Exhibit 99.1

SBT Bancorp, Inc. Reports 2010 Results

SIMSBURY, Conn.--(BUSINESS WIRE)--February 7, 2011--SBT Bancorp, Inc., (OTCBB: SBTB), holding company for Simsbury Bank & Trust Company, today announced net income of $1,147,000 for the year ended December 31, 2010, compared to $718,000 for the year ended December 31, 2009, an increase of 60%. Net income available to common shareholders after preferred dividends was $889,000, or $1.03 per diluted share, for the year ended December 31, 2010, compared to $522,000, or $0.60 per diluted share, for the year ended December 31, 2009, an increase in diluted earnings per share of 72%.

For the fourth quarter of 2010, SBT Bancorp, Inc. earned net income of $317,000, net income available to common shareholders after preferred dividends of $252,000, and earnings per diluted share of $0.29. This compares to fourth quarter of 2009 net income of $191,000, net income available to common shareholders after preferred dividends of $126,000, and earnings per diluted share of $0.15. Fourth quarter 2010 earnings per share increased by 93% over the fourth quarter of 2009.

Key items for the year of 2010 compared to the year of 2009 include:

• Earnings per share increased by 72%
• Total revenues increased by 15%.
• Core deposits increased by 14%.
• Total loans outstanding increased by 6%.
• Taxable equivalent net interest margin increased by 26 basis points, from 3.56% to 3.82%.
• Total non-accrual loans and loans 30 or more days past due decreased from 1.80% of loans outstanding to 1.39% of loans outstanding.
• Allowance for loan losses ended the quarter at 1.13% of total loans outstanding.
• Capital ratios remained well above regulatory standards for a “well capitalized” bank.

“SBT Bancorp is pleased to report that steady growth in loans, deposits, and revenues has now produced increased earnings in each of the past five quarters,” said SBT Bancorp President and CEO, Martin J. Geitz. “Our customer focus in 2010 produced a notable increase in net income and earnings per share. In 2011 we will strive to further build shareholder value through developing profitable banking relationships, diversifying our sources of revenue, and serving our customers’ full range of financial services needs.”

Total revenues, consisting of net interest and dividend income plus noninterest income, were $12.1 million in 2010 compared to $10.5 million during 2009, an increase of $1.6 million or 15%. Net interest and dividend income increased by $1.3 million or 14%. This increase was driven by an 8% growth in the balance sheet and a 26 basis point increase in the Company’s taxable equivalent net interest margin. Noninterest income increased by $255 thousand or 17% primarily due to a $167 thousand increase in gains on loans sold.

The Company’s taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) was 3.82% for 2010, compared to 3.56% for the 2009. The primary cause of this increase was a much lower cost of funds. Core deposits grew rapidly during this period, replacing higher-cost time deposits.

Total non-interest expenses for 2010 were $9,755,000, an increase of $758,000 or 8% over 2009. The increase in expenses was primarily due to preparing the bank for future growth. Salaries and employee benefit expenses and professional fees increased by a total of $864,000 during 2010 compared to 2009. Premises and equipment, forms and supplies, and FDIC assessment decreased by a total of $211,000 in 2010 compared to 2009. All other operating expenses were up by $105,000 in 2010 compared to 2009.

On December 31, 2010 loans outstanding were $205 million, an increase of $12 million or 6% over a year ago. With a loan loss provision of $150k in the fourth quarter and $755k for the entire year, the Company's allowance for loan losses ended the year at $2.3 million or 1.13% of total loans. The profile of the Company’s loan portfolio remained relatively low-risk throughout 2010. At year end, 72% of total loans were conventionally underwritten residential mortgages and consumer home equity lines and loans. Commercial loans represent 26% of the Company’s total loans. Other consumer loans comprise 2% of total loans. The Company’s exposure to commercial real estate concentrations is relatively low. Total exposure to builder and land development loans and non-owner occupied commercial real estate was $10 million at year end, 5% of total loans and 47% of total capital. The Company had non-accrual loans totaling $2 million equal to 1.12% of total loans on December 31, 2010 compared to non-accrual loans of $3 million or 1.63% of total loans a year ago. Total non-accrual loans and loans 30 or more days past due decreased from 1.80% of loans outstanding on December 31, 2009 to 1.39% of loans outstanding on December 31, 2010.

Total deposits on December 31, 2010 were $269 million, an increase of $19 million or 8% over a year ago. Core deposits (Demand, Savings and NOW accounts) increased by $23 million or 14% and Time Deposits decreased by $4 million or 5%. The Company continues to maintain a low-cost mix of deposits. At year end, 20% of total deposits were in non-interest bearing demand accounts, 51% were in low-cost savings and NOW accounts, and 29% were in time deposits.

Capital levels for the Simsbury Bank & Trust Company remain well in excess of those required to meet the regulatory “well-capitalized” designation.

In January of 2011, Simsbury Bank & Trust Company formed a subsidiary Passive Investment Company (PIC). Under State of Connecticut statutes, such a company is not subject to Connecticut corporation business taxes. Provided that statutory requirements and certain other conditions are met, the current annual benefit to net income of establishing the PIC should exceed $100,000. This amount may adjust upward or downward as the Bank’s net income changes over time. Certain non-recurring charges incurred in establishing the PIC will negatively impact first quarter 2011 net income by approximately $160,000.

Simsbury Bank is an independent, local bank for consumers and businesses. The Bank has approximately $296 million in assets. The Bank serves customers through full-service offices in Avon, Bloomfield, Granby and Simsbury, Connecticut; a loan production office and ATM in Canton, Connecticut; SBT Online internet banking at simsburybank.com; free ATM transactions at hundreds of machines throughout the northeastern U.S. via the SUM program; and 24 hour telephone banking. The Bank’s wholly-owned subsidiary, SBT Investment Services, Inc., offers securities and insurance products through LPL Financial and its affiliates, Member FINRA/SIPC. Simsbury Bank is wholly owned by publicly traded SBT Bancorp, Inc. Its stock is traded over-the-counter under the ticker symbol of OTCBB: SBTB. For more information, visit www.simsburybank.com.

Certain statements in this press release, including statements regarding the intent, belief or current expectations of SBT Bancorp, Inc., The Simsbury Bank & Trust Company, or their directors or officers, are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.

CONTACT:
The Simsbury Bank & Trust Company
Anthony F. Bisceglio, 860-408-5493
EVP & CFO
860-408-4679 (fax)
abisceglio@simsburybank.com