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

December 31, 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 by check mark whether the registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act). Yes__ No X

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of January 31, 2003, the registrant had outstanding 2,645,868 shares of common stock, $1.00 par value per share.

Page 2

Part I.	Financial Information
	Item 1.	Consolidated Financial Statements (Unaudited)
		Consolidated Balance Sheets December 31, 2002 and June 30, 2002
		Consolidated Statements of Income Three Months ended December 31, 2002 and 2001
		Consolidated Statements of Income Six Months ended December 31, 2002 and 2001
		Consolidated Statements of Changes in Shareholders' Equity Six Months Ended December 31, 2002 and 2001
		Consolidated Statements of Cash Flows Six Months ended December 31, 2002 and 2001
		Notes to Consolidated Financial Statements
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation
	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)

	December 31,	June 30,
	2002	2002
	________________	________________
Assets
Cash and due from banks	$ 10,076,902	$ 14,343,009
Interest bearing deposits	628,478	674,083
Federal Home Loan Bank overnight deposits	-	3,732,000
Available for sale securities	20,080,991	32,440,386
Loans held for sale	2,473,472	611,210

Loans	391,736,655	374,634,119
Less allowance for loan losses	3,799,000	3,496,000
	________________	________________
Net loans	387,937,655	371,138,119

Premises and equipment, net	4,217,043	4,150,197
Federal Home Loan Bank stock	6,644,500	6,644,500
Aquired assets - net	538,875	586,642
Goodwill	407,897	407,897
Intangible assets, net of accumulated amortization of $1,487,946 at
12/31/02 and $1,355,010 at 6/30/02	716,782	849,718
Bank Owned Life Insurance	7,096,710	-
Other assets	7,032,706	6,638,156
	________________	________________
Total Assets	$ 447,852,011	$ 442,215,917
	==============	==============

Liabilities and Shareholders' Equity

Liabilities:
Deposits	$ 301,816,591	$ 303,197,646
Securities Sold Under Repurchase Agreements	10,036,056	8,871,642
Advances from the Federal Home Loan Bank	90,284,622	85,956,608
Other Liabilities	2,445,214	2,286,232
	________________	________________
Total Liabilities	404,582,483	400,312,128

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

Shareholders' Equity:
Preferred stock, cumulative, $1.00 par value, 1,000,000 shares authorized
and none issued and outstanding	-	-
Common stock, $1.00 par value, 15,000,000 shares authorized; 2,786,095
shares issued and 2,645,868 and 2,647,712 shares outstanding
at 12/31/02 and 06/30/02, respectively	2,786,095	2,786,095
Additional paid in capital	10,376,842	10,374,285
Retained earnings	24,143,928	22,748,760
Accumulated other comprehensive income	179,455	178,162
	________________	________________
	37,486,320	36,087,302
	________________	________________
Treasury Stock at cost, 140,227 and 138,383 shares at 12/31/02 and
6/30/02, respectively.	(1,389,790)	(1,356,511)
	________________	________________
Total Shareholders' Equity	36,096,530	34,730,791
	________________	________________
Total Liabilities and Shareholder' Equity	$ 447,852,011	$ 442,215,917
	==============	==============

		Page 4

NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)

	Three Months Ended
	December 31,
	2002	2001
	_______________	_______________
Interest and Dividend Income:
Interest on FHLB overnight deposits	$ 1,786	$ 65,459
Interest on Loans & Loans held for sale	6,972,980	7,663,289
Interest on available for sale securities	282,754	315,020
Dividends on Federal Home Loan Bank stock	58,617	75,365
Other Interest Income	1,781	2,694
	_______________	_______________
Total Interest and Dividend Income	7,317,918	8,121,827

Interest Expense:
Deposits	2,096,200	2,874,682
Repurchase agreements	28,141	38,218
Trust preferred securities	176,520	176,520
Other borrowings	1,211,778	1,274,207
	_______________	_______________
Total Interest Expense	3,512,639	4,363,627
	_______________	_______________

Net Interest Income	3,805,279	3,758,200
Provision for loan losses	465,082	210,693
	_______________	_______________
Net interest income after Provision for Loan Losses	3,340,197	3,547,507

Non-interest Income:
Service charges	346,525	363,796
Net securities gains	250,054	35,046
Net gain on trading activities	2,447	-
Net gain on sale of loans	260,183	198,460
Investment/Insurance commissions	410,214	373,821
Boli cash surrender value	103,284	-
Other	73,145	49,789
	_______________	_______________
Total Non-interest Income	1,445,852	1,020,912

Non-interest Expenses:
Salaries and employee benefits	1,918,789	1,667,538
Net occupancy expense	294,070	221,330
Equipment expense	244,183	228,136
Intangible assets amortization	66,468	43,071
Other	922,303	846,186
	_______________	_______________
Total Non-interest Expenses	3,445,813	3,006,261
	_______________	_______________

Income Before Income Taxes	1,340,236	1,562,158
Income tax expense	428,253	543,795
	_______________	_______________
Net Income	$ 911,983	$ 1,018,363
	=============	=============
Earnings Per Common Share
Basic	$ 0.34	$ 0.40
Diluted	$ 0.34	$ 0.39

Net interest margin	3.65%	3.59%
Net interest spread	3.27%	3.08%
Return on average assets (annualized)	0.82%	0.94%
Return on average equity (annualized)	10.10%	12.59%
Efficiency ratio	66%	63%

		Page 5

NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)

	Six Months Ended
	December 31,
	2002	2001
	_______________	_______________
Interest and Dividend Income:
Interest on FHLB overnight deposits	$ 32,150	$ 133,532
Interest on loans & Loans held for sale	13,987,593	15,662,825
Interest on available for sale securities	612,746	636,232
Dividends on Federal Home Loan Bank stock	121,421	169,153
Other Interest Income	4,588	7,095
	______________	______________
Total Interest and Dividend Income	14,758,498	16,608,837

Interest Expense:
Deposits	4,375,330	6,055,731
Repurchase agreements	54,275	99,925
Trust preferred securities	353,041	353,041
Other borrowings	2,421,867	2,717,506
	______________	______________
Total Interest Expense	7,204,513	9,226,203
	______________	______________

Net Interest Income	7,553,985	7,382,634
Provision for loan losses	690,558	421,016
	______________	______________
Net interest income after Provision for Loan Losses	6,863,427	6,961,618

Other Non-interest Income:
Service charges	699,778	737,636
Net securities gains	432,903	46,083
Net gain on trading activities	2,447	-
Net gain on sale of loans	378,734	376,464
Investment/Insurance commissions	707,305	646,887
Boli cash surrender value	103,284	-
Other	155,474	94,047
	______________	______________
Total Other Non-interest Income	2,479,925	1,901,117

Other Non-interest Expenses:
Salaries and employee benefits	3,704,116	3,171,843
Net occupancy expense	563,079	420,026
Equipment expense	452,745	408,598
Intangible asset amortization	132,936	86,142
Other	1,768,822	1,768,069
	______________	______________
Total Other Non-interest Expenses	6,621,698	5,854,678
	______________	______________

Income Before Income Taxes	2,721,654	3,008,057
Income tax expense	902,733	1,047,332
	______________	______________
Net Income	$ 1,818,921	$ 1,960,725
	=============	=============
Earnings Per Common Share
Basic	$ 0.69	$ 0.76
Diluted	$ 0.68	$ 0.75

Net interest margin	3.61%	3.54%
Net interest spread	3.20%	3.00%
Return on average assets (annualized)	0.82%	0.90%
Return on average equity (annualized)	10.17%	12.32%
Efficiency ratio	66%	63%

Page 6
NORTHEAST BANCORP AND SUBSIDIARIES Consolidated Statements of Changes in Shareholders' Equity Six Months Ended December 31, 2002 and 2001 (Unaudited)
	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 six months ended 12/31/01	-	-	1,960,725	-	-	1,960,725
Adjustment of net unrealized loss/gain for Securities available for sale	-	-	-	208,268	-	208,268 ___________
Total Comprehensive income	-	-	-	-	-	2,168,993

Treasury stock purchased	-	-	-	-	(16,981)	(16,981)
Dividends on common stock at $0.125 per share	-	-	(322,104)	-	-	(322,104)
Common stock issued in connection with employee benefit and stock option plans	- ___________	1,818 ___________	- ___________