Exhibit 99.1

SBT Bancorp, Inc. Reports Second Quarter 2017 Results

SIMSBURY, Conn.--(BUSINESS WIRE)--July 27, 2017--SBT Bancorp, Inc. (the “Company”), (OTCQX: SBTB), holding company for The Simsbury Bank & Trust Company, Inc. (the “Bank”), today announced net income of $568 thousand or $0.42 basic and $0.42 diluted earnings per share for the quarter ended June 30, 2017, compared to a net income of $251 thousand or $0.19 basic and $0.19 diluted earnings per share for the prior year’s second quarter.

Net interest and dividend income increased $325 thousand or 9.8% as compared to the prior year’s second quarter primarily due to growth in the Bank’s commercial portfolio. Noninterest income increased $67 thousand due principally to an increase in mortgage banking activities income of $39 thousand. Noninterest expenses for the three months ended June 30, 2017 were $3.6 million, equivalent to the prior year period.

“We are very pleased to report improved earnings for the second quarter of 2017 resulting principally from commercial loan growth and strong expense management,” said Simsbury Bank President & CEO Martin J. Geitz. “Our net income for the quarter ended June 30, 2017 increased over 126% ($317 thousand) compared to the prior year period ended June 30, 2016. Most of our balance sheet growth came from a 22.7% increase in commercial loans since the end of the prior year second quarter as our focus on serving the needs of privately owned and family owned businesses continues to gain momentum.”

Key highlights for quarter ended June 30, 2017 compared to quarter ended June 30, 2016 included:

• Net income increased $317 thousand or 126.3%.
• Total revenue, consisting of net interest and dividend income plus noninterest income, increased $392 thousand or 9.8%.
• Net interest and dividend income increased 9.8% to $3.6 million.
• Provision for loan losses totaled $85 thousand, a decrease of $85 thousand compared to the quarter ended June 30, 2016. The allowance for loan losses at June 30, 2017 was 0.96% of total gross loans.
• Net loans grew $39.4 million or 10.7%.
• Commercial loan balances increased $34.8 million or 22.7% to $188.3 million compared to June 30, 2016.
• Total deposits increased $40.4 million or 10.7% to $418 million, driven by increases in demand deposits of $4.6 million, savings and NOW deposits of $30.5 million, and time deposits of $5.3 million.

The Company’s allowance for loan losses at June 30, 2017 was 0.96% of total gross loans. The Company had non-accrual loans totaling $3.3 million or 0.81% of total loans on June 30, 2017, compared to non-accrual loans totaling $3.7 million or 1.0% of total loans a year ago. Total non-accrual and delinquent loans on June 30, 2017 was 0.91% of loans outstanding compared to 1.67% on June 30, 2016.

Total deposits on June 30, 2017 were $418 million, an increase of $40.4 million or 10.7% over a year ago. At quarter end, 32% of total deposits were in non-interest bearing demand accounts, 52% were in low-cost savings, money market and NOW accounts and 16% were in time deposits.

For the quarter ended June 30, 2017, total net revenues, consisting of net interest and dividend income plus noninterest income, were $4.4 million compared to $4.0 million for the same period in 2016, an increase of $392 thousand or 9.8% above the prior year’s second quarter. Net interest and dividend income increased $325 thousand or 9.8%, primarily driven by a $509 thousand, or 15%, increase in interest and fees on loans. The increase was partially offset by decreased interest income on securities of $40 thousand. Noninterest income increased by $67 thousand or 9.5%, primarily due to an increase in mortgage banking activities of $39 thousand and an increase in other service charges and fees of $24 thousand.

For the year-to-date ended June 30, 2017, total net revenues, consisting of net interest and dividend income plus noninterest income, were $8.6 million compared to $7.7 million for the same period in 2016, an increase of $936 thousand or 12.2% above the prior year-to-date period. Net interest and dividend income increased $693 thousand or 10.7%, primarily driven by a $1.1 million, or 17%, increase in interest and fees on loans. The increase was partially offset by decreased interest income on securities of $91 thousand and increased interest expenses of $329 thousand. Noninterest income increased by $243 thousand or 20.9%, primarily due to an increase in mortgage banking activities of $287 thousand, offset by a decrease in gain on sale of available-for-sale securities, net of writedowns, of $72 thousand.

The Company’s year-to-date 2017 taxable-equivalent net interest margin (taxable-equivalent net interest and dividend income divided by average earning assets) was 3.03% compared to 3.03% for the comparable 2016 period. The Company’s yield on earning assets increased 10 basis points to 3.45% and the cost of funds increased 14 basis points to 0.59%, primarily driven by the subordinated debt interest and increased FHLB borrowings interest.

Total noninterest expense for the second quarter 2017 was $3.6 million, equivalent to the second quarter of 2016. Total noninterest expense for the year-to-date ended June 30, 2017 was $6.9 million, equivalent to the comparable 2016 year-to-date period.

Capital levels for The Simsbury Bank & Trust Company on June 30, 2017 remain above the regulatory “well-capitalized” designation. Capital ratios are calculated under Basel III rules.

Simsbury Bank is an independent, community bank for consumers and businesses based in Connecticut. Simsbury Bank Home Loans is a division of Simsbury Bank serving the home financing needs of consumers throughout Southern New England. 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
SVP & CFO
860-408-4679 (fax)
rsudol@simsburybank.com