UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
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FARNSWORTH BANCORP, INC.
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(Name of Registrant as Specified in Its Charter)
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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.