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


                     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 September 30, 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                    3,472,543
--------------------------------------          ----------------------------
              (class)                         Outstanding at September 30, 1999



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


<PAGE>




                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                                      INDEX

<TABLE>
<CAPTION>
<S>                                                                                                        <C>
PART I. FINANCIAL INFORMATION

   Item 1. Financial Statements                                                                              Page

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

     Condensed Consolidated Statements of Earnings -
       Three and Nine Months ended September 30, 1999 and 1998 (unaudited)......................................3

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

     Condensed Consolidated Statements of Cash Flows -
       Nine Months ended September 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 or Plan of Operations.......................................10-15

PART II. OTHER INFORMATION

   Item 1.  Legal Proceedings..................................................................................16

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

   Item 5.  Other Information..................................................................................16

   Item 6.  Exhibits and Reports on Form 8-K...................................................................17

SIGNATURES.....................................................................................................18
</TABLE>

                                      -1-

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


                          PART I. FINANCIAL INFORMATION

                          Item 1. Financial Statements

                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>

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

<S>                                                                                  <C>                     <C>
Cash and due from banks...........................................................   $    4,158,948          5,481,992
Federal funds sold and securities purchase under agreements
    to resell   ..................................................................       10,220,971         19,181,095
                                                                                       ------------         ----------

            Cash and cash equivalents.............................................       14,379,919         24,663,087

Securities held to maturity.......................................................       13,000,000          8,499,968
Securities available for sale.....................................................        2,769,913             -
Federal Home Loan Bank stock, at cost.............................................          214,900            127,100
Loans, net of allowance for loan losses of $807,462
    and $453,211    ..............................................................       71,272,448         44,932,943
Premises and equipment, net.......................................................        4,719,696          3,549,924
Accrued interest receivable and other assets......................................          682,326            453,104
                                                                                        -----------         ----------

            Total assets..........................................................    $ 107,039,202         82,226,126
                                                                                        ===========         ==========

    Liabilities and Stockholders' Equity

Liabilities:
    Noninterest-bearing demand deposits...........................................        8,114,049          6,365,180
    Savings and NOW deposits......................................................       32,300,481         33,307,881
    Money-market deposits.........................................................       15,152,677          4,010,998
    Time deposits   ..............................................................       32,178,562         20,306,399
                                                                                        -----------         ----------

            Total deposits........................................................       87,745,769         63,990,458

    Official checks ..............................................................        1,057,325            697,458
    Income taxes payable..........................................................           53,860             19,850
    Accrued interest payable and other liabilities................................          433,281            293,832
                                                                                        -----------         ----------

            Total liabilities.....................................................       89,290,235         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,
        3,472,543 and 3,455,039 shares issued and outstanding.....................           34,725             34,550
    Additional paid-in capital....................................................       19,242,566         19,158,862
    Accumulated deficit...........................................................       (1,522,178)        (1,968,884)
    Accumulated other comprehensive income (loss).................................           (6,146)            -
                                                                                        -----------         ----------

            Total stockholders' equity............................................       17,748,967         17,224,528
                                                                                        -----------         ----------

            Total liabilities and stockholders' equity............................    $ 107,039,202         82,226,126
                                                                                        ===========         ==========

</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                      -2-

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


                  Condensed Consolidated Statements of Earnings

<TABLE>
<CAPTION>


                                                     Three Months Ended        Nine Months Ended
                                                        September 30,            September 30,
                                                        -------------            -------------
                                                     1999          1998       1999            1998
                                                     ----          ----       ----            ----
                                                         (unaudited)              (unaudited)
Interest income:
<S>                                              <C>             <C>        <C>          <C>
    Loans                                        $1,430,116      791,158    3,710,293    2,272,218
    Securities                                      228,659      159,568      654,762      376,085
    Other interest-earning assets                   156,066      190,721      481,226      498,737
                                                 ----------   ----------   ----------   ----------

        Total interest income                     1,814,841    1,141,447    4,846,281    3,147,040

Interest expense on deposits                        755,682      527,604    1,944,807    1,524,627
                                                 ----------   ----------   ----------   ----------

Net interest income                               1,059,159      613,843    2,901,474    1,622,413

        Provision for loan losses                   103,000       36,500      357,000      107,500
                                                 ----------   ----------   ----------   ----------

Net interest income after provision for
    loan losses                                     956,159      577,343    2,544,474    1,514,913
                                                 ----------   ----------   ----------   ----------

Noninterest income:
    Service charges and fees                        113,485       74,112      315,804      185,148
    Other                                            25,956       43,346       90,725      119,994
                                                 ----------   ----------   ----------   ----------

        Total noninterest income                    139,441      117,458      406,529      305,142
                                                 ----------   ----------   ----------   ----------

Noninterest expense:
    Salaries and employee benefits                  392,778      283,753    1,077,389      749,779
    Occupancy and equipment                         119,085      107,074      353,174      274,021
    Advertising                                      38,958       35,559      117,668       85,383
    Professional fees                                34,812       14,582      118,406       25,696
    Office supplies                                  26,316       27,644       87,164       80,782
    Data processing                                  54,970       41,379      165,391      109,977
    Other                                            93,293       19,934      339,027      185,180
                                                 ----------   ----------   ----------   ----------

        Total noninterest expense                   760,212      529,925    2,258,219    1,510,818
                                                 ----------   ----------   ----------   ----------

Earnings before income taxes                        335,388      164,876      692,784      309,237

        Income taxes                                126,198       61,703      246,078      111,499
                                                 ----------   ----------   ----------   ----------

Net earnings                                     $  209,190      103,173      446,706      197,738
                                                 ==========   ==========   ==========   ==========

Earnings per share:
    Basic                                        $      .06          .03          .13          .07
                                                 ==========   ==========   ==========   ==========

    Diluted                                      $      .06          .03          .13          .06
                                                 ==========   ==========   ==========   ==========

Weighted-average number of shares outstanding:
    Basic                                         3,472,327    3,189,007    3,465,974    2,997,361
                                                 ==========   ==========   ==========   ==========

    Diluted                                       3,549,897    3,231,857    3,545,901    3,060,656
                                                 ==========   ==========   ==========   ==========

Dividends per share                              $      --           --           --           --
                                                 ==========   ==========   ==========   ==========
</TABLE>





See Accompanying Notes to Condensed Consolidated Financial Statements.

                                      -3-

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


            Condensed Consolidated Statement of Stockholders' Equity

                   Nine-Month Period Ended September 30, 1999

<TABLE>
<CAPTION>

                                                                                                       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)                  -              -               -           446,706        -             446,706
     Net change in unrealized
          gain on securities
          available for sale
          (unaudited)                         -               -               -            -           (6,146)          (6,146)
                                                                                                                  ------------

Comprehensive income (unaudited)                                                                                       440,560

Shares issued under stock
     option plan (unaudited)                 17,504            175          83,704         -             -              83,879
                                         ----------      ---------     -----------  -------------    --------     ------------

Balance at September 30, 1999
     (unaudited)                          3,472,543       $ 34,725      19,242,566     (1,522,178)     (6,146)     17,748,967
                                          =========         ======      ==========      =========       =====      ==========

</TABLE>





















See Accompanying Notes to Condensed Consolidated Financial Statements.

                                      -4-

<PAGE>





                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows


<TABLE>
<CAPTION>

                                                                                                Nine Months Ended
                                                                                                  September 30,
                                                                                             ---------------------
                                                                                             1999             1998
                                                                                             ----             ----
                                                                                                (unaudited)
Cash flows from operating activities:
<S>                                                                                    <C>                 <C>
    Net earnings                                                                      $     446,706           197,738
    Adjustments to reconcile net earnings to net cash
      provided by operating activities:
        Depreciation                                                                        161,074           107,950
        Provision for loan losses                                                           357,000           107,500
        Provision for deferred income taxes                                                  37,718           113,581
        Net amortization of loan fees, premiums and discounts                              (156,471)           85,665
        Increase in accrued interest receivable and other assets                           (229,222)         (128,084)
        Increase in accrued interest payable and
            other liabilities                                                               139,449            57,365
        Net increase in official checks                                                     359,867           720,700
                                                                                       ------------        ----------

                Net cash provided by operating activities                                 1,116,121         1,262,415
                                                                                        -----------         ---------

Cash flows from investing activities:
    Net increase in loans                                                               (26,599,689)      (12,764,530)
    Purchases of securities available for sale                                           (2,879,927)           -
    Purchase of securities held to maturity                                             (22,432,064)       (8,500,000)
    Maturities of securities held to maturity                                            17,996,627         2,999,806
    Principal paydowns of securities available for sale                                      95,220            -
    Purchase of Federal Home Loan Bank stock                                                (87,800)         (127,100)
    Purchase of premises and equipment                                                   (1,330,846)         (826,892)
                                                                                        -----------       ------------

                Net cash used in investing activities                                   (35,238,479)      (19,218,716)
                                                                                         ----------        ----------

Cash flows from financing activities:
    Net increase in deposits                                                             23,755,311        10,077,938
    Payment of stock offering costs                                                          -                (76,745)
    Common stock issued                                                                      83,879        10,314,809
                                                                                       ------------        ----------

                Net cash provided by financing activities                                23,839,190        20,316,002
                                                                                         ----------        ----------

Net (decrease) increase in cash and cash equivalents                                    (10,283,168)        2,359,701

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

Cash and cash equivalents at end of period                                             $ 14,379,919        14,570,278
                                                                                         ==========        ==========

Supplemental  disclosure of cash flow  information:
    Cash paid during the period for:
        Interest                                                                      $   1,819,563         1,466,382
                                                                                        ===========        ==========

        Income taxes                                                                 $      195,000            -
                                                                                       ============        ==========
</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  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  September  30,  1999,  and the  results of
        operations for the  three-month  and nine-month  periods ended September
        30, 1999 and 1998 and the cash flows for the  nine-month  periods  ended
        September 30, 1999 and 1998. The results of operations for the three and
        nine months ended September 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  September  30,  1999 or  September  30,  1998.  The  activity in the
        allowance for loan losses was as follows:
<TABLE>
<CAPTION>

                                                                   For the Three                    For the Nine
                                                                    Months Ended                    Months Ended
                                                                   September 30,                   September 30,
                                                                   -------------                   -------------
                                                               1999             1998            1999            1998
                                                               ----             ----            ----            ----
                                                                    (Unaudited)                    (Unaudited)

<S>                                                          <C>                <C>             <C>           <C>
                Balance at beginning of period               $ 707,211          369,000         453,211       298,000
                Provision charged to earnings                  103,000           36,500         357,000       107,500
                Charge-offs                                     (2,749)          -               (2,749)       -
                                                             ---------          -------         -------       -------

                Balance at end of period                     $ 807,462          405,500         807,462       405,500
                                                               =======          =======         =======       =======
</TABLE>


(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 nine months ended  September  30,
        1998; for 1999 the calculation is based on actual trading activity.  For
        the three and nine months ended September 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 September 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       $ 209       3,472,327     $ .06           $ 103       3,189,007      $ .03
                                                                       ===                                        ===

        Effect of dilutive securities-
            Incremental shares from
              assumed conversion
              of options                                  77,570                                    42,850
                                                       ---------                                ----------

        Diluted EPS:
            Net earnings available
              to common stockholders
              and assumed conversions      $ 209       3,549,897     $ .06           $ 103       3,231,857      $ .03
                                             ===       =========       ===             ===       =========        ===

</TABLE>
                                                                     (continued)

                                      -6-

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


        Notes to Condensed Consolidated Financial Statements (unaudited)


(3) Earnings Per Share, Continued.
<TABLE>
<CAPTION>

                                                   For the Nine Months Ended September 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                 $ 447       3,465,974     $ .13           $ 198       2,997,361      $ .07
                                                                       ===                                        ===

        Effect of dilutive securities-
            Incremental shares from
              assumed conversion
              of options                                  79,927                                   63,295
                                                       ---------                               ----------

        Diluted EPS:
            Net earnings available
              to common stockholders
              and assumed conversions      $ 447       3,545,901     $ .13           $ 198       3,060,656      $ .06
                                             ===       =========       ===             ===       =========        ===
</TABLE>

(4)     Regulatory Capital.  The Citizens Community Bank of Florida (the primary
        operating subsidiary) is required to maintain certain minimum regulatory
        capital  requirements.  The following is a summary at September 30, 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                                          12.86%           8.00%

                Tier I capital to risk-weighted assets                                         11.76%           4.00%

                Tier I capital to total assets - leverage ratio                                 8.17%           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 September
30, 1999, and for the three- and nine-month periods ended September 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
September  30,  1999,  and the  related  condensed  consolidated  statements  of
earnings for the three- and  nine-month  periods  ended  September  30, 1999 and
1998, and the condensed  consolidated  statement of stockholders' equity for the
nine month period  ended  September  30, 1999 and cash flows for the  nine-month
periods ended September 30, 1999 and 1998.  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
October 22, 1999

                                      -9-

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


                  Item 2. Management's Discussion and Analysis
                              or Plan of Operations

             Comparison of September 30, 1999 and December 31, 1998


Liquidity and Capital Resources
    The Company's  primary source of cash during the nine months ended September
    30,  1999 was from net deposit  inflows.  Cash was used  primarily  for loan
    originations and for the purchase of securities.  At September 30, 1999, the
    Company had outstanding  commitments to fund existing and new loans of $14.6
    million.  It is  expected  that these  requirements  will be funded from the
    sources  described  above.  At  September  30, 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>

                                                                                   Nine Months
                                                                                     Ended               Year Ended
                                                                                  September 30,         December 31,
                                                                                      1999                 1998
                                                                                 --------------        -------------
<S>                                                                                   <C>                 <C>
        Average equity as a percentage
           of average assets...............................................           18.01%              18.91%

        Equity to total assets at end of period............................           16.58%              20.95%

        Return on average assets (1).......................................            0.61%               0.32%

        Return on average equity (1).......................................            3.41%               1.71%

        Noninterest expense to average assets (1)..........................            3.10%               3.04%

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


        (1)  Annualized for the nine months ended September 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 September 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                                         $   68,456        1,430        8.29%      $ 35,072         791       8.95%
   Securities                                        15,205          229        6.02         10,125         160       6.27
   Other interest-earning assets (1)                 12,991          156        4.76         11,297         191       6.71
                                                  ---------       ------                    -------      ------

       Total interest-earning assets                 96,652        1,815        7.45         56,494       1,142       8.02
                                                                   -----                                  -----

Noninterest-earning assets                            9,420                                   6,491
                                                  ---------                                 -------

       Total assets                               $ 106,072                               $ 62,985
                                                    =======                                 ======

Interest-bearing liabilities:
   Savings, NOW and money-market deposit
       accounts                                      46,839          354        3.00         23,519         254       4.28
   Time deposits                                     30,952          402        5.15         19,192         274       5.66
                                                    -------       ------                     ------      ------

       Total interest-bearing liabilities            77,791          756        3.86         42,711         528       4.91
                                                                  ------                                 ------

Noninterest-bearing liabilities                      10,644                                   7,949
Stockholders' equity                                 17,637                                  12,325
                                                    -------                                  ------

       Total liabilities and stockholders'        $ 106,072                                $ 62,985
                                                    =======                                  ======
           equity

Net interest income                                              $ 1,059                               $    614
                                                                   =====                                 ======

Interest-rate spread (2)                                                        3.59%                                 3.12%
                                                                                ====                                  ====

Net interest margin (3)                                                         4.35%                                 4.35%
                                                                                ====                                  ====

Ratio of average interest-earning assets to
   average interest-bearing liabilities                1.24                                   1.32
                                                       ====                                   ====
</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>

                                                                          Nine Months Ended September 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                                          $  59,378        3,710        8.35%      $ 32,082       2,272      9.47%
   Securities                                        15,327          655        5.71          8,086         376      6.22
   Other interest-earning assets (1)                 13,592          481        4.73         10,654         499      6.26
                                                    -------       ------                     ------      ------

       Total interest-earning assets                 88,297        4,846        7.34         50,822       3,147      8.28
                                                                   -----                                  -----

Noninterest-earning assets                            8,680                                   6,539
                                                    -------                                 -------

       Total assets                                $ 96,977                               $ 57,361
                                                     ======                                 ======

Interest-bearing liabilities:
   Savings, NOW and money-market deposit
       accounts                                      43,417          926        2.85         23,842         701      3.93
   Time deposits                                     25,775        1,019        5.29         19,173         824      5.75
                                                     ------        -----                     ------      ------

       Total interest-bearing liabilities            69,192        1,945        3.76         43,015       1,525      4.74
                                                                   -----                                  -----

Noninterest-bearing liabilities                      10,323                                   4,823
Stockholders' equity                                 17,462                                   9,523
                                                     ------                                 -------

       Total liabilities and stockholders'         $ 96,977                                $ 57,361
                                                     ======                                  ======
           equity

Net interest income                                              $ 2,901                                $ 1,622
                                                                   =====                                  =====

Interest-rate spread (2)                                                        3.58%                                3.54%
                                                                                ====                                 ====

Net interest margin (3)                                                         4.39%                                4.26%
                                                                                ====                                 ====

Ratio of average interest-earning assets to
   average interest-bearing liabilities                1.28                                    1.18
                                                       ====                                    ====

</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


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

Results of Operations:

   General.  Net earnings for the three  months  ended  September  30, 1999 were
      $209,190 or $.06 per basic and diluted  share  compared to net earnings of
      $103,173 or $.03 per basic and diluted  share for the three  months  ended
      September  30,  1998.  This  increase in the  Company's  net  earnings was
      primarily due to an increase in net interest  income,  partially offset by
      an  increase  in  noninterest  expense  due to the  overall  growth of the
      Company.  Per  share  amounts  reflect  the 8%  stock  dividend  effective
      December 31, 1998.

   Interest  Income and Expense.  Interest  income  increased  by $673,394  from
      $1,141,447 for the three months ended September 30, 1998 to $1,814,841 for
      the three  months  ended  September  30,  1999.  Interest  income on loans
      increased $638,958 to $1,430,116 in 1999 due to an increase in the average
      loan  portfolio  balance for the three months ended  September 30, 1999 to
      $68.5 million  compared to $35.1 million during the 1998 period  partially
      offset by a decrease in the  weighted-average  yield from 8.95% in 1998 to
      8.34% in 1999.  Interest on  securities  increased  $69,091 to $228,659 in
      1999 due to a increase  in the  average  securities  portfolio  during the
      three months ended  September 30, 1999 to $15.2 million from $10.1 million
      during 1998. Interest on other  interest-earning  assets decreased $34,655
      to $156,066 in 1999 due to a decrease in the average  yield of such assets
      from 1998 to 1999.

      Interest expense on deposit  accounts  increased to $755,682 for the three
      months ended  September  30, 1999 from $527,604 for the three months ended
      September 30, 1998.  Interest expense  increased  primarily  because of an
      increase in the average balance from 1998 to 1999. The average balance for
      the three months ended  September 30, 1999 was $77.8  million  compared to
      $42.7 million during 1998.

   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
      collectibility  of the  Company's  loan  portfolio.  The provision for the
      three months ended  September  30, 1999 and 1998 was $103,000 and $36,500,
      respectively.  Management  believes the balance in the  allowance for loan
      losses of $807,462 at September 30, 1999 is adequate.

   Noninterest  Income.  Noninterest  income  increased to $139,441 in 1999 from
      $117,458 in 1998  primarily  because of  increases  in service  charges on
      deposit accounts and a higher level of deposit accounts in 1999.

   Noninterest Expense. Total noninterest expense increased $230,287 to $760,212
      for the three months ended  September 30, 1999 from $529,925 for the three
      months ended September 30, 1998,  primarily due to an increase in employee
      compensation  and  benefits  of  $109,025  as well as an increase in other
      noninterest  expense and occupancy  and  equipment  expense all due to the
      overall growth of the Company.

   Provision for Income  Taxes.  The income tax  provision  for the three months
      ended  September  30,  1999 was  $126,198,  an  effective  rate of  37.63%
      compared to $61,703,  an effective rate of 37.4% for the  comparable  1998
      period.


                                      -13-

<PAGE>



                CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARIES


     Comparison of the Nine-Month Periods Ended September 30, 1999 and 1998


Results of Operations:

   General.  Net  earnings  for the nine months  ended  September  30, 1999 were
      $446,706 or $.13 per basic and diluted  share  compared to net earnings of
      $197,738 or $.07 per basic and $.06 per diluted  share for the nine months
      ended  September 30, 1998. This increase in the Company's net earnings was
      primarily due to an increase in net interest  income,  partially offset by
      an increase in  noninterest  expenses.  Per share  amounts  reflect the 8%
      stock dividend effective December 31, 1998.

   Interest Income and Expense.  Interest  income  increased  by  $1,699,241  to
      $4,846,281  for the nine months ended  September 30, 1999 from  $3,147,040
      for the nine months ended  September  30, 1998.  Interest  income on loans
      increased  $1,438,075  to  $3,710,293  in 1999 due to an  increase  in the
      average loan  portfolio  balance for the nine months ended  September  30,
      1999 to $59.4 million  compared to $32.1 million during 1998.  Interest on
      securities  increased  $278,677  to $654,762 in 1999 due to an increase in
      the average  securities  portfolio  during the nine months ended September
      30, 1999 to $15.3 million from $8.1 million during 1998  partially  offset
      by a decrease in the weighted-average yield from 6.22% in 1998 to 5.71% in
      1999.  Interest  on other  interest-earning  assets  decreased  $17,511 to
      $481,226 in 1999 primarily due to a decrease in the average yield of these
      assets from 1998 to 1999.

      Interest expense on deposit accounts  increased to $1,944,807 for the nine
      months ended  September 30, 1999 from $1,524,627 for the nine months ended
      September 30, 1998.  Interest expense  increased  primarily  because of an
      increase in the average balance of deposits from 1998 to 1999. The average
      balance for the nine months  ended  September  30, 1999 was $69.2  million
      compared to $43.0 million during 1998.

   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
      collectibility  of the Company's loan portfolio.  The provision  increased
      from $107,500 for the nine months ended September 30, 1998 to $357,000 for
      the nine months ended September 30, 1999.

   Noninterest  Income.  Noninterest  income  increased to $406,529 in 1999 from
      $305,142 in 1998  primarily  because of  increases  in service  charges on
      deposit  accounts  in  1999,  partially  offset  by a  decrease  in  other
      noninterest income.

   Noninterest  Expense.   Total  noninterest   expense  increased  $747,401  to
      $2,258,219  for the nine months ended  September 30, 1999 from  $1,510,818
      for the nine months ended September 30, 1998, primarily due to an increase
      in employee  compensation  and benefits of $327,610 as well as an increase
      in occupancy and equipment  expenses,  advertising,  professional fees and
      data  processing and other  noninterest  expenses,  all due to the overall
      growth of the Company.

   Provision for Income  Taxes.  The income tax  provision  for the nine  months
      ended September 30, 1999 was $246,078, an effective rate of 35.5% compared
      to $111,499, an effective rate of 36.1% 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  involved the testing of
various internal and external mission critical systems. The service provider has
completed  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 1.    Legal Proceedings

The Company is party to various  legal  proceedings  in the  ordinary  course of
business.  Management  does not believe that there is any pending or  threatened
proceeding  against the Company  which,  if determined  adversely,  would have a
material  adverse effect on the Company's  business,  results of operations,  or
financial position.

Item 2.  Changes in Securities and Use of Proceeds

The following sales of shares of the Company's common stock, par value $0.01 per
share,  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 nine months ended  September 30, 1999,  five former  employees of the
Company  exercised  options and purchased  17,504  shares of Citizens  Community
Bancorp, Inc. stock, for an aggregate price of $83,879.  These transactions were
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
purposes.

Item 5.  Other Information

During the quarter  ended  September  30, 1999 Michael A.  Micallef  resigned as
Director,  President and Chief Executive  Officer of Citizens  Community Bank of
Florida (the "Bank"), the Company's principal operating  subsidiary.  Gregory E.
Smith,  the Bank's Senior Vice President and Cashier was appointed  President of
the Bank;  he remains  Senior  Vice  President  and Chief  Financial  Officer of
Citizens  Community  Bancorp,  Inc.  At the same time,  Richard  Storm,  Sr. the
Chairman of the Board of the Bank was also appointed Chief Executive Officer; he
remains Chairman of the Board and Chief Executive Officer of Citizens  Community
Bancorp, Inc.





                                      -16-

<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 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

   **10.3                Employment Contract with Michael A. Micallef, Jr.

     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 September 30, 1999.



*        Previously filed as a part of, and are hereby incorporated by reference
         from the  Company=s  Registration  Statement  on Form  SB-2  under  the
         Securities  Act  of  1933  for  the  Company,  as  effective  with  the
         Securities  and Exchange  Commission on December 7, 1995,  Registration
         No. 33-98090.

**       Previously filed as an exhibit to the Form 10-QSB for the quarter ended
         June 30, 1998.

                                       17

<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:  November 12, 1999                             By:  /s/ Richard Storm, Jr.
      -----------------------------                      -----------------------
                                                         Richard Storm, Jr.,
                                                         Chairman of the Board,
                                                         President and
                                                         Chief Executive Officer




Date:  November 12, 1999                             By:  /s/ Gregory E. Smith
      -----------------------------                      ---------------------
                                                         Gregory E. Smith,
                                                         Senior Vice President
                                                         and Chief Financial
                                                         Officer



                                       18