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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, 2005

Or

___ 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 09, 2005, the registrant had outstanding 2,518,332 shares of common stock, $1.00 stated value per share.

Page 2

Part I.

Financial Information
 

Item 1.

Consolidated Financial Statements (Unaudited)
   

Consolidated Balance Sheets
March 31, 2005 and June 30, 2004
   

Consolidated Statements of Income
Three Months ended March 31, 2005 and 2004
   

Consolidated Statements of Income
Nine Months ended March 31, 2005 and 2004
   

Consolidated Statements of Changes in Stockholders' Equity
Nine Months Ended March 31, 2005 and 2004
   

Consolidated Statements of Cash Flows
Nine Months ended March 31, 2005 and 2004
   

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

 
          Page 3
           
PART 1 - FINANCIAL INFORMATION
           
Item 1. Financial Statements    
           
NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
           
       

March 31, 2005 

 June 30, 2004  
Assets    
Cash and due from banks $   11,595,383   $   13,955,361  
Interest bearing deposits       1,213,902            692,424  
      Total cash and cash equivalents 12,809,285   14,647,785  
           
Available for sale securities, at market value 76,340,571   67,471,144  
Loans held for sale 222,831   545,722  
           
Loans receivable 459,741,168   432,594,348  
  Less allowance for loan losses       4,937,000        4,577,000  
  Net loans 454,804,168   428,017,348  
           
Premises and equipment, net 4,305,719   4,353,208  
Aquired assets - net 118,260   38,583  
Accrued interest receivable - loans 1,934,828   1,725,894  
Accrued interest receivable - investments 468,182   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 $2,094,705 at 03/31/05    
and $1,875,835 at 6/30/04 2,191,523   328,893  
Bank owned life insurance (BOLI) 7,961,984   7,759,944  
Other assets        6,397,705          6,345,707  
  Total assets $ 575,012,953   $ 538,753,900  
     

========

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Liabilities and Stockholders' Equity    
           
Liabilities:    
  Deposits    
    Demand $   37,012,225   $   37,799,644  
    NOW 60,764,971   64,317,533  
    Money market 16,766,409   17,553,102  
    Regular savings 29,738,434   28,804,916  
    Brokered time deposits 88,567,446   96,713,190  
    Certificates of deposit    168,474,909      132,631,344  
      Total deposits 401,324,394   377,819,729  
           
  FHLB advances 86,686,755   82,977,634  
  Other borrowings 353,404   -  
  Securities sold under repurchase agreements 28,850,151   24,884,869  
  Junior subordinated debentures issued to affiliated trusts 16,496,000   13,580,849  
  Other liabilities       2,765,122         3,037,799  
      Total liabilities 536,475,826   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; 2,522,832 and    
    2,525,416 shares outstanding at March 31, 2005 and June 30, 2004, respectively 2,522,832   2,525,416  
  Additional paid in capital 6,610,997   6,943,894  
  Retained earnings 30,534,766   28,380,678  
  Accumulated other comprehensive (loss)     (1,131,468)      (1,396,968) 
    Total stockholders' equity     38,537,127       36,453,020  
           
           
    Total liabilities and stockholders' equity $ 575,012,953   $ 538,753,900  
     

=========

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        Page 4
         
NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
     

Three Months Ended                  
     

March 31,                            
             2005                2004        
Interest and dividend income:    
  Interest on loans $   7,428,522   $   6,338,030  
  Interest on FHLB overnight deposits 20,060   3,115  
  Interest on fed funds sold 4,719   -  
  Interest and dividends on available for sale securities 607,857   618,553  
  Dividends on FHLB and FRB stock 71,617   35,519  
  Other interest income              3,397                  945  
    Total interest and dividend income 8,136,172   6,996,162  
         
Interest expense:    
  Deposits 2,175,502   1,631,390  
  Repurchase agreements 112,369   65,859  
  FHLB advances 967,432   998,696  
  Other borrowings 2,865   -  
  Junior subordinated debentures          249,286            261,918  
    Total interest expense       3,507,454         2,957,863  
         
    Net interest income before provision for loan losses 4,628,718   4,038,299  
         
Provision for loan losses         400,554           240,256  
    Net interest income after provision for loan losses 4,228,164   3,798,043  
         
Noninterest income:    
  Fees and service charges on loans 176,975   129,047  
  Fees for other services to customers 267,063   237,261  
  Net securities gains 40,771   69,055  
  Gain (loss) on trading activities 138   (2,629) 
  Gain on sales of loans 57,887   96,364  
  Investment commissions 318,914   445,314  
  Insurance commissions 544,702   133,333  
  BOLI income 84,013   97,677  
  Other income         120,111            98,960  
    Total noninterest income 1,610,574   1,304,382  
         
Noninterest expense:    
  Salaries and employee benefits 2,486,952   2,161,459  
  Occupancy expense 371,818   319,369  
  Equipment expense 292,612   192,930  
  Intangible assets amortization 97,736   66,468  
  Other         954,630           842,727  
    Total noninterest expense      4,203,748        3,582,953  
         
Income before income taxes 1,634,990   1,519,472  
Income tax expense         520,625           499,124  
         
    Net income $   1,114,365   $   1,020,348  
   

========

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Earnings per common share:    
  Basic $           0.44   $            0.40  
  Diluted $           0.44   $            0.40  
         
    Net interest margin 3.49%   3.43%  
    Net interest spread 3.13%   3.12%  
    Return on average assets (annualized) 0.80%   0.82%  
    Return on average equity (annualized) 11.57%   11.02%  
    Efficiency ratio 67%   67%  
 
        Page 5
         
NORTHEAST BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
     

Nine Months Ended                  
     

March 31,                            
            2005               2004        
Interest and dividend income:    
  Interest on loans $   21,458,879   $   18,831,164  
  Interest on FHLB overnight deposits 40,306   12,969  
  Interest on fed funds sold 4,719   -  
  Interest and dividends on available for sale securities 1,957,962   1,519,722  
  Dividends on FHLB and FRB stock 188,290   132,656  
  Other interest income            6,192              2,873  
    Total interest and dividend income 23,656,348   20,499,384  
         
Interest expense:    
  Deposits 6,251,473   4,807,243  
  Repurchase agreements 293,071   211,413  
  FHLB advances 2,843,365   3,287,724  
  Other borrowings 13,308   -  
  Junior subordinated debentures         831,492           625,683  
    Total interest expense    10,232,709        8,932,063  
         
    Net interest income before provision for loan losses 13,423,639   11,567,321  
         
Provision for loan losses     1,000,675          721,058  
    Net interest income after provision for loan losses 12,422,964   10,846,263  
         
Noninterest income:    
  Fees and service charges on loans 390,439   444,084  
  Fees for other services to customers 759,241   724,295  
  Net securities gains 79,862   187,406  
  (Loss) gain on trading activities (21)  8,875  
  Gain on sales of loans 168,427   628,950  
  Investment commissions 1,153,675   1,223,340  
  Insurance commissions 1,017,980   295,758  
  BOLI income 244,106   286,638  
  Other income         388,655           250,191  
    Total noninterest income 4,202,364   4,049,537  
         
Noninterest expense:    
  Salaries and employee benefits 7,151,413   6,224,788  
  Occupancy expense 1,027,272   921,194  
  Equipment expense 834,711   704,867  
  Intangible assets amortization 218,870   199,404  
  Other     3,259,652       2,666,015  
    Total noninterest expense   12,491,918     10,716,268  
         
Income before income taxes 4,133,410   4,179,532  
Income tax expense    1,298,047      1,352,785  
         
    Net income $   2,835,363   $   2,826,747  
   

========

========
         
Earnings per common share:    
  Basic $           1.13   $           1.11  
  Diluted $           1.11   $           1.08  
         
    Net interest margin 3.38%   3.38%  
    Net interest spread 3.12%   3.10%  
    Return on average assets (annualized) 0.68%   0.78%  
    Return on average equity (annualized) 9.85%   10.21%  
    Efficiency ratio 71%   69%