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

FORM 10 Q

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

For the quarter ended

March 31, 2003

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

For the transition period for _______________ to _______________

Commission File Number

1-14588

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

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

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

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

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

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

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

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Part I.	Financial Information
	Item 1.	Consolidated Financial Statements (Unaudited)
		Consolidated Balance Sheets March 31, 2003 and June 30, 2002
		Consolidated Statements of Income Three Months ended March 31, 2003 and 2002
		Consolidated Statements of Income Nine Months ended March 31, 2003 and 2002
		Consolidated Statements of Changes in Shareholders' Equity Nine Months Ended March 31, 2003 and 2002
		Consolidated Statements of Cash Flows Nine Months ended March 31, 2003 and 2002
		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)

	March 31,	June 30,
	2003	2002
	____________________	____________________
Assets
Cash and due from banks	$ 12,983,159	$ 14,343,009
Interest bearing deposits	754,336	674,083
Federal Home Loan Bank overnight deposits	17,100,000	3,732,000
Available for sale securities	30,520,526	32,440,386
Loans held for sale	1,918,529	611,210

Loans	383,999,661	374,634,119
Less allowance for loan losses	3,905,000	3,496,000
	____________________	____________________
Net loans	380,094,661	371,138,119

Premises and equipment, net	4,178,144	4,150,197
Federal Home Loan Bank stock	6,644,500	6,644,500
Aquired assets - net	248,280	586,642
Goodwill	407,897	407,897
Intangible assets, net of accumulated amortization of $1,554,414 at 03/31/03
and $1,355,010 at 6/30/02	650,314	849,718
Bank Owned Life Insurance	7,334,547	-
Other assets	6,879,853	6,638,156
	____________________	____________________
Total Assets	$ 469,714,746	$ 442,215,917
	==================	==================

Liabilities and Shareholders' Equity

Liabilities:
Deposits	$ 330,477,495	$ 303,197,646
Securities Sold Under Repurchase Agreements	6,621,494	8,871,642
Advances from the Federal Home Loan Bank	86,204,454	85,956,608
Other Liabilities	2,495,164	2,286,232
	____________________	____________________
Total Liabilities	425,798,607	400,312,128

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

Shareholders' Equity:
Preferred stock, cumulative, $1.00 par value, 1,000,000 shares authorized
and none issued and outstanding	-	-
Common stock, $1.00 par value, 15,000,000 shares authorized; 2,786,095
shares issued and 2,645,827 and 2,647,712 shares outstanding
at 03/31/03 and 06/30/02, respectively	2,786,095	2,786,095
Additional paid in capital	10,376,842	10,374,285
Retained earnings	25,008,207	22,748,760
Accumulated other comprehensive income (loss)	(38,213)	178,162
	____________________	____________________
	38,132,931	36,087,302
Treasury Stock at cost, 140,268 and 138,383 shares at 03/31/03 and
6/30/02, respectively.	(1,389,790)	(1,356,511)
	____________________	____________________
Total Shareholders' Equity	36,743,141	34,730,791
	____________________	____________________
Total Liabilities and Shareholders' Equity	$ 469,714,746	$ 442,215,917
	==================	==================

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NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)

	Three Months Ended
	March 31,
	2003	2002
	___________________	___________________
Interest and Dividend Income:
Interest on FHLB overnight deposits	$ 13,111	$ 40,658
Interest on Loans & Loans held for sale	6,651,462	6,986,374
Interest on available for sale securities	255,541	401,851
Dividends on Federal Home Loan Bank stock	53,247	61,439
Other Interest Income	2,045	2,696
	___________________	___________________
Total Interest and Dividend Income	6,975,406	7,493,018

Interest Expense:
Deposits	1,960,417	2,538,863
Repurchase agreements	16,881	21,141
Trust preferred securities	176,520	176,520
Other borrowings	1,182,718	1,198,453
	___________________	___________________
Total Interest Expense	3,336,536	3,934,977
	___________________	___________________

Net Interest Income	3,638,870	3,558,041
Provision for loan losses	225,042	210,670
	___________________	___________________
Net interest income after Provision for Loan Losses	3,413,828	3,347,371

Other Income:
Service charges	378,818	365,917
Net securities gains	404,609	360,219
Net loss on trading activities	(3,118)	-
Net gain on sale of loans	232,055	146,920
Investment/Insurance commissions	311,918	299,801
Boli cash surrender value	103,236	-
Other	96,433	77,598
	___________________	___________________
Total Other Income	1,523,951	1,250,455

Other Expenses:
Salaries and employee benefits	1,876,701	1,721,747
Net occupancy expense	322,346	255,162
Equipment expense	222,270	229,153
Intangible assets amortization	66,468	58,669
Other	855,640	857,834
	___________________	___________________
Total Other Expenses	3,343,425	3,122,565
	___________________	___________________

Income Before Income Taxes	1,594,354	1,475,261
Income tax expense	518,328	511,564
	___________________	___________________
Net Income	$ 1,076,026	$ 963,697
	=================	=================
Earnings Per Common Share
Basic	$ 0.41	$ 0.37
Diluted	$ 0.40	$ 0.36

Net interest margin	3.43%	3.39%
Net interest spread	3.08%	2.96%
Return on average assets (annualized)	0.90%	0.89%
Return on average equity (annualized)	11.70%	11.72%
Efficiency ratio	65%	65%

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NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)

	Nine Months Ended
	March 31,
	2003	2002
	___________________	___________________
Interest and Dividend Income:
Interest on FHLB overnight deposits	$ 45,261	$ 174,191
Interest on loans & Loans held for sale	20,639,055	22,649,198
Interest on available for sale securities	868,287	1,038,083
Dividends on Federal Home Loan Bank stock	174,668	230,591
Other Interest Income	6,633	9,792
	___________________	___________________
Total Interest and Dividend Income	21,733,904	24,101,855

Interest Expense:
Deposits	6,335,747	8,594,593
Repurchase agreements	71,156	121,067
Trust preferred securities	529,561	529,561
Other borrowings	3,604,586	3,915,959
	___________________	___________________
Total Interest Expense	10,541,050	13,161,180
	___________________	___________________

Net Interest Income	11,192,854	10,940,675
Provision for loan losses	915,599	631,686
	___________________	___________________
Net interest income after Provision for Loan Losses	10,277,255	10,308,989

Other Income:
Service charges	1,078,597	1,103,553
Net securities gains	837,512	406,301
Net loss on trading activities	(671)	-
Net gain on sale of loans	610,788	523,383
Investment/Insurance commissions	1,007,905	946,688
Boli cash surrender value	206,520	-
Other	251,907	171,646
	___________________	___________________
Total Other Income	3,992,558	3,151,571

Other Expenses:
Salaries and employee benefits	5,569,500	4,893,590
Net occupancy expense	885,425	675,188
Equipment expense	675,014	637,752
Intangible assets amortization	199,404	144,811
Other	2,624,462	2,625,901
	___________________	___________________
Total Other Expenses	9,953,805	8,977,242
	___________________	___________________

Income Before Income Taxes	4,316,008	4,483,318
Income tax expense	1,421,061	1,558,896
	___________________	___________________
Net Income	$ 2,894,947	$ 2,924,422
	=================	=================
Earnings Per Common Share
Basic	$ 1.09	$ 1.13
Diluted	$ 1.08	$ 1.10

Net interest margin	3.55%	3.49%
Net interest spread	3.16%	2.98%
Return on average assets (annualized)	0.87%	0.90%
Return on average equity (annualized)	10.69%	12.07%
Efficiency ratio	66%	64%

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NORTHEAST BANCORP AND SUBSIDIARIES Consolidated Statements of Changes in Shareholders' Equity Nine Months Ended March 31, 2003 and 2002 (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 nine months ended 3/31/02	-	-	2,924,422	-	-	2,924,422
Adjustment of net unrealized loss/gain on securities available for sale	-	-	-	(22,156)	-	(22,156) ____________
Total Comprehensive income	-	-	-	-	-	2,902,266

Treasury stock purchased	-	-	-	-	(16,981)	(16,981)
Dividends on common stock at $0.1875 per share	-	-	(483,248)	-	-	(483,248)
Treasury stock issued in connection with the acquisition of Kendall Insurance Company	-	114,544	-	-	170,235	284,779
Common stock issued in connection with employee benefit and stock option plans	- ____________	(7,326) ____________	- ____________	- ____________	465,532 ____________	458,206 ____________
Balance at March 31, 2002	$ 2,786,095 ==========	$ 10,374,285 ==========	$ 21,986,045 ==========	$ (199,875) ==========	$ (1,356,511) ==========	$ 33,590,039 ==========

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 nine months ended 3/31/03	-	-	2,894,947	-	-	2,894,947
Adjustment of net unrealized loss/gain on securities available for sale	-	-	-	(216,375)	-	(216,375) ____________
Total Comprehensive income	-	-	-	-	-	2,678,572

Dividends on common stock at $0.24 per share	-	-	(635,500)	-