[STERLING BANK]







NEWS RELEASE

FOR IMMEDIATE RELEASE

DATE:     DECEMBER 19, 2006

CONTACT:  Robert H. King, President and CEO
          Sterling Banks, Inc./Sterling Bank (856) 273-5900

          Gary N. Pelehaty, President and CEO
          Farnsworth Bancorp, Inc.; Peoples Savings Bank (609) 298-0723


    STERLING BANK AND FARNSWORTH BANCORP, INC. ANNOUNCE SHAREHOLDER APPROVAL
                     OF HOLDING COMPANY FORMATION AND MERGER

Mt. Laurel, NJ, December 19, 2006 -- Sterling Bank (NASDAQ: STNJ) and Farnsworth
Bancorp, Inc.  (OTCBB:FNSW),  and its subsidiary,  Peoples Savings Bank, jointly
announced  today that  shareholders  of Farnsworth  have approved the previously
announced acquisition of Farnsworth Bancorp, Inc. by Sterling for cash and stock
in  a  merger  valued  at  approximately  $19  million.  In  addition,  Sterling
shareholders approved, at its annual meeting on December 12, 2006, the formation
of a holding company, Sterling Banks, Inc.

Commenting on the Sterling Bank shareholder approval,  Robert H. King, President
and CEO of Sterling Bank noted, "This is an extremely  important  organizational
step for Sterling Bank that will provide significant  corporate  flexibility and
enhanced  operating  options  as we  continue  to  build  the  company  and  its
business."

Gary N. Pelehaty,  President and Chief Executive Officer of Farnsworth,  stated,
"We believe that our shareholders  recognized the commitment of Sterling Bank to
our community banking philosophy and like the strong commercial lending focus of
Sterling Bank. We think our  shareholders  and customers are looking  forward to
the combining of these two community





banking  franchises  in order to obtain the best mix of products  and  services,
with the added advantage of Sterling's  additional  branch  locations and larger
size to better serve our customers."

The merger and holding company  reorganization  are still subject to approval by
federal banking  regulators and, if approved,  the reorganization and merger are
expected to be consummated in the first quarter of 2007.

Sterling  Bank is a community  bank  headquartered  in  Burlington  County,  New
Jersey.  Sterling Bank's main office is located in Mount Laurel, New Jersey, and
its six other  Community  Banking  Centers are located in Burlington  and Camden
Counties in New Jersey. Sterling Bank began operations in December 1990 with the
purpose of serving consumers and small to medium-sized  businesses in its market
area. The Bank's  deposits are insured to the applicable  regulatory  limits per
depositor  by the Federal  Deposit  Insurance  Corporation.  Sterling  Bank is a
member of the Federal  Reserve  System.  The common  stock of  Sterling  Bank is
traded on the NASDAQ  Capital  Market under the symbol  "STNJ".  For  additional
information about Sterling Bank visit our website at HTTP://WWW.STERLINGNJ.COM.

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. Peoples Savings
Bank's  deposits  are  insured up to the  maximum  legal  amount by the  Federal
Deposit Insurance Corporation (FDIC). Farnsworth Bancorp, Inc.'s common stock is
traded on the OTC Bulletin Board under the symbol "FNSW."

This news  release  may  contain  certain  forward-looking  statements,  such as
statements of Sterling Bank's or Farnsworth's plans,  objectives,  expectations,
estimates and  intentions.  Forward-looking  statements may be identified by the
use of words such as "expects,"  "subject,"  "believe," "will," "intends," "will
be" or  "would."  These  statements  are  subject  to  change  based on  various
important  factors  (some of which are beyond  Sterling  Bank's or  Farnsworth's
control) and actual results may differ materially.  Accordingly,  readers should
not place  undue  reliance  on any  forward-looking  statements  (which  reflect
management's  analysis  only as of the date of  which  they  are  given).  These
factors  include general  economic  conditions,  trends in interest  rates,  the
ability of our  borrowers to repay their loans,  the ability of Sterling Bank to
effectively  manage its growth,  and results of regulatory  examinations,  among
other factors.  Sterling Bank and Farnsworth  caution that the foregoing list of
important  factors is not exclusive.  Readers should  carefully  review the risk
factors described in other documents  Sterling Bank files from time to time with
the Federal  Reserve,  including  its Annual  Report on Form 10-KSB for the year
ended December 31, 2005,  Quarterly Reports on Form 10-QSB,  and Current Reports
on Form 8-K and documents Farnsworth files from time to time with the Securities
and Exchange Commission, including Farnsworth's Annual Report on Form 10-KSB for
the year ended September 30, 2005, Quarterly Reports on Form 10-QSB, and Current
Reports on Form 8-K.