Page 1



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 10 Q

X Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

|For the quarter ended | March 31, 2003
|--------------------- | --------------

Or

___ Transition report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the transition period for _______________ to _______________

|Commission File Number | 1-14588
|---------------------- | -------

Northeast Bancorp
__________________________________________________________________________________________
(Exact name of registrant as specified in its charter)

|Maine
___________________________________                           | 01-042506
____________________________________
|------------------------------------------------------------------- | ----------------------------------------------
|(State or other jurisdiction of incorporation or organization)      | (I.R.S. Employer Identification No.)          
|158 Court Street, Auburn, Maine
___________________________________ | 04210
____________________________________    
|(Address of Principal executive
 offices)                           | (Zip Code)                                    

(207) 777-6411
___________________________________________________________________________
Registrant's telephone number, including area code

Not Applicable
___________________________________________________________________________
Former name, former address and former fiscal year, if changed since last
report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subjected to such filing requirements for the past 90 days.  Yes X  No ___

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes __ No  X

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.  As
of  May 12, 2003, the registrant had outstanding 2,646,827 shares of common stock, $1.00 par value per share.

Page 2

|Part I.  | Financial Information
|-------- | ---------------------
|         | Item 1.              
|         |                      
|         |                      
|         |                      
|         |                      
|         |                      
|         |                      
|         | Item 2.              
|         | Item 3.              
|         | Item 4.              
|Part II. | Other Information    
|         | Item 1.              
|         | Item 2.              
|         | Item 3.              
|         | Item 4.              
|         | Item 5.              
|         | Item 6.              



|                                                                                   |                        |  | Page 3                
|---------------------------------------------------------------------------------- | ---------------------- |  | ----------------------
|                                                                                   |                        |  |                       
|PART 1 - FINANCIAL INFORMATION                                                    
|                                                                                   |                        |  |                       
|Item 1. Financial Statements                                                       |                        |  |                       
|                                                                                   |                        |  |                       
|NORTHEAST BANCORP AND SUBSIDIARIES                                                
|Consolidated Balance Sheets                                                       
|(Unaudited)                                                                       
|                                                                                   |                        |  |                       
|                                                                                   | March 31,              |  | June 30,              
|                                                                                   | 2003                   |  | 2002                  
|                                                                                   | ____________________   |  | ____________________  
|Assets                                                                             |                        |  |                       
|Cash and due from banks                                                            | $    
      12,983,159 |  | $    
      14,343,009
|Interest bearing deposits                                                          | 754,336                |  | 674,083               
|Federal Home Loan Bank overnight deposits                                          | 17,100,000             |  | 3,732,000             
|Available for sale securities                                                      | 30,520,526             |  | 32,440,386            
|Loans held for sale                                                                | 1,918,529              |  | 611,210               
|                                                                                   |                        |  |                       
|Loans                                                                              | 383,999,661            |  | 374,634,119           
|Less allowance for loan losses                                                     | 3,905,000              |  | 3,496,000             
|                                                                                   | ____________________   |  | ____________________  
|Net loans                                                                          | 380,094,661            |  | 371,138,119           
|                                                                                   |                        |  |                       
|Premises and equipment, net                                                        | 4,178,144              |  | 4,150,197             
|Federal Home Loan Bank stock                                                       | 6,644,500              |  | 6,644,500             
|Aquired assets - net                                                               | 248,280                |  | 586,642               
|Goodwill                                                                           | 407,897                |  | 407,897               
|Intangible assets, net of accumulated
      amortization of $1,554,414 at 03/31/03 |                        |  |                       
|and $1,355,010 at 6/30/02                                                          | 650,314                |  | 849,718               
|Bank Owned Life Insurance                                                          | 7,334,547              |  | -                     
|Other assets                                                                       | 6,879,853              |  | 6,638,156             
|                                                                                   | ____________________   |  | ____________________  
|Total Assets                                                                       | $   
      469,714,746 |  | $   
      442,215,917
|                                                                                   | ==================     |  | ==================    
|                                                                                   |                        |  |                       
|Liabilities and Shareholders' Equity                                               |                        |  |                       
|                                                                                   |                        |  |                       
|Liabilities:                                                                       |                        |  |                       
|Deposits                                                                           | $   
      330,477,495 |  | $   
      303,197,646
|Securities Sold Under Repurchase Agreements                                        | 6,621,494              |  | 8,871,642             
|Advances from the Federal Home Loan Bank                                           | 86,204,454             |  | 85,956,608            
|Other Liabilities                                                                  | 2,495,164              |  | 2,286,232             
|                                                                                   | ____________________   |  | ____________________  
|Total Liabilities                                                                  | 425,798,607            |  | 400,312,128           
|                                                                                   |                        |  |                       
|Guaranteed Preferred Beneficial Interest in
      the                              |                        |  |                       
|Company's Junior Subordinated Debentures                                           | 7,172,998              |  | 7,172,998             
|                                                                                   |                        |  |                       
|Shareholders' Equity:                                                              |                        |  |                       
|Preferred stock, cumulative, $1.00 par
      value, 1,000,000 shares authorized    |                        |  |                       
|and none issued and outstanding                                                    | -                      |  | -                     
|Common stock, $1.00 par value, 15,000,000
      shares authorized; 2,786,095       |                        |  |                       
|shares issued and 2,645,827 and 2,647,712
      shares outstanding                 |                        |  |                       
|at 03/31/03 and 06/30/02, respectively                                             | 2,786,095              |  | 2,786,095             
|Additional paid in capital                                                         | 10,376,842             |  | 10,374,285            
|Retained earnings                                                                  | 25,008,207             |  | 22,748,760            
|Accumulated other comprehensive income
      (loss)                                | (38,213)               |  | 178,162               
|                                                                                   | ____________________   |  | ____________________  
|                                                                                   | 38,132,931             |  | 36,087,302            
|Treasury Stock at cost, 140,268 and 138,383
      shares at 03/31/03 and           |                        |  |                       
|6/30/02, respectively.                                                             | (1,389,790)            |  | (1,356,511)           
|                                                                                   | ____________________   |  | ____________________  
|Total Shareholders' Equity                                                         | 36,743,141             |  | 34,730,791            
|                                                                                   | ____________________   |  | ____________________  
|Total Liabilities and Shareholders' Equity                                         | $   
      469,714,746 |  | $   
      442,215,917
|                                                                                   | ==================     |  | ==================    



|                                                          |                          |  | Page 4              
|--------------------------------------------------------- | ------------------------ |  | --------------------
|                                                          |                          |  |                     
|NORTHEAST BANCORP AND SUBSIDIARIES                       
|Consolidated Statements of Income                        
|(Unaudited)                                              
|                                                          |                          |  |                     
|                                                          | Three
      Months Ended
|                                                          | March
      31,         
|                                                          | 2003                     |  | 2002                
|                                                          | ___________________      |  | ___________________ 
|Interest and Dividend Income:                             |                          |  |                     
|Interest on FHLB overnight deposits                       | $      
      13,111     |  | $      
      40,658
|Interest on Loans & Loans held for sale                   | 6,651,462                |  | 6,986,374           
|Interest on available for sale securities                 | 255,541                  |  | 401,851             
|Dividends on Federal Home Loan Bank stock                 | 53,247                   |  | 61,439              
|Other Interest Income                                     | 2,045                    |  | 2,696               
|                                                          | ___________________      |  | ___________________ 
|Total Interest and Dividend Income                        | 6,975,406                |  | 7,493,018           
|                                                          |                          |  |                     
|Interest Expense:                                         |                          |  |                     
|Deposits                                                  | 1,960,417                |  | 2,538,863           
|Repurchase agreements                                     | 16,881                   |  | 21,141              
|Trust preferred securities                                | 176,520                  |  | 176,520             
|Other borrowings                                          | 1,182,718                |  | 1,198,453           
|                                                          | ___________________      |  | ___________________ 
|Total Interest Expense                                    | 3,336,536                |  | 3,934,977           
|                                                          | ___________________      |  | ___________________ 
|                                                          |                          |  |                     
|Net Interest Income                                       | 3,638,870                |  | 3,558,041           
|Provision for loan losses                                 | 225,042                  |  | 210,670             
|                                                          | ___________________      |  | ___________________ 
|Net interest income after Provision for Loan
      Losses | 3,413,828                |  | 3,347,371           
|                                                          |                          |  |                     
|Other Income:                                             |                          |  |                     
|Service charges                                           | 378,818                  |  | 365,917             
|Net securities gains                                      | 404,609                  |  | 360,219             
|Net loss on trading activities                            | (3,118)                  |  | -                   
|Net gain on sale of loans                                 | 232,055                  |  | 146,920             
|Investment/Insurance commissions                          | 311,918                  |  | 299,801             
|Boli cash surrender value                                 | 103,236                  |  | -                   
|Other                                                     | 96,433                   |  | 77,598              
|                                                          | ___________________      |  | ___________________ 
|Total Other Income                                        | 1,523,951                |  | 1,250,455           
|                                                          |                          |  |                     
|Other Expenses:                                           |                          |  |                     
|Salaries and employee benefits                            | 1,876,701                |  | 1,721,747           
|Net occupancy expense                                     | 322,346                  |  | 255,162             
|Equipment expense                                         | 222,270                  |  | 229,153             
|Intangible assets amortization                            | 66,468                   |  | 58,669              
|Other                                                     | 855,640                  |  | 857,834             
|                                                          | ___________________      |  | ___________________ 
|Total Other Expenses                                      | 3,343,425                |  | 3,122,565           
|                                                          | ___________________      |  | ___________________ 
|                                                          |                          |  |                     
|Income Before Income Taxes                                | 1,594,354                |  | 1,475,261           
|Income tax expense                                        | 518,328                  |  | 511,564             
|                                                          | ___________________      |  | ___________________ 
|Net Income                                                | $  
      1,076,026      |  | $     
      963,697
|                                                          | =================        |  | =================   
|Earnings Per Common Share                                 |                          |  |                     
|Basic                                                     | $   
      0.41          |  | $   
      0.37     
|Diluted                                                   | $   
      0.40          |  | $   
      0.36     
|                                                          |                          |  |                     
|Net interest margin                                       | 3.43%                    |  | 3.39%               
|Net interest spread                                       | 3.08%                    |  | 2.96%               
|Return on average assets (annualized)                     | 0.90%                    |  | 0.89%               
|Return on average equity (annualized)                     | 11.70%                   |  | 11.72%              
|Efficiency ratio                                          | 65%                      |  | 65%                 



|                                                          |                         |  | Page 5               
|--------------------------------------------------------- | ----------------------- |  | ---------------------
|                                                          |                         |  |                      
|NORTHEAST BANCORP AND SUBSIDIARIES                       
|Consolidated Statements of Income                        
|(Unaudited)                                              
|                                                          |                         |  |                      
|                                                          | Nine
      Months Ended
|                                                          | March
      31,        
|                                                          | 2003                    |  | 2002                 
|                                                          | ___________________     |  | ___________________  
|Interest and Dividend Income:                             |                         |  |                      
|Interest on FHLB overnight deposits                       | $      
      45,261    |  | $      
      174,191
|Interest on loans & Loans held for sale                   | 20,639,055              |  | 22,649,198           
|Interest on available for sale securities                 | 868,287                 |  | 1,038,083            
|Dividends on Federal Home Loan Bank stock                 | 174,668                 |  | 230,591              
|Other Interest Income                                     | 6,633                   |  | 9,792                
|                                                          | ___________________     |  | ___________________  
|Total Interest and Dividend Income                        | 21,733,904              |  | 24,101,855           
|                                                          |                         |  |                      
|Interest Expense:                                         |                         |  |                      
|Deposits                                                  | 6,335,747               |  | 8,594,593            
|Repurchase agreements                                     | 71,156                  |  | 121,067              
|Trust preferred securities                                | 529,561                 |  | 529,561              
|Other borrowings                                          | 3,604,586               |  | 3,915,959            
|                                                          | ___________________     |  | ___________________  
|Total Interest Expense                                    | 10,541,050              |  | 13,161,180           
|                                                          | ___________________     |  | ___________________  
|                                                          |                         |  |                      
|Net Interest Income                                       | 11,192,854              |  | 10,940,675           
|Provision for loan losses                                 | 915,599                 |  | 631,686              
|                                                          | ___________________     |  | ___________________  
|Net interest income after Provision for Loan
      Losses | 10,277,255              |  | 10,308,989           
|                                                          |                         |  |                      
|Other Income:                                             |                         |  |                      
|Service charges                                           | 1,078,597               |  | 1,103,553            
|Net securities gains                                      | 837,512                 |  | 406,301              
|Net loss on trading activities                            | (671)                   |  | -                    
|Net gain on sale of loans                                 | 610,788                 |  | 523,383              
|Investment/Insurance commissions                          | 1,007,905               |  | 946,688              
|Boli cash surrender value                                 | 206,520                 |  | -                    
|Other                                                     | 251,907                 |  | 171,646              
|                                                          | ___________________     |  | ___________________  
|Total Other Income                                        | 3,992,558               |  | 3,151,571            
|                                                          |                         |  |                      
|Other Expenses:                                           |                         |  |                      
|Salaries and employee benefits                            | 5,569,500               |  | 4,893,590            
|Net occupancy expense                                     | 885,425                 |  | 675,188              
|Equipment expense                                         | 675,014                 |  | 637,752              
|Intangible assets amortization                            | 199,404                 |  | 144,811              
|Other                                                     | 2,624,462               |  | 2,625,901            
|                                                          | ___________________     |  | ___________________  
|Total Other Expenses                                      | 9,953,805               |  | 8,977,242            
|                                                          | ___________________     |  | ___________________  
|                                                          |                         |  |                      
|Income Before Income Taxes                                | 4,316,008               |  | 4,483,318            
|Income tax expense                                        | 1,421,061               |  | 1,558,896            
|                                                          | ___________________     |  | ___________________  
|Net Income                                                | $   
      2,894,947    |  | $   
      2,924,422 
|                                                          | =================       |  | =================    
|Earnings Per Common Share                                 |                         |  |                      
|Basic                                                     | $   
      1.09         |  | $   
      1.13      
|Diluted                                                   | $   
      1.08         |  | $   
      1.10      
|                                                          |                         |  |                      
|Net interest margin                                       | 3.55%                   |  | 3.49%                
|Net interest spread                                       | 3.16%                   |  | 2.98%                
|Return on average assets (annualized)                     | 0.87%                   |  | 0.90%                
|Return on average equity (annualized)                     | 10.69%                  |  | 12.07%               
|Efficiency ratio                                          | 66%                     |  | 64%                  

|Page 6                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------
|NORTHEAST BANCORP AND SUBSIDIARIESConsolidated Statements of Changes in Shareholders' Equity
      Nine Months Ended March 31, 2003 and 2002
      (Unaudited)
|                                                                                                                                                              
|Balance at June 30, 2001                                                                                                                                      
|Net income for the nine months ended 3/31/02                                                                                                                  
|Adjustment of net unrealized loss/gain on securities available for
      sale                                                                                 
|Total Comprehensive income                                                                                                                                    
|                                                                                                                                                              
|Treasury stock purchased                                                                                                                                      
|Dividends on common stock at $0.1875 per share                                                                                                                
|Treasury stock issued in connection with the acquisition of Kendall
      Insurance Company                                                                   
|Common stock issued in connection with employee benefit and stock
      option plans                                                                          
|Balance at March 31, 2002                                                                                                                                     
|                                                                                                                                                              
|Balance at June 30, 2002                                                                                                                                      
|Net income for the nine months ended 3/31/03                                                                                                                  
|Adjustment of net unrealized loss/gain on securities available for
      sale                                                                                 
|Total Comprehensive income                                                                                                                                    
|                                                                                                                                                              
|Dividends on common stock at $0.24per share                                                                                                                   
|Treasury stock purchased                                                                                                                                      
|Common stock issued in connection with employee benefit and stock
      option plans                                                                          
|Balance at March 31, 2003                                                                                                                                     
|                                                                                                                                                              



|                                                                                |                          |  | Page 7                  
|------------------------------------------------------------------------------- | ------------------------ |  | ------------------------
|                                                                                |                          |  |                         
|NORTHEAST BANCORP AND SUBSIDIARIES                                             
|Consolidated Statements of Cash Flows                                          
|(Unaudited)                                                                    
|                                                                                |                          |  |                         
|                                                                                | Nine
      Months Ended 
|                                                                                | March
      31,         
|                                                                                | 2003                     |  | 2002                    
|                                                                                | ___________________      |  | ___________________     
|Cash provided by operating activities                                           | $      
      2,007,690  |  | $      
      2,535,074 
|                                                                                |                          |  |                         
|Cash flows from investing activities:                                           |                          |  |                         
|Available for sale securities purchased                                         | (28,428,027)             |  | (30,739,097)            
|Available for sale securities matured                                           | 3,396,325                |  | 4,335,811               
|Available for sale securities sold                                              | 27,343,107               |  | 3,559,529               
|Net change in loans                                                             | (10,371,371)             |  | 13,191,070              
|Net capital expenditures                                                        | (465,015)                |  | (564,012)               
|Proceeds from sale of acquired assets                                           | 1,083,737                |  | 815,419                 
|Real estate held for investment sold                                            | 54,631                   |  | 61,416                  
|Acquisition of business                                                         | -                        |  | (256,307)               
|Bank ownd life insurance purchased                                              | (7,143,999)              |  | -                       
|                                                                                | ___________________      |  | ___________________     
|Net cash used by investing activities                                           | (14,530,612)             |  | (9,596,171)             
|                                                                                |                          |  |                         
|Cash flows from financing activities:                                           |                          |  |                         
|Net change in deposits                                                          | 27,279,849               |  | 29,579,163              
|Net change in repurchase agreements                                             | (2,250,148)              |  | (157,767)               
|Dividends paid                                                                  | (635,500)                |  | (483,248)               
|Proceeds from stock issuance                                                    | 15,000                   |  | 458,206                 
|Treasury stock buyback                                                          | (45,722)                 |  | (16,981)                
|Net increase (decrease) in advances from
      Federal Home Loan Bank of Boston | 247,846                  |  | (24,078,836)            
|                                                                                | ___________________      |  | ___________________     
|Net cash provided by financing activities                                       | 24,611,325               |  | 5,300,537               
|                                                                                | ___________________      |  | ___________________     
|                                                                                |                          |  |                         
|Net increase (decrease) in cash and cash
      equivalents                      | 12,088,403               |  | (1,760,560)             
|                                                                                |                          |  |                         
|Cash and cash equivalents, beginning of
      period                            | 18,749,092               |  | 14,188,265              
|                                                                                | ___________________      |  | ___________________     
|Cash and cash equivalents, end of period                                        | $      
      30,837,495 |  | $      
      12,427,705
|                                                                                | =================        |  | =================       
|                                                                                |                          |  |                         
|Cash and cash equivalents include cash on
      hand, amounts due               |                          |  |                         
|from banks and interest bearing deposits.                                       |                          |  |                         
|                                                                                |                          |  |                         
|Supplemental schedule of noncash activities:                                    |                          |  |                         
|Net change in valuation for unrealized
      losses, net of tax,                |                          |  |                         
|on available for sale securities                                                | (216,375)                |  | (22,156)                
|Net transfer from loans to acquired assets                                      | 795,410                  |  | 888,214                 
|Treasury stock issued in connection with
      acquisition of Kendall Insurance | --                       |  | 284,779                 
|                                                                                |                          |  |                         
|Supplemental disclosure of cash paid during
      the period for:               |                          |  |                         
|Income taxes paid, net of refunds                                               | 1,425,000                |  | 1,490,000               
|Interest paid                                                                   | 10,523,832               |  | 13,205,694              

Page 8

NORTHEAST BANCORP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 2003

1.  Basis of Presentation

The accompanying unaudited condensed and consolidated financial statements
have been prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by accounting
principles generally accepted in the United States of America for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the nine-month period ended March 31, 2003
are not necessarily indicative of the results that may be expected for the
fiscal year ending June 30, 2003. For further information, refer to the audited
consolidated financial statements and footnotes thereto for the fiscal year
ended June 30, 2002 included in the Company's Annual Report on Form 10-K.

2.  Guaranteed Preferred Beneficial Interests in the Company's
Junior Subordinated Debentures

NBN Capital Trust ("NBNCT") a Delaware statutory trust, was created
in October of 1999. The NBNCT exists for the exclusive purpose of (i) issuing
and selling Common Securities and Preferred Securities to the public (together
the "Trust Securities"), (ii) using the proceeds of the sale of Trust
Securities to acquire 9.60% Junior Subordinated Deferrable Interest Debentures
("Junior Subordinated Debentures") issued by the Company, and (iii)
engaging only in those other activities necessary, convenient, or incidental
thereto (such as registering the transfer of the Trust Securities). Accordingly
the Junior Subordinated Debentures are the sole assets of the NBNCT. The
Preferred Securities accrue and pay distributions quarterly at an annual rate of
9.60% of the stated liquidation amount of $7.00 per Preferred Security. The
Company has fully and unconditionally guaranteed all of the obligations of NBNCT.
The guaranty covers the quarterly distributions and payments on liquidation or
redemption of the Preferred Securities, but only to the extent of funds held by
NBNCT. NBNCT had sold $7,172,998 of its trust preferred securities to the public
and $221,851 of its Common Securities to the Company. The Preferred Securities
are mandatorily redeemable upon the maturity of the Junior Subordinated
Debentures on December 31, 2029 or upon earlier redemption as provided in the
Indenture. The Company has the right to redeem the Junior Subordinated
Debentures, in whole or in part on or after December 31, 2004 at the redemption
price specified in the Indenture plus any accrued but unpaid interest to the
redemption date. The Company owns all of the Common Securities of NBNCT, the
only voting security, and as a result it is a subsidiary of the Company.

3.  Loans

The following is a summary of the composition of loans at:

|                        | March 31,
    2003                | June 30, 2002                    
|----------------------- | --------------------------------- | ---------------------------------
|Residential real estate | $  134,687,066                    | $  159,566,886                   
|Commercial real estate  | 95,650,517                        | 80,423,303                       
|Construction            | 7,064,194                         | 8,958,052                        
|Commercial              | 67,449,970                        | 48,535,162                       
|Consumer & Other        | 76,475,377  
    _____________    | 74,267,760  
    _____________   
|Total                   | 381,327,124                       | 371,751,163                      
|Net Deferred Costs      | 2,672,537  
    _____________     | 2,882,956  
    _____________    
|Net Loans               | $  383,999,661  
    ============ | $  374,634,119  
    ============

Page 9

4. Allowance for Loan Losses

The following is an analysis of transactions in the allowance for loan
losses:

|                                          | Nine Months Ended
          March 31,
|----------------------------------------- | -------------------------------------
|                                          | 2003        
      ______________    
|Balance at beginning of period            | $ 3,496,000                          
|Add provision charged to operations       | 915,599                              
|Recoveries on loans previously charge off | 328,866  
      ______________       
|                                          | 4,740,465                            
|Less loans charged off                    | 835,465  
      ______________       
|Balance at end of period                  | $     3,905,000  
      =============

5.  Securities

Securities available for sale at cost and approximate market values and
maturities are summarized below:

|                                                                                                                  | March 31, 2003                   | June 30, 2002                   
|----------------------------------------------------------------------------------------------------------------- | -------------------------------- | --------------------------------
|                                                                                                                  | Cost                             | MarketValue                     
|                                                                                                                  |                                  |                                 
|Debt securities issued by the
      U.S. Treasury and other U.S.
      Government corporations and
      agencies | $      11,048,202                | $      10,957,837               
|Corporate bonds                                                                                                   | 613,457                          | 648,016                         
|Mortgage-backed securities                                                                                        | 17,311,248                       | 17,525,044                      
|Equity securities                                                                                                 | 1,605,516 
      ____________    | 1,389,629 
      ____________   
|                                                                                                                  | $  30,578,423 
      =========== | $  30,520,526 
      ===========

|                                                                                                                                                                 | March 31, 2003                 | June 30, 2002                
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | -----------------------------
|                                                                                                                                                                 | Cost                           | MarketValue                  
|Due in one year or less                                                                                                                                          | $     149,964                  | $     150,328                
|Due after one year through
      five years                                                                                                                      | 10,511,695                     | 10,455,525                   
|Due after five years through ten years                                                                                                                           | 1,000,000                      | 1,000,000                    
|Mortgage-backed securities
      (including securities with interest
      rates ranging from 4.5% to 8.5%
      maturing February 2005 to
      September 2032) | 17,311,248                     | 17,525,044                   
|Equity securities                                                                                                                                                | 1,605,516 
      ___________   | 1,389,629 
      ___________ 
|                                                                                                                                                                 | $ 30,578,423 
      ========== | $ 30,520,526
      ==========



Page 10

6.  Deposits.

The following is a summary of the composition of deposits at:

|                        | March 31,
    2003              | June 30,
    2002               
|----------------------- | ------------------------------- | --------------------------------
|Demand                  | $ 37,873,160                    | $   28,252,757                  
|NOW                     | 64,146,352                      | 62,468,856                      
|Money Market            | 32,372,484                      | 15,879,962                      
|Regular Savings         | 24,223,872                      | 23,021,132                      
|Brokered Deposits       | 26,625,282                      | 24,463,179                      
|Certificates of Deposit | 145,236,345 
    ______________ | 149,111,760 
    ______________ 
|Total Deposits          | $ 330,477,495 
    ============ | $  303,197,646 
    ============

7.  Advances from the Federal Home Loan Bank

A summary of borrowings from the Federal Home Loan Bank is as follows:

|March 31, 2003
      ________________________________________________________________________
|---------------------------------------------------------------------------------------------
|Principal
      Amounts
      ___________________                                            
|$   16,399,990                                                                               
|14,508,946                                                                                   
|30,357,963                                                                                   
|1,000,000                                                                                    
|16,937,555                                                                                   
|4,000,000                                                                                    
|3,000,000       
      ___________________                                                   
|$    86,204,454       
      =================                                               



|June 30, 2002
      _______________________________________________________________________
|-------------------------------------------------------------------------------------------
|Principal
      Amounts
      ___________________                                          
|$     9,478,495                                                                            
|17,478,113                                                                                 
|17,000,000                                                                                 
|27,000,000                                                                                 
|8,000,000                                                                                  
|7,000,000       
      ___________________                                                 
|$   85,956,608     
       
      =================                                        

Page 11

8. Stock Option Plans

Northeast Bancorp grants options only to employees of the Company,
"incentive stock options", and grants other options to employees and
non-employee directors, "nonqualified stock options". All options
granted under these plans are required to have an exercise price per share equal
to at least the fair market value per share of common stock on the date the
option is granted. Under Accounting Principle Board Opinion No. 25, no
compensation expense is recognized if the exercise price of the option is
greater than or equal to the fair market value of the underlying stock on the
date of grant. The options vest immediately upon being granted.

The Company had elected to present in the notes of the consolidated financial
statements the impact to net income and earnings per share of estimating the
fair value of each option on the date of grant using the Black-Scholes
option-pricing model. A weighted average fair value of $4.21 per option was
determined for the fiscal year ended June 30, 2002. The assumptions for the
option-pricing model are detailed in Note 15 of the June 30, 2002 consolidated
financial statements. No options have been granted for the current fiscal year.
The Company has elected to continue to disclose in the notes to the consolidated
financial statements under SFAS 148, Accounting for Stock-Based Compensation
- Transition and Disclosure, an amendment of SFAS 123. If the Company had
determined the cost for its stock options based on the fair value method at the
grant date under SFAS 123, Accounting for Stock-Based Compensation, the
Company's pro forma net income and earnings per share for the three and nine
months ended March 31, 2003 and 2002 would have been the amounts shown below.

|                                                                                                                                         | For the Three MonthsEnded March 31 | For the Nine MonthsEnded March 31
|---------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------- | ---------------------------------
|                                                                                                                                         | 2003                               | 2002                             
|Net Income as reported                                                                                                                   | $   1,076,026                      | $   963,697                      
|Deduct: Total stock-based compensation expense determined under fair
      value based method for all awards, net of related tax effects | -  
      ___________              | -  
      ___________            
|Pro forma net income                                                                                                                     | $   1,076,026=========             | $   963,697=========             
|                                                                                                                                         |                                    |                                  
|Earnings per share                                                                                                                       |                                    |                                  
|Basic - as reported                                                                                                                      | $         0.41                     | $         0.37                   
|Basic - pro forma                                                                                                                        | $         0.41                     | $         0.37                   
|                                                                                                                                         |                                    |                                  
|Diluted - as reported                                                                                                                    | $         0.40                     | $         0.36                   
|Diluted - pro forma                                                                                                                      | $         0.40                     | $         0.36                   



Page 12

Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition

Description of Operations

Northeast Bancorp (the "Company") is a Maine corporation and a
registered unitary savings and loan holding company with the Office of Thrift
Supervision ("OTS") its primary regulator. We conduct business from
our headquarters in Auburn, Maine and from 14 banking offices all located in
Western and South-central Maine. At March 31, 2003, we had consolidated assets
of $470 million and consolidated shareholders' equity of $36.7 million.

Northeast Bancorp's principal asset is its wholly-owned banking subsidiary,
Northeast Bank, FSB (the "Bank"), a federally chartered savings and
loan association. Accordingly, the Company's results of operations are primarily
dependent on the results of operations of the Bank. The Bank has branches
located in Auburn, Augusta, Bethel, Brunswick, Buckfield, Harrison, Lewiston,
Lisbon Falls, Mechanic Falls, Richmond, and South Paris, Maine. The Bank also
has a commercial banking center located in Portland, Maine. The Bank has a
wholly owned subsidiary Northeast Financial Services, Inc., which maintains its
principal offices on US Route 1 in Falmouth, Maine. From this location, loan
applications are accepted and investment, insurance and financial planning
products and services are offered. Our insurance agency is a division of
Northeast Financial Services, Inc. and offers property and casualty insurance
products from its office in Bethel, Maine.

The Bank's strategy is to continue to expand its commercial loan business,
increase its line of financial products and services, and expand its market
area. This strategy is designed to increase core earnings in the long term by
providing stronger interest margins, additional non-interest income, and
increased loan volume. Substantially all of the Bank's current income and
services are derived from banking products and services in Maine.

This Management's Discussion and Analysis of Results of Operations and
Financial Condition presents a review of the results of operations for the three
and nine months ended March 31, 2003 and 2002 and the financial condition at
March 31, 2003 and June 30, 2002. This discussion and analysis is intended to
assist in understanding the results of operations and financial condition of the
Company and the Bank. Accordingly, this section should be read in conjunction
with the consolidated financial statements and the related notes and other
statistical information contained herein. See Form 10-K dated as of June 30,
2002 for discussion of the critical accounting policies of the Company.

Certain statements contained herein are not based on historical facts and are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, such as statements relating to
financial condition and future prospects, loan loss reserve adequacy, simulation
of changes in interest rates, prospective results of operations, capital
spending and financing sources, and revenue sources. These statements relate to
expectations concerning matters that are not historical facts. Forward-looking
statements, which are based on various assumptions (some of which are beyond the
Company's control), may be identified by reference to a future period or
periods, or by the use of forward-looking terminology such as
"believe", "expect", "estimate",
"anticipate", "continue", "plan",
"approximately", "intend", or other similar terms or
variations on those terms, or the future or conditional verbs such as
"will", "may", "should", "could", and
"would". Such forward-looking statements reflect the current view of
management and are based on information currently available to them, and upon
current expectations, estimates, and projections regarding the Company and its
industry, management's belief with respect there to, and certain assumptions
made by management. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties, and other factors.
Accordingly, actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but not
limited to, those related to the economic environment, particularly in the
market areas in which the Company operates, competitive products and pricing,
fiscal and monetary policies of the U.S. Government, changes in government
regulations affecting financial institutions, including regulatory fees and
capital requirements, changes in prevailing interest rates, acquisitions and the
integration of acquired businesses, credit risk management, asset/liability
management, changes in technology, changes in the securities markets, and the
availability of and the costs associated with sources of liquidity. A more
detailed description of potential risks, uncertainties, and other factors which
could cause the Company's financial performance or results of operations to
differ materially from current expectations or such forward-looking statements
is set forth in Part 1, Item 1 of the Company's Form 10-K for the fiscal year
ended June 30, 2002 under the heading "Forward Looking Statements" and
is incorporated herein by reference.

Results of Operations

Comparison of the Three Months Ended March 31, 2003 and 2002

The Company reported net income of $1,076,026 or $0.40 per diluted share for
the three months ended March 31, 2003 compared with $963,697, or $0.36 per
diluted share for the three months ended March 31, 2002, an increase of $112,329
or 12%. Net interest income improved $80,829, or 2%, primarily from increased
earning assets. Non-interest income improved $273,496, or 22%, from increased
investment and insurance commissions, increased cash surrender value of bank
owned life insurance, increased in gain on the sale of residential loans, and
increased net securities gains. The provision for loan losses increased $14,372,
or 7%, compared to the three months ended March 31, 2002, to reflect the
increasing mix of commercial real estate and commercial loans in the Bank's loan
portfolio. Non-interest expense increased $220,860, or 7%. The higher
non-interest expense resulted from adding a new commercial loan brokerage
division and expanding the insurance division of Northeast Financial Services,
adding a new call center to Northeast Bank and opening a new commercial banking
center in Portland. Also, staff was added to support high volumes of residential
real estate and commercial loans. Full-time equivalent staff increased by 15 as
of the quarter ended March 31, 2003 compared to the same period last year.

Page 13

Net interest income continues to be our largest source of revenue. It is the
difference between interest income on earning assets such as loans and
securities, and interest expense incurred on liabilities such as deposits,
securities sold under repurchase agreements, and borrowings. Net interest income
is affected by the level of interest rates, changes in interest rates and by
changes in the amount and composition of interest-earning assets and
interest-bearing liabilities.

Net interest income for the three months ended March 31, 2003 increased
$80,829 compared to the same period in 2002. Net interest margin increased to
3.43% from 3.39% for the respective periods. Average earning assets increased
$5,160,000 for the three months ended March 31, 2003 compared to March 31, 2002.
The increase in net interest income was due to the decreasing rates incurred on
interest-bearing liabilities improving net interest margin, and an increase in
volume of average loans. The rate decreases reflect the interest rate cuts by
the Open Market Committee of the Federal Reserve during 2003 and 2002. Average
loans as a percentage of average earning assets was 92% and 88% for the quarters
ended March 31, 2003 and 2002, respectively. Average loans increased
$21,129,000, or 6%, compared to March 31, 2002 due to commercial real estate,
commercial and consumer loan originations.

The provision for loan losses for the three months ended March 31, 2003 was
$225,042, an increase of $14,372 from $210,670 for the three months ended March
31, 2002. Net charge-offs amounted to $119,041 for the three months ended March
31, 2003 compared to $393,169 for the same period in 2002. The Bank experienced
continued loan growth in the commercial real estate and commercial loans during
the quarter ended March 31, 2003. Increases in the provision for loan losses
were needed to address a shift in loan mix to loans with a higher risk profile,
the economic slowdown and an uncertain economic climate. The allowance as a
percentage of outstanding loans increased to 1.02% compared to 0.94% at June 30,
2002.

Total non-interest income was $1,523,951 for the three months ended March 31,
2003, an increase of $273,496 from $1,250,455 for the three months ended March
31, 2002. This increase was due to $23,079 higher fees and service charges on
loans, $19,884 fees for other services (primarily deposit related), $41,272
higher net securities gains and trading losses, $85,135 higher gains on sale of
residential real estate loans, $12,117 higher investment and insurance
commissions, $103,236 increase in the cash surrender value of bank owned life
insurance (BOLI), and $18,835 other non-interest income partially offset by
$30,062 lower loan service fees. See Financial Condition for further discussion
of BOLI. Increased fees and service charges on loans resulted from increased
advance fees on lines of credit and late charge fees. Fees for other services to
customers increased from higher fees on deposit transaction accounts and
increased debit and ATM card usage. Net securities gains increased from the
volume of mortgage-backed securities sold. Increased insurance commissions
accounted for higher investment and insurance commissions for the three months
ended March 31, 2003. Revenues from the sale of real estate held for development
accounts increased other income. Lower loan servicing fees were due to increased
amortization of mortgage servicing rights caused by residential loan
prepayments.

Total non-interest expense for the three months ended March 31, 2003 was
$3,343,425 an increase of $220,860 from $3,122,565 for the three months ended
March 31, 2002. This increase was primarily due to increased salaries and
employee benefits of $154,954. This increase in this expense was primarily due
to the addition of 15 full-time equivalent employees comprised of new staff for
the commercial loan brokerage and insurance divisions of Northeast Financial
Services Inc. added in early calendar 2002, hiring staff for a new call center
and the new commercial banking center in Portland, and staff to support
increased commercial and residential real estate loan volume. Higher benefit
expense also contributed to the increased salary and employee benefit expense.
Net occupancy expense increased $67,184 for the quarter ended March 31, 2003 as
compared to the prior year. This increase was attributable to additional leased
space for new divisions and staff, and utilities expense. Equipment expense
decreased $6,883 for the three months ended March 31, 2003 as compared to the
prior year. This decrease was due to lower depreciation expense. Intangible
asset amortization increased $7,799 for the three months ended March 31, 2003 as
compared to the prior year from the amortization of non-compete and customer
list intangibles acquired in the purchase of the Kendall Insurance agency in
2002. Other expense decreased $2,194 for the three months ended March 31, 2003
as compared to the prior year due to lower collection and loan servicing
expenses partially offset by higher professional fees, business insurance,
electronic banking, and outsourced cash management expenses.

The efficiency ratio was 65% for the three months ended March 31, 2003 and
2002, respectively.

Comparison of the Nine Months Ended March 31, 2003 and 2002

Net income for the nine months ended March 31, 2003 was $2,894,947, or $1.08
per diluted share, a decrease of $29,475 from the $2,924,422, or $1.10 per
diluted share for the nine months ended March 31, 2002. Increased earning assets
was the most significant factor contributing to the $252,179, or 2%, increase
in net interest income for the nine months ended March 31, 2003. The changes in
net interest income are presented in the schedule below.

Page 14

|                                                                                                                                                                | Difference Due to             |                                
|--------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | -------------------------------
|                                                                                                                                                                | Volume
      _____________    | Rate
      _____________       
|Investments                                                                                                                                                     | $ (79,396)                    | $ (146,323)                    
|Loans, net                                                                                                                                                      | 627,899                       | (2,638,042)                    
|FHLB & Other Deposits                                                                                                                                           | (70,882)
      _____________  | (61,207)
      _____________   
|Total Interest-earnings Assets                                                                                                                                  | 477,621                       | (2,845,572)                    
|                                                                                                                                                                |                               |                                
|Deposits                                                                                                                                                        | (292,315)                     | (1,966,531)                    
|Repurchases Agreements                                                                                                                                          | (6,204)                       | (43,707)                       
|Borrowings                                                                                                                                                      | (184,842)
      _____________ | (126,531)
      _____________  
|Total Interest-bearing Liabilities                                                                                                                              | (483,361)
      _____________ | (2,136,769)
      _____________
|Net Interest Income                                                                                                                                             | $960,982 
      ============  | $(708,803)
      ============  
|Rate/Volume amounts spread proportionately between volume and rate.
      Borrowings in the table include trust preferred securities and FHLB
      borrowings.

The Company's business primarily consists of the savings and loan activities
of the Bank. The success of the Company is largely dependent on its ability to
manage interest rate risk. This is the sensitivity of income to changes in
interest rates. Changes in interest rates, as well as fluctuations in the level
of assets and liabilities, affect net interest income. This risk arises from our
core banking activities, lending and deposit gathering. In addition to directly
impacting net interest income, changes in interest rates can also affect the
amount of loans originated and sold by the Bank, the ability of borrowers to
repay adjustable or variable rate loans, the average maturity of loans, the rate
of amortization of premiums paid on securities, the amount of unrealized gains
and losses on securities available for sale and the fair value of our saleable
assets and the resultant ability to realize gains. The Bank has shifted to an
asset sensitive position based on its own internal analysis which categorizes
its core deposits as long term liabilities which are then matched to long term
assets. As a result, the Bank will generally experience an improvement in its
net interest margins during a period of increasing interest rates.

As of March 31, 2003 and 2002, 48% and 43%, respectively, of the Bank's loan
portfolio was comprised of floating rate loans based on a prime rate index or
short-term rate indices such as the one-year Treasury bill. Interest income on
these existing loans will increase as short-term interest rates increase. An
increase in short-term interest rates will also increase deposit and FHLB
advance rates, increasing the Company's interest expense. Although the Bank has
experienced some net interest margin expansion, the impact on net interest
income will depend on, among other things, actual rates charged on the Bank's
loan portfolio, deposit and advance rates paid by the Bank and loan volume.

The provision for loan losses for the nine months ended March 31, 2003
increased $283,913, or 45%, over the same period last year to $915,599 due to
higher mix of commercial real estate and commercial loans outstanding, up 26%
from March 31, 2002.

Non-interest income was $3,992,558 for the nine months ended March 31, 2003
compared to $3,151,571 for the nine months ended March 31, 2002. The
non-interest income increase of $840,987, or 27%, was due to increased net
securities and trading gains of $430,540, increased net gains on the sales of
loans of $87,405, increased investment and insurance commissions of $61,217,
increased BOLI cash surrender value of $206,520 and increased other non-interest
income of $80,261 from higher trust fees and real estate development income,
partially offset by a decrease in service charges of $24,956.

Non-interest expense was $9,953,805 for the nine months ended March 31, 2003
compared to $8,977,242 for the nine months ended March 31, 2002. The increase of
$976,563, or 11%, was due primarily to increased salary and employee benefits.
For the nine months ended March 31, 2003 salary and employee benefits increased
$675,910, or 14%, compared to the same period last year. This increase includes
the salary and benefits for 15 staff additions in the commercial loan originator
division, insurance divisions and customer call center as well as increased
salaries on investment division commissions received as compared to the same
period last year. Net occupancy expense increased $210,237, or 31% compared to
the nine months ended March 31, 2002 primarily from new leased space for the
above staff additions, the new commercial banking center opened in Portland,
building repair and maintenance expense, and utilities expense. Equipment
expense increased $37,262 or 6%, from increased software maintenance contract
expense, equipment expense, and moving and storage expense, partially offset by
lower depreciation expense. Intangible assets amortization increased $54,593, or
38%, from the additional amortization of the non-compete agreement and customer
list intangibles from the purchase of Kendall Insurance Agency in 2002.

Financial Condition

Our consolidated assets amounted to $469,714,746 and $442,215,917 as of March
31, 2003 and June 30, 2002, respectively, an increase of $27,498,829, or 6%.
This increase in assets was due primarily to an increase in FHLB overnight
deposits, loans, and bank owned life insurance. FHLB overnight deposits resulted
from the unexpected increase in demand deposit and money market account balances
at March 31, 2003. These account balances declined by $12 million by April 15,
2003. The liquidation of available for sale securities was used to fund loans
and the purchase of approximately $7 million in bank-owned life insurance on the
lives of certain employees of the Bank and its wholly owned subsidiary Northeast
Financial Services, Inc. on September 30, 2002. Total average assets were
$444,554,549 for the nine months ended March 31, 2003. Total stockholders'
equity was $36,743,141 and $34,730,791 at March 31, 2003 and June 30, 2002,
respectively.

Page 15

The investment portfolio was $30,520,526 as of March 31, 2003, a decrease of
$1,919,860 or 6%, from $32,440,386 as of June 30, 2002. The decrease was due to
the liquidation of mortgage backed securities primarily to fund the growth in
loans during the nine months ended March 31, 2003, and the BOLI purchase on
September 30, 2002. Government agency securities were added as deposit balances
increased during the three months ended March 31, 2003. The investment portfolio
as of March 31, 2003 consists of government agency and mortgage-backed
securities, corporate bonds, and equity securities. Generally, funds retained by
the Bank as a result of increases in deposits or decreases in loans, which are
not immediately used by the Bank, are invested in securities held in its
investment portfolio. The investment portfolio is used as a source of liquidity
for the Bank. The investment portfolio is structured so that it provides for an
ongoing source of funds for meeting loan and deposit demands and for
reinvestment opportunities to take advantage of changes in the interest rate
environment. The investment portfolio averaged $21,678,030 for the nine months
ended March 31, 2003 as compared to $24,220,502 for the nine months ended March
31, 2002, a decrease of $2,542,472 or 10%.

The Company's investment portfolio is classified as available for sale at
March 31, 2003 and June 30, 2002, and is carried at market value. Changes in
market value, net of applicable income taxes, are reported as a separate
component of shareholders' equity. Gains and losses on the sale of securities
are recognized at the time of the sale using the specific identification method.
The amortized cost and market value of available for sale securities at March
31, 2003 was $30,578,423 and $30,520,526, respectively. The difference between
the carrying value and the cost of the securities of $57,897 was primarily
attributable to the market value of equity securities below its cost. The net
unrealized loss on equity securities was $215,887 and the net unrealized gain on
government agency and mortgage-backed securities and corporate bonds was
$157,990 at March 31, 2003. Compared to June 30, 2002, the mix of debt securities
has changed to government agencies with lower interest rates and
shorter maturities and decreasing mortgage-backed securities. Substantially all
of the government agency and mortgage-backed securities are high-grade, federal
agency securities. Management believes that the yields currently received on
this portfolio are satisfactory. Management reviews the portfolio of investments
on an ongoing basis to determine if there has been any other than temporary
declines in value. Some of the considerations management makes in the
determination are market valuations of particular securities and economic
analysis of the securities' sustainable market values based on the underlying
company's profitability. Based on management's assessment of the securities
portfolio, there have been other than temporary declines in values of individual
equity securities in the amount of $58,167 for the nine months ended March 31,
2003. A substantial portion of this write-down was attributable to four
securities for which the recent financial performance had deteriorated. Such
securities have been written down and the write-downs are included in other
expenses in the statement of income for the nine months ended March 31, 2003.
Management also plans to hold the equity securities for the foreseeable future
because we believe that the decline in equity values is due to overall downturn
in market conditions, but the underlying companies are viable and well managed.

Total loans of $383,999,661 as of March 31, 2003 increased $9,365,542 or 2%,
from $374,634,119 as of June 30, 2002. Compared to June 30, 2002, commercial
real estate, commercial loan, and consumer loan portfolios increased and
residential real estate and construction loan portfolios declined. Aggregate
commercial real estate and commercial loans increased $34,142,022, or 26%,
compared to June 30, 2002. The increase in commercial loans was due to new
opportunities with small businesses within our market areas. Compared to the
same period, consumer loans increased $2,207,617, or 3%. The increase in
consumer loans was due to indirect recreational vehicle, indirect auto loans,
and personal loans. These loan portfolios contain higher levels of credit and
interest rate risk. The residential real estate loan portfolio, which is
comprised of purchased loans, residential real estate loans originated for
portfolio, and commercial real estate 1 to 4 family loans, decreased by
$24,879,820, or 16% compared to June 30, 2002. The continuing high prepayments
experienced on purchased and portfolio residential real estate loans is
attributable to high levels of refinancing in a low interest rate environment.
The total loan portfolio averaged $388,305,015 for the quarter ended March 31,
2003, an increase of $20,446,400, or 6%, from the quarter ended March 31, 2002

The Bank primarily lends within its local market areas, which management
believes helps them to better evaluate credit risk. The Bank's loan portfolio
mix as of March 31, 2003 has changed with increases in commercial real estate
and commercial loans when compared to June 30, 2002. The Bank's local market, as
well as the secondary market, continues to be very competitive for loan volume.
The local competitive environment and customer response to favorable secondary
market rates will have an adverse affect on the Bank's ability to increase the
loan portfolio. In an effort to increase loan volume, the Bank's interest rates
for its loan products have been reduced to compete in the various markets.

Residential real estate loans consisting of owner-occupied residential loans
as a percentage of total loans were 35%, 43% and 44% as of March 31, 2003, June
30, 2002, and March 31, 2002, respectively. The variable rate product as a
percentage of total residential real estate loans was 35%, 36% and 34% for the
same periods, respectively. Variable rate residential loans have remained flat when
compared to the prior year primarily due to sale of new fixed rate loans into
the secondary market. Management will continue to pursue this strategy of
increasing the percentage of variable rate loans as a percentage of the total
loan portfolio to help manage interest rate risk. We continue to sell all
30-year, fixed-rate residential real estate loans into the secondary market. All
new 15-year fixed-rate and adjustable rate loans are originated for our
portfolio. Average residential real estate mortgages of $149,470,834 for the
three months ended March 31, 2003 decreased $15,337,895, or 9%, from the three
months ended March 31, 2002. The decrease was due to increased refinancing
activity in a low interest rate environment increasing loan prepayment, combined
with our policy to sell 30 year fixed rate residential real estate loans into
the secondary market

Page 16

Commercial real estate loans as a percentage of total loans were 25%, 22% and
21% as of March 31, 2003, June 30, 2002 and March 31, 2002, respectively.
Commercial real estate loans have minimal interest rate risk because the
portfolio consists primarily of variable rate products. The variable rate
products as a percentage of total commercial real estate loans were 94%, 93% and
93% for the same periods respectively. The Bank tries to mitigate credit risk by
lending in its market area as well as maintaining a well-collateralized position
in real estate. Average commercial real estate loans of $94,682,763 for the
three months ended March 31, 2003 increased $20,134,863, or 27%, from the same
period in 2002. The increase in commercial real estate loans was due to market
share increases in its existing business markets.

Construction loans as a percentage of total loans were 2% as of March 31,
2003, June 30, 2002 and March 31, 2002, respectively. Risk is controlled by
limiting disbursements to the percentage of construction completed. The
construction progress is verified by an independent consultant or appraiser.
Construction loans have maturity dates less than one year. The variable rate
products as a percentage of total construction loans were 70%, 74%, and 64% for
the same periods respectively. Average construction loans were $7,385,941 and
$8,198,654 for the three months ended March 31, 2003 and 2002, respectively.

Commercial loans as a percentage of total loans were 18%, 13%, and 13% as of
March 31, 2003, June 30, 2002 and March 31, 2002, respectively. The variable
rate products as a percentage of total commercial loans were 63%, 53%, and 53%
for the same periods respectively. The repayment ability of commercial loans
customers is highly dependent on the cash flow of the customer's business. The
Bank mitigates losses by strictly adhering to the Company's underwriting and
credit policies. Average commercial loans of $57,497,706 for the three months
ended March 31, 2003 increased $15,325,032, or 36%, from $42,172,674 for the
same period in 2002.

Consumer and other loans as a percentage of total loans were 20% for the
periods ended March 31, 2003, June 30, 2002, and March 31, 2002. Indirect
recreational vehicle and mobile home loans comprise approximately 66% of total
consumer loans. Indirect auto loans account for 24% of total consumer loans.
Since these loans are primarily fixed rate products, they have interest rate
risk when market rates increase. The consumer loan department underwrites all
the indirect automobile and recreational vehicle loans and mobile home loans to
mitigate credit risk. The Bank typically pays a nominal one-time origination fee
on indirect loans. The fees are deferred and amortized over the life of the
loans as a yield adjustment. Management attempts to mitigate credit and interest
rate risk by keeping the products offered short-term, receiving a rate of return
commensurate with the risk, and lending to individuals in the Bank's market
areas. Average consumer and other loans were $79,267,771 and $74,130,657 for the
three months ended March 31, 2003 and 2002, respectively. The $5,137,114, or 7%,
increase was due primarily to increased indirect recreational vehicle and
indirect auto lending.

The Bank's allowance for loan losses was $3,905,000 as of March 31, 2003 as
compared to $3,496,000 as of June 30, 2002, representing 1.02% and 0.94% of
total loans, respectively. The Bank had non-performing loans totaling $1,395,000
and $1,171,000 at March 31, 2003 and June 30, 2002, respectively, or 0.36% and
0.31% of total loans, respectively. The Bank's allowance for loan losses was
equal to 280% and 299% of the total non-performing loans at March 31, 2003 and
June 30, 2002, respectively.

The following table represents the Bank's non-performing loans as of March
31, 2003 and June 30, 2002, respectively:

|Description             | March 31, 2003                  | June 30,2002                   
|----------------------- | ------------------------------- | -------------------------------
|Residential Real Estate | $     171,000                   | $     486,000                  
|Commercial Real Estate  | 359,000                         | 330,000                        
|Commercial Loans        | 601,000                         | 183,000                        
|Consumer and Other      | 264,000
      ____________      | 172,000
      ____________     
|Total non-performing    | $   1,395,000
      =========== | $   1,171,000
      ===========

Management does not believe that the increase in non-performing commercial
loans as of March 31, 2003 was indicative of a trend. At March 31, 2003, the
Bank had $225,138 in loans classified substandard that management believes could
potentially become non-performing due to delinquencies or marginal cash flows.
These substandard loans increased by $125,138 when compared to the $100,000 at
June 30, 2002. The Bank's delinquent loans, as a percentage of total loans,
decreased during the March 31, 2003 quarter. To control the amount of such
loans, management continues to allocate substantial resources to the collection
area.

The following table reflects the quarterly trend of total delinquencies 30
days or more past due, including non-performing loans, for the Bank as a
percentage of total loans:

|03-31-03 | 12-31-02 | 09-30-02 | 06-30-02
|-------- | -------- | -------- | --------
|0.97%    | 1.41%    | 0.92%    | 1.03%   

At March 31, 2003, loans classified as non-performing included approximately
$483,000 of loan balances that are current and paying as agreed. The Bank
maintains the loans as non-performing until the borrower has demonstrated a
sustainable period of performance. Excluding these loans, the Bank's total
delinquencies 30 days or more past due, as a percentage of total loans, would be
0.84% as of March 31, 2003.

Page 17

The level of the allowance for loan losses, as a percentage of total loans,
increased to 1.02% at March 31, 2003 compared to 0.94% at June 30, 2002.
Management has increased the provision to maintain an allowance at a level that
management believes is reasonable for the overall risk inherent in the loan
portfolio. The factors considered include the increasing mix of commercial and
consumer loans, the slight increase in non-performing loans, the decrease in net
charge offs compared to the nine months ended March 31, 2002, internal risk
ratings and credit concentrations.

Provisions for loan losses are based on management's ongoing evaluation of
the adequacy of the allowance for loan losses. This evaluation involves a high
degree of management judgment. The methods employed to evaluate the allowance
for loan losses are quantitative in nature and consider such factors as the loan
mix, the level of non-performing loans, delinquency trends, past charge-off
history, loan reviews and classifications, collateral, and the current economic
climate. For the nine months ended March 31, 2003, we have not changed our
approach in the determination of the allowance for loan losses. There have been
no material changes in the assumptions or estimation techniques as compared to
prior periods in determining the adequacy of the allowance for loan losses.

While management believes that it uses the best information available to make
its determinations with respect to the allowance, there can be no assurance that
the Company will not have to increase its provision for loan losses in the
future as a result of changing economic conditions, adverse markets for real
estate or other factors. In addition, various regulatory agencies, as an
integral part of their examination process, periodically review the Bank's
allowance for loan losses. Such agencies may require the Bank to recognize
additions to the allowance for loan losses based on their judgments about
information available to them at the time of their examination. The Bank's most
recent examination by the Office of Thrift Supervision was in June 2002. At the
time of the exam the regulators proposed no adjustments to the allowance for
loan losses.

At March 31, 2003, the Company had acquired assets of $248,280 a decrease of
$338,362 compared to June 30, 2002. The decrease is net of additions of
$795,410, dispositions of $1,083,772, and provisions to the allowance for losses
of $50,000. Management periodically receives independent appraisals to assist in
its valuation of acquired assets. As a result of its review of the independent
appraisals and the acquired assets portfolio, the Company believes the allowance
for losses of $6,094 is adequate to state the portfolio at lower of cost, or
fair value less estimated selling expenses.

Bank owned life insurance (BOLI) was purchased on September 30, 2002. BOLI
was invested in the general account of two quality insurance companies. Standard
and Poor's rated these companies AA+ or better at September 30, 2002. Interest
earnings increase the cash surrender value. These interest earnings are based on
interest rates reset each year, subject to minimum interest rates. The increases
in cash surrender value offsets a portion of employee benefit costs. These
increases were recognized in other income and are not subject to income taxes.
Borrowing on or surrendering the policy may subject the Bank to income tax
expense on the increase in cash surrender value. For these reasons, management
considers BOLI an illiquid asset. BOLI represented 18% of capital and the
allowance for loan losses at March 31, 2003.

Capital Resources and Liquidity

The Bank continues to attract new local deposit relationships. As alternative
sources of funds, the Bank utilizes brokered certificates of deposit
("CD's") and FHLB advances when their respective interest rates are
less than the interest rates on local market deposits. Brokered CD's carry the
same risk as local deposit CD's, in that both are interest rate sensitive with
respect to the Bank's ability to retain the funds. Brokered CD's are used to
supplement the growth in earning assets. FHLB advances are also used to fund
short-term liquidity demands.

Total deposits of $330,477,495 as of March 31, 2003 increased $27,279,849, or
9%, from $303,197,646 as of June 30, 2002. Demand deposits and NOW accounts
increased $9,620,403 and $1,677,496, respectively, for the nine months ended
March 31, 2003. Money market accounts increased $16,492,522 and regular savings
increased $1,202,740 for the nine months ended March 31, 2003. Certificates of deposits decreased during the same period by $1,713,312.
The increase in demand deposit and money market account balances reflect new
accounts opened for the Maximum Return Sweep product sold to commercial
customers. The decrease in brokered and regular certificates of deposit reflects
continuing competitive pressure from other financial institutions and customers
seeking the best rates offered. Management's strategy is to continue offering
certificate of deposit rates in the middle of the market, thus reducing the
related interest expense as certificates of deposits renew. For the nine months
ended March 31, 2003, total average deposits increased $10,649,898, or 4%, to
$302,857,558 from $292,207,660 for the nine months ended March 31, 2002.

Total average deposits of $309,501,207 for the three months ended March 31,
2003 increased $7,053,665, or 2%, from the average for the three months ended
March 31, 2002. The increase in total average deposits compared to March 31,
2002 is net of a $20,937,667, or 17%, increase in demand deposit, NOW, money
market and regular savings accounts partially offset by a $6,600,427, or 21%,
decrease in brokered certificates of deposit and a $7,283,575 or 5%, decrease in
regular certificates of deposit. The increase in non-maturing accounts resulted
primarily from the Maximum Return Sweep. This account increased average balances
by $16,544,948, or 228%, primarily from two large deposit relationships. All
interest-bearing non-maturing deposit accounts have market interest rates. The
decrease in bank certificates of deposit is attributable to a declining interest
rate environment that significantly lowered certificate of deposit rates offered
to customers and competitive pressure. Cross selling strategies are employed by
the Bank to enhance deposit growth. Even though deposit interest rates have
remained competitive, the rates of return are potentially higher with other
financial instruments such as mutual funds and annuities. Like other companies
in the banking industry, the Bank will be challenged to maintain or increase its
core deposits.

Page 18

At March 31, 2003, brokered certificates of deposit were $26,625,282, and
increased by $2,162,103, or 9%, compared to the $24,463,179 balance as of June
30, 2002.

Securities sold under repurchase agreements were $6,621,494 as of March 31,
2003, a decrease of $2,250,148, or 25%, from $8,871,642 as of June 30, 2002. The
decrease was attributable to lost accounts during the quarter. The account loss
is not indicative of a trend. Average securities sold under repurchase
agreements were $7,450,572 for the three months ended March 31, 2003, a decrease
of $1,185,958, or 14%, compared to the average for the three months ended March
31, 2002. Repurchase agreements enhance the Bank's ability to obtain additional
municipal and commercial deposits, improving its overall liquidity position in a
cost-effective manner.

Advances from the Federal Home Loan Bank (FHLB) were $86,204,454 as of March
31, 2003, an increase of $247,846, or less than 1%, from $85,956,608 as of June
30, 2002. The increase in FHLB advances funded increases in loans. The Bank's
current advance availability, our unused borrowing capacity subject to the
satisfaction of certain conditions, is approximately $5,052,000 over and above
the March 31, 2003 advances. Residential and certain commercial real estate
loans, certain investment securities, and certain FHLB deposits free of liens,
pledges and encumbrances are required to be pledged to secure FHLB advances. The
Bank prepaid advances of $2 million subsequent to quarter-end. Management
believes that the Company's available liquidity resources are sufficient to
support the Company's needs. In addition to the traditional retail products, the
Bank has the ability to access funds from maturing securities and loans, the
sale of securities and loans, repurchase agreements and brokered deposits.
Average advances from the FHLB were $87,546,269 for the three months ended March
31, 2003, an increase of $3,331,634, or 4%, compared to $84,214,635 average for
the same period last year.

In December 1999, the Board of Directors of the Company approved a plan to
repurchase up to $2,000,000 of its common stock and in May 2002, the Board of
Directors authorized the repurchase of an additional $2,000,000 of common stock.
Under the common stock repurchase plan, the Company may purchase shares of its
common stock from time to time in the open market at prevailing prices.
Repurchased shares will be held in treasury and may be used in connection with
employee benefits and for other general corporate purposes. The Company does not
believe that the current market price for its common stock adequately reflects
full value and believes that the purchase of its common stock from time to time
in the market is a good investment and use of its funds. For the nine months
ended March 31, 2003, 2,385 shares were repurchased. As of March 31, 2003, the
Company had repurchased $1,389,790 of its common stock and management believes
that the purchases have not had a significant effect on the Company's liquidity
and earnings per share.

Total equity of the Company was $36,743,141 as of March 31, 2003 as compared
to $34,730,791 at June 30, 2002. The increase of $2,012,350, or 6%, was
primarily from net income increasing retained earnings less dividends paid. Book
value per common share was $13.89 as of March 31, 2003 as compared to $13.12 at
June 30, 2002. The total equity to total assets ratio of the Company was 7.82%
as of March 31, 2003 and 7.85% at June 30, 2002.

The Company's net cash provided by operating activities was $2,007,690 during
the nine months ended March 31, 2003, which was a $527,384 decrease compared to
the same period in 2002. This decrease was primarily due to the origination of
loans held for sale. Investing activities were a net use of cash primarily due
to new loans and purchase of bank owned life insurance during the nine months
ended March 31, 2003 compared to the same period in 2002. Financing activities
provided net cash from the increase in deposits compared to the same period in
2002. Overall, the Company's cash position increased by $12,088,403 during the
nine months ended March 31, 2003.

The Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA"),
contains various provisions intended to capitalize the Bank Insurance Fund
("BIF") and also affects a number of regulatory reforms that impact
all insured depository institutions, regardless of the insurance fund in which
they participate. Among other things, FDICIA grants the OTS broader regulatory
authority to take prompt corrective action against insured institutions that do
not meet capital requirements, including placing undercapitalized institutions
into conservatorship or receivership. FDICIA also grants the OTS broader
regulatory authority to take corrective action against insured institutions that
are otherwise operating in an unsafe and unsound manner.

FDICIA defines specific capital categories based on an institution's capital
ratios. Regulations require a minimum Tier 1 core capital equal to 4.0% of
adjusted total assets, Tier 1 risk-based capital of 4.0% and a total risk-based
capital standard of 8.0%. The prompt corrective action regulations define
specific capital categories based on an institution's capital ratios. The
capital categories, in declining order are "well capitalized",
"adequately capitalized", "under capitalized",
"significantly undercapitalized", and "critically
undercapitalized". As of March 31, 2003, the most recent notification from
the OTS categorized the Bank as well capitalized. There are no conditions or
events since that notification that management believes has changed the
institution's category.

Page 19

At March 31, 2003, the Bank's regulatory capital was in compliance with
regulatory capital requirements as follows:

|                                                   | Actual  | Required
      For Capital Adequacy Purposes | Required To Be "Well Capitalized" Under Prompt
      Corrective Action Provisions
|-------------------------------------------------- | ------- | -------------------------------------------- | ---------------------------------------------------------------------------------
|                                                   | Amount  | Ratio                                        | Amount                                                                           
|(Dollars in Thousands)
      As of March 31, 2003: |         |                                              |                                                                                  
|Tier 1 (Core) capital to risk weighted assets      | $40,591 | 11.39%                                       | $14,251                                                                          
|Tier 1 (Core) capital to total assets              | $40,591 | 8.67%                                        | $18,717                                                                          
|Total Capital to risk weighted assets              | $42,771 | 12.00%                                       | $28,503                                                                          

Management believes that there are adequate funding sources to meet its
liquidity needs for the foreseeable future. Primary among these funding sources
are the repayment of principal and interest on loans, the renewal of time
deposits, and the growth in the deposit base. Management does not believe that
the terms and conditions that will be present at the renewal of these funding
sources will significantly impact the Company's operations, due to its
management of the maturities of its assets and liabilities.

Commitments outstanding as of March 31, 2003 for residential real estate,
commercial real estate, and commercial loans totaled $26,867,000. Unused lines
of credit from commercial, construction, and home equity loans totaled
$34,142,000. The loan commitments and unused lines of credit for commercial and
construction loans expire or are subject to renewal in twelve months or less.

Impact of Inflation

The consolidated financial statements and related notes herein have been
presented in terms of historic dollars without considering changes in the
relative purchasing power of money over time due to inflation. Unlike industrial
companies, substantially all of the assets and virtually all of the liabilities
of the Company are monetary in nature. As a result, interest rates have a more
significant impact on the Company's performance than the general level of
inflation. Over short periods of time, interest rates may not necessarily move
in the same direction or in the same magnitude as inflation.

Item 3. Quantitative and Qualitative Disclosure about Market Risk

There have been no material changes in the Company's market risk from June
30, 2002. For information regarding the Company's market risk, refer to the
Company's Annual Report on Form 10-K dated as of June 30, 2002.

Item 4. Controls and Procedures

Under the supervision and with the participation of the Company's President
and Chief Executive Officer, and Chief Financial Officer (its principal
executive officer and principal financial officer, respectively), management has
evaluated the effectiveness of the design and operation of the Company's
disclosure controls and procedures within 90 days of the filing date of this
quarterly report. Based on that evaluation, the President and Chief Executive
Officer, and Chief Financial Officer have concluded that these disclosure
controls and procedures (as such term is defined in Rule 13a-14(c) promulgated
under the Securities Exchange Act of 1934) are effective to ensure the
disclosure of material information related to the Company, including its
consolidated subsidiaries, that is required to be disclosed in reports the
Company files and submits under the Securities Exchange Act of 1934. There were
no significant changes in our internal controls or in other factors known to us
that could significantly affect these internal controls subsequent to the date
of the evaluation.



Page 20

Part II - Other Information

|Item 1. | Legal ProceedingsNone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Item 2. | Changes in SecuritiesNone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Item 3. | Defaults Upon Senior SecuritiesNone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Item 4. | Submission of Matters to a Vote of Security HoldersNone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Item 5. | Other InformationNone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Item 6. | Exhibits and Reports on Form 8- K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(a)     | List of Exhibits:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | Exhibits No.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(b)     | Reports on Form 8- K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | On January 22, 2003, the Company filed a Current Report on Form 8-K
      under Item 9 to disclose the Press Release for 2nd quarter
      earnings for the quarter ended December 31, 2002.                                                                                                                                                                                                                                                                                                                                                                                       
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | On February 13, 2003, the Company filed a Current Report on Form 8-K
      under Item 9 to disclose that the certificates required by 18 U.S.C. 1350,
      as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, were
      submitted to the Securities and Exchange Commission in connection and
      simultaneously with the filing of the Company's Form 10-Q for the quarter
      ended December 31, 2002. The certificate of the Chief Executive Officer
      and Chief financial Officer was filed therewith as Exhibit 99.1 and 99.2
      respectively.



Page 21

SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

|Date: May 14, 2003 | NORTHEAST BANCORP                                                                                                                 
|------------------ | ----------------------------------------------------------------------------------------------------------------------------------
|                   | By:   James D. Delamater
                     James D.
      Delamater
                     President
      and CEO               
|                   | By:  Robert S. Johnson
                        Robert
      S. Johnson
                    
         Chief
      Financial Officer

Page 22

CERTIFICATIONS

I, James D. Delamater, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Northeast Bancorp;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
function):

a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Dated: May 14, 2003

|By: | /s/ James D. Delamater
|--- | ----------------------
|    | James D. Delamater    
|    | President and CEO     

Page 23

I, Robert S. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Northeast Bancorp;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent
function):

a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: May 14, 2003

|By: | /s/ Robert S. Johnson        
|--- | -----------------------------
|    | Robert S. Johnson            
|    | Chief Financial Officer      
|    | (Principal Financial Officer)

Page 24

NORTHEAST BANCORP
Index to Exhibits

|EXHIBIT NUMBER | DESCRIPTION
|-------------- | -----------
|               | 11