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, 2004

___ 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 November 12, 2004, the registrant had outstanding 2,509,252 shares of common stock, $1.00 stated value per share.

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Part I.	Financial Information
	Item 1.	Consolidated Financial Statements (Unaudited)
		Consolidated Balance Sheets September 30, 2004 and June 30, 2004
		Consolidated Statements of Income Three Months ended September 30, 2004 and 2003
		Consolidated Statements of Changes in Stockholders' Equity Three Months Ended September 30, 2004 and 2003
		Consolidated Statements of Cash Flows Three Months ended September 30, 2004 and 2003
		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.	Unregistered Sales of Equity Securities and Use of Proceeds
	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

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PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)

				September 30,	June 30,
				2004	2004
Assets
Cash and due from banks				$ 12,699,748	$ 13,955,361
Interest bearing deposits				643,243	692,424
			Total cash and cash equivalents	13,342,991	14,647,785

Available for sale securities, at market value				67,476,640	67,471,144
Loans held for sale				237,350	545,722

Loans receivable				448,586,994	432,594,348
	Less allowance for loan losses			4,752,000	4,577,000
	Net loans			443,834,994	428,017,348

Premises and equipment, net				3,880,995	4,353,208
Aquired assets - net				65,658	38,583
Accrued interest receivable - loans				1,638,694	1,725,894
Accrued interest receivable - investments				438,239	467,275
FHLB and FRB stock, at cost				7,050,000	6,644,500
Goodwill				407,897	407,897
Intangible assets, net of accumulated amortization of $1,899,232 at 09/30/04 and $1,875,835 at 6/30/04				2,365,996	328,893
Bank owned life insurance (BOLI)				7,839,099	7,759,944
Other assets				6,544,717	6,345,707
	Total assets			$ 555,123,270	$ 538,753,900
				=========	=========

Liabilities and Stockholders' Equity

Liabilities:
	Deposits
		Demand		$ 36,816,953	$ 37,799,644
		NOW		73,776,479	64,317,533
		Money market		16,155,934	17,553,102
		Regular savings		29,340,311	28,804,916
		Brokered time deposits		94,948,415	96,713,190
		Certificates of deposit		142,679,104	132,631,344
			Total deposits	393,717,196	377,819,729

	FHLB advances			71,633,978	82,977,634
	Other borrowings			683,104	-
	Securities sold under repurchase agreements			34,204,180	24,884,869
	Junior subordinated debentures issued to affiliated trusts			13,580,849	13,580,849
	Other liabilities			3,215,433	3,037,799
			Total liabilities	517,034,740	502,300,880

Commitments and contingent liabilities

Stockholders' equity
	Preferred stock, cumulative, $1 par value, 1,000,000 shares authorized and none issued and outstanding			-	-
	Common stock, at stated value, 15,000,000 shares authorized; 2,525,102 and 2,525,416 shares outstanding at September 30, 2004 and June 30, 2004, respectively			2,525,102	2,525,416
	Additional paid in capital			6,802,307	6,943,894
	Retained earnings			29,109,462	28,380,678
	Accumulated other comprehensive (loss)			(348,341)	(1,396,968)
		Total stockholders' equity		38,088,530	36,453,020

		Total liabilities and stockholders' equity		$ 555,123,270	$ 538,753,900
				=========	=========


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NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)

			Three Months Ended
			September 30,
			2004	2003
Interest and dividend income:
	Interest on loans		$ 6,830,932	$ 6,205,283
	Interest on FHLB overnight deposits		6,464	6,143
	Interest and dividends on available for sale securities		677,282	367,494
	Dividends on Federal Home Loan Bank stock		52,133	51,081
	Other interest income		1,090	1,028
		Total interest and dividend income	7,567,901	6,631,029

Interest expense:
	Deposits		1,973,528	1,613,636
	Repurchase agreements		79,399	65,988
	FHLB advances		957,474	1,167,169
	Junior subordinated debentures		281,151	176,520
		Total interest expense	3,291,552	3,023,313

		Net interest income before provision for loan losses	4,276,349	3,607,716

Provision for loan losses			300,137	240,000
		Net interest income after provision for loan losses	3,976,212	3,367,716

Noninterest income:
	Fees and service charges on loans		60,550	148,959
	Fees for other services to customers		241,930	241,671
	Net securities gains		1,564	43,495
	(Loss)gain on trading activities		(160)	7,065
	Gain on sales of loans		51,904	431,166
	Investment and insurance commissions		552,169	444,868
	BOLI income		92,997	103,260
	Other income		162,985	77,728
		Total noninterest income	1,163,939	1,498,212

Noninterest expense:
	Salaries and employee benefits		2,278,852	2,002,693
	Occupancy expense		309,776	310,071
	Equipment expense		255,710	258,806
	Intangible assets amortization		23,397	66,468
	Other		886,079	889,853
		Total noninterest expense	3,753,814	3,527,891

Income before income taxes			1,386,337	1,338,037
Income tax expense			430,221	421,656

		Net income	$ 956,116	$ 916,381
			=========	=========

Earnings per common share:
	Basic		$ 0.38	$ 0.36
	Diluted		$ 0.37	$ 0.35

		Net interest margin	3.28%	3.28%
		Net interest spread	3.05%	2.99%
		Return on average assets (annualized)	0.74%	0.78%
		Return on average equity (annualized)	10.74%	9.89%
		Efficiency ratio	69%	69%

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NORTHEAST BANCORP AND SUBIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
Three Months Ended September 30, 2004 and 2003
(Unaudited)

						Accumulated
				Additional		Other
			Common	Paid-in	Retained	Comprehensive	Treasury
			Stock	Capital	Earnings	Income (Loss)	Stock	Total
Balance at June 30, 2003			$ 2,786,095	$ 10,381,692	$ 25,756,832	$ 91,169	$ (2,516,340)	$ 36,499,448
	Net income for three months ended 9/30/03		-	-	916,381	-	-	916,381
	Other comprehensive income net of tax:
		Net unrealized losses on investments available for sale, net of reclassification adjustment	-	-	-	(283,682)	-	(283,682)
		Total comprehensive income	-	-	-	-	-	632,699
	Dividends on common stock at $0.08 per share		-	-	(211,746)	-	-	(211,746)
		Common stock issued in connection with employee benefit and stock option plan	-	21,890	-	-	66,232	88,122
Balance at September 30, 2003			2,786,095	10,403,582	26,461,467	(192,513)	(2,450,108)	37,008,523
			======	=======	=======	=======	=======	=======
Balance at June 30, 2004			$ 2,525,416	$ 6,943,894	$ 28,380,678	$ (1,396,968)	$ -	$ 36,453,020
	Net income for three months ended 9/30/04		-	-	956,116	-	-	956,116
	Other comprehensive income net of tax:
		Net unrealized losses on investments available for sale, net of reclassification adjustment	-	-	-	1,048,627	-	1,048,627
		Total comprehensive income	-	-	-	-	-	2,004,743
	Dividends on common stock at $0.09 per share		-	-	(227,332)	-	-	(227,332)
	Purchase of 10,000 shares of Company stock		(10,000)	(180,000)	-	-	-	(190,000)
		Common stock issued in connection with employee benefit and stock option plan	9,686	38,413	-	-	-	48,099
Balance at September 30, 2004			2,525,102	6,802,307	29,109,462	(348,341)	-	38,088,530
			=======	=======	=======	=======	=======	=======


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

	Three Months Ended
	September 30,
	2004	2003
Cash provided by operating activities:	$ 1,465,299	$ 4,368,337

Cash flows from investing activities:
Federal Reserve stock purchased	(405,500)	-
Available for sale securities purchased	(659,555)	(11,148,682)
Available for sale securities matured	2,128,164	1,982,661
Available for sale securities sold	75,477	6,413,944
Net change in loans