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

                     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 March 31, 1999

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

For the transition period from ____________ to ________________

Commission file number 33-98090

                        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                   3,461,519
--------------------------------------            -------------------------
                         (class)                Outstanding at March 31, 1999



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




<PAGE>


<TABLE>
<CAPTION>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                                      INDEX


PART I. FINANCIAL INFORMATION
<S>                                                                                                        <C> 

   Item 1. Financial Statements                                                                                 Page

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

     Condensed Consolidated Statements of Earnings -
       Three Months ended March 31, 1999 and 1998 (unaudited)...................................................3

     Condensed Consolidated Statement of Stockholders' Equity -
       Three Months ended March 31, 1999 (unaudited)............................................................4

     Condensed Consolidated Statements of Cash Flows -
       Three Months ended March 31, 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..............................................................................10-13

   Item 3. Quantitative and Qualitative Disclosures About Market Risk..........................................14

PART II. OTHER INFORMATION

   Item 6.  Exhibits and Reports on Form 8-K...................................................................14

SIGNATURES.....................................................................................................15
</TABLE>



                                        1

<PAGE>


<TABLE>
<CAPTION>

                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                          PART I. FINANCIAL INFORMATION

                          Item 1. Financial Statements

                      Condensed Consolidated Balance Sheets

                                                                                          March 31,         December 31,
    Assets                                                                                   1999               1998
                                                                                             ----               ----
                                                                                        (unaudited)
<S>                                                                                    <C>                  <C>       
Cash and due from banks...........................................................     $  3,956,434          5,481,992
Federal funds sold and securities purchased under
    agreements to resell..........................................................       13,210,063         19,181,095
                                                                                         ----------         ----------

            Cash and cash equivalents.............................................       17,166,497         24,663,087

Securities held to maturity.......................................................       18,042,840          8,499,968
Restricted securities, Federal Home Loan Bank stock, at cost                                214,900            127,100
Loans, net of allowance for loan losses of $574,211
    and $453,211..................................................................       55,285,547         44,932,943
Premises and equipment, net.......................................................        3,518,245          3,549,924
Accrued interest receivable and other assets......................................          538,981            453,104
                                                                                        -----------        -----------

            Total assets..........................................................     $ 94,767,010         82,226,126
                                                                                         ==========         ==========

    Liabilities and Stockholders' Equity

Liabilities:
    Demand deposits...............................................................        9,153,362          6,365,180
    Savings and NOW deposits......................................................       37,655,370         33,307,881
    Money-market deposits.........................................................        6,517,494          4,010,998
    Time deposits.................................................................       22,769,195         20,306,399
                                                                                         ----------         ----------

            Total deposits........................................................       76,095,421         63,990,458

    Official checks...............................................................          972,658            697,458
    Deferred income taxes.........................................................           20,068             19,850
    Accrued interest payable and other liabilities................................          334,207            293,832
                                                                                        -----------        -----------

            Total liabilities.....................................................       77,422,354         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,
        3,461,519 and 3,455,039 shares issued and outstanding.....................           34,615        34,550
    Additional paid-in capital....................................................       19,192,086         19,158,862
    Accumulated deficit...........................................................       (1,882,045)        (1,968,884)
                                                                                         ----------         ----------

            Total stockholders' equity............................................       17,344,656         17,224,528
                                                                                         ----------         ----------

            Total liabilities and stockholders' equity............................     $ 94,767,010         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
                                                                                                   March 31,
                                                                                             ------------------
                                                                                            1999             1998
                                                                                            ----             ----
                                                                                                   (unaudited)
<S>                                                                                        <C>              <C>      
Interest income:
     Loans..........................................................................     $ 1,030,274          709,981
     Securities.....................................................................         180,729           57,806
     Other interest income..........................................................         190,191          163,091
                                                                                           ---------       ----------

         Total interest income......................................................       1,401,194          930,878

Interest expense on deposits........................................................         547,392          463,467
                                                                                          ----------        ---------

Net interest income.................................................................         853,802          467,411

         Provision for loan losses..................................................         121,000           56,000
                                                                                          ----------       ----------

Net interest income after provision for loan losses                                          732,802          411,411
                                                                                          ----------        ---------

Noninterest income:
     Other service charges and fees.................................................         118,042           51,423
     Other..........................................................................          15,617           36,445
                                                                                          ----------       ----------

         Total noninterest income...................................................         133,659           87,868
                                                                                           ---------       ----------

Noninterest expense:
     Salaries and employee benefits.................................................         338,210          223,329
     Occupancy and equipment........................................................         105,455           83,621
     Advertising....................................................................          33,086           17,057
     Professional fees..............................................................          39,784           11,114
     Office supplies and expense....................................................           9,840           16,314
     Data processing................................................................          36,704           19,854
     Other..........................................................................         179,443           88,789
                                                                                          ----------       ----------

         Total noninterest expense..................................................         742,522          460,078
                                                                                          ----------       ----------

Earnings before income taxes........................................................         123,939           39,201

         Income taxes...............................................................          37,100           15,000
                                                                                          ----------       ----------

Net earnings .......................................................................    $     86,839           24,201
                                                                                          ==========       ==========

Earnings per share, basic and diluted...............................................    $        .03              .01
                                                                                          ==========       ==========

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

Weighted-average number of shares for basic ........................................       3,455,901        1,709,239
                                                                                           =========        =========

Weighted-average number of shares for diluted.......................................       3,547,706        1,709,239
                                                                                           =========        =========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                        3

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

            Condensed Consolidated Statement of Stockholders' Equity

                        Three Months Ended March 31, 1999

<TABLE>
<CAPTION>

                                                                 Common Stock       Additional                     Total
                                                          Number of                   Paid-In      Accumulated  Stockholders'
                                                           Shares          Amount     Capital      Deficit         Equity
                                                           ------          ------     -------      -------         ------

<S>                                                       <C>             <C>        <C>            <C>            <C>       
Balance at December 31, 1998.......................       3,455,039       $ 34,550   19,158,862     (1,968,884)    17,224,528

Issuance of common stock (unaudited)                          6,480             65       33,224         -              33,289

Net earnings for the three months ended March
         31, 1999 (unaudited)......................              -           -           -              86,839         86,839
                                                          ---------       --------   ----------     ----------     ----------

Balance at March 31, 1999 (unaudited)                     3,461,519       $ 34,615   19,192,086     (1,882,045)    17,344,656
                                                          =========       ========   ==========     ==========     ==========
</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


                                                                                             Three Months Ended
                                                                                                   March 31,
                                                                                             ------------------
                                                                                           1999               1998
                                                                                           ----               ----
                                                                                                   (unaudited)
<S>                                                                                   <C>                  <C>       
Cash flows from operating activities:
    Net earnings................................................................     $      86,839             24,201
    Adjustments to reconcile net earnings to net cash
      provided by operating activities:
       Depreciation.............................................................            46,895             36,489
       Provision for loan losses................................................           121,000             56,000
       Provision for deferred income taxes......................................               218             15,000
       Net amortization of loan fees, premiums and discounts                               (32,008)            53,449
       Increase in accrued interest receivable
           and other assets.....................................................           (85,877)           (30,106)
       Increase in accrued expenses and other liabilities                                   40,375              2,228
       Net increase in official checks..........................................           275,200            817,512
                                                                                       -----------        -----------

               Net cash provided by operating activities                                   452,642            974,773
                                                                                       -----------        -----------

Cash flows from investing activities:
    Purchase of securities held to maturity.....................................       (15,582,229)        (7,000,000)
    Maturities of securities held to maturity...................................         6,050,627            500,000
    Net increase in loans.......................................................       (10,452,866)        (5,531,457)
    Purchase of premises and equipment..........................................           (15,216)          (128,446)
    Purchase of restricted securities, Federal Home
       Loan Bank stock..........................................................           (87,800)          (127,100)
                                                                                      ------------        -----------

               Net cash used in investing activities                                   (20,087,484)       (12,287,003)
                                                                                        ----------         ----------

Cash flows from financing activities:
    Net increase in noninterest-bearing demand,
       savings and NOW deposits.................................................         9,642,167         10,301,051
    Net increase in time deposits...............................................         2,462,796          3,296,688
    Sale of common stock........................................................            33,289            187,806
                                                                                      ------------        -----------

               Net cash provided by financing activities                                12,138,252         13,785,545
                                                                                        ----------         ----------

Net (decrease) increase in cash and cash equivalents                                    (7,496,590)         2,473,315

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

Cash and cash equivalents at end of period......................................      $ 17,166,497         14,683,892
                                                                                        ==========         ==========

Supplemental  disclosure of cash flow  information:  Cash paid during the period
    for:
       Interest.................................................................     $     546,287            440,382
                                                                                       ===========       ============

       Income taxes.............................................................     $         -                   -
                                                                                       ===========       ===========
</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  March  31,  1999,  and the  results  of
           operations and cash flows for the three-month periods ended March 31,
           1999 and 1998.  The results of operations  for the three months ended
           March 31, 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 March 31,  1999 or March 31,  1998.  The  activity in the
           allowance for loan losses was as follows:

                                   For the Three
                                    Months Ended
                                      March 31,
                                   1999       1998
                                   ----       ----

Balance at beginning of period   $453,211    298,000
Provision charged to earnings     121,000     56,000
                                 --------   --------

Balance at end of period         $574,211    354,000
                                 ========   ========

(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. Therefore for the three months ended March 31, 1998, the stock
           book value was used for  purposes of  calculating  dilution.  For the
           three months ended March 31, 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 ($ in thousands,
           except per share amounts).
<TABLE>
<CAPTION>

                                                           For the Three Months Ended March 31,
                                                    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     $ 87       3,455,901       $ .03         $ 24         1,709,239      $ .01
                                                                      ===                                       ===

        Effect of dilutive securities-
            Incremental shares from
              assumed conversion
              of options                               91,805                                    -
                                                   ----------                             --------

        Diluted EPS:
            Net earnings available
              to common stockholders
              and assumed conversions    $ 87       3,547,706       $ .03         $ 24         1,709,239      $ .01
                                         ====       =========       =====         ====         =========      =====
</TABLE>

                                                                     (continued)



                                        6

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

        Notes to Condensed Consolidated Financial Statements (unaudited)


(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 March 31, 1999 of the regulatory capital requirements and
            the Bank's capital on a percentage basis:
<TABLE>
<CAPTION>

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

<S>                                                                                           <C>            <C>  
                Total capital to risk-weighted assets                                         12.83%         8.00%

                Tier I capital to risk-weighted assets                                        11.82%         4.00%

                Tier I capital to total assets - leverage ratio                                7.56%         4.00%
</TABLE>




                                        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 March 31,
1999, and for the three-month periods ended March 31, 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 March
31, 1999, and the related condensed consolidated statements of earnings and cash
flows  for the  three-month  periods  ended  March 31,  1999 and  1998,  and the
condensed  consolidated  statement of  stockholders'  equity for the three-month
period ended March 31, 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
April 16, 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 March 31, 1999 and December 31, 1998

Liquidity and Capital Resources
    The Company's primary source of cash during the three months ended March 31,
    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 March 31, 1999, the Company had outstanding commitments to
    fund  existing  and new loans of $15.1  million.  It is expected  that these
    requirements  will be funded from the sources  described above. At March 31,
    1999, the Bank exceeded its regulatory liquidity requirements.

    The following  table shows  selected  ratios for the periods ended or at the
dates indicated:
<TABLE>
<CAPTION>

                                                                              Three Months
                                                                                  Ended            Year Ended
                                                                                 March 31,        December 31,
                                                                                   1999               1998
                                                                              --------------       ---------
<S>                                                                                 <C>              <C>   
        Average equity as a percentage
           of average assets...............................................         19.89%           18.91%

        Equity to total assets at end of period                                     18.30%           20.95%

        Return on average assets (1).......................................          0.40%            0.32 %

        Return on average equity (1).......................................          2.00%            1.71 %

        Noninterest expense to average assets (1)                                    3.41%            3.04%

        Nonperforming loans and foreclosed real estate to
           total assets at end of period...................................          NIL               NIL
</TABLE>

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

        (1)     Annualized for the three months ended March 31, 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.
<TABLE>
<CAPTION>

                                                                       Three Months Ended March 31,
                                                                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                                       $ 48,771,880    1,030,274       8.45%   $ 29,628,718     709,981      9.59%
   Securities                                    13,057,776      180,729       5.54       3,657,369      57,806      6.32
   Other interest-earning assets (1)             16,431,504      190,191       4.63      12,043,700     163,091      5.42
                                                 ----------   ----------                 ----------     -------

       Total interest-earning assets             78,261,160    1,401,194       7.16      45,329,787     930,878      8.21
                                                               ---------                                -------

Noninterest-earning assets                        8,846,255                               6,694,176
                                                 ----------                             -----------

       Total assets                            $ 87,107,415                            $ 52,023,963
                                                 ==========                              ==========

Interest-bearing liabilities:
   Savings, NOW and money-market deposit
       accounts                                  38,786,667      262,754       2.71%     22,026,799     198,117      3.60
   Time deposits                                 21,213,028      284,638       5.37      18,575,957     265,350      5.71
                                                 ----------    ---------                 ----------     -------

       Total interest-bearing liabilities        59,999,695      547,392       3.65      40,602,756     463,467      4.57
                                                               ---------                                -------

Noninterest-bearing liabilities                   9,777,768                               4,581,441
Stockholders' equity                             17,329,952                               6,839,766
                                                 ----------                              ----------

       Total liabilities and stockholders'     $ 87,107,415                            $ 52,023,963
                                                 ==========                              ==========
           equity

Net interest income                                          $   853,802                              $ 467,441
                                                               =========                                =======

Interest-rate spread (2)                                                       3.51%                                 3.65%
                                                                               ====                                  ====

Net interest margin (3)                                                        4.36%                                 4.12%
                                                                               ====                                  ====

Ratio of average interest-earning assets to
   average interest-bearing liabilities                1.30                                    1.12
                                                       ====                                    ====

</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

       Comparison of the Three-Month Periods Ended March 31, 1999 and 1998

Results of Operations:

   General. Net earnings for the three months ended March 31, 1999 were $86,839,
      or $.03 per basic and  diluted  share,  compared to net  earnings  for the
      three  months  ended  March  31,  1998 of  $24,201,  or $.01 per basic and
      diluted share. Earnings increased primarily because of asset growth of the
      Company between March 31, 1998 and March 31, 1999.

   Interest Income and Expense.  Interest  income was $1.4 million for the three
      months  ended  March 31, 1999  compared to $.9 million for the  comparable
      1998 period.  Interest income earned on loans for the 1999 period was $1.0
      million  compared  to $.7 million for the 1998  period.  The average  loan
      balance  outstanding  for the three  months ended March 31, 1999 was $48.8
      million with a  weighted-average  yield of 8.45% compared to $29.6 million
      with a  weighted-average  yield of 9.59%  for the  1998  period.  Interest
      earned on  securities  for 1999 was  $181,000  compared to $58,000 for the
      1998 period.  For the 1999 period,  the average  securities  portfolio was
      $13.1 million with a  weighted-average  yield of 5.54%  compared to a $3.7
      million with a weighted-average  yield of 6.32% for the 1998 period. Other
      interest  income for the 1999 period  totaled $.2 million  compared to $.2
      million for the 1998 period. The average balance of other interest-earning
      assets was $16.4 million during the 1999 period,  with a  weighted-average
      yield of 4.63%.

      Interest  expense on deposits  amounted to $547,000  for the three  months
      ended March 31, 1999 compared to $463,000 for the 1998 period. The average
      balance for the three  months  ended March 31, 1999 was $60.0  million and
      the  weighted-average  rate was 3.65%  compared  to $40.6  million  with a
      weighted-average cost of 4.57% for the 1998 period.

   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 the volume and type of lending  conducted by
      the Company,  industry  standards,  the amount of nonperforming  loans and
      general economic conditions,  particularly as they relate to the Company's
      market  areas,  and other  factors  related to the  collectibility  of the
      Company's loan  portfolio.  The provision for the three months ended March
      31, 1999 was  $121,000 and the  allowance  was $574,000 at March 31, 1999.
      Management believes the allowance at March 31, 1999 is adequate.

   Noninterest  Expense.  Noninterest  expense  totaled  $743,000  for the three
      months  ended March 31, 1999  compared  to $460,000  for the 1998  period.
      Compensation and benefits was the largest noninterest expense amounting to
      $338,000 for 1999  compared to $223,000 for 1998.  All expenses  increased
      primarily because of the asset growth of the Company including the opening
      of a third banking office.

   Provision for Income  Taxes.  The income tax  provision  for the three months
      ended March 31, 1999 was $37,000 compared to $15,000 for 1998.



                                       12

<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 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's 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's  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 plans
to  substantially  complete  testing of mission critical systems and services by
June 30, 1999.

Citizens also  recognizes  the  importance of  determining  if its borrowers 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.
Deposit 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's 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.


                                       13

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss from adverse changes in market prices and rates.
The Company's  market risk arises  primarily from interest rate risk inherent in
its  lending and deposit  taking  activities.  The Company has little or no risk
related to trading accounts, commodities or foreign exchange.

Management  actively  monitors and manages its interest rate risk exposure.  The
primary objective in managing interest-rate risk is to limit, within established
guidelines, the adverse impact of changes in interest rates on the Company's net
interest  income and capital,  while  adjusting  the  Company's  asset-liability
structure to obtain the maximum yield-cost spread on that structure.  Management
relies primarily on its asset-liability structure to control interest rate risk.
However,  a sudden and  substantial  increase in interest rates could  adversely
impact the Company's  earnings,  to the extent that the interest  rates borne by
assets and liabilities do not change at the same speed,  to the same extent,  or
on the same  basis.  There have been no  significant  changes  in the  Company's
market risk exposure since December 31, 1998.

                           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  for 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)
        *4.2       Specimen Warrant Certificate (Registration Statement)
        *4.4       Company's Warrant Plan (Registration Statement)
        **10.1     1996 Incentive Stock Option Plan
        **10.2     Company's 1998 Directors Stock Option Plan
        **10.3     Employment Contract with Michael A. Micallef, Jr.
        ***22.1    Citizens' 1998 Annual Report
        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 March 31, 1999.



                                       14

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                           PART II. OTHER INFORMATION




                                   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




                                                          15