Exhibit 99.1

Camden National Corporation Reports 19% Increase in Earnings for the First Quarter of 2011

CAMDEN, Maine--(BUSINESS WIRE)--April 26, 2011--Camden National Corporation (NASDAQ: CAC; “Camden National”) reported net income of $6.3 million for the first quarter of 2011, an increase of $1.0 million, or 19%, compared to the first quarter of 2010 and a slight decline compared to the fourth quarter of 2010 net income level of $6.4 million. Earnings per diluted share were $0.83 for the first quarter of 2011, compared to $0.69 and $0.84 for the first and fourth quarters of 2010, respectively.

“We are pleased to report a strong start to 2011 with a return on assets of 1.11% and return on equity of 12.45% for the first quarter of the year,” said Gregory A. Dufour, president and chief executive officer of Camden National. “Since the first quarter of 2010, we have improved our tangible capital to 7.20% of total assets from 6.85%, increased our allowance for loan losses to 1.49% of total loans from 1.40%, and grown our total risk-based capital ratio to 15.10% from 13.90%. While the Federal Reserve has not issued new guidance related to capital ratios for financial institutions, we continue to focus on building capital to provide long-term benefits and stability to our shareholders.”

Asset Quality and the Provision for Credit Losses

“General weakness in the national and regional economies continues to impact our asset quality,” said Dufour. “We are pleased to see that our commercial loan portfolio has stabilized; however, the consumer sector has softened as a result of the weak housing and employment markets in Maine.”

Camden National’s level of non-performing assets compared to total assets remained consistent at 1.08% for the first quarter of 2011 and the first and fourth quarters of 2010. Non-performing assets at March 31, 2011, totaled $25.1 million. In comparing the non-performing asset composition from a year ago, other real estate owned declined $3.0 million, residential real estate non-accrual loans increased $1.9 million and restructured consumer loans increased $1.9 million. Camden National’s non-performing assets to total assets ratio of 1.08% compares favorably to its national peer group’s average of 3.90%, based on the most recent Bank Holding Company Performance Report dated December 31, 2010, provided by the Federal Reserve System.

Net loan charge-offs decreased to $523,000, or 0.14%, on an annualized basis of average loans for the first quarter of 2011, compared to $1.1 million, or 0.28%, for the fourth quarter of 2010 and $867,000, or 0.23%, for the first quarter of 2010. The provision for credit losses was $1.1 million for both the first quarter of 2011 and the fourth quarter of 2010 and $2.0 million for the first quarter of 2010. Even with a decline in the provision expense compared to the first quarter of 2010, Camden National’s allowance for credit losses was 1.49% of total loans at March 31, 2011, up from 1.46% at December 31, 2010, and 1.40% at March 31, 2010.

Balance Sheet Highlights

Camden National’s total assets at March 31, 2011 were $2.3 billion, an increase of 1% from December 31, 2010, and an increase of 5% compared to the same period a year ago. The increase in total assets from December 31, 2010, was due to an increase in the investment portfolio of $32.3 million and growth in the commercial portfolio of $17.7 million, partially offset by a decline in the consumer related portfolio of $11.5 million, due primarily to the sale of $8.6 million in thirty-year fixed-rate mortgages.

Total deposits of $1.5 billion at March 31, 2011, increased $28.9 million compared to December 31, 2010, and increased $43.7 million from the same period a year ago. Core deposits increased by $7.2 million, or 1%, during the quarter ended March 31, 2011. Brokered funds also increased $32.6 million from December 31, 2010, as a result of more favorable pricing compared to other funding alternatives, including retail certificates of deposit, which declined $10.9 million from December 31, 2010. With the expiration of the Transaction Account Guarantee Program at the end of 2010, there was movement of deposit balances to retail repurchase agreements (other borrowed funds) for relationships requiring collateralization of funds, resulting in an increase in retail repurchase agreements of $40.5 million compared to December 31, 2010.

Net Interest Income

Camden National’s net interest income of $18.6 million for the first quarter of 2011 decreased $232,000 compared to the fourth quarter of 2010 and increased $494,000 from the first quarter of 2010. The tax equivalent net interest margin was 3.49% for the first quarter of 2011, compared to 3.54% and 3.58% for the fourth and first quarters of 2010, respectively. The decline in net interest margin relates to the prolonged low interest rate environment, where there is less opportunity to reduce pricing on deposits and borrowings to mitigate the continuing decline of yields on loan and investments.

Non-Interest Income and Non-Interest Expense

Non-interest income of $5.1 million for the first quarter of 2011 increased $546,000, or 12%, compared to the first quarter of 2010. This was primarily due to an increase in loan servicing income of $183,000 associated with the addition of 6,000 loans Camden National is servicing for MaineHousing, an increase in debit card interchange income of $115,000, and a $170,000 non-recurring item related to bank-owned life insurance. On a linked-quarter basis, first quarter 2011 non-interest income increased $59,000, despite a decline in mortgage banking income of $349,000 from the fourth quarter of 2010 due to increases in most other non-interest income categories.

Non-interest expense of $13.3 million for the first quarter of 2011 increased $362,000, or 3%, compared to the first quarter of 2010, primarily due to increases in salaries and employee benefits of $626,000 and other expenses of $250,000, partially offset by a decrease in other real estate owned and collection costs of $483,000. Salaries and employee benefits reflect an increase in incentive accruals of $403,000, based on first quarter 2011 financial performance compared to a year ago, as well as a 24% increase in retirement costs, a 3% increase in employee salaries and a 5% increase in health insurance costs. On a linked-quarter basis, first quarter 2011 non-interest expense decreased $444,000, or 3%, with most operating expense categories at lower levels than in the fourth quarter of 2010, including a decline in other real estate owned and collections costs of $230,000.

Camden National’s efficiency ratio was 55.27% in the first quarter of 2011 compared to 56.08% and 56.72% for the first and fourth quarters of 2010, respectively.

Dividends and Capital

The board of directors approved a dividend of $0.25 per share, payable on April 29, 2011, to shareholders of record on April 15, 2011. This resulted in an annualized dividend yield of 2.92%, based on the March 31, 2011, closing price of Camden National’s common stock of $34.24 per share as reported by NASDAQ.

Camden National’s total risk-based capital ratio increased to 15.10% at March 31, 2011, compared to 13.90% at March 31, 2010, and 15.05% at December 31, 2010, as capital levels increased from retained earnings. The Company and Camden National Bank exceeded the minimum total risk-based, tier 1 and tier 1 leverage ratios of 10.0%, 6.0%, and 5.0%, respectively, required by the Federal Reserve for an institution to be considered “well capitalized.”

About Camden National Corporation

Camden National Corporation, headquartered in Camden, Maine, and ranked 12th in USBanker's list of top-performing mid-tier banks in 2010, is the holding company employing more than 400 Maine residents for two financial services companies including Camden National Bank and the wealth management company, Acadia Trust, N.A. Camden National Bank is a full-service community bank with a network of 38 banking offices throughout Maine. Acadia Trust offers investment management and fiduciary services with offices in Portland, Bangor and Ellsworth. Located at Camden National Bank, Camden Financial Consultants, formerly known as Acadia Financial Consultants, offers full-service brokerage and insurance services.

Forward-Looking Statements

This press release and the documents incorporated by reference herein contain certain statements that may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” and other expressions which predict or indicate future events or trends and which do not relate to historical matters. Forward-looking statements should not be relied on, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Camden National. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Camden National to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following: general, national, regional or local economic conditions which are less favorable than anticipated; changes in loan default and charge-off rates; declines in the equity and financial markets; reductions in deposit levels; declines in mortgage loan refinancing, equity loan and line of credit activity; changes in the domestic interest rate environment and inflation; changes in the carrying value of investment securities and other assets; further actions by the U.S. government and Treasury Department, including actions similar to the Federal Home Loan Mortgage Corporation conservatorship, which could have a negative impact on Camden National’s investment portfolio and earnings; misalignment of Camden National’s interest-bearing assets and liabilities; increases in loan repayment rates affecting interest income and the value of mortgage servicing rights; changing business, banking, or regulatory conditions or policies, or new legislation affecting the financial services industry, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, that could lead to changes in the competitive balance among financial institutions, restrictions on bank activities, changes in costs (including deposit insurance premiums), increased regulatory scrutiny, declines in consumer confidence in depository institutions, or changes in the secondary market for bank loan and other products; and changes in accounting rules, Federal and State laws, Internal Revenue Service regulations, and other regulations and policies governing financial holding companies and their subsidiaries which may impact our ability to take appropriate action to protect our financial interests in certain loan situations. Other factors could also cause these differences. For more information about these factors please see our Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q and other filings on file with the SEC. All of these factors should be carefully reviewed, and readers should not place undue reliance on these forward-looking statements.

These forward-looking statements were based on information, plans and estimates at the date of this press release, and Camden National does not promise to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

CONTACT:
Camden National Corporation
Susan M. Westfall, 207-230-2096
Senior Vice President, Clerk
swestfall@camdennational.com