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 December 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                               (I.R.S. Employer
Incorporation 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 February 2, 2004: 433,031
                                                                       -------

            Transitional Small Business Disclosure Format (check one)

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


<PAGE>



                                    Contents
                                    --------



PART 1 - FINANCIAL INFORMATION                                           Page(s)
                                                                         -------

Item 1.  Financial Statements................................................

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

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

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

         Notes to Financial Statements......................................4

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

Item 3.  Controls and Procedures............................................8

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings..................................................9

Item 2.  Changes in Securities and Use of Proceeds..........................9

Item 3.  Defaults upon Senior Securities....................................9

Item 4.  Submission of Matters to a Vote of Security Holders................9

Item 5.  Other Information..................................................9

Item 6.  Exhibits and Reports on Form 8-K...................................9

Signatures..................................................................10

<PAGE>

                    FARNSWORTH BANCORP INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION



<TABLE>
<CAPTION>

                                                            DECEMBER 31     SEPTEMBER 30,
                                                               2003             2003
                                                            ------------    -------------
ASSETS                                                      (UNAUDITED)      (AUDITED)

<S>                                                       <C>             <C>
Cash and due from banks                                     $  8,740,899    $ 11,539,886
Securities available for sale                                 16,188,835      15,003,778
Securities held to maturity                                      390,678         461,443
Loans receivable, net                                         63,498,114      61,462,266
Accrued interest receivable                                      341,695         415,259
Federal Home Loan Bank of New York (FHLB) stock
  at cost substantially restricted                               507,400         507,400
Deferred income taxes                                            227,271         125,667
Premises and equipment                                         2,243,713       2,232,650
Other assets                                                      84,876          81,219
                                                            ------------    ------------

         Total assets                                       $ 92,223,481    $ 91,829,568
                                                            ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                    $ 84,033,981    $ 83,713,971
Borrowings from FHLB                                             920,636         956,436
Advances by borrowers for taxes and insurance                    340,349         328,379
Accrued income taxes                                             180,908          97,788
Accrued interest payable                                          18,449          23,122
Accounts payable and other accrued
  expenses                                                       136,273         146,405
                                                            ------------    ------------

         Total liabilities                                    85,630,596      85,266,101
                                                            ------------    ------------

Preferred stock $.10 par value, 1,000,000
  shares authorized; none issued and
  outstanding
Common stock $.10 par value, 5,000,000 shares
  authorized; 452,023 and 379,858 shares issued,
  for 2003 and 2002 respectively; shares outstanding
  433,031 and 360,866 for 2003 and 2002, respectively             45,202          45,202
Additional paid in capital                                     4,688,162       4,688,162
Retained earnings substantially restricted                     2,347,889       2,260,041
Treasury stock at cost 18,992 shares                            (185,172)       (185,172)
Common stock aquired by
 employee stock ownership plan (ESOP)                           (136,464)       (144,054)
Common stock aquired by restricted stock plan                         --          (3,645)
Accumulated other comprehensive income, unrealized
 depreciation on available for sale securities,
 net of taxes                                                   (166,732)        (97,067)
                                                            ------------    ------------

         Total stockholders' equity                            6,592,885       6,563,467
                                                            ------------    ------------

         Total liabilities and
          stockholders' equity                              $ 92,223,481    $ 91,829,568
                                                            ============    ============
</TABLE>



                        SEE NOTES TO FINANCIAL STATEMENTS


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

                                                 THREE MONTHS ENDED
                                                     DECEMBER 31
                                                 2003           2002
                                             -----------    -----------
Interest income:
  Loans receivable                           $ 1,081,373    $ 1,099,890
  Securities                                     193,957        190,545
  Federal funds sold                              14,819         19,240
                                             -----------    -----------
        Total interest income                  1,290,149      1,309,675
                                             -----------    -----------
Interest expense:
  Deposits                                       366,991        457,525
  Federal Home Loan Bank advances                 14,284         16,344
                                             -----------    -----------
        Total interest expense                   381,275        473,869
                                             -----------    -----------
Net interest income                              908,874        835,806

Provision for loan losses                         20,000         30,000
                                             -----------    -----------
        Net interest income after
          provision for loan losses              888,874        805,806
                                             -----------    -----------
Noninterest income:
  Fees and other service charges                  65,826         74,359
  Net realized gain on available for sale:
    Loans                                          8,453         18,633
    Securities                                    19,587         10,548
                                             -----------    -----------
        Total noninterest income                  93,866        103,540
                                             -----------    -----------
Noninterest expense:
  Compensation and benefits                      458,769        352,644
  Occupancy and equipment                        122,743         99,709
  Federal insurance premiums and
    assessments                                    3,030          2,969
  Other                                          215,698        212,628
                                             -----------    -----------
        Total noninterest expense                800,240        667,950
                                             -----------    -----------
Income  before provision for income
  tax expense                                    182,500        241,396
Provision for income tax expense                  73,000         93,700
                                             -----------    -----------
        Net income                               109,500        147,696

Other Comprehensive Income, net of taxes
  Unrealized loss on Securities
   Available for Sale                            (57,878)       (16,229)
  Reclassification adjustments for gains
   included in net income                        (11,787)       (10,548)
                                             -----------    -----------

Comprehensive Income                         $    39,835    $   120,919
                                             ===========    ===========

Net income  per common share:
  Basic                                           $ 0.27         $ 0.37
  Diluted                                         $ 0.25         $ 0.36

Weighted average number of shares
 outstanding during the period:
  Basic                                          410,934        402,540
  Diluted                                        432,139        410,844


                        SEE NOTES TO FINANCIAL STATEMENTS

                                       2
<PAGE>

                    FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                      THREE MONTHS ENDED DECEMBER 31
                                                            2003            2002
                                                        ------------    ------------
<S>                                                   <C>             <C>
Cash flows from operating activities:
  Net income                                            $    109,500    $    147,696
                                                        ------------    ------------
  Adjustments to reconcile net income
   to net cash provided by operating activities:
    Depreciation and amortization                             37,723          32,100
    Stock compensation                                        20,370          20,372
    Provision for loan losses                                 20,000          30,000
    Net gain on sale of AFS securities                       (19,587)        (10,548)
   Change in:
     Accrued interest receivable                              73,564          (4,728)
     Other assets                                             (3,657)         11,374
     Advances from borrowers                                  11,970         (40,759)
     Accrued and deferred income taxes                       (27,959)         45,716
     Accrued interest payable                                 (4,673)         (9,492)
     Other accrued liabilities                               (19,267)        (14,955)
                                                        ------------    ------------

         Total adjustments                                    88,484          59,080
                                                        ------------    ------------

         Net cash provided by operating
          activities                                         197,984         206,776
                                                        ------------    ------------

Cash flows from investing activities:

  Net increase in loans receivable                        (2,055,848)     (1,000,023)
  Redemption of securities, held to maturity                  70,765         185,559
  Redemption of securities, available for sale               230,276       2,223,872
  Proceeds from sale of securities available for sale      3,498,916       2,412,493
  Purchase of securities, available for sale net          (4,954,852)     (1,333,786)
  Purchase of premises and equipment                         (48,786)       (141,453)
                                                        ------------    ------------

         Net cash (used in) provided by investing
           activities                                     (3,259,529)      2,346,662
                                                        ------------    ------------


Cash flows from financing activities:
  Net increase (decrease) in deposits                        320,010      (2,089,106)
  Repayment of  Federal Home Loan Bank Borrowings            (35,800)        (33,746)
  Dividends paid                                             (21,652)        (18,045)
                                                        ------------    ------------

         Net increase (decrease) in cash provided by
           financing activities                              262,558      (2,140,897)
                                                        ------------    ------------

Net (decrease) increase in cash                           (2,798,987)        412,541

Cash at beginning of period                               11,539,886       9,161,801
                                                        ------------    ------------
Cash at end of period                                   $  8,740,899    $  9,574,342
                                                        ============    ============

Supplemental disclosure:
  Cash paid during the period for:
    Interest                                            $    385,948    $    483,361
                                                        ============    ============
    Income taxes                                        $     45,000    $     55,757
                                                        ============    ============

  Unrealized loss  on securities available
    for sale, net of deferred income taxes              $    (69,665)   $    (16,229)
                                                        ============    ============
</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 December 31,
2003, the  Consolidated  Statements of Income and  Comprehensive  Income for the
three months ended December 31, 2003 and 2002, and the  Consolidated  Statements
of Cash Flows for the three months ended December 31, 2003 and 2002. The results
of operations for the three months ended  December 31, 2003 are not  necessarily
indicative of results that may be expected for the entire year ending  September
30, 2004,  or for any other  period.  The  accompanying  unaudited  consolidated
interim  financial  statements  should be read in conjunction with the Company's
September  30,  2003  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, 2003.

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 fiscal year 2003. Basic
and diluted  earnings per share have been restated for all periods  presented to
reflect the stock dividend.

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

The Company is a unitary  savings and loan holding  company.  The Bank  operates
three  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.
In December 2000, the Company began offering  brokerage and investment  advisory
services and insurance  services to the general public through Peoples Financial
Services,  Inc.,  a  subsidiary  organized  for the  sale of  mutual  funds  and
insurance through a third party networking agreement.


                                       4

<PAGE>


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

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

<TABLE>
<CAPTION>
                                        For the three months ended December 31
                                        --------------------------------------
                                         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       $109,500    433,031                $147,696    433,031

ESOP Shares, not
committed to be released                 (18,237)                           (21,833)

RSP Shares                                (3,860)                            (8,616)

                             -----------------------------      -----------------------------
Basic earnings per share      109,500    410,934     $0.27       147,696    402,532     $0.37

Common Stock equivalents                  21,205                              8,304
                             -----------------------------      -----------------------------

Diluted earnings per share   $109,500    432,139     $0.25      $147,696    410,836     $0.36
                             ===================                ===================
</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  intend 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.

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.

                                       5
<PAGE>

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  $400,000 or .43% to $92.2  million at December 31,
2003 from $91.8  million at  September  30, 2003.  The  increase  was  primarily
attributable to an increase in loans receivable net of $2.0 million, an increase
in available for sale securities of $1.2 million  partially offset by a decrease
in cash and due  from  banks  of $2.8  million.  The  Bank's  total  liabilities
increased  $365,000 or .43%,  to $85.6  million at December  31, 2003 from $85.2
million at September  30, 2003.  The increase was  primarily  attributable  to a
$320,000 increase in deposits.

     Stockholders'  equity  increased  $36,000 to $6.6  million or 7.2% of total
assets at December 31, 2003, as compared to $6.6 million or 7.1% of total assets
at  September  30,  2003.  The  increase in  stockholders'  equity is  primarily
attributable  to net income of  $110,000  partially  offset by  amortization  of
benefit  plans of  $20,000  and by a change in the  unrealized  depreciation  on
available  for sale  securities  net of taxes of $70,000 and  dividends  paid of
$22,000.

Results of Operations

     Net Income.  The Bank's net income decreased  $38,000 for the quarter ended
December 31, 2003 to $110,000 from  $148,000 for the quarter ended  December 31,
2002. The decrease in net income was  attributable  to an increase  non-interest
expense of $132,000 partially offset by an increase in net interest income after
provisions for loan losses of $83,000 and a decrease in income taxes of $20,000.

     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 receives on its


                                       6

<PAGE>

interest  earning  assets,   primarily  loans,  investment  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  $83,000,  or
10.3%,  to  $889,000  for the  quarter  ended  December  31, 2003 as compared to
$806,000 for the quarter ended December 31, 2002. The increase was primarily due
to a decrease in interest  expense of $93,000  partially offset by a decrease in
interest income of $20,000. The decrease in interest income was partially due to
the lower market interest  rates.  The Bank's cost of funds declined as a result
of  lower  market  interest  rates  in  addition  to a  lower  balance  of  FHLB
borrowings.

     Provision  for Loan Losses.  Provision  for loan losses was $20,000 for the
three months ended  December 31, 2003,  compared to $30,000 for the three months
ended  December 31, 2002.  This decrease was based on the Bank's  lending volume
during the quarter ended December 31, 2003.

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

     Non-Interest  Income.  Non-interest  income  decreased  $10,000  or 9.6% to
$94,000 for the quarter  ended  December  31,  2003 from  $104,000  for the same
quarter in 2002.  The decrease was partially due to a decrease in fees and other
service  charges.  Non-interest  income  for  2003  included  a gain  on sale of
securities available for sale of $20,000 compared to $11,000 for the same period
in 2002 and a gain on sale of loans of $8,000 in 2003 versus $19,000 in 2002.

     Non-Interest  Expense.  Non-interest expense increased $132,000 or 19.8% to
$800,000 for the quarter  ended  December 31, 2003  compared to $668,000 for the
same  quarter in 2002.  The  increase  in the Bank's  non-interest  expense  was
primarily due to an increase of $106,000 in the Bank's compensation and benefits
as well as an increase of $23,000 in occupancy  and equipment and an increase of
$3,000 in other  expenses.  These  increases  were  mostly  attributable  to the
opening  of the new  branch  in  January  2003 as well as  additional  personnel
required to sustain the Bank's  growth.  The  category of  non-interest  expense
classified  as "Other" is comprised  of expenses  related to  advertising,  fees
charged by banks,  loan-processing fees, NOW expenses, costs related to supplies
and various professional fees.

Income Tax Expense.

     Income tax expense  decreased to $73,000 for the quarter ended December 31,
2003 from $94,000 for the same period in 2002. This change of $21,000 was due to
the decrease in net-income for the quarter ended December 31, 2003.

Liquidity and Capital Resources

     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


                                       7
<PAGE>

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 three months ended December 31, 2003 was $198,000, a decrease of $9,000. The
decrease in 2003 was  primarily  attributable  to the  decrease in net income in
2003  of  $38,000   compared  to  December  31,  2002,  as  well  as  additional
depreciation,   partially   offset  by  a  change  in  other  assets  and  other
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
three months ended  December  31,  2003,  totaled $3.2 million  compared to cash
provided by  investing  activities  of $2.3 million for the same period in 2002.
The  change is  attributable  to an  increase  in net loans  receivable  of $1.0
million and  purchase of  available  for sale  securities  of $3.5  million net,
partially  offset by redemptions and proceeds from sale of securities  available
for sale of $1.0 million in 2003 compared to 2002.

     Net cash provided by the Bank's financing  activities  (i.e., cash receipts
primarily from net decreases in deposits and net decreases in FHLB advances) for
the three months ended December 31, 2003, totaled $262,000, compared to net cash
used by financing  activities  of $2.1 million for the same period in 2002.  The
increase  is  attributable  to a net  increase  in  deposits  of  $320,000,  and
repayment  of  borrowings  of $36,000 in 2003,  versus a decrease in deposits of
$2.1 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 December 31, 2003,  with tangible,  core and risk based capital
ratios of 6.51%, 6.51% and 12.24%, respectively.

Item 3.  Controls and Procedures

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

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


                                       8

<PAGE>

                           PART II. OTHER INFORMATION

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

     The Registrant was not engaged in any material legal proceedings during the
quarter ended December 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
------------------------------------------------------------

         None.

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

     (a) Not applicable.

     (b) Not applicable.

Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------

     (a)  Exhibits:

     31   Certification  pursuant  to Section 302 of the  Sarbanes-Oxley  Actf
          of 2002

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

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

          On October 21, 2003, the Registrant filed a Current Report on Form 8-K
          to report the declaration of a cash dividend. (Items 5 and 7)

          On November 18, 2003,  the  Registrant  filed a Current Report on Form
          8-K to report earnings for the quarter and fiscal year ended September
          30, 2003. (Items 7 and 12)


                                       9

<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: February 3, 2004         By:  /s/ Gary N. Pelehaty
                                    --------------------------------------------
                                    Gary N. Pelehaty
                                    President and Chief Executive Officer
                                    (Principal Executive Officer)




Date: February 3, 2004         By:  /s/ Charles Alessi
                                    --------------------------------------------
                                    Charles Alessi
                                    Vice President, Chief Financial Officer,
                                    Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)









                                       10