REGULATORY CAPITAL

6 Months Ended

Jun. 30, 2016

Regulatory Capital Requirements [Abstract]

Regulatory Capital Requirements under Banking Regulations

REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the FRB and the OCC.

Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by

regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.

The Company and the Bank are required to maintain certain levels of capital based on risk-adjusted assets. These capital requirements represent quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and the Bank's capital classification is also subject to qualitative judgments by our regulators about components, risk weightings and other factors. The quantitative measures established to ensure capital

adequacy require us to maintain minimum amounts and ratios of total, Tier I capital, and common equity Tier I to risk-weighted

assets, and of Tier I capital to average assets, or leverage ratio. These guidelines apply to the Company on a consolidated basis.

Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier I risk-based capital ratio of 6.0%, a minimum common equity Tier I risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a 2.5% capital conservation buffer consisting of common Tier I equity, subject to a transition schedule with a full phase-in by 2019. Effective January 1, 2016, the Company and the Bank were required to establish a capital conservation buffer of 0.625%, increasing the minimum required total risk-based capital, Tier I risk-based and common equity Tier I capital to risk-weighted assets they must maintain to avoid limits on capital distributions and certain bonus payments to executive officers and similar employees.

The Company and the Bank's risk-based capital ratios exceeded regulatory guidelines at June 30, 2016 and December 31, 2015. The following table presents the Company and Bank's regulatory capital ratios at the periods indicated:

	June 30, 2016				Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer		Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions		December 31, 2015				Minimum Regulatory Capital Required for Capital Adequacy		Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions
	Amount		Ratio						Amount		Ratio
Camden National Corporation:
Total risk-based capital ratio	$	351,791	12.94	%	8.63	%	N/A		$	335,740	12.98	%	8.00	%	N/A
Tier I risk-based capital ratio	313,052		11.51	%	6.63	%	N/A		299,552		11.58	%	6.00	%	N/A
Common equity Tier I risk-based capital ratio	278,673		10.25	%	5.13	%	N/A		269,350		10.42	%	4.50	%	N/A
Tier I leverage capital ratio	313,052		8.44	%	4.00	%	N/A		299,552		8.74	%	4.00	%	N/A
Camden National Bank:
Total risk-based capital ratio	$	317,484	11.64	%	8.63	%	10.00	%	$	304,847	11.75	%	8.00	%	10.00	%
Tier I risk-based capital ratio	293,745		10.77	%	6.63	%	8.00	%	283,659		10.93	%	6.00	%	8.00	%
Common equity Tier I risk-based capital ratio	293,745		10.77	%	5.13	%	6.50	%	283,659		10.93	%	4.50	%	6.50	%
Tier I leverage capital ratio	293,745		7.98	%	4.00	%	5.00	%	283,659		8.33	%	4.00	%	5.00	%

In addition, the OCC requires a minimum level of $2.5 million of Tier I capital to be maintained at Acadia Trust. As of June 30, 2016 and December 31, 2015, Acadia Trust met all of its capital requirements.

On October 8, 2015, the Company issued $15.0 million of 10 year subordinated debentures bearing interest at an annual rate of 5.50%. In addition, $43.0 million of junior subordinated debentures were issued in connection with the issuance of trust preferred securities in 2006 and 2008. Although the subordinated debentures and the junior subordinated debentures are recorded as liabilities on the Company's consolidated statements of condition, the Company is permitted, in accordance with regulatory guidelines, to include, subject to certain limits, each within its calculation of risk-based capital. At June 30, 2016 and December 31, 2015, $15.0 million of subordinated debentures were included as Tier II capital and were included in the calculation of the Company's total risk-based capital, and, at June 30, 2016 and December 31, 2015, $43.0 million of the junior subordinated debentures were included in Tier I and total risk-based capital for the Company.