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       December 31, 1996

                                     or

___ Transition report persuant 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)                                            
                                                                               
    158 Court Street, Auburn, Maine                       04210                
________________________________________    ___________________________________
(Address of principal executive offices)                (Zip Code)            

                               (207) 777 -5950
_______________________________________________________________________________
              Registrant's telephone number, including area code

_______________________________________________________________________________
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 February 10, 1997: 1,234,749 of common stock, $1.00 
par value per share.


                                    
                     NORTHEST BANCORP AND SUBSIDIARY
                            Table of Contents
                                    
                                        
Part I.   Financial Information
           
          Item 1.   Financial Statements (unaudited)
                     
                    Consolidated Balance Sheets
                     December 31, 1996 and June 30, 1996        
                      
                    Consolidated Statements of Income
                     Three Months ended December 31, 1996 and 1995             
                       
                    Consolidated Statements of Income
                     Six Months ended December 31, 1996 and 1995               
                     
                    Consolidated Statements of Changes in Shareholders' Equity
                     Six Months ended December 31, 1996 and 1995               
                       
                    Consolidated Statements of Cash Flows
                     Six Months ended December 31, 1996 and 1995               
                        
                    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 SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)

<TABLE>
<CAPTION>
                                               December 31,        June 30,   
                                                   1996              1996      
                                              ---------------   ---------------
<S>                                           <C>               <C>            
               Assets                                                          
Cash and due from banks                       $   3,708,584     $   3,386,263  
Interest bearing deposits in other banks            341,553           650,430  
Federal Home Loan Bank overnight deposits         5,262,000         7,529,435  
Trading account securities at market                 35,753           197,621  
Available for sale securities                    28,896,205        29,650,319  
Federal Home Loan Bank stock                      3,433,200         2,656,200  
Loans held for sale                                 123,405           448,475  
                                                                               
Loans                                           188,691,754       170,140,264  
  Less deferred loan origination fees               210,767           289,340  
  Less allowance for loan losses                  2,483,000         2,549,000  
                                              ---------------   ---------------
    Net loans                                   185,997,987       167,301,924  
                                                                               
Bank premises and equipment, net                  3,719,385         3,576,386  
Real estate held for investment                     457,675           459,820  
Other real estate owned                             635,736           513,831  
Goodwill (net of accumulated amortization                                      
 of $1,088,246 at 12/31/96 and $940,059 at                                     
 6/30/96)                                         2,409,726         2,557,913  
Other assets                                      3,437,836         3,360,998  
                                              ---------------   ---------------
    Total Assets                                238,459,045       222,289,615  
                                              ===============   ===============
                                                                               
                                                                               
     Liabilities and Shareholders' Equity                                      
Liabilities                                                                    
Deposits                                      $ 142,959,996     $ 145,195,369  
Repurchase Agreements                             5,213,846         3,762,966  
Advances from Federal Home Loan Bank             68,663,634        52,123,000  
Notes payable                                     1,375,000         1,502,192  
Other Liabilities                                 1,503,491         1,554,846  
                                              ---------------   ---------------
  Total Liabilities                             219,715,967       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, 1,234,577 and                                      
 1,234,010 shares issued at 12/31/96 and                                       
 6/30/96, respectively.  1,231,547 and                                         
 1,229,910 shares outstanding at 12/31/96                                      
 and 6/30/96, respectively                        1,234,577         1,234,010  
Additional paid in capital                        5,462,231         5,455,852  
Retained earnings                                10,795,426        10,351,031  
                                              ---------------   ---------------
                                                 19,492,214        19,040,873  
Net unrealized loss on available for sale                                      
 securities                                        (710,501)         (837,354) 
Treasury Stock at cost 3,030 shares at                                         
 12/31/96 and 4,100 shares at 6/30/96               (38,635)          (52,277)
                                              ---------------   ---------------
  Total Shareholders' Equity                     18,743,078        18,151,242  
                                              ---------------   ---------------
  Total Liabilities and Shareholders' Equity  $ 238,459,045     $ 222,289,615  
                                              ===============   ===============
                                                                               
</TABLE>                                                                       
                                                                               
NORTHEAST BANCORP AND SUBSIDIARY                                               
Consolidated Statements of Income                                              
(Unaudited)                                                                    
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                      
                                                                               
                                                     Three Months Ended        
                                                       December 31,            
                                                   1996              1995      
                                              ---------------   ---------------
<S>                                           <C>               <C>            
Interest and Dividend Income                                                   
Interest on FHLB overnight deposits           $      81,122     $     174,511  
Interest on loans & loans held for sale           4,209,837         4,078,736  
Interest on investment securities &                                            
 available for sale securities                      568,645           222,578  
Dividends on Federal Home Loan Bank stock            50,384            36,887  
Other Interest Income                                 7,601            11,978  
                                              ---------------   ---------------
  Total Interest Income                           4,917,589         4,524,690  
                                                                               
Interest Expense                                                               
Deposits                                          1,533,721         1,652,178  
Repurchase agreements                                54,686            48,880  
Other borrowings                                    929,928           592,950  
                                              ---------------   ---------------
  Total Interest Expense                          2,518,335         2,294,008  
                                              ---------------   ---------------
                                                                               
Net Interest Income                               2,399,254         2,230,682  
Provision for loan losses                           144,443           147,708  
                                              ---------------   ---------------
  Net Interest Income after Provision for                                      
   Loan Losses                                    2,254,811         2,082,974  
                                                                               
Other Income                                                                   
Service charges                                     246,741           235,211  
Available for sale securities gains (losses)         46,117            85,791  
Gain (Loss) on trading account                      (11,241)            7,006  
Other                                               110,439           222,470  
                                              ---------------   ---------------
  Total Other Income                                392,056           550,478  
                                                                               
Other Expenses                                                                 
Salaries and employee benefits                      970,327           952,595  
Net occupancy expense                               140,505           126,373  
Equipment expense                                   183,916           175,814  
Goodwill amortization                                74,094            74,335  
FDIC Insurance Assessment                           (83,140)             --    
Other                                               533,311           606,554  
                                              ---------------   ---------------
  Total Other Expenses                            1,819,013         1,935,671  
                                              ---------------   ---------------
                                                                               
Income Before Income Taxes                          827,854           697,781  
Income tax expense                                  299,694           254,345  
                                              ---------------   ---------------
Net Income                                    $     528,160     $     443,436  
                                              ===============   ===============
                                                                               
Earnings Per Share                                                             
  Primary                                     $         0.37    $         0.32 
  Fully Diluted                               $         0.33    $         0.29 
                                                                               
</TABLE>                                                                        
                                                                               
NORTHEAST BANCORP AND SUBSIDIARY                                               
Consolidated Statements of Income                                              
(Unaudited)                                                                    
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                      
                                                                               
                                                        Six Months Ended       
                                                          December 31,         
                                                   1996              1995      
                                              ---------------   ---------------
<S>                                           <C>               <C>            
Interest and Dividend Income                                                   
Interest on FHLB overnight deposits           $     169,187     $     356,076 
Interest on loans & loans held for sale           8,197,097         8,176,899 
Interest on investment securities &                                            
 available for sale securities                    1,151,229           383,158 
Dividends on Federal Home Loan Bank stock            96,793            73,737 
Other Interest Income                                19,917            17,476 
                                              ---------------   ---------------
  Total Interest Income                           9,634,223         9,007,346 
                                                                               
Interest Expense                                                               
Deposits                                          3,073,287         3,287,660 
Repurchase agreements                                92,956            82,793 
Other borrowings                                  1,784,774         1,192,909  
                                              ---------------   ---------------
  Total Interest Expense                          4,951,017         4,563,362 
                                              ---------------   ---------------
                                                                               
Net Interest Income                               4,683,206         4,443,984 
Provision for loan losses                           289,257           295,563 
                                              ---------------   ---------------
  Net Interest Income after Provision for                                      
   Loan Losses                                    4,393,949         4,148,421 
                                                                               
Other Income                                                                   
Service charges                                     513,690           516,820 
Available for sale securities gains (losses)         74,417           206,383 
Gain (Loss) on trading account                       50,124             7,006 
Other                                               258,509           434,563 
                                              ---------------   ---------------
  Total Other Income                                896,740         1,164,772  
                                                                               
Other Expenses                                                                 
Salaries and employee benefits                    1,994,852         1,995,844  
Net occupancy expense                               267,475           248,269  
Equipment expense                                   360,943           344,102  
Goodwill amortization                               148,187           148,669  
FDIC Insurance Assessment                           296,860              --    
Other                                             1,094,525         1,214,711  
                                              ---------------   ---------------
  Total Other Expenses                            4,162,842         3,951,595  
                                              ---------------   ---------------
                                                                               
Income Before Income Taxes                        1,127,847         1,361,598  
Income tax expense                                  416,426           496,525  
                                              ---------------   ---------------
Net Income                                    $     711,421     $     865,073  
                                              ===============   ===============
                                                                               
Earnings Per Share                                                             
  Primary                                     $         0.48    $         0.64 
  Fully Diluted                               $         0.45    $         0.58 
                                                                               
</TABLE>                                                                        
                                                                               
NORTHEAST BANCORP AND SUBSIDIARY                                               
Consolidated Statements of Changes in Shareholders' Equity                     
Six Months Ended December 31, 1996 and 1995                                    
(Unaudited)                                                                    
                                                                               
<TABLE>                                                                        
<CAPTION>                                                                      
                                                                                  Net
                                                                                 Unrealized
                                                                                Gains(Losses)
                                                      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 six months                                                  
  ended December 31, 1995          --          --          --         865,073         --               --       865,073 
Dividends paid on common                                                       
  stock                            --          --          --         (91,629)        --               --       (91,629)
Dividends paid on preferred                                               
  stock                            --          --          --         (70,000)        --               --       (70,000)
Issuance of common stock            241        --         4,999          --           --               --         5,240 
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               --          --          --            --         59,588             --        59,588 
                            ------------ ----------- ----------- -------------  ------------  ------------- ------------
Balance December 31, 1995   $ 1,203,486  $1,999,980  $5,330,058  $ 10,285,945   $  (35,919)   $          0  $18,783,550 
                            ============ =========== =========== =============  ============  ============= ============
                                                                                                                        
                                                                                                                        
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 six months                                                     
  ended December 31, 1996          --          --          --         711,421         --               --       711,421 
Dividends paid on common                                                     
  stock                            --          --          --        (197,027)        --               --      (197,027)
Dividends paid on preferred                                                  
  stock                            --          --          --         (69,999)        --               --       (69,999)
Issuance of common stock            567        --         6,379          --           --            13,642       20,588 
Net change in unrealized                                                      
  losses on securities                                                        
  available for sale               --          --          --            --        126,853             --       126,853 
                            ------------ ----------- ----------- -------------  ------------  ------------- ------------
Balance December 31, 1996   $ 1,234,577  $1,999,980  $5,462,231  $ 10,795,426   $ (710,501)   $    (38,635) $18,743,078 
                            ============ =========== =========== =============  ============  ============= ============
</TABLE>

NORTHEAST BANCORP AND SUBSIDIARY
Consolidated Statements of Cash Flow
(Unaudited)

<TABLE>
<CAPTION>

                                                     Six Months Ended          
                                                        December 31,           
                                                   1996              1995      
                                              ---------------   ---------------
<S>                                           <C>               <C>            
Cash provided by operating activities         $   1,628,641     $     759,572  
                                                                               
Cash flows from investing activities:                                          
  FHLB stock purchased                             (777,000)         (150,000) 
  Available for sale securities purchased       (10,958,967)      (19,088,597) 
  Available for sale securities principal                                      
   reductions                                     1,020,478           400,237  
  Available for sale securities sold             10,959,817        16,628,443  
  New loans, net of repayments & charge offs    (19,458,012)         (280,874) 
  Net capital expenditures                         (392,526)         (195,644) 
  Real estate owned sold                            341,067           471,184  
  Real estate held for investment purchased            --             (56,096) 
  Real estate held for investment sold                 --              40,000  
                                              ---------------   ---------------
    Net cash provided by (used in) investing                                   
     activities                                 (19,265,143)       (2,231,347) 
                                                                               
Cash flows from financing activities:                                          
  Net change in deposits                         (2,235,372)        2,215,404  
  Net change in repurchase agreements             1,450,880         1,179,285  
  Dividends paid                                   (267,026)         (161,629) 
  Proceeds from stock issuance                       20,588           745,240  
  Net increase in advances from Federal Home                                   
   Loan Bank of Boston                           16,540,634         5,400,000  
  Net change in notes payable                      (127,193)         (255,443) 
                                              ---------------   ---------------
    Net cash provided by financing activities    15,382,511         9,122,857  
                                              ---------------   ---------------
                                                                               
    Net (decrease) increase in cash and cash                                   
     equivalents                                 (2,253,991)        7,651,082  
                                                                               
Cash and cash equivalents, beginning of period   11,566,128        14,740,070  
                                              ---------------   ---------------
                                                                               
Cash and cash equivalents, end of period      $   9,312,137     $  22,391,152  
                                              ===============   ===============
                                                                               
                                                                               
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 increase (decrease) in valuation for                                       
 unrealized market value adjustments on                                        
 available for sale securities                      126,853            59,588  
Net transfer (to) from Loans to Other Real                                     
 Estate Owned                                       551,264          (158,173) 
                                                                               
Supplemental disclosure of cash paid during                                    
 the period for:                                                               
Income taxes paid, net of refunds                    13,000           433,700  
Interest paid                                     4,866,038         4,566,224  
</TABLE>

NORTHEAST BANCORP AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1996

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 six month
period ended December 31, 1996 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>
                               December 31, 1996            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 $ 1,499,942  $ 1,457,605   $ 1,497,111  $ 1,424,690 
Corporate bonds                149,670      145,172       149,646      139,005 
Mortgage-backed securities  27,649,529   26,719,550    28,810,113   27,646,294 
Equity securities              673,581      573,878       462,167      440,330 
                           ------------ ------------  ------------ ------------
                           $29,972,722  $28,896,205   $30,919,037  $29,650,319 
                           ============ ============  ============ ============
                                                                               
                               December 31, 1996            June 30, 1996      
                           -------------------------  -------------------------
                                           Market                      Market  
                               Cost        Value          Cost         Value   
                           ------------ ------------  ------------ ------------
Due in one year or less    $   249,942  $   249,942   $   247,111  $   246,790 
Due after one year through                                                     
 five years                    250,000      242,350       250,000      237,900 
Due after five years                                                           
 through ten years             149,670      145,172       149,646      139,005 
Due after ten years          1,000,000      965,313     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)          27,649,529   26,719,550    28,810,113   27,646,294 
Equity securities              673,581      573,878       462,167      440,330 
                           ------------ ------------  ------------ ------------
                           $29,972,722  $28,896,205   $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>
                                                          Six Months Ended
                                                            December 31,
                                                         1996          1995
                                                     ------------  ------------
<S>                                                  <C>           <C>         
Balance at beginning of year                         $ 2,549,000   $ 2,396,000 
Add provision charged to operations                      289,257       295,563 
Recoveries on loans previously charged off                31,703        20,776 
                                                     ------------  ------------
                                                       2,869,960     2,712,339 
  Less loans charged off                                 386,960       318,339 
                                                     ------------  ------------
  Balance at end of period                           $ 2,483,000   $ 2,394,000 
                                                     ============  ============
</TABLE>

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

<TABLE>
<CAPTION>

                                    December 31, 1996                          
                      ---------------------------------------------
                        Principal        Interest        Maturity  
                         Amounts           Rates          Dates     
                      --------------  ---------------  ------------
                      <C>             <C>              <C>
                      $ 42,850,000     5.17% - 6.87%       1997      
                        18,717,241     4.97% - 6.39%       1998        
                         2,800,000     5.75% - 5.96%       1999          
                         1,888,226     6.21% - 6.49%       2001           
                         2,408,167     6.36% - 6.67%       2003             
                      --------------                                 
                      $ 68,663,634                                      
                      ==============                             
                                                                             
                                      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
     -----------------------------
On March 31, 1995, FASB issued Statement of Financial Accounting Standards No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed of" ("Statement 121").  Statement 121 provides guidance
for recognition and measurement of impairment of long-lived assets, certain
identifiable intangibles and goodwill related both to assets to be held and
used and assets to be disposed of.  Statement 121 requires entities to perform
separate calculations for assets to be held and used to determine whether
recognition of an impairment loss is required and, if so, to measure the
impairment.  Statement 121 requires long-lived assets and certain identifiable
intangibles to be disposed of to be reported at the lower of carrying amount or
fair value less cost to sell, except for assets covered by the provisions of
APB Opinion No. 31.  Statement 121 is effective for financial statements issued
for fiscal years beginning after December 15, 1995.  The Company adopted 
Statement 121 on July 1, 1996; the effect of adopting the new rules did not 
have a significant effect on the financial condition, liquidity, or results of
operations of the Company.

In May 1995, FASB issued Statement No. 122, Accounting for Mortgage Servicing 
Rights, an amendment of FASB Statement No. 65, ("Statement 122").  Statement 
122 is effective for fiscal years beginning after December 15, 1995.  The 
Company adopted Statement 122 in its first quarter of fiscal year 1997.  
Statement 122 requires that a mortgage banking enterprise recognize as separate
assets the rights to service mortgage loans for others.  Statement 122 also 
requires the assessment of capitalized mortgage servicing rights for impairment
to be based on the current fair value of those rights.  This assessment 
includes servicing rights capitalized prior to adoption of Statement 122.  The 
adoption of Statement 122 was not material to the Company's financial position,
liquidity, or results of operations.

In October 1995, FASB issued Statement No. 123, Accounting for Stock-Based 
Compensation ("Statement 123"), which became effective on July 1, 1996 for the 
Company.  Statement 123 established a fair value based method of accounting for
stock-based compensation plans under which compensation cost is measured at the
grant date based on the value of the award and is recognized over the service
period.  However, the statement allows a company to continue to measure 
compensation cost for such plans under Accounting Principles Board (APB)Opinion
No. 25, Accounting for Stock Issued to Employees.  Under APB Opinion No. 25, no
compensation cost is recorded if, at the grant date, the exercise price of the
options is equal to the fair market value of the Company's common stock.  The 
Company has elected to continue to follow the accounting under APB Opinion No.
25.  Statement 123 requires companies which elect to continue to follow APB
Opinion No. 25 to disclose in the notes to their annual financial statements 
pro forma net income and earnings per share as if the value based method of 
accounting had been applied.

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 assets, 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 $238,459,045 on December 31, 1996, which
represents an increase of $16,169,430 from June 30, 1996.  Total loans
increased by $18,696,063 while loans held for sale decreased by $325,070.  
Federal Home Loan Bank ("FHLB") stock increased by $777,000, while securities 
and cash equivalents decreased by $915,982 and $2,253,991, respectively, during
the same period. Total deposits decreased by $2,235,373, while total repurchase
agreements and FHLB borrowings increased by $1,450,880 and $16,540,634, 
respectively from June 30, 1996 to December 31, 1996.

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 
December 31, 1996.  FHLB stock increased due to the increased levels of FHLB 
advances during the same time period.  The FHLB requires institutions to hold a
certain level of FHLB stock based on advances outstanding.

Total loans increased by $18,696,063 for the six months ended December 31, 
1996, which was a $15,494,855 improvement from September 30, 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.   
By January 31, 1997, the Company had committed to purchasing an additional 
$10,000,000 of 1-4 family adjustable rate mortgages secured by property located
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's response to favorable secondary 
market rates has 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 six months of this fiscal year, the Company will 
experience some margin compression due to decreased loan rates.  Loans held for
sale decreased by $325,070 due to the increased volume of mortgage loans sold 
to Freddie Mac and Fannie Mae.  The increased volume was due to favorable 
secondary market rates during the Company's December 31, 1996 quarter. 

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 69% of the total loan portfolio, in which 49% 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. 

Fifteen percent of the Company's total loan portfolio balance is commercial 
real estate mortgages. Similar to the 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 the real estate.  Commercial real
estate loans have minimal interest rate risk as 89% of the portfolio consists 
of variable rate products. 

Commercial loans make up 9% of the total loan portfolio, in which 83% of its 
balance is 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 to the Company's 
credit policy guidelines established by the Bank's Board of Directors.

Consumer and other loans make up 7% 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 $121,905 from June 30, 1996 to December 
31,1996.  This increase was attributable to foreclosures on loan collateral.

Cash provided by operating activities on the Company's Consolidated Statements 
of Cash Flows increased by $869,069 at December 31, 1996 compared to December 
31, 1995.  The increase was primarily due to the increased cash from the sale 
of trading securities and loans held for sale.

Total deposits were $142,959,996 and securities sold under repurchase 
agreements were $5,213,846 as of December 31, 1996.  These amounts represent a 
decrease of $2,235,373 and an increase of $1,450,880, respectively, compared 
to June 30, 1996.  Brokered deposits represented $4,820,113 of the total 
deposits for the quarter ended December 31, 1996 a decrease of $827,025 
compared to June 30, 1996.  The Company utilizes brokered CD's 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 1996, 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 $68,663,634 as of December 31, 1996, an 
increase of $16,540,634 compared to June 30, 1996.  The cash received from FHLB
advances was utilized for the increase in the loan portfolio, during the 
quarter ended December 31, 1996.  The Company's current advance availability, 
subject to the satisfaction of certain conditions, is approximately $33,200,000
greater than the December 31, 1996 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 future 
budgeted growth.

Total equity of the Company was $18,743,078 as of December 31, 1996 versus 
$18,151,242 at June 30, 1996.  Book value per common share was $13.60 as of 
December 31, 1996 versus $13.13 at June 30, 1996.  Total equity to total assets
of the Company as of December 31, 1996 was 7.86%.

At December 31, 1996, the Banks' regulatory capital was in compliance with 
regulatory capital requirements as follows:

<TABLE>
<CAPTION>
                                                                   Northeast
                                                                 Bank, F.S.B.
                                                                ---------------
<S>                                                             <C>
Capital Requirements:                                                          
Tangible capital                                                $   3,545,000  
 Percent of tangible assets                                              1.50% 
Core capital                                                    $   7,089,000  
 Percent of adjusted tangible assets                                     3.00% 
Leverage capital                                                $   9,452,000  
 Percent of adjusted leverage assets                                     4.00% 
Risk-based capital                                              $  11,644,000  
 Percent of risk-weighted assets                                         8.00% 
                                                                               
Actual:                                                                        
Tangible capital                                                $  16,623,000  
 Percent of adjusted total assets                                        7.03% 
 Excess of requirement                                          $  13,078,000  
Core capital                                                    $  16,623,000  
 Percent of adjusted tangible assets                                     7.03% 
 Excess of requirement                                          $   9,534,000  
Leverage capital                                                $  16,623,000  
 Percent of adjusted leverage assets                                     7.03% 
 Excess of requirement                                          $   7,171,000  
Risk-based capital                                              $  17,836,000  
 Percent of risk-weighted assets                                        12.25% 
 Excess of requirement                                          $   6,192,000  

</TABLE>

The carrying value of securities available for sale by the Company was 
$28,896,205, which is $1,076,517 less than the cost of the underlying 
securities, at December 31, 1996.  The difference from the carrying value and 
the cost of the securities was primarily attributable to the decline in 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 $2,483,000 as of December 31, 1996 
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 $2,221,000 
at December 31, 1996 compared to $2,603,000 at June 30, 1996.  Non-performing 
loans represented .93% and 1.17% of total assets at December 31 and June 30, 
1996, respectively.  The Company's allowance for loan losses was equal to 112% 
and 98% of the total non-performing loans at December 31, 1996 and June 30, 
1996, respectively.  At December 31, 1996, the Company had approximately 
$648,000 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 December 31, 1996, the amount of such loans had 
decreased from the June 30, 1996 amount by $1,893,000.  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 December 31 and June 30, 1996, respectively:           

<TABLE>
<CAPTION>

                             December 31,        June 30,
       Description               1996              1996      
-------------------------   ---------------   ---------------
<S>                         <C>               <C>               
1-4 Family Mortgages        $   1,339,000     $   1,092,000  
Commercial Mortgages              552,000         1,154,000
Commercial Installment            293,000           283,000
Consumer Installment               37,000            74,000
                            ---------------   ---------------
  Total non-performing      $   2,221,000     $   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 decreased its total delinquent accounts during the December
31, 1996 quarter.  The reduction was largely due to collection efforts of the 
30 and 60 day delinquent accounts as well as the transfer of $551,264 
non-performing loans to real estate owned.

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>
3-31-96       6-30-96       9-30-96       12-31-96
 2.82%         2.77%         1.53%          1.24%

</TABLE>

While the level of the allowance for loan losses as a percentage of total loans
at December 31, 1996 decreased from June 30,1996, the level of the allowance 
for loan losses as a percentage of non-performing loans and total delinquencies
as a percentage of total loans improved during the quarter ended December 31,
1996. Loans classified substandard decreased from June 30, 1996 to December 31,
1996.  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.  

The state of 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 December 31, 1996 was $528,160.  Primary 
earnings per share was $.37 and fully diluted earnings per share was $.33 for 
the quarter ended December 31, 1996. This compares to earnings of $443,436 or a
primary earnings per share of $.32 per share and a fully diluted earnings per 
share of $.29, for the quarter ended December 31, 1995.  Net income for the six
months ended December 31, 1996 was $711,421 versus $865,073 for the period 
ended December 31, 1995.  Primary earnings per share was $.48 and fully diluted
earnings per share was $.45 for the six month period ended December 31, 1996 
versus primary earnings per share of $.64 and fully diluted earnings per share 
of $.58 for the period ended December 31, 1995. The 1995 earnings per share has
been restated as a result of the Company's 100% stock dividend in December, 
1995.

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 an ability 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 
credit received from the FDIC increased the Company's Primary earnings per 
share by $.04 and the fully diluted earnings per share by $.03 for the quarter 
ended December 31, 1996.  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 six months ended December 31, 
1996.  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 $2,399,254 for the quarter ended December
31, 1996 versus $2,230,682 for the quarter ended December 31, 1995, for an 
increase of $168,572. This increase was due to an increase of $392,899 in total
interest income offset by an increase in total interest expense of $224,327.

The Company's net interest income was $4,683,206 for the six months ended 
December 31, 1996, versus $4,443,984 for the six months ended December 31, 
1995, an increase of $239,222.  Total interest income increased $626,877 during
the six months ended December 31, 1996 compared to the six months ended 
December 31, 1995, resulting from the following items: (I) Interest income on 
loans and loans held for sale increased by $20,198 for the six months ended 
December 31, 1996 resulting from a $235,890 increase due to an increase in the 
volume of loans, which was offset by a decrease of $215,692 due to decreased 
rates on loans.  (II) Interest income on investment securities increased by 
$791,127 resulting from a $761,753 increase due to an increase in volume as 
well as an increase of $29,374 due to increased rates on investments.  (III)
Interest income on short term liquid funds decreased by $184,448 resulting from
a $151,828 decrease due to a decrease in volume as well as a decrease of 
$32,620 due to decreased rates on FHLB overnight deposits.

The increase in total interest expense of $387,655 for the six months ended 
December 31, 1996 resulted from the following items:  (I) Interest expense on 
deposits decreased by $214,373 for the six months ended December 31, 1996 
resulting from a $76,363 decrease due to a decrease in the volume of deposits 
as well as a decrease of $138,010 due to decreasing deposit rates.  (II) 
Interest expense on repurchase agreements increased by $10,163 due to an 
increase of $19,615 in the volume of repurchase agreements offset by a decrease
of $9,452 due to a decrease in rates.  (III) Interest expense on borrowings 
increased by $591,865 for the six months ended December 31, 1996 resulting from
an increase of $664,691 due to an increase in the volume of borrowings offset 
by a decrease of $72,826 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 six months ended
December 31, 1996 versus December 31, 1995

<TABLE>
<CAPTION>

                                     Difference Due to
                                  Volume       Rate       Total
                                ----------  ----------  ----------
<S>                             <C>         <C>         <C>       
Investments                     $ 761,753   $  29,374   $ 791,127 
Loans                             235,890    (215,692)     20,198  
FHLB & Other Deposits            (151,828)    (32,620)   (184,448)
                                ----------------------------------
  Total                           845,815    (218,938)    626,877 
                                                                   
Deposits                          (76,363)   (138,010)   (214,373)
Repurchase Agreements              19,615      (9,452)     10,163  
Borrowings                        664,691     (72,826)    591,865  
                                ----------------------------------
  Total                           607,943    (220,288)    387,655 
                                ----------------------------------
    Net Interest Income         $ 237,872   $   1,350   $ 239,222  
                                ==================================
</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 21% 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 35% 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 $392,056 and $896,740 for the three and six 
months ended December 31, 1996 versus $550,478 and $1,164,772 for the three and
six months ended December 31, 1995.  Service fee income was $246,741 and 
$513,690 for the three and six months ended December 31, 1996 versus $235,211 
and $516,820 for the three and six months ended December 31, 1995.  The $3,130
service fee decrease for the six months ended December 31, 1996 was primarily 
due to the reduction in loan fee income.  Income from available for sale 
securities gains was $46,117 and $74,417 for the three and six months ended 
December 31, 1996 versus $85,791 and $206,383 for the three and six months 
ended December 31, 1995. Gains from the sale of securities decreased in the six
months ended December 31, 1996 by $131,966 compared to the six months ended 
December 31, 1995.  The Company sold some of its available for sale securities 
during the six month period ended December 31, 1995, taking advantage of the 
fluctuation in market prices in the mortgage-backed security portfolio.  Income
from trading account securities was $(11,241) and $50,124 for the three and six
month periods ended December 31, 1996 versus $7,006  for each of the three and 
six months ended December 31, 1995.  The gain on trading account, in the three 
and six month period ended December 31, 1996, was due to the sale and 
appreciation in the market values of the securities classified as trading.

Other income was $110,439 and $258,509 for the three and six months ended 
December 31, 1996, which was a decrease of $112,031 and a decrease of $176,054 
from other income of $222,470 and $434,563 for the three and six months ended 
December 31, 1995.  The reduction in other income was primarily due to the 
decrease in gains on the sale of loans held for sale, which amounted to $9,326 
and $29,205 for the three and six months ended December 31, 1995 versus $40,342
and $123,158 for the three and six months ended December 31, 1995.  The 
reduction in gains from the sale of loans was due to decreased secondary market
activity.  Other income was also impacted by losses on the sale of other real 
estate owned, which was $22,787 and $24,009 for the three and six months ended 
December 31, 1996.

Total operating expense, or non-interest expense, for the Company was 
$1,819,013 and $4,162,842 for the three and six months ended December 31, 1996 
versus $1,935,671 and $3,951,595 for the three and six months ended December 
31, 1995. The increase in compensation, occupancy and equipment expense for the
three and six months ended December 31, 1996 was due to normal growth and 
maintenance. Other expenses decreased by $73,243 and $120,186 for the three and
six months ended December 31, 1996, compared to December 31, 1995. The decrease
in other expenses was primarily due to the reduction in loan and deposit 
expenses.  As previously discussed above, the Company's operating expenses, for
the six months ended December 31, 1996, increased primarily due to the FDIC-
SAIF deposit insurance assessment of $296,860.  Excluding the deposit 
assessment, the Company's operating expenses were $3,865,982 for the six months
ended December 31, 1996, which was a decrease of $85,613 when compared to the 
six months ended December 31, 1995.

On July 1, 1996 the Company adopted the Financial Accounting Standards Board 
Statement of Financial Accounting Standards No. 122, Accounting for Mortgage 
Servicing Rights, ("Statement 122").  Statement 122 requires that a mortgage 
banking enterprise recognize as separate assets the rights to service mortgage 
loans for others.  Statement 122 also requires the assessment of capitalized 
mortgage servicing rights for impairment to be based on the current fair value 
of those rights. This assessment includes servicing rights capitalized prior to
adoption of Statement 122.  The adoption of Statement 122 was not material to 
the Company's financial position, liquidity, or results of operations.

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 many 
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 SUBSIDIARY
                    Part II - Other Information


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


Item 2.  Changes in Securities
         ---------------------
Not Applicable.

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
         -----------------
Not Applicable.

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 
         December 31, 1996.


                    NORTHEAST BANCORP AND SUBSIDIARY
                                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:  February 11, 1997

                        
                    NORTHEAST BANCORP AND SUBSIDIARY
                            Index to Exhibits
                                    

EXHIBIT NUMBER                            DESCRIPTION                           

      11             Statement regarding computation of per share earnings 
                       
      27             Finanacial Data Schedule