LITCHFIELD FINANCIAL CORP. ANNOUNCES 47% INCREASE IN 1st QUARTER EARNINGS

Source: Litchfield Financial Corp.

April 22, 1999
Litchfield Financial Corporation reported Tuesday that first quarter 1999 net income increased 47% to $2,278,000 from $1,550,000 in the 1998 quarter. Diluted earnings per share for the quarter ended March 31, 1999 were $.32 compared to $.26 in the first quarter of 1998, a 23% increase. Revenues for the first quarter 1999 were up 39% to $11,075,000 from $7,953,000 in 1998.

"The Company's strong financial results in the first quarter of 1999 reflect the robust growth in our land, timeshare and financial services businesses and significant gains in our operating efficiency," Litchfield
CEO and President Randy Stratton said. "In the last 12 months, our serviced portfolio grew 48% to over one-half billion while overhead costs rose only 8%. In addition, we continue to be focused on maintaining asset quality, as evidenced by our stable default and delinquency rates."

Litchfield also announced record first quarter originations of $98.0 million, a 45% increase from $67.5 million in the first quarter of 1998. During the first quarter of 1999, Litchfield's land, timeshare and financial services businesses originated $20.1 million, $47.8 million and $30.1 million, respectively. "With the growth of our financial services business, we continued to diversify our portfolio during the first quarter. We expect this trend to continue throughout the year as we lend to more businesses secured by different types of collateral," Mr. Stratton continued.

Loan sales for the first quarter of 1999 were $52.9 million. Approximately $14.6 million of land loans were sold through Litchfield's commercial paper facility and $38.3 million of hypothecation, home equity and land loans were sold in private placements. Gain on sale of loans represented 24% percent of revenues in the first quarter of 1999, down from 28% of revenues in the prior year quarter.

Litchfield is a diversified finance company that provides financing to creditworthy borrowers for assets not typically financed by banks. The Company provides such financing by purchasing consumer loans and by making loans to businesses secured by consumer receivables or other assets.