Exhibit 99.1

SBT Bancorp, Inc. Reports Record Third Quarter 2012 Results

SIMSBURY, Conn.--(BUSINESS WIRE)--October 24, 2012--SBT Bancorp, Inc., (OTCBB: SBTB), the holding company for Simsbury Bank & Trust Company, today announced net income of $506,000 or $0.55 per diluted share, for the quarter ended September 30, 2012 compared to $258,000 or $0.10 per diluted share, for the quarter ended September 30, 2011.

For the nine months ended September 30, 2012, net income amounted to $1,440,000, or $1.51 per diluted share, compared to $543,000, or $0.28 per diluted share, for the nine months ended September 30, 2011. Total assets on September 30, 2012 were $369 million.

Key financial highlights for the third quarter of 2012 compared to the third quarter of 2011 include significant growth in earnings, continued loan and deposit growth, favorable asset quality, and a well capitalized regulatory capital position:

• Third quarter 2012 net income of $506 thousand was the highest level of quarterly net income in the history of SBT Bancorp
• Quarterly net income increased $248 thousand or 96%
• Third quarter earnings per share increased by $0.45, from $0.10 to $0.55 per diluted common share
• Noninterest income increased by $514 thousand or 87%
• Loans outstanding grew by $17 million or 8%
• Total deposits grew by $14 million or 5%
• Asset quality remained very favorable with total non-accrual loans and loans 30 or more days past due decreasing to 0.69% of loans outstanding on September 30, 2012 from 1.34% of loans outstanding on September 30, 2011
• The Bank’s Total Risk Based Capital ratio ended the third quarter of 2012 at 14.95%

“Solid growth in revenue, loans and deposits produced the best quarter of earnings in the history of SBT Bancorp,” stated SBT Bancorp President and CEO, Martin J. Geitz. “Our asset quality continues to be excellent, with total loan delinquency well below 1.00% of total loans at quarter end. We remain focused on growing the company’s revenue and building value for our shareholders.”

On September 30, 2012, loans outstanding were $227 million, an increase of $17 million, or 8%, over a year ago. With a loan loss provision of $60 thousand during the quarter, the Company’s allowance for loan losses at September 30, 2012 was 1.09% of total loans. The profile of the Company’s loan portfolio remains relatively low-risk. The Company had non-accrual loans totaling $0.6 million equal to 0.33% of total loans on September 30, 2012 compared to non-accrual loans totaling $2.0 million or 0.83% of total loans a year ago. Total non-accrual loans and loans 30 or more days delinquent decreased from 1.34% of loans outstanding on September 30, 2011 to 0.69% of loans outstanding on September 30, 2012.

Total deposits on September 30, 2012 were $333 million, an increase of $14 million or 5% over a year ago. This growth was mainly in Core deposits (Demand, Savings and NOW accounts). At quarter-end, 21% of total deposits were in non-interest bearing demand accounts, 56% were in low-cost savings and NOW accounts and 23% were in time deposits.

Total revenues, consisting of net interest and dividend income plus noninterest income, were $3,677,000 in the third quarter of 2012 compared to $3,164,000 a year ago, an increase of $513 thousand or 16%. Net interest and dividend income was materially unchanged, while noninterest income increased by $514 thousand or 87% primarily due to an increase in the gain on loans sold.

The Company’s taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) decreased by 8 basis points from 3.11% for the third quarter of 2011 to 3.03% for the third quarter of 2012. The Company’s cost of funds declined by 21 basis points during the third quarter of 2012 compared to the third quarter of 2011. Yield on assets declined by 25 basis points over this same period.

Total noninterest expenses for the third quarter were $2,964,000, an increase of $277 thousand or 10% over the third quarter of 2011. Salaries and employee benefit expenses increased by $261 thousand or 19%. Advertising and promotions expenses increased by $35 thousand or 25%. Professional fees decreased by $114 thousand or 49%. The increase in expenses was primarily attributable to strategic initiatives targeted to grow revenues. For the nine months ended September 30, 2012 total noninterest expenses were $8,557,000 compared to $8,081,000 for the nine months ended September 30, 2011, an increase of $476 thousand or 6%.

Capital levels for the Simsbury Bank & Trust Company on September 30, 2012 were above those required to meet the regulatory “well-capitalized” designation.

Simsbury Bank is an independent, local bank for consumers and businesses with region-wide strength in mortgage and commercial banking. The Bank serves customers through full-service offices in Avon, Bloomfield, Granby and Simsbury, Connecticut; mortgage loan originators throughout Connecticut and a mortgage loan production office in Canton, Connecticut; commercial bankers covering Central Connecticut; Simsbury Bank 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