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

December 31, 2005

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
December  31, 2005 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 December 31, 2005 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:  January 25, 2006  			By: /s/Barry M. Donohue
		             	Barry M. Donohue
			President and Chief Executive Officer

EX-99

FOR IMMEDIATE RELEASE
JANUARY 25, 2006

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

Atlantic Liberty Financial Corp.
Reports Loss for Quarter and Earnings for Nine Months Ended
December 31, 2005
And Declares Quarterly Dividend.

BROOKLYN, NY Atlantic Liberty Financial Corp,(Nasdaq:ALFC), the
holding company of Atlantic Liberty Savings, F.A.(the "Bank") announced a
loss of $722,000 or $0.45 per share ($0.43 fully diluted) for the quarter ended
December 31, 2005 as compared to earnings of $486,000 or $0.31 per share (
$0.30 fully diluted) for the quarter ended December 31, 2004. Earnings for the
nine months ended December 31, 2005 decreased to $120,000 or $0.07 per
share, basic and fully diluted, from $1.7 million or $1.04 per share, basic and
fully diluted, for the same period in 2004.   Earnings for the quarter and nine
months ended December 31, 2005 include non-recurring expenses of
$1,860,000 associated with the proposed merger of Atlantic Liberty Financial
Corp. with Flushing Financial Corporation announced on December 21, 2005.
These non-recurring expenses include the acceleration and payment in 2005 of
amounts due to certain executives under their employment agreements in
connection with the proposed merger, as well as the accelerated vesting of
restricted stock awards.  The payments under the employment agreements and
the acceleration of restricted stock awards occurred in 2005 in order to take
advantage of tax planning opportunities relating to the pending merger with
Flushing Financial.   After tax benefits, the non-recurring expenses reduced
income by $1,100,000 or $0.68 per share ($0.66 per share fully diluted) for
the three-months ended December 31, 2005, and $0.69 per share ($0.67 per
share fully diluted) for the nine-months ended December 31, 2005.
Additionally, earnings for the nine-months ended December 31, 2004 include
$340,000 or $0.22 per share basic and fully diluted of non-recurring income
received in connection with the settlement of litigation.

At its January meeting, the Board of Directors declared a quarterly cash
dividend of $0.08 per share to be paid on February 7, 2006 to shareholders of
record on January 27, 2006.

The decrease in earnings for the quarter ended December 31, 2005 was
primarily due to decreases of $108,000 in net interest income and $130,000 in
non-interest income and an increase of $1.7 million in non-interest expense,
partially offset by a decrease of $766,000 in income tax expense.  The
decrease in net interest income for the quarter
ended December 31, 2005 compared to the comparable quarter in 2004 was
attributable to a $7.7 million decrease in average interest earning assets,
together with an 18 basis point decrease in our net interest spread to 3.55%
from 3.73%.  Our net interest margin for the quarter ended December 31,
2005 compared to the comparable quarter in 2004 decreased 7 basis points to
3.93% from 4.00%.  Non-interest income decreased $130,000 due principally
to decreases of $67,000 in loan prepayment penalty and other mortgage fees,
$29,000 in savings and checking account fees, and $11,000 in other non-
operating income, partially offset by an increase of $11,000 in net appraisal
fees.  In addition, the quarter ended December 31, 2004 included the receipt of
$33,000 in life insurance proceeds from a policy covering a retired director.
There was no similar amount received in the current quarter.  The increase in
non-interest expense for the quarter ended December 31, 2005 of $1.7 million
included increases of $1.3 million in salaries and employee benefits, $280,000
in legal fees and $158,000 in miscellaneous expense, partially offset by
decreases of  $7,000 in advertising expense, $32,000 in net occupancy
expense and $13,000 in equipment expense.  The increases in salaries and
employee benefits, legal fees and miscellaneous expense result primarily from
the aforementioned non-recurring expenses associated with the pending
merger with Flushing Financial.  There was no provision for loan losses for
the quarters ended December 31, 2005 and December 31, 2004.  The
allowance for loan losses was $753,000 or 0.62% of loans outstanding at
December 31, 2005 as compared with $737,000 or 0.62% of loans outstanding
at December 31, 2004.  There were no non-performing loans at December 31,
2005 and $91,000 of non-performing loans at December 31, 2004.

The decrease in earnings for the nine months ended December 31, 2005 was
primarily due to decreases of $67,000 in net interest income and $995,000 in
non-interest income, and an increase of $1.6 million in non-interest expense,
partially offset by decreases of $125,000 in the provision for loan losses and
$968,000 in income tax expense.  The decrease in net interest income of
$67,000 for the nine-months ended December 31, 2005 as compared to the
prior period resulted from a decrease of $2.0 million in average interest
earnings assets, together with a decrease in our net interest spread of 7 basis
points to 3.67% from 3.74%.  Our net interest margin for the nine months
ended December 31, 2005 decreased 1 basis point to 3.99% from 4.00% in the
prior period.  Non-interest income for the nine-months ended December 31,
2005 decreased $995,000 as compared to the nine months ended December
31, 2004, primarily due to decreases of $83,000 in loan prepayment penalty
and other mortgage fees, $8,000 in net appraisal fees, $29,000 in savings and
checking account fees and $12,000 in other non-operating income.  In
addition, the nine-months ended December 31, 2004 included a non-recurring
litigation settlement of $825,000 and the receipt of life insurance proceeds of
$33,000. There were no similar amounts received during the nine-months
ended December 31, 2005.   The increase in non-interest expense of $1.6
million was primarily due to increases of $1.4 million in salaries
and benefits,
$50,000 in legal fees, and $164,000 in miscellaneous expenses, partially offset
by a decrease of $33,000 in net occupancy expense, $9,000 in equipment
expense and $11,000 in directors' compensation. The increases in salaries and
employee benefits, legal fees and miscellaneous expense result primarily from
the aforementioned non-recurring expenses associated with the pending
merger with Flushing Financial.   There was a provision for loan losses of
$125,000 for the nine-months ended December 31, 2004.  No provision was
recorded during the nine months ended December 31, 2005.

The Company's assets decreased $7.0 million or 3.8% to $177.0 million at
December 31, 2005 from $184.0 million at March 31, 2005.  During the nine
months ended December 31, 2005, mortgage backed securities held to
maturity decreased $6.8 million or 16.2% to $35.2 million at December 31,
2005 from $42.0 million at March 31, 2005.  Investment securities held to
maturity decreased $1.0 million or 25.0% to $3.0 million at December 31,
2005 from $4.0 million at March 31, 2005.  In addition, cash and cash
equivalents decreased $700,000 or 10.9% to $5.7 million at December 31,
2005 from $6.4 million at March 31, 2005.  During the nine months ended
December 31, 2005, net loans receivable increased $1.2 million or 1.0% to
$121.3 million from $120.1 million.  The increase resulted principally from
new multi-family mortgages of $7.9 million, $2.3 million of which were
purchased from other financial institutions, as well as new originations of
$10.3 million in one-to-four family mortgage loans. Additionally, we
originated $7.1 million of new commercial mortgages during the period.

Deposits totaled $103.9 million at December 31, 2005, a decrease of $5.2
million or 4.8% from 109.1 million at March 31, 2005. Advances from the
Federal Home Loan Bank of New York (FHLB) decreased $1.8 million to
$41.6 million at December 31. 2005 from $43.4 million at March 31, 2005.
Stockholders' equity increased $600,000 or 2.2% to $28.4 million at
December 31, 2005, primarily the result of including net income for the nine
months ended December 31, 2004 of $120,000 and the issuance of common
stock to fund early vesting of restricted stock awards.

 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 Company's 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 Company's 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 Company's financial results, is included in the
company's filings with the Securities and Exchange Commission.

EX-99

Atlantic Liberty Financial Corp.

Selected Financial Condition Data:         			  

					At December 30,       At March 31,
					         2005              2005
						    (In Thousands)
Total Assets 				$     177,014          $ 183,974
Loans Receivable, net (1) 		      121,293            120,148
Securities Available for Sale 		        2,774              2,940
Securities Held to Maturity                    38,199             45,985
Deposits                                      103,933            109,103
Total Borrowings                               41,550             43,350
Stockholders' Equity                           28,413             27,827

(1) The allowance for loan losses was $753,000 and $737,000
at December 31,2005 and March 31, 2005 respectively.



                              
                                  Three-months Ended        Nine-months Ended
	         		                   December 31,
		                   2005         2004         2005           2004
          			     (In thousands, except for per share data)

Selected Operating Data:

Interest Income                   $ 2,553    $  2,506       $  7,617       $  7,338
Interest Expense                      884         729          2,461          2,115
Net Interest Income                 1,669       1,777          5,156          5,223
Provision for Loan Losses              -           -             -              125
Net Interest Income
 after provision for Loan Losses    1,669       1,777          5,156          5,098
Non-interest income                    78         208            325          1,320
Non-interest expense                2,891       1,155          5,137          3,573
(Loss)Income before income taxes   (1,144)        830            344          2,845
Income taxe (benefit) expense        (422)        344            224          1,192
Net(loss) income                     (722)        486            120          1,653
Net (loss)Income per share-Basic  $  0.45    $   0.31        $  0.07       $   1.04
Net (loss)Income per share
   -Fully Diluted                 $  0.43    $   0.30        $  0.07       $   1.04
				    



Selected Financial Ratios and Other Data:
            
					    At or for the Three Months Ended
                                                      December 31,
Performance Ratios:                             2005              2004

Return on Average Assets                      (1.62%)             1.05%
Return on Average Equity                      (9.97%)             7.07%
Interest Rate Spread                           3.55%              3.73%

Asset Quality Ratios:
Non-performing assets to total assets          0.04%             0.09%
Allowance for loan losses
 to non performing loans                        (A)            810.52%
Allowance for loan losses
 to total loan receivable                      0.62%             0.62%

Capital Ratio:
Equity to total assets                         16.05%           14.92%

(A) Thre were no non-performing loans at 12/31/2005