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
                                                  --------------

                                       OR

---
                   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
---                EXCHANGE ACT OF 1934

                   For the transition period from __________to__________.

                           Commission File No. 0-24621

                           Farnsworth Bancorp, Inc.                            .
--------------------------------------------------------------------------------
        (Exact name of Small Business Issuer as Specified in Its Charter)


New Jersey                                                 22-3591051          .
--------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation          (I.R.S. Employer
or Organization)                                        Identification No.)

               789 Farnsworth Avenue, Bordentown, New Jersey 08505
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)


                                (609) 298-0723                                 .
--------------------------------------------------------------------------------
                 Issuer's Telephone Number, Including Area Code

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 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  restraint  is a shell  company as defined in
Rule 12b-2 of the Exchange Act

                       YES                   NO  X
                             ---                ---

     Number of shares of Common Stock outstanding as of May 4, 2006: 650,530

            Transitional Small Business Disclosure Format (check one)

                       YES        .          NO  X   .
                             ---                ---

<PAGE>

                                    Contents
                                    --------

<TABLE>
<CAPTION>

PART 1 - FINANCIAL INFORMATION                                                                    Page(s)
                                                                                                  -------
<S>                                                                                                <C>
Item 1.    Financial Statements
           Consolidated Statements of Financial Condition at March 31, 2006
           (unaudited) and September 30, 2005 (audited)............................................  1

           Consolidated Statements of Income and Comprehensive Income for the three
           and six months ended March 31, 2006, and 2005 (unaudited)...............................  2

           Consolidated Statements of Cash Flows for the six months ended
           March 31, 2006 and 2005 (unaudited).....................................................  3

Item 2.    Management's Discussion and Analysis of Financial Condition and
           Results of Operations...................................................................  6

Item 3.    Controls and Procedures.................................................................  9

PART II - OTHER INFORMATION

Item 1.    Legal Proceedings.......................................................................  10

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.............................  10

Item 3.    Defaults upon Senior Securities.........................................................  10

Item 4.    Submission of Matters to a Vote of Security Holders.....................................  10

Item 5.    Other Information.......................................................................  10

Item 6.    Exhibits ...............................................................................  10

Signatures ........................................................................................  11

Certifications.....................................................................................  12

</TABLE>


<PAGE>

                    FARNSWORTH BANCORP INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                               MARCH 31,     SEPTEMBER 30,
                                                                 2006            2005
                                                            -------------    -------------
ASSETS                                                         (UNAUDITED)      (AUDITED)

<S>                                                       <C>              <C>
Cash and due from banks                                     $   7,966,072    $  10,278,409
Securities available for sale                                  20,394,182       19,418,925
Securities held to maturity                                     1,176,135          969,864
Loans receivable, net                                          72,386,905       70,005,215
Accrued interest receivable                                       471,279          438,935
Federal Home Loan Bank of New York (FHLB) stock
  at cost substantially restricted                                201,100          520,200
Deferred income taxes                                             673,531          216,990
Premises and equipment                                          2,167,884        2,211,706
Other assets                                                      140,865           85,247
                                                            -------------    -------------

         Total assets                                       $ 105,577,953    $ 104,145,491
                                                            =============    =============


LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                    $  95,184,798    $  93,583,060
Borrowings from FHLB                                              573,532          654,696
Advances by borrowers for taxes and insurance                     292,601          404,956
Accrued income taxes                                              213,386           26,586
Accrued interest payable                                          105,194           84,606
Accounts payable and other accrued
  expenses                                                        147,042          154,816
                                                            -------------    -------------

         Total liabilities                                     96,516,553       94,908,720
                                                            -------------    -------------

Preferred stock $.10 par value, 1,000,000
  shares authorized; none issued and
  outstanding
Common stock $.10 par value, 5,000,000 shares authorized;
  662,698 shares issued, at March 31 2006 and September
  30, 2005; shares outstanding 650,530 and 650,316 at
  March 31, 2006 and September 30, 2005 respectively               66,270           66,270
Additional paid in capital                                      8,483,529        8,481,669
Retained earnings substantially restricted                      1,461,887        1,339,579
Treasury stock at cost 12,163 shares at March 31, 2006
 and 12,382 shares at September 30, 2005                         (118,521)        (120,658)
Common stock aquired by
 employee stock ownership plan (ESOP)                            (226,835)        (240,021)
Accumulated other comprehensive income , unrealized
 depreciation on available for sale securities,
 net of taxes                                                    (604,930)        (290,068)
                                                            -------------    -------------

         Total stockholders' equity                             9,061,400        9,236,771
                                                            -------------    -------------

         Total liabilities and
          stockholders' equity                              $ 105,577,953    $ 104,145,491
                                                            =============    =============
</TABLE>

                        SEE NOTES TO FINANCIAL STATEMENTS

                                       1
<PAGE>

                    FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                            AND COMPREHENSIVE INCOME
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED             SIX MONTHS ENDED
                                                      MARCH 31                      MARCH 31
                                                 2006           2005           2006           2005
                                             -----------    -----------    -----------    -----------
<S>                                        <C>            <C>            <C>            <C>
Interest income:
  Loans receivable                           $ 1,226,247    $ 1,146,285    $ 2,486,816    $ 2,289,906
  Securities                                     267,173        217,362        496,090        423,405
  Federal funds sold                              58,586         34,948        122,393         69,977
                                             -----------    -----------    -----------    -----------
        Total interest income                  1,552,006      1,398,595      3,105,299      2,783,288
                                             -----------    -----------    -----------    -----------

Interest expense:
  Deposits                                       597,495        446,646      1,173,890        872,951
  Federal Home Loan Bank advances                  8,679         11,031         17,959         22,630
                                             -----------    -----------    -----------    -----------
        Total interest expense                   606,174        457,677      1,191,849        895,581
                                             -----------    -----------    -----------    -----------
Net interest income                              945,832        940,918      1,913,450      1,887,707

Provision for loan losses                         60,000         43,289         90,000         66,891
                                             -----------    -----------    -----------    -----------

        Net interest income after
          provision for loan losses              885,832        897,629      1,823,450      1,820,816
                                             -----------    -----------    -----------    -----------

Noninterest income:
  Fees and other service charges                  63,136         68,171        133,193        145,622
  Net realized gain on available for sale:
   Loans                                           1,526          4,222          1,526         11,759
   Securities                                        703          5,091          5,859          8,308
                                             -----------    -----------    -----------    -----------
        Total noninterest income                  65,365         77,484        140,578        165,689
                                             -----------    -----------    -----------    -----------

Noninterest expense:
  Compensation and benefits                      476,514        429,577        942,262        898,615
  Occupancy and equipment                        125,559        143,611        252,419        275,681
  Professional fees                               72,846         56,347        149,879        111,172
  Service fees                                    80,179         73,201        146,436        115,152
  Other                                           90,139        105,107        202,398        224,392
                                             -----------    -----------    -----------    -----------
        Total noninterest expense                845,237        807,843      1,693,394      1,625,012
                                             -----------    -----------    -----------    -----------

Income  before provision for income
  tax expense                                    105,960        167,270        270,634        361,493
Provision for income tax expense                  41,300         63,000        115,800        144,800
                                             -----------    -----------    -----------    -----------
        Net income                                64,660        104,270        154,834        216,693

Other Comprehensive Income, net of taxes
  Unrealized loss on Securities
   Available for Sale                           (204,145)      (195,384)      (311,347)      (295,010)
  Reclassification adjustments for gains
    included in net income                          (422)        (3,055)        (3,515)        (4,985)
                                             -----------    -----------    -----------    -----------

Comprehensive loss                           $  (139,907)   $   (94,169)   $  (160,028)   $   (83,302)
                                             ===========    ===========    ===========    ===========

Net income  per common share:
  Basic                                      $      0.10    $      0.17    $      0.25    $      0.36
  Diluted                                    $      0.10    $      0.16    $      0.23    $      0.34

Weighted average number of shares
outstanding during the period:
 basic                                           627,732        621,317        627,732        598,235
 diluted                                         669,684        658,918        668,432        628,288
</TABLE>

                        SEE NOTES TO FINANCIAL STATEMENTS

                                       2

<PAGE>

                    FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                            SIX MONTHS ENDED MARCH 31

<TABLE>
<CAPTION>
                                                            2006            2005
                                                        ------------    ------------
<S>                                                   <C>             <C>
Cash flows from operating activities:
  Net income                                            $    154,834    $    216,693
                                                        ------------    ------------
  Adjustments to reconcile net income
   to net cash provided by operating activities
    Depreciation and amortization                             74,338          96,044
    Stock compensation                                        17,183          55,368
    Provision for loan losses                                 90,000          66,891
    Net gain on sale of AFS securities                        (5,859)         (8,308)
    Net gain loans sold                                       (1,526)        (11,759)
 Change in:
   Accrued interest receivable                               (32,344)         12,497
   Other assets                                              (55,618)         (6,180)
   Advances from borrowers                                  (112,355)         82,078
   Accrued and deferred income taxes                         (59,833)        (47,110)
   Accrued interest payable                                   20,588           5,498
   Other accrued liabilities                                  (7,774)        (38,597)
                                                        ------------    ------------

         Total adjustments                                   (73,200)        206,422
                                                        ------------    ------------

         Net cash provided by operating
          activities                                          81,634         423,115
                                                        ------------    ------------

Cash flows from investing activities:

  Net increase in loans receivable                        (2,471,690)     (2,391,370)
  Redemption of securities, held to maturity                 781,393          24,457
  Redemption of securities, available for sale               483,999       1,735,667
  Purchase of securities, held to maturity                  (987,664)     (1,251,688)
  Proceeds from sale of securities available for sale      4,926,328       7,391,157
  Purchase of securities, available for sale net          (6,902,969)    (10,436,429)
  Redemption of FHLB stock                                   319,100            --
  Purchase of premises and equipment                         (30,516)         (9,622)
                                                        ------------    ------------

         Net cash used in investing
           activities                                     (3,882,019)     (4,937,828)
                                                        ------------    ------------


Cash flows from financing activities:
  Net increase  in deposits                                1,601,738       2,875,288
  Repayment of  Federal Home Loan Bank Borrowings            (81,164)        (76,514)
  Proceeds from sale of stock, net                              --         1,785,691
  Dividends paid                                             (32,526)        (32,515)
                                                        ------------    ------------

         Net cash provided by financing
           activities                                      1,488,048       4,551,950
                                                        ------------    ------------

Net change in cash                                        (2,312,337)         37,237

Cash at beginning of period                               10,278,409       6,009,330
                                                        ------------    ------------
Cash at end of period                                   $  7,966,072    $  6,046,567
                                                        ============    ============

Supplemental disclosure:
  Cash paid during the period for:
    Interest                                            $  1,171,261    $    890,083
                                                        ============    ============
    Income taxes                                        $    175,750    $    135,000
                                                        ============    ============

Non cash items
  Common stock aquired by Restricted Stock Plan                         $     20,131
                                                                        ============
  Unrealized loss  on securities available
    for sale, net of deferred income taxes              $   (314,862)   $   (299,995)
                                                        ============    ============
   Loan to ESOP                                                         $    172,500
                                                                        ============
</TABLE>

                        SEE NOTES TO FINANCIAL STATEMENTS

                                       3
<PAGE>

                     FARNSWORTH BANCORP, INC. AND SUBSIDIARY
          NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS






NOTE 1.  Presentation of Financial Information
         -------------------------------------

The accompanying unaudited consolidated interim financial statements include the
accounts of  Farnsworth  Bancorp,  Inc.  (the  "Company")  and its  subsidiaries
Peoples  Savings  Bank (the  "Bank") and Peoples  Financial  Services,  Inc. The
accompanying  unaudited  consolidated  interim  financial  statements  have been
prepared in accordance with the instructions to Form 10-QSB.  Accordingly,  they
do not include  all of the  information  and  footnotes  required  by  generally
accepted accounting principles for complete financial statements. The accounting
and  reporting  policies  of the  Company  conform in all  material  respects to
generally  accepted  accounting  principles and to general  practice  within the
thrift industry. It is the opinion of management that the accompanying unaudited
consolidated  interim financial  statements  reflect all adjustments,  which are
considered  necessary to report  fairly the  financial  position as of March 31,
2006, the  Consolidated  Statements of Income and  Comprehensive  Income for the
three and six  months  ended  March  31,  2006 and  2005,  and the  Consolidated
Statements  of Cash Flows for the six months ended March 31, 2006 and 2005.  The
results of operations  for the three and six months ended March 31, 2006 are not
necessarily  indicative  of results  that may be  expected  for the entire  year
ending September 30, 2006, or for any other period.  The accompanying  unaudited
consolidated interim financial statements should be read in conjunction with the
Company's September 30, 2005 consolidated  financial  statements,  including the
notes thereto,  which are included in the Company's Annual Report on Form 10-KSB
for the fiscal year ended September 30, 2005.

In preparing the financial statements,  management is required to make estimates
and assumptions that affect the reported amount of assets and  liabilities,  the
disclosure of contingent  assets and liabilities  and the reported  revenues and
expenses.  Actual results could differ  significantly  from those estimates.  In
addition,  various regulatory agencies, as an integral part of their examination
process, periodically review the Bank's allowance for loan losses and foreclosed
real estate.  Such  agencies may require the Bank to recognize  additions to the
allowance for loan losses or additional  write-downs  on foreclosed  real estate
based on their  judgments  about  information  available  to them at the time of
their examination.

Nature of Operations
--------------------

The Company is a unitary  savings and loan holding  company.  The Bank  operates
four  branches  in  Burlington  County,  New Jersey.  The Bank offers  customary
banking services,  including accepting  checking,  savings and time deposits and
the making of commercial,  real-estate  and consumer loans, to customers who are
predominantly small and middle-market businesses and middle-income individuals.

The Company also offers  brokerage,  investment  advisory services and insurance
services to the general  public  through  Peoples  Financial  Services,  Inc., a
subsidiary  organized for the sale of mutual funds and insurance through a third
party networking agreement.

                                       4

<PAGE>

NOTE 2.  Net Income Per Common Share
         ---------------------------

Basic net income per common  share is  calculated  by dividing net income by the
number of  shares of common  stock  outstanding,  adjusted  for the  unallocated
portion of shares held by the Bank's  Employee Stock Ownership Plan ("ESOP") and
the  Bank's  restricted  stock  plan  ("RSP").  Diluted  net income per share is
calculated  by  adjusting  the number of shares of common stock  outstanding  to
include the effect of stock options,  stock-based  compensation grants and other
securities, if dilutive, generally, using the treasury stock method.

<TABLE>
<CAPTION>
                                            For the three months ended March 31
                                            -----------------------------------
                                            2006                               2005
                                            ----                               ----
                                         Weighted     Per-                    Weighted    Per-
                                          Average     Share                   Average     Share
                               Income     Shares      Amount       Income     Shares      Amount
                               ------     ------      ------       ------     ------      ------
<S>                         <C>          <C>        <C>          <C>         <C>        <C>
Net income available
To common shareholders       $ 64,660     650,535                 $104,270     604,311

ESOP Shares, not
Committed to be released                  (22,803)                             (27,508)

RSP Shares                                                                      (1,486)
                             --------------------    -------      -------------------    -------
Basic earnings per share       64,660     627,732    $  0.10      $104,270     621,317   $  0.17
Common Stock equivalents                   41,952                               37,601
                             --------------------    -------      -------------------    -------
Diluted earnings per share   $ 64,660     669,684    $  0.10      $104,270    658,918    $  0.16
                             ====================    =======      ===================    =======
</TABLE>

NOTE 3.  Investment Securities
         ---------------------

The Bank's  investments  in  securities  are  classified in two  categories  and
accounted for as follows:

Securities Held to Maturity.  Mortgage backed  securities for which the Bank has
the  positive  intent and  ability to hold to  maturity  are  reported  at cost,
adjusted  for  amortization  of premiums and  accretion  of discounts  which are
recognized  in  interest  income  using the  interest  method over the period to
maturity.

Securities  Available  for Sale.  Securities  available for sale are reported at
market value and consist of certain debt and equity securities not classified as
trading or securities to be held to maturity.

                                       5

<PAGE>

Declines in the fair value of individual held to maturity and available for sale
securities  below  their  cost  that are other  than  temporary  will  result in
write-downs  of the  individual  securities  to their fair  value.  The  related
write-downs will be included in earnings as realized losses.

Unrealized  holding gains and losses,  net of tax, on  securities  available for
sale are  reported  as a net  amount in a  separate  component  of equity  until
realized.

Gains and losses on the sale of  securities  available  for sale are  determined
using the specific-identification method.

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations

         The Company may from time to time make written or oral "forward-looking
statements,"  including  statements  contained in the Company's filings with the
Securities and Exchange  Commission  (including  this  Quarterly  Report of Form
10-QSB),  in its  reports to  stockholders  and in other  communications  by the
Company,  which  are made in good  faith by the  Company  pursuant  to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.

         These forward-looking statements involve risks and uncertainties,  such
as statements of the Company's plans,  objectives,  expectations,  estimates and
intentions,  that are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, among others,
could cause the Company's  financial  performance to differ  materially from the
plans,  objectives,  expectations,  estimates and  intentions  expressed in such
forward-looking statements: the strength of the United States economy in general
and the strength of the local economy in which the Company conducts  operations;
the effects of, and changes in,  trade,  monetary and fiscal  policies and laws,
including  interest  rate  policies  of the board of  governors  of the  federal
reserve system, inflation, interest rate, market and monetary fluctuations;  the
impact of changes in financial  services' laws and  regulations  (including laws
concerning taxes, banking securities and insurance);  technological changes; and
the success of the Company at managing the risks involved in the foregoing.

         The Company  cautions that the foregoing  list of important  factors is
not  exclusive.  The Company does not  undertake  to update any  forward-looking
statement,  whether written or oral, that may be made from time to time by or on
behalf of the Company.

Financial Condition

         Total assets were $105.5 million at March 31, 2006, an increase of $1.4
million  compared to $104.1  million at September 30, 2005. The increase was due
to an increase in available  for sale  securities of $975,000 and an increase in
loans receivable net of $2.4 million, partially offset by a decrease in cash and
due from banks of $2.3 million.  The Company's  total  liabilities  increased by
$1.6  million to $96.5  million at March 31, 2006  compared to $94.9  million at
September 30, 2005, the increase was primarily due to an increase in deposits.

         Stockholders'  equity was $9.1 million or 8.6% of total assets at March
31, 2006,  as compared to $9.2 million or 8.9% of total assets at September  30,
2005.  The  decrease in  stockholders'  equity is primarily  attributable  to an
increase in the unrealized  depreciation on available for sale securities net of
taxes of $315,000 and dividends paid of $33,000,  partially offset by net income
of $155,000.

                                       6

<PAGE>

Results of Operations

         Net Income.  The Company's net income decreased $40,000 for the quarter
ended March 31, 2006 to $65,000 from  $104,000  for the quarter  ended March 31,
2005.  The  decrease  in net  income was mostly  attributable  to a decrease  in
non-interest income of $12,000 and increases in non-interest expenses of $37,000
partially offset by a decrease in provision for income taxes of $22,000. For the
six months ended March 31, 2006, net income  decreased  $62,000 to $155,000 from
net income of $217,000 for the same period in 2005 which was attributable to the
same factors discussed with respect to the quarterly period.

         Net  Interest  Income.  Net  interest  income  is the most  significant
component of the Company's  income from  operations.  Net interest income is the
difference between interest the Company receives on its interest earning assets,
primarily  loans  and  investments,   and  interest  the  Company  pays  on  its
interest-bearing  liabilities,  deposits and  borrowings.  Net  interest  income
depends on the  volume of and rates  earned on  interest-earning  assets and the
volume of and rates paid on interest-bearing liabilities.

         Net interest income after provision for loan losses decreased  $12,000,
or 1.3%,  to  $886,000  for the  quarter  ended  March 31,  2006 as  compared to
$898,000 for the quarter  ended March 31, 2005.  The decrease  resulted  from an
increase in interest  expenses of $148,000 and an increase in the  provision for
loan  losses of  $17,000npartially  offset by  increase  in  interest  income of
$153,000. Net interest income after provision for loan losses for the six months
ended March 31, 2006 was $1.8 million,  which was  comparable to the same period
in 2005.

         Provision  for Loan Losses.  Provision  for loan losses was $60,000 for
the three months ended March 31, 2006,  compared to $43,000 for the three months
ended March 31,  2005.  The increase  reflects  management's  assessment  of the
credit  risks  in  the  loan  portfolio  and  the  level  of   charge-offs   and
non-performing loans. For the six months ended March 31, 2006, the provision for
loan losses was $90,000 compared to $67,000 for the same period in 2005.

         Management believes the allowance for loan losses is at a level that is
adequate to provide for  estimated  losses.  However,  there can be no assurance
that further  additions  will not be made to the  allowance and that such losses
will not exceed the estimated amount.

         Non-Interest Income.  Non-interest income decreased $12,000 or 15.6% to
$65,000 for the quarter  ended March 31, 2006 from  $77,000 for the same quarter
in 2005.  The decrease was partially due to a decrease in fees and other charges
of $5,000 and a decrease in gains on sale of securities and loans  available for
sale of $7,000  compared  to the same period in 2005.  For the six months  ended
March 31,  2006,  non-interest  income  decreased  $25,000  compared to the same
period in 2005.

         Non-Interest   Expense.   Non-interest  expense  increased  $37,000  to
$845,000  for the  quarter  ended March 31,  2006  compared to $808,000  for the
quarter  ended March 31, 2005.  The increase was primarily due to an increase in
compensation  and  benefits of $47,000 and an increase in  professional  fees

                                       7

<PAGE>

of $17,000 partially offset by a decrease in office occupancy and other expenses
of  $33,000.  For the six  months  ended  March 31,  2006  non-interest  expense
increased  by $68,000  compared to the same period in 2005.  The increase in the
six months was due to an increase in compensation and benefits of $44,000 and an
increase of $39,000 in professional fees.

         Income Tax  Expense.  Income tax expense  decreased  by $22,000 for the
quarter ended March 31, 2006 compared to $63,000 for the quarter ended March 31,
2005. This decrease attributed to the decrease in pretax income of $61,000.  For
the six months ended March 31, 2006, income tax expense decreased by $29,000 due
to the decrease in pretax income.


Liquidity and Capital Resources

         The Bank is  required to maintain  levels of liquid  assets  considered
necessary for its safe and sound operations.

         The Company's primary sources of funds are deposits, repayment of loans
and  mortgage-backed   securities,   maturities  of  investment  securities  and
interest-bearing  deposits with other banks, advances from the FHLB of New York,
and funds  provided from  operations.  While  scheduled  repayments of loans and
mortgage-backed   securities  and   maturities  of  investment   securities  are
predictable  sources of funds,  deposit flows,  and loan prepayments are greatly
influenced  by the general  level of interest  rates,  economic  conditions  and
competition.  The  Company  uses its  liquidity  resources  principally  to fund
existing  and future  loan  commitments,  maturing  certificates  of deposit and
demand  deposit  withdrawals,  to invest in other  interest-earning  assets,  to
maintain liquidity, and meet operating expenses.

         Net cash  provided  by the  Company's  operating  activities  (the cash
effects  of  transactions  that enter into the  Company's  determination  of net
income e.g., non-cash items,  amortization and depreciation,  provision for loan
losses)  for the six months  ended  March 31,  2006 was  $82,000,  a decrease of
$341,000 compared to the same period in 2005. The decrease in 2006 was primarily
due to a decrease in net income of $62,000,  a change in advances from borrowers
of $194,000 and a change in accrued interest receivable of $44,000.

         Net  cash  used  by the  Company's  investing  activities  (i.e.,  cash
disbursements,   primarily  for  the  purchase  of  investment   securities  and
mortgage-backed  securities  and for the  funding  of loans)  for the six months
ended March 31, 2006, totaled $3.9 million compared to $4.9 million for the same
period in 2005.  The use of funds is mainly  attributed  to an increase in loans
receivable, net of $2.5 million and an increase in investments of $1.2 million.

         Net cash  provided  the  Company's  financing  activities  (i.e.,  cash
receipts  primarily  from net  increases in deposits  and net  decreases in FHLB
advances)  for the six  months  ended  March 31,  2006,  totaled  $1.4  million,
compared to net cash  provided by financing  activities  of $4.6 million for the
same period in 2005. The change is attributed to an increase in deposits of $1.6
million  for the six months  ending  March 31,  2006  compared to an increase in
deposits of $2.9 million for the same period in 2005 and the  proceeds  from the
sale of common stock of $1.8 million net in 2005 versus none in 2006.

         Office of Thrift Supervision ("OTS") capital regulations  applicable to
the Bank require  savings  institutions  to meet three  capital  standards:  (1)
tangible  capital equal to 1.5% of total adjusted  assets,  (2) a leverage ratio
(core  capital)  equal  to at  least  3% of  total  adjusted  assets,  and (3) a
risk-based capital

                                       8

<PAGE>

requirement equal to 8.0% of total  risk-weighted  assets. In addition,  the OTS
prompt corrective action regulation provides that a savings institution that has
a leverage  capital  ratio of less than 4% (3% for  institutions  receiving  the
highest examination rating) will be deemed to be  "undercapitalized"  and may be
subject  to  certain  restrictions.  The  Bank  was  in  compliance  with  these
requirements  at March 31,  2006,  with  tangible,  core and risk based  capital
ratios of 7.92%, 7.92% and 14.06%, respectively.



Item 3.  Controls and Procedures

         (a) Evaluation of disclosure  controls and  procedures.  Based on their
evaluation of the Company's  disclosure  controls and  procedures (as defined in
Rule 13a-15(e) under the Securities  Exchange Act of 1934 (the "Exchange Act")),
the Company's  principal  executive officer and principal financial officer have
concluded that as of the end of the period  covered by this Quarterly  Report on
Form 10-QSB such disclosure controls and procedures are effective to ensure that
information  required to be disclosed by the Company in reports that it files or
submits under the Exchange Act is recorded,  processed,  summarized and reported
within the time periods  specified in Securities and Exchange  Commission  rules
and forms.

         (b) Changes in internal  control over financial  reporting.  During the
quarter under report, there was no change in the Company's internal control over
financial  reporting that has materially  affected,  or is reasonably  likely to
materially affect, the Company's internal control over financial reporting.

                                        9

<PAGE>

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings
--------------------------

         The  Registrant  was not engaged in any material  legal  proceedings at
March  31,  2006.  From time to time,  the Bank is a party to legal  proceedings
within the normal course of business wherein it enforces its security  interests
in loans made by it, and other similar matters.

Item 2.  Changes in Securities and Use of Proceeds
--------------------------------------------------

         Not applicable.

Item 3.  Defaults Upon Senior Securities
----------------------------------------

         Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

         On  February  21,  2006,   the  Company  held  its  Annual  Meeting  of
Stockholders and the following items were presented:

          Election of three directors for terms to expire in 2009

             John J.  Maley Jr.   492,690     votes for   1,241   Votes withheld
                                  -------                ------
             Edgar N. Peppler     493,338     votes for     593   Votes withheld
                                  -------                ------
             Gary N. Pelehaty     479,383     votes for  14,548   Votes withheld
                                  -------                ------

          Ratification  of  appointment  of  Kronick  Kalada  Berdy  & Co as the
          Company's  Auditors  for the fiscal  year  ending  September  30, 2006
          493,266 votes for 89 votes against and 576 abstentions.
          -------           --                   ---

Item 5.  Other Information
--------------------------

         Not applicable.


Item 6.  Exhibits
-----------------

     (a)  Exhibits:

     31   Certifications  pursuant to Section 302 of the  Sarbanes-Oxley  Act of
          2002
     32   Certification  pursuant  to Section 906 of the  Sarbanes-Oxley  Act of
          2002

                                       10
<PAGE>

                                   SIGNATURES


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


                             FARNSWORTH BANCORP, INC.


Date: May 12, 2006           By:    /s/Gary N. Pelehaty
                                    --------------------------------------------
                                    Gary N. Pelehaty
                                    President and Chief Executive Officer
                                    (Principal Executive Officer)




Date: May 12, 2006           By:    /s/Charles Alessi
                                    --------------------------------------------
                                    Charles Alessi
                                    Vice President, Chief Financial Officer,
                                    Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)



                                       11