Exhibit 99.1
                     FIRST LITCHFIELD FINANCIAL CORPORATION

News Release
For Immediate Release

       First Litchfield Financial Corporation Announces Six-Month Earnings

Litchfield, Connecticut--August 10, 2007--First Litchfield Financial Corporation
(NASDQ:FLFL)  (the "Company") the holding company for The First National Bank of
Litchfield (the "Bank")  reported  earnings for the three (3) months and six (6)
months  ended June 30,  2007.  Earnings  for the second  quarter of 2007 totaled
$582,000,  which is an  increase  of 23% from second  quarter  2006  earnings of
$475,000.  Quarterly  basic and  diluted net income per share for 2007 were $.26
per share,  compared to $.21 per basic and diluted  share for the same period in
2006.

President  and CEO Joseph J. Greco stated,  "We are  encouraged by the growth in
quarterly earnings in spite of the difficult economic environment.  I am pleased
by the results of our Wealth Management division and also by the early successes
of First Litchfield Leasing."

However, while net income for the quarter ended June 30, 2007 was up, net income
for the  Company  for the six  months  ended  June 30,  2007  totaled  $985,000,
representing a decrease of $114,000,  or 10% from earnings of $1,099,000 for the
same period in 2006.  Basic and  diluted net income per share for the  six-month
period ended June 30, 2007, was $.44 per share,  as compared with $.49 basic and
diluted net income per share, for the same period in 2006.

Net interest  income for the second quarter of 2007  increased  $101,000 or 3.2%
from the second quarter of 2006. The tax equivalent net interest margin improved
from  3.00% in the second  quarter  of 2006 to 3.02% for the  second  quarter of
2007.  The  increase  in the net  interest  income was due to  increased  income
attributable  mainly to an improved mix of earning assets,  from shifting assets
from  investments  to loans,  as well as to higher  levels  of  earning  assets.
Average  earning assets for the second quarter of 2007 totaled $457 million,  an
overall  increase of $8 million from the second  quarter of 2006.  Average loans
and leases  increased  by $51  million,  or 20.1%.  The  flattened  yield  curve
however,  continues to challenge the return on earning asset growth and resulted
in  increased  funding  costs which  offset much of the increase in net interest
income.

Net interest income for the first six months of 2007 totaled  $6,483,000,  which
was a decrease of $21,000 or 0.3% from the same period in 2006. The net interest
margin (net interest income divided by average earning assets) was 2.94% for the
six-month  period  ended June 30, 2007 which was a decrease  of 14 basis  points
from the margin of 3.08% for the six months ended June 30, 2006.  These  results
are  reflective of the pressures on the flat and inverted yield curve as well as
the  competitive  environment for growing retail  deposits.  Over the past year,
funding costs have increased 77 basis points, from 2.96% to 3.73%.  However, the
tax-equivalent  yield on earning  assets has only  increased 53 basis points for
the same period.  It is anticipated that the continued  emphasis on shifting the
asset mix from investments to loans,  deposit growth and cost efficient  funding
should help to protect earnings from further margin erosion. Consistent with

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                                                                    Exhibit 99.1


that goal,  net loans and leases  increased  $12,955,000  over the year-end 2006
amount.  Growth during the first six months of 2007 was in residential  mortgage
loans  and in  lease  receivables,  which  were up  $7,146,000  and  $6,737,000,
respectively, since year-end 2006.

All  categories of retail  deposits  increased  over their  respective  year-end
levels.  This increase is attributed to the Bank's  expansion due to the opening
of three (3) new branches  during 2006 as well as to an  increasing  emphasis on
the development and retention of commercial and small business accounts.  Demand
deposits  as of June 30,  2007  totaled  $72,754,000  which was an  increase  of
$4,252,000,  or 6.2%.  Savings  deposits  increased  $2,768,000,  due to  higher
municipal  NOW deposits and  increased  Health  Savings  Accounts.  Money market
deposits  increased by $7,167,000,  or 10.1%,  due to growth in the relationship
money market deposit product and higher balances in deposits held for the Bank's
trust customers.

Year-to-date  noninterest  income for the six months ended June 30, 2007 totaled
$1,621,000, up $249,000, or 18%, from noninterest income from the same period in
2006.  Trust fee  income  totaled  $670,000  which  represents  an  increase  of
$128,000,  or 24%,  from the first six months of 2006.  This  increase is due to
fees  from  investment  management  services  as a  result  of  the  efforts  of
attracting key personnel for investment  management.  Other  noninterest  income
increased by $30,000,  or 10% resulting  mostly from increased  revenue from the
Bank's retail  investment  products.  Banking  service  charges and fees totaled
$647,000,  increasing  16%,  from the previous  year due to increased fee income
from deposit overdraft and uncollected fees, credit card interchange  income and
non-customer ATM fees. Noninterest income for the second quarter of 2007 totaled
$827,000,  which is an increase of 17.4% from the $704,000 earned for the second
quarter  of 2006.  This  improvement  is due to  increases  in trust  income and
banking  service  charges and fees,  such as fees from  deposit  overdrafts  and
uncollected funds, interchange fees and non-customer ATM fees.

Six-month  noninterest  expense for the six months  ended June 30, 2007  totaled
$6,909,000, and represented an increase of $529,000, or 8%, from the same period
of 2006. Staffing, occupancy and equipment costs, particularly as they relate to
the new branches  opened during 2006,  resulted in these  increases.  Offsetting
some of the increase in costs were decreases in advertising  costs reflective of
the three (3) branch  openings in 2006.  Also,  costs for computer  software and
technology  consulting  have been  reduced  due to the change in the Bank's core
processor  and lower costs for exam and audit fees as they relate to  regulatory
reporting and the Company's plans for implementing  Sarbanes Oxley  initiatives.
Non-interest  expense  for the second  quarter of 2007  totaled  $3,452,000,  an
increase  of  $169,000  or 5.1%  from the  similar  period in 2006.  The  branch
expansion  initiatives  of 2006 are primarily  responsible  for the increases in
salaries,  benefits,  occupancy,   equipment,  supplies  and  other  noninterest
expenses.  Offsetting  the  increased  costs are reduced  expenses  for computer
services, legal and advertising.  These decreases were also reflective of higher
2006 costs related to the change in core  processor  and previous  year's branch
openings and promotions.

Statements  contained in this news release  contain  forward-looking  statements
within the  meaning of the  Private  Securities  Litigation  Reform Act of 1995.
These statements are based on the beliefs and expectations of management as well
as the assumption made using information

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                                                                    Exhibit 99.1

currently  available to management.  Since these statements reflect the views of
management   concerning   future  events,   these   statements   involve  risks,
uncertainties  and  assumptions,  including,  among  others:  changes  in market
interest  rates  and  general  and  regional  economic  conditions;  changes  in
government  regulations;  changes in accounting  principles;  and the quality or
composition of the loan and investment  portfolios and other factors that may be
described in the Company's  quarterly reports on Form 10-Q and its annual report
on Form 10-K, each filed with the Securities and Exchange Commission,  which are
available  at  the  Securities  and  Exchange   Commission's   internet  website
(www.sec.gov)  and to which reference is hereby made.  Therefore,  actual future
results may differ  significantly from results discussed in the  forward-looking
statements.

The First National Bank of Litchfield is a community bank operating full-service
banking  offices  in Canton,  Goshen,  Litchfield,  Marble  Dale,  New  Milford,
Roxbury,  Washington  and  Torrington.  The Bank  maintains a full service Trust
department that offers asset management,  custody and estate settlement services
to  individuals,  non-profit and commercial  customers.  Additionally,  the Bank
offers  non-deposit retail investment  products such as mutual funds,  annuities
and insurance through its relationship with Infinex Investments, Inc. The Bank's
subsidiary,  First  Litchfield  Leasing  Corporation,   provides  middle  market
equipment  leasing/financing,  to the  commercial  markets  of  Connecticut  and
Massachusetts. The Company's website address is www.fnbl.com.

Contact:
  Joseph J. Greco, President and CEO
  (860) 567-6438

                        Selected Financial Results Follow



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                                                                    Exhibit 99.1


                        First Litchfield Financial Corp.


                      Selected Consolidated Financial Data
                                   (Unaudited)



Period end balance sheet data:                            June 30,
                                                   2007                2006
                                               ------------        ------------

Total Assets                                   $489,919,000        $494,827,000
Loans, net                                      306,855,000         269,644,000
Investments                                     136,049,000         180,218,000
Deposits                                        333,289,000         303,103,000
Borrowings                                      125,724,000         157,301,000
Stockholders' equity                             25,775,000          24,226,000

Book value per share                                  11.42               10.75
Tangible book value per share                         11.42               10.75
Leverage ratio                                         8.03%               8.18%
Shares outstanding                                2,257,748           2,254,002

                                                      For the Three Months
                                                         Ended June 30,
                                                    2007               2006
                                                -----------        -----------
Operating results:
Net interest income                             $ 3,301,000        $ 3,200,000
Securities (losses), net                                  0            (18,000)
Total noninterest income                            827,000            704,000
Loan loss provision                                       0
                                                                       105,000
Total noninterest expense                         3,452,000          3,284,000
Income before tax                                   676,000            516,000
Income tax expense                                   94,000             41,000
Net income                                          582,000
                                                                       475,000

Earnings per share (basic)
                                                        .26                .21
Return on average assets                                .48%               .40%
Return on average equity                               8.89%              7.58%

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                                                                    Exhibit 99.1


                                                     For the Six Months
                                                       Ended June 30,
                                                  2007                2006
                                               -----------         -----------
Operating results:
Net interest income                            $ 6,483,000         $ 6,462,000
Securities (losses), net                           (14,000)            (18,000)
Total noninterest income                         1,621,000           1,372,000
Loan loss provision                                105,000             210,000
Total noninterest expense                        6,909,000           6,380,000
Income before tax                                1,091,000           1,244,000
Income tax expense                                 106,000             145,000
Net income                                         985,000           1,099,000

Earnings per share (basic)                             .44                 .49
Return on average assets                               .40%                .47%
Return on average equity                              7.36%               8.61%



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