Exhibit 11.1 Litchfield Financial Corporation Computation of Earnings Per Share Three months ended March 31, 1996 1995 ---------- ---------- Net Income.............................................................. $ 798,000 $ 370,000 ========= ========= Net income per common share............................................. $ .15 $ .09 ========= ========= Weighted average number of common shares outstanding................... 5,177,285 3,890,507 Weighted average number of common stock equivalents outstanding: Stock Options..................................................... 232,135 141,343 --------- ---------- Fully diluted weighted average common and common equivalent shares outstanding (1) 5,429,420 4,031,850 ========== ========== <FN> (1) Primary weighted average number of common stock equivalents were 5,365,918 and 4,031,850 for the three months ended March 31, 1996 and 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>