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


                     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, 1996

---  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.)

                        1112 1/2 North Collier Boulevard
                           Marco Island, Florida 33937
                           ---------------------------
                    (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                       701,242
--------------------------------------               ----------------------
                         (class)             Outstanding at September 30, 1996



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




<PAGE>



                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

                                      INDEX


Part I. Financial Information

   Item 1. Financial Statements                                             Page

     Condensed Consolidated Balance Sheet -
       September 30, 1996 (unaudited)..........................................2

     Condensed Consolidated Statements of Operations -
       Three and Nine Months ended September 30, 1996 (unaudited)..............3

     Condensed Consolidated Statement of Cash Flows -
       Nine months ended September 30, 1996 (unaudited)........................4

     Notes to Condensed Consolidated Financial Statements (unaudited)........5-8

   Item 2. Management's Discussion and Analysis of Financial Condition
     and Results of Operations..............................................9-11

Part II. Other Information

   Item 5.  Other Information.................................................12

   Item 6. Exhibits and Reports on Form 8-K...................................12

SIGNATURES....................................................................13



                                        1

<PAGE>
<TABLE>
<CAPTION>



                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

                          PART I. FINANCIAL INFORMATION

                          Item 1. Financial Statements

                      Condensed Consolidated Balance Sheet

                                                                                                           September 30,
                                                                                                           -------------
    Assets                                                                                                     1996
                                                                                                               ----
                                                                                                            (unaudited)
<S>                                                                                                        <C>
Cash and cash equivalents:
    Cash and due from banks                                                                                $    921,345
    Federal funds sold                                                                                        3,514,000
                                                                                                             ----------

            Total cash and cash equivalents                                                                   4,435,345

Investment securities held to maturity                                                                        3,486,001
Loans, net                                                                                                    7,750,212
Premises and equipment, net                                                                                   1,339,603
Accrued income and other assets                                                                                 240,900
Deferred tax asset                                                                                              111,800
                                                                                                             ----------

            Total                                                                                          $ 17,363,861
                                                                                                             ==========


    Liabilities and Stockholders' Equity

Deposits:
    Demand deposits                                                                                           1,316,013
    NOW deposits                                                                                              5,844,921
    Money-market deposits                                                                                       523,750
    Savings deposits                                                                                            224,870
    Other time deposits                                                                                       3,306,382
                                                                                                             ----------

            Total deposits                                                                                   11,215,936

Other liabilities                                                                                                62,363
                                                                                                             ----------

            Total liabilities                                                                                11,278,299
                                                                                                             ----------

Stockholders' Equity:
    Preferred stock, $.01 par value, 2,000,000 shares authorized,
        none issued or outstanding                                                                                 -
    Common stock, $.01 par value, 8,000,000 shares authorized,
        701,242 shares issued and outstanding                                                                     7,012
    Additional paid-in capital                                                                                6,264,838
    Accumulated deficit                                                                                        (186,288)
                                                                                                             ----------

            Total stockholders' equity                                                                        6,085,562
                                                                                                             ----------

            Total                                                                                          $ 17,363,861
                                                                                                             ==========
</TABLE>




                                        2

See Accompanying Notes to Condensed Consolidated Financial Statements.

<PAGE>
<TABLE>
<CAPTION>

                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

                 Condensed Consolidated Statements of Operations


                                                                                       Three Months       Nine Months
                                                                                           Ended            Ended
                                                                                      September 30,     September 30,
                                                                                      -------------     -------------
                                                                                           1996               1996
                                                                                           ----               ----
                                                                                        (unaudited)       (unaudited)
Interest income:
<S>                                                                                       <C>                <C>    
    Loans                                                                                 $ 117,090           133,527
    Federal funds sold                                                                       66,924           183,018
    Investment securities                                                                    54,541            76,094
    Deposits in banks                                                                          -               43,863
                                                                                          ---------           -------

            Total interest income                                                           238,555           436,502
                                                                                            -------           -------

Interest expense:
    Deposits                                                                                 85,619           143,446
    Mortgage                                                                                    -               7,174
                                                                                          ---------           -------

            Total interest expense                                                           85,619           150,620
                                                                                           --------           -------

            Net interest income                                                             152,936           285,882

Provision for loan losses                                                                    13,000            19,500
                                                                                           --------          --------

Net interest income after provision for loan losses                                         139,936           266,382
                                                                                            -------           -------

Other income, customer service charges                                                        9,146            14,919
                                                                                           --------          --------

Other expense:
    Compensation and benefits                                                               103,201           223,504
    Occupancy and equipment                                                                  36,894            71,237
    Outside services                                                                         20,244            33,263
    Office supplies and expense                                                              25,495            73,060
    Marketing expenses                                                                        2,664            20,370
    Professional fees                                                                         9,500            38,901
    Miscellaneous                                                                            28,906            83,370
                                                                                           --------          --------
            Total other expense                                                             226,904           543,705
                                                                                            -------           -------

Loss before income tax benefit                                                             (77,822)         (262,404)

Income tax benefit                                                                         (29,200)          (98,400)
                                                                                           -------           -------

Net loss                                                                                  $(48,622)         (164,004)
                                                                                            =======          =======

Loss per share                                                                            $   (.07)             (.25)
                                                                                           ========         ========

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

Weighted-average number of shares outstanding                                               694,790           654,395
                                                                                            =======           =======


See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       3
<PAGE>
<TABLE>
<CAPTION>

                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

                 Condensed Consolidated Statement of Cash Flows


                                                                                                          Nine Months
                                                                                                            Ended
                                                                                                         September 30,
                                                                                                         -------------
                                                                                                             1996
                                                                                                             ----
                                                                                                          (unaudited)
Cash flows from operating activities:
<S>                                                                                                      <C>          
    Net loss                                                                                             $   (164,004)
    Adjustments to reconcile net loss to net cash
        used in operating activities:
            Depreciation and amortization                                                                      36,485
            Provision for loan losses                                                                          19,500
            Increase in accrued income and other assets                                                      (105,660)
            Increase in other liabilities                                                                      13,332
            Deferred tax benefit                                                                              (98,400)
                                                                                                           ----------

                Net cash used in operating activities                                                        (298,747)
                                                                                                           ----------

Cash flows from investing activities:
    Purchase of premises and equipment                                                                       (686,541)
    Purchase of investment securities                                                                      (4,736,001)
    Maturity of investment securities                                                                       1,250,000
    Loans originated, net of principal collected                                                           (7,769,712)
                                                                                                           ---------- 

                Net cash used in investing activities                                                     (11,942,254)
                                                                                                           ----------

Cash flows from financing activities:

    Net increase in deposits                                                                               11,215,936
    Redemption of preferred stock                                                                             (21,000)
    Repayment of advance due to organizers                                                                   (239,000)
    Proceeds from issuance of common stock                                                                  6,311,178
    Payment of mortgage payable                                                                              (593,806)
    Payment of offering costs                                                                                 (39,328)
                                                                                                           ---------- 

                Net cash provided by financing activities                                                  16,633,980
                                                                                                           ----------

Net increase in cash and cash equivalents                                                                   4,392,979

Cash and cash equivalents at beginning of period                                                               42,366
                                                                                                           ----------

Cash and cash equivalents at end of period                                                               $  4,435,345
                                                                                                           ==========

Supplemental  disclosure of cash flow  information-
  Cash paid during the period for:
        Interest                                                                                         $    137,222
                                                                                                           ==========

        Income taxes                                                                                     $       -
                                                                                                           =========




See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       4

<PAGE>

                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

        Notes to Condensed Consolidated Financial Statements (unaudited)


(1) Description  of Business  and  Summary of  Significant  Accounting  Policies

General.  Citizens   Community   Bancorp,   Inc.  (the  "Holding  Company")  was
     incorporated  on May  24,  1995.  The  Holding  Company  owns  100%  of the
     outstanding   common  stock  of  Citizens   Community   Bank  (the  "Bank")
     (collectively   the   "Company").   The  Holding   Company  was   organized
     simultaneously  with the Bank and its only  business is the  ownership  and
     operation of the Bank.  The Bank is a Florida  state  chartered  commercial
     bank and is insured by the Federal Deposit Insurance Corporation.  The Bank
     opened  for  business  on March  8,  1996 and  provides  community  banking
     services to businesses and  individuals  in Collier  County,  Florida.  The
     Company has adopted a fiscal year ending December 31.

Basis of Presentation. The accompanying consolidated financial statements of the
     Company  include  the  accounts of the  Holding  Company and the Bank.  All
     significant  intercompany accounts and transactions have been eliminated in
     consolidation.  The  accounting  and  reporting  practices  of the  Company
     conform  to  generally  accepted  accounting   principles  and  to  general
     practices within the banking industry.

Estimates. The preparation of financial  statements in conformity with generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial  statements  and the  reported  amounts of revenues  and expenses
     during the  reporting  periods.  Actual  results  could  differ  from those
     estimates.

Cash and Cash Equivalents. For purposes of the statement of cash flows, cash and
     cash equivalents are defined as those amounts presented in the accompanying
     consolidated  balance  sheet as cash and due from banks and  federal  funds
     sold.

Loans and Allowance for Loan Losses. Loans are reported at the principal  amount
     outstanding.  The allowance for loan losses has been established  through a
     provision  for loan  losses  charged to  operations.  Loans will be charged
     against the  allowance  for loan losses when  management  believes that the
     collectibility of the principal is unlikely.  Subsequent recoveries will be
     added to the allowance. The allowance is an amount that management believes
     will be adequate to absorb  possible  losses inherent in existing loans and
     loan  commitments,  based on evaluations of  collectibility  and prior loss
     experience.   Management  will  evaluate  the  adequacy  of  the  allowance
     quarterly, or more frequently if considered necessary.  The evaluation will
     take into consideration such factors as changes in the nature and volume of
     the  loan  portfolio,   overall  portfolio  quality,  loan  concentrations,
     specific  problem  loans  and  commitments,  and  current  and  anticipated
     economic conditions that may affect the borrower's ability to repay.

Uncollected  Interest.  The Company will place loans on  nonaccrual  status when
     management believes the collection of interest is doubtful. If the ultimate
     collectibility  of principal and interest due according to the  contractual
     terms of the loan  agreement  is in  doubt,  the  loan  will be  considered
     impaired, and interest is credited to income when collected.
                                                                     (continued)
                                        5

<PAGE>

                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

   Notes to Condensed Consolidated Financial Statements (unaudited), Continued


(1) Description  of Business  and Summary of  Significant  Accounting  Policies,
    Continued 

Loan Impairment  and  Losses.   The  Company  adopted  Statements  of  Financial
     Accounting Standards No. 114 and 118 ("SFAS 114 and 118"). These Statements
     address the accounting by creditors for  impairment of certain  loans.  The
     Statements  generally  require the Company to identify  loans for which the
     Company probably will not receive full repayment of principal and interest,
     as impaired loans. The Statements  require that impaired loans be valued at
     the present value of expected  future cash flows,  discounted at the loan's
     effective  interest rate, or at the observable market price of the loan, or
     the  fair  value of the  underlying  collateral  if the loan is  collateral
     dependent.  The Company has  implemented  the  Statements by  instituting a
     quarterly  review of the adequacy of the  allowance for loan losses to also
     identify  and value  impaired  loans in  accordance  with  guidance  in the
     Statements.

     Management will consider a variety of factors in determining whether a loan
     is impaired,  including  (i) any notice from the borrower that the borrower
     will be unable to repay all  principal and interest  amounts  contractually
     due under the loan  agreement,  (ii) any  delinquency  in the principal and
     interest payments other than minimum delays or shortfalls in payments,  and
     (iii) other  information known by management which would indicate that full
     repayment of the  principal  and interest is not  probable.  In  evaluating
     loans for impairment,  management will generally consider  delinquencies of
     60 days or less to be minimum  delays,  and  accordingly  will not consider
     such delinquent loans to be impaired in the absence of other indications of
     impairment.

     Management will evaluate smaller balance,  homogeneous loans for impairment
     and adequacy of allowance for loan losses  collectively,  and will evaluate
     other loans for  impairment  individually,  on a  loan-by-loan  basis.  The
     Company  will  evaluate  the  consumer  loan  portfolio  which are  smaller
     homogeneous  loans for impairment on an aggregate  basis,  and will utilize
     its  own  historical  charge-off  experience,  as  well  as the  charge-off
     experience  of its peer  group and  industry  statistics  to  evaluate  the
     adequacy of the allowance for loan losses.  For all commercial,  commercial
     real estate and residential mortgage loans, the Company will evaluate loans
     for impairment on a loan-by-loan basis.

     The Company  will  evaluate  all  nonaccrual  loans as well as any accruing
     loans  exhibiting  collateral or other credit  deficiencies for impairment.
     With respect to impaired,  collateral-  dependent loans, any portion of the
     recorded  investment  in the  loan  that  exceeds  the  fair  value  of the
     collateral will be charged off. There were no loans  identified as impaired
     during the nine month period ended September 30, 1996.

     For impairment  recognized in accordance with these Statements,  the entire
     change in the present value of expected cash flows, or the entire change in
     estimated fair value of collateral for collateral  dependent  loans will be
     reported  as a  provision  for  loan  losses  in the same  manner  in which
     impairment  initially was recognized or as a reduction in the amount of the
     provision that otherwise would be reported.

Loan Origination  Fees and  Costs.  Loan  origination  and  commitment  fees and
     certain  direct  loan  origination  costs are  deferred  and the net amount
     amortized to interest  income as a yield  adjustment  over the  contractual
     life of the related loan.

                                                                     (continued)



                                       6
<PAGE>

                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

   Notes to Condensed Consolidated Financial Statements (unaudited), Continued


(1) Description  of Business  and Summary of  Significant  Accounting  Policies,
    Continued 

Premises  and  Equipment.  Premises  and  equipment  are  stated  at  cost  less
     accumulated amortization and depreciation.  It is the policy of the Company
     to provide  depreciation  based on the estimated  useful life of individual
     assets,  calculated using the straight-line method.  Estimated useful lives
     generally  range  from three to  twenty-five  years for Bank  building  and
     improvements,  five years for leasehold  improvements and five to ten years
     for furniture, fixtures and equipment.

Organizational Costs.  All pre-opening  expenses have been charged to expense as
     incurred.  All organizational  costs have been deferred and amortized using
     the straight-line method over five years.

Advances  from   Organizers.   Certain   of  the   Company's   organizers   made
     noninterest-bearing advances of $239,000 to the Company. These amounts were
     used to fund organizational and other costs incurred by the Holding Company
     and the Bank.  The advances  were repaid to the  organizers  on February 7,
     1996 from the proceeds of the Company's common stock offering.

Income Taxes.  Provisions  for  income  taxes  are  based on  taxes  payable  or
     refundable for the current year and deferred taxes on temporary differences
     between  the amount of  taxable  income  and  pretax  financial  income and
     between the tax bases of assets and liabilities and their reported  amounts
     in  the  consolidated   financial  statements.   Deferred  tax  assets  and
     liabilities  are  included  in the  consolidated  financial  statements  at
     currently  enacted  income tax rates  applicable to the period in which the
     deferred tax assets and  liabilities are expected to be realized or settled
     as prescribed in FASB Statement No. 109,  Accounting  for Income Taxes.  As
     changes  in tax  laws  or  rates  are  enacted,  deferred  tax  assets  and
     liabilities are adjusted through the provision for income taxes.

Per  Share Amounts.  Loss per common share was computed by dividing the net loss
     for the period by the weighted average number of shares  outstanding during
     the period from  February 7, 1996 (the date escrow was broken) to September
     30,  1996.  The  effect  of the  outstanding  warrants  was  not  material.
  
                                                                     (continued)
















                                       7
<PAGE>

                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

   Notes to Condensed Consolidated Financial Statements (unaudited), Continued


(2) Regulatory Matters

     Banking laws and regulations limit the amount of dividends that may be paid
        by the  Bank.  The  FDIC  requires  insured  banks to  maintain  certain
        specified levels of capital.

            Leverage-Capital  Ratio.  The  FDIC  requires  banks to  maintain  a
            minimum  leverage-  capital  ratio of Tier I (as  defined)  to total
            assets.  The  leverage-capital  ratio generally ranges from 3% to 5%
            based on the bank's rating under the regulatory  rating system.  The
            Bank's required leverage-capital ratio at September 30, 1996 was 4%.

            Risk-Weighted  Assets  Capital  Ratios.  The FDIC has also adopted a
            risk-based  capital  statement of policy which imposes an additional
            capital  standard on insured banks.  Under this  regulation,  a bank
            must classify its assets and certain  off-balance  sheet  activities
            into categories,  and maintain  specified levels of capital for each
            category.  The amount of capital that is required is dependent  upon
            the amount of risk  attributed  to each category by the FDIC. A bank
            must have a total risk-based  capital ratio of no less than 8% and a
            Tier I capital  to  risk-weighted  assets  ratio of no less than 4%.
            Under the  statement  of policy,  certain  assets are required to be
            deducted  from  risk-based  capital.  Such  assets  include  certain
            nonqualifying intangible assets,  unconsolidated banking and finance
            subsidiaries,  investments in securities subsidiaries and reciprocal
            holdings of capital  instruments with other banks. In addition,  the
            FDIC may consider  deducting other assets on a case-by-case basis or
            investments in other  subsidiaries on a case-by-case  basis or based
            on  the  general   characteristics   or  functional  nature  of  the
            subsidiaries.

            At  September  30,  1996,  the  Bank  was  in  compliance  with  all
            regulatory capital requirements.


                                        8

<PAGE>



                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

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

                      Nine Months Ended September 30, 1996

General

    Citizens Community Bancorp, Inc. (the "Holding Company") was incorporated on
    May 24, 1995. The Holding Company owns 100% of the outstanding  common stock
    of Citizens  Community Bank (the "Bank")  (collectively the "Company").  The
    Holding  Company  was  organized  simultaneously  with the Bank and its only
    business is the ownership  and operation of the Bank.  The Bank is a Florida
    state  chartered  commercial  bank and is  insured  by the  Federal  Deposit
    Insurance  Corporation.  The Bank  opened for  business on March 8, 1996 and
    provides community banking services to businesses and individuals in Collier
    County, Florida. The Company has adopted a fiscal year ending December 31.

Liquidity and Capital Resources

    The Company's  primary source of cash during the nine months ended September
    30,  1996 was  from the  proceeds  from  the  sale of  common  stock of $6.3
    million, net deposit inflows of $11.2 million and the maturity of investment
    securities of $1.3 million. Cash was used primarily to repay a mortgage loan
    on land purchased during the  organizational  stage, to purchase  investment
    securities, to originate loans, to fund construction of a permanent building
    and repayment of advances to organizers.  At September 30, 1996, the Company
    had  outstanding  commitments to originate  loans totaling $2.3 million.  At
    September 30, 1996, the Bank exceeded its regulatory liquidity requirements.

Common Stock Offering

    As of  September  30, 1996,  the Company has sold  701,242  shares of common
    stock for an  aggregate  of  $6,311,178.  The  Company  incurred  $39,328 in
    offering  expenses relating to their public offering of the Company's common
    stock and  warrants.  Offering  expenses  were  deducted  from the  proceeds
    received from the sale of common stock and warrants.

Common Stock Warrants

    During the initial  offering period shares were offered in units with a unit
    consisting  of one  share of  common  stock and one  warrant.  Each  warrant
    entitles  the holder  thereof  to  purchase  1/2 of one share of  additional
    common stock for $9.00 per share during the 24 month  period  following  the
    effective date of registration of the shares. As of September 30, 1996 there
    were 670,000 warrants outstanding  entitling the holders to purchase 335,000
    shares of the Company's stock. No warrants have been exercised.

Depositors' Stock Purchase Plan

    The  Company  is  offering  common  stock to  depositors  of the Bank.  Each
    depositor  who opens a deposit  account with a balance of $1,000 or more may
    purchase  up to 500 shares of common  stock at $9.00 per  share.  This offer
    expires March 8, 1997.


                                        9

<PAGE>



                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

Results of Operations

                   Three-Month Period Ended September 30, 1996

General. Net loss for the three months ended September 30, 1996 was $(48,622) or
     $(.07) per share. At September 30, 1996 the Bank had not achieved the asset
     size necessary to operate profitably.

Interest Income and Expense.  Interest  income  totalled  $238,600 for the three
     months  ended  September  30,  1996.  Interest  income  earned on loans was
     $117,000.  The average  loan  portfolio  balance for the three months ended
     September 30 was $4.9 million with a weighted average yield of 9.6%.

     Interest  earned  on  investment   securities  was  $54,500.   The  average
     investment  securities  portfolio was $3.7 million with a weighted  average
     yield of 5.9%.  Interest  on  federal  funds  sold  and  deposits  in banks
     totalled  $66,900.  The average  balance of these  assets was $4.9  million
     earning a weighted average yield of 5.5%.

     Interest  expense on deposit  accounts  amounted  to $85,600  for the three
     months ended September 30, 1996.

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 September 30, 1996 was
     $13,000.

OtherExpense.  Other  expense  totalled  $226,900  for the  three  months  ended
     September 30, 1996. Compensation and benefits was the largest, amounting to
     $103,200.


                                       10

<PAGE>



                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

Results of Operations

                   Nine-Month Period Ended September 30, 1996

General. Net loss for the nine months ended September 30, 1996 was $(164,004) or
     $(.25) per share. At September 30, 1996 the Bank had not achieved the asset
     size necessary to operate profitably.

Interest Income and  Expense.  Interest  income  totalled  $436,500 for the nine
     months  ended  September  30,  1996.  Interest  income  earned on loans was
     $133,500.  The average  loan  portfolio  balance for the nine months  ended
     September  30, 1996 was $1.8  million and the  weighted  average  yield was
     9.9%.

     Interest on  investment  securities  was  $76,100.  The average  investment
     securities  portfolio  was $1.8  million with a weighted  average  yield of
     5.6%.  Interest  on  federal  funds  sold and  deposits  in banks  totalled
     $226,900.  The  average  balance of these  assets was $4.9  million  with a
     weighted average yield of 6.2%.

     Interest  expense on deposit  accounts  amounted to  $143,400  for the nine
     months ended September 30, 1996. The weighted  average cost of deposits was
     3.0%.

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 nine months ended  September 30, 1996 was
     $19,500.

OtherExpense.  Other  expense  totalled  $543,700  for  the  nine  months  ended
     September 30, 1996. Compensation and benefits was the largest, amounting to
     $223,500.


                                       11

<PAGE>



                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

                           PART II. OTHER INFORMATION

                            Item 5. Other Information

The Company has accepted subscriptions  totalling $27,612 for Depositor's Shares
of common stock,  as provided for in the Company's SB-2  Registration  Statement
which was  effective  December  7,  1995,  and which is  incorporated  herein by
reference.  The 3,068 shares represented by these  subscriptions are expected to
be issued by the Company during the fourth quarter of this year.

                    Item 6. Exhibits and Reports on Form 8-K

There were no reports on Form 8-K filed  during the three months  September  30,
1996.



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                 CITIZENS COMMUNITY BANCORP, INC. AND SUBSIDIARY

                           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 6, 1996                           By: /s/ Richard Storm, Jr.
     -----------------                               ---------------------------
                                                  Richard Storm, Jr., 
                                                    Chairman of the Board
                                                    and Chief Executive Officer




Date: November 6, 1996                           By: /s/ Stephen A. McLaughlin
     -----------------                               ---------------------------
                                                    Stephen A. McLaughlin,
                                                      Secretary and Treasurer
                                                      (Chief Accounting Officer)




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