[FARNSWORTH BANCORP, INC. LETTERHEAD]

FOR IMMEDIATE RELEASE                   FOR FURTHER INFORMATION CONTACT:
- ---------------------                   -------------------------------
October 21, 2003                        Gary N. Pelehaty
                                        President and CEO
                                        (609) 298-0723


                       FARNSWORTH BANCORP, INC. ANNOUNCES
                               20% STOCK DIVIDEND

         Bordentown,  New Jersey -- Farnsworth Bancorp, Inc. (OTC BB-FNSW),  the
parent holding company of Peoples Savings Bank,  Bordentown,  New Jersey,  today
announced the declaration of a $0.05 per share cash dividend payable on November
14,  2003 to  stockholders  of record as of the close of business on November 4,
2003.  The directors  voted to pay this dividend  after  reviewing the Company's
results of operations  and financial  condition at and for the fiscal year ended
September  30,  2003.  "This  dividend  is being  paid as a result of  continued
profitability  of the  Company and is a  continuation  of our efforts to enhance
shareholder value in our Company," according to Mr. Gary N. Pelehaty,  President
and CEO of the Company.

         The Board  anticipates  paying cash  dividends on a semi-annual  basis,
subject to determination  and declaration by the Board of Directors,  which will
take into account a number of factors,  including the financial condition of the
Company and the Bank, and regulatory restrictions on the payment of dividends by
the Bank to the Company . If paid,  such  dividends may be reduced or eliminated
in future periods.

         Peoples Savings Bank is a federally  chartered stock savings bank which
conducts its  business  from its main office in  Bordentown,  New Jersey and two
branch  offices  located in Florence  and Mt.  Laurel,  New  Jersey.  The Bank's
deposits  are insured up to the  maximum  legal  amount by the  Federal  Deposit
Insurance  Corporation  (FDIC).  The Company's common stock is traded on the OTC
Bulletin Board under the symbol "FNSW."

         This release may contain  forward-looking  statements.  We caution that
such statements may be subject to a number of  uncertainties  and actual results
could differ materially and, therefore,  readers should not place undue reliance
on any forward-looking statements.  Farnsworth Bancorp, Inc. does not undertake,
and  specifically  disclaims,  any obligation to publicly release the results of
any revisions that may be made to any forward-looking  statements to reflect the
occurrence of anticipated or  unanticipated  events or  circumstances  after the
date of such statements.


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