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, 2003
                                                 --------------

                                       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   .
                                                              ---    ---

Number of shares of Common Stock outstanding as of April 24, 2003: 360,866
                                                                      -------

            Transitional Small Business Disclosure Format (check one)

                     YES      .           NO   X   .
                         -----               ------


<PAGE>

                                    Contents
                                    --------
<TABLE>
<CAPTION>



<S>  <C>                                                                                 <C>
PART 1 - FINANCIAL INFORMATION                                                              Page(s)
                                                                                            -------


Item 1.  Financial Statements

         Consolidated  Statements  of  Financial  Condition  at March  31,  2003
         (unaudited) and September 30, 2002 (audited) .........................................1


         Consolidated  Statements of Income and Comprehensive  Income (Loss) for
         the  three  and  six   months   ended   March   31,   2003,   and  2002
         (unaudited)...........................................................................2

         Consolidated  Statements  of Cash Flows for the six months  ended March
         31, 2003 and 2002 (unaudited).........................................................3

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations.................................................................5

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

PART II - OTHER INFORMATION


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

Item 2.  Changes in 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 and Reports on Form 8-K......................................................10

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

Certifications.................................................................................12-13

</TABLE>
<PAGE>
                    FARNSWORTH BANCORP INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
                                                                     MARCH 31            SEPTEMBER 30,
                                                                      2003                   2002
                                                                   -------------         ------------
                                                                   (UNAUDITED)             (AUDITED)
<S>                                                             <C>                   <C>
ASSETS

Cash and due from banks                                            $  9,865,851          $  9,161,801
Securities available for sale                                        13,805,138            11,710,884
Securities held to maturity                                             835,024             1,147,300
Loans receivable, net                                                58,621,653            58,026,218
Accrued interest receivable                                             354,197               390,459
Federal Home Loan Bank of New York (FHLB) stock
  at cost substantially restricted                                      499,800               499,800
Premises and equipment                                                2,280,230             2,117,790
Other assets                                                            101,074                99,447
                                                                   ------------          ------------

         Total assets                                              $ 86,362,967          $ 83,153,699
                                                                   ============          ============


LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                           $ 78,337,952          $ 75,288,987
Borrowings from FHLB                                                  1,026,477             1,094,474
Advances by borrowers for taxes and insurance                           322,582               255,953
Accrued income taxes                                                     24,960                87,911
Deferred income taxes                                                   101,416                71,002
Accrued interest payable                                                 26,437                35,984
Accounts payable and other accrued expenses                              71,151               132,228
                                                                   ------------          ------------

         Total liabilities                                           79,910,975            76,966,539
                                                                   ------------          ------------

Preferred stock $.10 par value, 1,000,000
  shares authorized; none issued and
  outstanding
Common stock $.10 par value, 5,000,000 shares authorized;
  379,858 shares issued, 360,866 shares outstanding                      37,985                37,985
Additional paid in capital                                            3,396,262             3,396,262
Retained earnings substantially restricted                            3,232,166             2,980,935
Treasury stock at cost 18,992 shares                                   (185,172)             (185,172)
Common stock aquired by
  employee stock ownership plan (ESOP)                                 (159,234)             (174,414)
Common stock aquired by restricted stock plan                           (29,205)              (54,765)
Accumulated other comprehensive income , unrealized
  appreciation on available for sale securities,
  net of taxes.                                                         159,190               186,329
                                                                   ------------          ------------

         Total stockholders' equity                                   6,451,992             6,187,160
                                                                   ------------          ------------

         Total liabilities and stockholders' equity                $ 86,362,967          $ 83,153,699
                                                                   ============          ============
</TABLE>
                        SEE NOTES TO FINANCIAL STATEMENTS

                                       1
<PAGE>
                    FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                         AND COMPREHENSIVE INCOME (LOSS)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                    THREE MONTHS ENDED              SIX MONTHS ENDED
                                                         MARCH 31                        MARCH 31
                                                    2003           2002           2003           2002
                                                 -----------    -----------    -----------     -----------
<S>                                           <C>            <C>            <C>             <C>
Interest income:
  Loans receivable                               $ 1,128,261    $   967,921    $ 2,228,151     $ 1,876,892
  Securities                                         167,125        214,176        357,670         413,334
  Federal funds sold                                  28,562         15,337         47,802          36,744
                                                 -----------    -----------    -----------     -----------
        Total interest income                    $ 1,323,948    $ 1,197,434    $ 2,633,623     $ 2,326,970
                                                 -----------    -----------    -----------     -----------

Interest expense:
  Deposits                                           433,459        491,388        890,984       1,015,412
  Federal Home Loan Bank advances                     15,341         25,745         31,685          66,707
                                                 -----------    -----------    -----------     -----------
        Total interest expense                       448,800        517,133        922,669       1,082,119
                                                 -----------    -----------    -----------     -----------
Net interest income                                  875,148        680,301      1,710,954       1,244,851

Provision for loan losses                             19,820         26,984         49,820          41,772
                                                 -----------    -----------    -----------     -----------

        Net interest income after
          provision for loan losses                  855,328        653,317      1,661,134       1,203,079
                                                 -----------    -----------    -----------     -----------
Noninterest income:
  Fees and other service charges                      66,877         69,836        141,236         136,935
  Net realized gain on available for
    sale loans and securities                         38,049         18,690         67,230          31,948
                                                 -----------    -----------    -----------     -----------
        Total noninterest income                     104,926         88,526        208,466         168,883
                                                 -----------    -----------    -----------     -----------

Noninterest expense:
  Compensation and benefits                          416,361        287,404        769,005         575,897
  Occupancy and equipment                            138,094         92,549        237,803         179,191
  Federal insurance premiums and
    assessments                                        3,126          2,600          6,095           5,041
  Other                                              212,240        191,455        424,868         384,530
                                                 -----------    -----------    -----------     -----------
        Total noninterest expense                    769,821        574,008      1,437,771       1,144,659
                                                 -----------    -----------    -----------     -----------

Income  before provision for income
  tax expense                                        190,433        167,835        431,829         227,303
Provision for income tax expense                      68,853         52,000        162,553          67,000
                                                 -----------    -----------    -----------     -----------
        Net income                                   121,580        115,835        269,276         160,303

Other Comprehensive Income (Loss), net of taxes
  Unrealized gain (loss) on Securities
   Available for Sale                                 17,319        (45,294)        11,638        (220,749)
  Reclassification adjustments for gains
    included in net income                           (28,229)       (18,690)       (38,777)        (31,948)
                                                 -----------    -----------    -----------     -----------

Comprehensive Income (Loss)                      $   110,670    $    51,851    $   242,137     $   (92,394)
                                                 ===========    ===========    ===========     ===========

Net income  per common share:
  Basic                                          $      0.36    $      0.35    $      0.80     $      0.49
  Diluted                                        $      0.35    $      0.35    $      0.78     $      0.48

Weighted average number of shares outstanding
    during the period:
  Basic                                              335,450        327,578        335,450         327,578
  Diluted                                            349,102        331,228        345,736         331,544
</TABLE>
                        SEE NOTES TO FINANCIAL STATEMENTS

                                       2
<PAGE>
                    FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                         SIX MONTHS ENDED MARCH 31
                                                           2003              2002
                                                        -----------      -----------
<S>                                                  <C>              <C>
Cash flows from operating activities:
  Net income                                            $   269,276      $   160,303
                                                        -----------      -----------
  Adjustments to reconcile net income
   to net cash provided by operating activities
    Depreciation and amortization                            69,668           59,038
    Stock compensation                                       40,742           26,341
    Provision for loan losses                                49,820           41,772
    Net gain on sale of AFS securities                      (38,777)         (31,948)
    Net gain loans sold                                     (28,453)               -
    Net loss on sale of real estate owned                         -            1,675
 Change in:
   Accrued interest receivable                               36,262          (67,565)
   Other assets                                              (1,627)         (26,202)
   Advances from borrowers                                   66,629           41,947
   Accrued and deferred income taxes                         15,919           71,190
   Accrued interest payable                                  (9,547)         (10,063)
   Other accrued liabilities                                (61,077)          (4,025)
                                                        -----------      -----------

         Total adjustments                                  139,559          102,160
                                                        -----------      -----------

         Net cash provided by operating activities          408,835          262,463
                                                        -----------      -----------

Cash flows from investing activities:

  Net increase in loans receivable                       (2,458,285)      (7,959,234)
  Proceeds from sale of loans                             1,811,953                -
  Proceeds from sale of REO                                       -          128,617
  Redemption of securities, held to maturity                311,441          252,821
  Redemption of securities, available for sale            2,524,675        1,516,409
  Purchase of Federal Home Loan Bank Stock                        -         (127,200)
  Proceeds from sale of securities available for sale     7,789,593        2,497,925
  Purchase of securities, available for sale net        (12,414,977)      (6,394,321)
  Purchase of premises and equipment                       (232,108)        (690,296)
                                                        -----------      -----------

         Net cash used in investing                      (2,667,708)     (10,775,279)
                                                        -----------      -----------

Cash flows from financing activities:
  Net increase  in deposits                               3,048,965        7,540,170
  Repayment of  Federal Home Loan Bank Borrowings           (67,997)      (1,564,107)
  Dividends paid                                            (18,045)               -
                                                        -----------      -----------

         Net cash provided by financing activities        2,962,923        5,976,063
                                                        -----------      -----------

Net increase (decrease) in cash                             704,050       (4,536,753)

Cash at beginning of period                               9,161,801        9,282,084
                                                        -----------      -----------
Cash at end of period                                   $ 9,865,851      $ 4,745,331
                                                        ===========      ===========

Supplemental  disclosure:
  Cash paid during the period for:

    Interest                                            $   932,216      $ 1,092,182
                                                        ===========      ===========
    Income taxes                                        $   239,336                -
                                                        ===========      ===========

  Unrealized loss  on securities available
    for sale, net of deferred income taxes              $   (27,139)      $ (220,749)
                                                        ===========      ===========
</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,
2003, the Consolidated  Statements of Income and Comprehensive Income (loss) for
the three and six months  ended  March 31, 2003 and 2002,  and the  Consolidated
Statements  of Cash Flows for the six months ended March 31, 2003 and 2002.  The
results of operations  for the three and six months ended March 31, 2003 are not
necessarily  indicative  of results  that may be  expected  for the entire  year
ending September 30, 2003, or for any other period.  The accompanying  unaudited
consolidated interim financial statements should be read in conjunction with the
Company's September 30, 2002 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, 2002.

     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>

New Branch
----------

Peoples  Savings Bank opened its fourth  branch office  located in Marlton,  New
Jersey on January 13, 2003.

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 Banks'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.

                       For the three months ended March 31
                       -----------------------------------

<TABLE>
<CAPTION>
                                                2003                                   2002
                                              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         $  121,580      360,866                 $ 115,835       360,866

ESOP shares, not
committed to be released                       (18,236)                                (21,274)

RSP shares                                     ( 7,180)                                (12,014)
                               ----------      -------     ------      ---------       -------      ------

Basic earnings per share          121,580      335,450     $ 0.36        115,835       327,578      $ 0.35

Common stock equivalents                        10,286                                   3,650
                               ----------      -------     ------      ---------       -------      ------

Diluted earnings per share     $  121,580      349,102     $ 0.35      $ 115,835       331,228      $ 0.35
                               ==========      =======     ======      =========       =======      ======

</TABLE>

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

                                       5
<PAGE>

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 in 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  increased  $3.2 million or 3.9% to $86.4 million at March 31,
2003 from $83.2  million at  September  30, 2002.  The  increase  was  primarily
attributable to a $2.5 million increase in the Bank's  securities  available for
sale,  an  increase  of  $595,000  in loans  receivable  net and an  increase of
$162,000 in premises and  equipment.  The increase in  securities  available for
sale was primarily due to the additional  funds available to invest.  The Bank's
total liabilities  increased $2.9 million or 3.8%, to $79.9 million at March 31,
2003 from $77.0 million at September 30, 2002. The increase in total liabilities
was primarily  attributable to a $3.0 million increase in deposits  attributable
in part to the opening of our new branch  office  located in Marlton New Jersey,
partially offset by a $68,000 decrease in FHLB borrowings.

     Stockholder's  equity  increased  $265,000 to $6.5 million or 7.5% of total
assets at March 31, 2003, as compared to $6.2 million or 7.5% of total assets at
September  30,  2002.  The  increase  in   stockholders'   equity  is  primarily
attributable to net income of $269,000  partially offset by a change in the fair
value of available for sale securities net of taxes of $27,000, cash dividend of
$18,000 and amortization of benefit plans.

Results of Operations

     Net Income.  The Bank's net income  increased  $6,000 for the quarter ended
March 31,  2003 to net income of $122,000  from net income of  $116,000  for the
quarter ended March 31, 2002. The increase in net income was  attributable to an
increase in the Bank's net interest  income after  provisions for loan losses of
$202,000, and an increase in non-interest income of $16,000, partially offset by
an increase in non-interest expense of $196,000 and an increase in

                                       6
<PAGE>

provision for income taxes of $17,000.  For the six months ended March 31, 2003,
net income  increased  $109,000 to $269,000  from net income of $160,000 for the
same period in 2002.

     Net Interest Income. Net interest income is the most significant  component
of the Bank's  income from  operations.  Net interest  income is the  difference
between  interest the Bank received on its interest  earning  assets,  primarily
loans, investments and mortgage-backed securities, and interest the Bank pays on
its  interest-bearing  liabilities,   primarily  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 increased $202,000,  or
30.9%,  to $855,000 for the quarter ended March 31, 2003 as compared to $653,000
for the quarter  ended March 31, 2002.  The increase  was  primarily  due to the
increased  interest  income of $127,000  and a decrease  in interest  expense of
$68,000 due to the decrease in cost of funds.  The  increase in interest  income
was partially due to the growth of the residential  loan portfolio  attributable
to a high demand for real estate purchases in the Bank's lending area and a high
volume of mortgage loan  refinancing and home equity loans.  Net interest income
after  provision  for loan losses  increased  $458,000  for the six months ended
March 31, 2003 compared to the same period in 2002.

     Provision  for Loan Losses.  Provision  for loan losses was $19,000 for the
three months ended March 31, 2003 compared to $27,000 for the three months ended
March 31, 2002. The decrease reflects managements 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, 2003 the  provision  for loan losses was $50,000
compared to $42,000 for the same period in 2002.

     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 or that such losses
will not exceed the estimated amount.

     Non-Interest  Income.  Non-interest  income  increased  $17,000 or 19.3% to
$105,000 for the quarter  ended March 31, 2003 from $88,000 for the same quarter
in 2002.  Non-interest  income for 2003  included  a gain on sale of  securities
available for sale of $28,000  compared to a gain of $19,000 for the same period
in 2002 and gain on sale of loans of $10,000  versus none in the prior year. For
the six months  ended March 31, 2003,  non-interest  income  increased  $39,000,
compared to the same period in 2002,  this included a gain in the 2002 period on
securities  available for sale of $39,000  compared to a gain in 2002 of $32,000
and a gain on sale of loans of $28,000 versus none in 2002.

     Non-Interest  Expense.  Non-interest expense increased $196,000 or 34.0% to
$770,000 for the quarter  ended March 31, 2003 compared to $574,000 for the same
quarter in 2002. The increase in the Bank's  non-interest  expense was primarily
due to a $129,000 increase in the Bank's compensation and benefits mostly due to
increased  personnel needed for the new branch office, an increase in the office
occupancy and equipment expense of $46,000,  and an increase of $21,000 in other
expenses.  The  category  of  non-interest  expense  classified  as  "Other"  is
comprised  of  expenses   related  to   advertising,   fees  charged  by  banks,
loan-processing

                                       7
<PAGE>

fees, NOW expenses, costs related to supplies and various professional fees. For
the six months ended March 31, 2003 non-interest  expenses increased by $293,000
as compared to the same period in 2002,  the  increase was due to an increase of
$193,000 in compensation and benefits, $59,000 in office occupancy and equipment
and a $40,000  increase in other  expenses.  The  increase in  compensation  and
benefits is mostly due to establishing the Bank's commercial loan department and
the new branch office.

     Income Tax Expense  Income tax expense  increased by $17,000 to $69,000 for
the quarter ended March 31, 2003 compared to $52,000 for the quarter ended March
31,  2002.  The increase was  attributable  to the increase in pretax  income of
$23,000 and to the  elimination  of the 3% New Jersey tax rate,  which  formerly
applied to thrift institutions  located in New Jersey. This Savings Institutions
Tax Rate was  eliminated in July 2002 and replaced by the 9% Corporate Tax Rate.
For the six months ended March 31, 2003 income tax expense  increased by $96,000
to $163,000 from $67,000 the prior year.

Liquidity and Capital Resources

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


     The Bank'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 Bank 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 Bank's  operating  activities (the cash effects of
transactions  that  enter  into the Bank's  determination  of net  income  e.g.,
non-cash items,  amortization and  depreciation,  provision for loan losses) for
the six months  ended March 31,  2003 was  $409,000,  an  increase of  $147,000,
compared to the same period in 2002.  The increase in 2003 was  primarily due to
the  increase net income for the six months ended March 31, 2003 of $109,000 and
the change in accrued interest receivable  partially offset by a change in other
accrued liabilities.

     Net cash used by the Bank's investing activities (i.e., cash disbursements,
primarily   for  the   purchase  of  the  Bank's   investment   securities   and
mortgage-backed securities portfolios and the Bank's loan portfolio) for the six
months ended March 31, 2003  totaled $2.7 million  compared to a use of funds of
$10.8 million for the same period in 2002. The difference is  attributable to an
increase in loans receivable net, of $675,000 in 2003 compared to an increase of
$8.0 million in 2002 and purchases of securities net of redemptions and sales of
$1.7 million in 2003 compared to 2.2 million in 2002.

                                       8
<PAGE>

     Net cash  provided the Bank's  financing  activities  (i.e.,  cash receipts
primarily from net increases in deposits and net increases in FHLB advances) for
the six months ended March 31, 2003, totaled $2.9 million,  compared to net cash
provided by  financing  activities  of $6.0 million for the same period in 2002.
The  decrease is  attributable  to a net increase in deposits of $3.0 million in
2003, versus an increase of $7.5 million in 2002.

     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  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,  2003,  with  tangible,  core and risk based  capital
ratios of 6.68%, 6.68% and 13.35%, respectively.

Item 3.  Controls and Procedures

     (a)  Evaluation  of  disclosure  controls  and  procedures.  Based on their
evaluation  as of a date  within 90 days of the  filing  date of this  quarterly
report  on  Form  10-QSB,  the  Registrant's  principal  executive  officer  and
principal  financial  officer have  concluded that the  Registrant's  disclosure
controls and procedures (as defined in Rules  13a-14(c) and 15d-14(c)  under the
Securities  Exchange Act of 1934 (the  "Exchange  Act")) 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 controls.  There were no significant changes in the
Registrant's  internal  controls or in other  factors  that could  significantly
affect these controls subsequent to the date of their evaluation,  including any
corrective  actions  with  regard  to  significant   deficiencies  and  material
weaknesses.

                                       9
<PAGE>

                           PART II. OTHER INFORMATION


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

         The Registrant was not engaged in any material legal proceedings during
         the quarter  ended  March 31,  2003.  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
         ---------------------------------------------------

         The  annual  meeting of  stockholders  of the  Registrant  was held  on
         February  18,  2003,  and  the  following  matters  were  voted  on  by
         stockholders:

         Election of Directors             FOR              WITHHOLD
         ---------------------           -------            --------
           Edgar N. Peppler              315,512              300
           Gary N. Pelehaty              315,812               --

         Ratification of the Appointment of Auditor     FOR    AGAINST   ABSTAIN
         ------------------------------------------   -------  -------   -------
                                                      314,832    --        980

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

         Not applicable.

Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------
         (a) Exhibits:

             99.1     Certification pursuant to 18 U.S.C.ss.1350.

         (b) Current  Reports on Form 8-K filed  during the quarter  ended March
             31, 2003:

             None.


                                       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: April 30, 2003            By: /s/ Gary N. Pelehaty
                                    --------------------------------------------
                                    Gary N. Pelehaty
                                    President and Chief Executive Officer
                                    (Principal Executive Officer)




Date: April 30, 2003            By: /s/ Charles Alessi
                                    --------------------------------------------
                                    Charles Alessi
                                    Vice President, Chief Financial Officer,
                                    Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)




                                       11

<PAGE>

                            SECTION 302 CERTIFICATION

        I, Gary N. Pelehaty, President and Chief Executive Officer, certify
        that:

1.      I have  reviewed  this  quarterly  report on Form  10-QSB of  Farnsworth
        Bancorp, Inc.;

2.      Based on my knowledge, this quarterly report does not contain any untrue
        statement of a material fact or omit to state a material fact  necessary
        to make the statements made, in light of the  circumstances  under which
        such  statements  were made, not  misleading  with respect to the period
        covered by this quarterly report;

3.      Based on my knowledge,  the financial  statements,  and other  financial
        information  included in this  quarterly  report,  fairly present in all
        material  respects the financial  condition,  results of operations  and
        cash flows of the  registrant  as of, and for, the periods  presented in
        this quarterly report;

4.      The  registrant's  other  certifying  officer and I are  responsible for
        establishing  and  maintaining  disclosure  controls and  procedures (as
        defined in Exchange Act Rules 13a-14 and 15d-14) for the  registrant and
        have:

        (a)     designed such disclosure  controls and procedures to ensure that
                material information  relating to the registrant,  including its
                consolidated subsidiaries,  is made known to us by others within
                those  entities,  particularly  during  the period in which this
                quarterly report is being prepared;

        (b)     evaluated  the  effectiveness  of  the  registrant's  disclosure
                controls and procedures as of a date within 90 days prior to the
                filing date of this quarterly  report (the  "Evaluation  Date");
                and

        (c)     presented in this  quarterly  report our  conclusions  about the
                effectiveness of the disclosure controls and procedures based on
                our evaluation as of the Evaluation Date;

5.      The registrant's other certifying officer and I have disclosed, based on
        our most recent evaluation,  to the registrant's  auditors and the audit
        committee of registrant's  board of directors (or persons performing the
        equivalent functions):

        (a)     all  significant  deficiencies  in the  design or  operation  of
                internal  controls which could adversely affect the registrant's
                ability to record, process,  summarize and report financial data
                and have identified for the  registrant's  auditors any material
                weaknesses in internal controls; and

        (b)     any fraud, whether or not material,  that involves management or
                other employees who have a significant  role in the registrant's
                internal controls; and

6.      The registrant's  other certifying  officer and I have indicated in this
        quarterly  report  whether  there were  significant  changes in internal
        controls or in other factors that could  significantly  affect  internal
        controls subsequent to the date of our most recent evaluation, including
        any  corrective  actions  with regard to  significant  deficiencies  and
        material weaknesses.


                                      /s/ Gary N. Pelehaty
                                      --------------------------------------
Date: April 30, 2003                  Gary N. Pelehaty
                                      President and Chief Executive Officer


                                       12

<PAGE>

                          SECTION 302 CERTIFICATION

        I, Charles Alessi, Vice President and Chief Financial Officer, certify
        that:

1.      I have  reviewed  this  quarterly  report on Form  10-QSB of  Farnsworth
        Bancorp, Inc.;

2.      Based on my knowledge, this quarterly report does not contain any untrue
        statement of a material fact or omit to state a material fact  necessary
        to make the statements made, in light of the  circumstances  under which
        such  statements  were made, not  misleading  with respect to the period
        covered by this quarterly report;

3.      Based on my knowledge,  the financial  statements,  and other  financial
        information  included in this  quarterly  report,  fairly present in all
        material  respects the financial  condition,  results of operations  and
        cash flows of the  registrant  as of, and for, the periods  presented in
        this quarterly report;

4.      The  registrant's  other  certifying  officer and I are  responsible for
        establishing  and  maintaining  disclosure  controls and  procedures (as
        defined in Exchange Act Rules 13a-14 and 15d-14) for the  registrant and
        have:

        (a)     designed such disclosure  controls and procedures to ensure that
                material information  relating to the registrant,  including its
                consolidated subsidiaries,  is made known to us by others within
                those  entities,  particularly  during  the period in which this
                quarterly report is being prepared;

        (b)     evaluated  the  effectiveness  of  the  registrant's  disclosure
                controls and procedures as of a date within 90 days prior to the
                filing date of this quarterly  report (the  "Evaluation  Date");
                and

        (c)     presented in this  quarterly  report our  conclusions  about the
                effectiveness of the disclosure controls and procedures based on
                our evaluation as of the Evaluation Date;

5.      The registrant's other certifying officer and I have disclosed, based on
        our most recent evaluation,  to the registrant's  auditors and the audit
        committee of registrant's  board of directors (or persons performing the
        equivalent functions):

        (a)     all  significant  deficiencies  in the  design or  operation  of
                internal  controls which could adversely affect the registrant's
                ability to record, process,  summarize and report financial data
                and have identified for the  registrant's  auditors any material
                weaknesses in internal controls; and

        (b)     any fraud, whether or not material,  that involves management or
                other employees who have a significant  role in the registrant's
                internal controls; and

6.      The registrant's  other certifying  officer and I have indicated in this
        quarterly  report  whether  there were  significant  changes in internal
        controls or in other factors that could  significantly  affect  internal
        controls subsequent to the date of our most recent evaluation, including
        any  corrective  actions  with regard to  significant  deficiencies  and
        material weaknesses.


                                      /s/ Charles Alessi
                                      ------------------------------------------
Date: April 30, 2003                  Charles Alessi
                                      Vice President and Chief Financial Officer


                                       13