Exhibit 99.1

                     FIRST LITCHFIELD FINANCIAL CORPORATION


News Release

For Immediate Release

         First Litchfield Financial Corporation Announces 2006 Earnings

Litchfield,  Conn.,  March  16,  2007--First  Litchfield  Financial  Corporation
(NASDQ: FLFL.OB) (the "Company") the holding company for The First National Bank
of Litchfield  (the "Bank")  reported  earnings for the year ending December 31,
2006.

Net income for the year  totaled  $1,409,000  or $.62 and $.63 diluted and basic
earnings per share, respectively.  Earnings decreased 65.1%, or $2,627,000, from
2005 earnings of  $4,036,000  or $1.78 and $1.80 diluted and basic  earnings per
share. The Company's return on average  shareholders'  equity decreased from the
2005 level of 16% to 5% for 2006.

President and CEO Joseph J. Greco stated,  "Despite the reduced  earnings,  2006
was a significant year of accomplishment for the Company. During 2006, we opened
new branches in Canton and New Milford and we converted our in-store supermarket
branch to a  full-service  facility in  Torrington.  Additionally  in the fourth
quarter the Bank formed First  Litchfield  Leasing  Corporation,  which provides
commercial  credit in the form of lease financing to complement the Bank's array
of  commercial  services.  We believe that the actions  undertaken by us in 2006
will pave the way for enhanced earnings in the longer term. "

The decline in earnings  resulted mostly from a combination of factors including
decreased  net  interest  income,  increased  non-interest  expenses  and a loss
incurred on the sale of securities in connection with the  repositioning  of the
investment  portfolio and deleveraging of the balance sheet. Net interest income
for 2006  decreased  by 9.8%,  or  $1,380,000,  from  2005 as a result of margin
compression  and an inverted  yield  curve.  During 2006,  interest  expense for
deposits and  borrowings  increased at a greater pace than interest  income from
earning  assets.  The Company's net interest margin declined from the 2005 level
of 3.52% to 2.91% for 2006. The effects of this decline were partially mitigated
by the loan and deposit  growth  experienced  during  2006.  Loans  totaled $295
million as of December  31, 2006 which is an increase of $54  million,  or 22.5%
from year end 2005.  Loan growth was  experienced in the commercial  lending and
mortgage  portfolios  with  additional  growth  from  the  residential  mortgage
portfolio.  Deposits  grew by $56  million or 20.0%  during  2006.  This  growth
occurred in spite of fierce market  competition  and enhanced by the branches in
the new markets.

Non-interest income for 2006 totaled $2,273,000,  decreasing $626,000,  or 21.6%
from 2005 non-interest income of $2,899,000.  The decline in non-interest income
is due to the  loss on sales  of  securities  totaling  $667,000.  This  loss is
primarily due to the balance sheet restructuring reported in the fourth quarter,
whereby $32 million of low-yielding securities were sold to enable management to
reduce its level of  expensive  wholesale  funding and  position the Company for
enhanced  profitability in the future.  Pursuant to this transaction the Company
recorded a loss of $649,000.

Other areas of  non-interest  income  provided strong results in 2006. Fees from
trust  services for 2006 totaled  $1,136,000,  up $160,000,  or 16.4%,  from the
previous year.  This growth  reflects the efforts by management to expand wealth
management  services and an expanded  array of service  offerings for retail and
commercial  clients.  Banking  service  charges  and fees  increased  20.7%,  or
$211,000,  from 2005 as a result of revenue  opportunities from deposit accounts
and cash management services.

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Non-interest  expenses  totaled  $13,203,000  in 2006,  an  increase of 19.1% or
$2,121,000 from 2005 noninterest  expenses of $11,081,000.  Costs related to the
new branching  initiatives as well as product and service  delivery  resulted in
increased personnel, marketing and other non-interest expenses.

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. The Bank offers nondeposit
retail investment products such as mutual funds, annuities and insurance through
its relationship  with Infinex  Investments,  Inc.  Additionally its subsidiary,
First Litchfield Leasing Corporation,  provides commercial credit in the form of
lease financing to complement the Bank's array of commercial services.


The Company's website address is www.fnbl.com.

Selected financial data follows.

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                     First Litchfield Financial Corporation
                      Selected Consolidated Financial Data
                                   (Unaudited)


Period end balance sheet data:                 December 31,
                                          2006              2005
                                          ----              ----


Total Assets                         $ 501,232,000     $ 467,561,000
Loans, net                             293,900,000       240,682,000
Investments                            147,821,000       182,949,000
Deposits                               333,429,000       277,870,000
Borrowings                             136,510,000       157,301,000
Stockholders' equity                    26,206,000        25,970,000

Book value per share                         11.63             12.16
Tangible book value per share                11.63             12.16
Leverage ratio                                7.72%             7.80%
Shares outstanding                       2,254,002         2,243,188


                                            For the Year Ended
                                               December 31,
                                          2006               2005
                                          ----               ----
Operating results:
Net interest income                  $  12,691,000     $  14,071,000
Securities (losses) gains, net            (667,000)           79,000
Total noninterest income                 2,273,000         2,899,000
Loan loss provision                        420,000           342,000
Total noninterest expense               13,203,000        11,081,000
Income before tax                        1,341,000         5,547,000
Income tax (benefit) expense               (68,000)        1,511,000
Net income                               1,409,000         4,036,000

Earnings per share (basic)                     .63              1.80
Earnings per share (fully diluted)             .62              1.78

Return on average assets                       .29               .91
Return on average equity                      5.40%            15.94


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.

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

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