Exhibit 11.1 Litchfield Financial Corporation Computation of Earnings Per Share Three months ended Nine months ended _______________________ _____________________ September 30, September 30, _______________________ _____________________ 1996 1995 1996 1995 __________ __________ __________ __________ Net Income $1,946,000 $1,454,000 $4,308,000 $2,799,000 ========== ========== ========== ========== Net income per commmon share $ .34 $ .33 $ .75 $ .64 ========== ========== ========== ========== Weighted average number of common shares outstanding 5,443,319 4,120,675 5,440,745 4,103,811 Weighted average number of common stock equivalents outstanding: Stock Options 277,605 291,691 274,646 294,986 --------- --------- ------- --------- Fully diluted weighted average common and common equivalent shares outstanding (1) 5,720,924 4,412,366 5,715,391 4,398,797 ========= ========= ========= ========= <FN> (1) Primary weighted average number of common stock equivalents were 5,697,127 and 5,681,431 for the three and nine months ended September 30, 1996 and 4,395,274 and 4,287,744 for the three and nine months ended September 30, 1995, respectively. The difference between primary and fully diluted shares outstanding did not have a material effect on the calculation of earnings per share. </FN>