Exhibit 11.1
Litchfield Financial Corporation
Computation of Earnings Per Share
Three months ended Nine months ended
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September 30, September 30,
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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>