EXHIBIT 99.1
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FOR IMMEDIATE RELEASE                Contact: Kathy Martin, 860-626-1900 ext: 18


                      THE FIRST NATIONAL BANK OF LITCHFIELD
                  ANNOUNCES FORMATION OF NEW LEASING SUBSIDIARY

Litchfield,   Connecticut--November   13,   2006--The  First  National  Bank  of
Litchfield  (the "Bank") and its holding  company,  First  Litchfield  Financial
Corporation  (NASDQ:  FLFL),  announced  today the  formation  of a new  leasing
subsidiary operating under the name First Litchfield Leasing Corporation.

First  Litchfield  Leasing will offer middle market equipment leases ($75,000 to
$500,000) to the commercial markets of Connecticut and Massachusetts, as well as
to the  existing  commercial  accounts and small  business  clients of the Bank.
Glenn R. Mason, a 30-year  veteran in the management of middle market  equipment
leasing/financing,  will be serving as President of the leasing  company.  Mason
co-founded New England Capital Corporation (NECC) in 1983 and was Executive Vice
President,  Chief Operating Officer for 17 years. Most recently, Mason served as
Senior Vice President for TD Banknorth Leasing in New Britain, CT.

Linda Parady will join Mason in the leadership of First Litchfield Leasing,  and
will serve as Vice President.  Parady's  extensive  background in lease and loan
documentation  will bring a level of  customer  service to the  clients of First
Litchfield Leasing.

"The formation of the new leasing operation represents a significant addition to
our product offerings,  allowing The First National Bank of Litchfield to have a
unique  niche  among  community  banks as a  complete  financial  source for our
business  customers,"  Bank President  Joseph J. Greco said.  "First  Litchfield
Leasing is dedicated to delivering  the same  commitment to excellence  that our
customers have benefited from for almost two centuries."

According to the Equipment Leasing and Finance Association, equipment leasing is
a $220 billion  industry with a growing demand among businesses that aim to free
working capital while updating  technology,  expanding  capabilities and staying
competitive.  "The ability to reap all the benefits of new equipment without the
burden associated with equipment  ownership is a real appeal,"  commented Mason.
"We will strive to offer  equipment  lease solutions that will meet the evolving
needs  of the  local  business  community.  First  Litchfield  Leasing  will  be
structured to offer a full range of leasing products generally available only at
the  larger  leasing  entities  while at the same time  maintaining  a  customer
service focus that is missing in the industry today."

First  Litchfield  Leasing  Corporation's  office is located at 1057 Torringford
Street, Torrington, at the Bank's Hilltop branch, which opened November 6, 2006.

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  currently  available to management.
Since these statements reflect the views of management concerning future events,
these

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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.

One of the oldest nationally  chartered banks in the country, The First National
Bank of Litchfield has served the communities of Northwestern  Connecticut since
1814. It is currently operating full service banking offices in Canton,  Goshen,
Litchfield,  Marble Dale, New Milford, Roxbury,  Washington and Torrington, with
total assets of over $500  million.  Maintaining a  long-standing  commitment to
personalized  service,  The  Bank  provides  consumer,   commercial  and  retail
investment and insurance products and services, as well as equipment leasing and
a Trust and Wealth  Management  division that offers asset management and estate
settlement services to individuals, non-profit and commercial customers.

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