Exhibit 99.1

                     FIRST LITCHFIELD FINANCIAL CORPORATION
                 13 North Street, Litchfield, Connecticut 06759


News Release
For Immediate Release

      First Litchfield Financial Corporation Announces Nine-Month Earnings

Litchfield,   Connecticut,   November  17,  2008----First  Litchfield  Financial
Corporation (trading symbol:  FLFL.OB) (the "Company"),  the holding company for
The First  National Bank of Litchfield  (the "Bank"),  reported  results for the
three (3) months and nine (9) months ended September 30, 2008.

For the nine months ended September 30, 2008 the Company  reported a net loss of
$4,310,919  as compared to earnings of  $1,662,496  for the same period in 2007.
Basic and diluted  loss per share for the nine months ended  September  30, 2008
was $1.82,  compared to basic and diluted  income per share of $.70 for the nine
months ended  September 30, 2007.  The net loss in 2008 is due to the $6,946,100
other-than-temporary-impairment   on  Freddie  Mac  and  Fannie  Mae   preferred
stock/auction  rate  securities  holding such stock,  and a trust preferred debt
security, recorded during the third quarter.

The net loss for the Company for the third quarter of 2008 totaled $5,425,890 as
compared to earnings of $677,836 for the third  quarter of 2007.  The  quarterly
basic and diluted  net loss per share for 2008 was $2.30,  compared to basic and
diluted  income per share of $.29 for the same  period in 2007.  The net loss in
2008 is due to the other  than  temporary  impairment  on  investments  recorded
during the third  quarter.  No tax benefit was recognized on $5,030,000 of these
charges as changes signed into law that would allow  financial  institutions  to
treat the losses as  ordinary  losses was not  signed and made  effective  until
October 3, 2008.  Therefore,  a tax benefit of approximately  $1,710,200 was not
recognized  in the quarter ended  September 30, 2008,  and will be recognized in
the quarter ending December 31, 2008.

<TABLE>
<CAPTION>

                                        Three Months Ended               Nine Months Ended
                                        September 30, 2008               September 30, 2008
                                    ----------------------------    ----------------------------

                                      Net (Loss)                      Net (Loss)
                                        Income           EPS            Income          EPS
                                        ------           ---            ------          ---
<S>                                 <C>             <C>             <C>             <C>
GAAP Basis                          $ (5,425,890)   $      (2.30)   $ (4,310,919)   $      (1.82)

OTTI Write-down (net of taxes)      $  6,294,626    $       2.67    $  6,294,626    $       2.66
                                    ------------    ------------    ------------    ------------
Results Excluding the OTTI Charge   $    868,736    $       0.37    $  1,983,707    $       0.84
                                    ============    ============    ============    ============
</TABLE>

Other than the  nonrecurring  losses  resulting  from the other  than  temporary
impairment on securities,  the Company's core earnings  improved.  Excluding the
OTTI write down, the Company's third quarter 2008 earnings  totaled  $868,736 or
$.37 per basic and  diluted  income per share.  Similarly,  year to date  income
through  September  30,  2008 would have been  $1,983,707  or $.84 per basic and
diluted  income per share.  These earnings would have shown an increase of 19.3%
or $321,291 over income for the first nine months of 2007.

<PAGE>

Third quarter 2008 net interest income totaled  $3,885,000  which is an increase
of  $547,000 or 16.4% from the third  quarter of 2007.  The tax  equivalent  net
interest  margin  increased from 2.82% in the third quarter of 2007 to 2.99% for
the third  quarter of 2008.  The increase in the net interest  income was due to
the improved net interest  margin as well as to higher levels of earning assets.
Average  earning  assets for the third quarter of 2008 totaled $514 million,  an
overall  increase of $51 million from the third  quarter of 2007.  Average loans
and  leases  increased  by $36  million,  or 11.4%,  while  average  investments
increased by $20  million,  or 15.1%.  The increase in earning  assets came from
growth in nearly all loan categories but in particular, in commercial mortgages,
commercial loans and commercial leasing.

Net interest income for the first nine months of 2008 totaled $11,175,000, which
was an increase of $1,354,000,  or 13.8% from the same period in 2007.  Both the
increase  in the  volume of earning  assets as well as  increased  net  interest
margin  contributed to the improvement in net interest income.  The net interest
margin (net interest income divided by average earning assets) was 2.92% for the
nine-month  period  ended  September  30, 2008 which was an increase of 16 basis
points from the margin of 2.76% for the nine months  ended  September  30, 2007.
These results are also reflective of lower funding costs. Average earning assets
for the first nine months of 2008 totaled $503 million which was $40 million, or
8.7% above average assets for the first nine months of 2007.  Growth during 2008
was primarily in commercial lending including commercial  mortgages,  commercial
loans and commercial leasing.

President and CEO, Joseph J. Greco stated,  "In spite of the disappointing  loss
we suffered as a result of the impact of the  government's  actions with regards
to the Freddie Mac and Fannie Mae stock,  our core earnings remain solid and are
improving. Despite this loss, the overall health of the Company is strong and we
remain  well-capitalized.  Our  priorities  continue to be meeting the financial
goals  of  our   customers   as  well  as  seeking  out  new  loan  and  deposit
relationships. We are building a strong momentum in our personal, commercial and
wealth  management lines of business,  while  maintaining  conservative  lending
standards and prudent business practices.  Our third quarter net interest income
was the highest ever achieved by the Company."

As of September 30, 2008,  deposits totaled $340.7 million which was an increase
of $5.1 million over the year-end  level.  Growth was  primarily in money market
and savings  deposits and is attributed  to the  consumer's  preference  towards
liquidity as well as the safety of FDIC insured deposits.

The Bank  increased  its  provision  for loan and lease losses  during the third
quarter  and for the first  nine  months of 2008.  The  provision  for the third
quarter of 2008 totaled  $155,000 as compared to the third  quarter of 2007 when
no  provision  was  recorded.  On a year to date  basis  the  provision  totaled
$367,000,  which was an  increase  of  $262,000  over the nine  month  provision
through  September 30, 2007. The increase in the allowance  during 2008 reflects
the growth in the loan and lease  portfolio  and the  consideration  of economic
uncertainty on the quality of the Bank's loan and lease portfolio.

Year-to-date  noninterest losses for the quarter and nine months ended September
30, 2008  totaled  $5,808,000  and  $4,018,000,  respectively,  and included the
other-than-  temporary  impairment  loss  of  $6,946,100  previously  discussed.
Without the impact of the impairment  loss and any gains or losses from security
sales,  noninterest  income would have  improved over the third quarter and nine
month periods in 2007, reflecting higher levels of banking service charges, such
as overdraft and ATM fees, loan fees, cash management income and bank owned life
insurance.

<PAGE>

Third quarter and nine-month noninterest expense for the periods ended September
30, 2008 totaled  $3,753,000,  and  $11,376,000,  respectively,  and represented
increases of 11.0% and 10.6%,  respectively compared to similar periods in 2007.
Increases in noninterest  expenses  resulted from staffing,  advertising,  exam,
audit and legal  fees and  computer  services.  Increased  salary  and  benefits
expenses were due to additional compliance and branch personnel and an increased
emphasis on commercial and small business development.  Costs for exam and audit
fees  increased due to costs for regulatory  reporting,  compliance and internal
audit. The increase in advertising is due primarily to the Bank's image campaign
as well as product and publicity 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  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,  Connecticut.  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 & CEO
  (860) 567-6438
                        (selected financial data follows)

<PAGE>


                     First Litchfield Financial Corporation

                      Selected Consolidated Financial Data
                                   (Unaudited)

Period end balance sheet data:                          September 30,
                                                   2008                2007
                                              -------------       -------------

Total Assets                                  $ 506,538,000       $ 476,993,000
Loans, net                                      351,737,000         313,468,000
Investments                                     104,949,000         125,270,000
Deposits                                        340,727,000         326,493,000
Borrowings                                      140,224,000         137,611,000
Stockholders' equity                             20,061,000          27,356,000
Book value per share                                   8.51               11.53
Tangible book value per share                          8.51               11.53
Leverage ratio                                         6.31                8.01
Shares outstanding                                2,356,875           2,372,315


                                                      For the Three Months
                                                      Ended September 30,
                                                   2008                2007
                                              -------------       -------------
Operating results:
Net interest income                           $   3,885,000       $   3,338,000
Securities (losses) gains, net                   (6,721,000)             34,000
Total noninterest (loss) income                  (5,808,000)            890,000
Loan loss provision                                 155,000                  --
Total noninterest expense                         3,753,000           3,381,000
(Loss) income before tax                         (5,831,000)            847,000
Income tax (benefit) expense                       (405,000)            169,000
Net (loss) income                                (5,426,000)            678,000
(Loss) income per share (basic)                       (2.30)               0.29
Return on average assets                              (4.01)%              0.55%
Return on average equity                             (87.77)%             10.28%

 For the Nine Months
                                                      Ended September 30,
                                                   2008                2007
                                              -------------       -------------
Operating results:
Net interest income                           $  11,175,000       $   9,821,000
Securities (losses) gains, net                   (6,688,000)             20,000
Total noninterest (loss) income                  (4,018,000)          2,512,000
Loan loss provision                                 367,000             105,000
Total noninterest expense                        11,376,000          10,290,000
(Loss) income before tax                         (4,586,000)          1,938,000
Income tax (benefit) expense                       (275,000)            275,000
Net (loss) income                                (4,311,000)          1,662,000
(Loss) income per share (basic)               $       (1.82)      $        0.70
Return on average assets                              (1.08)%              0.45%
Return on average equity                             (21.28)%              6.24%



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