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, 2005
                                      --------------

                                       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 30, 2005: 650,311

            Transitional Small Business Disclosure Format (check one)

                       YES              NO  X
                           ---             ---

<PAGE>

                                    Contents



PART I - FINANCIAL INFORMATION                                           Page(s)
                                                                         -------

Item 1.  Financial Statements

         Consolidated Statements of Financial Condition at March 31, 2005
         (unaudited) and September 30, 2004 (audited)..........................1

         Consolidated Statements of Income and Comprehensive Income for the
         three and six months ended March 31, 2005 and 2004 (unaudited)........2

         Consolidated  Statements  of Cash Flows for the six months  ended
         March 31, 2005 and 2004 (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.  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

<PAGE>

                    FARNSWORTH BANCORP INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                               MARCH 31,       SEPTEMBER 30,
                                                                 2005             2004
                                                             -------------    -------------
<S>                                                        <C>              <C>
ASSETS                                                         (UNAUDITED)        (AUDITED)

Cash and due from banks                                      $   6,046,567    $   6,009,330
Securities available for sale                                   20,118,758       19,288,779
Securities held to maturity                                      1,488,232          261,301
Loans receivable, net                                           68,826,848       66,502,369
Accrued interest receivable                                        435,697          448,194
Federal Home Loan Bank of New York (FHLB) stock
  at cost substantially restricted                                 490,200          490,200
Deferred income taxes                                              412,716          137,719
Premises and equipment                                           2,254,219        2,340,641
Other assets                                                       132,830          126,650
                                                             -------------    -------------
         Total assets                                        $ 100,206,067    $  95,605,183
                                                             =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                     $  89,701,093    $  86,825,805
Borrowings from FHLB                                               733,499          810,013
Advances by borrowers for taxes and insurance                      455,609          373,531
Accrued income taxes                                               150,992          123,102
Accrued interest payable                                            72,331           63,219
Accounts payable and other accrued
  expenses                                                         103,827          146,039
                                                             -------------    -------------
         Total liabilities                                      91,217,351       88,341,709
                                                             -------------    -------------
Preferred stock $.10 par value, 1,000,000
  shares authorized; none issued and
  outstanding
Common stock $.10 par value, 5,000,000 shares authorized;
  662,693 and 542,666 shares issued, at March 31, 2005
  and September 30, 2004  respectively; shares outstanding
  650,311 and 530,284 for 2005 and 2004, respectively               66,270           54,267
Additional paid in capital                                       8,481,669        6,515,350
Retained earnings substantially restricted                       1,252,821        1,068,643
Treasury stock at cost 12,382 shares                              (120,658)        (120,658)
Common stock aquired by
 employee stock ownership plan (ESOP)                             (263,826)        (113,694)
Common stock aquired by restricted stock plan                      (42,231)         (55,100)
Accumulated other comprehensive income , unrealized
 depreciation on available for sale securities,
 net of taxes                                                     (385,329)         (85,334)
                                                             -------------    -------------
         Total stockholders' equity                              8,988,716        7,263,474
                                                             -------------    -------------
         Total liabilities and
          stockholders' equity                               $ 100,206,067    $  95,605,183
                                                             =============    =============
</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
                                                 2005           2004           2005           2004
                                             -----------    -----------    -----------    -----------
<S>                                        <C>            <C>            <C>            <C>
Interest income:
  Loans receivable                           $ 1,146,285    $ 1,127,415    $ 2,289,906    $ 2,208,788
  Securities                                     217,362        189,116        423,405        383,073
  Federal funds sold                              34,948         14,566         69,977         29,385
                                             -----------    -----------    -----------    -----------
        Total interest income                  1,398,595      1,331,097      2,783,288      2,621,246
                                             -----------    -----------    -----------    -----------
Interest expense:
  Deposits                                       446,646        366,898        872,951        733,889
  Federal Home Loan Bank advances                 11,031         13,250         22,630         27,534
                                             -----------    -----------    -----------    -----------
        Total interest expense                   457,677        380,148        895,581        761,423
                                             -----------    -----------    -----------    -----------
Net interest income                              940,918        950,949      1,887,707      1,859,823

Provision for loan losses                         43,289         63,000         66,891         83,000
                                             -----------    -----------    -----------    -----------
        Net interest income after
          provision for loan losses              897,629        887,949      1,820,816      1,776,823
                                             -----------    -----------    -----------    -----------
Noninterest income:
  Fees and other service charges                  68,171         83,553        145,622        149,379
  Net realized gain on available for sale:
   Loans                                           4,222         11,514         11,759         19,967
   Securities                                      5,091         28,022          8,308         47,609
                                             -----------    -----------    -----------    -----------
        Total noninterest income                  77,484        123,089        165,689        216,955
                                             -----------    -----------    -----------    -----------
Noninterest expense:
  Compensation and benefits                      429,577        426,490        898,615        885,259
  Occupancy and equipment                        143,611        129,634        275,681        252,377
  Professional fees                               56,347         38,175        111,172         91,124
  Servive fees                                    45,768         40,577         87,719         84,682
  Other                                          132,540        135,041        251,825        256,715
                                             -----------    -----------    -----------    -----------
        Total noninterest expense                807,843        769,917      1,625,012      1,570,157
                                             -----------    -----------    -----------    -----------
Income  before provision for income
  tax expense                                    167,270        241,121        361,493        423,621
Provision for income tax expense                  63,000         91,700        144,800        164,700
                                             -----------    -----------    -----------    -----------
        Net income                               104,270        149,421        216,693        258,921

Other Comprehensive Income, net of taxes
  Unrealized gain (loss) on Securities
   Available for Sale                           (195,384)       177,569       (295,010)       119,691
  Reclassification adjustments for gains
    included in net income                        (3,055)       (16,813)        (4,985)       (28,600)
                                             -----------    -----------    -----------    -----------
Comprehensive (loss) income                  $   (94,169)   $   310,177    $   (83,302)   $   350,012
                                             ===========    ===========    ===========    ===========
Net income  per common share:
  Basic                                      $      0.17    $      0.31    $      0.36    $      0.53
  Diluted                                    $      0.16    $      0.28    $      0.34    $      0.49

Weighted average number of shares
outstanding during the period:
 basic                                           621,317        486,761        598,235        486,761
 diluted                                         658,918        535,082        628,288        527,721
</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
                                                              2005           2004
                                                        ------------    ------------
<S>                                                   <C>             <C>
Cash flows from operating activities:
  Net income                                            $    216,693    $    258,921
                                                        ------------    ------------
  Adjustments to reconcile net income
   to net cash provided by operating activities
    Depreciation and amortization                             96,044          75,974
    Stock compensation                                        55,368          40,740
    Provision for loan losses                                 66,891          83,000
    Net gain on sale of AFS securities                        (8,308)        (47,609)
    Net gain loans sold                                      (11,759)        (19,967)
 Change in:
   Accrued interest receivable                                12,497         (39,105)
   Other assets                                               (6,180)          3,421
   Advances from borrowers                                    82,078          55,659
   Accrued and deferred income taxes                         (47,110)        (72,920)
   Accrued interest payable                                    5,498           3,590
   Other accrued liabilities                                 (38,597)        (37,949)
                                                        ------------    ------------
         Total adjustments                                   206,422          44,834
                                                        ------------    ------------
         Net cash provided by operating
          activities                                         423,115         303,755
                                                        ------------    ------------

Cash flows from investing activities:

  Net increase in loans receivable                        (2,391,370)     (3,799,232)
  Redemption of securities, held to maturity                  24,457         115,153
  Redemption of securities, available for sale             1,735,667         558,123
  Purchase of securities, held to maturity                (1,251,688)              -
  Proceeds from sale of securities available for sale      7,391,157       6,716,257
  Purchase of securities, available for sale net         (10,436,429)     (8,946,843)
  Purchase of premises and equipment                          (9,622)       (111,614)
                                                        ------------    ------------

         Net cash used in investing
           activities                                     (4,937,828)     (5,468,156)
                                                        ------------    ------------
Cash flows from financing activities:
  Net increase  in deposits                                2,875,288       3,928,242
  Repayment of  Federal Home Loan Bank Borrowings            (76,514)        (72,132)
  Proceeds from sale of stock, net                         1,785,691
  Dividends paid                                             (32,515)        (21,652)
                                                        ------------    ------------
         Net cash provided by financing
           activities                                      4,551,950       3,834,458
                                                        ------------    ------------
Net change in cash                                            37,237      (1,329,943)

Cash at beginning of period                                6,009,330      11,539,886
                                                        ------------    ------------
Cash at end of period                                   $  6,046,567    $ 10,209,943
                                                        ============    ============
Supplemental disclosure:
  Cash paid during the period for:
    Interest                                            $    890,083    $    757,833
                                                        ============    ============
    Income taxes                                        $    135,000    $    241,250
                                                        ============    ============
Non cash items
  Stock dividend                                        $          -    $  1,750,589
                                                        ============    ============
  Common stock aquired by Restricted Stock Plan         $     20,131    $    132,200
                                                        ============    ============
  Treasury Stock                                        $          -    $    (64,514)
                                                        ============    ============
  Additional paid in capital                            $          -    $    (67,686)
                                                        ============    ============
  Unrealized (loss) gain  on securities available
    for sale, net of deferred income taxes              $   (299,995)   $     91,091
                                                        ============    ============
   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,
2005, the  Consolidated  Statements of Income and  Comprehensive  Income for the
three and six  months  ended  March  31,  2005 and  2004,  and the  Consolidated
Statements  of Cash Flows for the six months ended March 31, 2005 and 2004.  The
results of operations  for the three and six months ended March 31, 2005 are not
necessarily  indicative  of results  that may be  expected  for the entire  year
ending September 30, 2005, or for any other period.  The accompanying  unaudited
consolidated interim financial statements should be read in conjunction with the
Company's September 30, 2004 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, 2004.

         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.

         The Board of  Directors  declared a 20% stock  dividend  in the quarter
ended March 31, 2004.  Basic and diluted  earnings per share have been  restated
for all periods presented to reflect the stock dividend.

         On November 5, 2004,  the Company  completed the private  offering (the
"Offering") of 120,027 shares of its common stock, par value $.10 per share, for
an aggregate sales price of $2,070,466  ($17.25 per share).  The Company did not
use an  underwriter  in  connection  with the  Offering.  The  Offering  was not
registered  with the  Securities  and  Exchange  Commission  ("SEC")  under  the
Securities  Act of 1933,  as amended  (the  "Securities  Act"),  pursuant  to an
exemption from registration under Rule 505 of Regulation D promulgated under the
Securities Act. The Offering qualified for the exemption from registration under
Rule 505 of Regulation D in that the aggregate  offering  price was less than $5
million,  there  were  fewer  than  35  "unaccredited  investors"  who  actually
purchased  stock  in the  Offering  and the  Company  has  satisfied  the  other
applicable terms and conditions of Rules 501, 502 and 503 of Regulation D.

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.

                                       4

<PAGE>

         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.
..

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>
                                        2005                           2004
                                       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      $104,270   650,311          $ 149,421    520,959

ESOP shares, not
committed to be released               (27,508)                      (21,805)

RSP shares                              (1,486)                      (12,393)
                            ---------------------------- ----------------------------
Basic earnings per share     104,270   621,317    $0.17  $149,421    486,761   $ 0.31

Common stock equivalents                37,601                        48,321
                            ---------------------------- ----------------------------
Diluted earnings per share  $104,270   658,918    $0.16  $149,421    535,082   $ 0.28
                            ========   =======    =====  ========    =======   ======
</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  increased $4.6 million or 4.8% to $100.2 million at March
31, 2005 from $95.6  million at September  30, 2004.  The increase was primarily
attributable  to a $2.1 million  increase in the Bank's  available  for sale and
held to maturity  securities  purchased  in order to  supplement  lending and an
increase of $2.3 million in loans receivable net primarily due to an increase in
the commercial real estate  portfolio.  The Bank's total  liabilities  increased
$2.9 million or 3.2%,  to $91.2  million at March 31, 2004 from $88.3 million at
September 30, 2004. The increase in total liabilities was primarily attributable
to a $2.9 million increase in deposits, due to an increase in advertising.

         Stockholders'  equity increased $1.7 million to $9.0 million or 8.9% of
total  assets at March 31,  2005 as  compared  to $7.3  million or 7.6% of total
assets at September 30, 2004. The increase in stockholders'  equity is primarily
attributed to the sale of $2.1 million of common stock in the Offering,  and net
income of $217,000, partially offset by addition of ESOP and RSP shares acquired
of $193,000,  a change in the  unrealized  depreciation  on  available  for sale
securities net of taxes of $300,000 and dividends paid of $33,000.

                                       6

<PAGE>

Results of Operations

         Net Income.  The Company's net income decreased $45,000 for the quarter
ended March 31, 2005 to $104,000  from  $149,000 for the quarter ended March 31,
2004. The decrease in net income was  attributable to a decrease in non-interest
income of $46,000 and an increase in non-interest  expense of $38,000  partially
offset by an increase in net interest income after provisions for loan losses of
$10,000 and a decrease in  provision  for income  taxes of $29,000.  For the six
months ended March 31, 2005, net income  decreased  $42,000 to $217,000 from net
income of $259,000 for the same period in 2004.

         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  $10,000
or 1.1%,  to  $898,000  for the  quarter  ended  March 31,  2005 as  compared to
$888,000 for the quarter  ended March 31, 2004.  The increase  resulted  from an
increase in interest  income of $68,000 and a decrease in the provision for loan
losses of  $20,000  partially  offset by an  increase  in  interest  expense  of
$78,000.  Net interest income after provision for loan losses increased  $44,000
for the six months ended March 31, 2005 compared to the same period in 2004.

         Provision  for Loan Losses.  Provision  for loan losses was $43,000 for
the three months  ended March 31, 2005  compared to $63,000 for the three months
ended March 31,  2004.  The decrease  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, 2005 the provision for
loan losses was $67,000 compared to $83,000 for the same period in 2004.

         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 decreased $46,000 or 37.0% to
$77,000 for the quarter  ended March 31, 2005 from $123,000 for the same quarter
in 2004. This decrease was partially due to a decrease in fees and other charges
of $16,000 and a decrease in sale of securities and loans  available for sale of
$31,000  compared to the same period in 2004. For the six months ended March 31,
2005, non-interest income decreased $51,000 compared to the same period in 2004.

         Non-Interest  Expense.  Non-interest  expense  increased  by $38,000 to
$808,000  for the quarter  ended March 31,  2005,  compared to $770,000  for the
quarter  ended March 31, 2004.  The increase was primarily due to an increase in
office occupancy and equipment expenses of $14,000, professional fees of $18,000
and service fees of $5,000. For the six months ended March 31, 2005 non-interest
expense  increased by $55,000  compared to the same period in 2004. The increase
in the six months was due to an  increase  of  $23,000 in office  occupancy  and
equipment and an increase of $20,000 in professional fees.

         Income Tax Expense.  Income tax expense decreased by $29,000 to $63,000
for the quarter  ended March 31, 2005  compared to $92,000 for the quarter ended
March 31, 2004. The decrease was  attributable  to the decrease in pretax income
of  $74,000.  For the six  months  ended  March 31,  2005,  income  tax  expense
decreased by $20,000 due to the decrease in pretax income.

                                       7

<PAGE>

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,  2005 was  $423,000,  an  increase of  $119,000,
compared to the same period in 2004.  The increase in 2005 was  primarily due to
the  change in gain on sale of  securities  and  loans of  $48,000  and  accrued
interest receivable of $51,000,  partially offset by a decrease in net income of
$42,000.

         Net  cash  used  by  the  Bank'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, 2005 totaled $4.9 million  compared to $5.5 million for the same
period in 2004. The use of funds is mainly  attributable to an increase in loans
receivable,  net of $2.4 million and an increase in  investments of $2.5 million
of offering expenses.

         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, 2005, totaled $4.6 million,  compared to net cash
provided by  financing  activities  of $3.8 million for the same period in 2004.
The increase is mainly attributable to proceeds from the sale of common stock of
$1.8 million net.

         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, 2005, with tangible,  core and
risk based capital ratios of 7.93%, 7.93% and 14.16%, respectively.

                                       8

<PAGE>

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 Company was not engaged in any material  legal  proceedings  during
         the quarter ended March 31, 2005.  From time to time,  the Company 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.  Unregistered Sales of Equity 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 Company was held on February
         22, 2005, and the following matters were voted on by stockholders:

         Election of Directors by a majority of votes
         --------------------------------------------
                  John J. Maley
                  Coby M. Frier
                  George G. Aaronson, Jr.
                  Joseph H. Kelly
                  G. Edward Koenig, Jr.

         Ratification of the Appointment of Auditor
         ------------------------------------------
                  Kronick, Kalada, Berdy & Co.

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

         Not applicable.

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

         (a) Exhibits:

             31  Certifications pursuant to section 302 of Sarbanes-Oxley Act of
                 2002

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

                                       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 6, 2005              By:  /s/Gary N. Pelehaty
                                    --------------------------------------------
                                    Gary N. Pelehaty
                                    President and Chief Executive Officer
                                    (Principal Executive Officer)
                                    (Duly Authorized Officer)



Date: May 6, 2005              By:  /s/Charles Alessi
                                    --------------------------------------------
                                    Charles Alessi
                                    Vice President, Chief Financial Officer
                                    Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)


                                       11