| FOR IMMEDIATE RELEASE  | Contact:   Jim DelamaterPresident & CEONortheast Bancorp**Northeast Bancorp Announces 3rd Quarter Earnings andDividend,Earnings Increase Over Same Period Last Year**
AUBURN, MAINE - 4/21/2003 - Northeast Bancorp (AMEX "NBN") announced that earnings for the third quarter ended March 31, 2003, were $1,076,026 or $0.40 per diluted share. Earnings for the same period last year were $963,697 or $0.36 per diluted share. In addition, the Board of Directors, declared a regular quarterly dividend of $0.08 per outstanding share payable on May 23, 2003, to stockholders of record on May 2, 2003.

Earnings for the nine months ended March 31, 2003, were $2,894,947 or $1.08 per diluted share, compared with $2,924,422 or $1.10 per diluted share for the same period last year. These results were in line with management's expectations and consistent with the Company's desire to balance the need for the maintenance of a high level of asset quality, well managed interest rate risk position, and ongoing investment into the development of shareholder value.

The Company recently expanded into the Portland area with its opening of a Commercial Banking Center and has relocated its investment division, Northeast Financial Services, to a new Falmouth location. Although these investments in our continued growth and expansion are expected to continue to have a negative impact on short term results; the Company believes that its investment offers potential for increased revenue in the future.

Jim Delamater, President & CEO commented, "We are very pleased to be able to deliver quality earnings in light of our decision to continue to maintain an asset sensitive interest rate risk position and to adhere to traditional credit and pricing standards.  While the current low interest rate environment is conducive to the sale of secondary market loans and, therefore, an excellent environment for the generation of fee income from the sale of mortgage loans to the secondary market, it has put pressure on net interest income.  We remain convinced that our decision to remain asset sensitive is best suited to the protection of our balance sheet and is likely to result in increases to revenue if rates rise in the future. In the event that interest rates remain low, we shall continue to benefit from fee income related to the sale of loans. While this level of income may not be sufficient to offset the reduction in net interest income from earning assets, the long term health of our organization is far more important to us than the creation of short-term results."

Northeast Bank and Northeast Financial Services, Inc., wholly owned subsidiaries of Northeast Bancorp, combine to deliver a vast array of financial products and services, including traditional bank products, investments, insurance, trust services and financial planning services via 14 office locations throughout western, central and mid-coastal Maine.

The Company maintains a well diversified loan portfolio of approximately $384 million and management believes that its overall asset quality is in good condition.  Reserves for loan losses are $3,905,000 as of March 31, 2003, and management deems this level to be adequate to protect against loan losses.  Total assets, as of March 31, 2003, are $469,714,746 and book value per share is $13.89.

Northeast derives revenue from a combination of traditional net interest income and fees associated with the delivery of multiple financial products and services. President Delamater added, "Our organization continues to focus on the delivery of multiple products and services to each and every customer we serve and to rely on our needs-based method to make certain that each and every product is well matched to the customer's personal goals and objectives.  This high level of product diversity allows us to generate multiple streams of income and to greatly enhance the overall profitability of each relationship. We currently serve in excess of 20,000 households in our market area and continue to strive to deliver a high level of personalized service so as to successfully develop long term and mutually profitable relationships."

The Headquarters for Northeast Bancorp is at 158 Court Street in Auburn, Maine. Northeast management encourages present and prospective shareholders to call Jim Delamater, President & CEO, if they desire to receive additional information or, in general, wish to discuss the Company and/or its products and services or ongoing efforts to promote and develop shareholder value. Jim can be reached at 1-800-284-5989, or at jimdelamater@northeastbank.com. Management also suggests that any person interested in utilizing the services of Northeast Bancorp and its subsidiaries or learning more about the Company should access its web site at www.northeastbank.com.

**NORTHEAST BANCORP**
(Dollars in      Thousands, Except Per Share and SharesOutstanding      Data)  
   Three Months Ended
  
 Nine Months Ended
  March      31,% March      31,%    2003       2002   Change    2003       2002   ChangeSelected Financial Information                   Income Statement Data                 Interest Income$      6,975 $      7,493-7% $      21,734 $      24,102-10%Interest Expense3,336 3,935-15% 10,541 13,161-20%Net Interest Income3,639 3,5582% 11,193 10,9412%Provision for Loan Losses225 2117% 916 63245%Net Interest Income after         
     Provision for      Loan Losses3,414 3,3472% 10,277 10,3090%Non-interest Income1,524 1,25022% 3,993 3,15127%Non-interest Expense3,344 3,1227% 9,954 8,97711%Operating Income before Income      Tax1,594 1,4758% 4,316 4,483-4%Income Tax Expense518 5111% 1,421 1,559-9%Net Income$      1,076 $      96412% $      2,895 $      2,924-1%                              Per share data         Basic earning per common share$      0.41 $      0.3711% $      1.09 $      1.13-4%Diluted earnings per common      share$      0.40 $      0.3611% $      1.08 $      1.10-2%Weighted Average Shares      Outstanding         
     Basic
2,645,827 2,594,6662% 2,646,954 2,583,3122%
     Diluted 
2,687,411 2,669,0161% 2,686,567 2,660,0581%          Book Value Per Share13.89 12.69  13.89 12.69 Tangible Book Value Per Share13.49 12.19  13.49 12.19           Net interest margin3.43% 3.39%  3.55% 3.49% Net interest spread3.08% 2.96%  3.16% 2.98% Return on average assets      (annualized)0.90% 0.89%  0.87% 0.90% Return on equity (annualized)11.70% 11.72%  10.69% 12.07% Tier I leverage ratio (Bank)8.67% 8.46%  8.67% 8.46% Tier I risk-based capital ratio      (Bank)11.39% 11.74%  11.39% 11.74% Total risk-based capital ratio      (Bank)12.00% 12.38%  12.00% 12.38% Efficiency ratio65% 65%  66% 64% Nonperforming loans1,395 1,617  1,395 1,617 Total nonperforming assets1,643 2,057  1,643 2,057 Nonperforming loans as a % of      total loans0.36% 0.44%  0.36% 0.44% Nonperforming assets as a % of      total assets0.35% 0.47%  0.35% 0.47%                      March      31,          2003       2002     Change   Balance Sheet Highlights                   Investment Securities$      30,520 $      43,178  -29%   Loans384,000 366,371  5%   Total Assets469,715 439,448  7%             Deposits         
      NOW and Money      Market96,519 73,663  31%         Savings24,224 21,128  15%         Certificates      of Deposits145,236 151,777  -4%        Brokered      Deposits26,625 29,027  -8%         Noninterest-bearing      Deposits37,873 28,120  35%        Total      Deposits330,477 303,715  9%             Borrowings93,377 91,143  2%   Shareholders' Equity36,743 33,590  9%             Shares outstanding2,645,827 2,647,712  0%    |
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