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, 2002
                                      -----------------

                                       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 January 25, 2003: 360,866
                                                                       -------

            Transitional Small Business Disclosure Format (check one)

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

<PAGE>

                                    Contents
                                    --------

<TABLE>
<CAPTION>
<S>                                                                                     <C>

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


         Item 1.           Financial Statements

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

                  Consolidated Statements of Income and Comprehensive Income for the
                  three months ended December 31, 2002, and 2001 (unaudited)                     2

                  Consolidated Statements of Cash Flows for the three months ended
                  December 31, 2002 and 2001 (unaudited)                                         3

                  Notes to Financial Statements                                                  4

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


PART II - OTHER INFORMATION

         Item 1.           Legal Proceedings                                                     10

         Item 2.           Changes in Securities and Use of Proceeds                             10

         Item 3.           Defaults upon Senior Securities                                       10

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

         Item 5.           Other Information                                                     10

         Item 6.           Exhibits and Reports on Form 8-K                                      10
</TABLE>
                                       i
<PAGE>

                    FARNSWORTH BANCORP INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                      DECEMBER 31     SEPTEMBER 30,
                                                          2002            2002
                                                      ------------    ------------
ASSETS                                                 (UNAUDITED)      (AUDITED)

<S>                                                 <C>             <C>
Cash and due from banks                               $  9,574,342    $  9,161,801
Securities available for sale                            8,402,624      11,710,884
Securities held to maturity                                961,741       1,147,300
Loans receivable, net                                   58,996,241      58,026,218
Accrued interest receivable                                395,187         390,459
Federal Home Loan Bank of New York (FHLB) stock
  at cost substantially restricted                         499,800         499,800
Prepaid income taxes                                             -               -
Premises and equipment                                   2,227,143       2,117,790
Other assets                                                88,073          99,447
                                                      ------------    ------------

         Total assets                                 $ 81,145,151    $ 83,153,699
                                                      ============    ============
LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                              $ 73,199,881    $ 75,288,987
Borrowings from FHLB                                     1,060,728       1,094,474
Advances by borrowers for taxes and insurance              215,194         255,953
Accrued income taxes                                       135,274          87,911
Deferred income taxes                                       69,355          71,002
Accrued interest payable                                    26,492          35,984
Accounts payable and other accrued
  expenses                                                 117,273         132,228
                                                      ------------    ------------

         Total liabilities                              74,824,197      76,966,539
                                                      ------------    ------------
Preferred stock $.10 par value, 1,000,000
  shares authorized; none issued and
  outstanding
Common stock $.10 par value, 5,000,000 shares
  authorized; 379,858 shares issued, 360,866 shares
  outstanding                                               37,985          37,985
Additional paid in capital                               3,396,262       3,396,262
Retained earnings substantially restricted               3,110,586       2,980,935
Treasury stock at cost 18,992 shares                      (185,172)       (185,172)
Common stock aquired by
 employee stock ownership plan (ESOP)                     (166,823)       (174,414)
Common stock aquired by restricted stock plan              (41,984)        (54,765)
Accumulated other comprehensive income , unrealized
 appreciation on available for sale securities,
  net of taxes                                             170,100         186,329
                                                      ------------    ------------

         Total stockholders' equity                      6,320,954       6,187,160
                                                      ------------    ------------
         Total liabilities and
          stockholders' equity                        $ 81,145,151    $ 83,153,699
                                                      ============    ============
</TABLE>

                        SEE NOTES TO FINANCIAL STATEMENTS

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

                                              THREE MONTHS ENDED
                                                  DECEMBER 31
                                               2002           2001
                                           -----------    -----------
Interest income:
  Loans receivable                         $ 1,099,890    $   908,971
  Securities                                   190,545        199,158
  Federal funds sold                            19,240         21,407
                                           -----------    -----------
        Total interest income                1,309,675      1,129,536
                                           -----------    -----------

Interest expense:
  Deposits                                     457,525        524,024
  Federal Home Loan Bank advances               16,344         40,962
                                           -----------    -----------
        Total interest expense                 473,869        564,986
                                           -----------    -----------
Net interest income                            835,806        564,550

Provision for loan losses                       30,000         14,788
                                           -----------    -----------

        Net interest income after
          provision for loan losses            805,806        549,762
                                           -----------    -----------

Noninterest income:
  Fees and other service charges                74,359         67,099
  Net realized gain on available for
    sale loans and securities                   29,181         13,258
                                           -----------    -----------
        Total noninterest income               103,540         80,357
                                           -----------    -----------

Noninterest expense:
  Compensation and benefits                    352,644        288,493
  Occupancy and equipment                       99,709         86,642
  Federal insurance premiums and
    assessments                                  2,969          7,617
  Other                                        212,628        187,899
                                           -----------    -----------
        Total noninterest expense              667,950        570,651
                                           -----------    -----------

Income  before provision for income
  tax expense                                  241,396         59,468
Provision for income tax expense                93,700         15,000
                                           -----------    -----------
        Net income                             147,696         44,468

Other Comprehensive Income, net of taxes
  Unrealized loss on Securities
   Available for Sale                          (16,229)      (175,455)
  Reclassification adjustments for gains
    included in net income                     (10,548)       (13,258)
                                           -----------    -----------

Comprehensive Income (Loss)                $   120,919    $  (144,245)
                                           ===========    ===========

Net income per common share:
  Basic                                    $      0.44    $      0.14
  Diluted                                  $      0.43    $      0.13

Weighted average number of shares
  outstanding during the period:
  Basic                                        335,450        327,578
  Diluted                                      342,370        329,719


                        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
                                                             2002           2001
                                                        -----------    -----------
<S>                                                   <C>            <C>
Cash flows from operating activities:
  Net income                                            $   147,696    $    44,468
                                                        -----------    -----------
  Adjustments to reconcile net income
   to net cash provided by operating activities
    Depreciation and amortization                            32,100         27,700
    Stock compensation                                       20,372         13,170
    Provision for loan losses                                30,000         14,788
    Net gain on sale of AFS securities                      (10,548)       (13,258)
 Change in:
   Accrued interest receivable                               (4,728)       (69,931)
   Other assets                                              11,374        (20,790)
   Advances from borrowers                                  (40,759)        (3,138)
   Accrued and deferred income taxes                         45,716          8,645
   Accrued interest payable                                  (9,492)        (6,469)
   Other accrued liabilities                                (14,955)         4,928
                                                        -----------    -----------

         Total adjustments                                   59,080        (44,355)
                                                        -----------    -----------

         Net cash provided by operating
          activities                                        206,776            113
                                                        -----------    -----------
Cash flows from investing activities:

  Net increase in loans receivable                       (1,000,023)    (4,891,627)
  Proceeds from sale of REO                                       -         69,900
  Redemption of securities, held to maturity                185,559        118,949
  Redemption of securities, available for sale            2,223,872        310,155
  Proceeds from sale of securities available for sale     2,412,493        114,678
  Purchase of securities, available for sale net         (1,333,786)    (3,858,892)
  Purchase of premises and equipment                       (141,453)      (677,946)
                                                        -----------    -----------

         Net cash provided by (used in) investing
           activities                                     2,346,662     (8,814,783)
                                                        -----------    -----------

Cash flows from financing activities:
  Net (decrease) increase  in deposits                   (2,089,106)     5,752,800
  Repayment of  Federal Home Loan Bank Borrowings           (33,746)    (1,531,817)
  Dividends paid                                            (18,045)             -
                                                        -----------    -----------

         Net cash (used in) provided by financing
           activities                                    (2,140,897)     4,220,983
                                                        -----------    -----------

Net increase (decrease) in cash                             412,541     (4,593,687)

Cash at beginning of period                               9,161,801      9,282,084
                                                        -----------    -----------
Cash at end of period                                   $ 9,574,342    $ 4,688,397
                                                        ===========    ===========

Supplemental  disclosure:
  Cash paid during the period for:
    Interest                                            $   483,361    $   571,455
                                                        ===========    ===========
    Income taxes                                        $    55,757              -
                                                        ===========    ===========

  Unrealized loss  on securities available
    for sale, net of deferred income taxes              $   (16,229)   $  (175,455)
                                                        ===========    ===========
</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,
2002, the  Consolidated  Statements of Income and  Comprehensive  Income for the
three months ended December 31, 2002 and 2001, and the  Consolidated  Statements
of Cash Flows for the three months ended December 31, 2002 and 2001. The results
of operations for the three months ended  December 31, 2002 are not  necessarily
indicative of results that may be expected for the entire year ending  September
30, 2003,  or for any other  period.  The  accompanying  unaudited  consolidated
interim  financial  statements  should be read in conjunction with the Company's
September  30,  2002  consolidated  financial  statements,  including  the notes
thereto,  which are included in the  Company's  Annual Report on Form 10-KSB for
the fiscal year ended September 30, 2002.

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

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

         The Company is a unitary  savings and loan  holding  company.  The Bank
operates  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.

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

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

                                       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.

                             For the three months ended December 31
                             --------------------------------------

                                     2002                        2001
                                     ----                        ----

                                   Weighted   Per-              Weighted Per-
                                   Average    Share             Average  Share
                          Income   Shares     Amount  Income    Shares   Amount
                          ------   ------     ------  ------    ------   ------
Net income available
to Common Shareholders     $147,696  360,866         $44,468   360,866

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

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

Basic earnings per share    147,696  335,450   $0.44  44,468   327,578   $0.14

Common Stock equivalents               6,920                     2,141
                           --------  -------   ----- -------   -------   -----

Diluted earnings per share $147,696  342,370   $0.43 $44,468   329,719   $0.14
                           ========  =======   ===== =======   =======   =====


NOTE 3.  Investments
         -----------

         In fiscal year 2001, the Bank adopted Statement of Financial Accounting
Standard No. 133 "Accounting for Derivative Instruments and Hedging Activities."
In   accordance   with  FASB  133,  the  Bank   transferred  a  portion  of  its
held-to-maturity portfolio to available-for-sale. The unrealized gain or loss on
the held-to-maturity  investments that were transferred to available-for-sale is
reported  in  accumulated  other   comprehensive   income  consistent  with  the
requirements of Statement of Financial  Accounting  Standard No. 115 "Accounting
for Certain Investments in Debt and Equity Securities."

                                       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  decreased  $2.0  million  or 2.42% to $81.1  million  at
December  31, 2002 from $83.1  million at September  30, 2002.  The decrease was
primarily  attributable  to a decrease in securities  available for sale of $3.3
million,  partially  offset by  increases  of $1.0  million in the Bank's  loans
receivable net, $412,000 in cash and due from banks and $109,000 in premises and
equipment.  The Bank's total liabilities decreased $2.1 million or 2.78%, to $75
million at  December  31,  2002 from $77  million at  September  30,  2002.  The
decrease  was  primarily  attributable  to a $2.1  million  decrease in deposits
primarily attributable to a decrease in local municipal deposits.

         Stockholders'  equity  increased  $134,000  to $6.3  million or 7.8% of
total assets at December 31, 2002,  as compared to $6.2 million or 7.4% of total
assets at September 30, 2002. The increase in stockholders'  equity is primarily
attributable  to net income of $148,000  and  amortization  of benefit  plans of
$20,000 partially offset by a change in the unrealized appreciation on available
for sale securities net of taxes of $16,000 and dividends paid of $18,000.

Results of Operations

         Net Income.  The Bank's net income  increased  $103,000 for the quarter
ended  December 31, 2002 to $148,000 from $44,000 for the quarter ended December
31,  2001.  The  increase in net income was  attributable  to an increase in the
Bank's net interest  income  after  provisions  for loan losses of $256,000,  an
increase in non-interest  income of $23,000  partially  offset by an increase in
non-interest expense of $97,000 and an increase in income taxes of $78,000.

                                       6
<PAGE>


         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 increased $256,000,
or 46.6%,  to $806,000  for the quarter  ended  December 31, 2002 as compared to
$550,000 for the quarter ended December 31, 2001. The increase was primarily due
to an  increase  in  interest  income of  $180,000,  and a decrease  in interest
expense of $91,000.  The increase in interest  income was  partially  due to the
growth in the residential  loan  portfolio,  attributable to high demand of real
estate  purchases  as well as  refinancing  loans  and home  equity  loans.  The
increase was also due to the increased  commercial real estate lending  provided
by the implementation of the Commercial Loan Department headed by an experienced
commercial loan officer.  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 $30,000 for
the three  months ended  December  31,  2002,  compared to $15,000 for the three
months ended  December 31, 2001.  This increase was deemed  necessary due to the
increased lending volume.

         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 increased  $23,000 or 28.9%
from  $80,000 for the quarter  ended  December 31, 2001 to $103,000 for the same
quarter  in  2002.  Non-interest  income  for  2002  included  a gain on sale of
securities available for sale of $10,000 compared to $13,000 for the same period
in 2001 and a gain on sale of loans of $19,000 in 2002 versus none in 2001.

         Non-Interest  Expense.  Non-interest expense increased $97,000 or 17.5%
from approximately  $571,000 for the quarter ended December 31, 2001 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 $64,000 in the Bank's  compensation  and
benefits as well as an increase of $13,000 in  occupancy  and  equipment  and an
increase of $25,000 in other expenses.  These increases were mostly attributable
to the opening of the new branch in January 2003.  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  changed  from $15,000 for the
quarter  ended  December  31, 2001 to $93,000 for the same period in 2002.  This
change of $78,000 is due to the  increase in  net-income  for the quarter  ended
December 31, 2002.  Additionally,  in July 2002 New Jersey eliminated the 3% tax
rate formerly applicable to thrift institutions  located in New Jersey, and such
institutions  are  now  subject  to the 9% tax  rate  applicable  to New  Jersey
corporations.

                                       7

<PAGE>

         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 three months ended December 31, 2002 was $207,000,  an increase of $207,000.
The increase in 2002 was primarily attributable to the increase in net income in
2002  of  $103,000  compared  to  December  31,  2001,  as  well  as  additional
depreciation,  amortization  and accrued and  deferred  income  taxes  partially
offset by a change in other assets and other liabilities.

         Net cash  provided  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, 2002,  totaled $2.3 million compared to a use of
funds of $8.8 million for the same period in 2001. The increase is  attributable
to a decrease  in net loans  receivable  of $4.0  million  and  redemptions  and
proceeds  from sale of  securities  available  for sale of $4.0  million in 2002
partially offset by purchase of securities of $1.3 million net.

         Net cash used in 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, 2002, totaled $2.1 million,  compared to net
cash  provided by  financing  activities  of $4.2 million for the same period in
2001.  The  decrease  is  attributable  to a net  decrease  in  deposits of $7.8
million,  and repayment of borrowings of $33,000 in 2002, versus $1.5 million in
2001.

         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, 2002, with tangible, core and
risk based capital ratios of 6.94%, 6.94% and 12.50%, respectively.

Item 3.    Controls and Procedures

     (a)  Evaluation  of  disclosure  controls  and  procedures.  Based on their
          evaluation  as of a date  within  90 days of the  filing  date of this
          quarterly report on Form 10-QSB, the Registrant's  principal executive
          officer  and  principal  financial  officer  have  concluded  that the
          Registrant's  disclosure  controls and procedures (as defined in Rules
          13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934 (the
          "Exchange Act")) are effective to ensure that information  required to
          be disclosed by the Company in reports that it files or

                                       8
<PAGE>

          submits under the Exchange Act is recorded, processed,  summarized and
          reported within the time periods  specified in Securities and Exchange
          Commission rules and forms.

     (b)  Changes in internal controls. There were no significant changes in the
          Registrant's   internal  controls  or  in  other  factors  that  could
          significantly  affect these  controls  subsequent to the date of their
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.

                                       9

<PAGE>

                           PART II. OTHER INFORMATION


Item 1.           Legal Proceedings

         The  Registrant is not engaged in any legal  proceedings at the present
time.  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

         Not applicable.

Item 6.           Exhibits and Reports on Form 8-K

         (a)      Exhibits:

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

         (b)      Current Reports on Form 8-K filed during the quarter ended
                  December 31, 2002:

                  On October 22, 2002, the Registrant  filed a Current Report on
Form 8-K to report that the Board of Directors had declared a  semi-annual  cash
dividend of $.05 per share  payable on November 14,  2002,  to  shareholders  of
record as of November 4, 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: February 4, 2003          By: /s/Gary N. Pelehaty
                                    --------------------------------------------
                                    Gary N. Pelehaty
                                    President and Chief Executive Officer
                                    (Principal Executive Officer)




Date: February 4, 2003          By: /s/Charles Alessi
                                    --------------------------------------------
                                    Charles Alessi
                                    Vice President, Chief Financial Officer,
                                    Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)


<PAGE>

                            SECTION 302 CERTIFICATION

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

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

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

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

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

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

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

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

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

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

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

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


Date: February 4, 2003                     /s/Gary N. Pelehaty
                                           -------------------------------------
                                           Gary N. Pelehaty
                                           President and Chief Executive Officer
<PAGE>

                            SECTION 302 CERTIFICATION

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

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

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

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

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

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

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

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

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

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

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

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


Date: February 4, 2003                /s/Charles Alessi
                                      ------------------------------------------
                                      Charles Alessi
                                      Vice President and Chief Financial Officer