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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 **June 30, 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**

---

|**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 July 31, 2005, there were 3,721,068 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.**
|-------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

**CITIZENS COMMUNITY BANCORP**

**INDEX**

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

|**CITIZENS COMMUNITY BANCORPConsolidated Balance Sheets
as of June 30, 2005 and September 30, 2004**
|----------------------------------------------------------------------------------------------------
|*Assets*                                                                                            
|                                                                                                    
|Cash and cash equivalents                                                                           
|Loans receivable                                                                                    
|Allowance for loan losses                                                                           
|Loans receivable, net                                                                               
|Office properties and equipment - Net                                                               
|Federal Home Loan Bank stock                                                                        
|Accrued interest receivable                                                                         
|Intangible assets                                                                                   
|Other assets                                                                                        
|**TOTAL ASSETS**                                                                                    
|                                                                                                    
|*Liabilities and Equity*                                                                            
|                                                                                                    
|Liabilities:                                                                                        
|Deposits                                                                                            
|Federal Home Loan Bank advances                                                                     
|Other Liabilities                                                                                   
|Total Liabilites****                                                                                
|Stockholders' Equity:                                                                               
|Common Stock - 3,041,750 shares issued                                                              
|Additional Paid-in Capital                                                                          
|Retained Earnings                                                                                   
|Treasury Stock - 26,251 shares at cost                                                              
|Unearned ESOP Shares                                                                                
|Unearned Compensation                                                                               
|Total Stockholders' Equity****                                                                      
|**TOTAL LIABILITIES AND EQUITY**                                                                    

**CITIZENS COMMUNITY BANCORPConsolidated Statements of Income
For the Three and Nine Months Ended June 30, 2005 and 2004
(Unaudited)**

|                                                      | **Three Months Ended** | **Nine Months Ended**
|----------------------------------------------------- | ---------------------- | ---------------------
|                                                      | **June 30, 2005**      | **June 30, 2004**    
|Interest and Dividend Income:                        
|Interest and fees on loans                            | $2,891,496             | $2,392,816           
|Other interest and dividend income                    | $24,474                | $17,734              
|*Total interest and dividend income*                  | *$2,915,970*           | *$2,410,550*         
|**Interest expense:                                  
|Interest on deposits                                  | $810,231               | $654,123             
|Notes Payable Interest                                | $210,756               | $15,417              
|*Total interest expense*                              | $1,020,987             | $669,540             
|*Net Interest Income*                                 | *$1,894,983*           | *$1,741,010*         
|Provision for loan losses                             | $103,200               | $99,999              
|*Net interest income after provision for loan losses* | *$1,791,783*           | *$1,641,011*         
|                                                     
|Noninterest Income:                                  
|Service charges on deposit accounts                   | $195,017               | $195,508             
|Insurance commissions                                 | $77,298                | $95,854              
|Loan fees and service charges                         | $83,134                | $63,017              
|Other                                                 | $67,484                | $4,476               
|*Total noninterest income*                            | *$422,933*             | *$358,855*           
|Noninterest expense:                                 
|Salaries and related benefits                         | $1,127,902             | $1,021,253           
|Occupancy - Net                                       | $179,692               | $161,291             
|Office                                                | $148,719               | $124,869             
|Data processing                                       | $66,284                | $66,843              
|Other                                                 | $255,955               | $228,294             
|*Total noninterest expense*                           | *$1,778,552*           | *$1,602,550*         
|Income before provision for income tax                | $436,164               | $397,316             
|Provision for income taxes                            | $163,655               | $156,667             
|Net income                                            | $272,509               | $240,649             
|*Basic and diluted earnings per share*                | *$0.09*                | *$0.08*              

**CITIZENS COMMUNITY BANCORPConsolidated Statements of Cash Flows
For the Nine Months ended June 30, 2005 and 2004**

|                                                           | *June 30, 2005(unaudited)* | *June 30, 2004(unaudited)*
|---------------------------------------------------------- | -------------------------- | --------------------------
|                                                          
|**Increase (decrease) in cash and cash equivalents:       
|Cash flows from operating activities:                     
|Net Income                                                 | $856,499                   | $608,571                  
|                                                          
|Adjustments to reconcile net income to net cash            |                            |                           
|provided by operating activities:                          |                            |                           
|Provision for depreciation                                 | $187,575                   | $194,240                  
|Provision for loan losses                                  | $305,336                   | $295,998                  
|Amortization of core deposit intangible                    | $19,147                    | $17,948                   
|Amortization of Restricted Stock                           | $37,420                    | $0                        
|Federal Home Loan Bank stock dividends                     | -$36,900                   | -$32,900                  
|ESOP contribution expense in excess of shares    released  | $34,919                    | $0                        
|Decrease in accrued interest receivable   and other assets | -$499,969                  | -$240,109                 
|Increase in other liabilities                              | $443,498                   | $254,860                  
|                                                          
|Total adjustments                                          | $491,026                   | $490,037                  
|                                                          
|Net cash provided by operating activities                  | $1,347,525                 | $1,098,608                
|                                                          
|Cash flows from investing activities:                      |                            |                           
|Purchase of Federal Home Loan Bank stock                   | -$810,400                  | -$112,000                 
|Net increase in loans                                      | -$29,505,434               | -$18,995,180              
|Capital expenditures                                       | -$195,321                  | -$74,956                  
|Cash received for branch acquisition                       | $0                         | $6,970,198                
|                                                          
|Net cash used in investing activities                      | -$30,511,155               | -$12,211,938              
|                                                          
|Cash flows from financing activities:                      |                            |                           
|Increase in Borrowings                                     | $20,000,000                | $9,800,000                
|Increase (decrease) in deposits                            | $9,523,736                 | -$4,339,971               
|Purchase 59,618 shares of common   stock for  RRP          | -$894,866                  | $0                        
|Purchase 19 shares of common stock from Emp 401K           | -$269                      | $0                        
|Proceeds from sale of common stock                         | $0                         | $9,048,190                
|Formation of CCMHC                                         | $0                         | -$100,000                 
|Loan to ESOP for purchase of common stock                  | $0                         | -$1,192,360               
|Reduction in unallocated shares held by ESOP               | $89,460                    | $21,105                   
|Cash dividends paid                                        | -$145,487                  | $0                        
|                                                          
|Net cash provided by financing activities                  | $28,572,574                | $13,236,964               
|                                                          
|Net increase (decrease) in cash and cash equivalents       | -$591,056                  | $2,123,634                
|Cash and cash equivalents at beginning                     | $4,768,007                 | $3,074,024                
|                                                          
|Cash and cash equivalents at end                           | $4,176,951                 | $5,197,658                
|                                                          

**CITIZENS COMMUNITY BANCORPCONSOLIDATED STATEMENTS OF
STOCKHOLDERS' EQUITY
For the Nine Months ended June 30, 2005 and 2004
(UNAUDITED)**

|                                                                             |               |             |                |                |                 | Unearned        
|---------------------------------------------------------------------------- | ------------- | ----------- | -------------- | -------------- | --------------- | ----------------
|                                                                             |               | Common      | Treasury       | Capital        | Retained        | ESOP            
|Nine Months Ended June 30, 2005                                              | Shares        | Stock       | Stock          | Surplus        | Earnings        | Shares          
|Balance - Beginning of period                                                | 3,041,750     | $30,418     | $0             | $9,029,696     | $11,678,549     | ($1,132,740)    
|****Comprehensive Income:                                                   
|Net Income                                                                   |               |             |                |                | $856,499        |                 
|Other Comprehensive Income                                                   |               |             |                |                | $0              |                 
|Total Comprehensive Income                                                   |               |             |                |                | **$856,499**    | ****            
|59,618 Shares of Common Stock purchased  for Recognition and Retention Plan  |               |             | ($894,866)     |                |                 |                 
|****Committed ESOP shares                                                    |               |             |                | $34,919        |                 | $89,460         
|33,386 Shares of Common Stock Awarded for  Recognition and Retention Plan    |               |             | $501,124       | ($52,082)      |                 |                 
|****19 Shares of Common Stock Purchased from
  Employee 401K Retirement Plan | ($269)        |             |                |                |                 | **($269)**      
|****Amortization of Restricted Stock                                         |               |             |                |                |                 |                 
|****Cash dividends ($0.05 per share)                                         |               |             |                |                | ($145,487)      |                 
|****Balance - End of Period                                                  | **3,041,750** | **$30,418** | **($394,011)** | **$9,012,533** | **$12,389,561** | **($1,043,280)**
|                                                                            
|                                                                             |               |             |                |                |                 | Unearned        
|                                                                             |               | Common      | Treasury       | Capital        | Retained        | ESOP            
|Nine Months Ended June 30, 2004                                              | Shares        | Stock       | Stock          | Surplus        | Earnings        | Shares          
|Balance - Beginning of period                                                | 0             | $0          | $0             | $0             | $10,990,936     | $0              
|Comprehensive Income:                                                       
|Net Income                                                                   |               |             |                |                | $608,571        |                 
|Other Comprehensive Income                                                   |               |             |                |                | $0              |                 
|Total Comprehensive Income                                                   |               |             |                |                | $608,571        |                 
|Sale of Common Stock                                                         | 978,650       | $9,787      |                | $9,038,403     |                 |                 
|119,236 shares of common stock acquired by ESOP                              |               |             |                |                |                 | ($1,192,360)    
|Committed ESOP shares                                                        |               |             |                |                |                 | $21,105         
|Capitalization of CCMHC                                                      | 2,063,100     | $20,631     |                | ($20,631)      | ($100,000)      |                 
|Cash dividends ($0.05 per share)                                             |               |             |                |                |                 |                 
|Balance - End of Period                                                      | **3,041,750** | **$30,418** | **$0**         | **$9,017,772** | **$11,499,507** | **($1,171,255)**

**CITIZENS COMMUNITY BANCORP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)**

******NOTE 1 -Organization**

The financial statements of Citizens Community Federal included herein have been included by
Citizens Community Bancorp (the "Company") pursuant to the rules and regulations of the
Securities and Exchange Commission.  The Company is a successor to Citizens Community
Federal as a result of a regulatory restructuring into a mutual holding company form, which was
effective on March 29, 2004.  The restructuring included the capitalization of the Company, the
sale of 978,650 shares of its common stock, including 119,236 shares to the Company's
employee stock ownership plan (ESOP), the issuance of 2,063,100 shares to the Citizens
Community Mutual Holding Company and the acquisition by the Company of all of the shares of
Citizens Community Federal.  The ESOP borrowed $1,192,360 from the Company to purchase
119,236 shares of the Company's stock.

Proceeds from the stock offering, net of the ESOP loan of $1,192,360, totaled $7,974,296.
$4,533,328 was used to purchase 100% (3,041,750 shares) of Citizens Community Federal stock
and $3,340,968 was retained by the Company for short-term investments and general corporate
purposes.  The restructuring included a series of transactions by which the corporate structure of
Citizens Community Federal was converted from a mutual savings bank to the mutual holding
company form of ownership.  Upon completion, Citizens Community Federal became a federal
stock savings bank subsidiary of Citizens Community Bancorp.  Citizens Community Bancorp is
a majority-owned subsidiary of Citizens Community MHC.  Members of Citizens Community
Federal became members of Citizens Community MHC and continue to have the same voting
rights in Citizens Community MHC as they had in Citizens Community Federal.  Citizens
Community MHC owns 67.83% or 2,063,100 shares of the common stock of Citizens
Community Bancorp and the remaining 32.17% of the stock was sold to the public.

The consolidated income of the Company is principally from the income of the Bank.  The Bank
originates residential and consumer loans and accepts deposits from customers primarily in
Wisconsin and Minnesota.  The Bank acquired a branch in Mankato, Minnesota in November of
2003 and opened a new branch office in Oakdale, Minnesota on October 1, 2004.  The Bank is
subject to competition from other financial institutions and non-financial institutions providing
financial products.  Additionally, the Bank is subject to the regulations of certain regulatory
agencies and undergoes periodic examination by those regulatory agencies.

**NOTE 2 - PRINCIPLES OF CONSOLIDATION**

****The accompanying consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiary, Citizens Community Federal.  All significant inter-company
accounts and transactions have been eliminated.

The accompanying unaudited consolidated financial statements of Citizens Community Bancorp
have been prepared in accordance with accounting principles generally accepted in the United
States for interim financial information and with the instructions to Form 10-QSB.  Accordingly,
they do not include all of the information and footnotes required by accounting principles
generally accepted in the United States for complete financial statements.  In the opinion of
Management, all adjustments (consisting of normal recurring adjustments) considered necessary
for the fair presentation have been included.  Operating results for the three and nine months
ended June 30, 2005 are not necessarily indicative of the results that may be expected for the
year ending September 30, 2005.  Certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting principles generally
accepted in the United States have been condensed or omitted.

**NOTE  3 - STOCK AWARD PLANS**

In February 2005, the Recognition and Retention Plan was approved by the Company's
shareholders.  The plan provides for the grant of  up to 59,618 shares.  At June 30, 2005, 33,386
restricted shares had been granted under this plan.  Restricted shares are issued at no cost to the
employee and have a five-year vesting period.  The fair value of the restricted shares on the date
of issue was $13.45 per share.  Compensation expenses related to these awards were $22,452 for
the three months and $37,420 for the nine months ended June 30, 2005.

In February 2005, the 2004 Stock Option and Incentive Plan was approved by the Company's
shareholders.  The plan provides for the grant of nonqualified, incentive stock options, and stock
appreciation rights.  The total number of shares available for future grants at June 30, 2005 under
the plan was 149,046.  At June 30, 2005, 105,827 options had been granted under this plan at a
weighted average exercise price of $13.45 per share.  Options vest over a five-year period.
Unexercised nonqualified stock options expire in 15 years and unexercised incentive stock
options expire in 10 years.  None of the options granted were vested, exercised, or forfeited
during the period and all options granted remain outstanding at June 30, 2005.

**NOTE 4 -  STOCK-BASED COMPENSATION**

The Company accounts for stock-based employee compensation using the intrinsic value method
prescribed under Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees" and related Interpretations.  Accordingly, the Company would record compensation
expense if the quoted market price on the date of grant exceeds the exercise price.  Compensation
expense for stock options is calculated as the number of options granted multiplied by the
amount the market price exceeds the exercise price.  For options with a vesting period, the
expense, if applicable, is recognized over the vesting period.  Compensation expense is
recognized immediately for options that are fully vested on the date of grant.  The Company has
not recognized any stock option related employee compensation expense during the three and
nine months ended June 30, 2005 and 2004.

If the company had elected to recognize compensation expense for its employee stock-based
compensation plans based on the fair values at the grant dates, consistent with the methodology
prescribed by SFAS No. 123, "Accounting for Stock-Based Compensation", net earnings and
earnings per share would have been reported as follows:

|                                                  | **Three months endedJune 30,** | **Nine months endedJune 30,**
|------------------------------------------------- | ------------------------------ | -----------------------------
|                                                  | **2005**                       | **2004**                     
|**Net Earnings:**                                
|As Reported                                       | $272,509                       | $240,649                     
|Additional compensation cost under the fair value
|method, net of related tax effects                | 16,716                         | 0                            
|Pro forma                                         | $255,793                       | $240,649                     
|**Basic Earnings Per Share:**                    
|As Reported                                       | $      0.09                    | N.A.                         
|Pro forma                                         | 0.09                           | N.A.                         
|**Diluted Earnings Per Share:**                  
|As reported                                       | $       0.09                   | N.A.                         
|Pro forma                                         | 0.09                           | N.A.                         

For purposes of the pro forma disclosures above, the weighted average fair value per stock option
granted was $3.66.  The fair value was estimated using the Black-Scholes option-pricing model
with the following weighted average assumptions: (1) annual volatility factor of 16%, (2) risk-free interest rate of 4.16%, (3) expected dividend yield of 1.5% and (4) expected option term of
ten years.

**NOTE 5 - EARNINGS PER SHARE**

****Basic and diluted earnings per share represent income available to common shareholders divided
by the weighted-average number of common shares outstanding during the period, excluding
unallocated shares of the Employee Stock Ownership Plan (ESOP).  The weighted average
number of shares outstanding was 2,922,806 for the three months ended June 30, 2005, and
2,919,824 for the nine months ended June 30, 2005.  Earnings per share of $0.09 were reported
for the three months ended June 30, 2005, compared to $0.08 per share for the prior year quarter.
Basic earnings per share of $0.29 were reported for the nine months ending June 30, 2005.
Earnings per share data for the prior nine-month period is not meaningful, as Citizens
Community Federal was a mutual savings bank with no stock outstanding prior to March 29,
2004.

**NOTE 6 - NEW ACCOUNTING PRONOUNCEMENTS**

In December 2004, the Financial Accounting Standards Board (FASB) issued SFAS 123(R),
"Share-Based Payments."  This Statement is a revision to SFAS 123, "Accounting for Stock-Based Compensation," and supersedes APB Opinion No. 25, "Accounting for Stock Issued to
Employees."  SFAS 123(R) requires the recognition of the cost of employee services received in
exchange for an award of equity instruments based on the grant-date fair value of the award.  The
cost will be recognized over the period during which an employee is required to provide service
in exchange for the award.  No compensation cost is recognized for equity instruments for which
employees do not render the required service period.  The Statement is effective for the Company
beginning October 1, 2007.  While the Company is still in the process of evaluating the effect of
SFAS No. 123(R) on the financial statements, Note 4 does disclose the effect on earnings had
SFAS No. 123(R) been adopted in prior periods.  Since the statements will be adopted using the
modified-prospective method, the effect the adoption will have on the financial statements can be
materially impacted by the number of options granted in future periods.

**NOTE 7 - SUBSEQUENT EVENT**

On July 1, 2005, the acquisition of Community Plus Savings Bank ("CPSB") by Citizens
Community Bancorp ("CCB") in a merger of CPSB with and into Citizens Community Federal
("CCF") was completed.  In accordance with the Agreement, CCB issued 705,569 additional
shares to Citizens Community MHC, as determined under the Agreement by dividing $9.25
million (the independently appraised value of CPSB) by $13.11, which was the average closing
bid price of CCB's common stock for the 20th through the 5th trading days prior to the July 1, 2005 closing date.

At June 30, 2005 CPSB had total assets of $46.0 million and deposits and other liabilities of
$41.8 million.

**ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL**

**CONDITION AND RESULTS OF OPERATIONS**

**GENERAL**

Citizens Community Bancorp (the "Company") was capitalized as a result of an  initial public offering related to the mutual holding company reorganization as explained in Note 1 to the unaudited consolidated financial statements, effective March 29, 2004.	The Company is the mid-tier holding company for Citizens Community Federal. The Company is chartered under federal law and owns 100% of the stock of Citizens
Community Federal (the "Bank.")  The Company directs Citizens Community Federal's
business activities.

The following discussion focuses on the consolidated financial condition of the Company
and subsidiary as of June 30, 2005 and the consolidated results of operations for the three
and nine months ended June 30, 2005, compared to the same periods in 2004.  This
discussion should be read in conjunction with the interim condensed consolidated financial
statements and notes thereto included with this report.

Historically, we were a federal credit union.  We accepted deposits and made loans to
members, who were the people who lived, worked or worshiped in the Wisconsin counties
of Chippewa and Eau Claire, and parts of Pepin, Buffalo and Trempealeau.  In addition, this
included businesses and other entities located in these counties, and members and
employees of the Hocak Nation.  In December 2001, we converted to a federal mutual
savings bank in order to better serve our customers and the local community through the
broader lending ability of a federal savings bank, and to expand our customer base beyond
the limited field of membership permitted to credit unions.  As a federal savings bank, we
have expanded authority in structuring residential mortgage and consumer loans, and the
ability to make commercial loans, although the Bank does not have any immediate plans to
increase commercial lending.

We have utilized this expanded lending authority to significantly increase our ability to
market one-to four-family residential lending.  Most of these loans are originated through
our internal marketing efforts and our existing and walk-in customers.  We typically do not
rely on real estate brokers and builders to help us generate loan originations.

In order to differentiate ourselves from our competitors, we have stressed the use of
personalized branch-oriented customer service.  Rather than building additional electronic
means for our customers to conduct banking, we have structured operations around a
branch system that is staffed with knowledgeable and well-equipped employees.  A key to
ensuring a high level of quality customer service is our ongoing commitment to training all
levels of our staff.

Subsequent to the end of the most recently completed reporting period, Citizens
Community Federal successfully completed a merger with Michigan-based, Community
Plus - a federally chartered mutual savings bank headquartered in Rochester Hills with an
additional branch location in Lake Orion, Michigan.  As a result of the merger, which
became effective July 1, 2005, 705,569 additional shares of common stock of Citizens
Community Bancorp were issued to Citizens Community MHC.

**CRITICAL ACCOUNTING POLICIES**

**Allowance for Loan Losses**.  The allowance for loan losses is established through a provision
for loan losses charged to expense.  Loans are charged against the allowance for loan losses
when management believes the collectibility of the principal is unlikely.

The Bank considers loans secured by real estate and all consumer loans to be large groups of
smaller-balance homogeneous loans that are collectively evaluated for impairment.  The
allowance for credit losses attributed to these loans is established via a process that estimates the
probable losses inherent in the portfolio, based upon various analyses.  These include historical
delinquency and credit loss experience and the current aging of the portfolio, together with
analyses that reflect current trends and conditions.  Management also considers overall portfolio
indicators including historical credit losses, delinquent, non-performing and classified loans, and
trends in volumes and term of loans; an evaluation of overall credit quality and the credit
process, including lending policies and procedures, and economic, geographical, and other
environmental factors.  In management's judgment, the allowance for loan losses is maintained at
a level that represents its best estimate of probable losses relating to specifically identified loans,
as well as probable losses inherent in the balance of the loan portfolio.

**Financial Condition**

***Total Assets*.**Total assets of the Company as of June 30, 2005 were $191.9 million, compared to
$162.0 million as of September 30, 2004, an increase of  $29.9 million, or 18.5%.  Assets
increased primarily as a result of an increase in loans receivable. Contributing to the increase was
the continued growth of the Mankato, Minnesota branch and the opening of the Oakdale,
Minnesota branch.

***Cash and Cash Equivalents.*****Cash and cash equivalents decreased from $4.8 million on
September 30, 2004 to $4.2 million on June 30, 2005, as cash was used along with increased
deposits and borrowings to help fund new loan originations.  The detail of the change in cash and
cash equivalents can be seen on the Consolidated Statements of Cash Flows.

***Loans Receivable.*****Loans increased by $29.4 million, or 19.2%, from $152.9 million as of
September 30, 2004 to $182.3 million as of June 30, 2005.  At June 30, 2005, the loan portfolio
included real estate loans of  $114.4 million or 62.8% of total loans, consumer loans of $67.8
million or 37.2% of total loans and commercial loans of $102,000, less than 1% of total loans.

At September 30, 2004, the loan portfolio included real estate loans of $95.4 million or 62.4% of
total loans, consumer loans of $57.4 million or 37.5% of total loans and commercial loans of
$115,000, less than 1% of total loans.

Although our consumer loan portfolio continues to grow, our real estate loan portfolio is growing
at a slightly faster pace.  As noted, a contributing factor to the loans receivable increase was the
loan production at the Mankato and Oakdale, Minnesota branches.  At June 30, 2005 loans
receivable were $9.9 million at Mankato and $9.1 million at Oakdale, compared to $4.6 million
at Mankato and $1.8 million at Oakdale at September 30, 2004.

***Allowance for Loan Losses.***  The following table is an analysis of the activity in the allowance for loan losses for the three and nine-month periods ended June 30, 2004 and June 30, 2005.

|                         | **Three months ended** | **Nine months ended**
|------------------------ | ---------------------- | ---------------------
|                         | **June 30, 2005**      | **June 30, 2004**    
|**Balance at Beginning** | $641,343               | $506,837             
|**Provisions Charged**  
|**to Operating Expense** | 103,200                | 99,999               
|**Loans Charged Off**    | (41,850)               | ( 86,694)            
|**Recoveries on Loans**  | 10,945                 | 5,068                
|**Balance at End**       | $713,638               | $525,210             

***Office Properties and Equipment.***  Total investment in office properties and equipment was $2.2
million on September 30, 2004 and remained $2.2 million on June 30, 2005.

***Deposits.*****Deposits as of June 30, 2005 were $137.5 million, compared to $128.0 million as of
September 30, 2004, an increase of $9.5 million, or 7.4 %.  The majority of the deposit growth
came from the two Minnesota branch offices, as our marketing efforts have been concentrated
there.

***Borrowed Funds.*****Federal Home Loan Bank advances increased from $13.5 million at
September 30, 2004 to $33.5 million on June 30, 2005, as the need to fund strong loan demand
increased.

***Liquidity and Asset Liability Management.*****The Company must maintain an adequate liquidity
position in order to respond to the short-term demand for funds caused by extensions of credit,
withdrawals from deposit accounts and for payments of operating expenses.  Maintaining this
position of adequate liquidity is accomplished through the management of a combination of
liquid assets;  those which can be converted into cash and access to additional sources of funds.
Primarily, liquid assets of the Company are cash and interest bearing deposits and maturing
loans.  Loans from the Federal Home Loan Bank system represent the Company's primary source
of immediate additional liquidity, and were maintained at a level needed to meet needs.  Assets
and liabilities are maintained to provide the proper balance between liquidity, safety and
profitability.  This monitoring process is done on a continuous basis.  The Company manages its
interest rate sensitive assets and liabilities on a daily basis to lessen the impact of interest rate
change. As part of managing liquidity, the Company monitors its maturing deposits and maturing
loans, loan to deposit ratio, competitors' rates and the cost to borrow funds versus attract
deposits.  The Company manages its rate sensitivity position to avoid wide swings in margins
and to minimize risk.  The Company's management believes its liquidity sources are adequate to
meet its operating needs.

***Off-Balance Sheet Liabilities*****.  The Company has financial instruments with off-balance sheet
risk.  These instruments include unused commitments for credit cards, lines of credit, overdraft
protection and home equity lines of credit, as well as commitments to extend credit.  As of June
30, 2005, the Company had $5.4 million in unused commitments compared to $5.5 million in
unused commitments as of September 30, 2004.

***Capital Resources.*****Capital ratios applicable to the Bank as of June 30, 2005 and September 30,
2004 were as follows:

|**Capital Ratios**                       
|-----------------------------------------
|                                         
|                                         
|*As of June 30, 2005  (Unaudited)*       
|Total capital (to risk weighted assets)  
|Tier 1 capital (to risk weighted assets) 
|Tier 1 capital (to adjusted total assets)
|Tangible capital (to tangible assets)    
|*As of September 30, 2004*               
|Total capital (to risk weighted assets)  
|Tier 1 capital (to risk weighted assets) 
|Tier 1 capital (to adjusted total assets)
|Tangible capital (to tangible assets)    

Management intends to maintain capital levels in the well-capitalized category established by
regulatory authorities.  The Bank was categorized as "well-capitalized" under the regulatory
framework for capital adequacy as of June 30, 2005 and September 30, 2004.

**Results of Operation**

***Overview.*****For the quarter ended June 30, 2005, the Company continued to see strong loan
demand and continued growth trends.  The two Minnesota branch offices showed continued
strong growth.  Loan quality remained strong with a decline in loan delinquency and loans
charged off.  Interest rates on deposits increased at a faster pace than the rates on loans.  In fact,
rates on real estate loans actually declined for several weeks during the quarter as deposit rates
increased.  Increased loan growth and fee income helped to offset the decline in interest rate
spread.

***Net Income.*****For the three months ended June 30, 2005, the Company reported net income of
$272,509, an increase of 13.2%, compared to net income of $240,649 for the three months ended
June 30, 2004.  Net income was $856,499 for the nine months ended June 30, 2005, as compared
to net income of $608,571 for the same period in 2004, an increase of 40.7%. The increase for
both periods came primarily as a result of income generated from the January 12, 2005 merger of
PULSE-EFT and Discover Financial Services.  Since the Company was a stockholder and
member of PULSE-EFT, it received $384,467 in pre-tax income in the second quarter of fiscal
2005 and  a final payment of $63,562 in the third quarter.

***Total Interest Income.*****Total interest and dividend income increased by $505,420 for the three-month period ended June 30, 2005, to $2.9 million from $2.4 million for the same period in
2004.  Total interest income increased by $1.3 million for the nine-month period ended June 30,
2005 to $8.3 million from $7.0 million for the same period ended June 30, 2004.  The increase
was a result of an increase in the average balance of loans receivable.

The yield on loans receivable in both periods decreased from 6.91% for the three-month period
ended June 30,2004 to 6.62% for the three-month period ended June 30, 2005, and decreased
from 7.0% for the nine-month period ended June 30, 2004 to 6.59% for the nine-month period
ended June 30, 2005, reflecting the decrease in market rates of interest.

***Net Interest Income.*****Net interest income before provision for loan losses increased by $153,973
for the three-month period ended June 30, 2005, to $1.9 million compared to $1.7 million for the
same period in 2004.  Total net interest income increased by $742,605 for the nine-month period
ended June 30, 2005, to $5.6 million from $4.9 million for the same period ended June 30, 2004.
The increase in net interest income was due to increased loan volume and an increase in the
balance of loans receivable offsetting the increase in interest expense and the decrease in average
loan yield.

***Interest Expense*****.  Interest expense increased by $351,477 in the three-month period ended June
30, 2005, from $669,540 for the same period in 2004.  Interest expense increased by $528,270
for the nine-month period ended June 30, 2005, from $2.1 million for the same period ended June
30, 2004.

The increase for both periods was a result of deposit growth and an increase in the cost of
interest-bearing liabilities.  The cost of borrowed funds increased from $15,417 for the three-month period ended June 30, 2004 to $210,756 for the same period in 2005. The cost of
borrowed funds increased $358,961 for the nine-month period ended June 30, 2005 to $403,627,
compared to $44,666 for the same period ended June 30, 2004.  The increase was primarily a
result of utilization of advances from the Federal Home Loan Bank of Chicago to fund increased
loan demand as management sought the most cost-effective source of funds. The use of borrowed
funds was more cost effective than obtaining additional deposits at a higher cost.

***Provision for Loan Losses.*****We establish the provision for loan losses, which is charged to
operations, at a level management believes will reflect probable incurred credit losses in the loan
portfolio.  In evaluating the level of the allowance for loan losses, management considers the
types of loans and the amount of loans in the loan portfolio, historical loss experience, adverse
situations that may affect the borrower's ability to repay, estimated value of any underlying
collateral, and prevailing economic conditions.  Based on our evaluation of these factors, we
made provisions of $103,200 and $99,999 for the three months ended June 30, 2005 and June 30,
2004, respectively.  For the nine-month period ended June 30, 2005, we made provisions of
$305,336 compared to provisions of $295,998 for the same period a year ago. The provisions for
fiscal 2005 are primarily a result of the loan growth for the three and nine month periods.  This
evaluation is inherently subjective, as it requires estimates that are susceptible to significant
revision as more information becomes available, or as future events change*.*  We used the same
methodology and generally similar assumptions in assessing the loan allowance for both periods.

The level of the allowance is based on estimates and the ultimate losses may vary from the
estimates.  Management assesses the allowance for loan losses on a monthly basis and makes
provisions for loan losses as necessary in order to maintain the allowance.  While management
uses available information to recognize losses on loans, future loan loss provisions may be
necessary based on changes in economic conditions or changes in individual account conditions.
In addition, various regulatory agencies, as an integral part in their examination process,
periodically review the allowance for loan losses and may require us to recognize additional
provisions based on their judgment of information available to them at the time of their
examination.  The allowance for loan losses as of June 30, 2005 is maintained at a level that
represents management's best estimate of probable losses inherent in the loan portfolio.  Non-performing assets were approximately $696,000 at June 30, 2005, or $0.36% to total assets,
compared to $697,000, or 0.43% to total assets at September 30, 2004.

*********Non-Interest Income.*****Total non-interest income was $422,933 for the three months ended June
30, 2005, compared to $358,855 for the same period in 2004.  Total non-interest income for the
nine-month period ended June 30, 2005 was $1,531,433, compared to $1,036,474 for the nine-
month period ended June 30, 2004.  The increase came primarily from the merger of PULSE
-EFT with Discover, and the subsequent income it generated for the Company, as a stockholder
of PULSE-EFT, in the second and third quarters of fiscal 2005.

***Non-Interest Expense.*****Non-interest expense increased from $1.6 million to $1.8 million for the
three months ended June 30, 2005.  Non-interest expense increased from $4.6 million for the
nine-month period ended June 30, 2004 to $5.5 million for the same period in 2005.  The
increase was due to the additional operating costs associated with the Oakdale branch office, the
costs associated with the growth of the Mankato office, normal salary increases and the cost
associated with being a public company.

***Forward-Looking Statements.*****This report contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended.  We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements contained in the Private
Securities Reform Act of 1995, and are including this statement for purposes of these safe harbor
provisions.  "Forward-looking statements", which are based on certain assumptions and describe
future plans, strategies and expectations of Citizens Community Bancorp may be identified by
the use of words such as "believe," "expect," "anticipate," "should," "planned," "estimated," and
"potential".  Examples of forward-looking statements include, but are not limited to, estimates
with respect to our financial condition, results of operation and business that are subject to
various factors which could cause actual results to differ materially from these estimates and
most other statements that are not historical in nature.  These factors include, but are not limited
to, general and local economic conditions, changes in interest rates, deposit flows, demand for
mortgage, consumer and other loans, real estate values, competition, changes in accounting
principles, policies, or guidelines, changes in legislation or regulation, and other economic,
competitive, governmental, regulatory and technological factors affecting our operations, pricing,
products and services. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  Further
information concerning Citizens Community Bancorp and its business, including additional
factors that could materially affect our financial results, is included in our filings with the
Securities and Exchange Commission.

**ITEM 3.  CONTROLS AND PROCEDURES**

An evaluation of the Company's disclosure controls and procedures (as defined in Section 13(a)-15(e) under the Securities Exchange Act of 1934 (the "Act") as of December 31, 2004 was carried
out under the supervision and with the participation of the Chief Executive Officer and Chief
Financial Officer and several other members of our senior management.  The Chief Executive
Officer and Chief Financial Officer concluded that as of June 30, 2005, the Company's disclosure
controls and procedures were effective in ensuring that the information required to be disclosed by
the Company in the reports the Company files or submits under the Act is (i) accumulated and
communicated to management (including the Chief Executive Officer and Chief Financial Officer)
in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms.  There have been no changes in our internal controls over
financial reporting (as defined in Rule 13a-15(f) under the Act) that occurred during the quarter
ended June 30, 2005 that have materially affected, or are reasonably likely to materially effect, our
internal controls over financial reporting.

The Company does not expect that its disclosure controls and procedures will prevent all error and
all fraud.  A control procedure, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the control procedure are met.  Because
of the inherent limitations in all control procedures, no evaluation of controls can provide absolute
assurance that all control issues and instances of fraud, if any, within the Company have been
detected.  These inherent limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake.  Additionally, controls
can be circumvented by the individual acts of some persons, by collusion of two or more people,
or by management override of the control.  The design of any control procedure is also based in
part upon certain assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential future conditions; over
time, controls may become inadequate because of changes in conditions, or the degree of
compliance with the policies and procedures may deteriorate.  Because of the inherent limitations
in a cost-effective control procedure, misstatements due to error or fraud may occur and not be
detected.

Section 404 of the Sarbanes-Oxley Act of 2002 requires that companies evaluate and annually
report on their systems of internal control over financial reporting.  In addition, our independent
accountants must report on management's evaluation.  We are in the process of evaluating,
documenting and testing our system of internal control over financial reporting to provide the
basis for our report that is anticipated to be a required part of our annual report on Form 10-KSB
for the fiscal year ending September 30, 2006.  Due to the ongoing evaluation and testing of our
internal controls, there can be no assurance that if any control deficiencies are identified they will
be remediated before the end of the 2006 fiscal year, or that there may not be significant
deficiencies or material weaknesses that would be required to be reported.  In addition, we expect
the evaluation process and any required remediation, if applicable, to increase our accounting,
legal and other costs and divert management resources from core business operations.

**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.*   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**

The following table summarizes our share repurchase activity during the three months ended June 30, 2005.

|Period                                   | TotalNumber ofSharesPurchased | AveragePrice Paidper Share | Total Number ofSharesPurchased asPart of Publicly
Announced Plans | Maximum Numberof Shares That MayYet be Purchased
Under the Plan
|---------------------------------------- | ----------------------------- | -------------------------- | ----------------------------------------------------------------- | ---------------------------------------------------------------
|April 1, 2005 through
    April 30, 2005 | NA                            | NA                         | NA                                                                | NA                                                             
|May 1, 2005 through
    May 31, 2005     | NA                            | NA                         | NA                                                                | NA                                                             
|June 1, 2005 through
    June 30, 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**

At a Special Meeting of Shareholders, dated June 16, 2005, one item of business was voted upon:  The issuance on
July 1, 2005 of 705,569 shares of common stock, $0.01 par value, of Citizens Community Bancorp to Citizens
Community MHC pursuant to the Agreement and Plan of Merger, dated as of January 6, 2005, by and among Citizens
Community MHC, Citizens Community Bancorp, Citizens Community Federal and Community Plus Savings Bank,
pursuant to which Community Plus Savings Bank will merge with and into Citizens Community Federal.  Results of
the voting were as follows:

**Issuance of Additional Shares Pursuant to Merger (Without MHC Vote)**

|*FOR* | *AGAINST* | *ABSTAIN* | *NON-VOTE*
|----- | --------- | --------- | ----------
|70.3% | 3.3%      | 0.4%      | 0.00%     

**Issuance of Additional Shares Pursuant to Merger (Including MHC Vote)**

|*FOR* | *AGAINST* | *ABSTAIN* | *NON-VOTE*
|----- | --------- | --------- | ----------
|90.6% | 1.1%      | 0.1%      | 0.00%     

***Item 5.*    OTHER INFORMATION**

***Item 6.*    EXHIBITS**

See Exhibit Index.

**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: | August 11, 2005 |                               
|Date: | August 11, 2005 |                               

EXHIBIT INDEX

|Regulation S–B
Exhibit Number | **Document**                                          | **Reference toPrior Filingor Exhibit Number
Attached Hereto**
|----------------------------- | ----------------------------------------------------- | -------------------------------------------------------------
|3(i)                          | Certificate of Incorporation of the Registrant        | *                                                            
|3(ii)                         | Amended Bylaws of the Registrant                      | **                                                           
|10                            | Material contracts:                                   |                                                              
|                              |                                                       | (a)                                                          
|                              |                                                       | (b)                                                          
|                              |                                                       | (c)                                                          
|                              |                                                       |                                                              
|                              |                                                       |                                                              
|                              |                                                       |                                                              
|                              |                                                       |                                                              
|                              |                                                       |                                                              
|                              |                                                       | (e)                                                          
|11                            | Statement Regarding Computation of Per Share Earnings | 11                                                           
|13                            | 2004 Annual Report to Stockholders                    | Not Required                                                 
|14                            | Code of Conduct and Ethics                            | **                                                           
|21                            | Subsidiaries of the Registrant                        | **                                                           
|23                            | Consent of Auditors                                   | Not Required                                                 
|31                            | Rule 13a–14(a)/15d–14(a) Certifications               | 31                                                           
|32                            | Section 1350 Certifications                           | 32                                                           

|*   | Filed as exhibit to the Company's Form SB–2 registration statement filed on December 29, 2003 (File No.333–111588)   pursuant
to Section 5 of the Securities Act of 1933.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|**  | Filed as exhibit to the Company's Form 10-KSB filed with the SEC on December 29, 2004.                                                                                   
|*** | Filed as exhibit to the Company's Definitive Proxy Materials filed with the SEC on December 23, 2004.