FOR IMMEDIATE RELEASE    FOR FURTHER INFORMATION CONTACT:
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December 11, 2006        Gary N. Pelehaty, President and Chief Executive Officer
                         (609) 298-0723

                            FARNSWORTH BANCORP, INC.
                             ANNOUNCES 2006 EARNINGS

     Bordentown, New Jersey -- December 11, 2006 - Farnsworth Bancorp, Inc. (OTC
Bulletin Board  "FNSW"),  the parent  holding  company of Peoples  Savings Bank,
Bordentown, New Jersey (the "Company"), today announced that for the fiscal year
ended  September 30, 2006,  it had net income of $203,000 or $.30 per share,  as
compared to net income of $336,000 or $.51 per share,  for the fiscal year ended
September 30, 2005. Gary N. Pelehaty,  President and Chief Executive  Officer of
the Company,  attributed the decrease in earnings during the 2006 fiscal year to
net interest margin compression due to rising market interest rates.

     Total  assets of the Company  were $107  million at  September  30, 2006 as
compared to $104 million at September  30, 2005.  Stockholders'  equity was $9.3
million or $14.29 per share at September  30, 2006,  as compared to $9.2 million
or $14.21 per share at September 30, 2005.

     On June 23, 2006, the Company,  Sterling  Banks,  Inc. and Sterling Bank, a
New Jersey chartered commercial bank ("Sterling"), entered into an Agreement and
Plan of Merger (the  "Agreement").  Under the Agreement,  the Company will merge
with and into Sterling Banks, Inc. (In Organization),  the proposed bank holding
company for Sterling (the  "Merger"),  in exchange for 2.3625 shares of Sterling
Banks,  Inc. common stock, or $27.50 in cash, or a combination of cash and stock
(at the election of the Company's stockholders), subject to an overall mix of 50
percent stock and 50 percent cash. The Merger is valued at  approximately  $19.1
million. Sterling Banks, Inc. and Sterling will be the surviving entities in the
Merger. The Agreement and the transactions  contemplated  thereby are subject to
the approval of the stockholders of Sterling and the Company, and the receipt of
all required regulatory approvals,  as well as other customary  conditions.  The
Merger is currently  expected to be completed  during the first quarter of 2007,
although  no  assurances  can be given as to whether or when the Merger  will be
consummated. For more information regarding the Agreement and the Merger, please
refer to the Company's  Current Report on Form 8-K dated June 23, 2006, as filed
with the  Securities  and Exchange  Commission  on June 26, 2006,  and our Joint
Proxy Statement/Prospectus dated November 2, 2006.

     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.