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, 2004
                                                 -----------------

                                       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 February 2, 2005: 650,311
                                                                       -------

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

           Consolidated Statements of Income and Comprehensive Income for the three
           months ended December 31, 2004, and 2003 (unaudited)....................................  2

           Consolidated Statements of Cash Flows for the three months ended
           December 31, 2004 and 2003 (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....................................................................... 10

Item 2.    Changes in Securities and Small Business Issuer Purchases
           of Equity Securities.................................................................... 10

Item 3.    Defaults upon Senior Securities......................................................... 10

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

Item 5.    Other Information....................................................................... 10

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

Signatures ........................................................................................ 11
</TABLE>

<PAGE>

                    FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


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

Cash and due from banks                                                            $   8,682,831    $   6,009,330
Securities available for sale                                                         21,800,558       19,288,779
Securities held to maturity                                                              918,280          261,301
Loans receivable, net                                                                 66,357,959       66,502,369
Accrued interest receivable                                                              409,683          448,194
Federal Home Loan Bank of New York (FHLB) stock
  at cost substantially restricted                                                       490,200          490,200
Deferred income taxes                                                                    205,424          137,719
Premises and equipment                                                                 2,297,214        2,340,641
Other assets                                                                              58,317          126,650
                                                                                   -------------    -------------

         Total assets                                                              $ 101,220,466    $  95,605,183
                                                                                   =============    =============


LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                                                           $  90,755,701    $  86,825,805
Borrowings from FHLB                                                                     772,038          810,013
Advances by borrowers for taxes and insurance                                            327,787          373,531
Accrued income taxes                                                                     118,772          123,102
Accrued interest payable                                                                  71,287           63,219
Accounts payable and other accrued
  expenses                                                                               120,399          146,039
                                                                                   -------------    -------------

         Total liabilities                                                            92,165,984       88,341,709
                                                                                   -------------    -------------

Preferred stock $.10 par value, 1,000,000
  shares authorized; none issued and
  outstanding
Common stock $.10 par value,  5,000,000 shares  authorized;  662,693 and 542,666
   shares issued, at December 31, 2004
  and September 30, 2004 respectively; shares outstanding
  650,311 and 530,284, respectively                                                       66,270           54,267
Additional paid in capital                                                             8,481,669        6,515,350
Retained earnings substantially restricted                                             1,148,551        1,068,643
Treasury stock at cost 12,382 shares                                                    (120,658)        (120,658)
Common stock aquired by
 employee stock ownership plan (ESOP)                                                   (275,729)        (113,694)
Common stock aquired by restricted stock plan                                            (58,731)         (55,100)
Accumulated other comprehensive income , unrealized
 depreciation on available for sale securities,
 net of taxes                                                                           (186,890)         (85,334)
                                                                                   -------------    -------------

         Total stockholders' equity                                                    9,054,482        7,263,474
                                                                                   -------------    -------------

         Total liabilities and
          stockholders' equity                                                     $ 101,220,466    $  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
                                                                       DECEMBER 31
                                                              2004                 2003
                                                          -------------        -------------
<S>                                                      <C>                  <C>
Interest income:
  Loans receivable                                         $ 1,143,621          $ 1,081,373
  Securities                                                   206,043              193,957
  Federal funds sold                                            35,029               14,819
                                                          -------------        -------------
        Total interest income                                1,384,693            1,290,149
                                                          -------------        -------------

Interest expense:
  Deposits                                                     426,305              366,991
  Federal Home Loan Bank advances                               11,599               14,284
                                                          -------------        -------------
        Total interest expense                                 437,904              381,275
                                                          -------------        -------------
Net interest income                                            946,789              908,874

Provision for loan losses                                       21,801               20,000
                                                          -------------        -------------
        Net interest income after
          provision for loan losses                            924,988              888,874
                                                          -------------        -------------
Noninterest income:
  Fees and other service charges                                77,451               65,826
  Net realized gain on available for sale:
    Loans                                                        7,537                8,453
    Securities                                                   3,217               19,587
                                                          -------------        -------------
        Total noninterest income                                88,205               93,866
                                                          -------------        -------------
Noninterest expense:
  Compensation and benefits                                    469,038              458,769
  Occupancy and equipment                                      132,070              122,743
  Professional fees                                             54,825               52,950
  Service fees                                                  41,951               44,105
  Other                                                        121,086              121,673
                                                          -------------        -------------
        Total noninterest expense                              818,970              800,240
                                                          -------------        -------------

Income  before provision for income
  tax expense                                                  194,223              182,500
Provision for income tax expense                                81,800               73,000
                                                          -------------        -------------
        Net income                                             112,423              109,500

Other Comprehensive Income, net of taxes
  Unrealized loss on Securities
   Available for Sale                                          (99,626)             (57,878)
  Reclassification adjustments for gains
   included in net income                                       (1,930)             (11,787)
                                                          -------------        -------------

Comprehensive Income                                          $ 10,867             $ 39,835
                                                          =============        =============

Net income per common share:
  Basic                                                         $ 0.20               $ 0.22
  Diluted                                                       $ 0.18               $ 0.21

Weighted average number of shares
outstanding during the period:
  Basic                                                        575,655              493,120
  Diluted                                                      611,667              518,567

</TABLE>

                        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
                                                             2004            2003
                                                        ------------    ------------
<S>                                                   <C>             <C>
Cash flows from operating activities:
  Net income                                            $    112,423    $    109,500
                                                        ------------    ------------
  Adjustments to reconcile net income
   to net cash provided by operating activities
    Depreciation and amortization                             48,022          37,723
    Stock compensation                                        26,965          20,370
    Provision for loan losses                                 21,801          20,000
    Net gain on sale of AFS securities                        (3,217)        (19,587)
   Change in:
     Accrued interest receivable                              38,511          73,564
     Other assets                                             68,333          (3,657)
     Advances from borrowers                                 (45,744)         11,970
     Accrued and deferred income taxes                        (4,331)        (27,959)
     Accrued interest payable                                  8,068          (4,673)
     Other accrued liabilities                               (25,640)        (19,267)
                                                        ------------    ------------

         Total adjustments                                   132,768          88,484
                                                        ------------    ------------
         Net cash provided by operating
          activities                                         245,191         197,984
                                                        ------------    ------------
Cash flows from investing activities:

  Net change in loans receivable                             122,609      (2,055,848)
  Redemption of securities, held to maturity                  15,309          70,765
  Redemption of securities, available for sale               207,785         230,276
  Purchase of securities, held to maturity                  (672,288)           --
  Proceeds from sale of securities available for sale      4,593,051       3,498,916
  Purchase of securities, available for sale net          (7,478,648)     (4,954,852)
  Purchase of premises and equipment                          (4,595)        (48,786)
                                                        ------------    ------------

         Net cash used in investing activities            (3,216,777)     (3,259,529)
                                                        ------------    ------------
Cash flows from financing activities:
  Net increase  in deposits                                3,929,896         320,010
  Repayment of  Federal Home Loan Bank Borrowings            (37,985)        (35,800)
  Proceeds from sale of stock, net                         1,785,691
  Dividends paid                                             (32,515)        (21,652)
                                                        ------------    ------------

         Net cash provided by financing activities         5,645,087         262,558
                                                        ------------    ------------

Net change in cash                                         2,673,501      (2,798,987)

Cash at beginning of period                                6,009,330      11,539,886
                                                        ------------    ------------
Cash at end of period                                   $  8,682,831    $  8,740,899
                                                        ============    ============
Supplemental disclosure:
  Cash paid during the period for:
    Interest                                            $    429,836    $    385,948
                                                        ============    ============
    Income taxes                                        $     86,000    $     45,000
                                                        ============    ============

Non cash items:
  Unrealized loss  on securities available
    for sale, net of deferred income taxes              $   (101,556)   $    (69,665)
                                                        ============    ============
   Loan to ESOP                                         $    172,500
                                                        ============
   Restricted stock plan shares purchased               $     20,131
                                                        ============
</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,
2004, the  Consolidated  Statements of Income and  Comprehensive  Income for the
three months ended December 31, 2004 and 2003, and the  Consolidated  Statements
of Cash Flows for the three months ended December 31, 2004 and 2003. The results
of operations for the three months ended  December 31, 2004 are not  necessarily
indicative of results that may be expected for the entire year ending  September
30, 2005,  or for any other  period.  The  accompanying  unaudited  consolidated
interim  financial  statements  should be read in conjunction with the Company's
September  30,  2004  consolidated  financial  statements,  including  the notes
thereto,  which are included in the  Company's  Annual Report on Form 10-KSB for
the fiscal year ended September 30, 2004.

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

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

                                       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
                                        --------------------------------------
                                            2004                              2003
                                            ----                              ----
                                          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       $112,423     604,649                $109,500    519,637

ESOP Shares, not
committed to be released                  (27,508)                           (21,884)

RSP Shares                                 (1,486)                            (4,366)
                             ---------------------------------  ----------------------------------
Basic earnings per share      112,423      575,655    $  0.20    $109,500    493,120       $  0.22

Common Stock equivalents                    36,012                            25,447
                             ---------------------------------  ----------------------------------

Diluted earnings per share   $112,423      611,667    $  0.18    $109,500    518,567       $  0.21
                             =====================    =======    ===================       =======
</TABLE>

NOTE 3. Investment Securities
        ---------------------

The Bank's  investments  in  securities  are  classified in two  categories  and
accounted for as follows:

Securities Held to Maturity.  Mortgage backed  securities for which the Bank has
the  positive  intent and  ability to hold to  maturity  are  reported  at cost,
adjusted  for  amortization  of premiums and  accretion  of discounts  which are
recognized  in  interest  income  using the  interest  method over the period to
maturity.

Securities  Available  for Sale.  Securities  available for sale are reported at
market value and consist of certain debt and equity securities not classified as
trading or securities to be held to maturity.

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.

         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.

Financial Condition

         Total  assets  increased  $5.6  million  or 5.87% to $101.2  million at
December  31, 2004 from $95.6  million at September  30, 2004.  The increase was
primarily  attributable to an increases in available for sale securities of $2.5
million,  held to maturity securities of $657,000 and in cash and due from banks
of $2.7  million.  The Company's  total  liabilities  increased  $3.8 million or
4.33%, to $92.1 million at December 31, 2004 from $88.3 million at September 30,
2004.  The increase was  primarily  attributable  to a $3.9 million  increase in
deposits.

         Stockholders'  equity increased $1.8 million to $9.1 million or 8.9% of
total assets at December 31, 2004,  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  sale of $2.1  million  of  common  stock  in the  Offering
partially  offset by addition of ESOP and RSP shares  acquired  of  $193,000,  a
change in the unrealized  depreciation  on available for sale  securities net of
taxes of $102,000 and dividends paid of $33,000.

                                       6

<PAGE>

Results of Operations

         Net Income.  The Company's net income  increased $3,000 for the quarter
ended December 31, 2004 to $112,000 from $109,000 for the quarter ended December
31,  2003.  The  increase in net income was  attributable  to an increase in net
interest  income of $37,000  partially  offset by an  increase  in  non-interest
expense of $19,000,  a decrease in non-interest  income of $6,000 and a increase
in income taxes of $9,000.

         Net  Interest  Income.  Net  interest  income  is the most  significant
component of the Company's  income from  operations.  Net interest income is the
difference between interest the Company receives on its interest earning assets,
primarily  loans  and  investments,   and  interest  the  Company  pays  on  its
interest-bearing  liabilities,  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  $36,000,
or 4.06%,  to $925,000  for the quarter  ended  December 31, 2004 as compared to
$889,000 for the quarter ended December 31, 2003. The increase was primarily due
to an increase of interest income of $95,000  partially offset by an increase in
interest  expense of $57,000.  The increase in interest income was partially due
to the  increase  in the  investment  portfolio.  The  Company's  cost of  funds
increased as a result of higher market interest rates.

         Provision  for Loan Losses.  Provision  for loan losses was $22,000 for
the three  months ended  December  31,  2004,  compared to $20,000 for the three
months 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 $6,000 or 6.3% to
$88,000  for the  quarter  ended  December  31,  2004 from  $94,000 for the same
quarter  in  2003.  The  decrease  was  due to a  decrease  in  gain  on sale of
securities available for sale and loans of $17,000, offset by an increase in fee
income of $11,000.

         Non-Interest  Expense.  Non-interest expense increased $19,000 or 2.34%
to $819,000 for the quarter ended December 31, 2004 compared to $800,000 for the
same quarter in 2003.  The increase in the  Company's  non-interest  expense was
primarily  due to an  increase  of $10,000  in the  Company's  compensation  and
benefits as well as an increase of $9,000 in occupancy and  equipment  partially
offset by a decrease of $8,000 in other  expenses.  The category of non-interest
expense  classified as "Other" is comprised of expenses  related to advertising,
fees charged by banks,  loan-processing  fees,  NOW  expenses,  costs related to
supplies and various professional fees.

         Income Tax  Expense.  Income tax  expense  increased  by $9,000 for the
quarter  ended  December  31,  2004 to $82,000  compared to $73,000 for the same
period in 2003.  This change was due to the increase in the  effective  tax rate
for the quarter from 40% to 42%.

                                       7

<PAGE>

Liquidity and Capital Resources

         The Company'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  Company  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  Company's  operating  activities  (the cash
effects  of  transactions  that enter into the  Company's  determination  of net
income e.g., non-cash items,  amortization and depreciation,  provision for loan
losses) for the three months ended  December 31, 2004 was $132,000,  an increase
of  $44,000  compared  to the same  period  in 2003.  The  increase  in 2004 was
primarily  attributable to an increase in operating  adjustments and a change in
other assets, partially offset by the change in advances from borrowers.

         Net  cash  used  by the  Company's  investing  activities  (i.e.,  cash
disbursements, primarily for the purchase of the Company's investment securities
and mortgage-backed  securities portfolios and the Company's loan portfolio) for
the three months ended  December 31, 2004,  totaled $3.2  million.  This was the
same as net cash  used for the  quarter  ended  December  31,  2003.  The use is
attributable to an decrease in net loans receivable of $2.2 million and purchase
of  available  for sale and held to maturity  securities  of $8.1  million  net,
partially  offset by redemptions and proceeds from sale of securities  available
for sale of $4.8 million.

         Net cash provided by the Company's  financing  activities  (i.e.,  cash
receipts  primarily  from net  increases in deposits  and net  decreases in FHLB
advances)  for the three months ended  December 31, 2004,  totaled $5.7 million,
compared to $263,000 for the same period in 2003.  The increase is  attributable
to a net increase in deposits of $3.9 million,  net proceeds from sale of common
stock of $1.8 million,  partially  offset by repayment of borrowings of $38,000,
and dividends paid of $33,000.

         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, 2004, with tangible, core and
risk based capital ratios 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

                                       8

<PAGE>

disclosed by the Company in reports that it files or submits  under the Exchange
Act is recorded,  processed,  summarized  and  reported  within the time periods
specified in Securities and Exchange Commission rules and forms.

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

                                       9

<PAGE>

                           PART II. OTHER INFORMATION

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

         The Registrant was not engaged in any material legal proceedings during
the quarter ended  December 31, 2004.  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
-------  --------

         (a)    Exhibits:

         31     Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
                of 2002
         32     Certification pursuant to Section 906 of the 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: February 7, 2005        By:  /s/Gary N. Pelehaty
                                   --------------------------------------------
                 .                 Gary N. Pelehaty
                                   President and Chief Executive Officer
                                   (Principal Executive Officer)




Date: February 7, 2005        By:  /s/Charles Alessi
                                   --------------------------------------------
                                   Charles Alessi
                                   Vice President, Chief Financial Officer,
                                   Secretary and Treasurer
                                   (Principal Financial and Accounting Officer)


                                       11