FOR IMMEDIATE RELEASE                       FOR FURTHER INFORMATION CONTACT:
- ---------------------                       --------------------------------
December 27, 2006                           Gary N. Pelehaty, President and
                                            Chief Executive Officer
                                            (609) 298-0723

                            FARNSWORTH BANCORP, INC.
            ANNOUNCES REVISED AND CORRECTED RESULTS OF OPERATIONS FOR
                                   FISCAL 2006

         Bordentown,  New Jersey -- December 27, 2006 - Farnsworth Bancorp, Inc.
(OTC Bulletin Board "FNSW"), the parent holding company of Peoples Savings Bank,
Bordentown, New Jersey (the "Company"),  today announced that it had revised and
corrected its  previously  announced  results of operations  for the fiscal year
ended  September  30,  2006,  due to the  accounting  for  expenses  incurred in
connection with its pending merger with Sterling Banks,  Inc. and Sterling Bank.
Previously,  the Company  reported  net income of $203,000 or $.30 per share for
the fiscal year ended  September  30, 2006. As revised to account for the merger
expenses  incurred  to date,  the Company had a net loss of $245,855 or $.39 per
share  for the 2006  fiscal  year  ended,  after  accounting  for  approximately
$450,000  in merger  expenses.  After the  write-off  for the  merger  expenses,
stockholders' equity was $8.8 million or $13.60 per share at September 30, 2006,
as compared to $9.3 million or $14.29 per share as  previously  reported for the
same period.

         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  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.