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, 1997
                          ------------------
                                  or
___ Transition report pursuant to Section 13 or 15 (d) of the Securities 
    Exchange Act of 1934

For the transition period from _______________ to _______________

Commission File Number    0 - 16123
                        _____________

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

                Maine                                  01 - 0425066
________________________________________   ____________________________________
   (State or other jurisdiction of         (I.R.S. Employer Identification No.)
    incorporation or organization)         
                                           
    232 Center Street, Auburn, Maine                       04210
________________________________________   ____________________________________
(Address of principal executive offices)                (Zip Code)             

                                  (207) 777 - 5950
_______________________________________________________________________________
               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 periods that the 
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.     Yes     _X_      No__         

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE 
PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and 
reports required to be filed by Section 12, 13 or 15 (d) of the Securities 
Exchange Act of 1934 subsequent to the distribution of securities under a plan 
confirmed by a court.

                              Not Applicable
                                                  
                  APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date.  

Shares outstanding as of May, 12, 1997:  1,274,969 of common stock, $1.00 par
value per share.

                                
                       NORTHEAST BANCORP AND SUBSIDIARIES
                            Table of Contents
                                    

Part I.   Financial Information
            
          Item 1.   Financial Statements (unaudited)
                 
                    Consolidated Balance Sheets
                     March 31, 1997 and June 30, 1996
                
                    Consolidated Statements of Income
                     Three Months ended March 31, 1997 and 1996   
               
                    Consolidated Statements of Income
                     Nine Months ended March 31, 1997 and 1996   
                 
                    Consolidated Statements of Changes in Shareholders' Equity
                      Nine Months ended March 31, 1997 and 1996 
               
                    Consolidated Statements of Cash Flows
                     Nine Months ended March 31, 1997 and 1996
              
                    Notes to Consolidated Financial Statements
          
          Item 2.   Management's Discussion and Analysis of Financial Condition
                     and Results of Operation
          
Part II.  Other Information
            
          Items 1 - 6.

          Signature Page

          Index to Exhibits


NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
                                    
<TABLE>   
<CAPTION>                                      
                                                 March 31,         June 30,
                                                   1997              1996
                                              _______________   _______________
<S>                                           <C>               <C>            
              Assets                                                           
Cash and due from banks                       $   3,700,489     $   3,386,263  
Interest bearing deposits in other banks            330,220           650,430
Federal Home Loan Bank overnight deposits         5,053,000         7,529,435
Trading account securities at market                 67,951           197,621
Available for sale securities                    28,363,128        29,650,319
Federal Home Loan Bank stock                      3,739,800         2,656,200
Loans held for sale                                 143,340           448,475
                                                                         
Loans                                           198,046,580       170,140,264
  Less deferred loan origination fees               168,002           289,340
  Less allowance for loan losses                  2,620,000         2,549,000
                                              _______________   _______________
    Net loans                                   195,258,578       167,301,924
                                                                               
Bank premises and equipment, net                  3,949,915         3,576,386
Real estate held for investment                     458,568           459,820
Other real estate owned                             631,075           513,831
Goodwill (net of accumulated amortization                                      
 of $1,162,340 at 3/31/97 and $940,059 at                                      
 6/30/96)                                         2,335,632         2,557,913
Other assets                                      3,492,858         3,360,998
                                              _______________   _______________
    Total Assets                                247,524,554       222,289,615  
                                              ===============   ===============
                                                                               
    Liabilities and Shareholders' Equity                                       
Liabilities                                                                    
Deposits                                      $ 154,672,129     $ 145,195,369  
Repurchase Agreements                             4,788,597         3,762,966
Advances from Federal Home Loan Bank             65,700,742        52,123,000
Notes payable                                     1,375,000         1,502,192
Other Liabilities                                 1,791,049         1,554,846
                                              _______________   _______________
  Total Liabilities                             228,327,517       204,138,373
                                                                         
Shareholders' Equity                                                     
Preferred stock, Series A, 45,454 shares                                    
 issued and outstanding                             999,988           999,988
Preferred stock, Series B, 71,428 shares                                    
 issued and outstanding                             999,992           999,992
Common stock, par value $1, 1,274,749 and                                
 1,234,010 shares issued at 3/31/97 and                                    
 6/30/96, respectively.  1,274,749 and                                  
 1,229,910 shares outstanding at 3/31/97 and                                 
 6/30/96, respectively                            1,274,749         1,234,010
Additional paid in capital                        5,636,702         5,455,852
Retained earnings                                11,112,636        10,351,031
                                              _______________   _______________
                                                 20,024,067        19,040,873
                                                                               
Net unrealized loss on available for sale                                      
 securities                                        (827,030)         (837,354) 
Treasury Stock at cost 4,100 shares at 6/30/96         --             (52,277)
                                              _______________   _______________
  Total Shareholders' Equity                     19,197,037        18,151,242
                                              _______________   _______________
  Total Liabilities and Shareholders' Equity  $ 247,524,554     $ 222,289,615
                                              ===============   ===============
                                                                               
</TABLE>                                                                       
                                                                               
NORTHEAST BANCORP AND SUBSIDIARIES                                             
Consolidated Statements of Income                                              
(Unaudited)                                                                    
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                      
                                                                               
                                                   Three Months Ended
                                                         March 31,    
                                                     1997           1996
                                              _______________   _______________
<S>                                           <C>               <C>            
Interest and Dividend Income                                                   
Interest on FHLB overnight deposits           $     119,816     $     129,919  
Interest on loans & loans held for sale           4,405,483         4,053,993
Interest on investment securities & available                                  
 for sale securities                                507,879           351,339
Dividends on Federal Home Loan Bank stock            60,658            35,868
Other Interest Income                                 4,247             5,220
                                              _______________   _______________
  Total Interest Income                           5,098,083         4,576,339
                                                                               
Interest Expense                                                               
Deposits                                          1,586,983         1,611,581
Repurchase agreements                                50,745            42,872
Other borrowings                                  1,079,816           654,874
                                              _______________   _______________
  Total Interest Expense                          2,717,544         2,309,327  
                                              _______________   _______________
                                                                              
Net Interest Income                               2,380,539         2,267,012
Provision for loan losses                           144,452           159,960
                                              _______________   _______________
  Net Interest Income after Provision for                                 
   Loan Losses                                    2,236,087         2,107,052
                                                                               
Other Income                                                                   
Service charges                                     237,975           250,005
Available for sale securities gains (losses)          2,306            19,187
Gain (Loss) on trading account                       73,187            16,093
Other                                               330,070           170,181
                                              _______________   _______________
  Total Other Income                                643,538           455,466
                                                                               
Other Expenses                                                                 
Salaries and employee benefits                    1,022,651         1,095,931
Net occupancy expense                               182,365           171,886
Equipment expense                                   199,731           180,026
Goodwill amortization                                74,094            74,335
FDIC Insurance-Assessment                                                --  
Other                                               674,999           557,960
                                              _______________   _______________
  Total Other Expenses                            2,153,840         2,080,138
                                              _______________   _______________
                                                                               
Income Before Income Taxes                          725,785           482,380
Income tax expense                                  274,796           180,575
                                              _______________   _______________
Net Income                                    $     450,989     $     301,805  
                                              ===============   ===============
                                                                               
Earnings Per Share                                                             
  Primary                                     $         0.31    $         0.20 
  Fully Diluted                               $         0.29    $         0.19 
                                                                               
</TABLE>                                                                       
                                                                               
NORTHEAST BANCORP AND SUBSIDIARIES                                             
Consolidated Statements of Income                                              
(Unaudited)                                                                    
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                      
                                                     Nine Months Ended
                                                          March 31,
                                                   1997              1996
                                              _______________   _______________
<S>                                           <C>               <C>            
Interest and Dividend Income                                                   
Interest on FHLB overnight deposits           $     289,002     $     485,995  
Interest on loans & loans held for sale          12,602,580        12,230,893
Interest on investment securities &                                            
 available for sale securities                    1,659,108           734,496
Dividends on Federal Home Loan Bank stock           157,450           109,605
Other Interest Income                                24,167            22,697
                                              _______________   _______________
  Total Interest Income                          14,732,307        13,583,686  
                                                                               
Interest Expense                                                               
Deposits                                          4,660,271         4,899,241
Repurchase agreements                               143,700           125,665
Other borrowings                                  2,864,590         1,847,784
                                              _______________   _______________
  Total Interest Expense                          7,668,561         6,872,690
                                              _______________   _______________
                                                                               
Net Interest Income                               7,063,746         6,710,996
Provision for loan losses                           433,710           455,524
                                              _______________   _______________
  Net Interest Income after Provision for                                      
   Loan Losses                                    6,630,036         6,255,472
                                                                               
Other Income                                                                   
Service charges                                     751,665           766,824
Available for sale securities gains (losses)         76,724           225,570
Gain (Loss) on trading account                      123,311            23,098
Other                                               588,578           604,746
                                              _______________   _______________
  Total Other Income                              1,540,278         1,620,238
                                                                               
Other Expenses                                                                 
Salaries and employee benefits                    3,017,503         3,091,775
Net occupancy expense                               449,840           420,155
Equipment expense                                   560,675           524,128
Goodwill amortization                               222,280           223,004
FDIC Insurance-Assessment                           296,860              --    
Other                                             1,769,524         1,772,671
                                              _______________   _______________
  Total Other Expenses                            6,316,682         6,031,733  
                                              _______________   _______________
                                                                               
Income Before Income Taxes                        1,853,632         1,843,977
Income tax expense                                  691,221           677,099
                                              _______________   _______________
Net Income                                    $   1,162,411     $   1,166,878
                                              ===============   ===============
                                                                               
Earnings Per Share                                                             
  Primary                                     $         0.80    $         0.83 
  Fully Diluted                               $         0.74    $         0.76
                                                                               
</TABLE>                                                                       
                                                                               
NORTHEAST BANCORP AND SUBSIDIARY                                               
Consolidated Statements of Changes in Shareholders' Equity                     
Nine Months Ended March 31, 1997 and 1996                                      
(Unaudited)                                                                    
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                      
                                                                               
                                                                                   Net
                                                                                 Unrealized
                                                                                Gains(Loses)
                                                        Additional              on Available
                                 Common     Preferred    Paid-In     Retained     for Sale      Treasury   
                                  Stock       Stock      Capital     Earnings    Securities       Stock           Total    
                              ------------ ----------- ----------- ------------ ------------  -------------   ------------
<S>                           <C>          <C>         <C>         <C>          <C>           <C>             <C>         
Balance at June 30, 1995      $   547,502  $1,999,980  $4,643,059  $10,180,244  $  (95,507)   $         0     $17,275,278 
Net income for nine months                                                    
 ended March 31, 1996                --          --          --      1,166,878         --               --      1,166,878 
Dividends paid on common stock       --          --          --       (187,930)        --               --       (187,930)
Dividends paid on preferred           
 stock                               --          --          --       (104,999)        --               --       (104,999)
Issuance of common stock              519        --         7,779         --           --               --          8,298
Common stock warrants exercised    50,000        --       650,000         --           --               --        700,000
Stock Split effected in the          
 form of a dividend               597,743        --          --       (597,743)        --               --              0 
Stock options exercised             8,000        --        32,000         --           --               --         40,000 
Net change in unrealized                
 losses on securities                     
 available for sale                  --          --          --           --       (388,251)            --       (388,251)
                              ------------ ----------- ----------- ------------ ------------  -------------   ------------ 
Balance March 31, 1996        $ 1,203,764  $1,999,980  $5,332,838  $10,456,450  $  (483,758)  $         0     $18,509,274 
                              ============ =========== =========== ============ ============  =============   ============
Balance at June 30, 1996        1,234,010   1,999,980   5,455,852   10,351,031     (837,354)      (52,277)     18,151,242 
Net income for nine months      
  ended March 31, 1997               --          --          --      1,162,411         --            --         1,162,411
Dividends paid on common stock       --          --          --       (295,807)        --            --          (295,807)
Dividends paid on preferred          
 stock                               --          --          --       (104,999)        --            --          (104,999)
Issuance of common stock              799        --         9,395         --           --          13,642          23,836
Common stock warrants exercised    19,940        --        88,005         --           --          67,055         175,000
Stock options exercised            20,000        --        83,450         --           --         (28,420)         75,030
Net change in unrealized              
  losses on securities                
  available for sale                 --          --          --           --         10,324          --            10,324
                              ------------ ----------- ----------- ------------ ------------  -------------   ------------
Balance March 31, 1997        $ 1,274,749  $1,999,980  $5,636,702  $11,112,636  $  (827,030)  $          0    $19,197,037
                              ============ =========== =========== ============ ============  =============   ============
                                                                               
</TABLE>                                                                       
                                                                               
NORTHEAST BANCORP AND SUBSIDIARY                                              
Consolidated Statements of Cash Flow                                           
(Unaudited)                                                                    
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                     
                                                                               
                                                      Nine Months Ended
                                                           March 31,
                                                   1997              1996
                                              _______________   _______________
<S>                                           <C>               <C>            
Cash provided by operating activities         $   2,270,005     $   3,567,289  
Cash flows from investing activities:                                          
  FHLB stock purchased                           (1,083,600)         (150,000) 
  Available for sale securities purchased       (12,412,186)      (35,381,445) 
  Available for sale securities principal                                      
   reductions                                     1,669,327           524,396  
  Available for sale securities sold             12,114,602        16,746,027 
  New loans, net of repayments & charge offs    (28,457,580)        1,993,534
  Net capital expenditures                         (776,591)         (248,449)
  Real estate owned sold                            369,567           585,116
  Real estate held for investment purchased          (1,965)          (56,096)
  Real estate held for investment sold                 --              40,000
                                              ---------------   ---------------
    Net cash (used in) investing activities     (28,578,426)      (15,946,917)
                                                                               
Cash flows from financing activities:                                          
  Net change in deposits                          9,476,760          (501,706) 
  Net change in repurchase agreements             1,025,631         1,196,884
  Dividends paid                                   (400,805)         (292,929)
  Proceeds from stock issuance                      273,866           748,298
  Net increase in advances from Federal Home                                  
   Loan Bank of Boston                           13,577,742         7,400,000 
  Net change in notes payable                      (127,192)         (383,278)
                                              ---------------   ---------------
    Net cash provided by financing activities    23,826,002         8,167,269  
                                              ---------------   ---------------
                                                                               
    Net (decrease) in cash and cash                                            
     equivalents                                 (2,482,419)       (4,212,359) 
                                                                              
Cash and cash equivalents, beginning of period   11,566,128        14,740,070
                                              ---------------   ---------------
Cash and cash equivalents, end of period      $   9,083,709     $  10,527,711
                                              ===============   ===============
                                                                               
Cash and cash equivalents include cash on                                      
 hand, amounts due from banks, interest                                        
 bearing deposits and federal funds sold                                       
                                                                               
                                                                               
Supplemental schedule of noncash investing                                    
 activities:                                                                   
Net change in valuation for unrealized market                                 
 value adjustments on available for sale                                      
 securities                                          10,324          (388,251)
Net transfer (to) from Loans to Other Real                                    
 Estate Owned                                       551,265          (100,174)
                                                                              
Supplemental disclosure of cash paid during                                    
 the period for:                                                              
Income taxes paid, net of refunds                   291,000           693,700
Interest paid                                     7,552,308         6,904,084

</TABLE>




NORTHEAST BANCORP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1997

1.  Basis of Presentation
    ---------------------
The accompanying unaudited condensed and consolidated financial statements have
been prepared in accordance with generally accepted accounting principles 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 generally accepted accounting principles 
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, 1997 are not necessarily indicative of the results that 
may be expected for the year ending June 30, 1997.  For further information, 
refer to the audited consolidated financial statements and footnotes thereto 
for the fiscal year ended June 30, 1996 included in the Company's annual report
on Form 10-K.

2.   Securities
     ----------
Securities available for sale at the carrying and approximate market values are
summarized below.

<TABLE>
<CAPTION>
                                March 31, 1997              June 30, 1996
                           -------------------------  -------------------------
                                           Market                     Market
                               Cost        Value          Cost        Value
                           ------------ ------------  ------------ ------------
<S>                        <C>          <C>           <C>          <C>
Debt securities issued by                                                      
 the U.S. Treasury and                                                       
 other U.S. Government                                                         
 corporations and agencies $ 1,499,197  $ 1,433,584   $ 1,497,111  $ 1,424,690 
Corporate bonds                149,682      139,847       149,646      139,005 
Mortgage-backed securities  27,252,760   26,202,083    28,810,113   27,646,294 
Equity securities              714,566      587,614       462,167      440,330 
                           ------------ ------------  ------------ ------------
                           $29,616,205  $28,363,128   $30,919,037  $29,650,319 
                           ============ ============  ============ ============
                                                                               
                                March 31, 1997              June 30, 1996
                           -------------------------  -------------------------
                                           Market                     Market
                               Cost        Value          Cost        Value
                           ------------ ------------  ------------ ------------
Due in one year or less    $   249,197  $   249,197   $   247,111  $   246,790 
Due after one year                                                             
 through five years            250,000      239,075       250,000      237,900 
Due after five years                                                           
 through ten years             149,682      139,847       149,646      139,005 
Due after ten years          1,000,000      945,312     1,000,000      940,000 
Mortgage-backed securities                                                    
 (including securities with                                                   
 interest rates ranging from                                                  
 5.15% to 10.0% maturing                                                      
 September 2003 to December                                                   
 2026)                      27,252,760   26,202,083    28,810,113   27,646,294 
Equity securities              714,566      587,614       462,167      440,330 
                           ------------ ------------  ------------ ------------
                           $29,616,205  $28,363,128   $30,919,037  $29,650,319
                           ============ ============  ============ ============
</TABLE>                                                                       
                                                                               
3.  Allowance for Loan Losses                                                  
    -------------------------                                                  
The following is an analysis of transactions in the allowance for loan losses:
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                      
                                                          Nine Months Ended    
                                                              March 31,       
                                                          1997         1996     
                                                      ------------ ------------
<S>                                                   <C>          <C>
Balance at beginning of year                          $ 2,549,000  $ 2,396,000 
Add provision charged to operations                       433,710      455,524
Recoveries on loans previously charged off                102,693       58,229 
                                                      ------------ ------------
                                                        3,085,403    2,909,753 
  Less loans charged off                                  465,403      412,753 
                                                      ------------ ------------
  Balance at end of period                            $ 2,620,000  $ 2,497,000 
                                                      ============ ============
</TABLE>

4.   Advances from Federal Home Loan Bank
     ------------------------------------
A summary of borrowings from the Federal Home Loan Bank is as follows:

<TABLE>
<CAPTION>
                                      March 31, 1997
                       --------------------------------------------
                         Principal        Interest        Maturity
                          Amounts           Rates          Dates
                       --------------  ---------------  ------------
                       <C>             <C>              <C>               
                       $ 42,294,000     4.97% - 7.03%       1998           
                         19,267,639     5.64% - 6.39%       1999            
                          1,802,276     6.21% - 6.49%       2002             
                          2,336,827     6.36% - 6.67%       2004          
                       --------------                                  
                       $ 65,700,742                                    
                       ==============                                
                                                                           
                                       June 30, 1996                  
                       ---------------------------------------------
                         Principal        Interest        Maturity      
                          Amounts           Rates          Dates      
                       --------------  ---------------  ------------
                       $ 31,400,000     5.17% - 8.30%       1997
                          5,573,000     4.97% - 6.86%       1998
                         14,500,000     5.64% - 6.35%       1999
                            325,000         6.40%           2001
                            325,000         6.61%           2003
                       --------------
                       $ 52,123,000      
                       ==============
</TABLE>

5.   New Accounting Pronouncements
     -----------------------------
In June 1996, FASB issued Statement No. 125, Accounting for Transfers and 
Servicing of Financial Assets and Extinguishments of Liabilities ("Statement 
125").  Statement 125 provides accounting and reporting standards for transfers
and servicing of financial assets and extinguishments of liabilities.  Those 
standards are based on consistent application of a financial-components 
approach that focuses on control.  Under that approach, after a transfer of 
financial asssets, an entity recognizes the financial and servicing assets it 
controls and the liabilities it has incurred, derecognizes financial assets 
when control has been surrendered, and derecognizes liabilities when 
extinguished.  Statement 125 provides consistent standards for distinguishing 
transfers of financial assets that are sales from transfers that are secured 
borrowings.  Statement 125 is effective for transfers and servicing of 
financial assets and extinguishments of liabilities occuring after December 31,
1996.  The adoption of Statement 125 was not material to the Company's 
financial position, liquidity, or results of operations.


                     NORTHEAST BANCORP AND SUBSIDIARY
                                  Part I.

Item 2. Management's Discussion and Analysis of Financial Condition and Results
        -----------------------------------------------------------------------
        of Operation
        ------------
Financial Condition 
-------------------
Total consolidated assets were $247,524,554 on March 31, 1997, which represents
an increase of $25,234,939 from June 30, 1996.  Total loans increased by 
$27,956,654 while loans held for sale decreased by $305,135.  Federal Home Loan
Bank ("FHLB") stock increased by $1,083,600, while securities and cash 
equivalents decreased by $1,416,861 and $2,482,419, respectively, during the 
same period.  Total deposits, repurchase agreements and FHLB borrowings 
increased by $9,476,760, $1,025,631 and $13,577,742, respectively from June 30,
1996 to March 31, 1997.

The decrease in cash equivalents, FHLB overnight deposits and securities was 
utilized to support the increase in the loan portfolio from June 30, 1996 to 
March 31, 1997.  FHLB stock increased due to the increased levels of FHLB 
advances during the same time period.  The FHLB requires financial institutions
to hold a certain level of FHLB stock based on advances outstanding.

Total loans increased by $27,956,654 for the nine months ended March 31, 1997, 
which was a $9,260,591 increase from December 31, 1996.  The loan portfolio 
growth was in 1-4 family mortgages, commercial real estate and commercial 
loans.  On December 4, 1996, the Company purchased approximately $10,000,000 of
1-4 family mortgages.  The loans purchased were all one year adjustable rate 
mortgages secured by property located in the state of Maine.  On January 31, 
1997, the Company purchased an additional loan portfolio of approximately 
$10,000,000.  The purchase consisted of 1-4 family adjustable rate mortgages 
secured by property located primarily in the state of Maine.  By April 30,1997,
the Company had committed to purchasing an additional $5,000,000 of 1-4 family
adjustable rate mortgages secured by property located primarily in the state of
Maine. The Company's local market as well as the secondary market has become, 
and continues to be, very competitive for loan volume.  The local competitive 
environment and customer response to favorable secondary market rates have 
affected the Company's ability to increase the loan portfolio.  In the effort 
to increase loan volume, the Company's offering rates for its loan products 
have been reduced to compete in the various markets.  While loan volume has 
increased in the nine months of this fiscal year, the Company will experience
some margin compression due to decreased loan rates.

The loan portfolio contains elements of credit and interest rate risk.  The 
Company primarily lends within its local market areas, which management 
believes helps them to better evaluate credit risk.  The Company also maintains
a well collateralized position in real estate mortgages.  Residential real 
estate mortgages make up 70% of the total loan portfolio, in which 53% of the 
residential loans are variable rate products.  It is management's intent to 
increase the volume in variable rate residential loans, by selling fixed rate 
loans to the secondary market and maintaining portfolio variable rate loans, to
reduce the interest rate risk in this area. 

Sixteen percent of the Company's total loan portfolio balance is commercial 
real estate mortgages. Similar to residential mortgages, the Company tries to 
mitigate credit risk by lending in its local market area as well as maintaining
a well collateralized position in real estate.  Commercial real estate loans 
have minimal interest rate risk as 88% of the portfolio consists of variable 
rate products. 

Commercial loans make up 8% of the total loan portfolio, of which 80% are 
variable rate instruments.  The credit loss exposure on commercial loans is 
highly dependent on the cash flow of the customer's business.  The Company's 
subsidiary, Northeast Bank, FSB (the "Bank"), attempts to mitigate losses in 
commercial loans through lending in accordance with the Company's credit policy
guidelines established by the Bank's Board of Directors.

Consumer and other loans make up 6% of the loan portfolio.  Since these loans 
are primarily fixed rate products, they have interest rate risk when market 
rates increase.  These loans also have credit risk with, at times, minimal 
collateral security. Management attempts to mitigate these risks by keeping the
products offered short-term, receiving a rate of return commensurate with the 
measured risks, and lending to individuals in the Company's known market areas.

The net increase in the Company's premises and equipment is primarily due to 
the construction of the new branch in Auburn, Maine.

Other real estate owned increased by $117,244 from June 30, 1996 to March 31,
1997.  This increase was attributable to foreclosures on loan collateral.

Cash provided by operating activities on the Company's Consolidated Statements 
of Cash Flows decreased by $1,297,284 at March 31, 1997 compared to March 31, 
1996.  The decrease was primarily due to the timing of payments in other 
liabilities.

Total deposits were $154,672,129 and securities sold under repurchase 
agreements were $4,788,597 as of March 31, 1997.  These amounts represent an 
increase of $9,476,760 and $1,025,631, respectively, compared to June 30, 1996.
The increase in deposits was primarily due to the opening of the Company's new 
branch in Auburn, Maine.  Brokered deposits represented $7,878,307 of the total
deposits at March 31, 1997.  The Company utilizes brokered deposits as 
alternative sources of funds.  Brokered deposits are similar to local deposits,
in that both are interest rate sensitive with  respect to the Company's ability
to retain the funds.  Cross selling strategies are employed by the Bank to 
develop deposit growth.  Even though deposit interest rates increased during 
the first nine months in fiscal 1997, the rate of return was much stronger in 
other financial instruments such as mutual funds and annuities.  Like other 
companies in the banking industry, the Bank will be challenged to maintain 
and/or increase its core deposit base.

Total advances from the FHLB were $65,700,742 as of March 31, 1997, an increase
of $13,577,742 compared to June 30, 1996.  The cash received from FHLB advances
was utilized for the increase in the loan portfolio.  The Company's current 
advance availability, subject to the satisfaction of certain conditions, is 
approximately $42,500,000 greater than the March 31, 1997 advances reported. 
Mortgages, free of liens, pledges and encumbrances are required to be pledged 
to secure FHLB advances.  The Company utilizes FHLB advances, as alternative 
sources of funds, when the interest rates of the advances are less than market 
deposit interest rates and to fund short-term liquidity demands for loan 
volume.  With the borrowing capacity at the Federal Home Loan Bank, the normal 
growth in bank deposits and repurchase agreements and the immediate 
availability of the Bank's cash equivalents as well as securities available for
sale, management believes that the Company's available liquidity resources are 
sufficient to support anticipated growth.

Total equity of the Company was $19,197,037 as of March 31, 1997 versus 
$18,151,242 at June 30, 1996.   Book value per common share was $13.49 as of 
March 31, 1997 versus $13.13 at June 30, 1996.  Total equity to total assets of
the Company as of March 31, 1997 was 7.76%.

At March 31, 1997, the Bank's regulatory capital was in compliance with 
regulatory capital requirements as follows:

<TABLE>
<CAPTION>
                            Northeast Bank, F.S.B.
                       Actual Capital        Required Capital    Excess Capital
                      Amount      Ratio      Amount      Ratio      Amount   
                   ------------- -------  ------------- -------  --------------
<S>                <C>           <C>      <C>           <C>      <C>           
Tangible capital   $ 17,180,000   7.00%   $  3,683,000   1.50%   $ 13,497,000  
Core capital       $ 17,180,000   7.00%   $  7,366,000   3.00%   $  9,814,000
Leverage capital   $ 17,180,000   7.00%   $  9,822,000   4.00%   $  7,358,000
Risk-based capital $ 18,414,000  12.20%   $ 12,073,000   8.00%   $  6,341,000

</TABLE>

The carrying value of securities available for sale by the Company was 
$28,363,128, which is $1,253,077 less than the cost of the underlying 
securities, at March 31, 1997.  The difference between the carrying value and 
the cost of the securities was primarily attributable to the decline in the 
market value of mortgage-backed securities, which was due to the change in 
current market prices from the prices at the time of purchase.  The Company has
primarily invested in mortgage-backed securities.  Substantially all of the 
mortgage-backed securities are high grade government backed securities.  As in 
any long term earning asset in which the earning rate is fixed, the market 
value of mortgage-backed securities will decline when market interest rates 
increase from the time of purchase.  Since these mortgage-backed securities are
backed by the U.S. government, there is little or no risk in loss of principal.
Management believes that it would be advantageous to hold these securities 
until the market values recover and that the yields currently received on this 
portfolio are satisfactory.

The Company's allowance for loan losses was $2,620,000 as of March 31, 1997 
versus $2,549,000 as of June 30, 1996, representing 1.32% and 1.50% of total 
loans, respectively.  The Company had non-performing loans totaling $2,765,000 
at March 31, 1997 compared to $2,603,000 at June 30, 1996.  Non-performing 
loans represented 1.12% and 1.17% of total assets at March 31, 1997 and June 
30, 1996, respectively.  The Company's allowance for loan losses was equal to 
95% and 98% of the total non-performing loans at March 31, 1997 and June 30, 
1996, respectively.  At March 31, 1997, the Company had approximately $558,000 
of loans classified substandard, exclusive of the non-performing loans stated 
above, that could potentially become non-performing due to delinquencies or 
marginal cash flows.  As of March 31, 1997, the amount of such loans had 
decreased from the June 30, 1996 amount by $1,983,000.  This decrease was 
attributed to the reclassification of loans to lower risk classifications as a 
result of favorable changes to in the borrower's financial condition, 
indicating a decreased potential for these loans becoming non-performing 
assets.  Along with non-performing and delinquent loans, management takes an 
aggressive posture in reviewing its loan portfolio to classify loans 
substandard.  The following table represents the Company's non-performing loans
as of March 31, 1997 and June 30, 1996, respectively:
                                                             
<TABLE>
<CAPTION>

                                            March 31,         June 30,
                    Description               1997              1996        
             -------------------------   ---------------   ---------------
             <S>                         <C>               <C>             
             1-4 Family Mortgages        $   1,234,000     $   1,092,000     
             Commercial Mortgages              953,000         1,154,000   
             Commercial Installment            517,000           283,000   
             Consumer Installment               61,000            74,000   
                                         ---------------   ---------------
               Total non-performing      $   2,765,000     $   2,603,000   
                                         ===============   ===============
</TABLE>

The majority of the non-performing and substandard loans are seasoned loans 
located in the Oxford county area.  This geographic area continues to have a 
depressed economy resulting in high unemployment and a soft real estate market.
As a result, management has allocated substantial resources to collections in 
an effort to control the growth in non-performing, delinquent and substandard 
loans.  The Company had an increase in its total delinquent accounts during the
March 31, 1997 quarter.  The increase in delinquency was largely due to the 
increase in non-performing loans, when compared to the December 31, 1996 
quarter.

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

<TABLE>

               <C>          <C>          <C>          <C>
               6-30-96      9-30-96      12-31-96     3-31-97                  
                2.77%        1.53%         1.24%       1.52%

</TABLE>

The level of the allowance for loan losses as a percentage of total loans and 
as a percentage of non-performing loans at March 31, 1997 decreased from June 
30,1996.  Total delinquencies as a percentage of total loans increased during 
the quarter ended March 31,1997.  Loans classified substandard decreased from 
June 30, 1996 to March 31, 1997.  Based on reviewing the credit risk and 
collateral of delinquent, non-performing and classified loans, management 
considers the allowance for loan losses to be adequate.

On a regular and ongoing basis, Company management evaluates the adequacy of 
the allowance for loan losses.  The process to evaluate the allowance involves 
a high degree of management judgement.  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.  

Maine's economy, in which the Bank operates, including the south central region
of Cumberland, Androscoggin and Sagadahoc counties has stabilized with moderate
growth, although the economy in the western region of Oxford county remains 
weak.  Based on the different economic conditions in the Bank's market areas, 
management of the Company continues to carefully monitor the exposure to credit
risk at the Bank.

While management uses its best judgement in recognizing loan losses in light of
available information, 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 Company's allowance for loan losses.  Such 
agencies may require the Company to recognize additions to the allowance for 
loan losses based on their judgements about information available to them at 
the time of their examination.  The Company's most recent examination by the 
OTS was on August 19, 1996.  At the time of the exam the regulators proposed no
additions to the allowance for loan losses.

Results of Operations

Net income for the quarter ended March 31, 1997 was $450,989.  Primary earnings
per share was $.31 and fully diluted earnings per share was $.29 for the 
quarter ended March 31, 1997.  This compares to earnings of $301,805 or a 
primary earnings per share of $.20 per share and a fully diluted earnings per 
share of $.19, for the quarter ended March 31, 1996.  Net income for the nine 
months ended March 31, 1997 was $1,162,411 versus $1,166,878 for the period 
ended March 31, 1996.  Primary earnings per share was $.80 and fully diluted 
earnings per share was $.74 for the nine month period ended March 31, 1997 
versus primary earnings per share of $.83 and fully diluted earnings per share 
of $.76 for the period ended March 31, 1996. 

In September of 1996, Congress enacted comprehensive legislation amending the 
FDIC BIF-SAIF deposit insurance assessment on savings and loan institution 
deposits.  The legislation imposed a one-time assessment on institutions 
holding SAIF deposits on March 31, 1995, in an amount necessary for the SAIF to
reach its 1.25% Designated Reserve Ratio.  Institutions with SAIF deposits were
required to pay an assessment rate of 65.7 cents per $100 of domestic deposits 
held as of March 31, 1995.  The Bank held approximately $57,900,000 of SAIF 
deposits as of March 31, 1995.  This resulted in an expense of $380,000 which 
was reflected in the Company's September 30, 1996 quarter end financial 
statements.  During the December 31, 1996 quarter, Congress issued final 
legislation which enabled certain qualifying institutions to apply for a 20%
discount on the special assessment.  The Bank received a credit of $83,140 
reducing the assessment expense in the December 31, 1996 quarter.  The net 
effect of the one time assessment was $296,860 and decreased the Company's 
primary earnings per share by $.15 and the fully diluted earnings per share by 
$.13 for the nine months ended March 31, 1997.  Commencing in 1997 and 
continuing through 1999, the Bank is required to pay an annual assessment of 
1.29 cents for every $100 of domestic BIF insured deposits and 6.44 cents for 
every $100 of domestic SAIF insured deposits.  At the Bank's current deposit 
level, the 1997 annual assessment would be approximately $64,000.  Commencing 
in 2000 and continuing through 2017, banks would be required to pay a flat 
annual assessment of 2.43 cents for every $100 of domestic deposits.  If there
are no additional deposit assessments in the future, it is anticipated that the
Company will save approximately $82,000 annually commencing in fiscal 1998.

The Company's net interest income was $2,380,539 for the quarter ended March 
31, 1997 versus $2,267,012 for the quarter ended March 31, 1996, for an 
increase of $113,527.  This increase was due to an increase of $521,744 in 
total interest income offset by an increase in total interest expense of 
$408,217.

The Company's net interest income was $7,063,746 for the nine months ended 
March 31, 1997, versus $6,710,996 for the nine months ended March 31, 1996, an 
increase of $352,750.  Total interest income increased $1,148,621 during the 
nine months ended March 31, 1997 compared to the nine months ended March 31, 
1996, resulting from the following items: (I) interest income on loans and 
loans held for sale increased by $371,687 for the nine months ended March 31, 
1997 resulting from a $812,644 increase due to an increase in the volume of 
loans, which was offset by a decrease of $440,957 due to decreased rates on 
loans;  (II) interest income on investment securities increased by $926,564 
resulting from a $908,600 increase due to an increase in volume as well as an 
increase of $17,964 due to increased rates on investments; and  (III) interest
income on short term liquid funds decreased by $149,630 resulting from a 
$112,968 decrease due to a decrease in volume as well as a decrease of $36,662 
due to decreased rates on FHLB overnight deposits.

The increase in total interest expense of $795,871 for the nine months ended 
March 31, 1997 resulted from the following items:  (I) interest expense on 
deposits decreased by $238,970 for the nine months ended March 31, 1997 
resulting from a $33,041 decrease due to a decrease in the volume of deposits 
as well as a decrease of $205,929 due to decreasing deposit rates;  (II) 
interest expense on repurchase agreements increased by $18,035 due to an 
increase of $31,450 in the volume of repurchase agreements offset by a decrease
of $13,415 due to a decrease in rates; and  (III) interest expense on 
borrowings increased by $1,016,806 for the nine months ended March 31, 1997 
resulting from an increase of $1,136,176 due to an increase in the volume of 
borrowings offset by a decrease of  $119,370 due to a change in the mix of 
interest rates on borrowings.  The changes in net interest income, as explained
above, are also presented in the schedule below.

Northeast Bancorp
Rate/Volume Analysis for the nine months ended
March 31, 1997 versus March 31, 1996

<TABLE>
<CAPTION>

                                Difference Due to
                                Volume       Rate       Total
                              -----------  -----------  -----------   
<S>                           <C>          <C>          <C>         
Investments                   $  908,600   $   17,964   $  926,564  
Loans                            812,644     (440,957)     371,687  
FHLB & Other Deposits           (112,968)     (36,662)    (149,630)
                              -------------------------------------
  Total                        1,608,276     (459,655)   1,148,621  
                                                                      
Deposits                         (33,041)    (205,929)    (238,970)  
Repurchase Agreements             31,450      (13,415)      18,035  
Borrowings                     1,136,176     (119,370)   1,016,806  
                              -------------------------------------
  Total                        1,134,585     (338,714)     795,871  
                              -------------------------------------
    Net Interest Income       $  473,691   $ (120,941)  $  352,750  
                              =====================================
</TABLE>

Rate/Volume amounts spread proportionately between volume and rate.

The majority of the Company's income is generated from the Bank.  Management 
believes that the Bank is slightly asset sensitive based on its own internal 
analysis which considers its core deposits long term liabilities that are 
matched to long term assets; therefore, it will generally experience a 
contraction in its net interest margins during a period of falling rates.  
Management believes that the maintenance of a slight asset sensitive position 
is appropriate since historically interest rates tend to rise faster than they 
decline.  Approximately 22% of the Company's loan portfolio is comprised of 
floating rate loans based on a prime rate index.  Interest income on these 
existing loans will increase as the prime rate increases, as well as on 
approximately 36% of other loans in the Company's portfolio that are based on 
short-term rate indices such as the one-year treasury bill.  An increase in 
short-term interest rates will also increase deposit and FHLB advance rates, 
increasing the Company's interest expense.  The Company is experiencing and 
anticipates additional net interest margin compression due to fluctuating 
rates.  The impact on net interest income will depend on, among other things, 
actual rates charged on the Company's loan portfolio, deposit and advance rates
paid by the Company and loan volume.

Total non-interest income was $643,538 and $1,540,278 for the three and nine 
months ended March 31, 1997 versus $455,466 and $1,620,238 for the three and 
nine months ended March 31, 1996.  Service fee income was $237,975 and $751,665
for the three and nine months ended March 31, 1997 versus $250,005 and $766,824
for the three and nine months ended March 31, 1996.  The $15,159 service fee 
decrease for the nine months ended March 31, 1997 was primarily due to a 
reduction in loan fee income.  Income from available for sale securities gains 
was $2,306 and $76,724 for the three and nine months ended March 31, 1997 
versus $19,187 and $225,570 for the three and nine months ended March 31, 1996.
Gains from the sale of securities decreased in the nine months ended March 31, 
1997 by $148,846 compared to the nine months ended March 31, 1996.  The Company
sold some of its available for sale securities during the nine month period 
ended March 31, 1996, taking advantage of the fluctuation in market prices in 
the mortgage-backed security portfolio.  Income from trading account securities
was $73,187 and $123,311 for the three and nine month periods ended March 31, 
1997 versus $16,093 and $23,098 for the three and nine month periods ended 
March 31, 1996.  The increase in the gain on trading account, in the three and 
nine month period ended March 31, 1997, was due to the sale and appreciation in
the market values of the securities classified as trading.

Other income was $330,070 and $588,578 for the three and nine months ended 
March 31, 1997, which was an increase of $159,889 and a decrease of $16,168 
from other income of $170,181 and $604,746 for the three and nine months ended 
March 31, 1996.  The increase in other income in the three months ended March 
31,1997, was primarily due to the following items: (I) gains on the sale of 
loans held for sale amounted to $118,836 for the three months ended March 31, 
1997 versus $67,968 for the three months ended March 31, 1996, the increase was
due to the sale of SBA guarenteed loans; (II) other income increased from 
rental income and gains on the sale of other real estate owned, which were 
$45,275 and $29,839 for the three months ended March 31, 1997 versus $13,602 
and $3,541 for the three months ended March 31, 1996, respectively.

Total operating expense, or non-interest expense, for the Company was 
$2,153,840 and $6,316,682 for the three and nine months ended March 31, 1997 
versus $2,080,138 and $6,031,733 for the three and nine months ended March 31, 
1996.  The increase in occupancy and equipment expense for the three and nine 
months ended March 31, 1997 was due to costs associated with the new branch 
opened in Auburn, Maine as well as normal growth and maintenance.  Other 
expenses increased by $117,039 for the three months ended March 31, 1997, 
compared to March 31, 1996.  The increase in other expenses was primarily due 
to professional services, advertising expenses and loan expenses.  As 
previously discussed above, the Company's operating expenses, for the nine 
months ended March 31, 1997, increased primarily due to the FDIC-SAIF deposit 
insurance assessment of $296,860.  Excluding the deposit assessment, the 
Company's operating expenses were $6,019,822 for the nine months ended March 
31, 1997, which was a decrease of $11,911 when compared to the nine months
ended March 31, 1996.

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.


                   NORTHEAST BANCORP AND SUBSIDIARIES
                      Part II - Other Information

Item 1.  Legal Proceedings
          -----------------
Not Applicable.


Item 2.  Changes in Securities
         ---------------------
(a)  Not applicable.

(b)  Not applicable.

(c)  On February 18, Square Lake Holding Co, ("Square Lake") exercised warrants
     to purchase 25,000 common shares of the Company at a purchase price of 
     $7.00 per share, for an aggregate purchase price of $175,000.  There was 
     no underwriting discount or commission.  The warrants had been issued to 
     Square Lake pursuant to a Stock Purchase Agreement dated as of May 14, 
     1992 in a transaction exempt from registration under the Securities Act of
     1933 pursuant to Section 4(2) thereof.  The warrants were offered and sold
     to a single purchaser for investment in a negotiated transaction not 
     involving general solicitation.  No underwriter was involved in the sale 
     of the warrants.


Item 3.  Defaults Upon Senior Securities
         -------------------------------
Not Applicable.


Item 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------
Not Applicable.


Item 5.  Other Information
         -----------------
(a)      On May 9, 1997, Northeast Bancorp signed a definitive agreement to 
         purchase Cushnoc Bank.  The acquisition will be reported on Form 8-K 
         which will be filed by May 24, 1997.


Item 6.  Exhibits and Reports on Form 8 - K
         ----------------------------------
(a)  Exhibits

Not Applicable.
                                    
11   Statement regarding computation of per share.

27   Financial data schedule

(b)  Reports on Form 8 - K
     ---------------------
     No reports on Form 8 - K have been filed during the quarter ended March 
     31, 1997.





                          NORTHEAST BANCORP AND SUBSIDIARIES
                                     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.                    
                                    
                                    
                                    
                                    
                                NORTHEAST BANCORP             
                         -------------------------------
                                  (Registrant)              
                                                             
                                                           
                                                             
                              /s/ James D. Delamater            
                         -------------------------------
                                James D. Delamater        
                                President and CEO          
                                                               
                                                           
                                                              
                                /s/ Richard Wyman               
                         -------------------------------
                                  Richard Wyman               
                             Chief Financial Officer         
                                                              
                                                                           
                                                                        
Date:  May 13, 1997                                                  
                                                                   
                                                                  
                                                                        
                                                                 
                                                                
                        NORTHEAST BANCORP AND SUBSIDIARIES
                                Index to Exhibits         
                                    
                                                        
EXHIBIT NUMBER                          DESCRIPTION                           
                              
      11                Statement regarding computation of per share earnings 
      27                Financial Data Schedule