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

                                   FORM 10-QSB

(Mark One)
---
 X   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
---  EXCHANGE ACT OF 1934

     For the quarterly period ended June 30, 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                   (I.R.S. Employer
Incorporation                                     Identification No.)
or Organization)

               789 Farnsworth Avenue, Bordentown, New Jersey 08505
               ---------------------------------------------------
                    (Address of Principal Executive Offices)

                                 (609) 298-0723
--------------------------------------------------------------------------------
                 Issuer's Telephone Number, Including Area Code

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days.

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

   Number of shares of Common Stock outstanding as of August 1, 2000: 360,866
                                                                      -------

            Transitional Small Business Disclosure Format (check one)

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

<PAGE>
                                    Contents
                                    --------


<TABLE>
<CAPTION>

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


<S>     <C>                                                                                       <C>
Item 1.  Financial Statements.......................................................................3

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

          Consolidated  Statements  of Income and  Comprehensive  Income for the
          three and nine months ended June 30, 2000 (unaudited).....................................4

          Consolidated  Statements  of Cash Flows for the nine months ended June
          30, 2000 and 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.........................................................................13

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

Signatures.........................................................................................13

</TABLE>



                                        2

<PAGE>

                     FARNSWORTH BANCORP INC. AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                                      JUNE 30,     SEPTEMBER 30,
                                                       2000             1999
                                                   ------------    ------------
     ASSETS                                        (unaudited)     (audited)

Cash and due from banks                            $  2,217,760    $  1,883,104
Securities available for sale                         8,601,662       8,672,614
Securities held to maturity:
     Mortgage-backed                                  1,536,303       1,755,110
     Other                                            2,271,302       2,267,216
Loans receivable, net                                40,066,938      38,832,141
Real Estate Owned, net                                   48,207          88,013
Accrued interest receivable                             434,132         423,706
Federal Home Loan Bank of New York Stock
     at cost substantially restricted                   457,800         418,700
Deferred Income Taxes                                   130,388          99,359
Prepaid taxes                                             9,849               -
Premises and equipment                                1,603,810       1,516,252
Other Assets                                            344,487          72,236
                                                   ------------    ------------
     TOTAL ASSETS                                  $ 57,722,638    $ 56,028,451
                                                   ============    ============

     LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                           $ 43,748,688    $ 42,490,162
Borrowings from FHLB                                  8,126,842       7,712,940
Advances by borrowers for taxes and insurance           207,171         213,653
Accrued income taxes                                          -          78,160
Accrued interest payable                                116,502          97,119
Accounts payable and other accrued expenses              81,450         149,254
                                                   ------------    ------------
     TOTAL LIABILITIES                               52,280,653      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            2,552,942       2,451,554
Unreleased common stock and related
Additional paid in capital acquired by
Employee stock ownership plan (ESOP)                   (242,735)       (303,880)
Unissued Restricted Stock Plan Shares                  (118,864)       (159,364)
Net unrealized depreciation on available
For sale securities net of income taxes                (183,605)       (135,394)
                                                   ------------    ------------
TOTAL STOCKHOLDER'S EQUITY                            5,441,985       5,287,163
                                                   ------------    ------------
TOTAL LIABILITIES AND
STOCKHOLER'S EQUITY                                $ 57,722,638    $ 56,028,451
                                                   ============    ============

                                       3
<PAGE>

                     FARNSWORTH BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                            AND COMPREHENSIVE INCOME
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED            NINE MONTHS ENDED
                                                      JUNE 30                       JUNE 30

                                                  2000           1999           2000           1999
                                             -----------    -----------    -----------    -----------
<S>                                         <C>            <C>            <C>            <C>
Interest income:
Loans receivable                             $   762,577    $   691,600    $ 2,264,942    $ 1,961,239
Securities                                       200,156        171,434        588,750        388,765
Federal funds sold                                10,335         13,684         36,484         46,905
                                             -----------    -----------    -----------    -----------
Total interest income                            973,068        876,718      2,890,176      2,396,909
                                             -----------    -----------    -----------    -----------
Interest expense:
Deposits                                         397,464        365,302      1,160,337      1,068,326
Federal Home Loan Bank advances                  141,234         52,963        384,674         97,653
                                             -----------    -----------    -----------    -----------
Total interest expense                           538,698        418,265      1,545,011      1,165,979
                                             -----------    -----------    -----------    -----------
Net interest income                              434,370        458,453      1,345,165      1,230,930

Provision for loan losses                              -         17,000         13,000         31,000
                                             -----------    -----------    -----------    -----------
Net interest income after
Provision for loan losses                        434,370        441,453      1,332,165      1,199,930
                                             -----------    -----------    -----------    -----------
Non-interest income:
Fees and other service charges                    52,587         53,473        156,046        179,797
Net Realized Gain on Available for
Sale Securities                                        -          1,875              -          3,359
Other income (Loss)                               33,307              -         37,761              -
                                             -----------    -----------    -----------    -----------
Total non-interest income                         85,894         55,348        193,807        183,156
                                             -----------    -----------    -----------    -----------
Non-interest expense:
Compensation and benefits                        234,072        200,985        643,631        548,235
Occupancy and equipment                           89,220         74,018        222,842        215,414
Federal insurance premiums and assessments         7,008         10,561         24,011         21,255
Other                                            186,080        119,901        480,815        374,845
                                             -----------    -----------    -----------    -----------
Total non-interest expense                       516,380        405,465      1,371,299      1,159,749
                                             -----------    -----------    -----------    -----------
Income before provision for income
taxes                                              3,884         91,336        154,673        233,337
Provision for income taxes                         1,600         28,500         53,285         82,300
                                             -----------    -----------    -----------    -----------
Net income                                         2,284         62,836        101,388        141,037

Other Comprehensive Income, net of taxes
Unrealized Gain (Loss) on Securities
Available for Sale                                (8,088)      (154,178)       (48,211)      (170,722)
Reclassification adjustments for gains
Included in net income                                 -         (1,875)             -         (3,359)
                                             -----------    -----------    -----------    -----------
Comprehensive Income                         $    (5,804)   $   (93,217)   $    53,177    $   (33,044)
                                             ===========    ===========    ===========    ===========

Net income per common share:
Basic                                        $     0.007    $      0.18    $      0.30    $      0.41

Shares used in computing
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)
<TABLE>
<CAPTION>
                                                        NINE MONTHS ENDED JUNE 30
                                                           2000            1999
                                                      ------------    ------------
<S>                                                  <C>             <C>
Cash flows from operating activities:
Net income                                            $    101,388    $    141,037
                                                      ------------    ------------
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation and amortization                               63,624          53,238
Provision for loan losses                                   13,000          31,000
Net (gain) on sale of assets                                     -          (3,359)
Net gain on sale of real estate owned                       25,295               -
(Increase) decrease in accrued interest receivable         (10,426)        118,225
(Increase) decrease in other assets                        (22,251)         20,311
(Decrease) in advances from borrowers                       (6,482)         (3,740)
(Decrease) in accrued income taxes
and deferred income taxes                                 (119,038)       (108,697)
Increase in accrued interest payable                        19,383          50,529
(Decrease) in other accrued liabilities                    (67,804)        (43,401)
                                                      ------------    ------------
Total adjustments                                         (104,699)       (122,344)
                                                      ------------    ------------
Net cash provided by (used in) operating activities         (3,311)         18,693
                                                      ------------    ------------
Cash flows from investing activities:

Net increase in loans receivable                        (1,442,986)     (6,310,668)
Purchase of securities held to maturity                          -        (503,574)
Proceeds from sale of REO                                  330,000               -
Redemption of securities, held to maturity                 218,807       1,042,165
Purchase of Federal Home Loan Bank Stock                   (39,100)        (35,500)
Proceeds from sale of securities available for sale              -       1,464,532
Purchase of securities, available for sale net                   -      (8,341,107)
Purchase of premises and equipment                        (151,182)       (127,298)
                                                      ------------    ------------
Net cash used in investing activities                   (1,084,461)    (12,811,450)
                                                      ------------    ------------
Cash flows from financing activities:
Net increase in deposits                                 1,258,526       5,786,257
Increase in Federal Home Loan Bank Borrowings              413,902       4,490,803
Purchase of treasury stock                                       -         (83,591)

Net cash provided by financing activities                1,672,428      10,193,469
                                                      ------------    ------------

Net increase (decrease) in cash and due from banks         334,656      (2,599,288)

Cash at beginning of period                              1,883,104       3,928,077
                                                      ------------    ------------
Cash at end of period                                 $  2,217,760    $  1,328,789
                                                      ============    ============
Supplemental disclosure:
Cash paid during the period for:
Interest                                              $  1,525,628    $  1,082,096
                                                      ============    ============
Income taxes                                          $    120,277    $     64,000
                                                      ============    ============
Unrealized loss on securities available
For sale, net of deferred income taxes                $    (48,211)   $   (170,722)
                                                      ============    ============
Non-Cash Items
Acquisition of real estate in settlement of loans     $    254,491    $     88,804
                                                      ============    ============
Mortgage to finance sale of Real Estate Owned         $    314,000    $          -
                                                      ============    ============

</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 June 30, 2000, the  Consolidated  Statements of Income
and  Comprehensive  Income for the three and nine months ended June 30, 2000 and
1999. The Consolidated  Statements of Cash Flows for the nine months ended, June
30, 2000 and 1999.  The results of operations for the nine months ended June 30,
2000,  are not  necessarily  indicative  of results that may be expected for the
entire 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
management anticipates 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").
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>

For the three months ended June 30
----------------------------------

<TABLE>
<CAPTION>
                                              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        $ 2,284           379,858                            $ 62,836          379,858

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

RSP Shares                                   (13,074)
                           -------           -------          ------            --------          -------    ------
                           $ 2,284           339,434          $0.007            $ 62,836          349,470    $ 0.18
                           =======           =======          ======            ========          =======    ======
</TABLE>


For the nine months ended June 30
---------------------------------


<TABLE>
<CAPTION>
                                               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        $ 101,388         379,858                            $ 141,037         379,858

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

RSP Shares                                   (13,074)
                           ---------         -------          ------            ---------         -------     -----
                           $ 101,388         339,434          $ 0.30            $ 141,037         349,470     $0.41
                           =========         =======          ======            =========         =======     =====
</TABLE>

                                       8
<PAGE>

NOTE 3.  Recent Accounting Pronouncements
         --------------------------------

         In June 1997, the Financial  Accounting Standards Board ("FASB") issued
Statement of Financial  accounting  Standards No. 130,  Reporting  Comprehensive
Income and its  components  in financial  statements.  Statement 130 states that
comprehensive  income  includes  reported net income of a company,  adjusted for
items that are currently  accounted for as direct entries to equity, such as the
net unrealized gain or loss on securities  available for sale,  foreign currency
items, and minimum pension  liability  adjustments.  This statement is effective
for both interim and annual  periods  beginning  after  December  15,  1997.  As
required, the Company adopted Statement 130 in the first quarter of fiscal 1999,
and reported comprehensive income in accordance with the new statement.


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

Financial Condition

         Total assets  increased  $1.7 million or 3.0% to $57.7  million at June
30, 2000 from $56.0  million at September  30, 1999.  The increase was primarily
attributable to a $1.2 million increase in the Bank's loans receivable, net. The
Bank's total  liabilities  increased  $1.5 million or 3.0%,  to $52.2 million at
June 30,  2000 from $50.7  million at  September  30,  1999.  The  increase  was
primarily attributable to a $1.3 million increase in deposits.

         Stockholder'  equity  increased  $155,000  to $5.44  million or 9.4% of
total  assets at June 30,  2000,  as compared  to $5.2  million or 9.3% of total
assets at September 30, 1999. The increase in stockholders'  equity is primarily
attributable to net income of $104,000,  and amortization of ESOP and Restricted
Stock  Plan  shares  of  $102,000  offset  by  an  increase  in  the  unrealized
depreciation on available for sale securities net of taxes of $48,000.

Results of Operations

         Net  Income.  The Bank's net income  decreased  $61,000 for the quarter
ended June 30, 2000 to $2,000 from $63,000 for the quarter  ended June 30, 1999.
The  decrease  in net  income  was  attributable  to an  increase  in the Bank's
non-interest  expenses of $113,000 offset by an increase in non-interest  income
of  $31,000.  The  increase  in other  non-interest  expenses  was mostly due to
expenses  associated  with the opening of the new branch  office  located in Mt.
Laurel,  New  Jersey.  Net income for the nine  months  ended June 30,  2000 was
$104,000 compared to $141,000 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  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.


                                       9
<PAGE>

         Net interest income after provision for loan losses  decreased  $7,000,
or .7%,  to  $434,000  for the  quarter  ended June 30,  2000 as compared to the
quarter  ended June 30, 1999.  The decrease was primarily due to the increase in
the cost of funds. Net interest income after provisions for loan losses was $1.3
million for the nine months ended June 30, 2000 compared to $1.2 million for the
same period in 1999.

         Provision  for Loan Losses.  Provision  for loan losses was $13,000 for
the nine months ended June 30, 2000,  as compared to $31,000 for the nine months
ended  June  30,  1999.  For the  quarter  ended  June  30,  2000 no  additional
provisions were deemed necessary.

         Management  believes the  allowance for loan losses are 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  $31,000 or 56.0%
from $55,000 for the quarter  ended June 30, 1999 to $86,000 for the same period
in 2000.  This increase in the Bank's  non-interest  income was due to a gain on
sale of Real Estate  Owned of $33,000.  Non-interest  for the nine months  ended
June 30, 2000 was $194,000 as compared to $183,000 for the same period in 1999.

         Non-Interest Expense.  Non-interest expense increased $111,000 or 27.0%
from approximately  $405,000 for the quarter ended June 30, 1999 to $516,000 for
the same period in 2000.  The  increase in the Bank's  non-interest  expense was
primarily  due to a  $66,000  increase  in  other  non-interest  expense  and an
increase of $33,000 in the Bank's  compensation  and  benefits.  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.  The  increase  in these
expenses was mostly due to the opening of the new branch  office  located in Mt.
Laurel.  Non-interest expenses for the nine months ended June 30, 2000 were $1.4
million compared to $1.2 million for the same period in 1999.

         Income Tax Expense.  Income tax expense  decreased $27,000 from $29,000
for the quarter ended June 30, 1999 to $1,600 for the same period in 2000.  This
decrease in income tax expense is due to the decrease in income.

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 15.3% at June 30,
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
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.

                                       10
<PAGE>

         Net cash used by the Bank's  operating  activities (the cash effects of
transactions  that  enter  into the Bank's  determination  of net  income  e.g.,
non-cash items,  amortization and  depreciation,  provision for loan losses) for
the nine months  ended June 30,  2000 was  $107,000,  a decrease of $15,000,  as
compared to the same period in 1999.  The decrease in 2000 was  primarily due to
an  increase in other  accrued  liabilities  of $27,000  offset by net income of
$101,000,  depreciation of $63,000 and a decrease in accrued interest receivable
of $128,000.

         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
nine months ended June 30, 2000,  totaled $1.1 million compared to $12.8 million
for the same period in 1999.  The difference is  attributable  to an increase in
net loans  receivable  of $6.3 million in 1999  compared to $1.4 million in 2000
and  purchases of securities of $8.3 million in 1999 compared to no purchases in
2000.

         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 nine months ended June 30,  2000,  totaled  $1.7  million,  a
decrease of $8.5 million as compared to the nine months ended June 30, 1999.

         The  decrease  in  attributable  to a net  increase in deposits of $5.7
million in 1999 versus $1.3  million in 2000 and  borrowings  of $4.4 million in
1999 versus $414,000 in 2000.

         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 30, 1999, with tangible, core and
risk based capital ratios of 8.35%, 8.35% and 17.27% 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
         ---------------------------------------------------

         None.

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

         Not applicable.

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

         (a)      Exhibits

                  27       Financial Data Schedule (electronic filing only)

         (b)      Current  Reports  on  Form 8-K filed during the quarter  ended
                  June 30, 2000:

                  The  registrant  filed a Current  Report on Form 8-K dated May
         16, 2000 (Items 5 and 7) to announce its intention to repurchase 5%, or
         18,992,  shares of its  outstanding  common  stock in the open  market.
         Subsequent to the quarter ended June 30, 2000, the  registrant  filed a
         Current Report on Form 8-K dated July 20, 2000 to report the completion
         of the repurchase of 18,992 shares of common stock.

                                       12


<PAGE>



                                   SIGNATURES


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


                                      FARNSWORTH BANCORP, INC.



Date: August 3, 2000               By:/s/Gary N. Pelehaty
                                      ------------------------------------------
                                      Gary N. Pelehaty
                                      President and Chief Executive Officer
                                      (Principal Executive Officer)




Date: August 3, 2000               By:/s/Charles Alessi
                                      ------------------------------------------
                                      Charles Alessi
                                      Vice President, Chief Financial Officer,
                                      Secretary and Treasurer
                                      (Principal Financial and Accounting
                                      Officer)


                                       13