Exhibit 11.1 Litchfield Financial Corporation Computation of Earnings Per Share Three months ended ______________________ March 31, ______________________ 1997 1996 ____ ______ Net income $1,145,000 $ 798,000 ========== ========= Net income per common share $ .20 $ .14 ========== ========= Weighted average number of common shares outstanding 5,446,679 5,436,149 Weighted average number of common stock equivalents outstanding: Stock Option 344,990 264,742 ---------- --------- Fully diluted weighted average common and common equivalent shares outstanding (1) 5,791,669 5,700,891 ========= ========= (1) Primary weighted average number of common stock equivalents were 5,791,623 for the three months ended March 31, 1997 and 5,637,643 for the three months ended March 31, 1996. The difference between primary and fully diluted shares outstanding did not have a material effect on the calculation of earnings per share.