Exhibit 99.1

SBT Bancorp, Inc. Reports Second Quarter 2014 Results

SIMSBURY, Conn.--(BUSINESS WIRE)--July 31, 2014--SBT Bancorp, Inc., (OTCBB: SBTB), holding company for The Simsbury Bank & Trust Company, today announced net income of $115,000 or $0.10 basic and diluted earnings per share for the quarter ended June 30, 2014 compared to a net income of $78,000 or $0.06 basic and diluted earnings per share in the linked quarter. For the six months ended June 30, 2014, net income amounted to $193,000 or $0.16 basic and diluted earnings per share. This compares to net income of $918,000 or $1.00 basic and $0.99 diluted earnings per share for the six months ended June 30, 2013.

Net interest and dividend income for the quarter ended June 30, 2014 amounted to $2,776,000, an increase of 4.1% as compared to the quarter ended June 30, 2013. Total loans outstanding, including loans held-for-sale, amounted to $282 million, an increase of $27 million or 10.6% as compared to $255 million on June 30, 2013. Total assets on June 30, 2014 were $403 million compared to $382 million on June 30, 2013.

“The Bank showed double digit loan growth and strong deposit growth as compared to June 30, 2013,” said Martin J. Geitz, President and Chief Executive Officer. “Commercial banking continues to grow, with commercial loan balances increasing by $11.5 million or 16.4% since June 30, 2013. Retail banking remains strong as evidenced by our deposit growth. Performance of our mortgage unit improved in the second quarter, however, continues to be challenging. We experienced a significant increase in applications and closed purchase mortgages during the second quarter; however, the levels were still well below 2013’s levels. With the launching of a wholesale mortgage origination channel and incremental additions to our retail origination platform, we expect measured improvement in the mortgage business contribution to earnings during the balance of the year.”

Key highlights for June 30, 2014 compared to June 30, 2013 included:

• Net loan growth of $16.4 million or 6.5%.
• Total asset growth of $20.2 million or 5.3%.
• Total deposits increased $20.8 million or 6.4% over the same period.
• Net interest and dividend income increased $110 thousand or 4.1% compared to the second quarter of 2013.
• Second quarter 2014 net interest margin of 3.01% was 9 basis points lower compared to the second quarter of 2013.
• Net income was $286 thousand lower compared to the same period of 2013 primarily due to the reduction in mortgage banking gain on loans sold as the increase in longer-term interest rates has negatively impacted residential mortgage refinancing activity.
• Total loan delinquency (non-accrual and delinquent loans) decreased to 1.28% of total loans compared to the previous year’s 1.38%. Overall loan delinquency remains favorable to peers.
• The allowance for loan losses at June 30, 2014 was 1.01% of total loans.
• The Bank’s Total Risk Based Capital ratio remains strong, ending the second quarter of 2014 at 13.14%.

On June 30, 2014, loans outstanding, including loans held-for-sale, were $282 million, an increase of $27.1 million, or 10.6% over a year ago. Commercial loans grew by $11.5 million or 16.4%, residential mortgage loans, including loans held-for-sale, grew by $15.7 million or 12.4% and consumer loans decreased by $142,000 or 0.3%. Combined mortgage and consumer loan closings decreased by 68.4% during the second quarter 2014 as compared to the second quarter 2013 due to a 70.2% decrease in mortgage closings and a 61.15% decrease in consumer closings.

The Company’s loan portfolio remains strong. The Company’s allowance for loan losses at June 30, 2014 was 1.01 % of total loans. The Company had non-accrual loans totaling $2.5 million equal to 0.92% of total loans on June 30, 2014 compared to non-accrual loans totaling $2.7 million or 1.06% of total loans a year ago. Total non-accrual and delinquent loans on June 30, 2014 were 1.28% of loans outstanding compared to 1.38% on June 30, 2013.

Total deposits on June 30, 2014 were $345 million, an increase of $20.8 million or 6.4% over a year ago. At quarter-end, 32% of total deposits were in non-interest bearing demand accounts, 49% were in low-cost savings and NOW accounts and 19% were in time deposits.

For the second quarter 2014, total revenues, consisting of net interest and dividend income plus noninterest income, were $3,381,000 compared to $3,630,000 a year ago, a decrease of $249,000 or 7%. Net interest and dividend income increased by $110,000 or 4% primarily due to an increase in yield on earning assets and increases in average outstanding balances. Non-interest income decreased by $359,000 or 37%, primarily due to a decrease in gain on loans sold in the amount of $439,000, offset by an increase in the gain on sales of securities of $76,000. For the six months ended June 30, 2014, total revenues were $6,780,000 compared to $7,326,000 for the six months ended June 30, 2013, a decrease of $546,000. Over this period, net interest and dividend income increased by $338,000 while noninterest income decreased by $884,000 or 44%, primarily due to a decrease in the gain on loans sold in the amount of $971,000.

The Company’s year-to-date 2014 taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) was 3.02% compared to 3.06% for year-to-date 2013. The Company’s yield on earning assets decreased 5 basis points to 3.26%, while the cost of funds remained the same at 0.34% for the six months ended June 30, 2014 compared to the same period of 2013.

Total noninterest expense for the second quarter 2014 was $3,316,000, an increase of $266,000 or 9% above the second quarter of 2013. The $266,000 increase was primarily due to a $190,000 increase in the other expenses, $92,000 due to an increase in the FDIC assessment and $106,000 due to an increase in occupancy and equipment expense. These increases were offset by a decrease in salary and employee benefits in the amount of $111,000. For the six months ended June 30, 2014, total noninterest expense was $6,676,000 compared to $6,040,000 for the six months ended June 30, 2013, an increase of $636,000. This increase is mainly due to increases in salary and benefits of $119,000, occupancy and equipment expenses of $217,000, FDIC assessment of $150,000 and other expenses of $237,000. These increases were offset by a decrease in advertising expense of $74,000.

Capital levels for The Simsbury Bank & Trust Company on June 30, 2014 were above those required to meet the regulatory “well-capitalized” designation.

Simsbury Bank is an independent, publicly owned community bank for consumers and businesses based in Central Connecticut’s Farmington Valley. Simsbury Bank’s parent company is SBT Bancorp, Inc. whose stock is traded under the ticker symbol OTCBB: SBTB. The Bank serves customers locally through branches in Avon, Bloomfield, Granby and Simsbury and regionally through mortgage and commercial bankers active throughout Southern New England. Simsbury Bank customers enjoy internet banking and mortgage services at, respectively, www.simsburybank.com and www.simsburybank.com/mortgages. Bank customers have free ATM access at thousands of machines across the country through the SUM program. The Bank offers financial planning, investment and insurance products through LPL Financial and its affiliates, member FINRA/SIPC.

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:
Simsbury Bank
Richard J. Sudol, 860-408-5493
SVP & CFO
860-408-4679 (fax)
rsudol@simsburybank.com