SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                               ------------------

                                   FORM 10-QSB
                                   (Mark One)

[x]  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

     For  the quarterly period ended March 31, 2000
                                     --------------
                                       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 May 1, 2000:    379,858
                                                                       -------

            Transitional Small Business Disclosure Format (check one)

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


<PAGE>


<TABLE>
<CAPTION>

                                            Contents
                                            --------
                                                                                     Page(s)
                                                                                     -------
<S>    <C>                                                                       <C>
PART I - FINANCIAL INFORMATION

     Item 1.  Financial Statements.....................................................3

          Consolidated Statements of Financial Condition at March 31, 2000
          (unaudited) and September 30, 1999 (audited).................................3

          Consolidated  Statements  of Income and  Comprehensive  Income for the
          three  and six  months  ended  March  31,  2000  and  March  31,  1999
          (unaudited)..................................................................4

          Consolidated Statements of Cash Flows for the six months ended
          March 31, 2000 and March 31, 1999 (unaudited)................................5

     Item 2.  Management's Discussion and Analysis of Financial Condition and
                Results of Operations..................................................9


PART II - OTHER INFORMATION

     Item 1.  Legal Proceedings.......................................................12

     Item 2.  Changes in Securities and Use of Proceeds...............................12

     Item 3.  Defaults upon Senior Securities.........................................12

     Item 4.  Submission of Matters to a Vote of Security Holders.....................12

     Item 5.  Other Information.......................................................12

     Item 6.  Exhibits and Reports on Form 8-K........................................13

     Signatures.......................................................................14

</TABLE>
                                      -2-
<PAGE>
<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION
                     FARNSWORTH BANCORP INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


                                                       MARCH 31        SEPTEMBER 30,
                                                         2000               1999
                                                   ----------------  ----------------
<S>                                                 <C>               <C>
ASSETS                                                (UNAUDITED)       (AUDITED)

Cash and due from banks                                $ 2,417,116       $ 1,883,104
Securities available for sale                            8,612,674         8,672,614
Securities held to maturity:
  Mortgage-backed                                        1,642,105         1,755,110
  Other                                                  2,270,140         2,267,216
Loans receivable, net                                   40,131,208        38,832,141
Real Estate Owned, net                                                        88,013
Accrued interest receivable                                422,337           423,706
Federal Home Loan Bank of New York stock
  at cost substantially restricted                         457,800           418,700
Deferred Income Taxes                                      123,393            99,359
Prepaid taxes                                                4,882                 -
Premises and equipment                                   1,578,346         1,516,252
Other assets                                                61,901            72,236
                                                   ----------------  ----------------

         Total assets                                 $ 57,721,902      $ 56,028,451
                                                   ================  ================


    LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                              $ 42,794,807      $ 42,490,162
Borrowings from FHLB                                     9,155,801         7,712,940
Advances by borrowers for taxes and
  insurance                                                182,956           213,653
Accrued income taxes                                                          78,160
Accrued interest payable                                    94,898            97,119
Accounts payable and other accrued
  expenses                                                  61,711           149,254
                                                   ----------------  ----------------

         Total liabilities                              52,290,173        50,741,288
                                                   ----------------  ----------------

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 and
  outstanding                                               37,985            37,985
Additional paid in capital                               3,396,262         3,396,262
Retained earnings substantially restricted               2,550,658         2,451,554
Unreleased common stock and related
 additional paid in capital acquired by
 employee stock ownership plan (ESOP)                     (250,695)         (303,880)
Unissued Restricted Stock Plan Shares                     (126,964)         (159,364)
Net unrealized depreciation on available
  for sale securities net of income taxes                 (175,517)         (135,394)
                                                   ----------------  ----------------

         Total stockholders' equity                      5,431,729         5,287,163
                                                   ----------------  ----------------

         Total liabilities and
          stockholders' equity                        $ 57,721,902      $ 56,028,451
                                                   ================  ================
</TABLE>
                                      -3-

<PAGE>

                     FARNSWORTH BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                            AND COMPREHENSIVE INCOME
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                  THREE MONTHS ENDED                 SIX  MONTHS ENDED
                                                         MARCH 31                        MARCH 31
                                                2000            1999             2000            1999
                                            --------------  --------------  ---------------  --------------
Interest income:
<S>                                          <C>             <C>             <C>             <C>
  Loans receivable                              $ 754,194       $ 652,376       $1,502,365      $1,269,639
  Securities                                      197,753         120,923          388,594         217,331
  Federal funds sold                               12,788           6,526           26,149          33,221
                                            --------------  --------------  ---------------  --------------
        Total interest income                     964,735         779,825        1,917,108       1,520,191
                                            --------------  --------------  ---------------  --------------

Interest expense:
  Deposits                                        383,467         352,404          762,873         703,024
  Federal Home Loan Bank advances                 124,809          39,449          243,440          44,690
                                            --------------  --------------  ---------------  --------------
        Total interest expense                    508,276         391,853        1,006,313         747,714
                                            --------------  --------------  ---------------  --------------
Net interest income                               456,459         387,972          910,795         772,477

Provision for loan losses                           2,000           9,000           13,000          14,000
                                            --------------  --------------  ---------------  --------------

        Net interest income after
          provision for loan losses               454,459         378,972          897,795         758,477
                                            --------------  --------------  ---------------  --------------

Noninterest income:
  Fees and other service charges                   47,733          64,494          103,459         126,324
  Net Realized Gain on Available for
    Sale Securities                                                 1,484                            1,484
  Other Income ( Loss)                             (8,012)              -            4,454
                                            --------------  --------------  ---------------  --------------
        Total noninterest income                   39,721          65,978          107,913         127,808

Noninterest expense:
  Compensation and benefits                       206,506         184,928          409,559         347,250
  Occupancy and equipment                          72,802          78,265          133,622         141,396
  Federal insurance premiums and
    assessments                                     6,792           5,376           17,003          10,694
  Other                                           145,298         133,003          294,735         254,944
                                            --------------  --------------  ---------------  --------------
        Total noninterest expense                 431,398         401,572          854,919         754,284
                                            --------------  --------------  ---------------  --------------

Income before provision for income
  taxes                                            62,782          43,378          150,789         132,001
Provision for income taxes                         20,625          18,240           51,685          53,800
                                            --------------  --------------  ---------------  --------------
        Net income                                 42,157          25,138           99,104          78,201

Other Comprehensive Income, net of taxes
  Unrealized Gain (Loss) on Securities
   Available for Sale                               7,334         (22,848)         (40,123)         (1,681)
  Reclassification adjustments for gains
    included in net income                                         (1,484)               -          (1,484)
                                            --------------  --------------  ---------------  --------------

Comprehensive Income                            $  49,491       $     806       $   58,981      $   75,036
                                            ==============  ==============  ===============  ==============

Net income per common share:
  Basic                                         $    0.12       $    0.07       $     0.29      $     0.22

Shares used in computing basic
  income per share                                337,314         349,470          337,314         349,470
</TABLE>

                                      -4-

<PAGE>


                     FARNSWORTH BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                            SIX MONTHS ENDED MARCH 31
<TABLE>
<CAPTION>

                                                                2000              1999
                                                       -----------------   -----------------
Cash flows from operating activities:
  Net income                                                $    99,104         $    78,201
                                                       -----------------   -----------------
  Adjustments to reconcile net income
   to net cash provided by operating activities
<S>                                                        <C>                 <C>
    Depreciation and amortization                                36,729              33,557
    Provision for loan losses                                    13,000              14,000
    Net (gain) on sale of assets                                                     (1,484)
    Net loss on sale of real estate owned                         8,013
    Decrease (increase) in accrued interest receivable            1,369            (136,502)
    Decrease in other assets                                     10,335              12,079
   (Decrease) in advances from borrowers                        (30,697)            (22,049)
   (Decrease)  in accrued income taxes
     and deferred income taxes                                  (87,259)            (86,727)
   (Decrease) increase in accrued interest payable               (2,221)             47,301
   (Decrease) in other accrued liabilities                       (1,960)            (68,078)
                                                       -----------------   -----------------

         Total adjustments                                      (52,691)           (207,903)
                                                       -----------------   -----------------

         Net cash provided by  (used in) operating
          activities                                             46,413            (129,702)
                                                       -----------------   -----------------

Cash flows from investing activities:

  Net increase in loans receivable                           (1,312,067)         (4,814,023)
  Proceeds from sale of REO                                      80,000
  Redemption of securities, held to maturity                    113,005             895,685
  Purchase of Federal Home Loan Bank Stock                      (39,100)            (35,500)
  Proceeds from sale of securities available for sale                               492,344
  Purchase of securities, available for sale net                                 (6,497,140)
  Purchase of premises and equipment                           (101,745)           (109,970)
                                                       -----------------   -----------------

       Net cash used in investing
         activities                                          (1,259,907)        (10,068,604)
                                                       -----------------   -----------------


Cash flows from financing activities:
  Net increase  in deposits                                     304,645           3,691,108
  Increase in Federal Home Loan Bank Borrowings               1,442,861           3,000,000
                                                       -----------------   -----------------

         Net cash provided by financing
           activities                                         1,747,506           6,691,108
                                                       -----------------   -----------------

Net  (decrease) increase in cash and due from banks             534,012          (3,507,198)

Cash at beginning of period                                   1,883,104           3,928,077
                                                       -----------------   -----------------
Cash at end of period                                       $ 2,417,116         $   420,879
                                                       =================   =================

Supplemental  disclosure:
 Cash paid during the period for:
    Interest                                                $   508,276         $   700,413
                                                       =================   =================
    Income taxes                                            $   120,277         $    15,000
                                                       =================   =================

  Unrealized  (loss) on securities available
    for sale, net of deferred income taxes                  $   (40,123)        $    (3,165)
                                                       =================   =================


Non-Cash Items
  mortgage to finance sale of Real Estate Owned             $    64,000         $         -
                                                       =================   =================
</TABLE>

                                      -5-

<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
subsidiary  Peoples  Savings  Bank  (the  "Bank").  The  accompanying  unaudited
consolidated  interim financial statements have been prepared in accordance with
the  instructions  to Form 10-QSB.  Accordingly,  they do not include all of the
information and footnotes required by generally accepted  accounting  principles
for complete financial statements.  The accounting and reporting policies of the
Company  conform in all  material  respects  to  generally  accepted  accounting
principles and to general practice within the thrift industry. It is the opinion
of management that the accompanying  unaudited  consolidated  interim  financial
statements  reflect all  adjustments  which are  considered  necessary to report
fairly the financial position as of March 31,2000,  the Consolidated  Statements
of Income and Comprehensive  Income for the three and six months ended March 31,
2000 and 1999, and the Consolidated  Statements of Cash Flows for the six months
ended March 31, 2000 and 1999.  The results of operations  for the three and six
months ended March 31, 2000, are not necessarily  indicative of results that may
be expected for the year ending September 30, 2000, or for any other period. The
accompanying  unaudited consolidated interim financial statements should be read
in  conjunction  with the Company's  September 30, 1999  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, 1999.

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.

Cash Equivalents
----------------
For the purpose of  presentation in the  Consolidated  Statements of Cash Flows,
cash  and  cash  equivalents  are  defined  as  those  amounts  included  in the
balance-sheet  caption  "cash and due from  banks."  The Company  considers  all
highly liquid investments with original  maturities of three months or less when
purchased as cash equivalents.

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.

                                      -6-
<PAGE>

New Branch
----------
In March of 2000 the Bank opened its third branch in the city of Mt. Laurel, New
Jersey.  The opening of this branch has added  expenses in the current  quarter,
and the Bank is anticipating additional expenses in future quarters as well.

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 Company's  Employee  Stock  Ownership
Plan ("ESOP") and the restricted  shares held by the Company'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.


                                      -7-







<PAGE>
<TABLE>
<CAPTION>


                                                        For the three months ended March 31
                                                        -----------------------------------

                                                 2000                                      1999
                                               ---------                                ----------
                                                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             $42,157        379,858                      $25,138     379,858

  ESOP Shares                                    (27,350)                                 (30,388)

  RSP Shares                                     (15,194)

                                  $42,157        337,314       0.12           $25,138     349,470      0.07
                                  =======        =======       ====            ======     =======      ====
</TABLE>

 <TABLE>
<CAPTION>

                                                       For the six months ended March 31
                                                       ---------------------------------

                                                 2000                                      1999
                                               ---------                                ----------
                                                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             $99,104        379,858                       78,201     379,858

  ESOP Shares                                    (27,350)                                 (30,388)

  RSP Shares                                     (15,194)

                                  $99,104        337,314       0.29           $78,201     349,470      0.22
                                  =======        =======       ====            ======     =======      ====
</TABLE>

                                      -8-



<PAGE>

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

Forward-Looking Statements

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  (the  "Commission")  and its  reports  to
stockholders.  Statements  made in such documents,  other than those  concerning
historical  information,  should be  considered  forward-looking  and subject to
various risks and uncertainties.  Such forward-looking statements are made based
upon  management's  beliefs  as well as  assumptions  made by,  and  information
currently  available to, management  pursuant to "safe harbor" provisions of the
Private  Securities  Litigation Reform Act of 1995. The Company's actual results
may differ materially from the results anticipated in forward-looking statements
due  to a  variety  of  factors,  including  governmental  monetary  and  fiscal
policies,  deposit  levels,  loan demand,  loan  collateral  values,  securities
portfolio values, and interest rate risk management;  the effects of competition
in  the  banking  business  from  other  commercial  banks,   savings  and  loan
associations, mortgage banking firms, consumer finance companies, credit unions,
securities brokerage firms,  insurance companies,  money market mutual funds and
other  financial  institutions  operating  in  the  Company's  market  area  and
elsewhere,  including  institutions  operating through the Internet;  changes in
governmental regulations relating to the banking industry, including regulations
relating to branching and  acquisitions;  failure of assumptions  underlying the
establishment  of  reserves  for  losses,  including  the  value  of  collateral
underlying  delinquent loans, and other factors.  The Company cautions that such
factors  are not  exclusive.  The  Company  does not  undertake  to  update  any
forward-looking  statements  that may be made from time to time by, or on behalf
of, the Company.

Financial Condition

         Total assets  increased  $1.7 million or 3.0% to $57.7 million at March
31, 2000 from $56.0  million at September  30, 1999.  The increase was primarily
attributable  to a  $1.3  million  increase  in  loans  receivable,  net.  Total
liabilities  increased  $1.6 million or 3.0%, to $52.3 million at March 31, 2000
from  $50.7  million  at  September   30,  1999.   The  increase  was  primarily
attributable to a $ 1.4 million increase in borrowings from the FHLB.

         Stockholders'  equity  increased  $145,000  to $5.4  million or 9.4% of
total  assets at March 31,  2000,  as compared to $5.3  million or 9.4% of total
assets at September 30, 1999. The increase in stockholders'  equity is primarily
attributable to net income of $99,000,  and  amortization of ESOP and Restricted
Stock  Plan  shares  of  $86,000   offset  by  an  increase  in  the  unrealized
depreciation on available for sale securities net of taxes of $40,000.

Results of  Operations  for the Three and Six Months  Ended  March 31,  2000 and
March 31, 1999

         Net  Income.  The Bank's net income  increased  $17,000 for the quarter
ended March 31,  2000 to $42,000  from  $25,000 for the quarter  ended March 31,
1999. The increase in net income was  attributable  to an increase in the Bank's
net interest income of $68,000 offset by a decrease in non-interest  income of $
26,000 and an increase in non-interest  expense of $30,000. Net income increased
$21,000 for the six months ended March 31, 2000, to $99,000 from $78,000 for the
same period in 1999.

         Net  Interest  Income.  Net  interest  income  is the most  significant
component  of the Bank's  income from  operations.  Net  interest  income is the
difference  between interest the Bank received on its  interest-

                                      -9-
<PAGE>

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  $75,000,
or 19.80%,  to $454,000 for the quarter  ended March 31, 2000 as compared to the
quarter  ended March 31, 1999.  The increase was  primarily due to the growth in
interest-earning  assets to $55.7  million at March 31, 2000 from $ 48.4 million
at March  31,  1999.  Net  interest  income  after  provisions  for loan  losses
increased  $139,000 for the six months ended March 31,  2000,  to $898,000  from
$758,000 for the same period in 1999.

         Provision for Loan Losses. Provision for loan losses was $2,000 for the
quarter  ended March 31, 2000, as compared to $9,000 for the quarter ended March
31, 1999. For the six months ended March 31, 2000, the provision for loan losses
decreased  by $1,000 to $13,000 as  compared  to $14,000  for the same period in
1999.

         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  $26,000 or 40.0%
from $ 66,000 for the  quarter  ended  March 31,  1999 to  $40,000  for the same
period in 2000. This decrease in the Bank's  non-interest  income was due to the
recognition  of a  miscellaneous  loss of $8,000 and a decrease in other fees of
$17,000 in 2000.

         Non-Interest  Expense.  Non-interest  expense increased $30,000 or 7.5%
from  $401,000  for the quarter  ended  March 31, 1999 to $431,000  for the same
period in 2000. The increase in the Bank's non-interest expense was attributable
primarily  to the opening of the Bank's new Mount Laurel  branch  office and was
due to a $12,000  increase  in other  non-interest  expense  and an  increase of
$22,000 in the Bank's  compensation and benefits.  Expenses  attributable to the
Mount Laurel office will result in increased expenses in future periods as well.
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  $3,000 from $18,000
for the quarter  ended March 31, 1999 to $21,000 for the quarter ended March 31,
2000. This increase in income tax expense is due to additional  income offset by
permanent differences.

Liquidity and Capital Resources

         The Bank is  required to maintain  minimum  levels of liquid  assets as
defined by OTS  regulations.  This  requirement,  which varies from time to time
depending upon economic conditions and deposit flows, is based upon a percentage
of the Bank's deposits and short-term  borrowings.  The required ratio currently
is 4.0% and the Bank's  regulatory  liquidity  ratio average was 14.59% at March
31, 2000.

         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

                                      -10-
<PAGE>



mortgage-backed   securities  and   maturities  of  investment   securities  are
predictable  sources of funds,  deposit flows,  and loan prepayments are greatly
influenced  by the general  level of interest  rates,  economic  conditions  and
competition.  The Bank uses its liquidity resources principally to fund existing
and future loan commitments, maturing certificates of deposit and demand deposit
withdrawals,  to invest in other interest-earning assets, to maintain liquidity,
and meet operating expenses.

         Net cash provided by the Bank's operating  activities (the cash effects
of  transactions  that enter into the Bank's  determination  of net income e.g.,
non-cash items,  amortization and  depreciation,  provision for loan losses) for
the six months  ended March 31, 2000 was $46,000,  an increase of  $176,000,  as
compared to the same period in 1999.  The increase in 2000 was primarily due net
income of $99,000 depreciation and amortization of $122,000 offset by a decrease
in the accrued income tax and deferred  income taxes of $87,000,  and a increase
in non-deposit liabilities of $87,000.

         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
six months  ended  March 31,  2000,  totaled  $1.3  million,  a decrease of $8.8
million.  The decrease in cash was  primarily  attributable  to funding net loan
growth of $1.3 million in 2000 as compared to $4.8 in 1999 as well as investment
purchases of $6.5 million in 1999. The decrease in cash was partially  offset by
redemption of securities of $113,000 in 2000 as compared to $896,000 in 1999.

         Net cash  provided  in the  Bank's  financing  activities  (i.e.,  cash
receipts  primarily  from net  increases in deposits  and net  increases in FHLB
advances)  for the six months ended March 31,  2000,  totaled  $1.7  million,  a
decrease of $4.9 million as compared to the six months ended March 31, 1999.

         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  4% of  total  adjusted  assets,  and (3) a
risk-based capital requirement equal to 8.0% of total  risk-weighted  assets. In
addition,  the OTS prompt corrective  action regulation  provides that a savings
institution  that  has a  leverage  capital  ratio  of  less  than  4%  (3%  for
institutions  receiving  the highest  examination  rating)  will be deemed to be
"undercapitalized"  and may be subject to certain restrictions.  The Bank was in
compliance with these  requirements  at March 31, 1999, with tangible,  core and
risk based capital ratios of 8.30%, 8.30 % and 17.23 %, respectively.


                                      -11-
<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
         ---------------------------------------------------

         The annual meeting of  stockholders  of the Company was held on January
         25, 2000, and the following matters were voted on by stockholders:

         Proposal I: Election of Directors

                                                       FOR              WITHHELD
                                                     -------            --------
         Edgar N. Peppler                            267,403             21,900
         Gary N. Pelehaty                            286,803              2,500

         Proposal II:  Ratification of the Farnsworth  Bancorp,  Inc. 1999 Stock
         Option Plan
         FOR             195,270
         AGAINST           7,833
         ABSTAIN           2,300

         Proposal III: Ratification of the Peoples Savings Bank Restricted Stock
         Plan
         FOR             121,327
         AGAINST           2,680
         ABSTAIN           1,200

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

         Not applicable.

                                      -12-

<PAGE>


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

         (a)      Exhibits
                  --------

                  27       Financial Data Schedule (electronic filing only)

         (b)      No current  reports on Form 8-K were filed during  the quarter
                  ended March 31, 2000.



                                      -13-

<PAGE>


                                   SIGNATURES


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


                           FARNSWORTH BANCORP, INC.



Date: May 10, 2000         By:/s/Gary N. Pelehaty
                              -------------------
                                    Gary N. Pelehaty
                                    President and Chief Executive Officer
                                    (Principal Executive Officer)




Date: May 10, 2000         By:/s/Charles Alessi
                              -----------------
                                    Charles Alessi
                                    Vice President, Chief Financial Officer,
                                    Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)


                                      -14-