Page 1

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

FORM 10 Q

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

For the quarter ended

September 30, 2002

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

For the transition period for _______________ to _______________

Commission File Number

1-14588

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

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

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

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

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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of November 08, 2002, the registrant had outstanding 2,647,466 shares of common stock, $1.00 par value per share.

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Part I.	Financial Information
	Item 1.	Financial Statements (Unaudited)
		Consolidated Balance Sheets September 30, 2002 and June 30, 2002
		Consolidated Statements of Income Three Months ended September 30, 2002 and 2001
		Consolidated Statements of Changes in Shareholders' Equity Three Months Ended September 30, 2002 and 2001
		Consolidated Statements of Cash Flows Three Months ended September 30, 2002 and 2001
		Notes to Consolidated Financial Statements
	Item 2.	Management's Discussion and Analysis of Results of Operations and Financial Condition
	Item 3.	Quantitative and Qualitative Disclosure about Market Risk
	Item 4.	Controls and Procedures
Part II.	Other Information
	Item 1.	Legal Proceedings
	Item 2.	Changes in Securities
	Item 3.	Defaults Upon Senior Securities
	Item 4.	Submission of Matters to a Vote of Security Holders
	Item 5.	Other Information
	Item 6.	Exhibits and Reports on Form 8-K

		Page 3

PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)

	September 30,	June 30,
	2002	2002
	________________	________________
Assets
Cash and due from banks	$ 9,563,120	$ 14,343,009
Interest bearing deposits	620,136	674,083
Federal Home Loan Bank overnight deposits	15,946,000	3,732,000
Available for sale securities	19,541,947	32,440,386
Loans held for sale	1,382,650	611,210

Loans	384,327,484	374,634,119
Less allowance for loan losses	3,650,000	3,496,000
	_______________	_______________
Net loans	380,677,484	371,138,119

Premises and equipment, net	4,099,552	4,150,197
Federal Home Loan Bank stock	6,644,500	6,644,500
Aquired assets - net	444,061	586,642
Goodwill	407,897	407,897
Intangible assets, net of accumulated amortization of $1,421,479 at
09/30/02 and $1,355,010 at 6/30/02	783,250	849,718
Other assets	15,872,856	6,638,156
	_______________	_______________
Total Assets	$ 455,983,453	$ 442,215,917
	===============	===============

Liabilities and Shareholders' Equity

Liabilities:
Deposits	$ 314,848,335	$ 303,197,646
Securities Sold Under Repurchase Agreements	10,376,032	8,871,642
Advances from the Federal Home Loan Bank	85,205,572	85,956,608
Other Liabilities	2,807,617	2,286,232
	_______________	_______________
Total Liabilities	413,237,556	400,312,128

Guaranteed Preferred Beneficial Interest in the
Company's Junior Subordinated Debentures	7,172,998	7,172,998

Shareholders' Equity:
Preferred stock, cumulative, $1.00 par value, 1,000,000 shares authorized
and none issued and outstanding	-	-
Common stock, $1.00 par value, 15,000,000 shares authorized; 2,786,095
shares issued and 2,649,212 and 2,647,712 shares outstanding
at 09/30/02 and 06/30/02, respectively	2,786,095	2,786,095
Additional paid in capital	10,376,842	10,374,285
Retained earnings	23,443,882	22,748,760
Accumulated other comprehensive income	310,148	178,162
	_______________	_______________
	36,916,967	36,087,302
	_______________	_______________
Treasury Stock at cost, 136,883 and 138,383 shares at 09/30/02 and
6/30/02, respectively.	(1,344,068)	(1,356,511)
	_______________	_______________
Total Shareholders' Equity	35,572,899	34,730,791
	_______________	_______________
Total Liabilities and Shareholder' Equity	$ 455,983,453	$ 442,215,917
	===============	===============

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NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)

	Three Months Ended
	September 30,
	2002	2001
	___________________	___________________
Interest and Dividend Income:
Interest on FHLB overnight deposits	$ 30,364	$ 68,073
Interest on Loans & Loans held for sale	7,014,612	7,999,536
Interest on available for sale securities	329,993	321,212
Dividends on Federal Home Loan Bank stock	62,804	93,787
Other Interest Income	2,807	4,402
	_________________	_________________
Total Interest and Dividend Income	7,440,580	8,487,010

Interest Expense:
Deposits	2,279,131	3,181,049
Repurchase agreements	26,134	61,708
Trust preferred securities	176,520	176,520
Other borrowings	1,210,089	1,443,299
	_________________	_________________
Total Interest Expense	3,691,874	4,862,576
	_________________	_________________

Net Interest Income	3,748,706	3,624,434
Provision for loan losses	225,476	210,323
	_________________	_________________
Net interest income after Provision for Loan Losses	3,523,230	3,414,111

Other Income:
Service charges	353,252	373,840
Net securities gains	182,850	11,036
Net gain on sale of loans	118,551	178,003
Investment/Insurance commissions	297,090	273,066
Other	82,330	44,125
	_________________	_________________
Total Other Income	1,034,073	880,070

Other Expenses:
Salaries and employee benefits	1,785,327	1,504,306
Net occupancy expense	269,008	198,696
Equipment expense	212,062	180,462
Intangible assets amortization	66,468	43,071
Other	843,019	921,748
	_________________	_________________
Total Other Expenses	3,175,884	2,848,283
	_________________	_________________

Income Before Income Taxes	1,381,419	1,445,898
Income tax expense	474,480	503,537
	_________________	_________________
Net Income	$ 906,939	$ 942,361
	=================	=================
Earnings Per Common Share
Basic	$ .34	$ 0.37
Diluted	$ .34	$ 0.36

Net interest margin	3.57%	3.49%
Net interest spread	3.12%	2.91%
Return on average assets (annualized)	0.83%	0.87%
Return on average equity (annualized)	10.23%	12.04%
Efficiency ratio	66%	63%

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NOTHEAST BANCORP AND SUBSIDIARIES Consolidated Statements of Changes in Shareholders' Equity Three Months Ended September 30, 2002 and 2001
	Common Stock at $1.00 Par ____________	Additional Paid in Capital ____________	Retained Earnings ____________	Accumulated Other Comprehensive Income (Loss) ____________	Treasury Stock ____________	Total ____________
Balance at June 30, 2001	$ 2,786,095	$ 10,267,067	$ 19,544,871	$ (177,719)	$ (1,975,297)	$ 30,445,017
Net income for the three months ended 9/30/01	-	-	942,361	-	-	942,361
Adjustment of net unrealized loss/gain for Securities available for sale	-	-	-	320,762	-	320,762 ____________
Total Comprehensive income	-	-	-	-	-	1,263,123

Treasury stock purchased	-	-	-	-	-	-
Dividends on common stock at $0.06 per share	-	-	(160,903)	-	-	(160,903)
Common stock issued in connection with employee benefit and stock option plans	- ____________	1,781 ____________	- ____________	- ____________	50,000 ____________	51,781 ____________
Balance at September 30, 2001	$ 2,786,095 ==========	$ 10,268,848 ==========	$ 20,326,329 ==========	$ 143,043 ==========	$ (1,925,297) ==========	$ 31,599,018 ==========

Balance at June 30, 2002	$ 2,786,095	$ 10,374,285	$ 22,748,760	$ 178,162	$ (1,356,511)	$ 34,730,791
Net income for the three months ended 9/30/02	-	-	906,939	-	-	906,939
Adjustment of net unrealized loss/gain for Securities available for sale	-	-	-	131,986	-	131,986 ____________
Total Comprehensive income	-	-	-	-	-	1,038,925

Dividends on common stock at $0.08 per share	-	-	(211,817)	-	-	(211,817)

Common stock issued in connection with employee benefit and stock option plans	- ____________	2,557 ____________	- ____________	- ____________	12,443 ____________	15,000 ____________
Balance at September 30, 2002	$ 2,786,095	$ 10,376,842	$ 23,443,882	$ 310,148	$ (1,344,068)	$ 35,572,899
	==========	==========	==========	===========	==========	==========

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NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)

	Three Months Ended
	September 30,
	2002	2001
	___________________	___________________
Cash provided by operating activities	$ 777,206	$ 1,119,298

Cash flows from investing activities:
Available for sale securities purchased	(152,089)	(436,747)
Available for sale securities matured	1,125,807	1,623,007
Available for sale securities sold	10,198,300	22,287
Net change in loans	(9,936,624)	3,161,400
Net capital expenditures	(86,173)	(11,592)
Proceeds from sale of acquired assets	390,510	275,024
Real estate held for investment sold	-	45,893
Bank ownd life insurance purchased	(7,143,999)	-
	________________	________________
Net cash (used) provided by investing activities	(5,604,268)	4,679,272

Cash flows from financing activities:
Net change in deposits	11,650,689	13,758,791
Net change in repurchase agreements	1,504,390	1,184,740
Dividends paid	(211,817)	(160,903)
Proceeds from stock issuance	15,000	51,781
Net decrease in advances from Federal Home Loan Bank of Boston	(751,036)	(18,832,400)
	________________	________________
Net cash provided (used in) in financing activities	12,207,226	(3,997,991)
	________________	________________

Net increase in cash and cash equivalents	7,380,164	1,800,579

Cash and cash equivalents, beginning of period	18,749,092	14,188,265
	________________	________________
Cash and cash equivalents, end of period	$ 26,129,256	$ 15,988,844
	================	================

Cash and cash equivalents include cash on hand, amounts due
from banks and interest bearing deposits.

Supplemental schedule of noncash activities:
Net change in valuation for unrealized gains, net of tax, on
available for sale securities	131,986	320,762
Net transfer from loans to acquired assets	253,929	214,780

Supplemental disclosure of cash paid during the period for:
Income taxes paid, net of refunds	-	-
Interest paid	3,682,709	4,905,242

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NORTHEAST BANCORP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
September 30, 2002

1. Basis of Presentation

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

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

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

3. Loans

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

	September 30, 2002	June 30, 2002
Residential real estate	160,130,838	$ 159,566,886
Commercial real estate	81,283,681	80,423,303
Construction	9,365,193	8,958,052
Commercial	53,675,103	48,535,162
Consumer & Other	76,979,043 ______________	74,267,760 ______________
Total	381,433,858	371,751,163
Net Deferred Costs	2,893,626 ______________	2,882,956 ______________
Net Loans	$ 384,327,484 ============	$ 374,634,119 ============

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4. Allowance for Loan Losses

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

	Three Months Ended September 30,
	2002 _______________	2001 _______________
Balance at beginning of year	$ 3,496,000	$ 3,778,000
Add provision charged to operations	225,476	210,323
Recoveries on loans previously charge off	114,833 _______________	48,691 _______________
	3,836,309	4,037,014
Less loans charged off	186,309 _______________	219,014 _______________
Balance at end of period	$ 3,650,000 =============	$ 3,818,000 =============

5. Securities

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

	September 30, 2002 _________________________		June 30, 2002 _________________________
	Cost ___________	Market Value ___________	Cost ___________	Market Value ___________
Debt securities issued by the U.S. treasury and other U.S. Government corporations and agencies	$ --	$ --	$ 12,088,598	$ 12,176,875
Corporate bonds	149,951	149,274	149,938	154,125
Mortgage-backed securities	17,322,669	18,140,559	18,448,558	18,912,078
Equity securities	1,599,405 ___________	1,252,114 ___________	1,483,350 ___________	1,197,308 ___________
	$ 19,072,025 ===========	$ 19,541,947 ==========	$ 32,170,444 ==========	$ 32,440,386 ==========

	Cost ___________	Market Value ___________	Cost ___________	Market Value ___________
Due in one year or less	$ --	$ --	$ 5,082,410	$ 5,113,281
Due after one year through five years	149,951	149,274	7,156,126	7,217,719
Mortgage-backed securities (including securities with interest rates ranging from 5.5% to 9.0% maturing September 2003 to November 2029)	17,322,669	18,140,559	18,448,558	18,912,078
Equity securities	1,599,405 ___________	1,252,114 ___________	1,483,350 ___________	1,197,308 ___________
	$ 19,072,025 ==========	$ 19,541,947 ==========	$ 32,170,444 ==========	$ 32,440,386 ==========

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6. Deposits.

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

	September 30, 2002	June 30, 2002
Demand	$ 30,076,783	$ 28,252,757
NOW	80,196,054	62,468,856
Money Market	15,769,633	15,879,962
Regular Savings	22,296,420	23,021,132
Brokered Deposits	20,843,316	24,463,179
Certificates of Deposit	145,666,129 _____________	149,111,760 _____________
Total Deposits	$ 314,848,335 ============	$ 303,197,646 ============

7. Advances from the Federal Home Loan Bank

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

September 30, 2002 ________________________________________________________________________
Principal Amounts ___________________	Interest Rates ____________________	Maturity Dates For Periods Ending September 30, _____________________
$ 6,463,976	4.34% - 6.67%	2003
28,900,155	3.98% - 6.07%	2004
30,841,441	3.11% - 6.79%	2005
1,000,000	5.55%	2006
3,000,000	3.56%	2007
8,000,000	5.59% - 5.68%	2008
7,000,000 ___________________	4.50% - 4.99%	2011
$ 85,205,572 =================

June 30, 2002 _______________________________________________________________________
Principal Amounts ___________________	Interest Rates ____________________	Maturity Dates For Fiscal Years Ending June 30, _____________________
$ 9,478,495	1.84% - 6.64%	2003
17,478,113	4.78% - 6.67%	2004
17,000,000	3.11% - 6.65%	2005
27,000,000	5.52% - 6.79%	2006
8,000,000	5.59% - 5.68%	2008