FOR IMMEDIATE RELEASE                       FOR FURTHER INFORMATION CONTACT:
March 16, 2004                              Gary N. Pelehaty, President and CEO
                                            (609) 298-0723

              FARNSWORTH BANCORP, INC. ANNOUNCES 20% STOCK DIVIDEND

         Bordentown,  New Jersey-- Farnsworth Bancorp,  Inc. (OTC Bulletin Board
FNSW), parent holding company of Peoples Savings Bank,  Bordentown,  New Jersey,
today announced that the Company's Board of Directors had declared a 20% a stock
dividend.  The stock  dividend is payable on April 8, 2004, to  stockholders  of
record as of March 29, 2004.

         Gary N.  Pelehaty,  President of the Company,  stated that the Board of
Directors  "was very  pleased  to declare  this  dividend  as another  method to
increase shareholder value in the Company and also increase the liquidity of the
stock. As a result of the Board's action today,  the  outstanding  shares of the
Company's  common  stock will  increase by  approximately  86,607  shares,  from
433,039 shares outstanding to 519,646 shares outstanding."

         Peoples Savings Bank is a federally  chartered stock savings bank which
conducts its business from its main office in  Bordentown,  New Jersey and three
branch  offices  located in Florence,  Mt. Laurel and Marlton,  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.