Exhibit 99.1

SBT Bancorp, Inc. Reports Second Quarter 2011 Results

SIMSBURY, Conn.--(BUSINESS WIRE)--July 29, 2011--SBT Bancorp, Inc., (OTCBB: SBTB) holding company for Simsbury Bank & Trust Company, today announced net income of $198,000 or $0.15 per diluted share for the second quarter of 2011, compared to $273,000 or $0.24 per diluted share for the second quarter of 2010. Total assets on June 30, 2011 were $335 million, an increase of $60 million or 22% over June 30, 2010.

For the six months ended June 30, 2011, net income amounted to $285,000, or $0.18 per diluted share. Net income for the first quarter of 2011 was impacted by a one-time charge related to the Bank’s formation of a Passive Investment Company (PIC). Excluding this one-time charge, net of a favorable income tax adjustment, net income for the six months ended June 30, 2011 would have been $457,000 or $0.38 per common diluted share. This compares to net income of $516,000, or $0.45 per diluted share, for the six months ended June 30, 2010.

“SBT Bancorp has experienced more than 20% growth over the past twelve months,” said SBT Bancorp President and CEO, Martin J. Geitz. “We recently announced two initiatives to expand the Company’s capital base to support our growth. The Company has received preliminary approval to obtain $9 million in capital through the United States Treasury’s Small Business Lending Fund (“SBLF”) and the Company’s board approved a dividend reinvestment plan for its shareholders which it expects to put into place in the near future. These two initiatives will provide the Company with capital to continue to expand its business lending activities and support the growth in related deposits and services.”

Total deposits on June 30, 2011 were $309 million, an increase of $60 million or 24% over a year ago. Core deposits (Demand, Savings and NOW accounts) increased by $58 million or 33% while Time Deposits increased by $2 million or 2%. The Company’s deposits from municipalities grew by $8 million or 42% over a year ago. At quarter-end, 28% of total deposits were in non-interest bearing demand accounts, 47% were in low-cost savings and NOW accounts, and 25% were in time deposits.

On June 30, 2011, loans outstanding were $210 million, an increase of $5 million, or 2%, over a year ago. With a loan loss provision of $165,000 during the quarter, the Company’s allowance for loan losses at June 30, 2011 was 1.10% of total loans. The profile of the Company’s loan portfolio remains relatively low-risk. The Company had non-accrual loans totaling $2.1 million equal to 1.00% of total loans on June 30, 2011 compared to non-accrual loans totaling $2.9

million or 1.41% of total loans a year ago. Total non-accrual loans and loans 30 or more days delinquent decreased from 1.56% of loans outstanding on June 30, 2010 to 1.17% of loans outstanding on June 30, 2011.

Total revenues, consisting of net interest and dividend income plus noninterest income, were $3,129,000 in the second quarter compared to $2,981,000 a year ago, an increase of 5%. Net interest and dividend income declined by approximately 2%, while noninterest income increased by $190,000 or 49% primarily due to an increase in gain on sales of securities, gain on loans sold, and an increase in investment services fees and commissions.

The Company’s taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) was 3.45% for the second quarter of 2011, compared to 4.01% for the second quarter of 2010. The Company’s cost of funds declined during the second quarter of 2011, compared to the second quarter of 2010. However, the Company experienced a greater decline in yield on assets as compared to the decline in cost of funds.

Total noninterest expenses for the second quarter were $2,741,000, an increase of $310,000 or 13% over the second quarter of 2010. Salaries and employee benefit expenses and professional fees accounted for approximately 90% of the increase in expenses. These expenses were primarily associated with strategic initiatives to position the Company for future growth. For the six months ended June 30, 2011 total noninterest expenses were $5,393,000 compared to $4,751,000 for the six months ended June 30, 2010, an increase of 14%.

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 tax. 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 benefit may adjust upward or downward as the Bank’s net income changes over time. Net income for the six months ended June 30, 2011 was negatively impacted by certain non-recurring tax charges incurred in establishing the PIC, net of a favorable federal tax adjustment, resulting in a $172,000 one-time net charge reflected in the Company’s first quarter 2011 income tax provision.

Capital levels for the Simsbury Bank & Trust Company on June 30, 2011 were above those required to meet the regulatory “well-capitalized” designation.

Simsbury Bank is an independent, local bank for consumers and businesses. The Bank has approximately $335 million in assets. The Bank serves customers through full-service offices in Avon, Bloomfield, Granby and Simsbury, Connecticut; loan originators throughout central 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
Fax: 860-408-4679
abisceglio@simsburybank.com