SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM 10-QSB
(MARK ONE)
- ----
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
- ---- EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2006
-----------------
OR
- ----
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
- ---- EXCHANGE ACT OF 1934
For the transition period from __________to__________.
Commission File No. 0-24621
Farnsworth Bancorp, Inc.
- --------------------------------------------------------------------------------
(Exact name of Small Business Issuer as Specified in Its Charter)
New Jersey 22-3591051
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation (I.R.S. Employer
or Organization) Identification No.)
789 Farnsworth Avenue, Bordentown, New Jersey 08505
---------------------------------------------------
(Address of Principal Executive Offices)
(609) 298-0723
- --------------------------------------------------------------------------------
Issuer's Telephone Number, Including Area Code
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
YES X NO
------- ------
INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A SHELL COMPANY (AS DEFINED IN
RULE 12B-2 OF THE EXCHANGE ACT YES NO X
------- ------
Number of shares of Common Stock outstanding as of February 2, 2007: 650,530
-------
Transitional Small Business Disclosure Format (check one)
YES NO X
------- ------
CONTENTS
--------
PART 1 - FINANCIAL INFORMATION Page(s)
-------
Item 1. Financial Statements
Consolidated Statements of Financial Condition at December 31, 2006
(unaudited) and September 30, 2006 (audited)............................................ 1
Consolidated Statements of Income and Comprehensive Income for the three
months ended December 31, 2006, and 2005 (unaudited).................................... 2
Consolidated Statements of Cash Flows for the three months ended
December 31, 2006 and 2005 (unaudited).................................................. 3
Notes to Financial Statements........................................................... 4
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations................................................................... 6
Item 3. Controls and Procedures................................................................. 8
PART II - OTHER INFORMATION
Item 1. Legal Proceedings....................................................................... 9
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds............................. 9
Item 3. Defaults upon Senior Securities......................................................... 9
Item 4. Submission of Matters to a Vote of Security Holders..................................... 9
Item 5. Other Information....................................................................... 9
Item 6. Exhibits ............................................................................... 9
Signatures ........................................................................................ 10
Certifications..................................................................................... 11
i
FARNSWORTH BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, SEPTEMBER 30,
2006 2006
------------- -------------
ASSETS (UNAUDITED) (AUDITED)
Cash and due from banks $ 10,268,957 $ 9,248,363
Securities available for sale 20,718,950 19,962,480
Securities held to maturity 155,675 161,862
Loans receivable, net 74,968,658 73,894,943
Accrued interest receivable 488,743 481,452
Federal Home Loan Bank of New York (FHLB) stock
at cost substantially restricted 202,600 204,700
Prepaid income taxes 318,065 374,919
Deferred income taxes 241,271 202,141
Premises and equipment 2,063,325 2,100,403
Other assets 111,061 94,938
------------- -------------
Total assets $ 109,537,305 $ 106,726,201
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 99,834,699 $ 96,844,712
Borrowings from FHLB 447,212 489,941
Advances by borrowers for taxes and insurance 212,353 215,480
Accrued interest payable 157,257 130,637
Accounts payable and other accrued
expenses 157,207 196,968
------------- -------------
Total liabilities 100,808,728 97,877,738
------------- -------------
Preferred stock $.10 par value, 1,000,000
shares authorized; none issued and
outstanding
Common stock $.10 par value, 5,000,000 shares authorized;
662,698 shares issued, at December 31, 2006 and September
30, 2006; shares outstanding 650,535 at December 31, 2006
and September 30, 2006 respectively 66,270 66,270
Additional paid in capital 8,483,529 8,483,529
Retained earnings substantially restricted 893,748 1,028,671
Treasury stock at cost 12,163 shares at December 31, 2006
and September 30, 2006 (118,521) (118,521)
Common stock aquired by
employee stock ownership plan (ESOP) (187,131) (192,411)
Accumulated other comprehensive income , unrealized
depreciation on available for sale securities,
net of taxes (409,318) (419,075)
------------- -------------
Total stockholders' equity 8,728,577 8,848,463
------------- -------------
Total liabilities and
stockholders' equity $ 109,537,305 $ 106,726,201
============= =============
SEE NOTES TO FINANCIAL STATEMENTS
1
FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
AND COMPREHENSIVE (LOSS) INCOME
(Unaudited)
THREE MONTHS ENDED
DECEMBER 31,
--------------------------
2006 2005
----------- -----------
Interest income:
Loans receivable $ 1,282,405 $ 1,260,569
Securities 246,219 228,917
Federal funds sold 95,591 63,807
----------- -----------
Total interest income 1,624,215 1,553,293
----------- -----------
Interest expense:
Deposits 832,742 576,395
Federal Home Loan Bank advances 6,821 9,280
----------- -----------
Total interest expense 839,563 585,675
----------- -----------
Net interest income 784,652 967,618
Provision for loan losses -- 30,000
----------- -----------
Net interest income after
provision for loan losses 784,652 937,618
----------- -----------
Noninterest income:
Fees and other service charges 55,752 70,057
Net realized gain on available for sale:
Securities 3,125 5,156
----------- -----------
Total noninterest income 58,877 75,213
----------- -----------
Noninterest expense:
Compensation and benefits 496,043 465,748
Occupancy and equipment 126,860 126,860
Professional fees 24,444 77,033
Service fees 76,085 66,257
Merger expenses 121,032
Other 90,361 112,259
----------- -----------
Total noninterest expense 934,825 848,157
----------- -----------
(Loss) Income before provision for income
tax expense (91,296) 164,674
Provision for income tax expense 11,100 74,500
----------- -----------
Net (loss) income (102,396) 90,174
Other comprehensive income (loss), net of taxes
Unrealized gain (loss) on securities
available for sale 11,632 (108,045)
Reclassification adjustments for gains
included in net income (1,875) (3,094)
----------- -----------
Comprehensive loss $ (92,639) $ (20,965)
=========== ===========
Net (loss) income per common share:
Basic $ (0.16) $ 0.14
Diluted $ (0.16) $ 0.14
Weighted average number of shares
outstanding during the period:
Basic 632,900 627,732
Diluted 632,900 667,179
SEE NOTES TO FINANCIAL STATEMENTS
2
FARNSWORTH BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED DECEMBER 31
2006 2005
------------ ------------
Cash flows from operating activities:
Net (loss) income $ (102,396) $ 90,174
------------ ------------
Adjustments to reconcile net income
to net cash provided by operating activities
Depreciation and amortization 38,065 36,903
Stock compensation 5,280 13,244
Provision for loan losses -- 30,000
Net gain on sale of AFS securities (3,125) (5,156)
Change in:
Accrued interest receivable (7,291) 15,868
Other assets (16,123) (27,230)
Advances from borrowers (3,127) (117,083)
Accrued and deferred income taxes 11,219 (103,602)
Accrued interest payable 26,620 18,263
Other accrued liabilities (39,761) 8,712
------------ ------------
Total adjustments 11,757 (130,081)
------------ ------------
Net cash used in operating
activities (90,639) (39,907)
------------ ------------
Cash flows from investing activities:
Net change in loans receivable (1,073,715) (1,832,942)
Redemption of securities, held to maturity 6,187 198,449
Redemption of securities, available for sale 261,670 250,624
Proceeds from sale of securities available for sale 2,961,562 3,931,562
Purchase of securities, available for sale net (3,960,315) (5,906,570)
Redemption of FHLB stock 2,100 348,800
Purchase of premises and equipment (987) (7,408)
------------ ------------
Net cash used in investing activities (1,803,498) (3,017,485)
------------ ------------
Cash flows from financing activities:
Net change in deposits 2,989,987 (50,639)
Repayment of Federal Home Loan Bank Borrowings (42,729) (40,283)
Dividends paid (32,527) (32,526)
------------ ------------
Net cash provided by (used in) financing activities 2,914,731 (123,448)
------------ ------------
Net change in cash 1,020,594 (3,180,840)
Cash at beginning of period 9,248,363 10,278,409
------------ ------------
Cash at end of period $ 10,268,957 $ 7,097,569
============ ============
Supplemental disclosure:
Cash paid during the period for:
Interest $ 812,943 $ 567,412
============ ============
Income taxes $ -- $ 125,750
============ ============
Non cash items:
Unrealized gain (loss) on securities available
for sale, net of deferred income taxes $ 9,757 $ (111,139)
============ ============
SEE NOTES TO FINANCIAL STATEMENTS
3
FARNSWORTH BANCORP, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 1. PRESENTATION OF FINANCIAL INFORMATION
-------------------------------------
The accompanying unaudited consolidated interim financial statements include the
accounts of Farnsworth Bancorp, Inc. (the "Company") and its subsidiaries
Peoples Savings Bank (the "Bank") and Peoples Financial Services, Inc. The
accompanying unaudited consolidated interim financial statements have been
prepared in accordance with the instructions to Form 10-QSB. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. The accounting
and reporting policies of the Company conform in all material respects to
generally accepted accounting principles and to general practice within the
thrift industry. It is the opinion of management that the accompanying unaudited
consolidated interim financial statements reflect all adjustments, which are
considered necessary to report fairly the financial position as of December 31,
2006, the Consolidated Statements of Income and Comprehensive Income for the
three months ended December 31, 2006 and 2005, and the Consolidated Statements
of Cash Flows for the three months ended December 31, 2006 and 2005. The results
of operations for the three months ended December 31, 2006 are not necessarily
indicative of results that may be expected for the entire year ending September
30, 2007, or for any other period. The accompanying unaudited consolidated
interim financial statements should be read in conjunction with the Company's
September 30, 2006 consolidated financial statements, including the notes
thereto, which are included in the Company's Annual Report on Form 10-KSB for
the fiscal year ended September 30, 2006.
In preparing the financial statements, management is required to make estimates
and assumptions that affect the reported amount of assets and liabilities, the
disclosure of contingent assets and liabilities and the reported revenues and
expenses. Actual results could differ significantly from those estimates. In
addition, various regulatory agencies, as an integral part of their examination
process, periodically review the Bank's allowance for loan losses and foreclosed
real estate. Such agencies may require the Bank to recognize additions to the
allowance for loan losses or additional write-downs on foreclosed real estate
based on their judgments about information available to them at the time of
their examination.
Nature of Operations
- --------------------
The Company is a unitary savings and loan holding company. The Bank operates
four branches in Burlington County, New Jersey. The Bank offers customary
banking services, including accepting checking, savings and time deposits and
the making of commercial, real-estate and consumer loans, to customers who are
predominantly small and middle-market businesses and middle-income individuals.
The Company also offers brokerage, investment advisory services and insurance
services to the general public through Peoples Financial Services, Inc., a
subsidiary organized for the sale of mutual funds and insurance through a third
party networking agreement.
4
NOTE 2. NET (LOSS) INCOME PER COMMON SHARE
----------------------------------
Basic net income per common share is calculated by dividing net income by the
number of shares of common stock outstanding, adjusted for the unallocated
portion of shares held by the Bank's Employee Stock Ownership Plan ("ESOP") and
the Bank's restricted stock plan ("RSP"). Diluted net income per share is
calculated by adjusting the number of shares of common stock outstanding to
include the effect of stock options, stock-based compensation grants and other
securities, if dilutive, generally, using the treasury stock method. Common
Stock equivalents of the Company's common stock as of December 31, 2006 were
excluded in the computation of diluted earnings per share as the computation
would be anti-dilutive.
For the three months ended December 31
------------------------------------------------------------------------
2006 2005
---- ----
Weighted Per- Weighted Per-
Average Share Average Share
Income Shares Amount Income Shares Amount
------ ------ ------ ------ ------ ------
Net income available
To common shareholders $(102,396) 650,535 $90,174 650,535
ESOP Shares, not
Committed to be released (17,635) (22,803)
-----------------------------------------------------------------------
Basic (Loss) net income (102,396) 632,900 $(0.16) $90,174 627,723 $0.14
Common Stock equivalents 39,447
-----------------------------------------------------------------------
Diluted
Net (Loss) income per share $(102,396) 632,900 $(0.16) $90,174 667,179 $0.14
========================================================================
NOTE 3. INVESTMENT SECURITIES
---------------------
The Bank's investments in securities are classified in two categories and
accounted for as follows:
SECURITIES HELD TO MATURITY. Mortgage backed securities for which the Bank has
the positive intent and ability to hold to maturity are reported at cost,
adjusted for amortization of premiums and accretion of discounts which are
recognized in interest income using the interest method over the period to
maturity.
SECURITIES AVAILABLE FOR SALE. Securities available for sale are reported at
market value and consist of certain debt and equity securities not classified as
trading or securities to be held to maturity.
Declines in the fair value of individual held to maturity and available for sale
securities below their cost that are other than temporary will result in
write-downs of the individual securities to their fair value. The related
write-downs will be included in earnings as realized losses.
Unrealized holding gains and losses, net of tax, on securities available for
sale are reported as a net amount in a separate component of equity until
realized.
5
Gains and losses on the sale of securities available for sale are determined
using the specific-identification method.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The Company may from time to time make written or oral "forward-looking
statements, " including statements contained in the Company's filings with the
Securities and Exchange Commission (including this Quarterly Report of Form
10-QSB), in its reports to stockholders and in other communications by the
Company, which are made in good faith by the Company pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve risks and uncertainties, such
as statements of the Company's plans, objectives, expectations, estimates and
intentions, that are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, among others,
could cause the Company's financial performance to differ materially from the
plans, objectives, expectations, estimates and intentions expressed in such
forward-looking statements: the strength of the United States economy in general
and the strength of the local economy in which the Company conducts operations;
the effects of, and changes in, trade, monetary and fiscal policies and laws,
including interest rate policies of the board of governors of the federal
reserve system, inflation, interest rate, market and monetary fluctuations; the
impact of changes in financial services' laws and regulations (including laws
concerning taxes, banking securities and insurance); technological changes; and
the success of the Company at managing the risks involved in the foregoing.
The Company cautions that the foregoing list of important factors is
not exclusive. The Company does not undertake to update any forward-looking
statement, whether written or oral, that may be made from time to time by or on
behalf of the Company.
RECENT DEVELOPMENTS
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 Bank's, Inc., common stock, or $27.50 in cash, or a combination of cash
and stock, and at the election of the Company's Farnsworth stockholders, subject
to an overall mix of 50 percent stock and 50 percent cash. The Merger is valued
at approximately $19.1 million. Sterling will be the surviving bank in the
Merger. The Agreement and the transactions contemplated thereby have been
approved by the stockholders of the Company. The company is awaiting for all
required regulatory approvals, as well as other customary conditions. The Merger
is expected to be completed during the first quarter of 2007. 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 SEC
on June 26, 2006.
FINANCIAL CONDITION
Total assets increased $2.8 million to $109.5 million at December 31,
2006 from $106.7 million at September 30, 2006. The increase was attributed to
an increase in cash and due from banks of $1.0 million, an increase in
securities available for sale of $756,000 and an increase in loan receivable net
of $1.1 million. The Company's total liabilities increased $2.9 million to
$100.8 million at December 31,
6
2006 from $97.9 million at September 30, 2006. The increase in liabilities was
attributable to an increase in deposits of $2.9 million.
Stockholders' equity was $8.7 million or 8.0% of total assets at December
31, 2006, as compared to $8.8 million or 8.3% of total assets at September 30,
2006. The decrease in stockholders' equity is primarily attributable to a net
loss of $102,000 and dividends paid of $33,000.
RESULTS OF OPERATIONS
NET LOSS. The Company's net income decreased $192,000 for the quarter ended
December 31, 2006 a net loss of $102,000 from net income of $90,000 for the
quarter ended December 31, 2006. The decrease in net income was mostly
attributable to a decrease in net interest income after provisions for loan
losses of $153,000, merger expenses of $121,000 partially offset by a decrease
in income taxes of $64,000.
NET INTEREST INCOME. Net interest income is the most significant component
of the Company's income from operations. Net interest income is the difference
between interest the Company receives on its interest earning assets, primarily
loans and investments, and interest the Company pays on its interest-bearing
liabilities, deposits and borrowings. Net interest income depends on the volume
of and rates earned on interest-earning assets and the volume of and rates paid
on interest-bearing liabilities.
Net interest income after provision for loan losses decreased $153,000, or
16.3%, to $785,000 for the quarter ended December 31, 2006 as compared to
$938,000 for the quarter ended December 31, 2005. The decrease was primarily due
to an increase in interest expense of $254,000 partially offset by an increase
in interest income of $71,000 and a decreases in provisions for loan losses of
$30,000. The Company's cost of funds increased as a result of higher market
interest rates.
PROVISION FOR LOAN LOSSES. No provision for loan losses was provided for
the three months ended December 31, 2006, compared to $30,000 for the three
months ended December 31, 2005.
Management believes the allowance for loan losses is at a level that is
adequate to provide for estimated losses. However, there can be no assurance
that further additions will not be made to the allowance and that such losses
will not exceed the estimated amount.
NON-INTEREST INCOME. Non-interest income decreased $16,000 or 75.0% to
$59,000 for the quarter ended December 31, 2006 from $75,000 for the same
quarter in 2005. The decrease was due to a decrease in deposit fees of $14,000.
NON-INTEREST EXPENSE. Non-interest expense increased $87,000 or 10.25% to
$935,000 for the quarter ended December 31, 2006 compared to $848,000 for the
same quarter in 2005. The increase in the Company's non-interest expense was
primarily due to merger expenses of $121,000 partially offset by a decrease in
professional fees of $53,000 and a decrease in other expenses of $22,000.
INCOME TAX EXPENSE. Income tax expense decreased by $64,000 for the quarter
ended December 31, 2006 to $11,000 compared to $75,000 for the same period in
2005. This change was due to the decrease in net income for the quarter ended
December 31, 2006.
7
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds are deposits, repayment of loans and
mortgage-backed securities, maturities of investment securities and
interest-bearing deposits with other banks, advances from the FHLB of New York,
and funds provided from operations. While scheduled repayments of loans and
mortgage-backed securities and maturities of investment securities are
predictable sources of funds, deposit flows, and loan prepayments are greatly
influenced by the general level of interest rates, economic conditions and
competition. The Company uses its liquidity resources principally to fund
existing and future loan commitments, maturing certificates of deposit and
demand deposit withdrawals, to invest in other interest-earning assets, to
maintain liquidity, and meet operating expenses.
Net cash used by the Company's operating activities (the cash effects of
transactions that enter into the Company's determination of net income e.g.,
non-cash items, amortization and depreciation, provision for loan losses) for
the three months ended December 31, 2006 was $91,000, an increase of $51,000
compared to the same period in 2005. The increase in 2006 was primarily
attributable to a net loss of $102,000 partially offset by accrued and deferred
income taxes of $115,000 and a decrease in provisions for loan losses of
$30,000.
Net cash used by the Company's investing activities (i.e., cash
disbursements, primarily for the purchase of the Company's investment securities
and mortgage-backed securities portfolios and the Company's loan portfolio) for
the three months ended December 31, 2006, totaled $1.8 million. This was a
decrease of $1.1 million from the quarter ended December 31, 2005. The use is
attributable to funding loans receivable net of $1.1 million and purchase of
available for sale securities of $4.0 million net, partially offset by
redemptions and proceeds from sale of securities available for sale of $3.2
million.
Net cash provided by the Company's financing activities (i.e., cash
receipts primarily from net increases in deposits and net decreases in FHLB
advances) for the three months ended December 31, 2006, totaled $2.9 million,
compared to cash used by financing activities of $123,000 for the same period in
2005. The increase is attributable to an increase in deposits of $3.0 million,
for the quarter ended December 31, 2006 compared to a decrease of $51,000 from
the same period in 2005.
Office of Thrift Supervision ("OTS") capital regulations applicable to the
Bank require savings institutions to meet three capital standards: (1) tangible
capital equal to 1.5% of total adjusted assets, (2) a leverage ratio (core
capital) equal to at least 3% of total adjusted assets, and (3) a risk-based
capital requirement equal to 8.0% of total risk-weighted assets. In addition,
the OTS prompt corrective action regulation provides that a savings institution
that has a leverage capital ratio of less than 4% (3% for institutions receiving
the highest examination rating) will be deemed to be "undercapitalized" and may
be subject to certain restrictions. The Bank was in compliance with these
requirements at December 31, 2006, with tangible, core and risk based capital
ratios respectively.
8
ITEM 3. CONTROLS AND PROCEDURES
(a) Evaluation of disclosure controls and procedures. Based on their
evaluation of the Company's disclosure controls and procedures (as defined in
Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")),
the Company's principal executive officer and principal financial officer have
concluded that as of the end of the period covered by this Quarterly Report on
Form 10-QSB such disclosure controls and procedures are effective to ensure that
information required to be disclosed by the Company in reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in Securities and Exchange Commission rules
and forms.
(b) Changes in internal control over financial reporting. During the
quarter under report, there was no change in the Company's internal control over
financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial reporting.
9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
The Registrant was not engaged in any material legal proceedings during
the quarter ended December 31, 2006. From time to time, the Bank is a party to
legal proceedings within the normal course of business wherein it enforces its
security interests in loans made by it, and other similar matters.
Item 2. Changes in Securities and Use of Proceeds
- --------------------------------------------------
Not applicable.
Item 3. Defaults Upon Senior Securities
- ----------------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------
(a) The Registrant held a special meeting of stockholders on December 18,
2006.
(b) Not applicable
(c) The purpose of the special meeting was to vote upon two proposals,
both of which were approved. The results of voting were as follows:
Proposal #1 - Approval of Agreement and Plan of Merger dated June 23,
2006
For: 421,724 Against: 11,940 Abstain: 6,143
Proposal #2 - Approval of a proposal to adjourn the special meeting if
necessary to solicit additional proxies
For: 404,787 Against: 27,532 Abstain: 7,488
(d) Not applicable
Item 5. Other Information
- --------------------------
(a) Not applicable.
(b) Not applicable.
Item 6. Exhibits
- ----------------
(a) Exhibits:
31 Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002
32 Certification pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FARNSWORTH BANCORP, INC.
Date: February 12, 2007 By: /s/ Gary N. Pelehaty
-------------------------------------------
Gary N. Pelehaty
President and Chief Executive Officer
(Principal Executive Officer)
Date: February 12, 2007 By: /s/ Charles Alessi
--------------------------------------------
Charles Alessi
Vice President, Chief Financial Officer,
Secretary and Treasurer
(Principal Financial and Accounting Officer)
12