Exhibit 99.1
                     FIRST LITCHFIELD FINANCIAL CORPORATION

News Release
For Immediate Release

     First Litchfield Financial Corporation Announces First Quarter Earnings

Litchfield,  Connecticut,  May 12, 2008--First  Litchfield Financial Corporation
(trading  symbol:  FLFL.OB) (the  "Company"),  the holding company for The First
National Bank of Litchfield  (the "Bank"),  reported  earnings for the three (3)
months  ended March 31,  2008.  Earnings  for the first  quarter of 2008 totaled
$499,000,  which is an increase  of 23.8% from first  quarter  2007  earnings of
$403,000. First quarter basic and diluted net income per share for 2008 was $.21
per share, as compared to $.17 basic and diluted net income per share for 2007.

President and CEO,  Joseph J. Greco stated,  "Earnings for the first quarter are
consistent  with our  expectations  of net interest  income,  earning assets and
deposit  growth.  I am  encouraged  about the  prospects  for  improving our net
interest  income based upon interest rates,  the quality of earning assets,  and
our  ability  to grow our  expanded  branch  infrastructure.  In  addition,  the
continued growth from our wealth management  business and leasing operations are
expected to enhance and contribute to the Bank's profitability."

Net  interest  income  for the first  quarter  of 2008  totaled  $3,577,000,  an
increase of $395,000 or 12.4% from the first  quarter of 2007.  The  increase in
net interest  income for the first  quarter of 2008 was due to increased  income
resulting from an improved mix of earning assets, and the growth of the loan and
lease  portfolio.  Interest  and dividend  income for the first  quarter of 2008
totaled  $7,256,000,  which was an increase of 5.5%,  from the first  quarter of
2007 interest and dividend income of $6,877,000. The increase is the result of a
higher level of average  earning  assets  resulting  from loan and lease growth.
Additionally,  the  emphasis on deposit  growth and  cost-efficient  funding has
helped to slow further margin erosion.  Consistent with that goal, net loans and
leases increased  $3,873,000 over the first quarter 2007 amount. The increase of
$425,000 in net interest  income after the  provision  for loan and lease losses
also  reflects  a  $30,000  reduction  in the  amount of the  provisions  to the
allowance  for loan and lease losses for the first  quarter ended March 31, 2008
as compared with the first quarter of 2007. The year-over-year  reduction in the
provision for loan and lease losses is reflective of strong asset quality.  This
asset quality comes from our adherence to prudent underwriting standards and our
conviction that we will not compromise  those standards in order to achieve loan
growth.

Retail deposits, which excludes brokered deposits,  increased $5,954,000 or 1.8%
over their respective year-end levels. This increase is attributed to the Bank's
expansion from the opening of three (3) new branches  during 2006, as well as to
an increasing emphasis on the development and retention of commercial, municipal
and small business  accounts.  Money market  deposits and time  certificates  of
deposit increased $2,629,000 and $8,514,000,  respectively, due to growth in the
relationship money market deposit products and certificates of deposit.

Noninterest  income for the three months ended March 31, 2008 totaled  $856,000,
up $61,000, or 7.7%, from noninterest income from the same period in 2007. Trust
fee income totaled $340,000 which represents an increase of $10,000, or 3%, from
the first three months of 2007.  This increase is due to fees from the Company's
growth in  investment  management  services.  Banking  service  charges and fees
totaled $345,000,  increasing $34,000 or 11% from the previous year, as a result
of revenue opportunities from deposit accounts and cash management services.

<PAGE>

Noninterest   expense  for  the  three  months  ended  March  31,  2008  totaled
$3,799,000,  and  represented  an increase of $342,000,  or 9.9%,  from the same
period of 2007. The launching of a market-wide,  multimedia  image campaign that
featured  print,  radio,   direct,   billboards,   and  television   advertising
contributed to these increases.

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 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  nine
full-service  banking offices in Canton,  Goshen,  Litchfield,  Marble Dale, New
Milford,  Roxbury,  Washington  and two in  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 data follows)


<PAGE>




                        First Litchfield Financial Corp.

                      Selected Consolidated Financial Data
                                   (Unaudited)

Period end balance sheet data:                           March 31,
                                                 2008                 2007

Total Assets                                $ 534,026,000        $ 493,825,000
Loans and leases, net                         331,348,000          300,916,000
Investments                                   154,940,000          140,716,000
Deposits                                      341,572,000          343,192,000
Borrowings                                    157,750,000          119,769,000
Stockholders' equity                           27,443,000           26,749,000

Book value per share                                11.57                11.28
Tangible book value per share                       11.57                11.28
Leverage ratio                                       7.62%                7.72%
Shares outstanding                              2,371,700            2,370,423


                                                  For the Three Months Ended
                                                          March 31,
                                                 2008                  2007
Operating results:
Net interest income                         $   3,577,000        $   3,182,000
Securities (losses), net                           12,000              (14,000)
Total non-interest income                         856,000              795,000
Loan and lease loss provision                      75,000              105,000
Total non-interest expense                      3,799,000            3,457,000
Income before tax                                 559,000              415,000
Income tax expense                                (61,000)             (12,000)
Net income                                        499,000              403,000

Earnings per share (basic)                            .21                  .17
Return on average assets                              .38%                 .32%
Return on average equity                             6.91%                5.90%


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