8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



	          		   FORM 8-K

				CURRENT REPORT

         Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

				September 30, 2004

			Atlantic Liberty Financial Corp

Delaware			      000-49967		                 16-1615014
State of incorporation 	            SEC File Number			 IRS Employer I.D.



		        186 Montague Street, Brooklyn, New York

	                            718-855-3555






















CURRENT REPORT ON FORM 8-K


Item 1.	Changes in Control of Registrant
        Not Applicable

Item 2.	Acquisition or Disposition of Assets
        Not Applicable

Item 3.	Bankruptcy or Receivership

	Not Applicable

Item 4.	Changes in Registrants Certifying Accountant
        Not Applicable

Item 5.	Other Events
        Not Applicable

Item 6.	Resignations of Registrants Directors
        Not Applicable

Item 7.	Financial Statements and Exhibits

(a) No financial statements of businesses acquired are required.
(b) No pro forma financial information is required
(c) Attached as an exhibit is Atlantic Liberty Financial Corps
    (the Company) news release announcing its
    September 30, 2004 quarterly earnings.

Item 8.	Change in Fiscal Year

        Not Applicable

Item 9.	Regulation FD Disclosure- Information
        provided pursuant to Item 12

	The Company announced its September 30, 2004
        financial results by release. The press release
        in included as an exhibit.







SIGNATURE


Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this
Report to be signed on its behalf by the undersigned,
hereunto duly authorized.

					Atlantic Liberty Financial Corp.


Date:  October 21, 2004    	     By: /s/Barry M. Donohue
				     Barry M. Donohue
				     President and Chief Executive Officer

EX-99

FOR IMMEDIATE RELEASE

October 21,2004

Contact: William M. Gilfillan
Executive Vice President and Chief Financial Officer
Phone: (718) 855-3555


Atlantic Liberty Financial Corp. Reports Earnings for
Quarter and Six Months Ended September 30, 2004
and Declares Quarterly Dividend.

BROOKLYN, NY Atlantic Liberty Financial Corp., (Nasdaq: ALFC),
the holding company of Atlantic Liberty Savings, F.A.
announced earnings of $762,000 or $0.48 per share
(basic and fully diluted) for the quarter ended
September 30, 2004 as compared to $356,000 or $0.22
per share ( basic and fully diluted)  for the quarter
ended September 30, 2003, an increase of 114%.
Earnings for the six months ended September 30, 2004
increased 61% to $1,167,000 or $0.74 per share
(basic and fully diluted)  from $725,000 or $0.46
per share (basic and fully diluted) for the same period
in 2003.  Earnings for the quarter and six months ended
September 30, 2004 include non-recurring non-interest
income of $825,000 received in connection with the
settlement of litigation commenced in 1999.
After taxes and  legal fees the settlement resulted
in $395,000 or $0.25 per share in net income for the
three months ended September 30, 2004 and $340,000 or
$0.22 per share for the six months ended September 30, 2004.

At its October meeting, the Board of Directors declared a
quarterly cash dividend of $0.07 per share to be paid on
November 18, 2004 to shareholders of record
on November 4, 2004 .

The increase in earnings for the quarter ended
September 30, 2004 was primarily due to increases of
$227,000 in net interest income and $856,000 in non interest
income, partially offset by increases of $266,000 in
non-interest expense, $125,000 in the provision for loan
losses, and $286,000 in income tax expense. The increase
in net interest income for the quarter ended
September 30, 2004 compared to the prior period
was attributable to a $37.8 million increase in average
interest earning assets, partially offset by a 38
basis point decrease in our net interest spread to
3.68% from 4.06%.  Our net interest margin for the
quarter ended September 30, 2004 compared to the prior
period decreased 42 basis points to 3.94% from 4.36%.
Non interest income increased $856,000 due principally
to the $825,000 non recurring litigation settlement and
an increase of $32,000 in loan prepayment penalty and
other mortgage fees.

The increase in non interest expense for the quarter ended
September 30, 2004 of $266,000 included increases of $134,000
in salaries and employee benefits, $42,000 in directors
compensation, $8,000 in equipment expense, $93,000 in legal
fees, and $4,000 in net occupancy expense, partially offset
by a decrease of $16,000 in miscellaneous expense.
There was a provision for loan losses of $125,000 for
the quarter ended September 30, 2004.
There was no provision for loan losses for the
quarter ended September 30, 2003.  The allowance
for loan losses was $737,000 or 0.61% of loans
outstanding at September 30, 2004 as compared with
$582,000 or 0.54% of loans outstanding at
September 30, 2003.  The allowance for loan
losses as a percentage of non performing loans
was 134.5% at September 30, 2004 and 198.6% at
September 30, 2003.   Non performing loans represented
0.30% of total loans at September 30, 2004 and 0.18% of
total loans at September 30, 2003.

The increase in earnings for the six months ended
September 30, 2004 was primarily due to increases
of $435,000 in net interest income and $904,000 in
non-interest income, partially offset by increases
of $491,000 in non-interest expense,$125,000 in
the provision for loan losses and $281,000 in income
tax expense.  The increase in net interest income of
$435,000 for the six months ended September 30, 2004
as compared to the prior period resulted from an
increase of $38.5 million in average interest earning
assets, partially offset by a decrease in our net
interest spread of 46 basis points to 3.74% from 4.20%.
Our net interest margin for the six months ended
September 30, 2004 decreased 50 basis points to 3.99%
from 4.49% in the prior period. Non interest income
for the six months ended September 30, 2004 increased
$904,000 as compared to the six months ended
September 30, 2003, primarily due to the
non-recurring litigation settlement of $825,000
and increases of $63,000 in loan prepayment penalty
and other mortgage fees and $14,000 in net appraisal
fees.   The increase in non-interest expense of
$491,000 was primarily due to increases of $228,000
in salaries and benefits, $45,000 in directors
compensation, $34,000 in equipment expense, and
$189,000 in legal fees, partially offset by a
decrease of $5,000 in occupancy expense.
There was a provision for loan losses of
$125,000 for the six months ended
September 30, 2004.  No provision was recorded
during the six months ended September 30, 2003.

The Companys assets increased $24.7 million or
15.4% to $184.7 million at September 30, 2004
from $160.0 million at March 31, 2004.
During the six months ended September 30, 2004,
net loans receivable increased $6.5 million or
5.7% to 119.6 million from $113.1 million.
The increase resulted principally from new
commercial mortgages of $8.7 million, $4.4
million of which were purchased from other
financial institutions, as well as new
originations of one-to-four family mortgage
loans of $3.8 million.  During the six months
ended September 30, 2004 mortgage backed
securities held to maturity increased $15.3
million or 49.8% to $46.0 million from $30.7
million at March 31, 2004. The increase in
mortgage backed securities held to maturity
reflects managements decision to implement
a leveraged growth strategy at a positive
interest rate spread.  The increase in assets
was primarily funded by a net increase in
advances from the Federal Home Loan Bank of
New York (FHLB) of $22.2 million to $45.4
million at September 30, 2004 from $23.2
million at March 30,2004.

Deposits of $109.1 million at September 30, 2004
increased $1.2 million or 1.1% from $107.9 million
at March 31, 2004. Stockholders equity increased
$1.0 million or 3.8% to $27.2 million at
September 30, 2004, primarily the result of
including net income for the six months ended
September 30, 2004 of $1.2 million, partially
offset by an increase in treasury stock of $200,000.

This press release contains certain 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.
The company intends such forward-looking statements
to be covered by the safe harbor provision for
forward looking statements contained in the
Private Securities Reform Act of 1995 as amended
and is including these statements for purposes of
these safe harbor provisions.  Forward looking
statements, which are based on certain
assumptions and describe future plans,
strategies, and expectations of the Company,
are generally identifiable by use of the words
believe, expect, intend, anticipate, estimate,
project, or similar expressions. The Companys
ability to predict results or the actual effect of
future plans or strategies is inherently uncertain.
Factors that could have a material adverse
affect on the operation and future prospects of
the Company and its wholly-owned subsidiaries include,
but are not limited to, changes in: interest rates;
general economic conditions; legislative/regulatory
provision; monetary and fiscal policies of the
U.S. Government, including policies of the
U.S. Treasury and the Federal Reserve Board;
the quality or composition of the loan or investment
portfolios; demand for loan products; deposit flows;
competition; demand for financial services in
the Companys market area; and accounting
principles, policies and guidelines.  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 the Company and its business,
including additional factors that could materially
affect the Companys financial results, is included
in the companys filings with the Securities and
Exchange Commission.



		    
Selected Financial Condition Data: 		   At September 30,      At March 31,
							2004		   2004
							      (In Thousands)

Total Assets 					     $184,664 		 $160,003
Loans Receivable, net (1) 			      119,565 		  113,059
Securities Available for Sale 			        2,094 		    3,421
Securities Held to Maturity 		               46,990 		   32,707
Deposits 					      109,124 		  107,861
Total Borrowings 			               45,350 		   23,200
Stockholders Equity 				       27,226 		   26,231

(1) The allowance for loan losses was $737,000 and
    $582,000 at September 30, 2004 and
    March 31,2004, respectively.

							

                           
				    	Three Months Ended         Six Months Ended
				    	  September 30,		     September 30,
			             	2004      2003	      	    2004	2003
				      	  (In thousands, except for per share data)
Selected Operating Data:
Interest Income 		  	$2,452    $2,028  	     $4,831    $4,013
Interest Expense 		     	   720 	     523 	      1,386     1,003
Net Interest Income 		   	 1,732     1,505 	      3,445 	3,010
Provision for Loan Losses 	     	   125        -			125 	  -
Net Interest Income after
 provision for Loan Losses	   	 1,607     1,505 	      3,320 	3,010
Non-interest income 		     	   958 	     102 	      1,112       208
Non-interest expense 		   	 1,231 	     965 	      2,404 	1,913
Income before income taxes 	   	 1,334 	     642 	      2,028  	1,305
Income taxes			     	   572 	     286 		861 	  580
Net income 			     	   762 	     356 	      1,167 	  725
Net Income per share- Basic  	   	 $0.48     $0.22              $0.74 	$0.46
Net Income per share -Fully Diluted	 $0.48     $0.22 	      $0.74 	$0.46

				   	  


                 

Selected Financial Ratios and Other Data:
							At or for the Three Months Ended
								 September 30,
Performance Ratios: 					    2004		2003

Return on Average Assets 			 	   1.66%		0.98%
Return on Average Equity 			  	  11.41%		5.53%
Interest Rate Spread		   		   	   3.68%		4.06%

Asset Quality Ratios:

Non-performing assets to total assets 			   0.34%		0.23%
Allowance for loan losses to non performing loans	 134.51%	      198.63%
Allowance for loan losses to total loan receivable  	   0.61%		0.54%

Capital Ratio:
Equity to total assets					  14.74%	       16.26%