| Maine(State or other jurisdiction of incorporation or organization)       | 01-0425066(I.R.S. Employer Identification No.) |
|---------------------------------------------------------------------------|------------------------------------------------|
| 500 Canal Street, Lewiston, Maine(Address of principal executive offices) | 04240(Zip Code)                                |
| Registrant's telephone number, including area code:                       | (207) 786-3245                                 |

| Title of each class:          | Name of each exchange on which registered: |
|-------------------------------|--------------------------------------------|
| Common Stock, $1.00 par value | NASDAQ                                     |

| Document                                                         | Form 10-K Reference Location |
|------------------------------------------------------------------|------------------------------|
| Proxy Statement for the 2010 Annual Meeting of Shareholders | III                          |

| Part I.  |           |                                                                                                              |
|----------|----------------|-------------------------------------------------------------------------------------------------------------------|
|     | Item 1.        | Business                                                                                                          |
|     |           |                                                                                                              |
|     | Item 1.a. | Risk Factors                                                                                                      |
|     |           |                                                                                                              |
|     | Item 2.        | Properties                                                                                                        |
|     |           |                                                                                                              |
|     | Item 3.        | Legal Proceedings                                                                                                 |
|     |           |                                                                                                              |
|     | Item 4.        | (Removed and Reserved )                                                                                           |
|     |           |                                                                                                              |
| Part II  |           |                                                                                                              |
|     | Item 5.   | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities |
|     |           |                                                                                                              |
|     | Item 6.   | Selected Financial Data                                                                                           |
|     |           |                                                                                                              |
|     | Item 7.        | Management's Discussion and Analysis of Financial Condition and Results of Operations                             |
|     |           |                                                                                                              |
|     | Item 8.        | Financial Statements and Supplementary Data                                                                       |
|     |           |                                                                                                              |
|     | Item 8.a.      | Financial Statements Required by Regulation S-X                                                                   |
|     |           |                                                                                                              |
|     |           | Report of Independent Registered Public Accounting Firm                                                           |
|     |           |                                                                                                              |
|     |           | Consolidated Balance SheetsJune 30, 2010 and 2009                                                                 |
|     |           |                                                                                                              |
|     |           | Consolidated Statements of IncomeYears Ended June 30, 2010, 2009 and 2008                                         |
|     |           |                                                                                                              |
|     |           | Consolidated Statements of Changes in Stockholders' EquityYears Ended June 30, 2010, 2009 and 2008                |
|     |           |                                                                                                              |
|     |           | Consolidated Statements of Cash FlowsYears Ended June 30, 2010, 2009 and 2008                                     |
|     |           |                                                                                                              |
|     |           | Notes to Consolidated Financial Statements                                                                        |
|     |           |                                                                                                              |
|     | Item 8.b.      | Statistical Disclosures Required by Industry Guide 3                                                              |
|     |           |                                                                                                              |
|     | Item 9.        | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                              |
|     |           |                                                                                                              |
|     | Item 9-A(T)    | Controls and Procedures                                                                                           |
|     |           |                                                                                                              |
|     | Item 9.B       | Other Information                                                                                                 |
|     |           |                                                                                                              |
| Part III |           |                                                                                                              |
|     | Item 10.       | Directors, Executive Officers and Corporate Governance                                                            |
|     |           |                                                                                                              |
|     | Item 11.       | Executive Compensation                                                                                            |
|     |           |                                                                                                              |
|     | Item 12.       | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder matters                    |
|     |           |                                                                                                              |
|     | Item 13.       | Certain Relationships and Related Transactions and Director Independence                                          |
|     |           |                                                                                                              |
|     | Item 14.       | Principal Accounting Fees and Services                                                                            |
|     |           |                                                                                                              |
| Part IV  |           |                                                                                                              |
|     | Item 15.       | Exhibits, Financial Statement Schedules                                                                           |

Item 1.

| ·   | employees with local decision-making authority; |
|--------------------|-------------------------------------------------|

| ·   | employees who are familiar with the customers' needs, their business environment and competitive demands; and |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | employees who are able to develop and customize personalized financial solutions that are tailored to the customer's needs. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | allowing bank holding companies that qualify as "a financial holding company" to engage in a substantially broader range of activities that are financial in nature; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | allowing insurers and other financial service companies to acquire banks; |
|--------------------|---------------------------------------------------------------------------|

| ·   | removing various restrictions that apply to bank holding company ownership of securities firms and mutual fund advisory companies; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | establishing the overall regulatory structure applicable to bank holding companies that also engage in insurance and securities operations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|                           | Total Risk Based Capital Ratio | Tier 1 Risk-Based Capital Ratio | Leverage Ratio                                                              | Other                                                                                                               |
|--------------------------------|--------------------------------|---------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| Well Capitalized:              | 10% or greater                 | 6% or greater                   | 5% or greater                                                               | Not subject to any order or written directive to meet and maintain a specific capital level for any capital measure |
| Adequately Capitalized         | 8% or greater                  | 4% or greater                   | 4% or greater (3% in the case of a bank with a composite CAMEL rating of 1) |                                                                                                                |
| Undercapitalized               | less than 8%                   | less than 4%                    | less than 4% (3% in the case of a bank with a composite CAMEL rating of 1)  |                                                                                                                |
| Significantly Undercapitalized | less than 6%                   | less than 3%                    | less than 3%                                                                |                                                                                                                |
| Critically Undercapitalized    |                           |                            |                                                                        | Ratio of tangible equity to total assets is less than or equal to 2%                                                |

| ·   | the creation of an independent accounting oversight board to oversee the audit of public companies and auditors who perform such audits; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | auditor independence provisions which restrict non-audit services that independent accountants may provide to their audit clients; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | additional responsibilities for financial statements for the chief executive officer and chief financial officer of the reporting entity; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a prohibition on personal loans to directors and officers, except certain loans made by financial institutions on non-preferential terms and in compliance with other bank regulatory requirements; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | additional corporate governance and responsibility measures which (a) require the chief executive officer and chief financial officer to certify financial statements and to forfeit salary and bonuses in certain situations, and (b) protect whistleblowers and informants; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | enhance independence and expertise requirements of members of audit committees; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | expansion of the audit committee's authority and responsibility by requiring that the audit committee (a) have direct control of the outside auditor, (b) be able to hire and fire the auditor, and (c) approve all non-audit services; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | mandatory disclosure by analysts of potential conflicts of interest; and |
|--------------------|--------------------------------------------------------------------------|

| ·   | enhanced penalties for fraud and other violations. |
|--------------------|----------------------------------------------------|

| a) | general economic conditions, either nationally or in the markets where the Company or its subsidiaries offer their financial products or services, may be less favorable than expected, resulting in, among other things, a deterioration of credit quality or in a decreased demand for  our products or services;                          |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b) | A significant increase in competitive pressures in the banking and financial services industry and, more particularly, a significant increase in competition in the Company's market areas as described under "Business -- Market for Services and Competition";                                                                                       |
| c) | changes in the interest rate environment which could reduce our margins and increase defaults in our loan portfolio, including those described under "Management's Discussion and Analysis of Results of Operations and Financial Condition --Risk Management", and also may have a negative impact on the Company's interest rate exchange agreement; |
| d) | the adequacy of the allowance for loan losses and the Bank's asset quality, including those matters described in "Management's Discussion and Analysis of Results of Operations and Financial Condition -- Results of Operations".                                                                                                                     |
| e) | changes in political conditions or changes occurring in the legislative or regulatory environment that adversely affect the businesses in which we are engaged, including the impact of any changes in laws and regulations relating to banking, securities, taxes, and insurance;                                                                     |
| f) | rapid technology changes;                                                                                                                                                                                                                                                                                                                              |
| g) | our ability to increase market share and to control expenses, and changes in consumer spending, borrowing, and saving habits;                                                                                                                                                                                                                          |
| h) | changes in trade, tax, monetary, or fiscal policies, including the interest rate policies of the FRB;                                                                                                                                                                                                                                                  |
| i) | money market and monetary fluctuations, and changes in inflation or in the securities markets;                                                                                                                                                                                                                                                         |
| j) | future acquisitions and the integration of acquired businesses and assets;                                                                                                                                                                                                                                                                             |
| k) | changes in the Company's organizational structure and in its compensation and benefit plans, including those necessitated by pressures in the labor market for attracting and retaining qualified personnel;                                                                                                                                           |
| l) | the effect of changes in accounting policies and practices, as may be adopted by regulatory agencies as well as the Financial Accounting Standards Board;                                                                                                                                                                                              |
| m) | unanticipated litigation, regulatory, or other judicial proceedings;                                                                                                                                                                                                                                                                                   |
| n) | the success of the Company at managing the risks involved in the foregoing;                                                                                                                                                                                                                                                                            |
| o) | other one-time events, risks and uncertainties detailed from time to time in the filings of the Company with the Securities and Exchange Commission;                                                                                                                                                                                                   |
| p) | continue diversification of income streams;                                                                                                                                                                                                                                                                                                            |
| q) | changes in the sources of liquidity;                                                                                                                                                                                                                                                                                                                   |
| r) | our inability to obtain approvals for the pending merger with FHB Formation, LLC on the proposed merger terms; and                                                                                                                                                                                                                                     |
| s) | the business strategy proposed in the merger of FHB Formation, LLC and the Company will not be successful, or such implementation may be more difficult, time-consuming or costly than expected.                                                                                                                                                       |

ITEM 1.a.

| ·   | Northeast’s borrowers may be unable to make timely repayments of their loans, or the value of real estate collateral securing the payment of such loans may decrease, which could result in increased delinquencies, foreclosures and customer bankruptcies, any of which would increase levels of non-performing loans, resulting in significant credit losses, would increase expenses and could have a material adverse effect on Northeast’s operating results.  |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Increased regulation of Northeast’s industry and compliance with such regulation may increase Northeast’s costs, limit its ability to pursue business opportunities and increase compliance challenges.                                                                                                                                                                                                                                                              |
| ·   | Increased competition among financial services companies based on the recent consolidation of competing financial institutions and the conversion of investment banks into bank holding companies may adversely affect Northeast’s ability to market its products and services.                                                                                                                                                                                            |
| ·   | Northeast may be required to pay significantly higher FDIC deposit premiums and assessments because market developments have significantly depleted the insurance fund of the FDIC and reduced the ratio of reserves to insured deposits.                                                                                                                                                                                                                                        |
| ·   | Consumer confidence in the financial industry has weakened and individual wealth has deteriorated, which could lead to declines in deposits and impact liquidity.                                                                                                                                                                                                                                                                                                                |
| ·   | Continued asset valuation declines could adversely impact Northeast’s credit losses and result in goodwill and other asset impairments.                                                                                                                                                                                                                                                                                                                                    |

Item 2.

|                 Branch Locations                           | Ownership  |
|----------------------------------------------------------------------------------------------------------------------------------|------------|
| 232 Center Street, Auburn                                                                                                        | Lease (1)  |
| 235 Western Avenue, Augusta                                                                                                      | Fee Simple |
| 11 Main Street, Bethel                                                                                                           | Fee Simple |
| 168 Maine Street, Brunswick                                                                                                      | Fee Simple |
| 2 Depot Street, Buckfield                                                                                                        | Fee Simple |
| 46 Main Street, Harrison                                                                                                         | Fee Simple |
| 500 Canal Street, Lewiston                                                                                                       | Lease (2)  |
| 1399 Maine Street, Poland                                                                                                        | Lease (3)  |
| 77 Middle Street, Portland                                                                                                       | Lease (4)  |
| 235 Main Street, South Paris                                                                                                     | Fee Simple |
|                                                                                                                             |
|                Insurance Agency Locations                  |       |
| 59 Main Street, Anson, Maine                                                                                                     | Fee Simple |
| 232 Center Street, Auburn, Maine*                                                                                                | Lease (1)  |
| 235 Western Avenue, Augusta, Maine*                                                                                              | Fee Simple |
| 4 Sullivan Square, Berwick, Maine                                                                                                | Fee Simple |
| 11 Main Street, Bethel, Maine*                                                                                                   | Fee Simple |
| 346 Main Street, Jackman, Maine                                                                                                  | Lease (5)  |
| 28 Main Street, Livermore Falls, Maine                                                                                           | Lease (6)  |
| 423 U. S. Route 1, Scarborough, Maine                                                                                            | Lease (7)  |
| 235 Main Street, South Paris, Maine*                                                                                             | Fee Simple |
| 472 Main Street, Thomaston, Maine                                                                                                | Lease (8)  |
| 10 Snell Hill Road, Turner, Maine                                                                                                | Fee Simple |
|                                                                                                                             |
| *Each of these insurance agency locations are situated in an existing bank branch location at the address indicated.             |
|                                                                                                                             |
| (1) Lease term is ten years and expires May 1, 2016.                                                                             |
| (2) Lease term is 15 years and expires July 15, 2020.                                                                            |
| (3) Lease term is 15 years but with notice can be terminated in 10 years, and expires January 1, 2025.                           |
| (4) Lease term is five years and expires September 30, 2012.                                                                     |
| (5) Lease term is one year and automatically renews in September each year.                                                      |
| (6) Lease is a tenant at will.                                                                                                   |
| (7) Lease term is three years and expires July 31, 2010.  The lease became a tenant at will after the expiration date. |
| (8) Lease is a tenant at will.                                                                                                   |

Item 3.

Item 4.

Item 5.

| 2009 – 2010 | High                         | Low              | Div Pd |
|-------------------|------------------------------|------------------|--------|
| Jul 1- Sep 30     |  10.00                  |   7.66 | .090   |
| Oct 1 - Dec 31    |     9.71 |   8.42 | .090   |
| Jan 1 - Mar 31    |   15.28            |   8.50 | .090   |
| Apr 1 - Jun 30    |  15.14                  | 12.00            | .090   |

| 2008 – 2009 | High             | Low              | Div Pd |
|-------------------|------------------|------------------|--------|
| Jul 1- Sep 30     | 11.97            |   9.44 | .090   |
| Oct 1 - Dec 31    | 11.03            |   6.54 | .090   |
| Jan 1 - Mar 31    |   8.80 |   6.61 | .090   |
| Apr 1 - Jun 30    | 10.86            |  7.35       | .090   |

| Unregistered Sales of Equity Securities and Use of Proceeds The following table provides the information on any purchase made by or on behalf of the Company of shares of Northeast Bancorp common stock during the indicated periods.  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    Period (1)                                                                                                                                                                                                                      |  Total NumberOf SharesPurchased (2) |   Average PricePaid per Share | Total Number of Shares Purchasedas Part of PubliclyAnnounced Program | Maximum Number ofShares that May Yet bePurchased UnderThe Program (3) |
| Apr. 1 – Apr. 30                                                                                                                                                                                                                            | - | - | - | 58,400 |
| May 1 – May 31                                                                                                                                                                                                                              | - | - | - | 58,400 |
| Jun. 1 – Jun. 30                                                                                                                                                                                                                            | - | - | - | 58,400 |
| (1)                                                                                                                                                                                                                                | Based on trade date, not settlement date. |
| (2)                                                                                                                                                                                                                                | Represents shares purchased in open-market transactions pursuant to the Company's 2006 Stock Repurchase Plan. |
| (3)                                                                                                                                                                                                                                | On December 15, 2006, the Company announced that its Board of Directors of the Company approved the 2006 Stock Repurchase Plan pursuant to which the Company is authorized to repurchase in open-market transactions up to 200,000 shares of its common stock from time to time until the plan expires on December 31, 2010, unless extended. |

|                                                      |  Equity Compensation Plans                                                              |                                                                         |
|-----------------------------------------------------------|----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
|                                                      | (a)                                                                                          | (b)                                                                          | (c) |
|       Plan category         |     Number of securities to beissued upon exercise ofoutstanding options |     Weighted-averageexercise price ofoutstanding options | Number of securitiesremaining available forfuture issuance underequity compensation plan(excluding securitiesreferenced in the firstcolumn (a)) |
| Equity compensation Plan approved by Security holders (1) |  18,000                                                                                 |  $ 11.08                                                           |  199,000 |
|                                                      |                                                                                         |                                                                         |   |
| Equity compensation Plan not approved by Security holders |        0                                                  |  $  0.00                                                      |        0 |

|   | (1) | Includes stock options granted or available under stockholder approved Stock Option Plans in 2001, 1999, 1992 and 1989 (the "Stock Option Plans"). Our Stock Option Plans provide for a proportionate adjustment to the number of shares reserved for issuance in the event of any stock dividend, stock split, combination, recapitalization, or similar event. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 6. Selected Financial Data                                                                                        |   |                                             |    |   |   |   |    |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                                                                                                        |   | At or for the Year                               |    |
|                                                                                                                        |   | Ended June 30,                                   |    |
|                                                                                                                        |   | 2010                                             |    |   | 2009   |   |    | 2008   |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                        |   | (Dollars in thousands except for Per Share Data) |    |
| Selected operations data:                                                                                                   |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Interest income                                                                                                             |   | $                                                | 31,262  |   |   | $      | 33,766  |   |   | $      | 35,398 |   |   | $ | 35,682 |   |   | $ | 35,456 |   |
| Interest expense                                                                                                            |   |                                             | 13,513  |   |   |   | 16,980  |   |   |   | 21,051 |   |   |   | 20,097 |   |   |   | 16,761 |   |
|                                                                                                                        |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                         |   |                                             | 17,749  |   |   |   | 16,786  |   |   |   | 14,347 |   |   |   | 15,585 |   |   |   | 18,695 |   |
|                                                                                                                        |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                                                                   |   |                                             | 1,864   |   |   |   | 2,100   |   |   |   | 836 |   |   |   | 989 |   |   |   | 1,226 |   |
| Other operating income (1)                                                                                                  |   |                                             | 12,164  |   |   |   | 10,505  |   |   |   | 10,510 |   |   |   | 7,903 |   |   |   | 6,578 |   |
| Net securities gains                                                                                                        |   |                                             | (18     | )      |   |   | 268     |   |   |   | 293 |   |   |   | 42 |   |   |   | 17 |   |
| Other operating expenses (2)                                                                                                |   |                                             | 25,417  |   |   |   | 24,461  |   |   |   | 21,855 |   |   |   | 20,075 |   |   |   | 18,209 |   |
|                                                                                                                        |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                                                                  |   |                                             | 2,614   |   |   |   | 998     |   |   |   | 2,459 |   |   |   | 2,466 |   |   |   | 5,855 |   |
| Income tax expense                                                                                                          |   |                                             | 895     |   |   |   | 39      |   |   |   | 528 |   |   |   | 579 |   |   |   | 1,851 |   |
|                                                                                                                        |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                                  |   | $                                                | 1,719   |   |   | $      | 959     |   |   | $      | 1,931 |   |   | $ | 1,887 |   |   | $ | 4,004 |   |
|                                                                                                                        |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income available to common stockholder                                                                                  |   | $                                                | 1,476   |   |   | $      | 825     |   |   | $      | 1,931 |   |   | $ | 1,887 |   |   | $ | 4,004 |   |
|                                                                                                                        |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated per share data:                                                                                                |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income:                                                                                                                 |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                       |   | $                                                | 0.64    |   |   | $      | 0.36    |   |   | $      | 0.82 |   |   | $ | 0.77 |   |   | $ | 1.61 |   |
| Diluted                                                                                                                     |   | $                                                | 0.63    |   |   | $      | 0.36    |   |   | $      | 0.82 |   |   | $ | 0.76 |   |   | $ | 1.59 |   |
| Cash dividends                                                                                                              |   | $                                                | 0.36    |   |   | $      | 0.36    |   |   | $      | 0.36 |   |   | $ | 0.36 |   |   | $ | 0.36 |   |
| Selected balance sheet data:                                                                                                |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                |   | $                                                | 622,194 |   |   | $      | 598,148 |   |   | $      | 598,274 |   |   | $ | 556,801 |   |   | $ | 562,918 |   |
| Loans receivable                                                                                                            |   |                                             | 382,309 |   |   |   | 393,651 |   |   |   | 409,194 |   |   |   | 425,571 |   |   |   | 435,663 |   |
| Deposits                                                                                                                    |   |                                             | 384,197 |   |   |   | 385,386 |   |   |   | 363,374 |   |   |   | 364,554 |   |   |   | 395,293 |   |
| Borrowings                                                                                                                  |   |                                             | 183,025 |   |   |   | 162,389 |   |   |   | 186,830 |   |   |   | 147,564 |   |   |   | 124,860 |   |
| Total stockholders' equity                                                                                                  |   |                                             | 50,906  |   |   |   | 47,317  |   |   |   | 40,273 |   |   |   | 40,850 |   |   |   | 39,096 |   |
| Other ratios:                                                                                                               |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                                                                                                    |   |                                             | 0.28    | %      |   |   | 0.16    | %      |   |   | 0.33 | % |   |   | 0.34 | % |   |   | 0.70 | % |
| Return on average equity                                                                                                    |   |                                             | 3.47    | %      |   |   | 2.14    | %      |   |   | 4.63 | % |   |   | 4.59 | % |   |   | 9.95 | % |
| Average equity to average total assets                                                                                      |   |                                             | 8.10    | %      |   |   | 7.35    | %      |   |   | 7.23 | % |   |   | 7.37 | % |   |   | 7.07 | % |
| Common dividend payout ratio                                                                                                |   |                                             | 56.64   | %      |   |   | 101.14  | %      |   |   | 44.10 | % |   |   | 46.77 | % |   |   | 22.40 | % |
|                                                                                                                        |   |                                             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Includes primarily fees for deposit, investment brokerage and trust services to customers, insurance commission revenue |   |
| and gains on the sale of loans.                                                                                             |   |
| (2) Includes salaries, employee benefits, occupancy, equipment and other expenses.                                          |   |

It

em 7.

|  ·  |  During fiscal 2010, we accomplished the following strategic objectives: |
|--------------------|-------------------------------------------------------------------------------|
|               |  o                                                                  | Increased noninterest income by 13%; |
|               |  o                                                             | Expanded our mortgage loan origination sales and processing division; |
|               |  o                                                             | Increased customer demand deposits, NOW, money market and savings accounts; |
|               | o                                                                   | Opened a new branch in Poland, Maine, consolidating our Mechanic Falls branch into Poland and consolidating our branch at 882 Lisbon Street, Lewiston into the Gateway branch; |
|               |   o                                                            |  Sold the books of business from our insurance agency offices in Mexico and Rangeley, Maine; and |
|               |   o                                                            |  Entered into a merger agreement with FHB Formation, LLC which will add approximately $16.2 million in new capital. |

| ·   | Net income increased to $1,718,672 for fiscal 2010 compared to $958,989 for fiscal 2009, an increase of $759,683, or 79%. Increased net interest income and noninterest income, combined with a decrease in the provision for loan losses, more than offset increases in noninterest expense from goodwill impairment, merger related professional fees, and computer services. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Capital ratios for the Company and the Bank increased in fiscal 2010 compared to fiscal 2009, exceeding the regulatory definition for a “well capitalized” financial institution. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The allowance for loan losses was $5,806,000 at June 30, 2010, an increase of $42,000 compared to June 30, 2009. The allowance increased as a percentage of total loans to 1.52% at June 30, 2010 compared to 1.46% at June 30, 2009.  Total loans decreased $11.3 million during fiscal 2010 primarily from runoff of indirect consumer auto and RV loans. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net interest margin increased to 315 basis points in fiscal 2010 compared to 299 basis points in fiscal 2009, resulting in an increase in net interest income year over year.  This increase in net interest margin was primarily due to lowering our overall cost of funds, in part from our maturing certificates of deposit resetting to lower interest rates and reducing the interest rates paid on interest-bearing, non-maturing deposits. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Rate/Volume Analysis for the Year EndedJune 30, 2010 versus June 30, 2009 |   |
|---------------------------------------------------------------------------|--------|
|                                                                      |   |   |   |   |   |   |
|                                                                      |   | Difference Due to |   |   |   |   |
|                                                                      |   | Volume |   |   | Rate |   |   | Total |   |
| Investments                                                               |   | $ | 576,823 |   |   |   | (937,557 | )  |   |   | (360,734 | )   |
| Loans, net                                                                |   |   | (826,702 | )  |   |   | (1,258,445 | )  |   |   | (2,085,147 | )  |
| FHLB deposits & other                                                 |   |   | 26,486 |   |   |   | (76,292 | )  |   |   | (49,806 | )  |
|   Total interest-earning assets                                 |   |   | (223,393 | ) |   |   | (2,272,294 | )  |   |   | (2,495,687 | )  |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                  |   |   | 306,520 |   |   |   | (2,559,922 | )  |   |   | (2,253,402 | )  |
| Short-term borrowings                                                     |   |   | 115,832 |   |   |   | (179,357 | )  |   |   | (63,525 | )  |
| Borrowings                                                                |   |   | (844,350 | )  |   |   | (306,328 | )  |   |   | (1,150,678 | )  |
|   Total interest-bearing liabilities                            |   |   | (421,998 | ) |   |   | (3,045,607 | )  |   |   | (3,467,605 | )  |
|    Net interest income                                     |   | $ | 198,605 |   |   |   | 773,313 |   |   |   | 971,918 |   |

| Rate/Volume Analysis for the Year EndedJune 30, 2009 versus June 30, 2008 |   |
|---------------------------------------------------------------------------|--------|
|                                                                      |   |   |   |   |   |   |
|                                                                      |   | Difference Due to |   |   |   |   |
|                                                                      |   | Volume |   |   | Rate |   |   | Total |   |
| Investments                                                               |   | $ | 1,844,748 |   |   | $ | 170,156 |   |   | $ | 2,014,904 |   |
| Loans, net                                                                |   |   | (639,281 | )  |   |   | (2,744,528 | )  |   |   | (3,383,809 | )  |
| FHLB deposits & other                                                 |   |   | 63,597 |   |   |   | (323,424 | )  |   |   | (259,827 | )  |
|   Total interest-earning assets                                 |   |   | 1,269,064 |   |   |   | (2,897,796 | )  |   |   | (1,628,732 | )  |
|                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                  |   |   | 233,359 |   |   |   | (3,955,032 | )  |   |   | (3,721,673 | )  |
| Short-term borrowings                                                     |   |   | 67,327 |   |   |   | (593,674 | )  |   |   | (526,347 | )  |
| Borrowings                                                                |   |   | 882,612 |   |   |   | (705,158 | )  |   |   | 177,454 |   |
|   Total interest-bearing liabilities                            |   |   | 1,183,298 |   |   |   | (5,253,864 | )  |   |   | (4,070,566 | )  |
|    Net interest income                                     |   | $ | 85,766 |   |   | $ | 2,356,068 |   |   | $ | 2,441,834 |   |

|                                                                                                                                      |   | Consumer Loans |       |   |       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|------------|--------|
|                                                                                                                                      |   | June 30, 2010  |       |   | % of Total |   |   | June 30, 2009 |   |   | % of Total |   |
| Indirect Auto                                                                                                                             |   | $              | 14,168,491 |   |       |   | 21 | %  |   | $ | 25,862,715 |   |   |   | 27 | %  |
| Indirect RV                                                                                                                               |   |           | 35,594,893 |   |       |   | 52 | %  |   |   | 46,002,568 |   |   |   | 48 | %  |
| Indirect Mobile Home                                                                                                                      |   |           | 12,996,776 |   |       |   | 19 | %  |   |   | 18,874,678 |   |   |   | 19 | %  |
|                     Subtotal Indirect |   |           | 62,760,160 |   |       |   | 92 | % |   |   | 90,739,961 |   |   |   | 94 | % |
| Other                                                                                                                                     |   |           | 5,728,638  |   |       |   | 8 | %  |   |   | 5,725,006 |   |   |   | 6 | %  |
| Total                                                                                                                                     |   | $              | 68,488,798 |   |       |   | 100 | % |   | $ | 96,464,967 |   |   |   | 100 | % |

| Brokered time deposits                  |   | $ 149,999,000                       |   | Subject to policy limitation of 25% of total assets                                          |
|-----------------------------------------|--------|------------------------------------------|--------|----------------------------------------------------------------------------------------------|
| Federal Home Loan Bank of Boston        |   |    29,019,000             |   | Unused advance capacity subject to eligible and qualified collateral                         |
| Fed Discount Window Borrower-in-Custody |   |      19,095,000 |   | Unused credit line subject to the pledge of indirect auto loans and eligible municipal bonds |
| Total Unused Borrowing Capacity         |   | $ 198,113,000                       |   |                                                                                         |

|  2010  |   | 2009        |   | 2008        |   | 2007        |
|-------------|--------|-------------|--------|-------------|--------|-------------|
|  3.67% |   |  4.27% |   | 3.64%  |   |  2.90% |

|                   Description |   | June 30, 2010 |      |   | June 30, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|---------------|--------|
| Residential real estate                                                                                            |   | $             | 3,002,000 |   |          | $      | 1,620,000 |   |
| Commercial real estate                                                                                             |   |          | 3,701,000 |   |          |   | 4,373,000 |   |
| Commercial loans                                                                                                   |   |          | 1,744,000 |   |          |   | 3,327,000 |   |
| Consumer and other                                                                                                 |   |          | 394,000   |   |          |   | 574,000 |   |
|   Total non-performing                                                                                   |   | $             | 8,841,000 |   |          | $      | 9,894,000 |   |

|          |   | Up 200 Basis Points |   | Down 100 Basis Points |
|---------------|--------|---------------------|--------|-----------------------|
| June 30, 2010 |   | 2.23%               |   | 1.23%                 |
|          |   |                |   |                  |
|          |   | Up 200 Basis Points |   | Down 100 Basis Points |
| June 30, 2009 |   | -0.34%              |   | 1.52%                 |

| Affiliated Trusts                   |   | Trust Preferred Securities |       |   | Common Securities |   |    | Junior Subordinated Debentures |   |   | Interest Rate |   | Maturity Date |
|-------------------------------------|--------|----------------------------|------------|--------|-------------------|--------|---------|--------------------------------|--------|--------|---------------|--------|---------------|
| NBN Capital Trust II                |   | $                          | 3,000,000  |   |              | $      | 93,000  |                           |   | $      | 3,093,000     |   |          |   | 3.33 | % | March 30, 2034 |
| NBN Capital Trust III               |   |                       | 3,000,000  |   |              |   | 93,000  |                           |   |   | 3,093,000     |   |          |   | 3.33 | % | March 30, 2034 |
| NBN Capital Trust IV                |   |                       | 10,000,000 |   |              |   | 310,000 |                           |   |   | 10,310,000    |   |          |   | 2.37 | % | February 23, 2035 |
|      Total |   | $                          | 16,000,000 |   |              | $      | 496,000 |                           |   | $      | 16,496,000    |   |          |   | 2.73 | % |   |

|                                          |   |   |        |   | Payments Due by Period |                                         |
|-----------------------------------------------|--------|--------|-------------|--------|------------------------|----------------------------------------------|
| Contractual Obligations                       |   | Total  |        |   | Less Than1 Year        |                                         |   | 1-3 Years |   |   | 4-5Years |   |   | After 5Years |   |
| FHLB advances                                 |   | $      | 50,500,000  |   |                   |                                         | 3,000,000 |   |   |   | 20,000,000 |   |   |   | 12,500,000 |   |   |   | 15,000,000 |   |
| Structured Repurchase Agreements              |   |   | 65,000,000  |   |                   |                                         | - |   |   |   | 40,000,000 |   |   |   | 15,000,000 |   |   |   | 10,000,000 |   |
| Junior subordinated debentures                |   |   | 16,496,000  |   |                   |                                         | 16,496,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Capital lease obligation                      |   |   | 2,230,630   |   |                   |                                         | 155,811 |   |   |   | 335,754 |   |   |   | 371,428 |   |   |   | 1,367,637 |   |
| Other borrowings                              |   |   | 2,629,660   |   |                   |                                         | 496,028 |   |   |   | 1,090,878 |   |   |   | 1,042,754 |   |   |   | - |   |
| Total long-term debt                          |   |   | 136,856,290 |   |                   |                                         | 20,147,839 |   |   |   | 61,426,632 |   |   |   | 28,914,182 |   |   |   | 26,367,637 |   |
|                                          |   |   |        |   |                   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating lease obligations                   |   |   | 1,659,449   |   |                   |                                         | 449,356 |   |   |   | 627,616 |   |   |   | 284,231 |   |   |   | 298,246 |   |
| Total contractual obligations                 |   | $      | 138,515,739 |   |                   |                                         | 20,597,195 |   |   |   |  62,054,248 |   |   |   | 29,198,413 |   |   |   | 26,665,883 |   |
|                                          |   |   |        |   |                   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |   |        |   |                   | Amount of Commitment Expiration - Per Period |   |
| Commitments with off-balance sheet risk       |   | Total  |        |   | Less Than1 Year        |                                         |   | 1-3Years |   |   | 4-5Years |   |   | After 5Years |   |
| Commitments to extend credit (1)(3)           |   | $      | 15,212,000  |   |                   |                                         | 15,212,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commitments related to loans held for sale(2) |   |   | 5,869,000   |   |                   |                                         | 5,869,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Unused lines of credit (3)(4)                 |   |   | 49,225,000  |   |                   |                                         | 24,572,000 |   |   |   | 2,826,000 |   |   |   | 4,160,000 |   |   |   | 17,667,000 |   |
| Standby letters of credit (5)                 |   |   | 906,000     |   |                   |                                         | 906,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                          |   | $      | 71,212,000  |   |                   |                                         | 46,559,000 |   |   |   | 2,826,000 |   |   |   | 4,160,000 |   |   |   | 17,667,000 |   |

| (1) | Represents commitments outstanding for residential real estate, commercial real estate, and commercial loans.                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Commitments of residential real estate loans that will be held for sale.                                                                          |
| (3) | Loan commitments and unused lines of credit for commercial and construction loans that expire or are subject to renewal in twelve months or less. |
| (4) | Represents unused lines of credit from commercial, construction, and home equity loans.                                                           |
| (5) | Standby letters of credit generally expiring in twelve months.                                                                                    |

| Item 7 a.                                                                  | Quantitative and Qualitative Disclosure about Market Risk                                                                                                                                                                                                  |
|----------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                       | See Item 7 of our Form 10-K, "Management's Discussion and Analysis of Financial Condition and Results of Operations  - Risk Management" and accompanying table set forth therein for quantitative and qualitative disclosures about market risk. |
|                                                                       |                                                                                                                                                                                                                                                       |
| Item 8.                                                                    | Financial Statements and Supplementary Data                                                                                                                                                                                                                |
|             a. | Financial Statements Required by Regulation S-X                                                                                                                                                                                                            |

|                        | /S/ Shatswell, MacLeod & Company, P.C. |
|-----------------------------|--------------------------------------------|
|                        | SHATSWELL, MacLEOD & COMPANY, P.C.     |
| West Peabody, Massachusetts |                                       |
| September 17, 2010          |                                       |

| ASSETS                                                                                                |   |
|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   | 2010 |   |   | 2009 |   |
| Cash and due from banks                                                                               |   | $ | 7,019,498 |   |   |   | 9,356,233 |   |
| Interest-bearing deposits                                                                             |   |   | 13,416,060 |   |   |   | 3,666,409 |   |
| Total cash and cash equivalents                                                                       |   |   | 20,435,558 |   |   |   | 13,022,642 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Available-for-sale securities, at fair value                                                          |   |   | 164,187,702 |   |   |   | 148,410,140 |   |
| Loans held-for-sale                                                                                   |   |   | 14,254,093 |   |   |   | 2,436,595 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Loans receivable                                                                                      |   |   | 382,308,517 |   |   |   | 393,650,762 |   |
| Less allowance for loan losses                                                                        |   |   | 5,806,000 |   |   |   | 5,764,000 |   |
| Net loans                                                                                             |   |   | 376,502,517 |   |   |   | 387,886,762 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Premises and equipment – net                                                                    |   |   | 7,997,054 |   |   |   | 8,744,170 |   |
| Acquired assets – net                                                                           |   |   | 1,292,161 |   |   |   | 672,669 |   |
| Accrued interest receivable                                                                           |   |   | 2,080,520 |   |   |   | 2,200,142 |   |
| Federal Home Loan Bank stock, at cost                                                                 |   |   | 4,889,400 |   |   |   | 4,889,400 |   |
| Federal Reserve Bank stock, at cost                                                                   |   |   | 596,750 |   |   |   | 596,750 |   |
| Goodwill                                                                                              |   |   | 4,082,604 |   |   |   | 4,490,500 |   |
| Intangible assets, net of accumulated amortization of $ 2,322,847 in 2010 and $2,390,087 in 2009 |   |   | 7,288,044 |   |   |   | 8,311,477 |   |
| Bank owned life insurance (BOLI)                                                                      |   |   | 13,285,908 |   |   |   | 12,783,525 |   |
| Other assets                                                                                          |   |   | 5,301,889 |   |   |   | 3,703,358 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Total assets                                                                                          |   | $ | 622,194,200 |   |   |   | 598,148,130 |   |

|   LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                               |   | 2010 |   |   | 2009 |   |
| Liabilities:                                                                                                                                                                       |   |   |   |   |   |   |
| Deposits                                                                                                                                                                           |   |   |   |   |   |   |
| Demand                                                                                                                                                                             |   | $ | 35,266,386 |   |   |   | 32,228,276 |   |
| NOW                                                                                                                                                                                |   |   | 50,833,904 |   |   |   | 44,465,265 |   |
| Money market                                                                                                                                                                       |   |   | 55,556,017 |   |   |   | 39,049,403 |   |
| Regular savings                                                                                                                                                                    |   |   | 38,189,867 |   |   |   | 19,079,009 |   |
| Brokered time deposits                                                                                                                                                             |   |   | 4,883,250 |   |   |   | 10,906,378 |   |
| Certificates of deposit under $100,000                                                                                                                                             |   |   | 106,863,600 |   |   |   | 144,711,063 |   |
| Certificates of deposit $100,000 or more                                                                                                                                           |   |   | 92,604,199 |   |   |   | 94,946,592 |   |
| Total deposits                                                                                                                                                                     |   |   | 384,197,223 |   |   |   | 385,385,986 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank advances                                                                                                                                                    |   |   | 50,500,000 |   |   |   | 40,815,000 |   |
| Structured repurchase agreements                                                                                                                                                   |   |   | 65,000,000 |   |   |   | 65,000,000 |   |
| Short-term borrowings                                                                                                                                                              |   |   | 46,167,858 |   |   |   | 34,435,309 |   |
| Junior subordinated debentures issued to affiliated trusts                                                                                                                         |   |   | 16,496,000 |   |   |   | 16,496,000 |   |
| Capital lease obligation                                                                                                                                                           |   |   | 2,230,630 |   |   |   | 2,378,827 |   |
| Other borrowings                                                                                                                                                                   |   |   | 2,629,660 |   |   |   | 3,263,817 |   |
| Other liabilities                                                                                                                                                                  |   |   | 4,066,770 |   |   |   | 3,056,311 |   |
| Total liabilities                                                                                                                                                                  |   |   | 571,288,141 |   |   |   | 550,831,250 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Commitments and contingent liabilities                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Preferred stock, $1.00 par value, 1,000,000 shares authorized; 4,227 shares issued and outstanding at June 30, 2010 and 2009, liquidation preference of $1,000 per share |   |   |   4,227 |   |   |   |   4,227 |   |
| Common stock, at stated value, 15,000,000 shares authorized; 2,323,832 and 2,321,332 shares issued and outstanding at June 30, 2010 and 2009, respectively               |   |   |   2,323,832 |   |   |   |   2,321,332 |   |
| Warrants                                                                                                                                                                           |   |   | 133,468 |   |   |   | 133,468 |   |
| Additional paid-in capital                                                                                                                                                         |   |   | 6,760,549 |   |   |   | 6,708,997 |   |
| Retained earnings                                                                                                                                                                  |   |   | 37,337,542 |   |   |   | 36,697,712 |   |
| Accumulated other comprehensive income                                                                                                                                             |   |   | 4,346,441 |   |   |   | 1,451,144 |   |
| Total stockholders' equity                                                                                                                                                         |   |   | 50,906,059 |   |   |   | 47,316,880 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                                                                                                                         |   | $ | 622,194,200 |   |   |   | 598,148,130 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                                                                                            |   |   |   |   |   |

|                                                                    |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Interest and dividend income:                                           |   |   |       |   |   |   |       |   |   |
| Interest and fees on loans                                              |   | $      | 23,802,814 |   |   |   | 25,887,961 |   |   |   | 29,271,770 |   |
| Taxable interest on available-for-sale securities                       |   |   | 6,859,791  |   |   |   | 7,171,178  |   |   |   | 5,106,019 |   |
| Tax-exempt interest on available-for-sale securities                    |   |   | 475,713    |   |   |   | 454,047    |   |   |   | 448,378 |   |
| Dividends on available-for-sale securities                              |   |   | 75,047     |   |   |   | 92,530     |   |   |   | 151,481 |   |
| Dividends on Federal Home Loan Bank and Federal Reserve Bank stock |   |   | 35,805     |   |   |   | 97,972     |   |   |   | 306,668 |   |
| Other interest and dividend income                                      |   |   | 12,421     |   |   |   | 61,983     |   |   |   | 77,346 |   |
| Interest on Federal Home Loan Bank overnight deposits                   |   |   | -          |   |   |   | 244        |   |   |   | 36,012 |   |
| Total interest and dividend income                                      |   |   | 31,261,591 |   |   |   | 33,765,915 |   |   |   | 35,397,674 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest expense:                                                       |   |   |       |   |   |   |       |   |   |   |   |   |
| Deposits                                                                |   |   | 7,114,801  |   |   |   | 9,368,203  |   |   |   | 13,089,876 |   |
| Federal Home Loan Bank advances                                         |   |   | 1,797,635  |   |   |   | 2,470,607  |   |   |   | 3,747,221 |   |
| Structured repurchase agreements                                        |   |   | 2,871,580  |   |   |   | 2,980,696  |   |   |   | 1,503,778 |   |
| Short-term borrowings                                                   |   |   | 654,570    |   |   |   | 718,095    |   |   |   | 1,244,442 |   |
| Junior subordinated debentures issued to affiliated trusts              |   |   | 759,356    |   |   |   | 959,476    |   |   |   | 1,064,964 |   |
| FRB borrower-in-custody                                                 |   |   | -          |   |   |   | 98,293     |   |   |   | 8,007 |   |
| Obligation under capital lease agreements                               |   |   | 116,064    |   |   |   | 152,688    |   |   |   | 149,453 |   |
| Other borrowings                                                        |   |   | 198,828    |   |   |   | 232,381    |   |   |   | 243,264 |   |
| Total interest expense                                                  |   |   | 13,512,834 |   |   |   | 16,980,439 |   |   |   | 21,051,005 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Net interest and dividend income before provision for loan losses       |   |   | 17,748,757 |   |   |   | 16,785,476 |   |   |   | 14,346,669 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Provision for loan losses                                               |   |   | 1,864,419  |   |   |   | 2,099,650  |   |   |   | 836,484 |   |
| Net interest and dividend income after provision for loan losses   |   |   | 15,884,338 |   |   |   | 14,685,826 |   |   |   | 13,510,185 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Noninterest income:                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Fees and service charges on loans                                       |   |   | 55,278     |   |   |   | 45,337     |   |   |   | 35,484 |   |
| Fees for other services to customers                                    |   |   | 1,503,689  |   |   |   | 1,103,681  |   |   |   | 1,094,043 |   |
| Net securities (losses) gains                                           |   |   | (17,803    | )      |   |   | 268,373    |   |   |   | 293,101 |   |
| Gain on sales of loans                                                  |   |   | 1,263,600  |   |   |   | 826,700    |   |   |   | 614,594 |   |
| Investment commissions                                                  |   |   | 2,053,738  |   |   |   | 1,588,656  |   |   |   | 2,222,935 |   |
| Insurance commissions                                                   |   |   | 6,212,581  |   |   |   | 5,864,743  |   |   |   | 5,364,280 |   |
| BOLI income                                                             |   |   | 502,383    |   |   |   | 491,309    |   |   |   | 457,198 |   |
| Other                                                                   |   |   | 572,605    |   |   |   | 584,061    |   |   |   | 721,589 |   |
| Total noninterest income                                                |   |   | 12,146,071 |   |   |   | 10,772,860 |   |   |   | 10,803,224 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |

| Noninterest expense:                                                                                                                                                                                                                            |   |   |                    |   |   |   |                    |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------|--------|--------|--------|-------------------------|--------|--------|
| Salaries and employee benefits                                                                                                                                                                                                                  |   |   | 13,919,899              |   |   |   | 13,749,872              |   |   |   | 13,019,398 |   |
| Occupancy expense                                                                                                                                                                                                                               |   |   | 1,864,642               |   |   |   | 1,810,019               |   |   |   | 1,792,827 |   |
| Equipment expense                                                                                                                                                                                                                               |   |   | 1,473,620               |   |   |   | 1,603,519               |   |   |   | 1,587,297 |   |
| Intangible assets amortization                                                                                                                                                                                                                  |   |   | 723,974                 |   |   |   | 747,947                 |   |   |   | 610,657 |   |
| Goodwill impairment                                                                                                                                                                                                                             |   |   | 407,896                 |   |   |   | -                       |   |   |   | - |   |
| Other (includes total write-downs of available-for-sale securities of $134,837 and   $487,479, net of $0 and $59,270 recognized in other comprehensive income   during 2010 and 2009, respectively, before taxes) |   |   |     7,026,592 |   |   |   |     6,549,686 |   |   |   |     4,844,275 |   |
| Total noninterest expense                                                                                                                                                                                                                       |   |   | 25,416,623              |   |   |   | 24,461,043              |   |   |   | 21,854,454 |   |
|                                                                                                                                                                                                                                            |   |   |                    |   |   |   |                    |   |   |   |   |   |
|            Income before income taxes                                                                                                                                                    |   |   | 2,613,786               |   |   |   | 997,643                 |   |   |   | 2,458,955 |   |
|                                                                                                                                                                                                                                            |   |   |                    |   |   |   |                    |   |   |   |   |   |
| Income tax expense                                                                                                                                                                                                                              |   |   | 895,114                 |   |   |   | 38,654                  |   |   |   | 527,666 |   |
| Net income                                                                                                                                                                                                                                      |   | $      | 1,718,672               |   |   |   |  958,989           |   |   |   | 1,931,289 |   |
|                                                                                                                                                                                                                                            |   |   |                    |   |   |   |                    |   |   |   |   |   |
| Net income available to common stockholders                                                                                                                                                                                                     |   | $      | 1,475,691               |   |   |   | 824,602                 |   |   |   | 1,931,289 |   |
|                                                                                                                                                                                                                                            |   |   |                    |   |   |   |                    |   |   |   |   |   |
| Earnings per common share:                                                                                                                                                                                                                      |   |   |                    |   |   |   |                    |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                           |   | $      | 0.64                    |   |   |   | 0.36                    |   |   |   | 0.82 |   |
| Diluted                                                                                                                                                                                                                                         |   | $      | 0.63                    |   |   |   |  0.36              |   |   |   | 0.82 |   |
|                                                                                                                                                                                                                                            |   |   |                    |   |   |   |                    |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                                                                                                                                                         |   |

|                                                                                                                                                                                                                                                                                   |  Preferred  Stock |                          |   |  Common Stock |   |                          |   Warrants |   |   | AdditionalPaid-in Capital |   |   |  Retained Earnings |                          |   | AccumulatedOtherComprehensive Loss |   |                          |    Total |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|-------------------------------|--------|-------------------------|--------|-------------------------------|----------------------|--------|--------|--------------------------------|--------|--------|------------------------------|-------------------------------|--------|-----------------------------------------|--------|-------------------------------|-------------------------|--------|
| Balance at June 30, 2007                                                                                                                                                                                                                                                               | $                           | -                             |   |                    |   | 2,448,832                     |                 |   |   | -                              |   |   |                         | 4,715,164                     |   |                                    |   | 35,600,428                    |                    |   |   | (1,914,546 | ) |   |   | 40,849,878 |   |
|                                                                                                                                                                                                                                                                                   |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
| Net income                                                                                                                                                                                                                                                                             |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | 1,931,289                     |                    |   |   | - |   |   |   | 1,931,289 |   |
| Other comprehensive income net of tax:    Net unrealized gain on investments       available-for-sale, net of        reclassification adjustment                                   |                        |         - |   |                    |   |         - |                 |   |   |         -  |   |   |                         |         - |   |                                    |   |         - |                    |   |   |         610,474 |   |   |   |         610,474 |   |
|     Total comprehensive income                                                                                                                                                                                                                                          |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | -                             |                    |   |   | - |   |   |   | 2,541,763 |   |
|                                                                                                                                                                                                                                                                                   |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
| Purchase of 137,800 shares of   Company stock                                                                                                                                                                                                                           |                        | -                             |   |                    |   | (137,800                      | )                    |   |   | -                              |   |   |                         | (2,176,530                    | )      |                                    |   | -                             |                    |   |   | - |   |   |   | (2,314,330 | ) |
| Stock options exercised                                                                                                                                                                                                                                                                |                        | -                             |   |                    |   | 4,000                         |                 |   |   | -                              |   |   |                         | 41,125                        |   |                                    |   | -                             |                    |   |   | - |   |   |   | 45,125 |   |
| Stock grant                                                                                                                                                                                                                                                                            |                        | -                             |   |                    |   | 150                           |                 |   |   | -                              |   |   |                         | 2,511                         |   |                                    |   | -                             |                    |   |   | - |   |   |   | 2,661 |   |
| Dividends on common stock at $0.36  per share                                                                                                                                                                                                                                |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | (851,785                      | )                       |   |   | - |   |   |   | (851,785 | ) |
|                                                                                                                                                                                                                                                                                   |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
| Balance at June 30, 2008                                                                                                                                                                                                                                                               |                        | -                             |   |                    |   | 2,315,182                     |                 |   |   | -                              |   |   |                         | 2,582,270                     |   |                                    |   | 36,679,932                    |                    |   |   | (1,304,072 | ) |   |   | 40,273,312 |   |
|                                                                                                                                                                                                                                                                                   |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
| Net income                                                                                                                                                                                                                                                                             |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | 958,989                       |                    |   |   | - |   |   |   | 958,989 |   |
| Other comprehensive income net of tax:    Net unrealized gain on investments       available-for-sale, net of       reclassification adjustment                               |                        |         - |   |                    |   |         - |                 |   |   |         -  |   |   |                         |         - |   |                                    |   |         - |                    |   |   |         2,755,216 |   |   |   |         2,755,216 |   |
|     Total comprehensive income                                                                                                                                                                                                                                          |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | -                             |                    |   |   | - |   |   |   | 3,714,205 |   |
|                                                                                                                                                                                                                                                                                   |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
| Net proceeds from Capital Purchase Program                                                                                                                                                                                                                                        |                        | 4,227                         |   |                    |   | -                             |                 |   |   | 133,468                        |   |   |                         | 4,063,299                     |   |                                    |   | -                             |                    |   |   | - |   |   |   | 4,200,994 |   |
| Stock options exercised                                                                                                                                                                                                                                                                |                        | -                             |   |                    |   | 6,000                         |                 |   |   | -                              |   |   |                         | 44,500                        |   |                                    |   | -                             |                    |   |   | - |   |   |   | 50,500 |   |
| Stock grant                                                                                                                                                                                                                                                                            |                        | -                             |   |                    |   | 150                           |                 |   |   | -                              |   |   |                         | 1,578                         |   |                                    |   | -                             |                    |   |   | - |   |   |   | 1,728 |   |
| Dividends on common stock at $0.36   per share                                                                                                                                                                                                                     |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | (834,036                      | )                       |   |   | - |   |   |   | (834,036 | ) |
| Dividends on preferred stock                                                                                                                                                                                                                                                           |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | (89,823                       | )                       |   |   | - |   |   |   | (89,823 | ) |
| Accretion of preferred stock                                                                                                                                                                                                                                                           |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | 14,483                        |   |                                    |   | (14,483                       | )                       |   |   | - |   |   |   | - |   |
| Amortization of issuance cost of  preferred stock                                                                                                                                                                                                                       |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | 2,867                         |   |                                    |   | (2,867                        | )                       |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                   |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009                                                                                                                                                                                                                                                               |                        | 4,227                         |   |                    |   | 2,321,332                     |                 |   |   | 133,468                        |   |   |                         | 6,708,997                     |   |                                    |   | 36,697,712                    |                    |   |   | 1,451,144 |   |   |   | 47,316,880 |   |
|                                                                                                                                                                                                                                                                                   |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
|     Net income                                                                                                                                                                                                                                                          |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | 1,718,672                     |                    |   |   | - |   |   |   | 1,718,672 |   |
|     Other comprehensive income net of tax:                                                                                                                                                                                                                              |                        |                          |   |                    |   |                          |                 |   |   |                           |   |   |                         |                          |   |                                    |   |                          |                    |   |   |   |   |   |   |   |   |
|         Net unrealized loss on purchased           interest rate caps and rate swaps                                                                                               |                        |   -                      |   |                    |   |   -                      |                 |   |   |   -                       |   |   |                         |   -                      |   |                                    |   |   -                      |                    |   |   | (411,529 | ) |   |   | (411,529 | ) |
|         Net unrealized gain on investments           available-for sale, net of            reclassification adjustment |                        |     -               |   |                    |   |     -               |                 |   |   |     -                |   |   |                         |     -               |   |                                    |   |     -               |                    |   |   |     3,306,826 |   |   |   |      3,306,826 |   |
|                  Total comprehensive income                                                                                                                                                  |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | -                             |                    |   |   | - |   |   |   | 4,613,969 |   |
|      Stock options exercised including        related tax benefit of $2,045                                                                                                                                      |                        |   -                      |   |                    |   |   2,500                  |                 |   |   |   -                       |   |   |                         |   19,920                 |   |                                    |   |   -                      |                    |   |   |   - |   |   |   |   22,420 |   |
|      Dividends on common stock at $0.36         per share                                                                                                                                                             |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | (835,860                      | )                       |   |   | - |   |   |   | (835,860 | ) |
|      Dividends on preferred stock                                                                                                                                                                                                                             |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | -                             |   |                                    |   | (211,350                      | )                       |   |   | - |   |   |   | (211,350 | ) |
|      Accretion of preferred stock                                                                                                                                                                                                                             |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | 5,201                         |   |                                    |   | (5,201                        | )                       |   |   | - |   |   |   | - |   |
|      Amortization of issuance cost of        preferred stock                                                                                                                                                          |                        | -                             |   |                    |   | -                             |                 |   |   | -                              |   |   |                         | 26,431                        |   |                                    |   | (26,431                       | )                       |   |   | - |   |   |   | - |   |
| Balance at June 30, 2010                                                                                                                                                                                                                                                               | $                           | 4,227                         |   |                    |   | 2,323,832                     |                 |   |   | 133,468                        |   |   |                         | 6,760,549                     |   |                                    |   | 37,337,542                    |                    |   |   | 4,346,441 |   |   |   | 50,906,059 |   |

|                                                                                                                                                                    |   | 2010   |        |   | 2009   |   |        | 2008    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|---------|--------|
| Cash flows from operating activities:                                                                                                                                   |   |   |        |   |   |   |        |    |   |
| Net income                                                                                                                                                              |   | $      | 1,718,672   |   |   |   | 958,989     |    |   |   | 1,931,289 |   |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities:                                                                        |   |   |        |   |   |   |        |    |   |   |   |   |
| Provision for loan losses                                                                                                                                               |   |   | 1,864,419   |   |   |   | 2,099,650   |    |   |   | 836,484 |   |
| Provision made for deferred compensation                                                                                                                                |   |   | 196,839     |   |   |   | 165,776     |    |   |   | 132,111 |   |
| Write-down of available-for-sale securities                                                                                                                             |   |   | 134,837     |   |   |   | 428,209     |    |   |   | 147,247 |   |
| Write-down of non-marketable securities                                                                                                                                 |   |   | 99,041      |   |   |   | 10,005      |    |   |   | 47,020 |   |
| Write-down of goodwill                                                                                                                                                  |   |   | 407,896     |   |   |   | -           |    |   |   | - |   |
| Amortization of intangible assets                                                                                                                                       |   |   | 723,974     |   |   |   | 747,947     |    |   |   | 610,657 |   |
| Deferred income tax expense (benefit)                                                                                                                                   |   |   | 177,295     |   |   |   | (181,710    | )  |   |   | 218,579 |   |
| BOLI income, net                                                                                                                                                        |   |   | (502,383    | )      |   |   | (491,309    | )       |   |   | (447,632 | ) |
| Depreciation of premises and equipment                                                                                                                                  |   |   | 1,074,792   |   |   |   | 1,151,399   |    |   |   | 1,121,573 |   |
| Net loss (gain) on sales of available-for-sale securities                                                                                                               |   |   | 17,803      |   |   |   | (268,373    | )       |   |   | (293,101 | ) |
| Net loss on sale of acquired assets                                                                                                                                     |   |   | 239,126     |   |   |   | 67,865      |    |   |   |   |   |
| Net loss on disposals, writedowns and sale of fixed assets                                                                                                              |   |   | 99,174      |   |   |   | -           |    |   |   | - |   |
| Net gain on sale of insurance businesses                                                                                                                                |   |   | (234,907    | )      |   |   | -           |    |   |   | - |   |
| Net change of loans held-for-sale                                                                                                                                       |   |   | (11,817,498 | )      |   |   | (1,951,015  | )       |   |   | 1,150,905 |   |
| Stock grant                                                                                                                                                             |   |   | -           |   |   |   | 1,728       |    |   |   | 2,661 |   |
| Net accretion of securities                                                                                                                                             |   |   | (6,338      | )      |   |   | (171,835    | )       |   |   | (29,611 | ) |
| Change in other assets and liabilities:                                                                                                                                 |   |   |        |   |   |   |        |    |   |   |   |   |
| Interest receivable                                                                                                                                                     |   |   | 119,622     |   |   |   | 81,241      |    |   |   | 295,406 |   |
| Prepayment FDIC assessment                                                                                                                                              |   |   | (1,787,759  | )      |   |   | -           |    |   |   | - |   |
| Other assets and liabilities                                                                                                                                            |   |   | (381,756    | )      |   |   | 230,079     |    |   |   | (904,194 | ) |
| Net cash (used in) provided by operating activities                                                                                                                     |   |   | (7,857,151  | )      |   |   | 2,878,646   |    |   |   | 4,819,394 |   |
|                                                                                                                                                                    |   |   |        |   |   |   |        |    |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                   |   |   |        |   |   |   |        |    |   |   |   |   |
| Federal Reserve Bank stock purchased                                                                                                                                    |   |   | -           |   |   |   | (125,250    | )       |   |   | - |   |
| Federal Home Loan Bank stock purchased                                                                                                                                  |   |   | -           |   |   |   | -           |    |   |   | (63,700 | ) |
| Proceeds from the sales of available-for-sale securities                                                                                                                |   |   | 581,915     |   |   |   | 11,701,419  |    |   |   | 16,035,767 |   |
| Purchases of available-for-sale securities                                                                                                                              |   |   | (61,689,325 | )      |   |   | (55,451,827 | )       |   |   | (78,435,328 | ) |
| Proceeds from maturities and principal payments on available-for-sale securities                                                                                   |   |   | 50,193,886  |   |   |   | 29,084,816  |    |   |   | 20,300,010 |   |
| Loan originations and principal collections, net                                                                                                                        |   |   | 7,670,855   |   |   |   | 12,677,708  |    |   |   | 14,742,983 |   |
| Investment in low income tax credit                                                                                                                                     |   |   | (1,004,730  | )      |   |   | -           |    |   |   | - |   |
| Purchases of premises and equipment                                                                                                                                     |   |   | (719,950    | )      |   |   | (1,212,000  | )       |   |   | (1,873,282 | ) |
| Proceeds from sales of premises and equipment                                                                                                                           |   |   | 293,100     |   |   |   | -           |    |   |   | - |   |
| Proceeds from sales of acquired assets                                                                                                                                  |   |   | 990,353     |   |   |   | 743,800     |    |   |   | 152,384 |   |
| Purchase of BOLI                                                                                                                                                        |   |   | -           |   |   |   | -           |    |   |   | (2,000,000 | ) |
| Cash proceeds from sale of insurance businesses                                                                                                                         |   |   | 534,366     |   |   |   | -           |    |   |   | - |   |
| Cash paid in connection with acquisition of insurance agencies                                                                                                     |   |   | -           |   |   |   | (717,710    | )       |   |   | (3,740,363 | ) |
| Net cash used in investing activities                                                                                                                                   |   |   | (3,149,530  | )      |   |   | (3,299,044  | )       |   |   | (34,881,529 | ) |
|                                                                                                                                                                    |   |   |        |   |   |   |        |    |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                   |   |   |        |   |   |   |        |    |   |   |   |   |
| Net (decrease) increase in deposits                                                                                                                                     |   |   | (1,188,763  | )      |   |   | 22,012,215  |    |   |   | (1,180,006 | ) |
| Advances from the Federal Home Loan Bank                                                                                                                                |   |   | 12,500,000  |   |   |   | 5,000,000   |    |   |   | 22,000,000 |   |
| Repayment of advances from the Federal Home Loan Bank                                                                                                                   |   |   | (2,000,000  | )      |   |   | (30,000,000 | )       |   |   | (39,056,698 | ) |
| Net (repayments) advances on Federal Home Loan Bank overnight advances                                                                                             |   |   | (815,000    | )      |   |   | (24,760,000 | )       |   |   | 14,615,000 |   |
| Structured repurchase agreement proceeds                                                                                                                                |   |   | -           |   |   |   | 25,000,000  |    |   |   | 40,000,000 |   |
| Net increase (decrease) in short-term borrowings                                                                                                                        |   |   | 11,732,549  |   |   |   | 1,594,472   |    |   |   | (264,540 | ) |
| Net proceeds from Capital Purchase Program                                                                                                                              |   |   | -           |   |   |   | 4,200,994   |    |   |   | - |   |
| Dividends paid                                                                                                                                                          |   |   | (1,047,210  | )      |   |   | (923,859    | )       |   |   | (851,785 | ) |
| Company stock purchased                                                                                                                                                 |   |   | -           |   |   |   | -           |    |   |   | (2,314,330 | ) |
| Issuance of common stock                                                                                                                                                |   |   | 20,375      |   |   |   | 50,500      |    |   |   | 45,125 |   |
| Repayment on debt from insurance agencies acquisitions                                                                                                                  |   |   | (634,157    | )      |   |   | (763,068    | )       |   |   | (990,882 | ) |
| Repayment on capital lease obligation                                                                                                                                   |   |   | (148,197    | )      |   |   | (512,195    | )       |   |   | (137,489 | ) |
| Net cash provided by financing activities                                                                                                                               |   |   | 18,419,597  |   |   |   | 899,059     |    |   |   | 31,864,395 |   |
|                                                                                                                                                                    |   |   |        |   |   |   |        |    |   |   |   |   |
| Net increase in cash and cash equivalents                                                                                                                               |   |   | 7,412,916   |   |   |   | 478,661     |    |   |   | 1,802,260 |   |
|                                                                                                                                                                    |   |   |        |   |   |   |        |    |   |   |   |   |
| Cash and cash equivalents, beginning of year                                                                                                                            |   |   | 13,022,642  |   |   |   | 12,543,981  |    |   |   | 10,741,721 |   |
| Cash and cash equivalents, end of year                                                                                                                                  |   | $      | 20,435,558  |   |   |   | 13,022,642  |    |   |   | 12,543,981 |   |
|                                                                                                                                                                    |   |   |        |   |   |   |        |    |   |   |   |   |
| Supplemental schedule of cash flow information:                                                                                                                         |   |   |        |   |   |   |        |    |   |   |   |   |
| Interest paid                                                                                                                                                           |   | $      | 13,539,155  |   |   |   | 17,109,563  |    |   |   | 20,900,773 |   |
| Income taxes paid                                                                                                                                                       |   |   | 890,000     |   |   |   | 372,976     |    |   |   | 540,000 |   |
|                                                                                                                                                                    |   |   |        |   |   |   |        |    |   |   |   |   |
| Supplemental schedule of noncash investing and financing activities:                                                                                               |   |   |        |   |   |   |        |    |   |   |   |   |
| Transfer from loans to acquired assets                                                                                                                                  |   |   | 1,893,541   |   |   |   | 839,646     |    |   |   | 697,982 |   |
| Transfers from acquired assets owned to loans                                                                                                                           |   |   | 44,570      |   |   |   | 33,662      |    |   |   | - |   |
| Change in net unrealized gains on available-for-sale securities, purchased interest   rate caps and interest rate swaps, net of tax            |   |   | 2,895,297   |   |   |   | 2,755,216   |    |   |   | 610,474 |   |
| Net change in deferred taxes for net unrealized gains on available-for-sale securities,   purchased interest rate caps and interest rate swaps |   |   | (1,491,514  | )      |   |   | (1,419,356  | )       |   |   | (314,486 | ) |
| Capital lease asset and related obligation                                                                                                                              |   |   | -           |   |   |   | -           |    |   |   | 375,000 |   |
| Other borrowings and goodwill reductions related to acquisition                                                                                                         |   |   | -           |   |   |   | -           |    |   |   | 98,332 |   |
|                                                                                                                                                                    |   |   |        |   |   |   |        |    |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.                                                                                 |   |

|                                        |   |     |      |   | Customer    |   |      |        |   |   | Total        |   |
|---------------------------------------------|--------|----------|-----------|--------|-------------|--------|-----------|-------------|--------|--------|--------------|--------|
|                                        |   |     |      |   | List        |   |      | Non-compete |   |   | Identifiable |   |
|                                        |   | Goodwill |      |   | Intangibles |   |      | Intangibles |   |   | Intangibles  |   |
|     Balance, June 30, 2008   |   | $        | 4,390,340 |   |        |   | 6,926,555 |        |   |   | 1,517,869    |   |   |   | 8,444,424 |   |
|     Recorded during the year |   |     | 100,160   |   |        |   | 480,000   |        |   |   | 135,000      |   |   |   | 615,000 |   |
|     Amortization expense     |   |     | -         |   |        |   | (590,120  | )           |   |   | (157,827     | )      |   |   | (747,947 | ) |
| Balance, June 30, 2009                      |   |     | 4,490,500 |   |        |   | 6,816,435 |        |   |   | 1,495,042    |   |   |   | 8,311,477 |   |
| Recorded during the year                    |   |     |      |   |        |   |      |        |   |   |         |   |   |   |   |   |
| Amortization expense                        |   |     | -         |   |        |   | (560,891  | )           |   |   | (163,083     | )      |   |   | (723,974 | ) |
| Goodwill impairment and customer list sales |   |     | (407,896  | )      |        |   | (299,459  | )           |   |   | -            |   |   |   | (299,459 | ) |
| Balance, June 30, 2010                      |   | $        | 4,082,604 |   |        |   | 5,956,085 |        |   |   | 1,331,959    |   |   |   | 7,288,044 |   |
|                                        |   |     |      |   |        |   |      |        |   |   |         |   |   |   |   |   |

| Estimated Annual Amortization Expense, years ending June 30: |   |   |    |
|--------------------------------------------------------------|--------|--------|---------|
| 2011                                                         |   | $      | 699,836 |   |
| 2012                                                         |   |   | 699,836 |   |
| 2013                                                         |   |   | 699,836 |   |
| 2014                                                         |   |   | 699,836 |   |
| 2015                                                         |   |   | 699,836 |   |
|                                                         |   |   |    |   |

| The components of identifiable intangible assets follow: |   |           |      |   |         |   |      |         |   |
|----------------------------------------------------------|--------|----------------|-----------|--------|--------------|--------|-----------|--------------|--------|
|                                                     |   |           |      |   |         |   |      |         |   |
|                                                     |   | June 30, 2010  |      |
|                                                     |   | Gross Carrying |      |   | Accumulated  |   |      | Net Carrying |   |
|                                                     |   | Amount         |      |   | Amortization |   |      | Amount       |   |
| Identifiable intangible assets:                          |   |           |      |   |         |   |      |         |   |
| Customer list intangibles                                |   | $              | 7,840,891 |   |         |   | 1,884,806 |         |   |   | 5,956,085 |   |
| Non-compete intangibles                                  |   |           | 1,770,000 |   |         |   | 438,041   |         |   |   | 1,331,959 |   |
| Total                                                    |   | $              | 9,610,891 |   |         |   | 2,322,847 |         |   |   | 7,288,044 |   |
|                                                     |   |           |      |   |         |   |      |         |   |   |   |   |

|                            |   | June 30, 2009  |       |
|---------------------------------|--------|----------------|------------|
|                            |   | Gross Carrying |       |   | Accumulated |   |   | Net Carrying |   |
|                            |   | Amount         |       |   | Amortization |   |   | Amount |   |
| Identifiable intangible assets: |   |           |       |   |   |   |   |   |   |
| Customer list intangibles       |   | $              | 8,681,564  |   |   |   | 1,865,129 |   |   |   | 6,816,435 |   |
| Non-compete intangibles         |   |           | 2,020,000  |   |   |   | 524,958 |   |   |   | 1,495,042 |   |
| Total                           |   | $              | 10,701,564 |   |   |   | 2,390,087 |   |   |   | 8,311,477 |   |

|                                                                 |   | 2010          |        |   | 2009            |   |
|----------------------------------------------------------------------|--------|---------------|-------------|--------|-----------------|--------|
|                                                                 |   | AmortizedCost |        |   | Fair Value |   |   | AmortizedCost |   |   | Fair Value |   |
| Debt securities issued by U.S. Government-sponsored enterprises |   | $             | 8,583,080   |   |            |   |  8,649,135 |   |   |   |  8,995,182 |   |   |   |  9,029,001 |   |
| Mortgage-backed securities                                           |   |          | 126,536,947 |   |            |   | 133,861,542 |   |   |   | 121,724,975 |   |   |   | 124,904,616 |   |
| Municipal bonds                                                      |   |          | 11,905,390  |   |            |   | 12,007,322 |   |   |   | 11,762,533 |   |   |   | 11,529,915 |   |
| Corporate bonds                                                      |   |          | 994,082     |   |            |   | 1,029,536 |   |   |   | 1,484,571 |   |   |   | 1,491,918 |   |
| Collateralized Mortgage Obligations                                  |   |          | 7,330,766   |   |            |   | 7,422,971 |   |   |   | - |   |   |   | - |   |
| Equity securities                                                    |   |          | 1,044,081   |   |            |   | 775,744 |   |   |   | 1,567,069 |   |   |   | 1,043,078 |   |
| Trust preferred securities                                           |   |          | 584,311     |   |            |   | 441,452 |   |   |   | 677,105 |   |   |   | 411,612 |   |
|                                                                 |   | $             | 156,978,657 |   |            |   | 164,187,702 |   |   |   | 146,211,435 |   |   |   | 148,410,140 |   |

|                                                                  |   | 2010                       |      |   | 2009                        |   |
|-----------------------------------------------------------------------|--------|----------------------------|-----------|--------|-----------------------------|--------|
|                                                                  |   | GrossUnrealized Gains |      |   | GrossUnrealized Losses |   |   | GrossUnrealized Gains |   |   | GrossUnrealized Losses |   |
| Debt securities issued by U. S. Government-sponsored enterprises |   | $                          | 66,055    |   |                        |   |  - |   |   |   |  78,443 |   |   |   |  44,624 |   |
| Mortgage-backed securities                                            |   |                       | 7,327,014 |   |                        |   | 2,419 |   |   |   | 3,576,997 |   |   |   | 397,356 |   |
| Municipal bonds                                                       |   |                       | 166,090   |   |                        |   | 64,158 |   |   |   | 46,083 |   |   |   | 278,701 |   |
| Corporate bonds                                                       |   |                       | 35,454    |   |                        |   | - |   |   |   | 18,615 |   |   |   | 11,268 |   |
| Collateralized Mortgage Obligation                                    |   |                       | 92,205    |   |                        |   | - |   |   |   | - |   |   |   | - |   |
| Equity securities                                                     |   |                       | 5,134     |   |                        |   | 273,471 |   |   |   | 26,344 |   |   |   | 550,335 |   |
| Trust preferred securities                                            |   |                       | 60        |   |                        |   | 142,919 |   |   |   | - |   |   |   | 265,493 |   |
|                                                                  |   | $                          | 7,692,012 |   |                        |   | 482,967 |   |   |   | 3,746,482 |   |   |   | 1,547,777 |   |

|                            |   | Less than 12 Months |      |   | More than 12 Months    |   |   | Total           |   |
|---------------------------------|--------|---------------------|-----------|--------|------------------------|--------|--------|-----------------|--------|
|                            |   | Fair Value     |      |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
| June 30, 2010:                  |   |                |      |   |                   |   |   |            |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities |   | $                   | 161,095   |   |                   |   | 2,419  |            |   |   |  - |   |   |   |  - |   |   |   | 161,095 |   |   |   | 2,419 |   |
| Municipal bonds                 |   |                | 2,607,582 |   |                   |   | 19,918 |            |   |   | 830,592 |   |   |   | 44,240 |   |   |   | 3,438,174 |   |   |   | 64,158 |   |
| Equity securities               |   |                | 189,775   |   |                   |   | 10,326 |            |   |   | 472,678 |   |   |   | 263,145 |   |   |   | 662,453 |   |   |   | 273,471 |   |
| Trust preferred securities      |   |                | 95,055    |   |                   |   | 726    |            |   |   | 338,747 |   |   |   | 142,193 |   |   |   | 433,802 |   |   |   | 142,919 |   |
|                            |   | $                   | 3,053,507 |   |                   |   | 33,389 |            |   |   | 1,642,017 |   |   |   | 449,578 |   |   |   | 4,695,524 |   |   |   | 482,967 |   |

| June 30, 2009:                        |   |   |       |   |   |   |         |   |   |   |      |   |   |   |    |   |   |   |
|---------------------------------------|--------|--------|------------|--------|--------|--------|--------------|--------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|
| U.S. Government-sponsored enterprises |   | $      | 948,022    |   |   |   |  44,624 |   |   |   |  -   |   |   |   |  - |   |   |   |  948,022 |   |   |   |  44,624 |   |
| Mortgage-backed securities       |   |   | 19,948,839 |   |   |   | 393,117      |   |   |   | 224,084   |   |   |   | 4,239   |   |   |   | 20,172,923 |   |   |   | 397,356 |   |
| Municipal bonds                       |   |   | 6,278,545  |   |   |   | 200,516      |   |   |   | 829,002   |   |   |   | 78,185  |   |   |   | 7,107,547 |   |   |   | 278,701 |   |
| Corporate bonds                       |   |   | -          |   |   |   | -            |   |   |   | 488,731   |   |   |   | 11,268  |   |   |   | 488,731 |   |   |   | 11,268 |   |
| Equity securities                     |   |   | 210,607    |   |   |   | 77,388       |   |   |   | 675,083   |   |   |   | 472,947 |   |   |   | 885,690 |   |   |   | 550,335 |   |
| Trust preferred securities            |   |   | -          |   |   |   | -            |   |   |   | 411,612   |   |   |   | 265,493 |   |   |   | 411,612 |   |   |   | 265,493 |   |
|                                  |   | $      | 27,386,013 |   |   |   | 715,645      |   |   |   | 2,628,512 |   |   |   | 832,132 |   |   |   | 30,014,525 |   |   |   | 1,547,777 |   |

|                                                                                    | EquitySecurities |    |   | Trust PreferredSecurities |   |    | Total  |   |
|-----------------------------------------------------------------------------------------|------------------|---------|--------|---------------------------|--------|---------|--------|--------|
| Total other-than-temporary impairment losses                                            | $                | 134,837 |   |                      |   | -       |   |   |   | 134,837 |   |
| Less: unrealized other-than-temporary losses recognized in other comprehensive loss (1) |             | -       |   |                      |   |  - |   |   |   |  - |   |
| Net impairment losses recognized in earnings (2)                                        | $                | 134,837 |   |                      |   | -       |   |   |   | 134,837 |   |

|                                                                                    | EquitySecurities |    |  Trust PreferredSecurities |   | Total  |         |
|-----------------------------------------------------------------------------------------|------------------|---------|---------------------------------|--------|--------|--------------|
| Total other-than-temporary impairment losses                                            | $                | 329,479 |                            |   |   | 158,000      |   |   |   | 487,479 |   |
| Less: unrealized other-than-temporary losses recognized in other comprehensive loss (1) |             |  - |                            |   |   |  59,270 |   |   |   |  59,270 |   |
| Net impairment losses recognized in earnings (2)                                        | $                | 329,479 |                            |   |   | 98,730       |   |   |   | 428,209 |   |

|                                                                                                                         |   | Total  |    |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| Balance, July 1, 2009                                                                                                        |   | $      | 98,730  |   |
| Additions for the credit component on debt securities in which other-than-temporary impairment was not previously recognized |   |   | -       |   |
| Less realized losses for securities sold                                                                                     |   |   | (89,500 | ) |
| Balance, June 30, 2010                                                                                                       |   | $      | 9,230   |   |

|                                                                                                                         |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Balance, July 1, 2008                                                                                                        |   | $      | -      |   |
| Additions for the credit component on debt securities in which other-than-temporary impairment was not previously recognized |   |   | 98,730 |   |
| Balance, June 30, 2009                                                                                                       |   | $      | 98,730 |   |

|                                                                                                                                                                                   |   |  Cost |               |   | Fair Value |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------------------|--------|-----------------|--------|
|                                                                                                                                                                                   |   |
| Due in one year or less                                                                                                                                                                |   | $          | 994,082            |   |            |   | 1,029,536 |   |
| Due after one year through five years                                                                                                                                                  |   |       | 5,000,000          |   |            |   | 5,011,858 |   |
| Due after five years through ten years                                                                                                                                                 |   |       | 4,749,824          |   |            |   | 4,804,085 |   |
| Due after ten years                                                                                                                                                                    |   |       | 11,322,957         |   |            |   | 11,281,966 |   |
|                                                                                                                                                                                   |   |       | 22,066,863         |   |            |   | 22,127,445 |   |
| Mortgage-backed and collateralized mortgage obligations securities (consisting of securities with interest rates ranging from 4.00% to 6.375% maturing February 2013 to November 2039) |   |       |   133,867,713 |   |            |   |   141,284,513 |   |
|                                                                                                                                                                                   |   |       | 155,934,576        |   |            |   | 163,411,958 |   |
|                                                                                                                                                                                   |   |       |               |   |            |   |   |   |
| Equity Securities                                                                                                                                                                      |   |       | 1,044,081          |   |            |   | 775,744 |   |
|                                                                                                                                                                                   |   | $          | 156,978,657        |   |            |   | 164,187,702 |   |

|                                      |   | 2010   |        |   | 2009   |   |
|-------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Mortgage loans:                           |   |   |        |   |   |   |
| Residential real estate                   |   | $      | 155,499,237 |   |   |   | 138,789,985 |   |
| Commercial real estate                    |   |   | 121,384,741 |   |   |   | 120,889,910 |   |
| Construction                              |   |   | 9,272,197   |   |   |   | 8,013,304 |   |
| Total mortgage loans                      |   |   | 286,156,175 |   |   |   | 267,693,199 |   |
|                                      |   |   |        |   |   |   |   |   |
| Commercial loans                          |   |   | 30,138,901  |   |   |   | 29,137,318 |   |
| Consumer and other loans                  |   |   | 68,488,798  |   |   |   | 96,464,967 |   |
|                                      |   |   | 384,783,874 |   |   |   | 393,295,484 |   |
| Undisbursed portion of construction loans |   |   | (3,747,732  | )      |   |   | (1,629,356 | ) |
| Net deferred loan origination costs       |   |   | 1,272,375   |   |   |   | 1,984,634 |   |
|                                      |   |   | 382,308,517 |   |   |   | 393,650,762 |   |
|                                      |   |   |        |   |   |   |   |   |
| Less allowance for loan losses            |   |   | 5,806,000   |   |   |   | 5,764,000 |   |
| Net loans                                 |   | $      | 376,502,517 |   |   |   | 387,886,762 |   |

|                                       |   | Years Ended June 30, |       |
|--------------------------------------------|--------|----------------------|------------|
|                                       |   | 2010                 |       |   | 2009 |   |   | 2008 |   |
| Balance at beginning of year               |   | $                    | 5,764,000  |   |   |   | 5,656,000 |   |   |   | 5,756,000 |   |
| Provision charged to operating expenses    |   |                 | 1,864,419  |   |   |   | 2,099,650 |   |   |   | 836,484 |   |
|                                       |   |                 |       |   |   |   |   |   |   |   |   |   |
| Loans charged off                          |   |                 | (1,984,899 | ) |   |   | (2,214,440 | ) |   |   | (1,123,406 | ) |
| Recoveries on loans previously charged off |   |                 | 162,480    |   |   |   | 222,790 |   |   |   | 186,922 |   |
| Net loans charged off                      |   |                 | (1,822,419 | ) |   |   | (1,991,650 | ) |   |   | (936,484 | ) |
|                                       |   |                 |       |   |   |   |   |   |   |   |   |   |
| Balance at end of year                     |   | $                    | 5,806,000  |   |   |   | 5,764,000 |   |   |   | 5,656,000 |   |

|                                              |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|---------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Impaired loans                                    |   | $      | 5,713,743 |   |   |   | 8,111,561 |   |   |   | 5,880,447 |   |
| Impaired loans with related allowances            |   |   | 1,376,652 |   |   |   | 2,230,161 |   |   |   | 1,371,835 |   |
| Allowances on impaired loans                      |   |   | 357,090   |   |   |   | 521,831   |   |   |   | 400,430 |   |
| Average balance of impaired loans during the year |   |   | 7,970,088 |   |   |   | 7,072,573 |   |   |   | 5,243,419 |   |
| Interest recognized on impaired loans             |   |   | 356,876   |   |   |   | 291,918   |   |   |   | 306,098 |   |

|                                |   | 2010   |       |   | 2009   |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|
| Land                                |   | $      | 1,619,586  |   |   |   | 1,644,181 |   |
| Buildings                           |   |   | 3,020,068  |   |   |   | 3,517,199 |   |
| Assets recorded under capital lease |   |   | 2,892,702  |   |   |   | 2,892,702 |   |
| Leasehold and building improvements |   |   | 2,090,563  |   |   |   | 1,980,333 |   |
| Furniture, fixtures and equipment   |   |   | 6,948,760  |   |   |   | 7,092,116 |   |
|                                |   |   | 16,571,679 |   |   |   | 17,126,531 |   |
| Less accumulated depreciation       |   |   | 8,574,625  |   |   |   | 8,382,361 |   |
| Net premises and equipment          |   | $      | 7,997,054  |   |   |   | 8,744,170 |   |

|                                                                                  |   | 2010   |      |   | 2009   |   |
|---------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Real estate properties acquired in settlement of loans and other acquired assets |   | $      | 1,292,161 |   |   |   |  672,669 |   |
| Less allowance for losses                                                             |   |   | -         |   |   |   | - |   |
|                                                                                  |   | $      | 1,292,161 |   |   |   | 672,669 |   |

|                          |   | Acquisitions |    |
|-------------------------------|--------|--------------|---------|
|  Purchase price          |   | 2009         |    |   | 2008 |   |
| Cash paid                     |   | $            | 715,000 |   |   |   | 3,701,250 |   |
| Debt incurred                 |   |         | -       |   |   |   | 2,823,936 |   |
| Acquisition costs             |   |         | 2,710   |   |   |   | 36,354 |   |
| Total                         |   | $            | 717,710 |   |   |   | 6,561,540 |   |
|                          |   |         |    |   |   |   |   |   |
| Allocation of purchase price: |   |         |    |   |   |   |   |   |
| Goodwill                      |   | $            | 100,160 |   |   |   | 1,545,110 |   |
| Customer list intangible      |   |         | 480,000 |   |   |   | 3,905,000 |   |
| Non-compete intangible        |   |         | 135,000 |   |   |   | 1,100,000 |   |
| Fixed and other assets        |   |         | 2,550   |   |   |   | 11,430 |   |
| Deferred income taxes         |   |         |  - |   |   |   | - |   |
| Total                         |   | $            | 717,710 |   |   |   | 6,561,540 |   |
|                          |   |         |    |   |   |   |   |   |

|                                          |   | Mexico |    |   | Rangeley |   |
|-----------------------------------------------|--------|--------|---------|--------|----------|--------|
| Sale price                                    |   | $      | 269,575 |   |     |   | 279,791 |   |
| Allocated customer list, net of amortization  |   |   | 153,803 |   |     |   | 145,656 |   |
| Fixed assets, net of accumulated depreciation |   |   | -       |   |     |   | 5,046 |   |
| Gain recognized                               |   | $      | 115,772 |   |     |   | 129,089 |   |

|                                                     |            | WeightedAverage Rateat June 30, |   |   |   2010 |   |        | 2009        |   |   |
|----------------------------------------------------------|-----------------|---------------------------------|--------|--------|-------------|--------|-------------|-------------|--------|--------|
|                                                     |            |  2010                      |   |   | Amount      |   |        | Percent     |   |   | Amount |   |   | Percent |   |
| Demand                                                   |            |                            | 0.00   | %      |        | $      | 35,266,386  |        |   |   | 9.2 | % |   |   | 32,228,276 |   |   |   | 8.4 | % |
| NOW                                                      |            |                            | 0.71   | %      |        |   | 50,833,904  |        |   |   | 13.2 | % |   |   | 44,465,265 |   |   |   | 11.5 | % |
| Money market                                             |            |                            | 0.97   | %      |        |   | 55,556,017  |        |   |   | 14.5 | % |   |   | 39,049,403 |   |   |   | 10.1 | % |
| Regular savings                                          |            |                            | 0.63   | %      |        |   | 38,189,867  |        |   |   | 9.9 | % |   |   | 19,079,009 |   |   |   | 5.0 | % |
| Certificates of deposit and brokered time deposits: |            |                            |   |   |        |   |        |        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     | Less than 1.00% |                            |   | 0.92   | %           |   |        | 32,523,344  |   |   |   | 8.5 | % |   |   | 8,410,510 |   |   |   | 2.2 | % |
|   1.00 - 3.75%                                 |            |                            | 2.28   | %      |        |   | 125,421,081 |        |   |   | 32.6 | % |   |   | 190,900,718 |   |   |   | 49.5 | % |
|   3.76 - 5.75%                                 |            |                            | 4.28   | %      |        |   | 46,366,767  |        |   |   | 12.1 | % |   |   | 51,215,636 |   |   |   | 13.3 | % |
|   5.76 - 7.75%                                      |            |                            | 7.00   | %      |        |   | 39,857      |        |   |   | 0.0 | % |   |   | 37,169 |   |   |   | 0.0 | % |
|                                                     |            |                            |   | 1.63   | %           |   | $           | 384,197,223 |   |   |   | 100.0 | % |   |   | 385,385,986 |   |   |   | 100.0 | % |

|                 |   | 2011   |        |   | 2012   |   |       | 2013   |   |   | 2014       |   |   | 2015   |       |   | Thereafter |   |
|----------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|------------|--------|
| Less than 1.00% |   | $      | 32,174,492  |   |   |   | 323,697    |   |   |   | 25,155     |   |   |   | -          |   |       |   | - |   |   |   | - |   |
| 1.00-3.75%           |   |   | 49,470,656  |   |   |   | 31,051,620 |   |   |   | 10,419,491 |   |   |   | 3,666,672  |   |       |   | 30,302,941 |   |   |   | 509,701 |   |
| 3.76-5.75%           |   |   | 22,706,648  |   |   |   | 3,474,925  |   |   |   | 4,054,938  |   |   |   | 15,645,306 |   |       |   | 337,032 |   |   |   | 147,918 |   |
| 5.76-7.75%           |   |   | 39,857      |   |   |   | -          |   |   |   | -          |   |   |   | -          |   |       |   | - |   |   |   | - |   |
|                 |   |   |        |   |   |   |       |   |   |   |       |   |   |   |       |   |       |   |   |   |   |   |   |   |   |
| Total                |   | $      | 104,391,653 |   |   |   | 34,850,242 |   |   |   | 14,499,584 |   |   |   | 19,311,978 |   |       |   | 30,639,973 |   |   |   | 657,619 |   |

|                                               |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|----------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| NOW                                                |   | $      | 378,717   |   |   |   | 454,021   |   |   |   | 1,019,644 |   |
| Money market                                       |   |   | 532,363   |   |   |   | 543,884   |   |   |   | 419,733 |   |
| Regular savings                                    |   |   | 180,438   |   |   |   | 69,552    |   |   |   | 160,518 |   |
| Certificates of deposit and brokered time deposits |   |   | 6,023,283 |   |   |   | 8,300,746 |   |   |   | 11,489,981 |   |
|                                               |   | $      | 7,114,801 |   |   |   | 9,368,203 |   |   |   | 13,089,876 |   |

|                                June 30, 2010                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PrincipalAmounts                                                                                                                                                                                                                                                                                                                                                                      |   | Interest Rates |   | Maturity  Dates  |
| $  3,000,000                                                                                                                                                                                                                                                                                                                                                                |   | 4.99% |   | 2011 |
| 5,000,000                                                                                                                                                                                                                                                                                                                                                                             |   | 3.99% |   | 2012 |
| 15,000,000                                                                                                                                                                                                                                                                                                                                                                            |   | 2.55% - 3.99% |   | 2013 |
| 12,500,000                                                                                                                                                                                                                                                                                                                                                                            |   | 2.91% - 3.08% |   | 2015 |
| 10,000,000                                                                                                                                                                                                                                                                                                                                                                            |   | 4.26% |   | 2017 |
| 5,000,000                                                                                                                                                                                                                                                                                                                                                                             |   | 4.29% |   | 2018 |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |
| $50,500,000                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |
|                                June 30, 2009                              |
| PrincipalAmounts                                                                                                                                                                                                                                                                                                                                                                      |   | Interest Rates |   | Maturity  Dates  |
|                                                                                                                                                                                                                                                                                                                                                                                  |
| $  2,815,000                                                                                                                                                                                                                                                                                                                                                                |   | 0.28% - 4.31% |   | 2010 |
|     3,000,000                                                                                                                                                                                                                                                                                                                                                     |   | 4.99% |   | 2011 |
|     5,000,000                                                                                                                                                                                                                                                                                                                                                     |   | 3.99% |   | 2012 |
|   15,000,000                                                                                                                                                                                                                                                                                                                                                                |   | 2.55% - 3.99% |   | 2013 |
|   10,000,000                                                                                                                                                                                                                                                                                                                                                                |   | 4.26% |   | 2017 |
|     5,000,000                                                                                                                                                                                                                                                                                                                                                     |   | 4.29% |   | 2018 |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |
| $40,815,000                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |

| June 30, 2010          |
|------------------------|
|                   |   |   |   | Imbedded |   |   |   |   |   |   |
| Amount                 |   | Interest Rate |   | Cap/Floor |   | Amount of Cap/Floor |   | Strike Rate |   | Maturity |
| $20,000,000            |   | 4.68% |   | Purchased Caps |   | $40,000,000 |   | Expired |   | August 28, 2012 |
| $10,000,000            |   | 3.98% |   | Sold Floors |   | $20,000,000 |   | Expired |   | August 28, 2012 |
| $10,000,000            |   | 4.18% |   | Purchased Caps |   | $10,000,000 |   | 4.88% |   | December 13, 2012 |
| $10,000,000            |   | 4.30% |   | Purchased Caps |   | $10,000,000 |   | 3.79% |   | July 3, 2013 |
| $10,000,000            |   | 4.44% |   | Purchased Caps |   | $10,000,000 |   | 3.81% |   | September 23, 2015 |
| $  5,000,000 |   | 2.86% |   | None |   |   |   |   |   | March 25, 2014 |
| $65,000,000            |   |   |   |   |   |   |   |   |   |   |

| June 30, 2009          |
|------------------------|
|                   |   |   |   | Imbedded |   |   |   |   |   |   |
| Amount                 |   | Interest Rate |   | Cap/Floor |   | Amount of Cap/Floor |   | Strike Rate |   | Maturity |
| $20,000,000            |   | 4.68% |   | Purchased Caps |   | $40,000,000 |   | 5.50% |   | August 28, 2012 |
| $10,000,000            |   | 3.98% |   | Sold Floors |   | $20,000,000 |   | 4.86% |   | August 28, 2012 |
| $10,000,000            |   | 4.18% |   | Purchased Caps |   | $10,000,000 |   | 4.88% |   | December 13, 2012 |
| $10,000,000            |   | 4.30% |   | Purchased Caps |   | $10,000,000 |   | 3.79% |   | July 3, 2013 |
| $10,000,000            |   | 4.44% |   | Purchased Caps |   | $10,000,000 |   | 3.81% |   | September 23, 2015 |
| $  5,000,000 |   | 2.86% |   | None |   |   |   |   |   | March 25, 2014 |
| $65,000,000            |   |   |   |   |   |   |   |   |   |   |

|                                June 30, 2010                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PrincipalAmounts                                                                                                                                                                                                                                                                                                                                                                      |  Interest Rates |  Maturity  Dates  |
|      $ 496,029                                                                                                                                                                                                                                                                                                                                          | 6.50% | 2011 |
|     528,270                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2012 |
|     562,608                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2013 |
|     599,177                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2014 |
|     443,576                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2015 |
|      $ 2,629,660                                                                                                                                                                                                                                                                                                                                        |   |   |

|                                June 30, 2009                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   PrincipalAmounts                                                                                                                                                                                                                                                                                                                                                               |  Interest  Rates |  Maturity   Dates |
|      $   634,157                                                                                                                                                                                                                                                                                                                              | 6.50% | 2010 |
|     496,029                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2011 |
|     528,270                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2012 |
|     562,608                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2013 |
|     599,177                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2014 |
|     443,576                                                                                                                                                                                                                                                                                                                                                       | 6.50% | 2015 |
|  $ 3,263,817                                                                                                                                                                                                                                                                                                                                                                     |   |   |

| 2011                |   | $      | 264,262   |   |
|---------------------|--------|--------|-----------|--------|
| 2012                |   |   | 264,262   |   |
| 2013                |   |   | 264,262   |   |
| 2014                |   |   | 264,262   |   |
| 2015                |   |   | 264,262   |   |
| 2016 and thereafter |   |   | 1,553,270 |   |

|     Total minimum lease payments |   |   | 2,874,580 |   |
|------------------------------------------------------|--------|--------|-----------|--------|
|     Less imputed interest        |   |   | 643,950   |   |
|     Capital lease obligation     |   | $      | 2,230,630 |   |

|                                        |   |    Actual |   |   |  For CapitalAdequacy Purposes |   | To Be "WellCapitalized" UnderPrompt CorrectiveAction Provisions |
|---------------------------------------------|--------|--------------------------|--------|--------|------------------------------------|--------|-----------------------------------------------------------------|
|                                        |   | Amount                   |   |   | Ratio                              |   |                                                            | Amount |   | Ratio |   | Amount |   | Ratio |
|                                        |   | (Dollars in Thousands)   |
| As of June 30, 2010:                        |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |
| Northeast Bancorp:                          |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |
| Total capital to risk weighted assets  |   | $                        | 56,488 |   |                               |   | 14.09                                                           | % |   |   | 32,075 |   | >8.0% |   |   | 40,094 |   | >10.0% |
| Tier 1 capital to risk weighted assets |   | $                        | 50,489 |   |                               |   | 12.59                                                           | % |   |   | 16,037 |   | >4.0% |   |   | 24,056 |   | > 6.0% |
| Tier 1 capital to total average assets |   | $                        | 50,489 |   |                               |   | 8.40                                                            | % |   |   | 24,029 |   | >4.0% |   |   | 30,036 |   | > 5.0% |
|                                        |
| As of June 30, 2009:                        |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Northeast Bancorp:                          |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total capital to risk weighted assets  |   | $                        | 54,309 |   |                               |   | 13.23                                                           | % |   |   | 32,841 |   | >8.0% |   |   | 41,051 |   | >10.0% |
| Tier 1 capital to risk weighted assets |   | $                        | 48,477 |   |                               |   | 11.81                                                           | % |   |   | 16,420 |   | >4.0% |   |   | 24,631 |   | >  6.0% |
| Tier 1 capital to total average assets |   | $                        | 48,477 |   |                               |   | 8.12                                                            | % |   |   | 23,885 |   | >4.0% |   |   | 29,857 |   | >  5.0% |

|                                        |   |    Actual |   |   |  For CapitalAdequacy Purposes |   | To Be "WellCapitalized" UnderPrompt CorrectiveAction Provisions |
|---------------------------------------------|--------|--------------------------|--------|--------|------------------------------------|--------|-----------------------------------------------------------------|
|                                        |   | Amount                   |   |   | Ratio                              |   |                                                            | Amount |   | Ratio |   | Amount |   | Ratio |
|                                        |   | (Dollars in Thousands)   |
| As of June 30, 2010:                        |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |
| Northeast Bank:                             |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |
| Total capital to risk weighted assets  |   | $                        | 54,272 |   |                               |   | 13.58                                                           | % |   |   | 31,968 |   | >8.0% |   |   | 39,960 |   | >10.0% |
| Tier 1 capital to risk weighted assets |   | $                        | 49,267 |   |                               |   | 12.33                                                           | % |   |   | 15,984 |   | >4.0% |   |   | 23,976 |   | >  6.0% |
| Tier 1 capital to total average assets |   | $                        | 49,267 |   |                               |   | 8.24                                                            | % |   |   | 23,930 |   | >4.0% |   |   | 29,913 |   | >  5.0% |
|                                        |

|                                        |   |    Actual |   |   |  For CapitalAdequacy Purposes |   | To Be "WellCapitalized" UnderPrompt CorrectiveAction Provisions |
|---------------------------------------------|--------|--------------------------|--------|--------|------------------------------------|--------|-----------------------------------------------------------------|
|                                        |   | Amount                   |   |   | Ratio                              |   |                                                            | Amount |   | Ratio |   | Amount |   | Ratio |
|                                        |   | (Dollars in Thousands)   |
| As of June 30, 2009:                        |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |
| Northeast Bank:                             |   |                     |   |   |                               |   |                                                            |   |   |   |   |   |   |   |
| Total capital to risk weighted assets  |   | $                        | 51,039 |   |                               |   | 12.51                                                           | % |   |   | 32,635 |   | >8.0% |   |   | 40,793 |   | >10.0% |
| Tier 1 capital to risk weighted assets |   | $                        | 45,931 |   |                               |   | 11.26                                                           | % |   |   | 16,317 |   | >4.0% |   |   | 24,476 |   | >  6.0% |
| Tier 1 capital to total average assets |   | $                        | 45,931 |   |                               |   | 7.72                                                            | % |   |   | 23,787 |   | >4.0% |   |   | 29,734 |   | >  5.0% |

|                                                                 |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|----------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Average shares outstanding, used in computing Basic EPS              |   |   | 2,321,894 |   |   |   | 2,319,830 |   |   |   | 2,352,484 |   |
|                                                                 |   |   |      |   |   |   |      |   |   |   |   |   |
| Effect of Dilutive Securities:                                       |   |   |      |   |   |   |      |   |   |   |   |   |
|   Warrants                                                 |   |   | 8,760     |   |   |   | -         |   |   |   | - |   |
|    Stock and options outstanding                      |   |   | 1,747     |   |   |   | 652       |   |   |   | 12,357 |   |
|    Options exercised or canceled                      |   |   | 1,938     |   |   |   | 1,447     |   |   |   | 1,499 |   |
| Average equivalent shares outstanding, used in computing Diluted EPS |   |   | 2,334,339 |   |   |   | 2,321,929 |   |   |   | 2,366,340 |   |

|                                        |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|---------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Professional fees                           |   | $      | 1,569,691 |   |   |   | 748,238   |   |   |   | 674,100 |   |
| FDIC insurance                              |   |   | 744,662   |   |   |   | 718,586   |   |   |   | 198,870 |   |
| Advertising expense                         |   |   | 546,645   |   |   |   | 566,050   |   |   |   | 504,234 |   |
| Write-down of non-marketable securities     |   |   | 99,041    |   |   |   | 10,005    |   |   |   | 47,020 |   |
| Computer services and processing costs      |   |   | 914,779   |   |   |   | 805,622   |   |   |   | 615,402 |   |
| Loan expense                                |   |   | 773,281   |   |   |   | 847,277   |   |   |   | 308,317 |   |
| Write-down of available-for-sale securities |   |   | 134,837   |   |   |   | 428,209   |   |   |   | 147,247 |   |
| Other                                       |   |   | 2,243,656 |   |   |   | 2,425,699 |   |   |   | 2,349,085 |   |
|                                        |   | $      | 7,026,592 |   |   |   | 6,549,686 |   |   |   | 4,844,275 |   |

|                            |   | 2010   |    |   | 2009   |   |     | 2008   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|
| Federal:                        |   |   |    |   |   |   |     |   |   |
| Current                         |   | $      | 650,930 |   |   |   | 162,715  |   |   |   | 242,115 |   |
| Deferred                        |   |   | 177,295 |   |   |   | (181,710 | )      |   |   | 218,579 |   |
|                            |   |   | 828,225 |   |   |   | (18,995  | )      |   |   | 460,694 |   |
|                            |   |   |    |   |   |   |     |   |   |   |   |   |
| State and local – current |   |   | 66,889  |   |   |   | 57,649   |   |   |   | 66,972 |   |
|                            |   | $      | 895,114 |   |   |   | 38,654   |   |   |   | 527,666 |   |

|                                                       |   | 2010         |     |   | 2009             |   |   | 2008         |   |
|------------------------------------------------------------|--------|--------------|----------|--------|------------------|--------|--------|--------------|--------|
|                                                       |   |  Amount |     |   | % ofPretaxIncome |   |   |  Amount |   |   | % ofPretaxIncome |   |   |  Amount |   |   | % ofPretaxIncome |   |
| Expected income tax  expense at federal tax rate |   | $            | 888,687  |   |             |   | 34.0   | %            |   |   |  339,199 |   |   |   | 34.0 | % |   |   |  836,044 |   |   |   | 34.0 | % |
| State tax, net of federal tax benefit                 |   |         | 44,147   |   |             |   | 1.7    |         |   |   | 38,048 |   |   |   | 3.8 |   |   |   | 44,100 |   |   |   | 1.8 |   |
| Non-taxable merger expense                                 |   |         | 183,775  |   |             |   | 7.0    |         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Non-taxable goodwill impairment                            |   |         | 138,685  |   |             |   | 5.3    |         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Dividend received deduction                           |   |         | (9,465   | )      |             |   | (0.4   | )       |   |   | (22,022 | ) |   |   | (2.2 | )  |   |   | (34,991 | ) |   |   | (1.4 | )  |
| Non-taxable interest income                                |   |         | (172,159 | )      |             |   | (6.6   | )       |   |   | (169,152 | ) |   |   | (17.0 | )  |   |   | (171,749 | ) |   |   | (7.0 | )  |
| Non-taxable BOLI income                                    |   |         | (170,810 | )      |             |   | (6.5   | )       |   |   | (177,401 | ) |   |   | (17.8 | )  |   |   | (158,777 | ) |   |   | (6.5 | )  |
| Unallowable interest                                       |   |         | 17,954   |   |             |   | 0.7    |         |   |   | 21,440 |   |   |   | 2.2 |   |   |   | 28,798 |   |   |   | 1.2 |   |
| Other                                                      |   |         | (25,700  | )      |             |   | (1.0   | )       |   |   | 8,542 |   |   |   | 0.9 |   |   |   | (15,759 | ) |   |   | (0.6 | )  |
|                                                       |   | $            | 895,114  |   |             |   | 34.2   | %            |   |   | 38,654 |   |   |   | 3.9 | % |   |   | 527,666 |   |   |   | 21.5 | % |

|                                                                                                      |   | 2010           |   |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                                                                                      |   | (in thousands) |   |
| Deferred tax assets:                                                                                      |   |           |   |   |   |   |
| Loans, principally due to allowance for loan losses                                                       |   | $              | 1,982  |   |   |   | 1,966 |   |
| Interest on nonperforming loans                                                                           |   |           | 175    |   |   |   | 156 |   |
|                                                                                                      |   |           |   |   |   |   |   |   |
| Deferred compensation                                                                                     |   |           | 136    |   |   |   | 101 |   |
| Federal tax credits                                                                                       |   |           | 88     |   |   |   |   |   |
| Other                                                                                                     |   |           | 103    |   |   |   | 100 |   |
| Total deferred tax assets                                                                                 |   |           | 2,484  |   |   |   | 2,323 |   |
|                                                                                                      |   |           |   |   |   |   |   |   |
| Deferred tax liabilities:                                                                                 |   |           |   |   |   |   |   |   |
| Difference in tax and financial statement basis of investments and derivatives                            |   |           | (1,976 | )      |   |   | (440 | ) |
| Difference in tax and financial statement amortization of goodwill  and other intangible assets |   |           | (337   | )      |   |   | (383 | ) |
| Mortgage servicing rights                                                                                 |   |           | (16    | )      |   |   | (18 | ) |
| Premises and equipment                                                                                    |   |           | (252   | )      |   |   | (250 | ) |
| Prepaid expenses                                                                                          |   |           | (497   | )      |   |   | (158 | ) |
| Total deferred tax liabilities                                                                            |   |           | (3,078 | )      |   |   | (1,249 | ) |
| Net deferred tax(liability)asset                                                                          |   | $              | (594   | )      |   |   | 1,074 |   |

|                                            |   | 2010                     |   |   | 2009                                            |   |   | 2008                     |   |
|-------------------------------------------------|--------|--------------------------|--------|--------|-------------------------------------------------|--------|--------|--------------------------|--------|
|                                            |   |    Shares |   |   | Weighted- Average Exercise Price |   |   |    Shares |   |   | Weighted- Average Exercise Price |   |   |    Shares |   |   | Weighted- Average Exercise   Price  |   |
| Outstanding at beginning of year                |   |                     | 28,000 |   |                                            | $      | 10.23  |                     |   |   | 36,000 |   |   | $ | 10.09 |   |   |   | 52,000 |   |   | $ | 12.12 |   |
| Granted                                         |   |                     | -      |   |                                            |   | -      |                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Exercised                                       |   |                     | (2,500 | )      |                                            |   | 8.15   |                     |   |   | (6,000 | ) |   |   | 8.42 |   |   |   | (4,000 | ) |   |   | 11.28 |   |
| Forfeited                                       |   |                     | (7,500 | )      |                                            |   | 8.88   |                     |   |   | (2,000 | ) |   |   | 13.10 |   |   |   | (12,000 | ) |   |   | 18.50 |   |
| Outstanding and exercisable at end of year |   |                     | 18,000 |   |                                            | $      | 11.08  |                     |   |   | 28,000 |   |   | $ | 10.23 |   |   |   | 36,000 |   |   | $ | 10.09 |   |

|                          |   |                                          |   | Options Outstanding and Exercisable                           |
|-------------------------------|--------|-----------------------------------------------|--------|---------------------------------------------------------------|
|  Range ofExercise Prices |   | NumberOutstanding at June 30, 2010  |   | Weighted-AverageRemaining Contractual Life (Years)  |   |  Weighted-Average  Exercise Price   |
| $8.25                         |   |   7,500                             |   | 0.1                                                           |   | $8.25 |
| $13.10                        |   | 10,500                                        |   | 1.1                                                           |   | 13.10 |
| $8.25 to $13.10               |   | 18,000                                        |   | 0.7                                                           |   | $11.08 |

|                                                                                  |   | 2010   |       |   | 2009   |   |
|---------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                  |   |   |       |   |   |   |
| Commitments to originate loans:                                                       |   |   |       |   |   |   |
| Residential real estate mortgages                                                     |   | $      | 4,214,000  |   |   |   |  6,360,000 |   |
| Residential real estate mortgages held for sale                                       |   |   | 5,869,000  |   |   |   | 5,568,400 |   |
| Construction loans                                                                    |   |   | 1,060,000  |   |   |   | 3,472,000 |   |
| Commercial real estate mortgages, including multi-family residential real estate |   |   | 4,482,000  |   |   |   | 10,046,000 |   |
| Commercial business loans                                                             |   |   | 5,344,000  |   |   |   | 4,564,000 |   |
|                                                                                  |   | $      | 20,969,000 |   |   |   | 30,010,400 |   |
|                                                                                  |   |   |       |   |   |   |   |   |
| Unused lines of credit                                                                |   | $      | 45,477,000 |   |   |   | 37,394,000 |   |
| Standby letters of credit                                                             |   |   | 906,000    |   |   |   | 1,024,000 |   |
| Unadvanced portions of construction loans                                             |   |   | 3,748,000  |   |   |   | 1,629,000 |   |

| 2011                |   | $      | 449,356   |   |
|---------------------|--------|--------|-----------|--------|
| 2012                |   |   | 418,084   |   |
| 2013                |   |   | 209,532   |   |
| 2014                |   |   | 141,883   |   |
| 2015                |   |   | 142,348   |   |
| 2016 and thereafter |   |   | 298,246   |   |
|                |   | $      | 1,659,449 |   |

| Balance Sheets                                             |   |   |       |   |   |   |
|------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Assets                                                     |   | 2010   |       |   | 2009   |   |
|                                                       |   |   |       |   |   |   |
| Cash                                                       |   | $      | 655,217    |   |   |   | 1,416,656 |   |
| Available-for-sale securities                              |   |   | 523,055    |   |   |   | 819,936 |   |
| Investment in banking subsidiary                           |   |   | 65,573,847 |   |   |   | 60,059,579 |   |
| Investment in common securities of affiliated trusts       |   |   | 496,000    |   |   |   | 496,000 |   |
| Goodwill, net                                              |   |   | -          |   |   |   | 407,896 |   |
| Other assets                                               |   |   | 492,568    |   |   |   | 684,439 |   |
| Total assets                                               |   | $      | 67,740,687 |   |   |   | 63,884,506 |   |
|                                                       |   |   |       |   |   |   |   |   |
| Liabilities and Stockholders' Equity                       |   |   |       |   |   |   |   |   |
|                                                       |   |   |       |   |   |   |   |   |
| Junior Subordinated Debentures issued to affiliated trusts |   | $      | 16,496,000 |   |   |   | 16,496,000 |   |
| Other liabilities                                          |   |   | 338,628    |   |   |   | 71,626 |   |
|  Total liabilities                                    |   |   | 16,834,628 |   |   |   | 16,567,626 |   |
|                                                       |   |   |       |   |   |   |   |   |
| Stockholders' equity                                       |   |   | 50,906,059 |   |   |   | 47,316,880 |   |
| Total liabilities and stockholders' equity                 |   | $      | 67,740,687 |   |   |   | 63,884,506 |   |

|                                                                                                     |   |                 |          |   |   |   |      |   |   |
|----------------------------------------------------------------------------------------------------------|--------|----------------------|---------------|--------|--------|--------|-----------|--------|--------|
|                                                                                                     |   | Years Ended June 30, |          |
|                                                                                                     |   | 2010                 |          |   | 2009   |   |      | 2008   |   |
| Income:                                                                                                  |   |                 |          |   |   |   |      |   |   |
| Dividends from banking subsidiary                                                                        |   | $                    | 1,000,000     |   |   |   | 300,000   |   |   |   | 3,300,000 |   |
| Other income                                                                                             |   |                 | 110,350       |   |   |   | 143,743   |   |   |   | 265,516 |   |
| Total income                                                                                             |   |                 | 1,110,350     |   |   |   | 443,743   |   |   |   | 3,565,516 |   |
|                                                                                                     |   |                 |          |   |   |   |      |   |   |   |   |   |
| Expenses:                                                                                                |   |                 |          |   |   |   |      |   |   |   |   |   |
| Interest on Junior Subordinated Debentures paid  to affiliated trusts                          |   |                 | 759,356  |   |   |   | 959,476   |   |   |   | 1,064,964 |   |
| Write-down of goodwill                                                                                   |   |                 | 407,896       |   |   |   | -         |   |   |   | - |   |
| General and administrative expenses                                                                      |   |                 | 952,595       |   |   |   | 356,823   |   |   |   | 338,694 |   |
| Total expenses                                                                                           |   |                 | 2,119,847     |   |   |   | 1,316,299 |   |   |   | 1,403,658 |   |
|                                                                                                     |   |                 |          |   |   |   |      |   |   |   |   |   |
| (Loss) income before income tax benefit and equity in undistributed net (loss) income of subsidiary |   |                 | (1,009,497    | )      |   |   | (872,556  | )      |   |   | 2,161,858 |   |
|                                                                                                     |   |                 |          |   |   |   |      |   |   |   |   |   |
| Income tax benefit                                                                                       |   |                 | 376,035       |   |   |   | 410,631   |   |   |   | 402,919 |   |
|                                                                                                     |   |                 |          |   |   |   |      |   |   |   |   |   |
| (Loss) income before equity in undistributed net income (loss) of subsidiary                        |   |                 | (633,462      | )      |   |   | (461,925  | )      |   |   | 2,564,777 |   |
|                                                                                                     |   |                 |          |   |   |   |      |   |   |   |   |   |
| Equity in undistributed net income (loss) of subsidiary                                                  |   |                 | 2,352,134     |   |   |   | 1,420,914 |   |   |   | (633,488 | ) |
| Net income                                                                                               |   | $                    | 1,718,672     |   |   |   | 958,989   |   |   |   | 1,931,289 |   |
|                                                                                                     |   |                 |          |   |   |   |      |   |   |   |   |   |
| Net income available to common stockholders                                                              |   | $                    | 1,475,691     |   |   |   | 824,602   |   |   |   | 1,931,289 |   |

|                                                                                          |   | Years Ended June 30, |       |
|-----------------------------------------------------------------------------------------------|--------|----------------------|------------|
| Statements of Cash Flows                                                                      |   | 2010                 |       |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                                         |   |                 |       |   |   |   |   |   |   |
| Net income                                                                                    |   | $                    | 1,718,672  |   |   |   | 958,989 |   |   |   | 1,931,289 |   |
| Adjustments to reconcile net income to net cash (used) provided by operating activities: |   |                 |       |   |   |   |   |   |   |   |   |   |
| Amortization                                                                                  |   |                 | 473        |   |   |   | 9,000 |   |   |   | 24,000 |   |
| Stock grant                                                                                   |   |                 | -          |   |   |   | 1,728 |   |   |   | 2,661 |   |
| Undistributed (earnings) loss of subsidiary                                                   |   |                 | (2,352,134 | ) |   |   | (1,420,914 | ) |   |   | 633,488 |   |
| Write-down on available-for-sale securities                                                   |   |                 | 127,957    |   |   |   | 195,161 |   |   |   | 147,247 |   |
| Net gain on available-for-sale securities                                                     |   |                 | (63,031    | ) |   |   | (33,496 | ) |   |   | (78,789 | ) |
| Write-down of non-marketable investments                                                      |   |                 | 99,041     |   |   |   | 10,005 |   |   |   | 47,020 |   |
| Write-down of goodwill                                                                        |   |                 | 407,896    |   |   |   | - |   |   |   | - |   |
| (Increase) decrease in other assets                                                           |   |                 | (391,662   | ) |   |   | 2,349,499 |   |   |   | 227,045 |   |
| Increase (decrease) in other liabilities                                                      |   |                 | 267,002    |   |   |   | (4,331 | ) |   |   | (65,133 | ) |
| Net cash (used) provided by operating activities                                              |   |                 | (185,786   | ) |   |   | 2,065,641 |   |   |   | 2,868,828 |   |
|                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                         |   |                 |       |   |   |   |   |   |   |   |   |   |
| Increase in investment of bank subsidiary                                                     |   |                 | -          |   |   |   | (4,175,000 | ) |   |   | - |   |
| Purchases of available-for-sale securities                                                    |   |                 | (97,077    | ) |   |   | (675,745 | ) |   |   | (1,653,242 | ) |
| Proceeds from sales of available-for-sale securities                                          |   |                 | 548,259    |   |   |   | 454,751 |   |   |   | 983,956 |   |
| Proceeds from maturities and principal payments on available- for-sale securities        |   |                 | -          |   |   |   | 1,536 |   |   |   | - |   |
| Net cash provided (used) by investing activities                                              |   |                 | 451,182    |   |   |   | (4,394,458 | ) |   |   | (669,286 | ) |
|                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                         |   |                 |       |   |   |   |   |   |   |   |   |   |
| Issuance of common stock                                                                      |   |                 | 20,375     |   |   |   | 50,500 |   |   |   | 45,125 |   |
| Company stock purchased                                                                       |   |                 | -          |   |   |   | - |   |   |   | (2,314,330 | ) |
| Net proceeds from Capital Purchase Plan                                                       |   |                 | -          |   |   |   | 4,200,994 |   |   |   | - |   |
| Dividends paid to stockholders                                                                |   |                 | (1,047,210 | ) |   |   | (923,859 | ) |   |   | (851,785 | ) |
| Net cash (used) provided by financing activities                                              |   |                 | (1,026,835 | ) |   |   | 3,327,635 |   |   |   | (3,120,990 | ) |
|                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Net (decrease) increase in cash                                                               |   |                 | (761,439   | ) |   |   | 998,818 |   |   |   | (921,448 | ) |
|                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Cash, beginning of year                                                                       |   |                 | 1,416,656  |   |   |   | 417,838 |   |   |   | 1,339,286 |   |
| Cash, end of year                                                                             |   | $                    | 655,217    |   |   |   | 1,416,656 |   |   |   | 417,838 |   |
|                                                                                          |   |                 |       |   |   |   |   |   |   |   |   |   |
| Supplemental schedule of cash flow information:                                               |   |                 |       |   |   |   |   |   |   |   |   |   |
| Interest paid                                                                                 |   | $                    | 750,665    |   |   |   | 959,997 |   |   |   | 1,065,009 |   |

|                                                                                                                                                                                                                              | 2010   |                  |   | 2009   |   |                  | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|--------|-----------------------|--------|--------|
| Unrealized losses arising during the period on purchased interest rate caps and rate   swaps, net of tax effect of $212,000 in 2010                                                                           | $      | (411,529              | )      |   |   | -                     |   |   |   | - |   |
|                                                                                                                                                                                                                              |   |                  |   |   |   |                  |   |   |   |   |   |
|  Unrealized gains arising during the period, net of tax effect of $(1,651,616) in 2010,   $(1,365,012) in 2009 and $(364,077) in 2008                                                               |   | 3,206,084             |   |   |   | 2,649,724             |   |   |   | 706,738 |   |
|                                                                                                                                                                                                                              |   |                  |   |   |   |                  |   |   |   |   |   |
| Reclassification adjustment for losses (gains) on investments, net of write-downs,   included in net income, net of tax effect of $(51,898) in 2010, $(54,344) in 2009,    and $49,590 in 2008 |   |     100,742 |   |   |   |     105,492 |   |   |   | (96,264 | ) |
| Other comprehensive income                                                                                                                                                                                                        | $      | 2,895,297             |   |   |   | 2,755,216             |   |   |   | 610,474 |   |

|                                                              |   | 2010   |       |   | 2009   |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                              |   |
| Net unrealized gains securities (1)                               |   | $      | 7,209,045  |   |   |   | 2,198,705 |   |
| Net unrealized losses purchased interest rate caps and rate swaps |   |   | (623,529   | )      |   |   | - |   |
| Deferred tax effect                                               |   |   | (2,239,075 | )      |   |   | (747,561 | ) |
| Accumulated other comprehensive income                            |   | $      | 4,346,441  |   |   |   | 1,451,144 |   |

|                                                       |   |    |       |   |      |   |      | Consolidated |   |
|------------------------------------------------------------|--------|---------|------------|--------|-----------|--------|-----------|--------------|--------|
| June 30, 2010                                              |   | Banking |       |   | Insurance |   |      | Total        |   |
| Net interest income (expense)                              |   | $       | 17,974,171 |   |      |   | (225,414  | )            |   |   | 17,748,757 |   |
| Provision for loan losses                                  |   |    | 1,864,419  |   |      |   | -         |         |   |   | 1,864,419 |   |
| Net interest income (loss) after provision for loan losses |   |    | 16,109,752 |   |      |   | (225,414  | )            |   |   | 15,884,338 |   |
|                                                       |   |    |       |   |      |   |      |         |   |   |   |   |
| Noninterest income                                         |   |    | 5,688,630  |   |      |   | 6,457,441 |         |   |   | 12,146,071 |   |
| Noninterest expense                                        |   |    | 19,349,124 |   |      |   | 5,343,525 |         |   |   | 24,692,649 |   |
| Amortization of intangibles                                |   |    | -          |   |      |   | 723,974   |         |   |   | 723,974 |   |
| Income before income taxes                            |   |    | 2,449,258  |   |      |   | 164,528   |         |   |   | 2,613,786 |   |
| Income tax expense                                         |   |    | 836,856    |   |      |   | 58,258    |         |   |   | 895,114 |   |
| Net income                                                 |   | $       | 1,612,402  |   |      |   | 106,270   |         |   |   | 1,718,672 |   |
|                                                       |   |    |       |   |      |   |      |         |   |   |   |   |
|                                                       |   |    |       |   |      |   |      |         |   |   |   |   |

|                                                       |   |    |       |   |      |   |      | Consolidated |   |
|------------------------------------------------------------|--------|---------|------------|--------|-----------|--------|-----------|--------------|--------|
| June 30, 2009                                              |   | Banking |       |   | Insurance |   |      | Total        |   |
| Net interest income (expense)                              |   | $       | 17,069,521 |   |      |   | (284,045  | )            |   |   | 16,785,476 |   |
| Provision for loan losses                                  |   |    | 2,167,515  |   |      |   | -         |         |   |   | 2,167,515 |   |
| Net interest income (loss) after provision for loan losses |   |    | 14,902,006 |   |      |   | (284,045  | )            |   |   | 14,617,961 |   |
|                                                       |   |    |       |   |      |   |      |         |   |   |   |   |
| Noninterest income                                         |   |    | 5,668,508  |   |      |   | 5,864,743 |         |   |   | 11,533,251 |   |
| Noninterest expense                                        |   |    | 19,207,444 |   |      |   | 5,198,178 |         |   |   | 24,405,622 |   |
| Amortization of intangibles                                |   |    | -          |   |      |   | 747,947   |         |   |   | 747,947 |   |
| Income before income taxes                                 |   |    | 1,363,070  |   |      |   | (365,427  | )            |   |   | 997,643 |   |
| Income tax expense                                         |   |    | 161,643    |   |      |   | (122,989  | )            |   |   | 38,654 |   |
| Net income                                                 |   | $       | 1,201,427  |   |      |   | (242,438  | )            |   |   | 958,989 |   |
|                                                       |   |    |       |   |      |   |      |         |   |   |   |   |
|                                                       |   |    |       |   |      |   |      |         |   |   |   |   |
|                                                       |   |    |       |   |      |   |      |         |   | Consolidated |   |
| June 30, 2008                                              |   | Banking |       |   | Insurance |   |      | Total        |   |
| Net interest income (expense)                              |   | $       | 14,632,155 |   |      |   | (285,486  | )            |   |   | 14,346,669 |   |
| Provision for loan losses                                  |   |    | 836,484    |   |      |   | -         |         |   |   | 836,484 |   |
| Net interest income (loss) after provision for loan losses |   |    | 13,795,671 |   |      |   | (285,486  | )            |   |   | 13,510,185 |   |
|                                                       |   |    |       |   |      |   |      |         |   |   |   |   |
| Noninterest income                                         |   |    | 5,419,585  |   |      |   | 5,383,639 |         |   |   | 10,803,224 |   |
| Noninterest expense                                        |   |    | 17,018,586 |   |      |   | 4,225,211 |         |   |   | 21,243,797 |   |
| Amortization of intangibles                                |   |    | -          |   |      |   | 610,657   |         |   |   | 610,657 |   |
| Income (loss) before income taxes                          |   |    | 2,196,670  |   |      |   | 262,285   |         |   |   | 2,458,955 |   |
| Income tax expense (benefit)                               |   |    | 440,545    |   |      |   | 87,121    |         |   |   | 527,666 |   |
| Net income (loss)                                          |   | $       | 1,756,125  |   |      |   | 175,164   |         |   |   | 1,931,289 |   |

| Affiliated Trusts    |   | TrustPreferredSecurities |       |   | CommonSecurities |   |    | JuniorSubordinatedDebentures |   |   | InterestRate |   | Maturity Date  |
|-------------------------------------|--------|--------------------------|------------|--------|------------------|--------|---------|------------------------------|--------|--------|--------------|--------|---------------------|
| NBN  Capital Trust II     |   | $                        | 3,000,000  |   |             |   | 93,000  |                         |   |   | 3,093,000    |   |                |   | 3.33 | % | March 30, 2034  |
| NBN  Capital Trust III    |   |                     | 3,000,000  |   |             |   | 93,000  |                         |   |   | 3,093,000    |   |                |   | 3.33 | % | March 30, 2034  |
| NBN  Capital Trust IV     |   |                     | 10,000,000 |   |             |   | 310,000 |                         |   |   | 10,310,000   |   |                |   | 2.37 | % | February 23, 2035  |
|      Total |   | $                        | 16,000,000 |   |             |   | 496,000 |                         |   |   | 16,496,000   |   |                |   | 2.73 | % |   |

|                                                   |   | Fair Value Measurements at Reporting Date Using: |          |
|--------------------------------------------------------|--------|--------------------------------------------------|---------------|
|    June 30, 2010:                       |   |   Total                                |          |   | Quoted Prices inActive Markets forIdentical AssetsLevel 1 |   |   | SignificantOther ObservableInputsLevel 2 |   |   | SignificantUnobservableInputsLevel 3 |   |
| Securities available-for-sale                          |   | $                                                | 164,187,702   |   |   |   | 3,717,196 |   |   |   | 160,470,506 |   |   |   | - |   |
| Other assets – purchased interest rate caps |   |                                             |  113,586 |   |   |   |  - |   |   |   |  113,586 |   |   |   |  - |   |

|                                        |   | Fair Value Measurements at Reporting Date Using: |        |
|---------------------------------------------|--------|--------------------------------------------------|-------------|
|    June  30, 2009: |   |   Total                                |        |   | Quoted Prices inActive Markets forIdentical AssetsLevel 1 |   |   | SignificantOther ObservableInputsLevel 2 |   |   | SignificantUnobservableInputsLevel 3 |   |
| Securities available-for-sale               |   | $                                                | 148,410,140 |   |   |   | 1,454,690 |   |   |   | 146,955,450 |   |   |   | - |   |

|                             |   | Fair Value Measurements at Reporting Date Using: |      |
|----------------------------------|--------|--------------------------------------------------|-----------|
|    June 30, 2010: |   |   Total                                |      |   | Quoted Prices inActive Markets forIdentical AssetsLevel 1 |   |   | SignificantOther ObservableInputsLevel 2 |   |   | SignificantUnobservableInputsLevel 3 |   |
| Impaired Loans                   |   | $                                                | 1,019,562 |   |   |   | - |   |   |   | - |   |   |   | 1,019,562 |   |
| Acquired assets                  |   |                                             | 500,956   |   |   |   | - |   |   |   | - |   |   |   | 500,956 |   |
| Premises                         |   |                                             | 407,121   |   |   |   |   |   |   |   |   |   |   |   | 407,121 |   |

|                             |   | Fair Value Measurements at Reporting Date Using: |      |
|----------------------------------|--------|--------------------------------------------------|-----------|
|    June 30, 2009: |   |   Total                                |      |   | Quoted Prices inActive Markets forIdentical AssetsLevel 1 |   |   | SignificantOther ObservableInputsLevel 2 |   |   | SignificantUnobservableInputsLevel 3 |   |
| Impaired Loans                   |   | $                                                | 1,708,330 |   |   |   | - |   |   |   | 512,645 |   |   |   | 1,195,685 |   |

|                                       |   | 2010   |      |   | 2009   |   |
|--------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Beginning balance at July 1                |   | $      | 1,195,685 |   |   |   | 971,405 |   |
| Loans transferred in and/or out of Level 3 |   |   | (176,123  | )      |   |   | 224,280 |   |
| Ending balance at June 30                  |   | $      | 1,019,562 |   |   |   | 1,195,685 |   |

|                                       |   | 2010   |    |
|--------------------------------------------|--------|--------|---------|
| Beginning balance at July 1                |   | $      | -       |   |
| Loans transferred in and/or out of Level 3 |   |   | 500,956 |   |
| Ending balance at June 30                  |   | $      | 500,956 |   |

|                        |   | 2010   |    |
|-----------------------------|--------|--------|---------|
| Beginning balance at July 1 |   | $      | -       |   |
| Premises transferred in     |   |   | 407,121 |   |
| Ending balance at June 30   |   | $      | 407,121 |   |

|                                            |   | Fair Value Measurements at Reporting Date Using: |    |
|-------------------------------------------------|--------|--------------------------------------------------|---------|
|    June 30, 2010:                |   |   Total                                |    |   | Quoted Prices inActive Markets forIdentical AssetsLevel 1 |   |   | SignificantOther ObservableInputsLevel 2 |   |   | SignificantUnobservableInputsLevel 3 |   |
| Derivative financial  instruments (1) |   | $                                                | 412,588 |   |   |   | - |   |   |   | - |   |   |   | 412,588 |   |

| (1) included in Other Assets in the consolidated balance sheet |
|----------------------------------------------------------------|

|                        |   | 2010   |    |
|-----------------------------|--------|--------|---------|
| Beginning balance at July 1 |   | $      | -       |   |
| Transferred in              |   |   | 412,588 |   |
| Ending balance at June 30   |   | $      | 412,588 |   |

|                                                            |   | June 30, 2010          |    |   | June 30, 2009       |   |
|-----------------------------------------------------------------|--------|------------------------|---------|--------|---------------------|--------|
|                                                            |   | Carrying Value    |    |   | EstimatedFair Value |   |   | Carrying Value |   |   | EstimatedFair Value |   |
|                                                            |   | (Dollars in Thousands) |    |
| Financial assets:                                               |   |                   |    |   |                |   |   |   |   |   |   |   |
| Cash and cash equivalents                                       |   | $                      | 20,436  |   |                |   | 20,436 |   |   |   | 13,023 |   |   |   | 13,023 |   |
| Available-for-sale securities                                   |   |                   | 164,188 |   |                |   | 164,188 |   |   |   | 148,410 |   |   |   | 148,410 |   |
| Regulatory stock (FHLB and FRB)                                 |   |                   | 5,486   |   |                |   | 5,486 |   |   |   | 5,486 |   |   |   | 5,486 |   |
| Loans held-for-sale                                             |   |                   | 14,254  |   |                |   | 14,289 |   |   |   | 2,437 |   |   |   | 2,444 |   |
| Loans, net                                                      |   |                   | 376,503 |   |                |   | 387,008 |   |   |   | 387,887 |   |   |   | 396,113 |   |
| Accrued interest receivable                                     |   |                   | 2,081   |   |                |   | 2,081 |   |   |   | 2,200 |   |   |   | 2,200 |   |
| Other assets – purchased interest rate caps               |   |                   | 114     |   |                |   | 114 |   |   |   | - |   |   |   | - |   |
|                                                            |   |                   |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                                          |   |                   |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Deposits (with no stated maturity)                              |   |                   | 179,846 |   |                |   | 179,846 |   |   |   | 134,822 |   |   |   | 134,822 |   |
| Time deposits                                                   |   |                   | 204,351 |   |                |   | 209,756 |   |   |   | 250,564 |   |   |   | 254,134 |   |
| Federal Home Loan Bank advances                                 |   |                   | 50,500  |   |                |   | 53,907 |   |   |   | 40,815 |   |   |   | 43,151 |   |
| Structured repurchase agreements                                |   |                   | 65,000  |   |                |   | 70,897 |   |   |   | 65,000 |   |   |   | 70,121 |   |
| Other borrowings                                                |   |                   | 2,630   |   |                |   | 2,801 |   |   |   | 3,264 |   |   |   | 3,264 |   |
| Short-term borrowings                                           |   |                   | 46,168  |   |                |   | 46,168 |   |   |   | 34,435 |   |   |   | 34,435 |   |
| Capital lease obligation                                        |   |                   | 2,231   |   |                |   | 2,481 |   |   |   | 2,379 |   |   |   | 2,517 |   |
| Junior subordinated debentures issued to affiliated trusts |   |                   | 16,496  |   |                |   | 6,765 |   |   |   | 16,496 |   |   |   | 10,158 |   |
| Other liabilities – interest rate swaps (1)               |   |                   | 413     |   |                |   | 413 |   |   |   | - |   |   |   | - |   |

|                               |   | Interest Rate Caps |      |   | Interest Rate Swap |   |
|------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
| Notional amount                    |   | $                  | 6,000,000 |   |               |   | 10,000,000 |   |
| Weighted average pay rate          |   |               |      |   |               |   | 4.69 | % |
| Weighted average receive rate      |   |               |      |   |               |   | 2.14 | % |
| Strike rate based on 3 month LIBOR |   |               | 2.505     | %      |               |   |   |   |
| Weighted average maturity in years |   |               | 4.25      |   |               |   | 4.65 |   |
| Unrealized losses                  |   | $                  | 210,941   |   |               |   | 412,588 |   |

| June 30, 2010                                                           | Asset Derivatives      |
|-------------------------------------------------------------------------|------------------------|
| Derivatives designated as hedging  instruments under ASC 815: |
|                                                                    | Balance Sheet Location | Fair Value |
| Interest Rate Contracts                                                 | Other Assets           | $  (299,002) |

Item 8.b.

| Table 1                                                      |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|--------|---------------|--------|--------|---------|--------|--------|----------|---------|--------|---------|--------|--------|---------|--------|
| Northeast Bancorp Consolidated                               |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |
| Distribution of Assets, Liabilities and Stockholders' Equity |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |
| Interest Rates and Interest Differential                     |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |
| Years Ended June 30, 2010, 2009 and 2008                     |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |
| ($ in thousands)                                             |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   | June 30, 2010 |    |   | June 30, 2009 |   |   | June 30, 2008 |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   | Average       |    |   | Interest      |   |   | Average       |   |   | Average |   |   | Interest |    |   | Average |   |   | Average |   |   | Interest |   |  Average |   |
|                                                         |                                                                                                                                             |   | Daily         |    |   | Income/       |   |   | Yield/        |   |   | Daily   |   |   | Income/  |    |   | Yield/  |   |   | Daily   |   |   | Income/ |   |   | Yield/ |   |
|                                                         |                                                                                                                                             |   | Balance       |    |   | Expense       |   |   | Rate          |   |   | Balance |   |   | Expense  |    |   | Rate    |   |   | Balance |   |   | Expense |   |   | Rate |   |
| Assets:                                                      |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |
| Interest-earning assets:                                     |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |
|                                                         | Investment securities (1)                                                                                                                        |   | $             | 163,601 |   |          | $      | 7,623  |          |   |   | 4.66    | %      |   | $        | 152,051 |   |    | $      | 7,922  |    |   |   | 5.21 | % |   | $ | 116,558 |   |   | $ | 5,906 |   |   |   | 5.07 | % |
|                                                         | Loans (2)(3)(4)                                                                                                                                  |   |          | 392,398 |   |          |   | 23,803 |          |   |   | 6.07    | %      |   |     | 405,611 |   |    |   | 25,888 |    |   |   | 6.38 | % |   |   | 414,837 |   |   |   | 29,272 |   |   |   | 7.06 | % |
|                                                         | Regulatory stock                                                                                                                                 |   |          | 5,486   |   |          |   | 36     |          |   |   | 0.66    | %      |   |     | 5,392   |   |    |   | 98     |    |   |   | 1.82 | % |   |   | 5,316 |   |   |   | 307 |   |   |   | 5.78 | % |
|                                                         | Short-term investments (5)                                                                                                                       |   |          | 8,761   |   |          |   | 12     |          |   |   | 0.14    | %      |   |     | 5,162   |   |    |   | 62     |    |   |   | 1.20 | % |   |   | 2,791 |   |   |   | 113 |   |   |   | 4.05 | % |
| Total interest-earning assets/interest                       |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income/average rates earned                                  |                                                                                                                                             |   | 570,246       |    |   |          | 31,474 |   |          |   | 5.52   | %       |   |   | 568,216  |    |   |    | 33,970 |   |    |   | 5.98 | % |   |   | 539,502 |   |   |   | 35,598 |   |   |   | 6.60 | % |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest earning assets:                                 |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | Cash & due from banks                                                                                                                        |   |          | 5,967   |   |          |   |   |          |   |   |    |   |   |     | 6,231   |   |    |   |   |    |   |   |   |   |   |   | 6,498 |   |   |   |   |   |   |   |   |   |
|                                                         | Bank premises and equipment, net                                                                                                                 |   |          | 8,592   |   |          |   |   |          |   |   |    |   |   |     | 9,010   |   |    |   |   |    |   |   |   |   |   |   | 7,851 |   |   |   |   |   |   |   |   |   |
|                                                         | Other assets                                                                                                                                     |   |          | 32,575  |   |          |   |   |          |   |   |    |   |   |     | 31,616  |   |    |   |   |    |   |   |   |   |   |   | 29,504 |   |   |   |   |   |   |   |   |   |
|                                                         | Allowance for loan losses                                                                                                                        |   |          | (5,915  | )      |          |   |   |          |   |   |    |   |   |     | (5,761  | )      |    |   |   |    |   |   |   |   |   |   | (5,768 | ) |   |   |   |   |   |   |   |   |
| Total non-interest earning assets                            |                                                                                                                                             |   | 41,219        |    |   |          |   |   |          |   |   |    |   |   | 41,096   |    |   |    |   |   |    |   |   |   |   |   | 38,085 |   |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                 |                                                                                                                                             | $      | 611,465       |    |   |          |   |   |          |   |   |    |   | $      | 609,312  |    |   |    |   |   |    |   |   |   |   | $ | 577,587 |   |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities & Stockholders' Equity:                      |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   NOW                                                                                                                                  |   | $             | 48,271  |   |          | $      | 379    |          |   |   | 0.79    | %      |   | $        | 45,814  |   |    | $      | 454    |    |   |   | 0.99 | % |   | $ | 51,139 |   |   | $ | 1,020 |   |   |   | 1.99 | % |
|                                                         |   Money market                                                                                                                         |   |          | 43,974  |   |          |   | 532    |          |   |   | 1.21    | %      |   |     | 29,021  |   |    |   | 544    |    |   |   | 1.87 | % |   |   | 13,784 |   |   |   | 420 |   |   |   | 3.05 | % |
|                                                         |   Savings                                                                                                                              |   |          | 29,366  |   |          |   | 181    |          |   |   | 0.62    | %      |   |     | 19,515  |   |    |   | 69     |    |   |   | 0.36 | % |   |   | 20,398 |   |   |   | 160 |   |   |   | 0.79 | % |
|                                                         |   Time                                                                                                                                 |   |          | 224,399 |   |          |   | 6,023  |          |   |   | 2.68    | %      |   |     | 240,371 |   |    |   | 8,301  |    |   |   | 3.45 | % |   |   | 243,437 |   |   |   | 11,490 |   |   |   | 4.72 | % |
|                                                         |     Total interest-bearing deposits                                                                                          |   |          | 346,010 |   |          |   | 7,115  |          |   |   | 2.06    | %      |   |     | 334,721 |   |    |   | 9,368  |    |   |   | 2.80 | % |   |   | 328,758 |   |   |   | 13,090 |   |   |   | 3.98 | % |
|                                                         | Short-term borrowings (6)                                                                                                                        |   |          | 42,940  |   |          |   | 655    |          |   |   | 1.53    | %      |   |     | 36,412  |   |    |   | 718    |    |   |   | 1.97 | % |   |   | 34,449 |   |   |   | 1,244 |   |   |   | 3.61 | % |
|                                                         | Borrowed funds                                                                                                                                   |   |          | 119,002 |   |          |   | 4,984  |          |   |   | 4.19    | %      |   |     | 138,670 |   |    |   | 5,935  |    |   |   | 4.28 | % |   |   | 119,423 |   |   |   | 5,652 |   |   |   | 4.73 | % |
|                                                         | Junior subordinated debentures                                                                                                                   |   |          | 16,496  |   |          |   | 759    |          |   |   | 4.60    | %      |   |     | 16,496  |   |    |   | 959    |    |   |   | 5.81 | % |   |   | 16,496 |   |   |   | 1,065 |   |   |   | 6.46 | % |
| Total interest-bearing liabilities/                          |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest expense/average rates paid                          |                                                                                                                                             |   | 524,448       |    |   |          | 13,513 |   |          |   | 2.58   | %       |   |   | 526,299  |    |   |    | 16,980 |   |    |   | 3.23 | % |   |   | 499,126 |   |   |   | 21,051 |   |   |   | 4.22 | % |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing liabilities:                            |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | Demand deposits and escrow accounts                                                                                                              |   |          | 34,186  |   |          |   |   |          |   |   |    |   |   |     | 33,616  |   |    |   |   |    |   |   |   |   |   |   | 33,317 |   |   |   |   |   |   |   |   |   |
|                                                         | Other liabilities                                                                                                                                |   |          | 3,332   |   |          |   |   |          |   |   |    |   |   |     | 4,601   |   |    |   |   |    |   |   |   |   |   |   | 3,396 |   |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                            |                                                                                                                                             |   | 561,966       |    |   |          |   |   |          |   |   |    |   |   | 564,516  |    |   |    |   |   |    |   |   |   |   |   | 535,839 |   |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | Stockholders' equity                                                                                                                             |   |          | 49,499  |   |          |   |   |          |   |   |    |   |   |     | 44,796  |   |    |   |   |    |   |   |   |   |   |   | 41,748 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                   |                                                                                                                                             | $      | 611,465       |    |   |          |   |   |          |   |   |    |   | $      | 609,312  |    |   |    |   |   |    |   |   |   |   | $ | 577,587 |   |   |   |   |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |    Net interest income                                                                                                            |   |          |    |   |          | $      | 17,961 |          |   |   |    |   |   |     |    |   |    | $      | 16,990 |    |   |   |   |   |   |   |   |   |   | $ | 14,547 |   |   |   |   |   |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   | 2.94   | %       |   |   |     |    |   |    |   |   |    |   | 2.75 | % |   |   |   |   |   |   |   |   |   |   | 2.38 | % |
| Net yield on interest earning assets (7)                     |                                                                                                                                             |   |          |    |   |          |   |   |          |   | 3.15   | %       |   |   |     |    |   |    |   |   |    |   | 2.99 | % |   |   |   |   |   |   |   |   |   |   | 2.70 | % |
|                                                         |                                                                                                                                             |   |          |    |   |          |   |   |          |   |   |    |   |   |     |    |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                                                          |  The yield information does not give effect to changes in fair value that are reflected as a component of stockholders' equity.             |   |
|                                                         |  Interest income and yield are stated on a fully tax-equivalent basis using a 30.84% tax rate.                                              |   |
| (2)                                                          |  Non-accruing loans are included in computation of average balance, but unpaid interest on                                                  |   |
|                                                         |  nonperforming loans has not been included for purposes of determining interest income.                                                     |   |
| (3)                                                          |  Interest income on loans includes amortization of net deferred costs of $ 617 in fiscal 2010, $871 in fiscal 2009 and $980 in fiscal 2008. |
| (4)                                                          |  Includes Loans Held for Sale.                                                                                                              |   |
| (5)                                                          |  Short term investments include FHLB overnight deposits and other interest-bearing deposits.                                                |   |
| (6)                                                          |  Short-term borrowings include securities sold under repurchase agreement and sweep accounts.                                               |   |
| (7)                                                          |  The net yield on interest-earning assets is net interest income divided by total interest-earning assets.                                  |   |

| Table 2                                    |                                                                                                                  |   |           |   |   |   |    |   |   |
|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------|---------|--------|--------|
| Northeast Bancorp Consolidated             |                                                                                                                  |   |           |   |   |   |    |   |   |
| Investment Securities Portfolio            |                                                                                                                  |   |           |   |   |   |    |   |   |
| ($ in thousands)                           |                                                                                                                  |   |           |   |   |   |    |   |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |
|                                       |                                                                                                                  |   | As of June 30, |   |
|                                       |                                                                                                                  |   | 2010           |   |   | 2009   |    |   | 2008   |   |
| Available-for-sale (1)                     |                                                                                                                  |   |           |   |   |   |    |   |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |
| Debt securities issued by U.S. Government- |                                                                                                                  |   |           |   |   |   |    |   |   |
|                                       | sponsored enterprises                                                                                                 |   | $              | 8,649  |   |   | $       | 9,029  |   |   | $ | 1,313 |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| Mortgage-backed securities                 |                                                                                                                  |   | 133,862        |   |   |   | 124,905 |   |   |   | 119,600 |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| Municipal bonds                            |                                                                                                                  |   | 12,007         |   |   |   | 11,530  |   |   |   | 11,112 |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| Corporate bonds                            |                                                                                                                  |   | 1,030          |   |   |   | 1,492   |   |   |   | 482 |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| Collateralized Mortgage Obligation         |                                                                                                                  |   | 7,423          |   |   |   | -       |   |   |   | - |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| Trust preferred securities                 |                                                                                                                  |   | 441            |   |   |   | 411     |   |   |   | 590 |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| Equity securities                          |                                                                                                                  |   | 776            |   |   |   | 1,043   |   |   |   | 1,386 |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| Total available-for-sale (2):              |                                                                                                                  | $      | 164,188        |   |   | $      | 148,410 |   |   | $ | 134,483 |   |
|                                       |                                                                                                                  |   |           |   |   |   |    |   |   |   |   |   |   |
| (1)                                        |  Carried at estimated fair value. Northeast Bancorp does not have any securities classified as held-to-maturity. |   |
| (2)                                        |  Cost of such securities ($ in thousands) was $156,979 as of June 30, 2010, $146,211 as of June 30, 2009,        |   |
|                                       |  and $136,459 as of June 30, 2008 .                                                                              |   |

| Table 3                                 |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |
|-----------------------------------------|--------|-----------------|--------|--------|---------|--------|--------|----------------|--------|--------|------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|
| Northeast Bancorp Consolidated          |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |
| Investment Maturity at Fair Value       |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |
| ($ in thousands)                        |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |
|                                    |   |            |   |   |    |   |   | After One Year |   |   | After Five Years |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |            |   |   |    |   |   | But Within     |   |   | But Within       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   | Within One Year |   |   | 5 Years |   |   | 10 Years       |   |   | After 10 Years   |   |   | Total  |   |
|                                    |   | Amount          |   |   | Yield   |   |   | Amount         |   |   | Yield            |   |   | Amount |   |   | Yield  |   |   | Amount |   |   | Yield  |   |   | Amount |    |   | Yield  |   |
| As of June 30, 2010                     |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |
| U. S. Government sponsored enterprises  |   | $               | -      |   |    |   | 0.00   | %              |   | $      | 5,012            |   |   |   | 1.50   | %      |   | $      | 2,636  |   |   |   | 3.00   | %      |   | $      | 1,001   |   |   |   | 5.03 | % |   | $ | 8,649 |   |   |   | 2.37 | % |
| Mortgage-backed securities              |   |            | 161    |   |    |   | 4.79   | %              |   |   | 7,569            |   |   |   | 4.21   | %      |   |   | 12,559 |   |   |   | 5.01   | %      |   |   | 113,573 |   |   |   | 4.79 | % |   |   | 133,862 |   |   |   | 4.78 | % |
| Municipal bonds (Tax equivalent yields) |   |            | -      |   |    |   | 0.00   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | 2,168  |   |   |   | 5.84   | %      |   |   | 9,839   |   |   |   | 5.82 | % |   |   | 12,007 |   |   |   | 5.82 | % |
| Corporate bonds                         |   |            | 1,030  |   |    |   | 6.34   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | -       |   |   |   | 0.00 | % |   |   | 1,030 |   |   |   | 6.34 | % |
| Collateralized Mortgage Obligation      |   |            | -      |   |    |   | 0.00   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | 7,423   |   |   |   | 4.43 | % |   |   | 7,423 |   |   |   | 4.43 | % |
| Trust preferred securities              |   |            | -      |   |    |   | 0.00   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | 441     |   |   |   | 6.12 | % |   |   | 441 |   |   |   | 6.12 | % |
| Equity securities                       |   |            | 776    |   |    |   | 3.37   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | -       |   |   |   | 0.00 | % |   |   | 776 |   |   |   | 3.37 | % |
|                                    |   | $               | 1,967  |   |    |   | 5.04   | %              |   | $      | 12,581           |   |   |   | 3.13   | %      |   | $      | 17,363 |   |   |   | 4.81   | %      |   | $      | 132,277 |   |   |   | 4.58 | % |   | $ | 164,188 |   |   |   | 4.50 | % |
|                                    |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of June 30, 2009                     |   |            |   |   |    |   |   |           |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Government sponsored enterprises  |   | $               | -      |   |    |   | 0.00   | %              |   | $      | 8,081            |   |   |   | 2.84   | %      |   | $      | -      |   |   |   | 0.00   | %      |   | $      | 948     |   |   |   | 5.04 | % |   | $ | 9,029 |   |   |   | 3.07 | % |
| Mortgage-backed securities              |   |            | 224    |   |    |   | 4.82   | %              |   |   | 7,452            |   |   |   | 4.10   | %      |   |   | 8,904  |   |   |   | 4.56   | %      |   |   | 108,325 |   |   |   | 5.26 | % |   |   | 124,905 |   |   |   | 5.14 | % |
| Municipal bonds (Tax equivalent yields) |   |            | -      |   |    |   | 0.00   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | 11,530  |   |   |   | 5.88 | % |   |   | 11,530 |   |   |   | 5.88 | % |
| Corporate bonds                         |   |            | 489    |   |    |   | 4.05   | %              |   |   | 1,003            |   |   |   | 6.40   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | -       |   |   |   | 0.00 | % |   |   | 1,492 |   |   |   | 5.63 | % |
| Trust preferred securities              |   |            | -      |   |    |   | 0.00   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | 411     |   |   |   | 8.00 | % |   |   | 411 |   |   |   | 8.00 | % |
| Equity securities                       |   |            | 1,043  |   |    |   | 3.58   | %              |   |   | -                |   |   |   | 0.00   | %      |   |   | -      |   |   |   | 0.00   | %      |   |   | -       |   |   |   | 0.00 | % |   |   | 1,043 |   |   |   | 3.58 | % |
|                                    |   | $               | 1,756  |   |    |   | 3.87   | %              |   | $      | 16,536           |   |   |   | 3.63   | %      |   | $      | 8,904  |   |   |   | 4.56   | %      |   | $      | 121,214 |   |   |   | 5.30 | % |   | $ | 148,410 |   |   |   | 5.05 | % |

| Table 4                        |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |
|--------------------------------|--------|---------------|---------|--------|---------------|--------|--------|---------------|--------|---------------|-------------|--------|---------------|--------|--------|--------|-------------|--------|---------|--------|--------|--------|-------------|--------|--------|--------|---------|--------|-------------|--------|
| Northeast Bancorp Consolidated |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |
| Loan Portfolio                 |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |
| ($ in thousands)               |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |
|                           |   |          |    |
| As of                          |   | June 30, 2010 |    |   | June 30, 2009 |   |   | June 30, 2008 |   | June 30, 2007 |        |   | June 30, 2006 |   |
|                           |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |
|                           |   |          |    |   | Percent of    |   |   |          |   |          | Percent of  |   |          |   |   |   | Percent of  |   |    |   |   |   | Percent of  |   |   |   |    |   | Percent of  |   |
|                           |   | Amount        |    |   | Total Loans   |   |   | Amount        |   |          | Total Loans |   |          | Amount |   |   | Total Loans |   |    | Amount |   |   | Total Loans |   |   | Amount |    |   | Total Loans |   |
|                           |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |
| Loan portfolio:                |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |
|                           |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |
| Residential real estate        |   | $             | 155,499 |   |          |   | 40.81  | %             |   | $             | 138,790     |   |          |   | 35.43  | %      |        | $      | 140,244 |   |   |   | 34.49       | %      |   | $      | 145,184 |   |        |   | 34.34 | % |   | $ | 149,100 |   |   |   | 34.44 | % |
| Commercial real estate         |   |          | 121,385 |   |          |   | 31.86  | %             |   |          | 120,890     |   |          |   | 30.87  | %      |        |   | 111,223 |   |   |   | 27.36       | %      |   |   | 112,535 |   |        |   | 26.61 | % |   |   | 115,327 |   |   |   | 26.63 | % |
| Construction                   |   |          | 5,524   |   |          |   | 1.45   | %             |   |          | 6,384       |   |          |   | 1.63   | %      |        |   | 4,537   |   |   |   | 1.12        | %      |   |   | 5,451   |   |        |   | 1.29 | % |   |   | 5,106 |   |   |   | 1.18 | % |
| Commercial                     |   |          | 30,139  |   |          |   | 7.91   | %             |   |          | 29,137      |   |          |   | 7.44   | %      |        |   | 33,516  |   |   |   | 8.24        | %      |   |   | 40,784  |   |        |   | 9.64 | % |   |   | 50,262 |   |   |   | 11.61 | % |
| Consumer and other             |   |          | 68,489  |   |          |   | 17.97  | %             |   |          | 96,465      |   |          |   | 24.63  | %      |        |   | 117,047 |   |   |   | 28.79       | %      |   |   | 118,881 |   |        |   | 28.12 | % |   |   | 113,192 |   |   |   | 26.14 | % |
|                           |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Total loans                    |   |          | 381,036 |   |          |   | 100.00 | %             |   |          | 391,666     |   |          |   | 100.00 | %      |        |   | 406,567 |   |   |   | 100.00      | %      |   |   | 422,835 |   |        |   | 100.00 | % |   |   | 432,987 |   |   |   | 100.00 | % |
|                           |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net deferred loan costs        |   |          | 1,273   |   |          |   |   |          |   |          | 1,985       |   |          |   |   |   |        |   | 2,627   |   |   |   |        |   |   |   | 2,736   |   |        |   |   |   |   |   | 2,676 |   |   |   |   |   |
| Less:                          |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses      |   |          | 5,806   |   |          |   |   |          |   |          | 5,764       |   |          |   |   |   |        |   | 5,656   |   |   |   |        |   |   |   | 5,756   |   |        |   |   |   |   |   | 5,496 |   |   |   |   |   |
|                           |   |          |    |   |          |   |   |          |   |          |        |   |          |   |   |   |        |   |    |   |   |   |        |   |   |   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net loans                      |   | $             | 376,503 |   |          |   |   |          |   | $             | 387,887     |   |          |   |   |   |        | $      | 403,538 |   |   |   |        |   |   | $      | 419,815 |   |        |   |   |   |   | $ | 430,167 |   |   |   |   |   |

| Table 5                                                                                               |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |
|-------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|--------|--------|---------|---------|--------|--------|---------|--------|--------|--------|--------|
| Northeast Bancorp Consolidated                                                                        |   |    |    |   |   |   |    |    |   |   |    |   |   |
| Maturities and Repricing of Loans                                                                     |   |    |    |   |   |   |    |    |   |   |
| As of June 30, 2010                                                                                   |   |    |    |   |   |   |    |    |   |   |    |   |   |
| ($ in thousands)                                                                                      |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |
|                                                                                                  |   | 1 Year  |    |   | 1 to 5 |   |    | 5 to 10 |   |   | Over 10 |   |   | Total  |   |
|                                                                                                  |   | or Less |    |   | Years  |   |    | Years   |   |   | Years   |   |   | Loans  |   |
| Mortgages:                                                                                            |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |
| Residential                                                                                           |   | $       | 47,624  |   |   | $      | 23,483  |    |   | $      | 12,742  |   |   | $      | 71,650 |   |   | $ | 155,499 |   |
| Commercial                                                                                            |   |    | 41,954  |   |   |   | 73,099  |    |   |   | 5,447   |   |   |   | 885    |   |   |   | 121,385 |   |
| Construction                                                                                          |   |    | 4,891   |   |   |   | 633     |    |   |   | -       |   |   |   | -      |   |   |   | 5,524 |   |
|                                                                                                  |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Non-mortgage loans:                                                                                   |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                            |   |    | 20,089  |   |   |   | 9,376   |    |   |   | 674     |   |   |   | -      |   |   |   | 30,139 |   |
| Consumer and other                                                                                    |   |    | 1,333   |   |   |   | 20,687  |    |   |   | 20,480  |   |   |   | 25,989 |   |   |   | 68,489 |   |
|                                                                                                  |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Total loans                                                                                           |   | $       | 115,891 |   |   | $      | 127,278 |    |   | $      | 39,343  |   |   | $      | 98,524 |   |   | $ | 381,036 |   |
|                                                                                                  |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Type of interest rate:                                                                                |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Predetermined rate, maturity                                                                          |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| greater than 1 year                                                                                   |   | $       | 170,874 |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Floating or adjustable rate                                                                           |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| due after one year                                                                                    |   |    | 94,271  |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Total due after 1 year:                                                                               |   | $       | 265,145 |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |    |    |   |   |   |    |    |   |   |    |   |   |   |   |   |   |   |   |   |
| Scheduled repayments are reported in the maturity category in which the payment is due. Demand   |   |
| loans and overdrafts are reported in one year or less. Maturities are based upon contract terms. |   |

| Table 6                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|---------|------------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------------|---------|
| Northeast Bancorp Consolidated                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |
| Summary of Loan Losses Experience                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |
| ($ in thousands)                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |
| As of or For Years Ended June 30,                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2010           |                                                                                                                                                                                                                                                                                                                          |   | 2009      |   |    | 2008      |   |   | 2007      |   |   | 2006      |    |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |
| Average net loans outstanding during the period (1)                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $                                       | 388,700                                                                                                                                                                                                                                                                                                                       |   |                               | $      | 404,124 |                               |   | $      | 413,794                            |   |   | $                                  | 432,539 |   |   | $ | 448,070 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Total loans at end of period (1)                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $                                       | 382,309                                                                                                                                                                                                                                                                                                                       |   |                               | $      | 393,651 |                               |   | $      | 409,194                            |   |   | $                                  | 425,571 |   |   | $ | 435,663 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Allowance at beginning of period                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $                                       | 5,764                                                                                                                                                                                                                                                                                                                         |   |                               | $      | 5,656   |                               |   | $      | 5,756                              |   |   | $                                  | 5,496   |   |   | $ | 5,104 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Loans charged-off during the period:                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Residential real estate                 |                                                                                                                                                                                                                                                                                                                          |   | 237                                |   |    |                               | 271    |   |                               |   | 70     |                               |    |   | 60 |   |   |   | 15 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Commercial real estate                  |                                                                                                                                                                                                                                                                                                                          |   | 412                                |   |    |                               | 257    |   |                               |   | 184    |                               |    |   | 6 |   |   |   | 35 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Commercial                              |                                                                                                                                                                                                                                                                                                                          |   | 509                                |   |    |                               | 285    |   |                               |   | 237    |                               |    |   | 251 |   |   |   | 326 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Consumer and other                      |                                                                                                                                                                                                                                                                                                                          |   | 827                                |   |    |                               | 1,401  |   |                               |   | 632    |                               |    |   | 538 |   |   |   | 417 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Total loans charged-off                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | 1,985                                                                                                                                                                                                                                                                                                                         |   |                               |   | 2,214   |                               |   |   | 1,123                              |   |   |                               | 855     |   |   |   | 793 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Recoveries on loans previously charged-off:                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Residential real estate                 |                                                                                                                                                                                                                                                                                                                          |   | 34                                 |   |    |                               | 3      |   |                               |   | 0      |                               |    |   | 1 |   |   |   | 1 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Commercial real estate                  |                                                                                                                                                                                                                                                                                                                          |   | 12                                 |   |    |                               | 49     |   |                               |   | 6      |                               |    |   | 26 |   |   |   | 25 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Commercial                              |                                                                                                                                                                                                                                                                                                                          |   | 23                                 |   |    |                               | 77     |   |                               |   | 134    |                               |    |   | 4 |   |   |   | 6 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Consumer and other                      |                                                                                                                                                                                                                                                                                                                          |   | 94                                 |   |    |                               | 93     |   |                               |   | 47     |                               |    |   | 95 |   |   |   | 131 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Total recoveries                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | 163                                                                                                                                                                                                                                                                                                                           |   |                               |   | 222     |                               |   |   | 187                                |   |   |                               | 126     |   |   |   | 163 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Net loans charged off during the period                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | 1,822                                                                                                                                                                                                                                                                                                                         |   |                               |   | 1,992   |                               |   |   | 936                                |   |   |                               | 729     |   |   |   | 630 |   |
| Provision for loan losses                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | 1,864                                                                                                                                                                                                                                                                                                                         |   |                               |   | 2,100   |                               |   |   | 836                                |   |   |                               | 989     |   |   |   | 1,226 |   |
| Reclassified to off-balance sheet credit risk reserve                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | 0                                                                                                                                                                                                                                                                                                                             |   |                               |   | 0       |                               |   |   | 0                                  |   |   |                               | 0       |   |   |   | (204 | ) |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Allowance at end of period                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $                                       | 5,806                                                                                                                                                                                                                                                                                                                         |   |                               | $      | 5,764   |                               |   | $      | 5,656                              |   |   | $                                  | 5,756   |   |   | $ | 5,496 |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Ratio of net charge-offs to average loans outstanding                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | 0.47                                                                                                                                                                                                                                                                                                                          | %      |                               |   | 0.49    | %                                  |   |   | 0.23                               | %      |   |                               | 0.17    | % |   |   | 0.14 | % |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Allowance as a percentage of total loans                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | 1.52                                                                                                                                                                                                                                                                                                                          | %      |                               |   | 1.46    | %                                  |   |   | 1.38                               | %      |   |                               | 1.35    | % |   |   | 1.26 | % |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
| Allowance as a percentage of                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | non-performing and nonaccrual loans (2) |                                                                                                                                                                                                                                                                                                                          |   | 65.67                              | %      |    |                               | 58.26  | %      |                               |   | 73.43  | %                                  |    |   | 113.08 | % |   |   | 105.79 | % |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |
|  (1)                                                                                                                                                                                                       | Excludes loans held for sale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |                               |   |    |                               |   |   |                               |   |   |                               |    |   |   |   |   |   |   |   |   |
|  (2)                                                                                                                                                                                                       | The decrease in non-performing loans in fiscal 2010 caused the allowance as a percentage of non-performing and nonaccrual loans to increase compared to fiscal 2009.  For fiscal 2009 and 2008, the increase in non-performing loans caused this same ratio to decrease compared to prior years. At June 30, 2010, non-performing and non-accrual loans totaled $8,841, compared to $9,894 at June 30, 2009. See Table 8 for additional information. The trend of the allowance as a percentage of non-performing and nonaccrual loans reflects the economic recession's impact on customers ability to make loan payments. We expect the current economic conditions to persist for another twelve months. A significant improvement in nonperforming and nonaccrual loans is unlikely until there is an improvement in economic conditions. |                                    |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    | The allowance for loan losses is believed to be adequate by management for any credit losses realized on the non-performing and nonaccrual loans at June 30, 2010. See Asset Quality - Nonperforming Loans under Management Dicussion and Analyis of Financial Conditiona and Results of Operation for more information. |   |
|                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                    |                                                                                                                                                                                                                                                                                                                          |   |
| For each period indicated, this table summarizes loans outstanding at the end of each period, the average amount of loans outstanding, changes in the allowance for loan losses, and other selected statistics. |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| Table 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|---------------------------------------------|---------------|--------|--------|---------------|---------------------------------------------|--------|---------------|--------|--------|---------------------------------------------|--------|--------|--------|--------|---------------------------------------------|--------|--------|--------|--------|---------------------------------------------|--------|
| Northeast Bancorp Consolidated                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |
| Allowance for Loan Losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |
| ($ in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |
| As of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | June 30, 2010 |   |                                        | June 30, 2009 |   |   | June 30, 2008 |                                        |   | June 30, 2007 |   |   | June 30, 2006                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Amount        |   | Percent ofLoansin EachCategorytoTotal Loans |          |   | Amount |          | Percent ofLoansin EachCategorytoTotal Loans |   |          | Amount |   | Percent ofLoansin EachCategorytoTotal Loans |   |   | Amount |   | Percent ofLoansin EachCategorytoTotal Loans |   |   | Amount |   | Percent ofLoansin EachCategorytoTotal Loans |   |
| Allocation of allowance for loan losses:                                                                                                                                                                                                                                                                                                                                                                                                                                                    |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |
| Residential real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $             | 1,564  |                                        |          | 40.81  | %      |          | $                                           | 1,083  |          |   | 35.43  | %                                           |   | $      | 1,343  |   |                                        | 34.49  | %      |   | $      | 808                                         |   |   | 34.34 | % |   | $ | 672 |   |   | 34.44 | % |
| Commercial real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          | 1,412  |                                        |          | 31.86  | %      |          |                                        | 1,769  |          |   | 30.87  | %                                           |   |   | 1,530  |   |                                        | 27.36  | %      |   |   | 2,000                                       |   |   | 26.61 | % |   |   | 2,156 |   |   | 26.63 | % |
| Construction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |          | 50     |                                        |          | 1.45   | %      |          |                                        | 50     |          |   | 1.63   | %                                           |   |   | 81     |   |                                        | 1.12   | %      |   |   | 64                                          |   |   | 1.29 | % |   |   | 56 |   |   | 1.18 | % |
| Commercial                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          | 1,051  |                                        |          | 7.91   | %      |          |                                        | 819    |          |   | 7.44   | %                                           |   |   | 940    |   |                                        | 8.24   | %      |   |   | 1,042                                       |   |   | 9.64 | % |   |   | 1,037 |   |   | 11.61 | % |
| Consumer and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          | 1,462  |                                        |          | 17.97  | %      |          |                                        | 2,043  |          |   | 24.63  | %                                           |   |   | 1,654  |   |                                        | 28.79  | %      |   |   | 1,667                                       |   |   | 28.12 | % |   |   | 1,470 |   |   | 26.14 | % |
| Unallocated                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |          | 267    |                                        |          | 0.00   | %      |          |                                        | 0      |          |   | 0.00   | %                                           |   |   | 108    |   |                                        | 0.00   | %      |   |   | 175                                         |   |   | 0.00 | % |   |   | 105 |   |   | 0.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $             | 5,806  |                                        |          | 100.00 | %      |          | $                                           | 5,764  |          |   | 100.00 | %                                           |   | $      | 5,656  |   |                                        | 100.00 | %      |   | $      | 5,756                                       |   |   | 100.00 | % |   | $ | 5,496 |   |   | 100.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| This table shows how the allowance for loan losses was allocated for the periods indicated.                                                                                                                                                                                                                                                                                                                                                                                                 |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |          |   |                                        |          |   |   |          |                                        |   |          |   |   |                                        |   |   |   |   |                                        |   |   |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| The allowance for loan losses is established through a provision for loan losses charged to operations. Loan losses are charged against the allowance when management believes that the collectibility of the loan principal is unlikely. Recoveries on loans previously charged off are credited to the allowance.                                                                                                                                                                         |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |          |
| The allowance is an amount that management believes will be adequate to absorb probable loan losses based on evaluations of collectibility and prior loss experience. The evaluation takes into consideration such factors as changes in the nature and volume of the portfolio, overall portfolio quality, specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. Management also obtains collateral appraisals when considered necessary. |          |

| Table 8                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Northeast Bancorp Consolidated                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing Loans                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |
| ($ in thousands)                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   | As of June 30, |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   | 2010           |   |   | 2009   |   |   | 2008   |   |   | 2007   |   |   | 2006 |   |
| Nonaccrual loans:                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Residential real estate (1) |   | $              | 2,769  |   |   | $      | 1,620  |   |   | $      | 1,390  |   |   | $ | 439 |   |   | $ | 521 |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Construction loans          |   |           | -      |   |   |   | -      |   |   |   | 101    |   |   |   | - |   |   |   | - |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Commercial real estate      |   |           | 1,310  |   |   |   | 2,384  |   |   |   | 1,430  |   |   |   | 1,444 |   |   |   | 1,260 |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Commercial loans            |   |           | 1,169  |   |   |   | 1,982  |   |   |   | 1,638  |   |   |   | 708 |   |   |   | 1,423 |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Consumer and other          |   |           | 394    |   |   |   | 556    |   |   |   | 634    |   |   |   | 461 |   |   |   | 109 |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Total nonaccrual loans      |   |           | 5,642  |   |   |   | 6,542  |   |   |   | 5,193  |   |   |   | 3,052 |   |   |   | 3,313 |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current nonaccrual loans (2)                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        | 3,199  |           |   |   | 3,352  |   |   |   | 2,510  |   |   |   | 2,038  |   |   |   | 1,882 |   |
| Total non-performing loans (3)                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        | 8,841  |           |   |   | 9,894  |   |   |   | 7,703  |   |   |   | 5,090  |   |   |   | 5,195 |   |
| Acquired assets                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        | 1,292  |           |   |   | 673    |   |   |   | 678    |   |   |   | -      |   |   |   | 10 |   |
| Total non-performing assets                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $                           | 10,133 |           |   | $      | 10,567 |   |   | $      | 8,381  |   |   | $      | 5,090  |   |   | $ | 5,205 |   |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing loans to total loans (4)                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        | 2.31   | %              |   |   | 2.51   | %      |   |   | 1.88   | %      |   |   | 1.17   | % |   |   | 1.13 | % |
| Non-performing assets to total assets (4)                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        | 1.63   | %              |   |   | 1.77   | %      |   |   | 1.41   | %      |   |   | 0.90   | % |   |   | 0.90 | % |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of June 30, 2010, there were no troubled debt restructured loans.                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See additional information concerning non-performing and impaired loans in note 3 of the audited |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| consolidated financial statements as well as in the Management's Discussion and Analysis.        |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (1)                                                                                        | Nonaccrual residential real estate loans increased due to the number in process of foreclosure. There were no significant losses expected.                                                                                                                                                                                                                                                                                                                      |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |
|  (2)                                                                                        | As of June 30, 2010, comprised of commercial real estate loans of $2,391, commercial loans of $575 and consumer loans of $233.                                                                                                                                                                                                                                                                                                                                  |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |           |
|  (3)                                                                              | Total non-performing loans decreased in fiscal 2010 and increased in fiscal 2009 and 2008 as compared to prior years primarily from changes in commercial real estate and commercial loans. Loans past due 90 days or more and discretionary actions by management to place loans on non-accrual account for the increase in both portfolios. Estimated credit losses were included in the determination of the adequacy of the allowance for loan losses. |
|                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |   |
|  (4)                                                                              | Economic conditions must significantly improve before we expect a decrease in non-performing loans and acquired assets. The decline in economic conditions has impacted the ability of our customers to make their loan payments, and also has had a negative impact on the value of loan collateral which may have to be liquidated. We expect it will be another twelve months before economic conditions start to improve.                         |

| Table 9                                                                                                                  |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |     |    |
|--------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|---------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|----------|---------|
| Northeast Bancorp Consolidated                                                                                           |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |
| Average Deposits ($ in thousands) and Rates                                                                              |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |
|                                                                                                                     |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |     |    |
| For Years Ended                                                                                                          |   | June 30, 2010 |    |   | June 30, 2009 |   |   | June 30, 2008 |   |
|                                                                                                                     |   |          |    |   |          |   |   | % of          |   |   |   |   |   |   |    |   | % of     |   |   |   |   |   |   |   |   | % of     |    |
|                                                                                                                     |   | Amount        |    |   | Rate          |   |   | Deposits      |   |   | Amount |   |   | Rate   |    |   | Deposits |   |   | Amount |   |   | Rate   |   |   | Deposits |    |
|                                                                                                                     |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |     |    |
| Average deposits:                                                                                                        |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |     |    |
|                                                                                                                     |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |     |    |
| Non-interest bearing demand deposits and escrow accounts                                                            |   | $             | 34,186  |   |          |   | 0.00   | %             |   |   | 8.99   | %      |   | $      | 33,616  |   |     |   | 0.00   | %      |   |   | 9.12   | %      |   | $        | 33,317  |   |   |   | 0.00 | % |   |   | 9.20 | % |
| Regular savings                                                                                                          |   | $             | 29,365  |   |          |   | 0.61   | %             |   |   | 7.73   | %      |   |   | 19,515  |   |     |   | 0.36   | %      |   |   | 5.30   | %      |   |     | 20,398  |   |   |   | 0.79 | % |   |   | 5.63 | % |
| NOW and money market                                                                                                     |   | $             | 92,245  |   |          |   | 0.99   | %             |   |   | 24.26  | %      |   |   | 74,835  |   |     |   | 1.33   | %      |   |   | 20.32  | %      |   |     | 64,923  |   |   |   | 2.22 | % |   |   | 17.93 | % |
| Time deposits                                                                                                            |   | $             | 224,400 |   |          |   | 2.68   | %             |   |   | 59.02  | %      |   |   | 240,371 |   |     |   | 3.45   | %      |   |   | 65.26  | %      |   |     | 243,437 |   |   |   | 4.72 | % |   |   | 67.24 | % |
| Total average deposits                                                                                                   |   | $             | 380,196 |   |          |   | 1.87   | %             |   |   | 100.00 | %      |   | $      | 368,337 |   |     |   | 2.54   | %      |   |   | 100.00 | %      |   | $        | 362,075 |   |   |   | 3.62 | % |   |   | 100.00 | % |
|                                                                                                                     |   |          |    |   |          |   |   |          |   |   |   |   |   |   |    |   |     |   |   |   |   |   |   |   |   |     |    |   |   |   |   |   |   |   |   |   |
| This table shows the average daily amount of deposits and average rates paid on such deposits for the periods indicated. |   |

| Table 10                                                  |   |    |   |
|-----------------------------------------------------------|--------|---------|--------|
| Northeast Bancorp Consolidated                            |   |    |   |
| Maturities of Certificates of Deposit $100,000 & Over |   |    |   |
| As of June 30, 2010                                       |   |    |   |
| ($ in thousands)                                          |   |    |   |
|                                                      |   |    |   |
|                                                      |   |    |   |
|                                                      |   | Balance |   |
|                                                      |   |    |   |
| 3 months or less                                          |   | $       | 15,850 |   |
| Over 3 through 6 months                                   |   |    | 8,960  |   |
| Over 6 through 12 months                                  |   |    | 18,394 |   |
| Over 12 months                                            |   |    | 49,400 |   |
|                                                      |   |    |   |   |
| Total certificates of deposit $100,000 & over         |   | $       | 92,604 |   |

| Table 11                                                                                                                    |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|----------|--------|--------|---------|--------|--------|----------|--------|--------|---------|--------|--------|----------|--------|
| Northeast Bancorp Consolidated                                                                                              |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
| Short-term Borrowings                                                                                                       |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
| ($ in thousands)                                                                                                            |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
|                                                                                                                        |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
|                                                                                                                        |   | As of or For Years Ended June 30, |   |
|                                                                                                                        |   | 2010                              |   |   | 2009     |   |   | 2008    |   |
|                                                                                                                        |   |                              |   |   | Weighted |   |   |    |   |   | Weighted |   |   |    |   |   | Weighted |   |
|                                                                                                                        |   | Balance                           |   |   | Rate     |   |   | Balance |   |   | Rate     |   |   | Balance |   |   | Rate     |   |
|                                                                                                                        |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
| Balance at year end                                                                                                         |   | $                                 | 46,168 |   |     |   | 1.49   | %       |   | $      | 34,435   |   |   |    | 1.55   | %      |     | $      | 32,841 |   |   |   | 2.50 | % |
|                                                                                                                        |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |   |   |   |   |   |   |
| Average outstanding during year                                                                                             |   |                              | 42,939 |   |     |   | 1.52   | %       |   |   | 36,412   |   |   |    | 1.97   | %      |     |   | 34,449 |   |   |   | 3.61 | % |
|                                                                                                                        |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |   |   |   |   |   |   |
| Maximum outstanding at any month end                                                                                        |   |                              | 47,821 |   |     |   |   |    |   |   | 39,765   |   |   |    |   |   |     |   | 40,076 |   |   |   |   |   |
|                                                                                                                        |   |                              |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |   |   |   |   |   |   |
| Short-term borrowings consist of securities sold under agreements to repurchase and other sweep accounts. These        |   |
| borrowings were scheduled to mature within 180 days. Securities sold under agreements to repurchase were               |   |
| collateralized by mortgage-backed and U.S. Government-sponsored enterprise securities with a fair value of $44,953          |   |
| and amortized cost of $42,783 at June 30, 2010, and a fair value of $31,026 and amortized cost of $30,109 at June 30, 2009. |   |
| Sweep accounts had Federal Home Loan Bank Letter of Credit coverage of $17,460 and $12,423 at June 30, 2010 and 2009,       |   |
| respectively. Securities sold under these agreements were under the control of the Company throughout 2010 and 2009.   |   |

| Table 12                                                                                                                              |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|----------|--------|--------|---------|--------|--------|----------|--------|--------|---------|--------|--------|----------|--------|
| Northeast Bancorp Consolidated                                                                                                        |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
| FHLB Advances Due in 1 Year or  Less                                                                                        |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
| ($ in thousands)                                                                                                                      |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
|                                                                                                                                  |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
|                                                                                                                                  |   | For Years Ended June 30, |   |
|                                                                                                                                  |   | 2010                     |   |   | 2009     |   |   | 2008    |   |
|                                                                                                                                  |   |                     |   |   | Weighted |   |   |    |   |   | Weighted |   |   |    |   |   | Weighted |   |
|                                                                                                                                  |   | Balance                  |   |   | Rate     |   |   | Balance |   |   | Rate     |   |   | Balance |   |   | Rate     |   |
|                                                                                                                                  |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |
| Balance at year end                                                                                                                   |   | $                        | 3,000  |   |     |   | 4.99   | %       |   | $      | 2,815    |   |   |    | 3.14   | %      |     | $      | 55,575 |   |   |   | 3.70 | % |
|                                                                                                                                  |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |   |   |   |   |   |   |
| Average outstanding during year                                                                                                       |   |                     | 1,214  |   |     |   | 4.17   | %       |   |   | 21,942   |   |   |    | 4.06   | %      |     |   | 44,870 |   |   |   | 4.47 | % |
|                                                                                                                                  |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |   |   |   |   |   |   |
| Maximum outstanding at any month end                                                                                                  |   |                     | 3,460  |   |     |   |   |    |   |   | 43,220   |   |   |    |   |   |     |   | 55,575 |   |   |   |   |   |
|                                                                                                                                  |   |                     |   |   |     |   |   |    |   |   |     |   |   |    |   |   |     |   |   |   |   |   |   |   |
| This table shows the Federal Home Loan Advances the Company had due to mature in one year or less as of June 30, 2010, 2009 and 2008. |   |

| Table 13                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |     |   |   |   |     |   |   |   |    |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|----------|--------|--------|--------|----------|--------|--------|--------|---------|--------|--------|
| Northeast Bancorp Consolidated                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                          |     |   |   |   |     |   |   |   |    |   |   |
| Maturities and Repricing of Interest-earning Assets & Interest-bearing Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                          |     |   |   |   |     |   |   |   |
| As of June 30, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                          |     |   |   |   |     |   |   |   |    |   |   |
| ($ in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          |     |   |   |   |     |   |   |   |    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Term to Repricing or Maturity |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Less Than                     |     |   |   | 1-5    |     |   | Over 5 |   |    |   |   |   | % of |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 1 Year                        |     |   | Years  |   |     | Years  |   |   | Total   |   |   | Total |   |
| Interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |
| Investment securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                             | 1,967    |   |   | $      | 12,581   |   |   | $      | 149,640 |   |   | $ | 164,188 |   |   |   | 28.39 | % |
| Regulatory stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          | -        |   |   |   | -        |   |   |   | 5,486   |   |   |   | 5,486 |   |   |   | 0.95 | % |
| Short-term investments (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          | 27,670   |   |   |   | -        |   |   |   | -       |   |   |   | 27,670 |   |   |   | 4.78 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Mortgage loans:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Residential real estate:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Fixed rate loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          | 3,048    |   |   |   | 7,385    |   |   |   | 83,795  |   |   |   | 94,228 |   |   |   | 16.29 | % |
| Variable loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                          | 44,576   |   |   |   | 16,098   |   |   |   | 597     |   |   |   | 61,271 |   |   |   | 10.59 | % |
| Commercial real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                          | 41,954   |   |   |   | 73,099   |   |   |   | 6,332   |   |   |   | 121,385 |   |   |   | 20.99 | % |
| Construction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                          | 4,891    |   |   |   | 633      |   |   |   | -       |   |   |   | 5,524 |   |   |   | 0.96 | % |
| Other loans:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                          | 20,089   |   |   |   | 9,376    |   |   |   | 674     |   |   |   | 30,139 |   |   |   | 5.21 | % |
| Consumer and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          | 1,333    |   |   |   | 20,687   |   |   |   | 46,469  |   |   |   | 68,489 |   |   |   | 11.84 | % |
|  Total loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                          | 115,891  |   |   |   | 127,278  |   |   |   | 137,867 |   |   |   | 381,036 |   |   |   | 65.88 | % |
| Total interest-earning assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                             | 145,528  |   |   | $      | 139,859  |   |   | $      | 292,993 |   |   | $ | 578,380 |   |   |   | 100.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Customer deposits:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                             | 50,834   |   |   | $      | -        |   |   | $      | -       |   |   | $ | 50,834 |   |   |   | 9.56 | % |
| Money market accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | 55,556   |   |   |   | -   |   |   |   | -  |   |   |   | 55,556 |   |   |   | 10.45 | % |
| Regular savings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                          | 38,190   |   |   |   | -   |   |   |   | -  |   |   |   | 38,190 |   |   |   | 7.18 | % |
| Time deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                          | 104,392  |   |   |   | 99,301   |   |   |   | 658     |   |   |   | 204,351 |   |   |   | 38.42 | % |
| Total customer deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                          | 248,972  |   |   |   | 99,301   |   |   |   | 658     |   |   |   | 348,931 |   |   |   | 65.61 | % |
| Borrowings:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                          | 46,168   |   |   |   | -        |   |   |   | -       |   |   |   | 46,168 |   |   |   | 8.68 | % |
| FHLB advances and other borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                          | 3,652    |   |   |   | 100,341  |   |   |   | 16,368  |   |   |   | 120,361 |   |   |   | 22.63 | % |
| Junior subordinated debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                          | 6,086    |   |   |   | 10,310   |   |   |   | -       |   |   |   | 16,396 |   |   |   | 3.08 | % |
| Total borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                          | 55,906   |   |   |   | 110,651  |   |   |   | 16,368  |   |   |   | 182,925 |   |   |   | 34.39 | % |
| Total interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                             | 304,878  |   |   | $      | 209,952  |   |   | $      | 17,026  |   |   | $ | 531,856 |   |   |   | 100.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest sensitivity gap                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                             | (159,350 | )      |   | $      | (70,093  | )      |   | $      | 275,967 |   |   | $ | 46,524 |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cumulative gap                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                             | (159,350 | )      |   | $      | (229,443 | )      |   | $      | 46,524  |   |   | $ | 46,524 |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cumulative gap ratio                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          | 47.73    | %      |   |   | 55.43    | %      |   |   | 108.75  | %      |   |   | 108.75 | % |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cumulative gap as a percentage of total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                          | -25.61   | %      |   |   | -36.88   | %      |   |   | 7.48    | %      |   |   | 7.48 | % |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| (1) Includes interest-earning deposits and loans held for sale.                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |     |   |   |   |     |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                          |     |   |   |   |     |   |   |   |    |   |   |   |   |   |   |   |   |   |
| This table summarizes the anticipated maturities and repricing of the Company's interest-earning assets and interest-bearing liabilities at June 30, 2010.                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| The Company's internal asset/liability analysis considers regular savings, NOW and money market accounts core deposits. Due to this consideration, the Company's internal asset/liability model has these core deposits designated in a five year or greater maturity category and not one year or less as the above schedule shows. Because of this difference, the Company does not consider its cumualtive gap position to be as liability sensitive through Year 5 as presented in the schedule above. |   |

| Table 14                                                                         |   |     |      |   |    |   |      |    |   |   |      |   |
|----------------------------------------------------------------------------------|--------|----------|-----------|--------|---------|--------|-----------|---------|--------|--------|-----------|--------|
| Northeast Bancorp Consolidated                                                   |   |     |      |   |    |   |      |    |   |   |      |   |
| Quarterly Data (Unaudited)                                                       |   |     |      |   |    |   |      |    |   |   |      |   |
| For Year Ended June 30, 2010                                                     |   |     |      |   |    |   |      |    |   |   |      |   |
|                                                                             |   | 1st Qtr  |      |   | 2nd Qtr |   |      | 3rd Qtr |   |   | 4th Qtr   |   |
|                                                                             |   | Sept. 30 |      |   | Dec. 31 |   |      | Mar. 31 |   |   | June 30   |   |
|                                                                             |   | 2009     |      |   | 2009    |   |      | 2010    |   |   | 2010      |   |
| Interest income                                                                  |   |     |      |   |    |   |      |    |   |   |      |   |
| Interest on loans                                                                |   | $        | 6,041,312 |   |    | $      | 6,033,298 |    |   | $      | 5,959,893 |   |   | $ | 5,768,311 |   |
| Interest & dividends on investments & available-for-sale securities |   |     | 1,850,494 |   |    |   | 1,875,037 |    |   |   | 1,884,397 |   |   |   | 1,848,849 |   |
| Total interest and dividend income                                               |   |     | 7,891,806 |   |    |   | 7,908,335 |    |   |   | 7,844,290 |   |   |   | 7,617,160 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Interest expense                                                                 |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Deposits                                                                         |   |     | 2,054,296 |   |    |   | 1,770,788 |    |   |   | 1,682,217 |   |   |   | 1,607,500 |   |
| FHLB advances and other borrowings                                               |   |     | 1,262,544 |   |    |   | 1,269,390 |    |   |   | 1,219,792 |   |   |   | 1,232,381 |   |
| Short-term borrowings                                                            |   |     | 142,235   |   |    |   | 178,369   |    |   |   | 165,318   |   |   |   | 168,648 |   |
| Junior Subordinated Debentures                                                   |   |     | 205,162   |   |    |   | 200,229   |    |   |   | 181,755   |   |   |   | 172,210 |   |
| Total interest expense                                                           |   |     | 3,664,237 |   |    |   | 3,418,776 |    |   |   | 3,249,082 |   |   |   | 3,180,739 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Net interest income                                                              |   |     | 4,227,569 |   |    |   | 4,489,559 |    |   |   | 4,595,208 |   |   |   | 4,436,421 |   |
| Provision for loan losses                                                        |   |     | 423,461   |   |    |   | 452,833   |    |   |   | 627,998   |   |   |   | 360,127 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Net interest income after provision                                              |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| for loan losses                                                                  |   |     | 3,804,108 |   |    |   | 4,036,726 |    |   |   | 3,967,210 |   |   |   | 4,076,294 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Securities transactions                                                          |   |     | 27,707    |   |    |   | 14,972    |    |   |   | (63,141   | )      |   |   | 2,659 |   |
| Other operating income                                                           |   |     | 2,740,701 |   |    |   | 3,013,893 |    |   |   | 3,115,655 |   |   |   | 3,293,625 |   |
| Other operating expense                                                          |   |     | 5,924,594 |   |    |   | 6,243,438 |    |   |   | 6,271,749 |   |   |   | 6,976,842 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Income before income taxes                                                       |   |     | 647,922   |   |    |   | 822,153   |    |   |   | 747,975   |   |   |   | 395,736 |   |
| Income tax expense                                                               |   |     | 152,253   |   |    |   | 172,840   |    |   |   | 217,343   |   |   |   | 352,678 |   |
| Net income                                                                       |   | $        | 495,669   |   |    | $      | 649,313   |    |   | $      | 530,632   |   |   | $ | 43,058 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Earnings per share:                                                              |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Basic                                                                            |   | $        | 0.19      |   |    | $      | 0.26      |    |   | $      | 0.20      |   |   | $ | (0.01 | ) |
| Diluted                                                                          |   | $        | 0.19      |   |    | $      | 0.25      |    |   | $      | 0.20      |   |   | $ | (0.01 | ) |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Northeast Bancorp Consolidated                                                   |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Quarterly Data (Unaudited)                                                       |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| For Year Ended June 30, 2009                                                     |   | 1st Qtr  |      |   | 2nd Qtr |   |      | 3rd Qtr |   |   | 4th Qtr   |   |
|                                                                             |   | Sept. 30 |      |   | Dec. 31 |   |      | Mar. 31 |   |   | June 30   |   |
|                                                                             |   |     | 2008      |   |    |   | 2008      |    |   |   | 2009      |   |   |   | 2009 |   |
| Interest income                                                                  |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Interest on loans                                                                |   | $        | 6,801,248 |   |    | $      | 6,615,786 |    |   | $      | 6,292,794 |   |   | $ | 6,178,133 |   |
| Interest & dividends on investments & available-for-sale securities |   |     | 1,793,499 |   |    |   | 2,037,130 |    |   |   | 2,043,145 |   |   |   | 2,004,180 |   |
| Total interest and dividend income                                               |   |     | 8,594,747 |   |    |   | 8,652,916 |    |   |   | 8,335,939 |   |   |   | 8,182,313 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Interest expense                                                                 |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Deposits                                                                         |   |     | 2,537,536 |   |    |   | 2,376,157 |    |   |   | 2,238,626 |   |   |   | 2,215,884 |   |
| FHLB advances and other borrowings                                               |   |     | 1,545,287 |   |    |   | 1,568,485 |    |   |   | 1,485,495 |   |   |   | 1,335,398 |   |
| Short-term borrowings                                                            |   |     | 217,458   |   |    |   | 223,973   |    |   |   | 146,054   |   |   |   | 130,610 |   |
| Junior Subordinated Debentures                                                   |   |     | 253,259   |   |    |   | 257,656   |    |   |   | 234,817   |   |   |   | 213,744 |   |
| Total interest expense                                                           |   |     | 4,553,540 |   |    |   | 4,426,271 |    |   |   | 4,104,992 |   |   |   | 3,895,636 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Net interest income                                                              |   |     | 4,041,207 |   |    |   | 4,226,645 |    |   |   | 4,230,947 |   |   |   | 4,286,677 |   |
| Provision for loan losses                                                        |   |     | 520,724   |   |    |   | 499,321   |    |   |   | 574,833   |   |   |   | 504,772 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Net interest income after provision                                              |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| for loan losses                                                                  |   |     | 3,520,483 |   |    |   | 3,727,324 |    |   |   | 3,656,114 |   |   |   | 3,781,905 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Securities transactions                                                          |   |     | (108,127  | )      |    |   | 26,060    |    |   |   | -         |   |   |   | 350,440 |   |
| Other operating income                                                           |   |     | 2,618,728 |   |    |   | 2,662,250 |    |   |   | 2,661,160 |   |   |   | 2,562,349 |   |
| Other operating expense                                                          |   |     | 6,038,796 |   |    |   | 6,082,944 |    |   |   | 5,843,106 |   |   |   | 6,496,197 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Income before income taxes                                                       |   |     | (7,712    | )      |    |   | 332,690   |    |   |   | 474,168   |   |   |   | 198,497 |   |
| Income tax expense                                                               |   |     | (76,828   | )      |    |   | 39,115    |    |   |   | 86,798    |   |   |   | (10,431 | ) |
| Net income                                                                       |   | $        | 69,116    |   |    | $      | 293,575   |    |   | $      | 387,370   |   |   | $ | 208,928 |   |
|                                                                             |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Earnings per share:                                                              |   |     |      |   |    |   |      |    |   |   |      |   |   |   |   |   |
| Basic                                                                            |   | $        | 0.03      |   |    | $      | 0.12      |    |   | $      | 0.14      |   |   | $ | 0.07 |   |
| Diluted                                                                          |   | $        | 0.03      |   |    | $      | 0.12      |    |   | $      | 0.14      |   |   | $ | 0.07 |   |

| Item 9.  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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|     | Not applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 9A. | Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     | The Corporation carried out an evaluation, under the supervision and with the participation of the Corporation’s management, including the Corporation’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e).  Based upon the evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2010, the Corporation’s disclosure controls and procedures are effective.  Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in the Corporation’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. An evaluation was performed under the supervision and with the participation of the Company's management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our internal controls and procedures over financial reporting (as defined in Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this annual report. Management is responsible for establishing and maintaining adequate internal controls over financial reporting.  The standard measures adopted by management in making its evaluation are the measures in Interest Control – Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission.  We do not expect that our disclosure controls and procedures will prevent all error and all fraud.  A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objective will be met.  Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.  Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, errors, and instances of fraud, if any, within the Company have been or will be detected.  The inherent limitations include, among other things, the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake.  Controls and procedures also can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management or employee override of the controls and procedures.  The design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.  Over time, controls and procedures may become inadequate because of changes in conditions or deterioration in the degree of compliance with its policies or procedures.  Because of the inherent limitation in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. Based on their evaluation of disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded, subject to the limitations described above, that our internal controls and procedures over financial reporting as of the end of the period covered by this report were effective and that there were no material weaknesses. There have been no significant changes in our internal controls, or in other factors that could significantly affect our internal controls, subsequent to the date the Chief Executive Officer and Chief Financial Officer completed their evaluation, including any corrective actions with regard to significant deficiencies or material weaknesses. This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal controls over financial reporting.  Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the Dodd-Frank Wall Street Reform and Consumer Protect Act as a result of the Company's status as a smaller reporting company.  |
| Item 9B. | Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|     | None.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

| Item 10. | Directors, Executive Officers and Corporate Governance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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|     | CORPORATE GOVERNANCEThe Board of DirectorsThe Board of Directors, which is elected by the shareholders, is responsible for the overall management of the business and affairs of the Company. It has the ultimate decision-making authority, except with respect to those matters reserved to the shareholders. The Board and its committees review the Company’s long-term strategic plans and exercise direct decision-making authority in a number of areas, such as declaring a dividend. The Board of Directors selects, advises and monitors the performance of the senior management team, which is charged with the conduct of the Company’s business and the implementation of the Board’s strategic plan. The Board of Directors also reviews development and succession plans for the Company’s senior executive officers, as needed. Corporate Governance GuidelinesThe Board of Directors has adopted Corporate Governance Guidelines that govern the structure of the Board of Directors and outline the Board’s policies on a number of the Company’s corporate governance issues and procedures. These guidelines embody long-standing practices of the Company and also include procedures designed to incorporate current corporate governance best practices. The Company’s corporate governance practices are designed to align the interests of the Board and management with those of the Company’s shareholders and to promote honesty and integrity throughout the Company. Portions of the Corporate Governance Guidelines are described below and are available as described herein. Director Qualifications and IndependenceApplicable rules of The NASDAQ Stock Market (“NASDAQ”), the exchange on which the Company’s Common Stock is listed, and the Corporate Governance Guidelines require that the Board of Directors consist of a majority of independent directors. The Board of Directors determines independence on the basis of standards established by NASDAQ, the Securities and Exchange Commission (“SEC”) and other facts and circumstances the Board considers relevant. The Board of Directors and its Nominating and Corporate Governance Committee (the “Corporate Governance Committee”) evaluate the relationships between each director (or his or her immediate family members and related interests) and the Corporation and its subsidiaries to determine compliance with the NASDAQ independence rules. Based on that review, the Board of Directors has affirmatively determined, upon the recommendation of the Corporate Governance Committee, that every director, other than Messrs. Delamater, Jackson and Lazenby, is independent under these standards. All directors are required to own at least 1,000 shares of common stock of the Company on or before the second anniversary of their election to the Board.  All directors have met this requirement. Executive Sessions of the BoardAs provided in the Corporate Governance Guidelines, the independent directors of the Company will normally meet in executive session at least four times per year following a meeting of the Board of Directors. Since the Chairman of the Board is an independent director, the Chairman serves as the presiding director at these sessions. Board Attendance and Annual Meeting PolicyIt is the Company’s policy that directors should make every effort to attend each meeting of the Board of Directors, each meeting of the committees on which they serve, and the Company’s annual meeting of shareholders. During the fiscal year ended June 30, 2010 (the “2010 fiscal year”), there were 13 meetings of the Board of Directors, and each of the directors attended at least 75% of the meetings of the Board of Directors and committees on which he or she served. All directors attended the 2009 annual meeting of shareholders other than Messrs. Goguen, Schiavi and Rosmarin. Board Committee Membership and MeetingsThe Board of Directors has established various committees to assist the Board in fulfilling its responsibilities. All of the members of the committees are nominated by the Corporate Governance Committee and appointed by the Board of Directors. The Board of Directors had four standing committees during the 2010 fiscal year: Audit Committee, Personnel and Compensation Committee (“Compensation Committee”), Corporate Governance Committee, and Executive Committee. Members of these committees are elected annually at the Board of Directors’ meeting following the annual meeting of shareholders. Each of these committees, except for the Executive Committee, is composed entirely of independent directors and operates under a charter approved by the Board of Directors setting out the purposes and responsibilities of the committee. The committees of the Board of Directors annually review and, as appropriate, revise their respective charters to reflect, among other things, changing regulatory developments. Descriptions of these committees are provided below:  |
|     |  *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Audit Committee. The audit committee currently consists of four directors, all of whom are independent under the enhanced independence standards of rules and regulations of NASDAQ and the SEC applicable to audit committees.  |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  The Audit Committee reviews the implementation and operation of the Company’s audit program and internal controls, and its duties include: (i) conducting an annual review of the adequacy of the Company’s system of internal accounting and its audit program, including a review of the activities of its subsidiary bank’s examining committees, maintaining direct reporting responsibility and regular communication with the Company’s internal audit staff, and reviewing the scope and results of the internal audit procedures of the Company and its subsidiary; (ii) monitoring the integrity of the consolidated financial statements of the Company; (iii) engaging or discharging the Company’s independent public accountants and pre-approving any non-audit services; (iv) meeting with the independent public accountants to review the plans and results of the audit engagement, to review all reports of independent auditors and bank regulatory examinations, and to respond to such reports; (v) approving the services to be performed by the independent public accountants and giving consideration to the range of the audit and non-audit fees; (vi) establishing procedures for the receipt, retention, and treatment of complaints received by the Company regarding accounting, internal accounting controls, and auditing matters and the confidential and anonymous submission by employees of concerns regarding questionable accounting or auditing matters, and (vii) monitoring the integrity of the Company’s internal loan review system.  |
|  86 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  As a part of its duties, the Audit Committee reviews with management and the independent auditor the annual and quarterly financial statements of the Company, including the Company’s disclosure under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and any material changes in accounting principles or practices used in preparing the financial statements prior to filing of a report on Forms 10-K or 10-Q with the SEC. The Audit Committee reviews annually the scope of the proposed internal audit, external audit, and credit review activities and also reviews the implementation of those activities. The Audit Committee also reviews annually, together with management, the retention of the independent public accountant and the contents and conclusions of the audited financial statements. Additional information regarding the functions performed by the Audit Committee and its membership is set forth in the “Report of Audit Committee”, included below. The Audit Committee, which is comprised of James P. Day, Conrad L. Ayotte, Ronald J. Goguen and Judith E. Wallingford, held five meetings during the 2010 fiscal year. The Board of Directors has determined that Mr. Day, Ms. Wallingford and Mr. Ayotte qualify as Audit Committee financial experts. All four Audit Committee members are independent under applicable SEC and NASDAQ enhanced independence standards applicable to audit committee membership. The Audit Committee Charter is available on the Company’s website at www.northeastbank.com.  |
|     |   *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Compensation Committee. The Compensation Committee currently consists of four independent directors. The Compensation Committee provides overall guidancewith respect to theestablishment, maintenance and administration of the Company’s compensation policies, programs, and employee benefit plans, including the review and recommendation of the chief executive officer’s and other executive officers’ compensation. The Compensation Committee also reviews and makes recommendations to the Board of Directors as to the form and amount of compensation for the Company’s directors. The Compensation Committee is comprised of Stephen W. Wight, Judith E. Wallingford, John Rosmarin, and Conrad L. Ayotte, who also serves as the Committee’s Chair.  The Committee held three meetings during the 2010 fiscal year. The Compensation Committee charter is available on the Company’s website at www.northeastbank.com.  |
|     |    *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Corporate Governance Committee. The Corporate Governance Committee currently consists of four independent directors. The Corporate Governance Committee identifies individuals qualified to become board members and recommends to the Board nominees for election of directors, consistent with criteria approved by the Board. In addition, the Corporate Governance Committee recommends to the Board the Company’s corporate governance guidelines. The Corporate Governance Committee also leads the Board in its annual self-evaluation and review of individual board member performance and recommends to the Board membership for each Board committee. In the event of a vacancy in the office of the chief executive officer, the Corporate Governance Committee, together with the executive committee, is responsible for recommending a successor to the full Board. The Corporate Governance Committee, which consists of Judith E. Wallingford, John Rosmarin, James P. Day, and Stephen W. Wight, held three meetings during the 2010 fiscal year. The Corporate Governance Committee Charter and Governance Guidelines are available on the Company’s website at www.northeastbank.com.  |
|     |    *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  Executive Committee. The Executive Committee of the Board of Directors is empowered to act on behalf of, and to exercise all the powers of, the full Board of Directors in the management of the business and affairs of the Company when the Board of Directors is not in session, except to the extent limited by the Company’s Articles of Incorporation or Bylaws, or by Maine law. The Executive Committee, consisting of Judith E. Wallingford, James D. Delamater, John Rosmarin, and John H. Schiavi, did not meet during the 2010 fiscal year. |
|     |  Director Nomination ProcessThe Corporate Governance Committee generally identifies director candidates through recommendations made by its independent directors, but will consider candidates proposed or suggested by Board members, management, third party search firms retained by the Corporate Governance Committee and shareholders. The Corporate Governance Committee is responsible for assessing all director candidates and recommending nominees to the Board. Pursuant to the Corporate Governance Guidelines, the Corporate Governance Committee and the Board will select director nominees based on the merit, qualifications, performance and competency of the candidate and the Company’s business needs. Candidates must be individuals of the highest character and integrity who possess significant experience or skills that will benefit the Corporation and must be free of conflicts of interest that would interfere with their ability to discharge their duties or violate any applicable laws or regulations. The Board of Directors also believes that its directors ideally should reflect a mix of experience and other qualifications. There is, however, no firm requirement of minimum qualifications or skills that a candidate must possess. When evaluating nominees, the composition of the entire Board is taken into account, including the need for a majority of independent directors, the diversity of experience and background represented on the Board, the need for financial, business, academic, public and other expertise on the Board and its committees and the desire for directors working cooperatively to represent the best interests of the Company and its shareholders, customers, communities and employees. Candidates must be willing and able to devote the time necessary to discharge their duties and have the desire to represent and evaluate the interests of the Company as a whole. Also, the assessment of a candidate includes consideration of the number of boards on which he or she serves. A director who has reached the age of 72 cannot be nominated for election to the Board. Shareholders also may nominate persons for election as directors at an annual shareholders’ meeting if such nominations are made in accordance with the procedures set forth in the Company’s Articles of Incorporation, and such shareholder nominees will be considered by the Corporate Governance Committee. The Articles of Incorporation require that advance notice of such proposed nomination shall be received by the Secretary of the Company not less than thirty (30) days nor more than sixty (60) days prior to any meeting of the shareholders called for the election of the Directors; provided, however, that if fewer than fourteen (14) days’ notice of the meeting is given to shareholders, such written notice of a proposed nomination shall be received not later than the close of the tenth day following the day on which the notice of the meeting was mailed to shareholders. Each notice shall set forth (a) the name, age, business address and, if known, residence address of each nominee proposed in such notice, (b) the principal occupation or employment of each such nominee, and (c) the number of shares of stock of the Company which are beneficially owned by each such nominee. The shareholder making the nomination must be present in person or by proxy at the meeting. Shareholder nominations are considered on the same basis as nominations made by the Corporate Governance Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|  87 |
|     | Communications with DirectorsThe Board of Directors has established a process for shareholders and other interested parties to communicate with the Board or a particular director. A shareholder may send a letter to Northeast Bancorp, Attention: Corporate Clerk, 500 Canal Street, Lewiston, ME 04240. The mailing envelope should contain a clear notation indicating that the enclosed letter is a “Board Communication” or “Director Communication.” All such letters should state whether the intended recipients are all members of the Board or just certain specified individual directors. The Corporate Clerk will circulate the communications (with the exception of commercial solicitations) to the appropriate director or directors. Communications marked “Confidential” will be forwarded unopened. A log of all correspondence addressed to the directors will be kept for periodic review by the Corporate Governance Committee and any other interested director.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|     | Executive Officers of the RegistrantThe name, age, and position of each executive officer of the Company and the Bank are set forth below along with such officer's business experience during the past five years.  Officers are elected annually by the respective Boards of Directors of the Company and the Bank to hold office until the earlier of their death, resignation, or removal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|     | Names                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  Age |         Position with Company and/or Bank |
|     | James D. Delamater                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  59 | President, Chief Executive Officer (1) |
|     | Pender J. Lazenby                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  60 | Chief Risk Officer |
|     | Marcel Blais                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  51 | Chief Operating Officer |
|     | Robert S. Johnson                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  58 | Chief Financial Officer (1) |
|     | Suzanne Carney                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  43 | Clerk |
|     |  (1) Each of these individuals serves both the Company and the Bank in the same capacities as indicated above.James D. Delamater has been President, Chief Executive Officer, and a director of the Company and the Bank, since 1987.Marcel Blais has been the Senior Vice President of the Bank – Chief Operating Officer since 1998.  Mr. Blais joined the Company in 1997 as the Vice President of the Bank - Branch Administration.  Prior to joining the Company he served as Vice President of Atlantic Bank from 1995 to 1997, and as Vice President - Branch Manager of Casco Bank from 1977 until 1995.Robert S. Johnson has been the Chief Financial Officer of the Bank since December 2001.  Prior to joining the company he served as Mortgage Controller of Banknorth Group from 1998 to 1999 and as President and Chief Financial Officer of Pepperell Bank & Trust from 1999 to 2001.Pender J. Lazenby has been a director of the Company and the Bank since 2003.  Mr. Lazenby has also served as the Senior Vice President Chief Risk Officer since February 2005 and, prior to joining the Company, served in a variety of positions with Fleet Boston and Bank Boston prior to its acquisition in 1999.Suzanne Carney has been Clerk of the Bank since March 1999 and has been with the Company since 1994 in the Accounting Division.There is no family relationship between any of the directors or executive officers of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|     | Code of Ethics The Board has adopted a Code of Ethics which applies to all of the Company’s directors, officers and employees, including its principal executive officer, principal financial officer and principal accounting officer. The Company is committed to the highest standards of ethical and professional conduct, and the Code of Conduct and Ethics provides guidance in how to uphold these standards. The Code of Ethics consists of basic standards of business practice as well as professional and personal conduct. Any material amendments to, or waivers of, the Code of Ethics (to the extent applicable to the principal executive officer, principal financial officer or principal accounting officer) will be promptly disclosed by the Company. The Corporate Governance Committee has been charged with monitoring, overseeing, and reviewing compliance with the Ethics Code.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|  88 |
|----------|
| Item 11. | Executive Compensation |

|   | COMPENSATION OF EXECUTIVE OFFICERSExecutive CompensationThe following summary compensation table sets forth the cash and non-cash compensation paid to or accrued for the past fiscal year for the Company’s Chief Executive Officer, and for the two other most highly compensated executive officers of the Company or its subsidiaries whose total compensation exceeded $100,000 for the fiscal year ended June 30, 2010 (collectively, the “Named Executive Officers”).  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | SUMMARY COMPENSATION TABLE               |
|--------|------------------------------------------|
|   |   Name and Principal Position  |  Fiscal Year |   Salary |   Bonus | Non-equity Incentive Plan Compensation | Non-qualified Deferred Compensation | All Other Compensation (1) | Total Compensation |
|   | James Delamater.President and CEO        | 2010 | $269,946 | $0 | $0 | $47,304 | $12,259 | $329,509 |
|   | 2009                                     | 268,434 | 0 | 15,000 | 42,339 | 12,164 | 337,937 |
|   |                                     |   |   |   |   |   |   |
|   | Robert S. JohnsonChief Financial Officer | 2010 | $147,518 | $0 | $12,000 | $27,175 | $5,458 | $192,151 |
|   | 2009                                     | 146,692 | 0 | 5,000 | 24,321 | 5,433 | 181,446 |
|   |                                     |   |   |   |   |   |   |
|   | Pender J. Lazenby.Chief Risk Officer     | 2010 | $155,994 | $0 | $13,000 | $35,976 | $5,712 | $210,682 |
|   | 2009                                     | 155,590 | 0 | 5,000 | 32,199 | 5,700 | 198,489 |
|   |                                     |   |   |   |   |   |   |

|   |            |                                       |                                       |                                |                                              |
|--------|-----------------|--------------------------------------------|--------------------------------------------|-------------------------------------|---------------------------------------------------|
|   |            | Term Life InsurancePremiums                |  Matching 401KContributions           |  Automobile Reimbursement      |  Employer HealthSavings AccountContributions |
|   |            | 2010                        | 2009                             |  2010           |  2009                         |  2010    |  2009    |  2010    |  2009    |
|   |  Delamater |  $  1,032              |  $  1,032              |  $  6,678       | $  6,754                           | $  2,973   |  $  2,892   | $  1,485    |  $  1,486     |
|   |  Johnson   |      1,032   |      1,032   |   4,426    | 4,401                                   |  -0-     |  -0-     |  -0-        |  -0-     |
|   |  Lazenby   |     1,032         |     1,032    |   4,426    | 4,468                                   |  -0-     |  -0-     |  -0-        |  -0-     |

|     |   Stock Option GrantsThe Company has two stock option plans under which it may make awards of incentive and non-qualified stock options. During the fiscal year ended June 30, 2010, no awards were made to any of the Named Executive Officers. Outstanding Equity Awards At Fiscal Year EndThe following table sets forth, for each of the Named Executive Officers, the number of shares of Common Stock acquired pursuant to the exercise of stock options during the 2010 fiscal year, the number of the stock options held at June 30, 2010, and the realizable gain on outstanding stock options that are “in-the-money.” The in-the-money stock options are those with exercise prices that are below the year-end stock price as a result of an increase in stock value since the date of the grant.  |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     | Outstanding Equity Awards At Fiscal year End                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  OPTION AWARDS  |
|     |   Name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Number of SecuritiesUnderlying Unexercised Options:Exercisable |  Option Exercise Price |
|     | James D. Delamater                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 5,000 | $13.10 |
|  89 |

|   |  COMPENSATION DISCUSSION AND ANALYSIS THE COMPENSATION COMMITTEE Makeup and Charter of the Committee The Company has a standing Compensation Committee, referred to as the “Committee” hereinafter in this discussion. The Committee operates pursuant to a Committee charter (which is available at www.northeastbank.com) that has been approved by the Board. The Board determined that each of the directors listed below, who served as members of the Committee during the fiscal year ended June 30, 2010, is independent according to the Board’s independence standards as set out in the Company’s Governance Principles (which are available at www.northeastbank.com), and applicable rules of the SEC and the corporate governance rules of NASDAQ. The Compensation Committee has the authority to retain and compensate advisors that it deems necessary to fulfill its duties. The Compensation Committee met four times in the year ending June 30, 2010. For fiscal year 2010, the Committee’s members were:  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     | James P. Day (chair)Conrad L. Ayotte                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Judith E. WallingfordStephen W. Wight |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|     | The Committee’s Job The Committee is charged with formulating and making recommendations to the Board with respect to compensation issues relating to directors and senior officers of the Company, including the Chief Executive Officer. The Committee also makes recommendations regarding, and administers, the Company’s stock option plans, each in accordance with its terms, which are described below. The Committee reviews and makes recommendations regarding the general merit increase budget for salaried and hourly employees and has general oversight of employee benefit programs. In addition, the Committee, in consultation with the Chief Executive Officer, considers and reports to the Board regarding employee or executive succession matters. The Board has the ultimate decision-making authority regarding employee or executive succession and compensation matters. Continuing Process Although many compensation decisions are made in the first quarter of the fiscal year, our compensation planning process neither begins nor ends with any particular Committee meeting. Compensation decisions are designed to promote our fundamental business objectives and strategy. The Compensation Committee recommends all compensation and awards to executive officers, which include the chief executive officer, the chief financial officer, the chief operations officer, the chief risk officer and senior vice presidents. Generally, on its own initiative, the Compensation Committee reviews the performance and compensation of the chief executive officer and, following discussions with, where it deems appropriate, the human resources director or other appropriate advisors, establishes his compensation level and determines whether or not to make equity awards to the chief executive officer. For the remaining executive officers, the chief executive officer and the human resources director make recommendations to the Compensation Committee that generally, with minor adjustments, are approved. With respect to equity compensation awarded to others, the Compensation Committee grants restricted stock and stock options, generally based upon the recommendation of the chief executive officer. The Committee Has Reviewed the Appropriateness Of Compensation The Compensation Committee reviewed the amounts payable under each individual element of compensation, as well as in the aggregate, for each named executive officer and concluded that the individual elements of, and total aggregate compensation paid to, each named executive officer was appropriate. Factors the Compensation Committee considered in analyzing compensation includes: * Total compensation;* Internal pay equity;* The company’s stock ownership and/or stock retention policies;* The competitive environment for recruiting executive officers, and what competitors pay; and* The “need” to provide each element of compensation and the amounts targeted and delivered. The Committee Engaged A Consulting Firm To Provide Outside Expertise The Compensation Committee Charter grants the Compensation Committee the sole and direct authority to hire and fire advisors and compensation consultants and approve their compensation. To assist the Compensation Committee in establishing “targeted overall compensation” (i.e., the aggregate level of compensation that we will pay if performance goals are fully met) in fiscal year 2010, we participated in and referenced a compensation survey conducted by Berry, Dunn, McNeil & Parker, a regionally recognized consulting firm. The study compares compensation at the Company and at comparable companies in northern New England. Studies like this one cover in detail only those individuals for whom compensation information is disclosed publicly. As a result, these studies generally cover the five most highly compensated officers at each company included within the survey. Thus, this information correlates to our president and the individuals who are executive vice presidents or the equivalent at the Company. Berry, Dunn, McNeil & Parker also provided us with data that was less company-specific to assist us with respect to establishing compensation at other levels within our organization. The overall results of this study provided the starting point for our analysis. We annually compare the executive salaries of northern New England banks of similar size with a goal of maintaining salary ranges and midpoints that approximate these averages. Salary ranges should be sufficient to attract and retain employees in our marketplace.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  90 |
|     |   COMPENSATION COMMITTEE CPP RISK ASSESSMENT In accordance with the applicable requirements of the U.S. Treasury’s Capital Purchase Program (“CPP”), the Compensation Committee evaluated and reviewed the incentive compensation arrangements in place with its Named Executive Officers and with other members of senior management. The Compensation Committee concluded that the overall structure of the Corporation’s incentive compensation arrangements does not encourage the taking of unnecessary or excessive risks by the executives. COMPENSATION STRUCTURE AND POLICIES Compensation Philosophy The Company’s success is dependent upon its ability to attract and retain highly qualified and motivated executives. The Company endorses the philosophy that executive compensation should reflect the Company’s performance, the contribution of such officers to that performance and salaries that is competitive with peer banks. Our executive compensation program is designed to support our company’s core values and strategic objectives. Moreover, our compensation philosophy is intended to align the interests of management with those of our shareholders. Compensation Objectives The Company’s compensation policy is designed to achieve the following fundamental objectives: (i) attract and retain qualified executives, (ii) motivate performance to achieve specific strategic objectives of the Company, and (iii) align the interests of senior management with the long-term interests of the Company’s stockholders. We more specifically attempt to achieve these objectives through competitive base salary, incentive compensation and stock option grants. Key Elements of Executive Compensation The Chief Executive Officer’s annual salary is determined primarily on the basis of his individual performance and the performance of the Company. While no mathematical weighting formula exists; the Committee considers all factors which it deems relevant, including the Company’s financial results, the duties and responsibilities of the Chief Executive Officer, the Chief Executive Officer’s individual performance relative to written objectives established at the beginning of each year, and comparison of the current salary of the Chief Executive Officer to salaries of chief executive officers of northern New England Banks of similar size. Awards pursuant to option plans are made in accordance with the respective plans. We compensate our senior management through a mix of base salary, incentive compensation and equity compensation designed to be competitive with comparable employers and to align management’s incentives with the long-term interests of our stockholders and to reward performance. Our compensation setting process consists of establishing targeted overall compensation for each senior manager and then allocating that compensation among base salary and incentive compensation. At the senior-most levels, we design the incentive compensation to reward company-wide performance through tying awards primarily to earnings growth and stock price appreciation. At lower levels, we design the incentive compensation to reward the achievement of specific operational goals within areas under the control of the relevant employees, although company-wide performance is also a factor. The key elements of the Company’s compensation program currently are base salary, annual performance-based cash incentive compensation, long-term equity-based incentives and deferred compensation. We believe a competitive base salary is important to attract and retain good executives. We believe annual performance-based incentives are valuable in recognizing and rewarding individual achievement. Finally, we believe equity-based compensation makes executives “think like owners” and, therefore, aligns their interests with those of our shareholders. COMPENSATION PRINCIPLES We Believe Compensation Should Be Competitive And Reward Performance The Company designs executive compensation policies, as described more fully below, to attract and retain qualified executives by providing compensation packages which are competitive within the marketplace as determined by the Berry, Dunn compensation survey and which compensate executives in a manner that encourages individual performance consistent with shareholder expectations. We Are Focused On Keeping Compensation Reasonable And Realistic The Committee determined the amount of each type of compensation for each executive by reviewing publicly available information regarding other companies which are similar to the Company, by assessing possible demand for our executives by competitors and other companies, by evaluating the compensation appropriate to attract executives to central Maine, where we are located, as based on the Berry, Dunn compensation survey and by consulting with the Chief Executive Officer with respect to the other executive officers. Based on that review, we concluded that our program was well balanced between cash, non-cash and incentive elements and that the base salaries of our executives were generally appropriate. |
|  91 |

|   |  ELEMENTS OF EXECUTIVE COMPENSATION Overview Executive compensation consists of the following main elements: a base salary that reflects the scope of the executive’s responsibility and is competitive within the geographic base, annual cash-based incentive bonuses tied to the Company’s success in achieving certain financial performance goals established in advance by the Compensation Committee and stock-based incentive awards, such as stock option grants, which provide rewards and incentives for enhancing shareholder value. In allocating compensation among these elements, we believe that the compensation of our senior-most levels of management -- the levels of management having the greatest ability to influence the Company’s performance -- should have a significant component that is performance-based, while lower levels of management should receive a greater portion of their compensation in base salary. Base Salary Our approach is to pay base salaries which are competitive with the salaries paid to executives of other companies of similar size and taking into account our judgment of the particular executive’s experience, performance and potential contributions to the Company. Base pay is a critical element of executive compensation because it provides executives with a base level of monthly income. We want to provide our senior management with a level of assured cash compensation in the form of base salary that facilitates an appropriate lifestyle given their professional status and accomplishments. Non-Equity Incentive Compensation Our practice is to award cash non-equity compensation based upon achievement of annual performance objectives. For fiscal 2010, the performance goals for our chief executive officer were as follows: maintain, by supporting and training, the company-wide culture of “Shared Values”, meets budget objectives, maintain balance sheet integrity, enhance shareholder value, achieve satisfactory regulatory results, and increase the number of products and services sold per customer. Equity Compensation Historically, the primary form of equity compensation that we awarded consisted of non-qualified stock options. We selected this form because of the favorable accounting and tax treatments. Severance Benefits Where termination of employment is due to a reduction in force or a projected reduction in force, our company-wide severance plan provides for benefits equal to two weeks of base salary per year of credited service with a minimum payment of 4 weeks of base salary and a maximum payment of 26 weeks of base salary. This policy is not specific to executive management and is applied to any employee who meets the eligibility criteria. We also continue health and dental insurance benefits for between one and six months corresponding to the termination benefits. We do not accelerate the vesting of equity compensation. In addition, a terminated employee is entitled to receive any benefits that he otherwise would have been entitled to receive under our 401(k) plan, and supplemental retirement plans, although those benefits are not increased or accelerated. We believe that these levels of severance benefits are below the general practice among comparable companies, although we have not conducted a study to confirm this belief. Mr. Delamater would not be entitled to severance benefits due to the regulations instituted by TARP.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|              | Name   | Base Salary           | Insurance   | Non-Qualified Deferred Compensation (1) | Total     |
|-------------------|--------|-----------------------|-------------|-----------------------------------------|-------------------------------|
| Robert S. Johnson | 29,990 | 3,295                 | 27,174      | 60,459                   |
| Marcel C. Blais   | 73,736 | 5,355                 | 13,075      | 92,166                   |
| Pender J. Lazenby | 29,990 |    232 | 35,975      | 66,197                   |
| Leslie L. Couper  | 32,844 |    325 |  7,804 | 40,973                   |
| Craig O. Linscott | 49,998 | 5,268                 | n/a         | 55,266                   |

|                                                                                                                                                                                                                       |  (1) Deferred Compensation is not paid for termination for cause.         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                       | Severance Benefit based on hypothetical change in control as of June 30, 2010  |
|                                                                                                                                                                                                                       | Name                                                                                | Base Salary | Insurance | Non-Qualified Deferred Compensation (1) | Total     |
| Robert S. Johnson                                                                                                                                                                                                          | 29,990                                                                              | 3,295 | 27,174 | 60,459    |
| Marcel C. Blais                                                                                                                                                                                                            | 73,736                                                                              | 5,355 | 13,075 | 92,166    |
| Pender J. Lazenby                                                                                                                                                                                                          | 29,990                                                                              |    232 | 35,975 | 66,197    |
| Leslie L. Couper                                                                                                                                                                                                           | 32,844                                                                              |    325 |  7,804 | 40,973    |
| Craig O. Linscott                                                                                                                                                                                                          | 49,998                                                                              | 5,268 | n/a | 55,266    |
|                                     92 |

|   |   Retirement Plans The Company maintains a traditional 401(k) plan pursuant to which the Company matches half of an employee’s contribution, up to 6% of the employee’s salary. Non-Qualified Deferred Compensation Agreements In July 2007, the Compensation Committee, in an executive session with the full board, approved certain Salary Continuation Agreements for the following executive officers: James D. Delamater, Marcel C. Blais, Robert S. Johnson, Pender J. Lazenby, Leslie L. Couper. The Committee approved the Agreements because they are a tool for retention by creating incentive for senior level officers to stay with the Company until their normal retirement age. Mr. Linscott does not have a salary continuation agreement. As a general matter, the Salary Continuation Agreements provide for the payment of annual benefits to the participating executives, assuming attainment of the normal retirement age, as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|   | Name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  Scheduled Payout Assuming Normal Retirement Age |
|   | James D. Delamater                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $63,164 |
|   | Marcel C. Blais                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $44,627 |
|   | Robert S. Johnson                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $36,286 |
|   | Pender J. Lazenby                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $34,203 |
|   | Leslie L. Couper                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $41,541 |
|   |  Retirement benefits are payable monthly, beginning the month immediately after the month in which the Executive attains normal retirement age and are paid for 180 months. Early termination (i.e., termination before normal retirement age other than as a result of disability, death or cause) and disability benefits are paid monthly for 180 months beginning with the later of (x) the seventh month after the month in which the separation from service occurs or (y) the month immediately after the month in which the executive attains normal retirement age. Change of control benefits are paid in a lump sum within three days after the change in control. If the executive is receiving retirement benefits upon the occurrence of a change in control, the executive will be paid the remaining benefits in a lump sum within three days following the change in control. The death benefit is payable to the Executive’s beneficiary in a single lump sum 90 days after the date of death. No payment of any benefit will be made if the Executive is terminated for cause. Cause means executive’s gross negligence, neglect or intentional and material failure to perform his duties after notice, disloyalty or dishonesty or a breach of fiduciary duty for personal profit, intentional wrongful damage by the executive of the Bank’s business or property, willful violation of applicable law or bank policy that has an adverse effect on the Bank or its affiliates, executive being excluded from coverage under the Bank’s blanket bond, removal of the executive from office or prohibition from participating in the Bank’s affairs by regulatory order or conviction of the executive or a plea of no contest to a felony or misdemeanor involving moral turpitude or which results in incarceration of the executive for five consecutive days or more. Each participating Executive is entitled to only one payout under the Agreement, regardless of the number of events that occur. For events other than normal retirement and termination for cause, the executive would receive annual payments based upon his accrued deferred compensation balance. The approximate annual cost of this deferred compensation plan is $131,000. EXECUTIVE SHARE OWNERSHIP GUIDELINES The Committee strongly supports share ownership by its executives. However, although there is no formal requirement for executive officers to own shares of Northeast Bancorp, executives are encouraged to own shares.  See Item 12. OUR COMPENSATION DECISIONS Based on the performance criteria discussed below, as well as referencing the Berry, Dunn, McNeil & Parker compensation survey, a base salary of $269,946 for Mr. Delamater was recommended by the Committee and approved by the Board for fiscal year 2010. Mr. Delamater’s compensation for 2010 was determined in accordance with the foregoing and approved by the Committee together with all other independent members of the Board. This base compensation was determined by the Committee members’ evaluation of Mr. Delamater’s performance with respect to the objectives described below and the Committee members’ subjective evaluation of his overall performance in those criteria. Mr. Delamater’s performance evaluation was based on objectives determined by the Committee and outlined in Mr. Delamater’s annual Personal Development Plan (“PDP”). Short term and long term objectives are established through the annual PDP. The PDP is the formal evaluation process that is used throughout the organization. Mr. Delamater’s performance objectives for 2010 were as follows: meet 2010 budgeted fiscal net income of $2.7 million; maintain balance sheet integrity, achieve satisfactory regulatory results; enhance shareholder value; and increase the number of products and services sold per customer; maintain “Shared Values” culture. The weighting of the performance criteria was as follows: meet 2010 budgeted fiscal net income $2.7 million (25%); the remaining 75% was comprised of the following criteria: maintain balance sheet integrity (25%); enhance shareholder value (20%); achieve satisfactory regulatory results (20%); increase the number of products and services sold per customer (5%); and continue to maintain a “Shared Values” culture (5%). Determinations of percentage allocations were based on Committee members’ subjective evaluation of Mr. Delamater’s performance against the criteria. Mr. Delamater’s potential total incentive compensation of $40,491 was based upon 15% of his base salary. However, due to TARP regulations, Mr. Delamater was not eligible for non-equity incentive compensation in fiscal 2010. With respect to the Company’s other executive officers, each Executive’s performance was evaluated by the Chief Executive Officer. Short term and long term objectives were established through the annual PDP. PDP objectives were individualized for each Executive, depending on their role and responsibilities.  |

|  93 |
|----------|
|     |   The Compensation Committee (the "Committee"), together with all other independent members of the Board, established a 2010 target incentive payout of 10% of base salary for each executive officer with the understanding that the Committee and Board members would make a final determination as to the actual amount of payout based on their interpretation of actual fiscal year results. The Committee completed their review in August of 2010 and determined that the following goals were met for fiscal 2010; maintain balance sheet integrity (25%); enhance shareholder value (20%); achieve satisfactory regulatory results (20%); continue to support and maintain the Shared Values culture (5%), for a total achievement of 70% of the established goals. Of the possible 10% of base salary incentive, the Committee approved a payout of 8% to each executive officer, with the reduction noted as related to the failure to exceed budgeted results and show an increase in products and services per household. They did, however, acknowledge that this year’s results were impacted by merger related activities, therefore, they arrived at the final 8% with a statement of support and appreciation. The incentive payouts were as follows: Mr. Johnson $12,000; Mr. Blais $12,000; Mr. Lazenby $13,000; Ms. Couper $10,000, Mr. Linscott $8,000. Personnel and Compensation Committee ReportThe Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management and, based on such review and discussions, the Personnel Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this 10K. |
|     |  This report is respectfully submitted by:PERSONNEL AND COMPENSATION COMMITTEE  |
|     | James P. Day, ChairmanConrad L Ayotte | Judith E. WallingfordStephen W. Wight |
|     |  COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION During the 2010 fiscal year, Messrs. Ayotte, Rosmarin, Wallingford and Wight served on the Compensation Committee. None of the individuals is, or has been, an officer or an employee of the Company or the Bank. No member of the Compensation Committee had any relationship requiring disclosure by the Company under the proxy rules promulgated under the Exchange Act the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Director CompensationDirectors of the Company also are directors of Northeast Bank (the “Bank”). Each director receives a combined annual retainer from the Company and the Bank in the amount of $4,000, and the retainer for the chairman and vice chairman was $9,800 and $6,100, respectively. In addition, each director receives $600 for each meeting of the Board of Directors of the Company or the Bank that they attend, and an additional $300 for each committee meeting that they attend. As of August 2007, management directors do not receive compensation for services rendered as directors.  See the summary compensation table for directors fees that were paid to management directors.  |

|                  |  Name | Fees Earned orPaid in cash |  Total |    |
|-----------------------|------------|----------------------------|-------------|--------------|
| Judith E. Wallingford | $21,800    | $21,800                    |        |
| John Rosmarin         | $18,100    | $18,100                    |        |
| Conrad L. Ayotte      | $16,900    | $16,900                    |        |
| James P. Day          | $16,300    | $16,300                    |        |
| Ronald J. Goguen      | $16,300    | $16,300                    |        |
| Philip C. Jackson     | $17,200    | $17,200                    |        |
| John C. Orestis       | $16,900    | $16,900                    |        |
| John H. Schiavi       | $16,300    | $16,300                    |        |
| Stephen W. Wight      | $15,700    | $15,700                    |        |

|  94 |
|----------|
| Item 12. |  Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters  |

|                                     | SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERSThe following table sets forth certain information regarding the beneficial ownership of the Company’s issued and outstanding Common Stock as of August 31, 2010, by: (i) each director and nominee for director of the Company, (ii) each of the Named Executive Officers, (iii) all directors and executive officers of the Company as a group, and (iv) each person known to the Company beneficially owning more than 5% of the outstanding Common Stock. Except as otherwise indicated, the persons named in the table have sole voting and investment power with respect to all of the Common Stock owned by them.  |
|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Amount and Nature of Beneficial Ownership |
| Name of Beneficial Owner                 | Number of Shares (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Percent of Class (2) |
| Directors and Certain Executive Officers |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Judith E. Wallingford                    | 7,500 (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  * |
| James D. Delamater                       | 71,961 (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 3.08% |
| Conrad L. Ayotte                         | 6,742                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | * |
| Marcel C. Blais                          | 2,947                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | * |
| Leslie L. Couper                         | 300                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | * |
| James P. Day                             | 3,325                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  * |
| Ronald J. Goguen                         |  2,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | * |
| Philip C. Jackson                        | 21,038 (6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | * |
| Robert S. Johnson                        | 751                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | * |
| Pender J. Lazenby                        | 1,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | * |
| Craig O. Linscott                        | 10,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | * |
| John C. Orestis                          | 15,550                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | * |
| John Rosmarin                            | 8,500 (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | * |
| John H. Schiavi                          | 18,174 (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | * |
| Stephen W. Wight                         | 20,255 (7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  * |

|                                                                                                                          | All directors and executive officers as a group (15 persons)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 190,043(8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 8.12%  |
|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Other Beneficial Holders                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Albert H. Desnoyers (9)  1626 Regatta Drive  Amelia, FL  32034                             | 199,041                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 8.54%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Tontine Financial Partners, LP (10)  200 Park Avenue, Suite 3900  New York, NY 10166                 | 213,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 9.16%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Sandler O’Neill Asset Management LLC (11)  780 Third Avenue, 30th Floor  New York, NY 10017    | 127,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 5.45%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| James W. Nichols d/b/a Nichols Investment Management (12)  175 Exchange Street  Bangor, Maine 04402  | 175,275                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 7.52%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                          | Thompson Hortsmann & Bryant, Inc. (13)Park 80 West Plaza One  SaddleBrook, NJ 07663                                                                                                                                                                                                                                                                                                                                                                                                                              | 93,822                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 4.02%  |
|                                                                                                                          | *Less than 1%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|  95                                                                                                                      |
|                                                                                                                          | (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | In accordance with Rule 13d-3 promulgated pursuant to the Exchange Act, a person is deemed to be the beneficial owner of a security for purposes of the rule if he or she has or shares voting power or dispositive power with respect to such security or has the right to acquire such ownership within sixty days. As used herein, “voting power” is the power to vote or direct the voting of shares, and “dispositive power” is the power to dispose or direct the disposition of shares, irrespective of any economic interest therein.  |
| (2)                                                                                                                           | In calculating the percentage ownership for a given individual or group, the number of shares of Common Stock outstanding includes unissued shares subject to options, warrants, rights or conversion privileges exercisable within sixty days of the record date held by such individual or group, but are not deemed outstanding by any other person or group.                                                                                                                                                               |
| (3)                                                                                                                           | Includes 1,000 shares of Common Stock that may be acquired pursuant to currently exercisable options.                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (4)                                                                                                                           | Includes 5,000 shares of Common Stock that may be acquired pursuant to currently exercisable options.                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (5)                                                                                                                           | Includes 1,000 shares of Common Stock that may be acquired pursuant to currently exercisable options. Includes 5,375 shares of Common Stock held by Mr. Rosmarin’s spouse as to which Mr. Rosmarin disclaims beneficial ownership.                                                                                                                                                                                                                                                                             |
| (6)                                                                                                                           | Includes 5,850 shares of Common Stock held by Mr. Jackson's spouse and 1,350 shares of Common Stock held by his children, as to which Mr. Jackson disclaims beneficial ownership.                                                                                                                                                                                                                                                                                                                                         |
| (7)                                                                                                                           | Includes 1,000 shares of Common Stock that may be acquired pursuant to currently exercisable options. Includes 7,350 shares of Common Stock held by Mr. Wight’s spouse as to which Mr. Wight disclaims beneficial ownership, and 2,250 shares of Common Stock held by his children.                                                                                                                                                                                                                            |
| (8)                                                                                                                           | Includes 9,000 shares of Common Stock subject to options which may be acquired by such directors and executive officers as a group pursuant to currently exercisable options.                                                                                                                                                                                                                                                                                                                                                  |
| (9)                                                                                                                           | The ownership information set forth herein is based in its entirety on material contained in a Schedule 13D, dated March 6, 1995, filed with the SEC by Mr. Desnoyers, as adjusted to reflect the payment of a 50% stock dividend in December 1997.                                                                                                                                                                                                                                                                  |
| (10)                                                                                                                          | The ownership information set forth herein is based in its entirety on material contained in Amendment No. 1 to Schedule 13G, dated December 31, 2006, filed with the SEC by a group consisting of Tontine Financial Partners, LP (“TFP”), Tontine Management, LLC the general partner of TFP (“TM”), and Jeffrey L. Gendell, the managing member of TM.                                                                                                                                               |
| (11)                                                                                                                          | The ownership information set forth herein is based in its entirety on material contained in a Schedule 13D, dated October 9, 2003, filed with the SEC consisting of a group partnerships of which Sandler, O’Neill Asset Management, Inc. (“SOAM”), is the sole general partner and to which SOAM Holdings, LLC a Delaware limited liability company (“Holdings”), provides administrative and management services, and Terry Maltese, the managing member and president of SOAM and Holdings.  |
| (12)                                                                                                                          | The ownership information set forth herein is based in its entirety on material contained in a Schedule 13G/A, dated February 28, 2009, filed with the SEC by James Williams Nichols, doing business as Nichols Investment Management (“NIM”). NIM discloses that it holds 175,275 shares on behalf of its advisory clients and has sole power to vote 11,653 shares and sole power to dispose of 175,275 shares.                                                                                                  |

|   |  (13) |  The ownership information set forth herein is based in entirety on material contained in Schedule 13G, dated February 13, 2009, filed with the SEC . |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     | The following table provided information about the Company's Common Stock that may be issued upon the exercise of stock options under all of the registrant's equity compensation plans in effect as of June 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item 13. | Certain Relationships and Related Transactions, and Director Independence                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|     |  Northeast Bank Insurance Group, Inc. (“NBIG”) exercised its option to purchase the building occupied by the Spence & Matthews Insurance Agency located at 4 Sullivan Square, Berwick, Maine from a senior officer of NBIG.  The transaction closed on June 24, 2009.  The option price of $375,000 was determined at the time NBIG acquired the Spence & Matthews Agency in November 2007.  The purchase transaction was subject to approval by the Board of Directors of Northeast Bank, the sole owner of NBIG. The Company’s Code of Ethics provides guidance on transactions with related persons.  Any transaction with a related person must be reviewed and approved  by the full Board and determined to be “arms length”. The Bank has had, and expects to have in the future, various loans and other banking transactions in the ordinary course of business with the directors, executive officers, and principal shareholders of the Bank and the Company (or associates of such persons). All such transactions: (i) have been and will be made in the ordinary course of business; (ii) have been and will be made on substantially the same terms, including interest rates and collateral on loans, as those prevailing at the time for comparable transactions with unrelated persons; and (iii) in the opinion of management, do not and will not involve more than the normal risk of collectability or present other unfavorable features.  |

|  96 |
|----------|
| Item 14. | Principal Accounting Fees and ServicesThe firm of Shatswell, MacLeod & Company, PC registered public accounting firm (“Shatswell”) has served as the Company’s auditors for the fiscal years ended June 30, 2008, 2009 and 2010.  Selection of our auditors for the year ending June 30, 2011 is subject to the pending merger. Shatswell is expected to have a representative at the Annual Meeting who will have an opportunity to make a statement if they so desire and be available to respond to appropriate questions from shareholders attending the meeting. Audit and Non-Audit FeesThe following table presents fees for professional audit services rendered by Shatswell for the audit of the Company’s annual financial statements for the years ended June 30, 2010 and June 30, 2009 and fees billed for other services rendered by Shatswell during these periods.  |

|                     |                                                    | 2010                    | 2009   |
|--------------------------|---------------------------------------------------------|----------------------------------------|------------------|
| Audit Fees: (1)          | $107,082                                                | $104,652                               |
| Audit-Related Fees: (2)  | $8,749                                                  | $8,173                                 |
| Tax Fees: (3)            | $12,417                                                 | $ 22,951                               |
|  All Other Fees (4) |         $49,000 |       $0 |

|   | (1)                                                                                                         | Audit fees consistent principally of audit work performed on the consolidated financial statements, as well as work generally only the independent auditors can reasonably be expected to provide, such as statutory audits. |
|--------|-------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)    | Audit related fees consisted principally of audits of employee benefit plans in 2009 and 2008 fiscal years. |
| (3)    | Tax fees consisted principally of assistance with tax compliance, preparation of returns, and tax planning. |
| (4)    | Fees related to the pending merger with FHB Formation, LLC.                                            |

|   | Consistent with SEC policies regarding auditor independence, the Audit Committee has responsibility for appointing, setting compensation and overseeing the work of the independent auditor. In recognition of this responsibility, the Audit Committee has established a policy to pre-approve all audit and permissible non-audit services provided by the independent auditor. Prior to engagement of the independent auditor for the next year’s audit, management will submit to the Audit Committee a list of services and related fees expected to be rendered during that year within each of four categories of services for approval.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | *   | Audit services include audit work performed on the financial statements, as well as work that generally only the independent auditor can reasonable be expected to provide, including comfort letters, statutory audits, and discussions surrounding the proper application of financial accounting and/or reporting standards.                                                                                         |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | *   | Audit-Related services are for assurance and related services that are traditionally performed by the independent auditor, including due diligence related to mergers and acquisitions, employee benefit plan audits, and special procedures required to meet certain regulatory requirements.                                                                                                                          |
|   | *        | Tax services include all services, except those services specifically related to the audit of the financial statements, performed by the independent auditor’s tax personnel, including tax analysis, assisting with coordination of execution of tax related activities, primarily in the area of corporate development, supporting other tax related regulatory requirements and tax compliance and reporting.  |
|   | *        | Other fees are those associated with services not captured in the other categories. The Company generally does not request such services from the independent auditor.                                                                                                                                                                                                                                                  |

|   | Prior to engagement, the Audit Committee pre-approves independent auditor services within each category. The fees are budgeted, and the Audit Committee requires the independent auditor and management to report actual fees compared to the budget periodically throughout the year by category of service. During the year, circumstances may arise when it may become necessary to engage the independent auditor for additional services not contemplated in the original pre-approval categories. In those instances, the Audit Committee requires specific pre-approval before engaging the independent auditor. The Audit Committee may delegate pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decision to the Audit Committee at its next scheduled meeting. Audit Committee ReportThe audited financial statements of the Company, at and for the three year period ended on June 30, 2010, are included in this Frm 10-K. The Audit Committee oversees the Company’s financial reporting process and the independent audit of the annual consolidated financial statements. The Audit Committee is governed by a formal written audit committee charter. The Audit Committee reviews and reassesses the adequacy of the charter at least annually. The Company, acting through its management and Board of Directors, has the primary responsibility for the financial statements and reporting process, including the systems of internal accounting controls. Management is responsible for the preparation, presentation, and integrity of the Company’s financial statements, the financial reporting process, and internal controls. Shatswell, the independent auditors engaged by the Company, is responsible for auditing the Company’s annual financial statements in accordance with generally accepted auditing standards and expressing an opinion on the conformity of those audited financial statements under the standards of the Public Company Accounting Oversight Board (United States) (PCAOB). In performing its oversight function, the Audit Committee has reviewed the audited financial statements with the Company’s management, including a discussion of the quality, not just the acceptability, of the accounting principles used, the reasonableness of significant judgments, and the clarity of disclosures in the financial statements. The Audit Committee also has reviewed with Shatswell its judgments as to the quality and acceptability of the Company’s accounting principles. Management and Shatswell have advised the Audit Committee that the Company’s consolidated financial statements were fairly stated in accordance with generally accepted accounting principles. The Audit Committee discussed with Shatswell matters covered by Statement on Auditing Standards No. 114 (The Auditor’s Communication With Those Charged With Governance).  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  97 |
|----------|
|     | The Audit Committee also discussed with Shatswell its independence from the Company and management, including those matters in Independence Standards Board Standard No. 1 (Independence Discussions with Audit Committees) and the letter and disclosures required from Shatswell to the Audit Committee pursuant to Standard No. 1. The Audit Committee confirmed that Shatswell had not provided any non-audit services to the Company during the 2010 fiscal year, with the exception of permitted tax compliance services and services related to the pending merger. In addition, the Audit Committee discussed with its internal auditors and Shatswell the overall scope and plans for their respective audits. The Audit Committee conferred with Shatswell, with and without management present, to discuss the results of its examinations, its evaluations of the Company’s internal controls, and the overall quality of the Company’s financial reporting. The Audit Committee reviewed and discussed the audited consolidated financial statements of Northeast Bancorp as of and for the year ended June 30, 2010 with management and Shatswell. Based on the reviews and the discussions referred to above, in reliance on management and Shatswell, and subject to the limitations of the role of the Audit Committee, the Audit Committee recommended to the Board of Directors, and the Board of Directors has approved, the inclusion of the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2010, for filing with the Securities and Exchange Commission. |
|     |  SUBMITTED BY THE FISCAL 2010 AUDIT COMMITTEE  |
|     | Conrad Ayotte, ChairmanJames P. Day | Judith E. WallingfordRonald J. Goguen |

| Item 15.                                            | Exhibits, Financial Statement Schedules                                                                                                                                                                                                                                        |
|-----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         (a) | List of Financial Statements Filed as Part of This Report                                                                                                                                                                                                                           |
|                                                | The following financial statements are submitted herewith in response to Part II Item 8:                                                                                                                                                                                            |
|                                                | Consolidated Balance Sheets as of June 30, 2010 and 2009                                                                                                                                                                                                                            |
|                                                | Consolidated Statements of Income for the years ended June 30, 2010, 2009 and 2008                                                                                                                                                                                                  |
|                                                | Consolidated Statements of Changes in Stockholders' Equity for the years ended June 30, 2010, 2009 and 2008                                                                                                                                                                         |
|                                                | Consolidated Statements of Cash Flows for the years ended June 30, 2010, 2009 and 2008                                                                                                                                                                                              |
|         (b) | Exhibits                                                                                                                                                                                                                                                                            |
|                                                | The exhibits listed below are filed herewith or are incorporated herein by reference to other filings.                                                                                                                                                                              |
| 2.1                                                 | Agreement and Plan of Merger between Northeast Bancorp and FHB Formation, LLC incorporated by reference to Exhibit 2.1 to Northeast Bancorp's Form 8-K filed with Securities and Exchange Commission on March 31, 2010.                                                        |
| 3.1                                                 | Conformed Articles of Incorporation of Northeast Bancorp, incorporated by reference to Exhibit 3.1 to Northeast Bancorp’s Annual Report on Form 10-K for year ended June 30, 2007.                                                                                       |
| 3.2                                                 | Bylaws of Northeast Bancorp, incorporated by reference to Exhibit 3.2 to Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                                                                                |
| 4.1                                                 | Form of Indenture with respect to Northeast Bancorp's Junior Subordinated Debentures, incorporated by reference to Exhibit 4.1 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission on October 12, 1999.    |
| 4.2                                                 | Form of Junior Subordinated Debentures (included in Exhibit 4.1), incorporated by reference to Exhibit 4.2 to Northeast Bancorp's Registration Statement of Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission on October 12, 1999.                        |
| 4.3                                                 | Trust Agreement of NBN Capital Trust (including Certificate of Trust of NBN Capital Trust), incorporated by reference to Exhibit 4.3 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission October 12, 1999. |
| 4.4                                                 | Form of Amended and Restated Trust Agreement of NBN Capital Trust, incorporated by reference to Exhibit 4.4 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission on October 12, 1999.                       |
| 4.5                                                 | Form of Preferred Securities of NBN Capital Trust (included in Exhibit 4.4), incorporated by reference to Exhibit 4.5 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission on October 12, 1999.             |
| 4.6                                                 | Form of Guarantee Agreement, incorporated by reference to Exhibit 4.6 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission on October 12, 1999.                                                             |
| 10.1                                                | 1987 Stock Option Plan of Northeast Bancorp (formerly known as Bethel Bancorp), incorporated by reference to Bethel Bancorp's Registration Statement on Form S-1 (No. 33-12815), filed with the Securities and Exchange Commission.                                                 |
| 10.2                                                | 1989 Stock Option Plan of Northeast Bancorp (formerly known as Bethel Bancorp) incorporated by reference to Exhibit 10.2 Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                                     |
| 10.3                                                | 1992 Stock Option Plan of Northeast Bancorp (formerly known as Bethel Bancorp) incorporated by reference to Exhibit 10.3 Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                                     |
| 10.4                                                | 1999 Stock Option Plan of Northeast Bancorp, incorporated by reference to Exhibit 10.4 Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                                                                       |
| 10.5                                                | 2001 Stock Option Plan of Northeast Bancorp incorporated by reference to Northeast Bancorp's Registration Statement on Form S-8, filed with the Securities and Exchange Commission on March 31, 2002.                                                                               |
| 11                                                  | Statement regarding computation of per share earnings is submitted herewith as Exhibit 11.                                                                                                                                                                                          |
| 14                                                  | Code of Ethics.                                                                                                                                                                                                                                                                     |
| 21                                                  | A list of subsidiaries of Northeast Bancorp.                                                                                                                                                                                                                                        |
| 23                                                  | The Consent of Shatswell, MacLeod & Company, P.C.                                                                                                                                                                                                                               |
| 31.1                                                | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a)).                                                                                                                                                            |
| 31.2                                                | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a)).                                                                                                                                                            |
| 32.1                                                | Certificate of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,  as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(b)). **                                                                     |
| 99.1                                                | Certification of the CEO pursuant to Section 111(B)(4).                                                                                                                                                                                                                             |
| 99.2                                                | Certification of the CFO pursuant to Section 111(B)(4).                                                                                                                                                                                                                             |
|                                                |                                                                                                                                                                                                                                                                                |
|                                                | With the exception of the information expressly incorporated herein by reference, the Company's 2010 Proxy Statement for the 2010 Annual Meeting of Shareholders is not to be deemed filed as part of this Annual Report on Form 10-K                                               |

| Date:  September 27, 2010 | By:  /s/ James D. Delamater |
|-------------------------------------|---------------------------------------|
|                                | James D. Delamater, President         |

|            Name |           Title  |           Date |
|------------------------------------------------------------------------|--------------------------------------------------------------------|------------------------------------------------------------------|
| /s/ Conrad L. AyotteConrad L. Ayotte                                   | Director                                                           | September 27, 2010                                               |
|                                                                   |                                                               |                                                             |
| /s/ James P. DayJames P. Day                                           | Director                                                           | September 27, 2010                                               |
| /s/ James D. DelamaterJames D. Delamater                               | Director,President and CEO(Principal Executive Officer)            | September 27, 2010                                               |
| /s/ Ronald J. GoguenRonald J. Goguen                                   | Director                                                           | September 27, 2010                                               |
| /s/ Philip C. JacksonPhilip C. Jackson                                 | Director                                                           | September 27, 2010                                               |
| /s/ Pender J. LazenbyPender J. Lazenby                                 | Director                                                           | September 27, 2010                                               |
| /s/ John C. OrestisJohn C. Orestis                                     | Director                                                           | September 27, 2010                                               |
| /s/ John RosmarinJohn Rosmarin                                         | Vice-Chairman of the Board                                         | September 27, 2010                                               |
| /s/ John SchiaviJohn Schiavi                                           | Director                                                           | September 27, 2010                                               |
| /s/ Judith E. WallingfordJudith E. Wallingford                         | Chairman of the Board                                         | September 27, 2010                                               |
| /s/ Robert S. JohnsonRobert S. Johnson                                 | Chief Financial Officer(Principal Financial andAccounting Officer) | September 27, 2010                                               |

| ExhibitNumber | Exhibit                                                                                                                                                                                                                                                            |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1           | Agreement and Plan of Merger between Northeast Bancorp and FHB Formation, LLC incorporated by reference to Exhibit 2.1 to Northeast Bancorp's Form 8-K filed with Securities and Exchange Commission on March 31, 2010.                                       |
| 3.1           | Conformed Articles of Incorporation of Northeast Bancorp, incorporated by reference to Exhibit 3.1 to Northeast Bancorp’s Annual Report on Form 10-K for year ended June 30, 2007.                                                                           |
| 3.2           | Bylaws of Northeast Bancorp, incorporated by reference to Exhibit 3.2 to Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                                                                    |
| 4.1           | Form of Indenture with respect to Northeast Bancorp's Junior Subordinated Debentures, incorporated by reference to Exhibit 4.1 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission.       |
| 4.2           | Form of Junior Subordinated Debentures (included in Exhibit 4.1), incorporated by reference to Exhibit 4.2 to Northeast Bancorp's Registration Statement of Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission.                           |
| 4.3           | Trust Agreement of NBN Capital Trust (including Certificate of Trust of NBN Capital Trust), incorporated by reference to Exhibit 4.3 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission. |
| 4.4           | Form of Amended and Restated Trust Agreement of NBN Capital Trust, incorporated by reference to Exhibit 4.4 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission.                          |
| 4.5           | Form of Preferred Securities of NBN Capital Trust (included in Exhibit 4.4), incorporated by reference to Exhibit 4.5 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853), filed with the Securities and Exchange Commission.                |
| 4.6           | Form of Guarantee Agreement, incorporated by reference to Exhibit 4.6 to Northeast Bancorp's Registration Statement on Form S-2 (No. 333-88853-01), filed with the Securities and Exchange Commission.                                                             |
| 10.1          | 1987 Stock Option Plan of Northeast Bancorp (formerly known as Bethel Bancorp), incorporated by reference to Bethel Bancorp's Registration Statement on Form S-1 (No. 33-12815), filed with the Securities and Exchange Commission.                                |
| 10.2          | 1989 Stock Option Plan of Northeast Bancorp (formerly known as Bethel Bancorp) incorporated by reference to Exhibit 10.2 Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                    |
| 10.3          | 1992 Stock Option Plan of Northeast Bancorp (formerly known as Bethel Bancorp) incorporated by reference to Exhibit 10.3 Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                    |
| 10.4          | 1999 Stock Option Plan of Northeast Bancorp, incorporated by reference to Exhibit 10.4 Northeast Bancorp’s Annual Report on Form 10-K for the year ended June 30, 2007.                                                                                      |
| 10.5          | 2001 Stock Option Plan of Northeast Bancorp incorporated by reference to Northeast Bancorp's Registration Statement on Form S-8, filed with the Securities and Exchange Commission on March 31, 2002.                                                              |
| 11            | Statement regarding computation of per share earnings is submitted herewith as Exhibit 11.                                                                                                                                                                         |
| 14            | Code of Ethics                                                                                                                                                                                                                                                     |
| 21            | A list of subsidiaries of Northeast Bancorp.                                                                                                                                                                                                                       |
| 23            | The Consent of Shatswell, MacLeod & Company, P.C.                                                                                                                                                                                                              |
| 31.1          | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a)).                                                                                                                                           |
| 31.2          | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a)).                                                                                                                                           |
| 32.1          | Certificate of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,  as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(b)).                                                       |
| 99.1          | Certification of the CEO pursuant to Section 111(B)(4).                                                                                                                                                                                                       |
| 99.2          | Certification of the CFO pursuant to Section 111(B)(4).                                                                                                                                                                                                            |