CAMDEN NATIONAL CORPORATION REPORTS A 6% INCREASE IN

SECOND QUARTER 2017 NET INCOME OVER LAST YEAR

CAMDEN, Maine, July 25, 2017/PRNewswire/--Camden National Corporation (NASDAQ: CAC; “Camden National” or the “Company”), a $4.0 billion bank holding company headquartered in Camden, Maine, reported net income for the second quarter of 2017 of $10.2 million and diluted earnings per share ("EPS") of $0.66 per share, each representing an increase over the second quarter of 2016 of 6%.

“We reached another major milestone in the Company's long history this quarter reaching $4.0 billion in total assets," said Gregory A. Dufour, President and Chief Executive Officer of Camden National. "Our positive first half financial results reflect the strength of our growing franchise, highlighted by 6% net income and diluted EPS growth compared to a year ago and 5% loan growth since year end."

For the first half of 2017, the Company's reported net income of $20.3 million and diluted EPS of $1.30 per share, represented an increase over the same period last year of 11% and 10%, respectively. For the first six months of 2017, the Company's return on average assets was 1.04%, return on average tangible equity¹ was 14.16% and efficiency ratio¹ was 57.36%.

SECOND QUARTER 2017 FINANCIAL HIGHLIGHTS

• Net income increased $618,000, or 6%, to $10.2 million compared to the second quarter of 2016 and $158,000, or 2%, compared to last quarter.

• Diluted EPS increased $0.04 per share, or 6%, to $0.66 per share compared to the second quarter of 2016 and $0.02 per share, or 3%, compared to last quarter.

• Return on average assets of 1.03% and return on average equity of 10.17% for the second quarter of 2017.

• Loan growth (excluding loans held for sale) for the second quarter of 2017 was 3% (14% annualized).

• Tangible book value per share¹ at June 30, 2017 increased 3% to $19.75 per share since last quarter.

FINANCIAL CONDITION

ASSETS AND LOANS

Total assets at June 30, 2017 increased $172.1 million, or 4%, to $4.0 billion since December 31, 2016. Our asset growth for the six months ended June 30, 2017 was driven by loan growth (excluding loans held for sale) of $141.7 million, or 5%, and a $34.7 million, or 4%, increase in our investments portfolio.

Loan growth (excluding loans held for sale) for the first six months of 2017 was centered within commercial real estate, which grew $88.0 million, or 8%. In addition, residential real estate loans grew $29.1 million, or 4%, and commercial loans grew $27.8 million, or 7%, over the same period.

For the three and six months ended June 30, 2017, the Company originated $101.4 million and $180.8 million of residential mortgages, respectively, and sold 54% and 50% of its production.

DEPOSITS AND BORROWINGS

Total deposits at June 30, 2017 increased 4% since year-end to $2.9 billion, while total borrowings increased 7% to $641.7 million over the same period.

Core deposits (demand, interest checking, savings and money market) at June 30, 2017 increased $45.2 million, or 2%, since year-end driven by an increase in demand and interest checking of $17.2 million and $36.0 million, respectively. Brokered deposits at June 30, 2017 increased $79.1 million, or 29%, since year-end to fund loan growth.

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¹   This is a non-GAAP measure. Please refer to "Reconciliation of non-GAAP to GAAP Financial Measures" for further details.

At June 30, 2017, the Company's loans-to-deposit ratio was 93%, compared to 92% at December 31, 2016 and 94% at June 30, 2016.

Average core deposits for the three and six months ended June 30, 2017 increased 3% and 4%, respectively, compared to the same periods last year.

ASSET QUALITY

Overall, the Company's asset quality continues to be strong, recognizing that at June 30, 2017 non-performing loans and non-performing assets to total assets ratios increased 13 and 9 basis points to 1.12% and 0.77%, respectively, since the first quarter of 2017. At June 30, 2017, loans 30-89 days past due to total loans increased as well since last quarter 6 basis points to 0.32%. The increase in these asset quality metrics was primarily driven by one commercial real estate loan relationship and one residential mortgage loan.

CAPITAL

The Company and its wholly-owned subsidiary Camden National Bank, continue to maintain risk-based capital ratios in excess of the regulatory levels required for an institution to be considered “well capitalized.” At June 30, 2017, the Company’s total risk-based capital ratio and Tier I leverage capital ratio were 13.87% and 8.92%, respectively.

Tangible book value per share¹ and the tangible common equity ratio¹ continue to trend favorably. Tangible book value per share¹ at June 30, 2017 increased 5% since year-end to $19.75 per share, while the tangible common equity ratio¹ increased to 7.79% from 7.71% at December 31, 2016.

FINANCIAL OPERATING RESULTS

SECOND QUARTER 2017 COMPARED TO SECOND QUARTER 2016:

Net interest income increased $122,000 to $28.6 million due to higher average interest-earning assets of $174.3 million, which was primarily driven by average loan growth of $133.6 million, or 5%; however, this was partially offset by a decline in net interest margin of 15 basis points to 3.19% for the second quarter of 2017 compared to the second quarter of 2016. The net interest margin decrease was largely attributable to a decrease of $1.3 million of net interest income recognized on loan and deposit fair value mark accretion and collections on previously charged-off acquired loans. The Company's net interest margin excluding the impact of loan and deposit fair value mark accretion and collections on previously charged-off acquired loans was 3.09% for the second quarter of 2017 and 2016.

Non-interest income decreased $664,000 to $9.9 million due to less commercial back-to-back loan swap fee income of $903,000 and less bank-owned life insurance income of $322,000. Non-interest income increased across all other channels, including debit card income, service charges and related fees, fiduciary services and brokerage and insurance commissions, compared to the second quarter of 2016.

The provision for credit losses for the second quarter of 2017 decreased $1.5 million, or 51%, to $1.4 million compared to the same period last year. The net charge-offs to average loans ratio (annualized) for the second quarter of 2017 increased 4 basis points to 0.11% compared to the second quarter of 2016, however this was offset by $2.3 million of incremental provision in the second quarter of 2016 that was required for two loans.

Non-interest expense for the second quarter of 2017 decreased $172,000, or 1%, to $22.2 million compared to the second quarter of 2016. The decrease was driven by the absence of merger-related expenses in the second quarter of

2017 and lower costs across net occupancy, consulting and professional, regulatory assessment, and other real estate

owned and collection costs, partially offset by a 3% increase in compensation expense. The efficiency ratio¹ for the second quarter of 2017 was 56.76% compared to 55.97% for the same period last year.

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¹ This is a non-GAAP measure. Please refer to "Reconciliation of non-GAAP to GAAP Financial Measures" for further details.

The Company's effective income tax rate for the second quarter of 2017 was 31.6% compared to 30.7% for the second quarter of 2016. The difference in the effective income tax rate was driven by an increase in non-taxable bank-owned life insurance income in the second quarter of 2016 that reduced the effective income tax rate.

SECOND QUARTER 2017 COMPARED TO FIRST QUARTER 2017:

Net income for the second quarter of 2017 increased $158,000 over last quarter.

Total revenues² for the second quarter of 2017 increased $2.1 million, or 6%, over last quarter. The increase was driven by an increase in non-interest income of $1.3 million, or 15%, and an increase in net interest income of $771,000, or 3%.

• Non-interest income increased $1.3 million primarily due to an increase of commercial back-to-back loan swap fee income of $423,000 and mortgage banking income of $384,000 driven by greater loan sales and a larger loan pipeline. Non-interest income increased across many other non-interest income channels, including debit card income, service charges and related fees, fiduciary services and brokerage and insurance commissions, compared to last quarter.

• Net interest income increased $771,000 primarily due to an increase in average interest-earning assets of $70.3 million, which was primarily driven by average loan growth of $61.2 million, or 2%. Net interest margin for the second quarter of 2017 was 3.19%, compared to 3.18% last quarter. The Company's net interest margin excluding the impact of loan and deposit fair value mark accretion and collection on previously charged-off acquire loans for the first and second quarter of 2017 was 3.09%. Our loan yield increased 8 basis points in the second quarter of 2017 over last quarter, while its cost of funds increased 7 basis points over the same period.

The provision for credit losses for the second quarter of 2017 increased $822,000 over last quarter primarily due to greater loan growth and an increase in net charge-offs to average loans (annualized) ratio of 0.11% compared to 0.00% last quarter.

Non-interest expense for the second quarter of 2017 increased $730,000, or 3%, compared to last quarter. The increase was driven by an increase in compensation-related costs of 2% and an increase in collection-related costs of $388,000. The efficiency ratio¹ for the second quarter of 2017 was 56.76% compared to 58.00% last quarter.

The Company's effective income tax rate for the second quarter of 2017 was 31.6% compared to 30.1% for the first quarter of 2017. The difference in the effective income tax rate was driven by windfall tax benefits recognized in the first quarter of 2017 that reduced the effective income tax rate.

SECOND QUARTER 2017 DIVIDEND

The Board of Directors approved a dividend of $0.23 per share, payable on July 31, 2017, to shareholders of record as of July 17, 2017. This distribution represents an annualized dividend yield of 2.14%, based on the June 30, 2017 closing price of Camden National's common stock at $42.91 per share as reported by NASDAQ.

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¹   This is a non-GAAP measure. Please refer to "Reconciliation of non-GAAP to GAAP Financial Measures" for further details.

²   Revenue is defined as the sum of net interest income and non-interest income.

CONFERENCE CALL

Camden National will host a conference call and webcast at 3:30 p.m. eastern time on July 25, 2017 to discuss our second quarter 2017 financial results and outlook. Participants should dial in to the call 10 - 15 minutes before it begins. Information about the conference call is as follows:

Live dial-in (domestic): (888) 349-0139

Live dial-in (international):(412) 542-4154

Live webcast:http://services.choruscall.com/links/cac170725.html

A link to the live webcast will be will be available on Camden National's website under "Investor Relations" at www.CamdenNational.com prior to the meeting, and a replay of the webcast will be available on Camden National's website following the conference call. The transcript of the conference call will also be available on Camden National's website approximately two days after the conference call.

ABOUT CAMDEN NATIONAL CORPORATION

Camden National Corporation (NASDAQ:CAC), headquartered in Camden, Maine, is the largest publicly traded bank holding company in Northern New England with $4.0 billion in assets and nearly 650 employees. Camden National Bank, its subsidiary, is a full-service community bank founded in 1875 that offers an array of consumer and business financial products and services, accompanied by the latest in digital banking technology to empower customers to bank the way they want. Camden National Bank provides personalized service through a network of 60 banking centers, 76 ATMs, and lending offices in New Hampshire and Massachusetts, all complimented by 24/7 live phone support. Comprehensive wealth management, investment, and financial planning services are delivered by Camden National Wealth Management. To learn more, visit www.CamdenNational.com. Member FDIC.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, projections and other statements, which are subject to numerous risks, assumptions and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business in which Camden National is engaged, changes in the securities markets and other risks and uncertainties disclosed from time to time in in Camden National’s Annual Report on Form 10-K for the year ended December 31, 2016, as updated by other filings with the Securities and Exchange Commission ("SEC"). Camden National does not have any obligation to update forward-looking statements.

USE OF NON-GAAP MEASURES

In addition to evaluating the Company's results of operations in accordance with generally accepted accounting principles in the United States ("GAAP"), management supplements this evaluation with certain non-GAAP financial measures, such as the efficiency, and tangible common equity ratios; return on average tangible equity; tangible book value per share; and tax-equivalent net interest income. Management believes these non-GAAP financial measures help investors in understanding the Company's operating performance and trends and allow for better performance comparisons to other financial institutions. In addition, these non-GAAP financial measures remove the impact of unusual items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for GAAP operating results, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other financial institutions. Reconciliation to the comparable GAAP financial measure can be found in this document.

ANNUALIZED DATA

Certain returns, yields and performance ratios are presented on an “annualized” basis. This is done for analytical and decision-making purposes to better discern underlying performance trends when compared to full-year or year-over-year amounts.

Selected Financial Data (unaudited)
	At or For The Three Months Ended									At or For The Six Months Ended
(In thousands, except number of shares and per share data)	June 30, 2017			March 31, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Financial Condition Data
Investments	$	932,338		$	943,061		$	921,989		$	932,338		$	921,989
Loans and loans held for sale	2,747,053			2,650,818			2,608,228			2,747,053			2,608,228
Allowance for loan losses	24,394			23,721			23,717			24,394			23,717
Total assets	4,036,367			3,938,465			3,910,386			4,036,367			3,910,386
Deposits	2,940,866			2,937,183			2,773,487			2,940,866			2,773,487
Borrowings	641,662			556,922			690,476			641,662			690,476
Shareholders' equity	406,960			397,827			384,856			406,960			384,856
Operating Data
Net interest income	$	28,626		$	27,855		$	28,504		$	56,481		$	56,456
Provision for credit losses	1,401			579			2,852			1,980			3,724
Non-interest income	9,888			8,572			10,552			18,460			18,469
Non-interest expense	22,158			21,428			22,330			43,586			45,239
Income before income tax expense	14,955			14,420			13,874			29,375			25,962
Income tax expense	4,721			4,344			4,258			9,065			7,700
Net income	$	10,234		$	10,076		$	9,616		$	20,310		$	18,262
Key Ratios
Return on average assets	1.03		%	1.05		%	1.01		%	1.04		%	0.97		%
Return on average equity	10.17		%	10.36		%	10.22		%	10.27		%	9.82		%
Net interest margin	3.19		%	3.18		%	3.34		%	3.19		%	3.34		%
Non-performing loans to total loans	1.12		%	0.99		%	1.10		%	1.12		%	1.10		%
Non-performing assets to total assets	0.77		%	0.68		%	0.75		%	0.77		%	0.75		%
Annualized net charge-offs to average loans	0.11		%	0.00		%	0.07		%	0.05		%	0.09		%
Tier I leverage capital ratio	8.92		%	8.90		%	8.44		%	8.92		%	8.44		%
Total risk-based capital ratio	13.87		%	14.05		%	12.94		%	13.87		%	12.94		%
Per Share Data(1)
Basic earnings per share	$	0.66		$	0.65		$	0.62		$	1.31		$	1.18
Diluted earnings per share	$	0.66		$	0.64		$	0.62		$	1.30		$	1.18
Cash dividends declared per share	$	0.23		$	0.23		$	0.20		$	0.46		$	0.40
Book value per share	$	26.23		$	25.65		$	24.96		$	26.23		$	24.96
Weighted average number of common shares outstanding	15,512,761			15,488,848			15,415,308			15,500,862			15,402,629
Diluted weighted average number of common shares outstanding	15,586,571			15,568,639			15,491,010			15,576,711			15,472,798
Non-GAAP Measures(2)
Return on average tangible equity	13.96		%	14.37		%	14.50		%	14.16		%	14.04		%
Tangible common equity ratio	7.79		%	7.74		%	7.42		%	7.79		%	7.42		%
Efficiency ratio	56.76		%	58.00		%	55.97		%	57.36		%	58.46		%
Tangible book value per share(1)	$	19.75		$	19.14		$	18.31		$	19.75		$	18.31

(1) Second quarter 2016 shares and per share data adjusted for three-for-two stock split effective September 30, 2016.

(2) Please see "Reconciliation of non-GAAP to GAAP Financial Measures."

Consolidated Statements of Condition Data (unaudited)
(In thousands, except number of shares)	June 30, 2017			December 31, 2016			June 30, 2016
ASSETS
Cash and due from banks	$	93,033		$	87,707		$	96,443
Securities:
Available-for-sale securities, at fair value	810,858			779,867			799,526
Held-to-maturity securities, at amortized cost	94,340			94,609			93,609
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	27,140			23,203			28,854
Total securities	932,338			897,679			921,989
Loans held for sale, at fair value	10,784			14,836			22,928
Loans:
Residential real estate	831,577			802,494			800,556
Commercial real estate	1,138,756			1,050,780			1,017,777
Commercial(1)	421,818			394,051			407,168
Consumer and home equity	344,118			347,239			359,799
Total loans	2,736,269			2,594,564			2,585,300
Less: allowance for loan losses	(24,394		)	(23,116		)	(23,717		)
Net loans	2,711,875			2,571,448			2,561,583
Goodwill	94,697			94,697			94,697
Other intangible assets	5,820			6,764			7,715
Bank-owned life insurance	79,266			78,119			77,352
Premises and equipment, net	42,362			42,873			44,299
Deferred tax assets	36,532			39,263			34,559
Other assets	29,660			30,844			48,821
Total assets	$	4,036,367		$	3,864,230		$	3,910,386
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits:
Demand	$	424,174		$	406,934		$	381,323
Interest checking	737,532			701,494			752,036
Savings and money market	971,156			979,263			940,577
Certificates of deposit	456,227			468,203			493,488
Brokered deposits	351,777			272,635			206,063
Total deposits	2,940,866			2,828,529			2,773,487
Short-term borrowings	572,073			530,129			600,975
Long-term borrowings	10,756			10,791			30,824
Subordinated debentures	58,833			58,755			58,677
Accrued interest and other liabilities	46,879			44,479			61,567
Total liabilities	3,629,407			3,472,683			3,525,530
Shareholders’ equity	406,960			391,547			384,856
Total liabilities and shareholders’ equity	$	4,036,367		$	3,864,230		$	3,910,386

(1) Includes the Healthcare Professional Funding Corporation ("HPFC") loan portfolio.

Consolidated Statements of Income Data (unaudited)
	For The Three Months Ended
(In thousands, except per share data)	June 30, 2017		March 31, 2017			June 30, 2016
Interest Income
Interest and fees on loans	$	28,423	$	27,062		$	27,706
Interest on U.S. government and sponsored enterprise obligations	4,355		4,256			4,016
Interest on state and political subdivision obligations	691		702			711
Interest on federal funds sold and other investments	471		394			342
Total interest income	33,940		32,414			32,775
Interest Expense
Interest on deposits	2,987		2,554			2,109
Interest on borrowings	1,476		1,161			1,313
Interest on subordinated debentures	851		844			849
Total interest expense	5,314		4,559			4,271
Net interest income	28,626		27,855			28,504
Provision for credit losses	1,401		579			2,852
Net interest income after provision for credit losses	27,225		27,276			25,652
Non-Interest Income
Debit card income	1,992		1,834			1,854
Service charges on deposit accounts	1,957		1,823			1,833
Mortgage banking income, net	1,937		1,553			1,706
Income from fiduciary services	1,355		1,247			1,342
Bank-owned life insurance	570		577			892
Brokerage and insurance commissions	548		453			517
Other service charges and fees	501		468			477
Net gain on sale of securities	—		—			4
Other income	1,028		617			1,927
Total non-interest income	9,888		8,572			10,552
Non-Interest Expense
Salaries and employee benefits	12,376		12,147			11,999
Furniture, equipment and data processing	2,450		2,325			2,381
Net occupancy costs	1,689		1,946			1,790
Consulting and professional fees	853		845			982
Debit card expense	712		660			718
Regulatory assessments	488		545			774
Amortization of intangible assets	472		472			476
Other real estate owned and collection (recoveries) costs, net	344		(44		)	496
Merger and acquisition costs	—		—			177
Other expenses	2,774		2,532			2,537
Total non-interest expense	22,158		21,428			22,330
Income before income tax expense	14,955		14,420			13,874
Income tax expense	4,721		4,344			4,258
Net Income	$	10,234	$	10,076		$	9,616
Per Share Data
Basic earnings per share	$	0.66	$	0.65		$	0.62
Diluted earnings per share	$	0.66	$	0.64		$	0.62

Consolidated Statements of Income Data (unaudited)
	For The Six Months Ended June 30,
(In thousands, except per share data)	2017		2016
Interest Income
Interest and fees on loans	$	55,485	$	54,722
Interest on U.S. government and sponsored enterprise obligations	8,611		8,006
Interest on state and political subdivision obligations	1,393		1,425
Interest on federal funds sold and other investments	865		603
Total interest income	66,354		64,756
Interest Expense
Interest on deposits	5,541		4,151
Interest on borrowings	2,637		2,449
Interest on junior subordinated debentures	1,695		1,700
Total interest expense	9,873		8,300
Net interest income	56,481		56,456
Provision for credit losses	1,980		3,724
Net interest income after provision for credit losses	54,501		52,732
Non-Interest Income
Debit card income	3,826		3,756
Service charges on deposit accounts	3,780		3,557
Mortgage banking income, net	3,490		2,514
Income from fiduciary services	2,602		2,511
Bank-owned life insurance	1,147		1,314
Brokerage and insurance commissions	1,001		975
Other service charges and fees	969		903
Net gain on sale of securities	—		4
Other income	1,645		2,935
Total non-interest income	18,460		18,469
Non-Interest Expense
Salaries and employee benefits	24,523		23,590
Furniture, equipment and data processing	4,775		4,808
Net occupancy costs	3,635		3,667
Consulting and professional fees	1,698		1,867
Debit card expense	1,372		1,438
Regulatory assessments	1,033		1,495
Amortization of intangible assets	944		952
Other real estate owned and collection costs	300		1,152
Merger and acquisition costs	—		821
Other expenses	5,306		5,449
Total non-interest expense	43,586		45,239
Income before income tax expense	29,375		25,962
Income tax expense	9,065		7,700
Net Income	$	20,310	$	18,262
Per Share Data
Basic earnings per share	$	1.31	$	1.18
Diluted earnings per share	$	1.30	$	1.18

Quarterly Average Balance and Yield/Rate Analysis (unaudited)
	For The Three Months Ended
	Average Balance						Yield/Rate
(In thousands)	June 30, 2017		March 31, 2017		June 30, 2016		June 30, 2017		March 31, 2017		June 30, 2016
Assets
Interest-earning assets:
Securities - taxable	$	843,370	$	833,162	$	801,752	2.29	%	2.23	%	2.17	%
Securities - nontaxable(1)	101,807		102,928		102,712		4.17	%	4.20	%	4.26	%
Loans(2)(3):
Residential real estate	826,353		814,626		823,908		4.12	%	4.10	%	4.26	%
Commercial real estate	1,114,508		1,076,788		983,965		4.05	%	3.93	%	4.12	%
Commercial(1)	334,761		319,556		294,795		4.23	%	4.09	%	4.18	%
Municipal(1)	18,268		16,071		17,847		3.42	%	3.39	%	3.04	%
Consumer and home equity	341,544		342,775		362,735		4.36	%	4.33	%	4.17	%
HPFC	53,843		58,252		72,417		8.78	%	8.34	%	9.97	%
Total loans	2,689,277		2,628,068		2,555,667		4.23	%	4.15	%	4.34	%
Total interest-earning assets	3,634,454		3,564,158		3,460,131		3.77	%	3.70	%	3.83	%
Other assets	344,945		339,684		366,668
Total assets	$	3,979,399	$	3,903,842	$	3,826,799
Liabilities & Shareholders' Equity
Deposits:
Demand	$	392,789	$	391,671	$	355,184	—	%	—	%	—	%
Interest checking	732,096		716,940		729,907		0.18	%	0.15	%	0.13	%
Savings	489,408		489,041		448,594		0.06	%	0.06	%	0.06	%
Money market	477,734		483,914		490,815		0.49	%	0.45	%	0.44	%
Certificates of deposit(3)	456,933		463,786		483,823		0.92	%	0.88	%	0.78	%
Total deposits	2,548,960		2,545,352		2,508,323		0.32	%	0.30	%	0.28	%
Borrowings:
Brokered deposits	349,762		308,594		207,371		1.08	%	0.87	%	0.67	%
Subordinated debentures	58,814		58,775		58,658		5.80	%	5.83	%	5.82	%
Other borrowings	577,450		552,508		622,185		1.02	%	0.85	%	0.85	%
Total borrowings	986,026		919,877		888,214		1.33	%	1.18	%	1.14	%
Total funding liabilities	3,534,986		3,465,229		3,396,537		0.60	%	0.53	%	0.51	%
Other liabilities	40,790		44,337		51,853
Shareholders' equity	403,623		394,276		378,409
Total liabilities & Shareholders' Equity	$	3,979,399	$	3,903,842	$	3,826,799
Net interest rate spread (fully-taxable equivalent)							3.17	%	3.17	%	3.32	%
Net interest margin (fully-taxable equivalent)							3.19	%	3.18	%	3.34	%
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3)							3.09	%	3.09	%	3.09	%

(1)  Reported on tax-equivalent basis calculated using a tax rate of 35%, including certain commercial loans.

(2)  Non-accrual loans and loans held for sale are included in total average loans.

(3) Excludes the impact of the fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans for the three months ended June 30, 2017, March 31, 2017 and June 30, 2016 totaling $861,000, $804,000 and $2.1 million, respectively.

Year-To-Date Average Balance and Yield/Rate Analysis (unaudited)
	For The Six Months Ended
	Average Balance				Yield/Rate
(In thousands)	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Assets
Interest-earning assets:
Securities - taxable	$	838,294	$	791,638	2.26	%	2.17	%
Securities - nontaxable(1)	102,364		102,385		4.19	%	4.28	%
Loans(2)(3):
Residential real estate	820,522		826,002		4.11	%	4.18	%
Commercial real estate	1,095,425		966,418		3.99	%	4.15	%
Commercial(1)	327,527		282,004		4.16	%	4.39	%
Municipal(1)	17,176		15,636		3.41	%	3.27	%
Consumer and home equity	342,156		364,088		4.34	%	4.17	%
HPFC	56,035		74,424		8.55	%	9.03	%
Total loans	2,658,841		2,528,572		4.19	%	4.33	%
Total interest-earning assets	3,599,499		3,422,595		3.74	%	3.83	%
Other assets	342,330		362,027
Total assets	$	3,941,829	$	3,784,622
Liabilities & Shareholders' Equity
Deposits:
Demand	$	392,233	$	350,179	—	%	—	%
Interest checking	724,560		723,424		0.17	%	0.11	%
Savings	489,226		449,584		0.06	%	0.06	%
Money market	480,807		484,003		0.47	%	0.42	%
Certificates of deposit(3)	460,340		496,023		0.90	%	0.76	%
Total deposits	2,547,166		2,503,213		0.31	%	0.27	%
Borrowings:
Brokered deposits	329,292		204,767		0.98	%	0.74	%
Junior subordinated debentures	58,795		58,719		5.81	%	5.82	%
Other borrowings	565,048		592,206		0.94	%	0.83	%
Total borrowings	953,135		855,692		1.26	%	1.15	%
Total funding liabilities	3,500,301		3,358,905		0.57	%	0.50	%
Other liabilities	42,552		51,784
Shareholders' equity	398,976		373,933
Total liabilities & shareholders' equity	$	3,941,829	$	3,784,622
Net interest rate spread (fully-taxable equivalent)					3.17	%	3.33	%
Net interest margin (fully-taxable equivalent)					3.19	%	3.34	%
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3)					3.09	%	3.11	%

(1)  Reported on tax-equivalent basis calculated using a tax rate of 35%, including certain commercial loans.

(2)  Non-accrual loans and loans held for sale are included in total average loans.

(3) Excludes the impact of the fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans for the six months ended June 30, 2017 and 2016 totaling $1.7 million and $3.9 million, respectively.

Asset Quality Data (unaudited)
(In thousands)	At or For The Six Months Ended June 30, 2017			At or For The Three Months Ended March 31, 2017			At or For The Year Ended December 31, 2016			At or For The Nine Months Ended September 30, 2016			At or For The Six Months Ended June 30, 2016
Non-accrual loans:
Residential real estate	$	4,890		$	4,105		$	3,945		$	3,986		$	4,697
Commercial real estate	16,291			12,858			12,849			12,917			13,752
Commercial	2,056			1,994			2,088			2,259			3,539
Consumer	1,371			1,552			1,624			1,650			1,615
HPFC	1,083			1,014			207			216			110
Total non-accrual loans	25,691			21,523			20,713			21,028			23,713
Loans 90 days past due and accruing	76			—			—			—			112
Accruing troubled-debt restructured loans not included above	4,809			4,558			4,338			4,468			4,509
Total non-performing loans	30,576			26,081			25,051			25,496			28,334
Other real estate owned:
Residential real estate	—			14			14			75			80
Commercial real estate	341			607			908			736			775
Total other real estate owned	341			621			922			811			855
Total non-performing assets	$	30,917		$	26,702		$	25,973		$	26,307		$	29,189
Loans 30-89 days past due:
Residential real estate	$	3,020		$	2,379		$	2,470		$	2,228		$	2,159
Commercial real estate	3,442			2,531			971			599			2,267
Commercial	269			168			851			463			630
Consumer	1,378			1,008			1,018			552			1,090
HPFC	639			777			1,029			492			876
Total loans 30-89 days past due	$	8,748		$	6,863		$	6,339		$	4,334		$	7,022
Allowance for loan losses at the beginning of the period	$	23,116		$	23,116		$	21,166		$	21,166		$	21,166
Provision for loan losses	1,984			581			5,269			5,011			3,724
Charge-offs:
Residential real estate	195			5			356			229			229
Commercial real estate	12			3			315			273			241
Commercial	362			136			2,218			1,970			429
Consumer	454			15			409			289			226
HPFC	—			—			507			507			302
Total charge-offs	1,023			159			3,805			3,268			1,427
Total recoveries	317			183			486			381			254
Net charge-offs (recoveries)	706			(24		)	3,319			2,887			1,173
Allowance for loan losses at the end of the period	$	24,394		$	23,721		$	23,116		$	23,290		$	23,717
Components of allowance for credit losses:
Allowance for loan losses	$	24,394		$	23,721		$	23,116		$	23,290		$	23,717
Liability for unfunded credit commitments	7			9			11			14			22
Allowance for credit losses	$	24,401		$	23,730		$	23,127		$	23,304		$	23,739
Ratios:
Non-performing loans to total loans	1.12		%	0.99		%	0.97		%	0.98		%	1.10		%
Non-performing assets to total assets	0.77		%	0.68		%	0.67		%	0.67		%	0.75		%
Allowance for loan losses to total loans	0.89		%	0.90		%	0.89		%	0.90		%	0.92		%
Net charge-offs to average loans (annualized):
Quarter-to-date	0.11		%	0.00		%	0.07		%	0.26		%	0.07		%
Year-to-date	0.05		%	0.00		%	0.13		%	0.15		%	0.09		%
Allowance for loan losses to non-performing loans	79.78		%	90.95		%	92.28		%	91.35		%	85.71		%
Loans 30-89 days past due to total loans	0.32		%	0.26		%	0.24		%	0.17		%	0.27		%

Reconciliation of non-GAAP to GAAP Financial Measures

Efficiency Ratio:
	For the Three Months Ended									For the Six Months Ended
(In thousands)	June 30, 2017			March 31, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Non-interest expense, as presented	$	22,158		$	21,428		$	22,330		$	43,586		$	45,239
Less: merger and acquisition costs	—			—			(177		)	—			(821		)
Adjusted non-interest expense	$	22,158		$	21,428		$	22,153		$	43,586		$	44,418
Net interest income, as presented	$	28,626		$	27,855		$	28,504		$	56,481		$	56,456
Add: effect of tax-exempt income(1)	525			520			529			1,045			1,054
Non-interest income, as presented	9,888			8,572			10,552			18,460			18,469
Less: net gain on sale of securities	—			—			(4		)	—			(4		)
Adjusted net interest income plus non-interest income	$	39,039		$	36,947		$	39,581		$	75,986		$	75,975
Non-GAAP efficiency ratio	56.76		%	58.00		%	55.97		%	57.36		%	58.46		%
GAAP efficiency ratio	57.53		%	58.82		%	57.17		%	58.16		%	60.38		%

(1) Assumed a 35% tax rate.

Tax-Equivalent Net Interest Income:
	For the Three Months Ended						For the Six Months Ended
(In thousands)	June 30, 2017		March 31, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Net interest income, as presented	$	28,626	$	27,855	$	28,504	$	56,481	$	56,456
Add: effect of tax-exempt income(1)	525		520		529		1,045		1,054
Net interest income, tax equivalent	$	29,151	$	28,375	$	29,033	$	57,526	$	57,510

(1) Assumed a 35% tax rate.

Tangible Book Value Per Share and Tangible Common Equity Ratio:
	June 30, 2017			March 31,  2017			June 30, 2016
(In thousands, except number of shares and per share data)
Tangible Book Value Per Share:
Shareholders' equity, as presented	$	406,960		$	397,827		$	384,856
Less: goodwill and other intangible assets	(100,517		)	(100,989		)	(102,413		)
Tangible equity	$	306,443		$	296,838		$	282,443
Shares outstanding at period end	15,512,914			15,508,025			15,421,651
Tangible book value per share	$	19.75		$	19.14		$	18.31
Book value per share	$	26.23		$	25.65		$	24.96
Tangible Common Equity Ratio:
Total assets	$	4,036,367		$	3,938,465		$	3,910,386
Less: goodwill and other intangibles	(100,517		)	(100,989		)	(102,413		)
Tangible assets	$	3,935,850		$	3,837,476		$	3,807,973
Tangible common equity ratio	7.79		%	7.74		%	7.42		%
Shareholders' equity to total assets	10.08		%	10.10		%	9.84		%

Return on Average Tangible Equity:
	For the Three Months Ended									For the Six Months Ended
(In thousands)	June 30, 2017			March 31, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Net income, as presented	$	10,234		$	10,076		$	9,616		$	20,310		$	18,262
Amortization of intangible assets, net of tax(1)	307			307			309			614			619
Net income, adjusted for amortization of intangible assets	$	10,541		$	10,383		$	9,925		$	20,924		$	18,881
Average equity	$	403,623		$	394,276		$	378,409		$	398,976		$	373,933
Less: average goodwill and other intangible assets	(100,745		)	(101,229		)	(103,203		)	(100,986		)	(103,502		)
Average tangible equity	$	302,878		$	293,047		$	275,206		$	297,990		$	270,431
Return on average tangible equity	13.96		%	14.37		%	14.50		%	14.16		%	14.04		%
Return on average equity	10.17		%	10.36		%	10.22		%	10.27		%	9.82		%

(1) Assumed a 35% tax rate.

CONTACT: Michael R. Archer, Senior Vice President, Corporate Controller, Camden National Corporation, (800) 860-8821, marcher@camdennational.com