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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 **March 31, 2006**

/  /  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    /   /

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    /   /       No    /X/

**APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCYPROCEEDINGS DURING THE PRECEDING FIVE YEARS**

Check whether the registrant filed all documents and reports required to be filed by Section 12,  13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.     Yes    /   /       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 April 30, 2006,  there were 3,724,628  shares of the issuers' common stock outstanding**

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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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|Part I -- FINANCIAL INFORMATION | PageNumber
|------------------------------- | ----------
|                                | Item 1.   
|                                |           
|                                |           
|                                |           
|                                |           
|                                |           
|                                | Item2.    
|                                | Item 3.   
|Part II -- OTHER INFORMATION    | 17        
|SIGNATURES                      | 18        
|EXHIBITS                        | 19        

2

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|Assets                                                           | March 31, 2006 | September 30, 2005
|---------------------------------------------------------------- | -------------- | ------------------
|                                                                
|Cash and cash equivalents                                        | $4,296,325     | $9,265,477        
|Other interest-bearing deposits                                  | $1,152,900     | $1,444,233        
|Securities available-for-sale (at fair value)                    | $1,839,081     | $2,088,349        
|Federal Home Loan Bank stock                                     | $1,826,480     | $2,094,900        
|Loans Receivable                                                 | $235,131,410   | $218,733,884      
|Allowance for Loan Losses                                        | ($807,766)     | ($803,218)        
|Loans receivable - Net                                           | $234,323,644   | $217,930,666      
|Office properties and equipment - Net                            | $3,611,821     | $2,922,884        
|Accrued interest receivable - Loans                              | $749,953       | $612,644          
|Intangible assets                                                | $1,980,170     | $2,130,949        
|Goodwill                                                         | $5,465,619     | $5,465,619        
|Other assets                                                     | $1,379,029     | $1,751,770        
|TOTAL ASSETS                                                     | $256,625,022   | $245,707,491      
|                                                                
|Liabilities and Equity                                           | March 31, 2006 | September 30, 2005
|Liabilities:                                                     |                |                   
|Deposits                                                         | $188,298,100   | $177,469,100      
|Federal Home Loan Bank Advances                                  | $36,200,000    | $36,200,000       
|Other Liabilities                                                | $2,312,833     | $2,484,991        
|Total Liabilites                                                 | $226,810,933   | $216,154,091      
|Stockholders' Equity:                                            |                |                   
|Common Stock - 3,747,319 Shares issued                           | $37,473        | $37,473           
|Additional Paid-in Capital                                       | $18,796,945    | $18,779,709       
|Retained Earnings                                                | $12,690,688    | $12,536,512       
|Unearned ESOP Shares                                             | ($953,820)     | ($1,013,460)      
|Unearned Compensation                                            | ($340,749)     | ($389,169)        
|Accumulated other comprehensive loss                             | ($22,226)      | ($3,654)          
|Treasury Stock at cost, - 26,267 and 26,251 shares, respectively | ($394,222)     | ($394,011)        
|Total Stockholders' Equity                                       | $29,814,089    | $29,553,400       
|TOTAL LIABILITIES AND EQUITY                                     | $256,625,022   | $245,707,491      

3

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|                                                    | Three Months Ended | Six Months Ended
|--------------------------------------------------- | ------------------ | ----------------
|                                                    | March 31, 2006     | March 31, 2005  
|Interest and Dividend Income:                       |                   
|Interest and fees on loans                          | $3,697,102         | $2,718,624      
|Other interest and dividend income                  | $84,966            | $21,090         
|Total interest and dividend income                  | $3,782,068         | $2,739,714      
|Interest expense:                                   |                   
|Interest on deposits                                | $1,240,964         | $797,412        
|Notes Payable Interest                              | $393,620           | $64,752         
|Total interest expense                              | $1,634,584         | $862,164        
|Net Interest Income                                 | $2,147,484         | $1,877,550      
|Provision for loan losses                           | $38,400            | $102,133        
|Net interest income after provision for loan losses | $2,109,084         | $1,775,417      
|Noninterest Income:                                 |                   
|Service charges on deposit accounts                 | $230,083           | $176,370        
|Insurance commissions                               | $88,087            | $97,905         
|Loan fees and service charges                       | $95,246            | $80,715         
|Securities Gains                                    | $0                 | $0              
|Other                                               | $3,696             | $388,572        
|Total Noninterest Income                            | $417,112           | $743,562        
|Noninterest expense:                                |                   
|Salaries and related benefits                       | $1,405,767         | $1,121,223      
|Occupancy - Net                                     | $250,996           | $188,925        
|Office                                              | $215,633           | $147,289        
|Data processing                                     | $106,147           | $77,466         
|Other                                               | $408,458           | $341,465        
|Total noninterest expense                           | $2,387,001         | $1,876,368      
|Income before provision for income tax              | $139,195           | $642,611        
|Provision for income taxes                          | $56,744            | $258,705        
|Net income                                          | $82,451            | $383,906        
|Per Share Information:                              |                   
|Basic Earnings                                      | $0.02              | $0.13           
|Diluted Earnings                                    | $0.02              | $0.13           
|Dividends Paid                                      | $0.05              | $0.05           

4

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|                                                                              | Shares    | CommonStock | AdditionalPaid-InCapital | RetainedEarnings | UnearnedESOPShares | UnearnedCompensation | AccumulatedOtherComprehensiveLoss | TreasuryStock | Total      
|----------------------------------------------------------------------------- | --------- | ----------- | ------------------------ | ---------------- | ------------------ | -------------------- | --------------------------------- | ------------- | -----------
|Six Months Ended March 31, 2006                                               |          
|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                                                                    |           |             |                          | $249,594         |                    |                      |                                   |               | $249,594   
|Net Unrealized Loss on Available for Sale Securities                          |           |             |                          |                  |                    |                      | ($18,572)                         |               | ($18,572)  
|Total Comprehensive Income                                                    |           |             |                          |                  |                    |                      |                                   |               | $231,022   
|Committed ESOP Shares                                                         |           |             |                          |                  | $59,640            |                      |                                   |               | $59,640    
|Appreciation in fair value of ESOP shares charged to expense                  |           |             | $17,236                  |                  |                    |                      |                                   |               | $17,236    
|16 Shares of Common Stock Purchased from
   Employee 401K Retirement Plan     |           |             |                          |                  |                    |                      |                                   | ($211)        | ($211)     
|Amortization of Restricted Stock                                              |           |             |                          |                  |                    | $48,420              |                                   |               | $48,420    
|Cash Dividends ($0.10 per share)                                              |           |             |                          | ($95,418)        |                    |                      |                                   |               | ($95,418)  
|Balance - End of Period                                                       | 3,747,319 | $37,473     | $18,796,945              | $12,690,688      | ($953,820)         | ($340,749)           | ($22,226)                         | ($394,222)    | $29,814,089
|                                                                              |          
|                                                                              | Shares    | CommonStock | AdditionalPaid-InCapital | RetainedEarnings | UnearnedESOPShares | UnearnedCompensation | AccumulatedOtherComprehensiveLoss | TreasuryStock | Total      
|Six Months Ended March 31, 2005                                               |          
|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                                                                    |           |             |                          | $583,990         |                    |                      |                                   |               | $583,990   
|Other Comprehensive Income                                                    |           |             |                          | $0               |                    |                      |                                   |               | $0         
|Total Comprehensive Income                                                    |           |             |                          | $583,990         |                    |                      |                                   |               | $583,990   
|                                                                              |          
|59,618 Shares of Common Stock purchased for
   Recognition and Retention Plan |           |             |                          |                  |                    |                      |                                   | ($894,866)    | ($894,866) 
|Committed ESOP shares                                                         |           |             | $25,327                  |                  | $59,640            |                      |                                   |               | $84,967    
|33,386 Shares of Common Stock Awarded for
   Recognition and Retention Plan   |           |             | ($52,082)                |                  |                    | ($449,042)           |                                   | $501,124      | $0         
|Amortization of Restricted Stock                                              |           |             |                          |                  |                    | $14,968              |                                   |               | $14,968    
|Cash dividends ($0.10 per share)                                              |           |             |                          | ($97,866)        |                    |                      |                                   |               | ($97,866)  
|Balance - End of Period                                                       | 3,041,750 | $30,418     | $9,002,941               | $12,164,673      | ($1,073,100)       | ($434,074)           | $0                                | ($393,742)    | $19,297,116

5

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|                                                                                     | March 31, 2006 | March 31, 2005
|------------------------------------------------------------------------------------ | -------------- | --------------
|Increase (decrease) in cash and cash equivalents:                                    |               
|Cash flows from operating activities:                                                |               
|Net Income                                                                           | $249,594       | $583,990      
|Adjustments to reconcile net income to net cash provided
   by operating activities: |               
|Provision for depreciation                                                           | $181,276       | $123,051      
|Provision for loan losses                                                            | $108,451       | $202,136      
|Amortization of core deposit intangible                                              | $150,779       | $12,765       
|Amortization of Restricted Stock                                                     | $48,421        | $14,968       
|Federal Home Loan Bank stock dividends                                               | ($16,480)      | ($23,900)     
|ESOP contribution expense in excess of shares released                               | $17,236        | $25,327       
|Increase (decrease) in accrued interest receivable and other assets                  | $235,432       | ($299,979)    
|Increase (decrease) in other liabilities                                             | ($172,158)     | $291,105      
|Total adjustments                                                                    | $552,957       | $345,473      
|                                                                                     |               
|Net cash provided by operating activities                                            | $802,551       | $929,463      
|Cash flows from investing activities:                                                |               
|Proceeds from maturities of other interest bearing deposits                          | $291,333       | $0            
|Proceeds from sale of securities available-for-sale                                  | $230,696       | $0            
|Sale (Purchase) of Federal Home Loan Bank stock                                      | $284,900       | ($348,400)    
|Net increase in loans                                                                | ($16,501,429)  | ($17,533,499) 
|Capital expenditures                                                                 | ($870,213)     | ($142,474)    
|Net cash used in investing activities                                                | ($16,564,713)  | ($18,024,373) 
|                                                                                     |               
|Cash flows from financing activities:                                                |               
|Increase in Borrowings                                                               | $0             | $10,500,000   
|Increase in deposits                                                                 | $10,829,000    | $5,648,288    
|Purchase common stock                                                                | ($211)         | ($894,866)    
|Reduction in unallocated shares held by ESOP                                         | $59,640        | $59,640       
|Cash dividends paid                                                                  | ($95,418)      | ($97,866)     
|Net cash provided by financing activities                                            | $10,793,011    | $15,215,196   
|Net increase (decrease) in cash and cash equivalents                                 | ($4,969,151)   | ($1,879,714)  
|Cash and cash equivalents at beginning                                               | $9,265,477     | $4,768,007    
|Cash and cash equivalents at end                                                     | $4,296,326     | $2,888,293    

6

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7

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8

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|                                                                                                                                                           | Three months ended | Six months ended
|---------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------------
|                                                                                                                                                           | 03/31/06           | 03/31/05        
|Net  income - as reported                                                                                                                                  | $82,451            | $383,906        
|Deduct:  Total stock-based employee compensation   Expense determined under a fair value based method   For all awards granted, net of related tax effects | $16,716            | $0              
|Proforma net income                                                                                                                                        | $65,735            | $383,906        
|Basic earnings per share -  as reported                                                                                                                    | $   0.02           | $   0.13        
|Proforma  basic earnings per share                                                                                                                         | $   0.02           | $   0.13        
|Diluted Earnings Per Share - as reported                                                                                                                   | $   0.02           | $   0.13        
|Pro forma  diluted earnings per share                                                                                                                      | $   0.02           | $   0.13        

9

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

10

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11

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|                     | Three months ended | Six months ended
|-------------------- | ------------------ | ----------------
|                     | March 31, 2006     | March 31, 2005  
|Balance at Beginning | $828,770           | $596,473        

12

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|Capital Ratios                           
|-----------------------------------------
|                                         
|                                         
|As of March 31, 2006 (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, 2005                 
|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)    

13

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14

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15

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16

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|Period                                       | TotalNumber ofSharesPurchased | AveragePrice Paidper Share | Total Number of Shares Purchased as Part of PubliclyAnnounced Plans | Maximum Number of Shares That MayYet be PurchasedUnder the Plan
|-------------------------------------------- | ----------------------------- | -------------------------- | ------------------------------------------------------------------- | ---------------------------------------------------------------
|January 1, 2006 through    January 31, 2006  | NA                            | NA                         | NA                                                                  | NA                                                             
|February 1, 2006 through   February 28, 2006 | NA                            | NA                         | NA                                                                  | NA                                                             
|March 1, 2006 through   March 31, 2006       | 16                            | $13.20                     | NA                                                                  | NA                                                             
|Total                                        | 16                            | $13.20                     | NA                                                                  | NA                                                             

| |                    | Election of Directors    |         
| | ------------------ | ------------------------ | --------
| |                    | FOR                      | WITHHOLD
| | Brian R. Schilling | 99.8%                    | 0.2%    
| | David B. Westrate  | 99.8%                    | 0.2%    
| |                    | Ratification of Auditors
| |                    | FOR                      | AGAINST 
| |                    | 99.8%                    | 0.2%    

| | (a) | Exhibits 
31.1    Rule 13a-15(e) Certification of the Company's President and Chief Executive Officer.
31.2    Rule 13a-15(e) Certification of the Company's Chief Financial Officer
32.0    Certification
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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|      |              |  | CITIZENS COMMUNITY BANCORP
|----- | ------------ |  | --------------------------
|Date: | May 11, 2006 |  | By:                       
|Date: | May 11, 2006 |  | By:                       

18

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