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**UNITED STATES
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 **December 31, 2005**

/  /  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ________ to __________
Commission file number__________________________

**CITIZENS COMMUNITY BANCORP**

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|**United States**(State or other jurisdiction of incorporation or organization)         | **20-0663325**(IRS Employer Identification Number)
|--------------------------------------------------------------------------------------- | --------------------------------------------------
|                                                                                       
|**2174 EastRidge Center, Eau Claire, WI 54701**(Address of principal executive offices)
|                                                                                       
|**715-836-9994**Issuer's telephone number)                                             
|                                                                                       
|(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 13 and 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 /  /

**APPLICABLE ONLY TO CORPORATE ISSUERS**

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

**At January 31, 2006,  there were 3,724,644  shares of the issuers' common stock outstanding**

Transitional Small Business Disclosure Format (Check one):   Yes /  /      No  /X/

|SEC2334 (1-04) | **Persons who are to respond to the collection of information contained in this form are	not required to respond unless the form displays a currently valid OMB control number.**
|-------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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**CITIZENS COMMUNITY BANCORP**

**INDEX**

|Part I - FINANCIAL INFORMATION | PageNumber
|------------------------------ | ----------
|                              
|                               | Item 1.   
|                              
|                               |           
|                              
|                               |           
|                              
|                               |           
|                              
|                               |           
|                              
|                               |           
|                              
|                               | Item 2.   
|                              
|                               | Item 3.   
|                              
|Part II - OTHER INFORMATION    | 17        
|                              
|SIGNATURES                     | 18        
|                              
|EXHIBITS                       | 19        

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**CITIZENS COMMUNITY BANCORP**
**Consolidated Balance Sheets****as of December 31, 2005 and September 30, 2005**

|*Assets*                                                         | *December 31, 2005* | *September 30, 2005*
|---------------------------------------------------------------- | ------------------- | --------------------
|**                                                               |                     |                     
|Cash and cash equivalents                                        | $8,980,678          | $9,265,477          
|Other interest-bearing deposits                                  | $1,151,066          | $1,444,233          
|Securities available-for-sale (at fair value)                    | $1,847,256          | $2,088,349          
|Federal Home Loan Bank stock                                     | $2,111,380          | $2,094,900          
|Loans Receivable                                                 | $226,163,415        | $218,733,884        
|Allowance for Loan Losses                                        | ($828,770)          | ($803,218)          
|Loans receivable - Net                                           | $225,334,645        | $217,930,666        
|Office properties and equipment - Net                            | $2,865,441          | $2,922,884          
|Accrued interest receivable - Loans                              | $685,420            | $612,644            
|Intangible assets                                                | $2,055,560          | $2,130,949          
|Goodwill                                                         | $5,465,619          | $5,465,619          
|Other assets                                                     | $1,929,466          | $1,751,770          
|**TOTAL ASSETS**                                                 | **$252,426,531**    | **$245,707,491**    
|                                                                 |                     |                     
|                                                                 |                     |                     
|*****Liabilities and Equity*                                     | *December 31, 2005* | *September 30, 2005*
|**                                                               |                     |                     
|Liabilities:                                                     |                     |                     
|Deposits                                                         | $187,605,012        | $177,469,100        
|Federal Home Loan Bank Advances                                  | $32,700,000         | $36,200,000         
|Other Liabilities                                                | $2,419,344          | $2,484,991          
|Total Liabilities****                                            | **$222,724,356**    | **$216,154,091**    
|****                                                             |                     |                     
|Stockholders' Equity:                                            |                     |                     
|Common Stock - 3,747,319 Shares issued                           | $37,473             | $37,473             
|Additional Paid-in Capital                                       | $18,774,567         | $18,779,709         
|Retained Earnings                                                | $12,656,035         | $12,536,512         
|Unearned ESOP Shares                                             | ($983,640)          | ($1,013,460)        
|Unearned Compensation                                            | ($408,914)          | ($389,169)          
|Accumulated other comprehensive loss                             | ($32,975)           | ($3,654)            
|Treasury Stock at cost, - 22,675 and 26,251 shares, respectively | ($340,371)          | ($394,011)          
|Total Stockholders' Equity****                                   | **$29,702,175**     | **$29,553,400**     
|**TOTAL LIABILITIES AND EQUITY**                                 | **$252,426,531**    | **$245,707,491**    

---

**CITIZENS COMMUNITY BANCORP**
**Consolidated Statements of Income****For the Three Months Ended December 31, 2005 and 2004**

|                                                      | **Three Months Ended**
|----------------------------------------------------- | ----------------------
|                                                      | **December 31, 2005** 
|                                                      |                       
|Interest and Dividend Income:                         |                       
|Interest and fees on loans                            | $3,607,626            
|Other interest and dividend income                    | $134,106              
|*Total interest and dividend income*                  | *$3,741,732*          
|Interest expense:                                     |                       
|Interest on deposits                                  | $1,126,830            
|Notes Payable Interest                                | $379,264              
|*Total interest expense*                              | *$1,506,094*          
|*Net Interest Income*                                 | *$2,235,638*          
|Provision for loan losses                             | $70,051               
|*Net interest income after provision for loan losses* | *$2,165,587*          
|                                                      |                       
|Noninterest Income:                                   |                       
|Service charges on deposit accounts                   | $245,182              
|Insurance commissions                                 | $77,390               
|Loan fees and service charges                         | $99,288               
|Securities Gains                                      | $27,110               
|Other                                                 | $4,109                
|*Total Noninterest Income*                            | *$453,079*            
|                                                      |                       
|Noninterest expense:                                  |                       
|Salaries and related benefits                         | $1,365,909            
|Occupancy - Net                                       | $217,294              
|Office                                                | $212,824              
|Data processing                                       | $100,986              
|Other                                                 | $435,002              
|*Total noninterest expense*                           | *$2,332,015*          
|                                                      |                       
|Income before provision for income tax                | $286,651              
|Provision for income taxes                            | $119,508              
|                                                      |                       
|Net income                                            | $167,143              
|                                                      |                       
|Per Share Information:                                |                       
|Basic Earnings                                        | $0.05                 
|Diluted Earnings                                      | $0.05                 
|Dividends Paid                                        | $0.05                 

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|                                                                                         | *December 31, 2005(unaudited)* | *December 31, 2004(unaudited)*
|---------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------
|Increase (decrease) in cash and cash equivalents:                                        |                                |                               
|Cash flows from operating activities:                                                    |                                |                               
|Net Income                                                                               | $167,143                       | $200,084                      
|Adjustments to reconcile net income    to net cash provided 
   by operating activities: |                                |                               
|Provision for depreciation                                                               | $90,633                        | $61,432                       
|Provision for loan losses                                                                | $70,051                        | $100,003                      
|Amortization of core deposit intangible                                                  | $75,390                        | $6,382                        
|Gain on sale of Securities                                                               | ($27,110)                      | $0                            
|Amortization of Restricted Stock                                                         | $22,452                        | $0                            
|Federal Home Loan Bank stock dividends                                                   | ($16,480)                      | ($12,400)                     
|ESOP contribution expense in excess    of shares released                                | $6,301                         | $12,087                       
|Increase (decrease) in accrued interest    receivable and other assets                   | ($250,473)                     | $36,602                       
|Increase (decrease) in other liabilities                                                 | ($65,647)                      | $276,478                      
|Total adjustments                                                                        | ($94,883)                      | $480,584                      
|Net cash provided by operating activities                                                | $72,260                        | $680,668                      
|Cash flows from investing activities:                                                    |                                |                               
|Proceeds from maturities of Other     Interest Bearing Deposits                          | $293,167                       | $0                            
|Proceeds from sale of Investments    Available for Sale                                  | $238,882                       | $0                            
|Purchase of Federal Home Loan Bank stock                                                 | $0                             | ($84,900)                     
|Net increase in loans                                                                    | ($7,474,030)                   | ($6,672,666)                  
|Capital expenditures                                                                     | ($33,190)                      | ($130,040)                    
|Net cash used in investing activities                                                    | ($6,975,171)                   | ($6,887,606)                  
|Cash flows from financing activities:                                                    |                                |                               
|Increase (decrease) in Borrowings                                                        | ($3,500,000)                   | $5,000,000                    
|Increase in deposits                                                                     | $10,135,912                    | $1,097,140                    
|Reduction in unallocated shares held by ESOP                                             | $29,820                        | $29,820                       
|Cash dividends paid                                                                      | ($47,620)                      | ($48,933)                     
|Net cash provided by financing activities                                                | $6,618,112                     | $6,078,027                    
|Net increase (decrease) in cash and cash equivalents                                     | ($284,799)                     | ($128,911)                    
|Cash and cash equivalents at beginning                                                   | $9,265,477                     | $4,768,007                    
|Cash and cash equivalents at end                                                         | $8,980,678                     | $4,639,096                    

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**CITIZENS COMMUNITY BANCORP** **CONSOLIDATED STATEMENTS OF****STOCKHOLDERS' EQUITY****For the Three Months ended December 31, 2005 and 2004****(UNAUDITED)**

|Three Months Ended December 31, 2005                                     | Shares        | CommonStock | AdditionalPaid-InCapital | RetainedEarnings | UnearnedESOPShares | UnearnedCompensation | AccumulatedOtherComprehensiveLoss | TreasuryStock  | Total          
|------------------------------------------------------------------------ | ------------- | ----------- | ------------------------ | ---------------- | ------------------ | -------------------- | --------------------------------- | -------------- | ---------------
|Balance - Beginning of Period                                            | 3,747,319     | $37,473     | $18,779,709              | $12,536,512      | ($1,013,460)       | ($389,169)           | ($3,654)                          | ($394,011)     | **$29,553,400**
|Comprehensive Income:                                                    |               |             |                          |                  |                    |                      |                                   |                |                
|Net Income                                                               |               |             |                          | $167,143         |                    |                      |                                   |                | $167,143       
|Net Unrealized Loss on Available    for Sale Securities                  |               |             |                          |                  |                    |                      | ($29,321)                         |                | ($29,321)      
|Total Comprehensive Income                                               |               |             |                          |                  |                    |                      |                                   |                | **$137,822**   
|****                                                                     |               |             |                          |                  |                    |                      |                                   |                |                
|Committed ESOP Shares                                                    |               |             |                          |                  | $29,820            |                      |                                   |                | $29,820        
|Appreciation in fair value of ESOP    shares charged to expense          |               |             | $6,301                   |                  |                    |                      |                                   |                | **$6,301**     
|Common Stock awarded for Recognition    and Retention Plan - 3576 Shares |               |             | ($11,443)                |                  |                    | ($42,197)            |                                   | $53,640        | **$0**         
|Amortization of Restricted Stock                                         |               |             |                          |                  |                    | $22,452              |                                   |                | **$22,452**    
|Cash Dividends ($0.05 per share)                                         |               |             |                          | ($47,620)        |                    |                      |                                   |                | ($47,620)      
|Balance - End of Period                                                  | **3,747,319** | **$37,473** | **$18,774,567**          | **$12,656,035**  | **($983,640)**     | **($408,914)**       | **($32,975)**                     | **($340,371)** | **$29,702,175**
|                                                                         |               |             |                          |                  |                    |                      |                                   |                |                
|                                                                         |               |             |                          |                  |                    |                      |                                   |                |                
|Three Months Ended December 31, 2004                                     | Shares        | CommonStock | AdditionalPaid-InCapital | RetainedEarnings | UnearnedESOPShares | UnearnedCompensation | AccumulatedOtherComprehensiveLoss | TreasuryStock  | Total          
|Balance - Beginning of Period                                            | 3,041,750     | $30,418     | $9,029,696               | $11,678,549      | ($1,132,740)       | $0                   | $0                                | $0             | **$19,605,923**
|Comprehensive Income:                                                    |               |             |                          |                  |                    |                      |                                   |                |                
|Net Income                                                               |               |             |                          | $200,084         |                    |                      |                                   |                | $200,084       
|Net Unrealized Loss on Available    for Sale Securities                  |               |             |                          | $0               |                    |                      |                                   |                | $0             
|Total Comprehensive Income                                               |               |             |                          | **$200,084**     | ****               |                      |                                   |                | **$200,084**   
|****                                                                     |               |             |                          |                  |                    |                      |                                   |                |                
|Committed ESOP Shares                                                    |               |             |                          |                  | $29,820            |                      |                                   |                | **$29,820**    
|Appreciation in fair value of ESOP    shares charged to expense          |               |             | $12,087                  |                  |                    |                      |                                   |                | $12,087        
|Cash dividends ($0.05 per share)                                         |               |             |                          | ($48,933)        |                    |                      |                                   |                | **($48,933)**  
|Balance - End of Period                                                  | **3,041,750** | **$30,418** | **$9,041,783**           | **$11,829,700**  | **($1,102,920)**   | **$0**               | **$0**                            | **$0**         | **$19,798,981**

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|                                |             | **Three months ended**                                                                   
|------------------------------- | ----------- | -----------------------------------------------------------------------------------------
|                                |             | December 31,2005                                                                         
|**Net Earnings:**               |             |                                                                                          
|                                | As Reported | $167,143                                                                                 
|                                |             | Additional compensation cost   under the fair value method,
   net of related tax effects
|                                |             | Pro forma                                                                                
|                                |             |                                                                                          
|**Basic Earnings Per Share:**   |             |                                                                                          
|                                | As Reported | $0.05                                                                                    
|                                | Pro forma   | $0.04                                                                                    
|**Diluted Earnings Per Share:** |             |                                                                                          
|                                | As Reported | $0.05                                                                                    
|                                | Pro forma   | $0.04                                                                                    

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|ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS
|------- | ------------------------------------------------------------------------------------

---

---

|                                        | Three months ended
|--------------------------------------- | ------------------
|                                        | Dec. 31, 2005     
|Balance at Beginning                    | $803,218          
|Provisions Charged
to Operating Expense | 70,051            
|Loans Charged Off                       | 47,164            
|Recoveries on Loans                     | 2,665             
|Balance at End                          | $828,770          

---

|                                    |                                           | Capital Ratios
|----------------------------------- | ----------------------------------------- | --------------
|                                    |                                           | Actual        
|                                    |                                           | Amount        
|As of December 31, 2005 (Unaudited) |                                           |               
|                                    | Total capital (to risk weighted assets)   | $19,617,000   
|                                    | Tier 1 capital (to risk weighted assets)  | $19,013,000   
|                                    | Tier 1 capital (to adjusted total assets) | $19,013,000   
|                                    | Tangible capital (to tangible assets)     | $19,013,000   
|As of September 30, 2005            |                                           |               
|                                    | Total capital (to risk weighted assets)   | $19,318,000   
|                                    | Tier 1 capital (to risk weighted assets)  | $18,693,000   
|                                    | Tier 1 capital (to adjusted total assets) | $18,693,000   
|                                    | Tangible capital (to tangible assets)     | $18,693,000   

---

---

---

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**PART II - OTHER INFORMATION**

***Item 1.*   LEGAL PROCEEDINGS**

In the normal course of business, the Company occasionally becomes involved in various legal proceedings.  In the opinion of management, any liability from such proceedings would not have a material adverse effect on the business or financial condition of the Company.

***Item 2.*  CHANGES IN SECURITIES AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES**

The following table summarizes our share repurchase activity during the three months ended December 31, 2005.

|Period                                       | TotalNumber ofSharesPurchased | AveragePrice Paidper Share | Total Number of Shares Purchased asPart of PubliclyAnnounced Plans | Maximum Numberof Shares That MayYet be PurchasedUnder the Plan
|-------------------------------------------- | ----------------------------- | -------------------------- | ------------------------------------------------------------------ | --------------------------------------------------------------
|October 1, 2005 through   October 31, 2005   | NA                            | NA                         | NA                                                                 | NA                                                            
|November 1, 2005 through   November 30, 2005 | NA                            | NA                         | NA                                                                 | NA                                                            
|December 1, 2005 through   December 31, 2005 | NA                            | NA                         | NA                                                                 | NA                                                            
|Total                                        | NA                            | NA                         | NA                                                                 | NA                                                            

***Item 3*.    DEFAULTS UPON SENIOR SECURITIES**

Not applicable

***Item 4.*    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

Not applicable

***Item 5.*    OTHER INFORMATION**

Not applicable

***Item 6.*    EXHIBITS**

| | (a) | Exhibits
| | --- | --------
| |     | 31.1    
| |     | 31.2    
| |     | 32.0    

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**SIGNATURES**

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

|      |                   | **CITIZENS COMMUNITY BANCORP**
|----- | ----------------- | ------------------------------
|Date: | February 10, 2006 |                               
|Date: | February 10, 2006 |                               

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