UNITED STATES
                       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 June 30, 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                              (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 August 1, 2005   650,311
                                                                      -------

            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
         June 30, 2005 (unaudited) and September 30, 2004 (audited)......  1

         Consolidated Statements of Income and Comprehensive Income
         for the three and nine months ended June 30, 2005 and 2004
         (unaudited).....................................................  2

         Consolidated Statements of Cash Flows for the nine months
         ended June 30, 2005 and 2004 (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.........................................  9


PART II - OTHER INFORMATION

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

Item 2.  Unregistered Sales of Equity 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............................................... 10

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

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

Certifications

<PAGE>

                    FARNSWORTH BANCORP INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


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

Cash and due from banks                                $   9,822,281    $   6,009,330
Securities available for sale                             19,135,024       19,288,779
Securities held to maturity                                1,721,550          261,301
Loans receivable, net                                     69,831,972       66,502,369
Accrued interest receivable                                  414,758          448,194
Federal Home Loan Bank of New York (FHLB) stock,
  at cost substantially restricted                           520,200          490,200
Deferred income taxes                                        337,617          137,719
Premises and equipment                                     2,235,533        2,340,641
Other assets                                                 100,022          126,650
                                                       -------------    -------------

         Total assets                                  $ 104,118,957    $  95,605,183
                                                       =============    =============


LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                               $  93,248,863    $  86,825,805
Borrowings from FHLB                                         694,387          810,013
Advances by borrowers for taxes and insurance                455,972          373,531
Accrued income taxes                                         139,908          123,102
Accrued interest payable                                      77,687           63,219
Accounts payable and other accrued
  expenses                                                   148,119          146,039
                                                       -------------    -------------

         Total liabilities                                94,764,936       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
  662,693 and 542,666 shares issued, at
  June 30, 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                 1,309,074        1,068,643
Treasury stock                                              (120,658)        (120,658)
Common stock acquired by
 employee stock ownership plan (ESOP)                       (251,924)        (113,694)
Unissued restricted stock plan shares                        (25,730)         (55,100)
Accumulated other comprehensive loss, unrealized
depreciation on available for sale securities
  net of taxes                                              (104,680)         (85,334)
                                                       -------------    -------------

         Total stockholders' equity                        9,354,021        7,263,474
                                                       -------------    -------------

         Total liabilities and
          stockholders' equity                         $ 104,118,957    $  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            NINE  MONTHS ENDED
                                                     JUNE 30                       JUNE 30
                                               2005           2004           2005           2004
                                            -----------    -----------    -----------    -----------
<S>                                       <C>            <C>            <C>            <C>
Interest income:
  Loans receivable                          $ 1,158,299    $ 1,197,742    $ 3,448,205    $ 3,406,530
  Securities                                    222,702        217,874        646,107        600,947
  Federal funds sold                             48,194         17,877        118,171         47,262
                                            -----------    -----------    -----------    -----------
        Total interest income                 1,429,195      1,433,493      4,212,483      4,054,739
                                            -----------    -----------    -----------    -----------

Interest expense:
  Deposits                                      484,168        367,068      1,357,119      1,100,957
  Federal Home Loan Bank advances                10,456         12,650         33,086         40,184
                                            -----------    -----------    -----------    -----------
        Total interest expense                  494,624        379,718      1,390,205      1,141,141
                                            -----------    -----------    -----------    -----------
Net interest income                             934,571      1,053,775      2,822,278      2,913,598

Provision for loan losses                         8,930         30,000         75,821        113,000
                                            -----------    -----------    -----------    -----------

        Net interest income after
          provision for loan losses             925,641      1,023,775      2,746,457      2,800,598
                                            -----------    -----------    -----------    -----------

Noninterest income:
  Fees and other service charges                 57,473         79,660        203,095        229,039
  Net realized gain on available for sale
   Loans                                          7,838             --         16,146         19,967
   Securities                                     4,162            440         15,921         48,049
                                            -----------    -----------    -----------    -----------
        Total noninterest income                 69,473         80,100        235,162        297,055
                                            -----------    -----------    -----------    -----------

Noninterest expense:
  Compensation and benefits                     464,882        405,524      1,363,497      1,290,783
  Occupancy and equipment                       116,270        113,901        391,951        366,278
  Professional fees                              72,901         45,546        184,073        136,670
  Service fees                                   75,759         71,298        163,478        212,684
  Other                                         113,534        112,604        365,359        312,615
                                            -----------    -----------    -----------    -----------
        Total noninterest expense               843,346        748,873      2,468,358      2,319,030
                                            -----------    -----------    -----------    -----------

Income  before provision for income
  tax expense                                   151,768        355,002        513,261        778,623
Provision for income tax expense                 63,000        150,000        207,800        314,700
                                            -----------    -----------    -----------    -----------
        Net income                               88,768        205,002        305,461        463,923

Other Comprehensive Income, net of taxes
  Unrealized (loss) gain on securities
   available for sale                           283,146       (473,710)        (9,793)       119,691
  Reclassification adjustments for gains
    included in net income                       (2,497)          (264)        (9,553)       (28,829)
                                            -----------    -----------    -----------    -----------

Comprehensive (loss) income                 $   369,417    $  (268,972)   $   286,115    $   554,785
                                            ===========    ===========    ===========    ===========

Net income per common share:
  Basic                                     $      0.14    $      0.41   $       0.52    $      0.95
  Diluted                                   $      0.13    $      0.39   $       0.50    $      0.89

Weighted average number of shares
 outstanding during the period:
 basic                                          621,317        498,645        585,217        490,723
 diluted                                        659,440        531,321        616,969        520,660
</TABLE>

                        SEE NOTES TO FINANCIAL STATEMENTS



                                       2

<PAGE>

                    FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                            NINE MONTHS ENDED JUNE 30

<TABLE>
<CAPTION>
                                                                      2005            2004
                                                                  ------------    ------------
<S>                                                             <C>             <C>
Cash flows from operating activities:
  Net income                                                      $    305,461    $    463,923
                                                                  ------------    ------------
  Adjustments to reconcile net income
   to net cash provided by operating activities
    Depreciation and amortization                                      127,818         116,775
    Stock compensation                                                  83,770          61,110
    Provision for loan losses                                           75,821         113,000
    Net gain on sale of AFS securities                                 (15,921)        (48,049)
    Net gain on loans sold                                             (16,146)        (19,967)
 Change in:
   Accrued interest receivable                                          33,463         (10,911)
   Other assets                                                         26,628             560
   Advances from borrowers                                              82,441          87,715
   Accrued and deferred income taxes                                  (146,194)        (57,137)
   Accrued interest payable                                             14,468          34,237
   Other accrued liabilities                                             2,080           3,304
                                                                  ------------    ------------

         Total adjustments                                             268,228         280,637
                                                                  ------------    ------------

         Net cash provided by operating
          activities                                                   573,689         744,560
                                                                  ------------    ------------

Cash flows from investing activities:

  Net increase in loans receivable                                  (3,405,424)     (3,886,808)
  Redemption of securities, held to maturity                           537,268         147,233
  Redemption of securities, available for sale                       2,208,617       1,162,021
  Purchase of securities, held to maturity                          (1,997,517)
  Proceeds from sale of securities available for sale               10,365,596       6,731,775
  Purchase of securities, available for sale net                   (12,444,661)    (13,207,704)
  Purchase of premises and equipment                                   (22,710)       (201,842)
  (Purchase) Redemption of FHLB stock                                  (30,000)         17,200
                                                                  ------------    ------------

         Net cash used in investing
           activities                                               (4,788,831)     (9,238,125)
                                                                  ------------    ------------


Cash flows from financing activities:
  Net increase  in deposits                                          6,423,058       4,551,504
  Repayment of  Federal Home Loan Bank Borrowings                     (115,626)       (109,004)
  Common stock issued                                                                   20,177
  Proceeds from sale of stock net                                    1,785,691
  Dividends paid                                                       (65,030)        (47,694)
                                                                  ------------    ------------

         Net cash provided by financing
           activities                                                8,028,093       4,414,983
                                                                  ------------    ------------

Net increase (decrease) in cash and due from banks                   3,812,951      (4,078,582)

Cash at beginning of period                                          6,009,330      11,539,886
                                                                  ------------    ------------
Cash at end of period                                             $  9,822,281    $  7,461,304
                                                                  ============    ============
                                                                     3,812,951
Supplemental disclosure:
  Cash paid during the period for:
    Interest                                                      $  1,375,737    $  1,066,720
                                                                  ============    ============
    Income taxes                                                  $    285,000    $    341,250
                                                                  ============    ============

  Unrealized loss  on securities available for sale,
    net of deferred income taxes                                  $    (19,346)   $   (382,883)
                                                                  ============    ============

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)
                                                                  ============    ============
   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 June 30,
2005, the  Consolidated  Statements of Income and  Comprehensive  Income for the
three  and nine  months  ended  June 30,  2005 and  2004,  and the  Consolidated
Statements  of Cash Flows for the nine months ended June 30, 2005 and 2004.  The
results of operations  for the three and nine months ended June 30, 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.

     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.


                                       4
<PAGE>

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.

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  unawarded  portion  of shares  held by 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 June 30
                       ----------------------------------

<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      $ 88,768     650,311               $205,002    528,758

ESOP Shares, not
Committed to be released                 (27,508)                          (21,805)

RSP Shares, unawarded                     (1,486)                           (8,308)
                            ---------------------------------- ------------------------------
Basic earnings per share      88,768     621,317      $0.14    $205,002    498,645     $ 0.41

Common Stock equivalents                  38,123                            32,676
                            ---------------------------------- ------------------------------
Diluted earnings per share  $ 88,768     659,440      $0.13    $205,002    531,321     $ 0.39
                            ========     =======      =====    ========    =======     ======
</TABLE>


                                       5
<PAGE>

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.

     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 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.


                                       6
<PAGE>

Financial Condition

     Total assets increased $8.5 million, or 8.9%, to $104.1 million at June 30,
2005 from $95.6  million at  September  30,  2004.  The  increase  is  primarily
attributable to an increase in held to maturity  securities of $1.4 million net,
an  increase in loans  receivable  of $3.3 and an increase in cash and dues from
banks of $3.8 million.  The Bank's total liabilities  increased $6.4 million, or
7.3%,  to $94.7  million at June 30, 2005 from $88.3  million at  September  30,
2004.  The increase is  primarily  attributable  to a $6.4  million  increase in
deposits primarily attributable special CD offerings.

     Stockholders'  equity  increased  $2.1 million to $9.4 million,  or 9.0% of
total assets,  at June 30, 2005,  as compared to $7.3 million,  or 7.6% of total
assets, at September 30, 2004. The increase in stockholders' equity is primarily
attributable  to the private  sale of $2.1  million of common  stock in November
2004, and net income of $305,000,  partially  offset by the addition of $193,000
in ESOP and RSP shares acquired and dividends paid of $65,000.

Results of Operations

     Net Income.  The Bank's net income decreased $116,000 for the quarter ended
June 30, 2005 to $89,000 from $205,000 for the quarter ended June 30, 2004.  The
decrease in net income is  attributable to a decrease in the Bank's net interest
income  after  provisions  for  loan  losses  of  $98,000  and  an  increase  in
non-interest expense of $94,000,  partially offset by a decrease in income taxes
of  $87,000.  For the nine  months  ended June 30,  2005,  net income  decreased
$159,000 to $305,000 from $464,000 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 receives on its  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 decreased  $98,000,  or
9.6%,  to $926,000 for the quarter ended June 30, 2005 from $1.0 million for the
quarter  ended June 30, 2004.  The decrease was  primarily due to an increase in
interest  expense of $115,000,  partially  offset by a decrease in the provision
for loan losses of $21,000.  The increase in interest  expense was primarily due
to higher costs of funds as well as the growth of deposit balances. Net interest
income after provision for loan losses  decreased by $54,000 for the nine months
ended June 30,  2005,  compared  to the same  period in 2004.  The  decrease  is
attributable  primarily  to the increase in the Bank's cost of funds as a result
of higher market interest rates in addition to an increase in deposits.

     Provision  for Loan  Losses.  Provision  for loan losses was $9,000 for the
three months ended June 30, 2005, compared to $30,000 for the three months ended
June 30, 2004.  For the nine months ended June 30, 2005 the  provision  for loan
losses was $76,000  compared to $113,000  for the same period in 2004.  The loan
loss provision  decreased during the two fiscal periods based on our analysis of
the risks associated with the loan portfolio.

     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.


                                       7
<PAGE>

     Non-Interest  Income.  Non-interest  income decreased $11,000, or 13.3%, to
$69,000 for the quarter ended June 30, 2005 from $80,000 for the same quarter in
2004.  The  decrease is  attributable  to a decrease  in fees and other  service
charges  of  $22,000  partially  offset  by an  increase  on sale of  loans  and
securities  available  for sale of $11,000.  For the nine months  ended June 30,
2005, non-interest income decreased $62,000 compared to the same period in 2004.
This  decrease is primarily  attributable  to a decrease in gains on the sale of
loans and securities  available for sale of $36,000,  and a decrease in fees and
other charges of $26,000.

     Non-Interest Expense.  Non-interest expense increased $94,000, or 12.6%, to
$843,000 for the quarter  ended June 30, 2005 from $749,000 for the same quarter
in 2004. The increase in the Bank's non-interest expense was primarily due to an
increase of $59,000 in the Bank's  compensation  and benefits and an increase of
$27,000 in professional fees, mostly due to the new Sarbanes-Oxley requirements.
The category of non-interest  expense  classified as "Other" comprises  expenses
related to advertising, loan-processing fees, NOW expenses, and costs related to
supplies.  For the  nine  months  ended  June  30,  2005,  non-interest  expense
increased  by $149,000 to $2.5  million,  compared to $2.3  million for the same
period in 2004.

     Income Tax Expense. Income tax expense decreased to $63,000 for the quarter
ended June 30, 2005 from $150,000 for the same period in 2004.  This decrease of
$87,000 was due to the  decrease  in net income for the  quarter  ended June 30,
2005.  For the nine months ended June 30, 2005,  income tax expense was $208,000
compared to $315,000 for 2004.

     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  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 nine months ended June 30, 2005 was  $574,000,  compared to $745,000 for the
same period in 2004.  The  decrease was mostly  attributed  to the change in net
income and accrued and deferred income taxes.

     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
nine months ended June 30, 2005,  totaled $4.8 million  compared to $9.2 million
for the same period in 2004. The decrease is  attributable to the change in sale
and  redemption  of  securities  net of purchases of $1.3 million in 2005 verses
$5.1 million in 2004.


                                       8
<PAGE>

     Net cash provided by the Bank's financing  activities  (i.e., cash receipts
primarily from net increases in deposits and net increases in FHLB advances) for
the nine months ended June 30, 2005, totaled $8.0 million,  compared to net cash
provided by  financing  activities  of $4.4 million for the same period in 2004.
The increase is  attributable  to a net increase in deposits of $6.4 million and
proceeds from the sale of stock of $1.8 million in 2005, compared to an increase
in deposits of $4.5 million in 2004.

     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 June 30, 2005, with tangible, core and risk based capital ratios
of 7.79%, 7.79% and 13.43%, 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.


PART II.  OTHER INFORMATION

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

         The Company was not engaged in any material  legal  proceedings  during
         the quarter  ended June 30, 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
         ---------------------------------------------------

         Not applicable.


                                       9
<PAGE>

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

         Not applicable.

Item 6.  Exhibits

         --------
         Exhibits:

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

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





















                                       10
<PAGE>

                                   SIGNATURES


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


                                 FARNSWORTH BANCORP, INC.



Date: August 11, 2005            By:/s/ Gary N. Pelehaty
                                    --------------------------------------------
                                    Gary N. Pelehaty
                                    President and Chief Executive Officer
                                    (Principal Executive Officer)



Date: August 11, 2005            By:/s/ Charles Alessi
                                    --------------------------------------------
                                    Charles Alessi
                                    Vice President, Chief Financial Officer
                                    Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)















                                       11