Exhibit 99.1

SBT Bancorp, Inc. Reports Second Quarter 2015 Results

SIMSBURY, Conn.--(BUSINESS WIRE)--July 28, 2015--SBT Bancorp, Inc., (OTCQX: SBTB), holding company for The Simsbury Bank & Trust Company, Inc., today announced net income of $350,000 or $0.36 basic and diluted earnings per share for the quarter ended June 30, 2015, compared to a net income of $115,000 or $0.10 basic and diluted earnings per share, an increase of $0.26 diluted earnings per share compared to the prior year quarter. The increase in net income is mainly due to a $227,000 increase in mortgage banking activities, an $118,000 increase in net interest and dividend income, and a $50,000 decrease in non-interest expense.

“The Bank showed strong growth as compared to June 30, 2014,” said Martin J. Geitz, President and Chief Executive Officer. “Commercial loan balances increased by $16.7 million or 20.5% since June 30, 2014. Performance of our mortgage unit continued to show improvement during the first half of 2015.”

Key highlights for June 30, 2015 compared to June 30, 2014 included:

• Net loans grew $31.8 million or 11.8%.
• Commercial loan balances increased 20.5%.
• Total revenues for the quarter increased 9.4%.
• Residential mortgage banking activities income for the quarter increased 277%.
• Net interest margin of 3.06% for the quarter was 5 basis point higher compared to the prior year’s quarter.
• Total deposits decreased $11.5 million or 3.3%, driven by reductions in CDs ($6.8mm) and Money Market Accounts ($5.2mm).
• Total loan delinquency (non-accrual and delinquent loans) decreased to 1.11% of total loans compared to the previous year’s 1.28%.
• The allowance for loan losses at June 30, 2015 was 0.94% of total loans.
• The Bank’s Total Risk-Based Capital ratio remains strong, ending the first quarter of 2015 at 12.16%.

On June 30, 2015, loans outstanding were $303 million, an increase of $31.8 million, or 11.8% over a year ago. Commercial loans grew by $16.7 million or 20.5% and residential mortgage loans increased by $3.6 million or 2.5%. Consumer loans grew by $5.9 million or 10.6%, mainly due to an increase in purchased auto loans.

The Company’s loan portfolio remains strong. The Company’s allowance for loan losses at June 30, 2015 was 0.94% of total loans. The Company had non-accrual loans totaling $3.0 million or 0.98% of total loans on June 30, 2015, compared to non-accrual loans totaling $2.5 million or 0.92% of total loans a year ago. Total non-accrual and delinquent loans on June 30, 2015 was 1.11% of loans outstanding compared to 1.28% on June 30, 2014.

Total deposits on June 30, 2015 were $334 million, a decrease of $11.5 million or 3.3% over a year ago primarily due to a decrease in time deposits of $6.8 million and a $4.7 million decrease in low cost Demand, Savings and NOW deposits. At quarter-end, 33% of total deposits were in non-interest bearing demand accounts, 49% were in low-cost savings, money market and NOW accounts and 18% were in time deposits.

For the second quarter 2015, total revenues, consisting of net interest and dividend income plus noninterest income, were $3.7 million compared to $3.4 million a year ago, an increase of $319,000 or 9.4%. Non-interest income increased by $201,000 or 33.2%, primarily due to an increase in mortgage banking activities of $227,000, partially offset by a reduction of deposit fee revenue of $15,000. For the six months ended June 30, 2015, total revenues were $7.1 million compared to $6.8 million for the six months ended June 30, 2014, an increase of $337,000 or 5.0%. Noninterest income increased by $219,000 or 19.6%, primarily due to an increase in mortgage banking activities of $290,000.

The Company’s year-to-date 2015 taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) was 3.05% compared to 3.02% for the comparable 2014 period. The Company’s yield on earning assets remained flat at 3.26%, while the cost of funds decreased 4 basis points to 0.30% for the six months ended June 30, 2015 compared to the same period of 2014.

Total noninterest expense for the second quarter 2015 was $3.3 million, a decrease of $50,000 or 1.5% below the second quarter of 2014. The $50,000 decrease was primarily due to a decrease of $129,000 in other expenses, a $29,000 reduction of advertising and promotion expenses, and a $24,000 reduction in FDIC assessment. These decreases were offset by increases in salaries and employee benefits expense of $100,000 and an increase in correspondent bank fees of $41,000. For the six months ended June 30, 2015, total noninterest expense was $6.2 million, a decrease of $442,000 or 6.6% compared to the six months ended June 30, 2014. The decrease was primarily driven by a reduction in salary and benefits expense of $294,000, a reduction of other expenses of $71,000 and a reduction in FDIC assessment of $49,000.

Capital levels for The Simsbury Bank & Trust Company on June 30, 2015 were above those required to meet the regulatory “well-capitalized” designation. Capital ratios are calculated under Basel III rules, which became effective January 1, 2015.

Simsbury Bank is an independent, publicly-held community bank for consumers and businesses. The Bank serves customers through full-service branches in central Connecticut; mortgage loan advisors and commercial bankers active throughout Southern New England; Simsbury Bank Online internet banking at simsburybank.com; Simsbury Bank Mobile Banking; 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 on the OTCQX marketplace under the ticker symbol of 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:
Simsbury Bank
Richard J. Sudol, 860-651-2057
860-408-4679 (fax)
SVP & CFO
rsudol@simsburybank.com