[FARNSWORTH BANCORP, INC. LETTERHEAD]

FOR IMMEDIATE RELEASE                           FOR FURTHER INFORMATION CONTACT:
- ---------------------                           -------------------------------
November 7, 2006                                Gary N. Pelehaty
                                                President and CEO
                                               (609) 298-0723

                 FARNSWORTH BANCORP, INC. DECLARES CASH 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
29, 2006 to  stockholders  of record as of the close of business on November 20,
2006.  The directors  voted to pay this dividend  after  reviewing the Company's
results of operations and financial  condition at and for the quarter and fiscal
year ended  September  30, 2006.  "In view of our pending  merger with  Sterling
Bank,  which is expected to consummate next month, it is likely that this is the
last cash  dividend our  stockholders  will receive from us,"  remarked  Gary N.
Pelehaty, President and Chief Executive Officer of Farnsworth.

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