <C>           <C>      <C>
Interest-earning assets:
Loans                                         $60,690      1,250     8.26%  $34,257       771      9.03%
Securities                                     17,694        245     5.55    10,406       159      6.13
Other interest-earning assets (1)              11,391        135     4.75     9,385       145      6.20
                                               ------        ---             ------       ---

Total interest-earning assets                  89,775      1,630     7.28    54,048     1,075      7.98
                                                           -----                        -----

Noninterest-earning assets                      7,769                         6,209
                                                -----                         -----

Total assets                                  $97,544                       $60,257
                                              =======                       =======

Interest-bearing liabilities:
Savings, NOW and money-market deposit
accounts                                       44,902        309     2.76    27,802       249      3.59
Time deposits                                  24,687        332     5.39    19,744       285      5.79
                                               ------        ---             ------       ---

Total interest-bearing liabilities             69,589        641     3.69    47,546       534      4.50
                                                             ---                          ---

Noninterest-bearing liabilities                10,538                         5,293
Stockholders' equity                           17,417                         7,418

Total liabilities and stockholders'           $97,544                       $60,257
      equity                                  =======                       =======


Net interest income                                        $ 989                        $ 541
                                                           =====                        =====

Interest-rate spread (2)                                             3.59%                         3.48%
                                                                     ====                          ====

Net interest margin (3)                                              4.41%                         4.00%
                                                                     ====                          ====

Ratio of average interest-earning assets to
average interest-bearing liabilities             1.29                          1.14
                                                 ====                          ====
</TABLE>

---------------------------------------

(1)  Includes  federal funds sold,  Federal Home Loan Bank stock and  securities
     purchased under agreements to resell.

(2)  Interest-rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   rate  of   interest-bearing
     liabilities.

(3)  Net   interest   margin  is  net   interest   income   divided  by  average
     interest-earning assets.

                                       11

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

The following table sets forth, for the periods indicated, information regarding
(i) the total dollar amount of interest and dividend  income of the Company from
interest-earning  assets and the resultant average yields; (ii) the total dollar
amount of interest  expense on  interest-bearing  liabilities  and the resultant
average cost; (iii) net interest income; (iv) interest-rate  spread; and (v) net
interest margin (dollar amounts in thousands).
<TABLE>
<CAPTION>

                                                               Six Months Ended June 30,
                                              ----------------------------------------------------------

                                                           1999                        1998
                                              ------------------------------ ---------------------------
                                                           Interest  Average           Interest  Average
                                              Average        and      Yield/ Average      and     Yield/
                                              Balance     Dividends    Rate  Balance   Dividends   Rate
                                              -------     ---------    ----  -------   ---------   ----
                                                                  (Dollars in thousands)
<S>                                           <C>          <C>       <C>    <C>         <C>        <C>
Interest-earning assets:
Loans                                         $54,764      2,280     8.40%  $31,956     1,481      9.35%
Securities                                     15,389        426     5.58     7,050       217      6.21
Other interest-earning assets (1)              13,897        325     4.72    10,707       308      5.80
                                               ------        ---             ------       ---

Total interest-earning assets                  84,050      3,031     7.27    49,713     2,006      8.12
                                                           -----                        -----

Noninterest-earning assets                      8,305                         6,450
                                                -----                         -----

Total assets                                  $92,355                       $56,163
                                              =======                       =======

Interest-bearing liabilities:
Savings, NOW and money-market deposit
accounts                                       41,678        573     2.80    24,930       447      3.62
Time deposits                                  23,143        616     5.41    19,163       550      5.79
                                               ------        ---             ------       ---

Total interest-bearing liabilities             64,821      1,189     3.70    44,093       997      4.56
                                                           -----                          ---

Noninterest-bearing liabilities                10,160                         4,939
Stockholders' equity                           17,374                         7,131
                                               ------                         -----

Total liabilities and stockholders'           $92,355                       $56,163
                                              =======                       =======
     equity

Net interest income                                      $ 1,842                      $ 1,009
                                                         =======                      =======

Interest-rate spread (2)                                             3.57%                         3.56%
                                                                     ====                          ====

Net interest margin (3)                                              4.42%                         4.06%
                                                                     ====                          ====

Ratio of average interest-earning assets to
average interest-bearing liabilities             1.30                          1.13
                                                 ====                          ====
</TABLE>
------------------------------------------

(1)  Includes  federal funds sold,  Federal Home Loan Bank stock and  securities
     purchased under agreements to resell.

(2)  Interest-rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   rate  of   interest-bearing
     liabilities.

(3)  Net   interest   margin  is  net   interest   income   divided  by  average
     interest-earning assets.

                                       12

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Results of Operations

       Comparison of the Three-Month Periods Ended June 30, 1999 and 1998


General. Net earnings for the three months ended June 30, 1999 were  $150,700 or
     $.04 basic and  diluted  earnings  per share  compared  to net  earnings of
     $70,500 or $.04  basic and $.03  diluted  earnings  per share for the three
     months ended June 30, 1998. This increase in the Company's net earnings was
     primarily due to an increase in net interest income and noninterest  income
     and was partially  offset by an increase in noninterest  expense due to the
     overall growth of the Company.

Interest  Income  and  Expense.  Interest  income  increased  by  $555,500  from
     $1,074,700  for the three months ended June 30, 1998 to $1,630,200  for the
     three  months  ended  June 30,  1999.  Interest  income on loans  increased
     $478,900 to  $1,249,900  due  primarily  to an increase in the average loan
     portfolio  balance for the three months  ended June 30,  1999.  Interest on
     securities  increased  to  $246,000  due  primarily  to an  increase in the
     average  securities  portfolio during the three months ended June 30, 1999.
     Interest on other  interest-earning  assets  increased to $135,000 due to a
     increase in the average balance of such assets from 1998 to 1999.

     Interest  expense on deposit  accounts  increased to $641,700 for the three
     months  ended June 30, 1999 from  $533,600  for the three months ended June
     30, 1998.  Interest expense  increased  primarily because of an increase in
     the average balance from 1998 to 1999.

     Provision  for Loan  Losses.  The  provision  for loan losses is charged to
     earnings to bring the total  allowance  to a level  deemed  appropriate  by
     management and is based upon historical experience,  the volume and type of
     lending  conducted  by the  Company,  industry  standards,  the  amount  of
     nonperforming  loans,  general  economic  conditions,  particularly as they
     relate to the  Company's  market areas,  and other  factors  related to the
     estimated collectibility of the Company's loan portfolio. The provision for
     the three  months  ended June 30, 1999 and 1998 was  $133,000  and $15,000,
     respectively.  The  increase  in the  provision  for loan losses in 1999 is
     primarily due to the higher level of loan originations. Management believes
     the balance in the  allowance  for loan losses of $707,200 at June 30, 1999
     is adequate.

Noninterest Income.  Total noninterest income increased to $133,400 in 1999 from
     $99,800 in the same period in 1998. The primary reason for the  improvement
     was increased fees and service charges and the growth in deposit accounts.

Noninterest Expense.  Total noninterest  expense increased  $234,800 to $755,500
     for the three months ended June 30, 1999 from $520,700 for the three months
     ended June 30, 1998, primarily due to an increase in employee  compensation
     and benefits of $103,700,  increased  occupancy and  equipment  expenses of
     $45,400 as well as an increase in other noninterest  expense of $50,000 all
     due to the opening of the third branch  office in the third quarter of 1998
     and the continued growth of the Company.

Provision for Income Taxes.  The income tax provision for the three months ended
     June 30, 1999 was $82,780 (an effective rate of 35.5%)  compared to $34,800
     (an effective rate of 33.1%) for the comparable 1998 period.

                                       13


<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

Results of Operations:

        Comparison of the Six-Month Periods Ended June 30, 1999 and 1998

General. Net earnings  for the six months  ended June 30, 1999 were  $237,500 or
     $.07 basic and diluted earnings per share compared to $94,600 or $.05 basic
     and diluted earnings per share for the six months ended June 30, 1998. This
     increase  in  the   Company's   net  earnings  was  primarily  due  to  the
     year-over-year  growth in the Company which  resulted in an increase in net
     interest income,  partially  offset by an increase in noninterest  expenses
     and the provision for loan losses.

Interest Income and  Expense.  Interest  income  increased  by  $1,025,800  from
     $2,005,600 for the six months ended June 30, 1998 to $3,031,400 for the six
     months ended June 30, 1999.  Interest income on loans increased $799,100 to
     $2,280,200  due  primarily  to an increase in the  average  loan  portfolio
     balance for the six months  ended June 30,  1999.  Interest  on  securities
     increased  $209,600 to $426,100 due primarily to an increase in the average
     securities portfolio during the six months ended June 30, 1999. Interest on
     other  interest-earning  assets increased $17,200 to $325,200 primarily due
     to an  increase  in the  average  balance  of  securities  purchased  under
     agreements to resell and partially offset by a decrease in the average rate
     on other interest-earning assets.

     Interest  expense on deposit  accounts  increased to $1,189,100 for the six
     months ended June 30, 1999 from  $997,000 for the six months ended June 30,
     1998.  The rate of growth of interest  expense  was less than the  interest
     income as a result of the Bank's  successful  efforts to generate  low cost
     core deposit accounts.

Provision for Loan Losses.  The provision for loan losses is charged to earnings
     to bring the total  allowance to a level deemed  appropriate  by management
     and is based  upon  historical  experience,  the volume and type of lending
     conducted by the Company,  industry standards,  the amount of nonperforming
     loans,  general  economic  conditions,  particularly  as they relate to the
     Company's  market  areas,  and  other  factors  related  to  the  estimated
     collectibility of the Company's loan portfolio.  The provision increased to
     $254,000  for the six months  ended June 30, 1999 from  $71,000 for the six
     months ended June 30, 1998.  The increase in the  provision for loan losses
     in 1999 is primarily due to the higher level of loan orgination  during the
     first six months of 1999.

Noninterest Income.  Total noninterest income increased to $267,100 in 1999 from
     $187,700  in the 1998  period.  The  primary  reason for the  increase  was
     increased fees and service charges on increased deposit accounts.

Noninterest Expense.  Total noninterest expense increased $517,100 to $1,498,000
     for the six months  ended June 30,  1999 from  $980,900  for the six months
     ended June 30, 1998, primarily due to an increase in employee  compensation
     and benefits of $218,600 an increase in occupancy and equipment  expense of
     $67,100,  and an increase in other noninterest  expense of $158,900 all due
     to the overall growth of the Company during 1999 compared to 1998.

Provision for Income  Taxes.  The income tax  provision for the six months ended
     June 30, 1999 was $119,880 (an effective rate of 33.6%) compared to $49,800
     (an effective rate of 34.5%) for the comparable 1998 period.

                                       14

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                                Year 2000 Issues


     The  Company is acutely  aware of the many areas  affected by the Year 2000
     computer  issue and has formed a Year 2000  committee  that is charged with
     oversight of completing  the Year 2000 project on a timely basis.  Citizens
     Community  Bank  ("Citizens")  also  has a Year  2000  committee  which  is
     actively involved in managing the Year 2000 computer challenges,  following
     the  guidance  provided  by its  regulatory  bodies and  documented  in the
     interagency   statements  issued  by  the  Federal  Financial  Institutions
     Examination  Council  ("FFIEC").  Citizens has a Year 2000 Technology Plan,
     approved by the Board of Directors,  which includes multiple phases,  tasks
     to be completed and target dates for completion.  Issues addressed  therein
     include  awareness,  assessment,  renovation,  validation,  implementation,
     testing and contingency planning.

     Citizens routinely upgrades and purchases  technology advanced software and
     hardware on a continual  basis.  All future  purchases and upgrades will be
     Year  2000  compliant.  Citizens  has  determined  that the cost of  making
     modifications to correct any Year 2000 issues will not substantially affect
     reported operating results.

     Citizens' main service  provider  considers the awareness phase of its Year
     2000  Project to be  substantially  complete  from an internal  standpoint.
     Their assessment  phase of its Year 2000 Project is substantially  complete
     for internal mission critical systems.

     The testing phase of Citizens' main service  provider  involves the testing
     of various  internal and external  mission  critical  systems.  The service
     provider is into its testing  phase of testing its  internal  and  external
     mission critical systems and services with Year 2000 date information.  The
     service  provider  substantially  completed  testing  of  mission  critical
     systems and services as of June 30, 1999.

     Citizens also recognizes the importance of determining if its customers are
     preparing   for  the  Year  2000  problem  in  a  timely  manner  to  avoid
     deterioration of the loan portfolio  solely due to this issue.  Significant
     relationships have been identified and  questionnaires  have been completed
     to assess the inherent risks.  Customers have received  statement  stuffers
     and informational material in this regard. Citizens plans to be prepared on
     a one-on-one basis with  significant  borrowers who have been identified as
     having high Year 2000 risk  exposure.  Citizens  stresses the importance of
     determining  that its major  depositors and borrowers are ready to face the
     Year 2000  problem in order to avoid  difficulties  surrounding  the issue.
     Citizens  plans to continue in its  efforts to be active in  informing  its
     customers of the Year 2000 issue.

     Citizens has developed a contingency  plan relative to the Year 2000 issues
     which  addresses a "worst case  scenario." The plan covers various  options
     for handling  interruptions  of the internal and external  mission critical
     systems and  services.  Citizens,  for  example,  has  developed  plans for
     meeting  unusually  high  demands  for  cash  generated  by  the  publicity
     surrounding the Year 2000 issue.  The Contingency Plan will be continuously
     monitored  to  incorporate  and  address  various  operational  elements as
     needed. Furthermore, Citizens' contingency plan covers systems which can be
     handled manually on an interim basis.  Should outside service providers not
     be able  to  provide  compliant  systems,  Citizens  will  terminate  those
     relationships and transfer to other vendors.

                                       15

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


                           PART II. OTHER INFORMATION

     Item 2. Changes in Securities and Use of Proceeds

     The following sales of shares of Citizens  Community  Bancorp common stock,
     par  value  $0.01  per  share  ("Citizens  Community  Bancorp"),  were  not
     registered  pursuant  to  the  Securities  Act of  1933,  as  amended  (the
     "Securities  Act"),  but were issued  pursuant to the exemptions  indicated
     below:

     During the six  months  ended  June 30,  1999,  four  former  employees  of
     Citizens Community Bancorp, pursuant to the exercise of options,  purchased
     an aggregate of 17,072 shares of Citizens  Community  Bancorp stock, for an
     aggregate  price of $80,878.  This  transaction was made in reliance on the
     exemption set forth in Section 4(2) of the Securities Act.

     Proceeds  from the  sale of the  above  securities  were  used for  general
     corporate purpose.

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

     The Annual Meeting of Shareholders  (the "Annual  Meeting") of the Company,
     was held on April 20, 1999, to consider the election of three  directors to
     three-year  terms,  the  amendment  to the  Articles  of  Incorporation  to
     eliminate   staggered  terms  for  directors  in  future   elections,   the
     ratification of the appointment of the Company's  independent  auditors for
     the year ending December 31, 1999 and to approve  adjournment of the annual
     meeting to solicit additional proxies.

     At the Annual Meeting, 2,702,184 shares were present in person or by proxy.
     The  following is a summary and  tabulation  of the matters that were voted
     upon at the Annual Meeting:

Proposal I.

The election of directors:
                          For         %     Withhold     %
                          ---        --     --------    --

Steven A. McLaughlin   2,683,770     99.3    18,414     .7
Richard Storm, Jr      2,688,522     99.5    13,662     .5
John G. Wolf           2,684,634     99.4    17,550     .6

                                       16

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


Item 4.  Submission of Matters to a Vote of Security Holders, Continued

Proposal II:

To  approve  the  Amendment  to Article  VIII,  Section  3, of the  Articles  of
Incorporation, to eliminate staggered terms for directors in future elections.

        For          %    Against       %     Abstain     %    Non-Vote    %
     ---------     ----    ------      ---     ------    --    -------   ----

     2,277,030     84.3    61,532      2.3     22,572    .8    341,050   12.6

Proposal III:

Ratification  of the  appointment  of  Hacker,  Johnson,  Cohen  &  Grieb  PA as
independent auditors of Citizens for fiscal year ending December 31, 1999.

                    For             %   Against    %     Abstain   %
                  ---------       ----    -----   --      ------  ---

                  2,669,460       98.8    5,508   .2      27,216  1.0

Proposal IV:

To approve the adjournment of the Annual Meeting to solicit  additional  proxies
in the event that there are not  sufficient  votes to approve one or more of the
foregoing proposals.

                    For             %   Against    %     Abstain   %
                  ---------       ----  -------   --     -------  ---

                  2,615,840       96.8  61,936   2.3      24,408  .9

                                       17

<PAGE>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                           PART II. OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits.  The  following  exhibits  are  filed  with  or  incorporated  by
     reference  into this  report.  The  exhibits  which are  marked by a single
     asterisk (*) were previously  filed as a part, and are hereby  incorporated
     by reference  from the  Company's  Registration  Statement on Form SB-2, as
     effective with the Securities and Exchange  Commission on December 7, 1995,
     Registration  No.  33-98090.  The  exhibits  which  are  marked by a double
     asterisk (**) were previously filed as part of, and are hereby incorporated
     by  reference  from the  Company's  Registration  Statement on Form SB-2 as
     filed  with the  Securities  and  Exchange  Commission  on March 12,  1998,
     Registration No.  333-47813.  The exhibit marked by a triple asterisk (***)
     was filed as an exhibit to the Company's Form 10-KSB for 1998.  The exhibit
     numbers correspond to the exhibit numbers in the referenced documents.

Exhibit No.     Description of Exhibit

*3.1      Amended and Restated Articles of Incorporation of the Company
               (Registration Statement)
*3.2      By-laws of the Company (Registration Statement)
*4.1      Specimen Common Stock Certificate (Registration Statement)
**10.1    1996 Incentive Stock Option Plan
**10.2    Company's 1998 Directors Stock Option Plan
27        Financial Data Schedule (for SEC use only)

(b) Reports on Form 8-K.  There were no Form 8-K's filed during the three months
ended June 30, 1999.

        SIGNATURES


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


CITIZENS COMMUNITY BANCORP, INC.
(Registrant)




Date:            , 1999                 By:      /s/ Richard Storm, Jr.
     -------------------                   ------------------------------------
                                                 Richard Storm, Jr.,
                                                 Chairman of the Board
                                                 and Chief Executive Officer



Date:            , 1999                 By:      /s/ Gregory E. Smith
     -------------------                   ------------------------------------
                                                 Gregory E. Smith,
                                                 Senior Vice President and
                                                 Chief Financial Officer

                                       18