EXHIBIT 99.1



First National Lincoln Corporation Declares Dividend


DAMARISCOTTA, Maine--(BUSINESS WIRE) -- September 16, 2004--The Board of
Directors of First National Lincoln Corporation (NASDAQ NM: FNLC), today
declared a quarterly dividend of 11.5 cents per share. This third-quarter
dividend, which is payable October 29, 2004, to shareholders of record as of
October 8, 2004, represents an increase of 19.0% or 1.8 cents per share over
the third quarter dividend declared in 2003 of 9.7 cents per share, after
adjusting for the 2004 three-for-one stock split.

"With this increase, the Company has now raised its dividend for 36 consecutive
quarters," noted Daniel R. Daigneault, FNLC's President & Chief Executive
Officer. "This translates into an annual dividend of 46.0 cents per share, and
based on today's closing price of $19.39 per share, our dividend yield is
2.37%.

"Our operating results continue to be very strong in 2004," President
Daigneault went on. "Sharing our profits in the form of cash dividends
continues to be seen by our Board of Directors as important to our
Shareholders. After splitting our shares three-for-one in the second quarter of
2004, I am pleased that we have continued the trend of increasing our dividend
each quarter as well as maintaining a generous dividend payout ratio. For these
reasons, I continue to view First National Lincoln Corporation as an extremely
attractive investment alternative."

First National Lincoln Corporation, headquartered in Damariscotta, Maine, is
the holding company for The First National Bank of Damariscotta and Pemaquid
Advisors. The First is an independent community bank serving Mid-Coast Maine
with seven offices in Lincoln and Knox Counties that provide consumer and
commercial banking products and services. Pemaquid Advisors provides investment
advisory and trust services from offices in Damariscotta, Boothbay Harbor and
Brunswick, Maine.

Forward-looking and cautionary statements: except for the historical
information and discussions contained herein, statements contained in this
release may constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements involve a
number of risks, uncertainties and other factors that could cause actual
results to differ materially, as discussed in the company's filings with the
Securities and Exchange Commission.

For additional information contact F. Stephen Ward, Treasurer & Chief Financial
Officer, at 207.563.3272.