Maine (State or other jurisdiction of incorporation or organization)	01-0425066 (I.R.S. Employer Identification No.)
500 Canal Street, Lewiston, Maine (Address of principal executive offices)	04240 (Zip Code)
Registrant's telephone number, including area code:	(207) 786-3245

Title of each class:	Name of each exchange on which registered:
Common Stock, $1.00 par value	NASDAQ

Document	Form 10-K Reference Location
Proxy Statement for the 2007 Annual Meeting of Shareholders	III

·	employees with local decision-making authority;

·	employees who are familiar with the customers' needs, their business environment and competitive demands; and

·	employees who are able to develop and customize personalized financial solutions that are tailored to the customer's needs.

 

 

 

 

 

 

 

·	allow bank holding companies that qualify as "a financial holding company" to engage in a substantially broader range of activities that are financial in nature;

 

·	allow insurers and other financial service companies to acquire banks;

 

·	remove various restrictions that apply to bank holding company ownership of securities firms and mutual fund advisory companies; and

 

·	establish the overall regulatory structure applicable to bank holding companies that also engage in insurance and securities operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	Total Risk Based Capital Ratio	Tier 1 Risk-Based Capital Ratio	Leverage Ratio	Other
Well Capitalized:	10% or greater	6% or greater	5% or greater	Not subject to any order or written directive to meet and maintain a specific capital level for any capital measure
Adequately Capitalized	8% or greater	4% or greater	4% or greater (3% in the case of a bank with a composite CAMEL rating of 1)
Undercapitalized	less than 8%	less than 4%	less than 4% ((3% in the case of a bank with a composite CAMEL rating of 1)
Significantly Undercapitalized	less than 6%	less than 3%	less than 3%
Critically Undercapitalized				Ratio of tangible equity to total assets is less than or equal to 2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·	the creation of an independent accounting oversight board to oversee the audit of public companies and auditors who perform such audits;

 

·	auditor independence provisions which restrict non-audit services that independent accountants may provide to their audit clients ;

 

·	additional responsibilities regarding financial statements for the chief executive officer and chief financial officer of the reporting entity;

 

·	a prohibition on personal loans to directors and officers, except certain loans made by financial institutions on non-preferential terms and in compliance with other bank regulatory requirements;

 

·	additional corporate governance and responsibility measures which (a) require the chief executive officer and chief financial officer to certify financial statements and to forfeit salary and bonuses in certain situations, and (b) protect whistleblowers and informants;

 

·	enhance independence and expertise requirements of members of audit committees;

 

·	expansion of the audit committee's authority and responsibility by requiring that the audit committee (a) have direct control of the outside auditor, (b) be able to hire and fire the auditor, and (c) approve all non-audit services;

 

·	mandatory disclosure by analysts of potential conflicts of interest; and

 

·	enhanced penalties for fraud and other violations.

 

 

 

 

 

 

 

a)	general economic conditions, either nationally or in the markets where the Company or its subsidiaries offer their financial products or services, may be less favorable than expected, resulting in, among other things, a deterioration of credit quality or in a decreased demand for  our products or services;
b)	A significant increase in competitive pressures in the banking and financial services industry and, more particularly, a significant increase in competition in the Company's market areas as described under "Business -- Market for Services and Competition";
c)	changes in the interest rate environment which could reduce our margins and increase defaults in our loan portfolio, including those described under "Management's Discussion and Analysis of Results of Operations and Financial Condition --Risk Management", and also may have a negative impact on the Company's interest rate exchange agreement;
d)	the adequacy of the allowance for loan losses and the Bank's asset quality, including those matters described in "Management's Discussion and Analysis of Results of Operations and Financial Condition -- Results of Operations".
e)	changes in political conditions or changes occurring in the legislative or regulatory environment that adversely affects the businesses in which we are engaged, including the impact of any changes in laws and regulations relating to banking, securities, taxes, and insurance;
f)	changes in technology;
g)	the ability to increase market share and to control expenses, and changes in consumer spending, borrowing, and saving habits;
h)	changes in trade, tax, monetary, or fiscal policies, including the interest rate policies of the FRB;
i)	money market and monetary fluctuations, and changes in inflation or in the securities markets;
j)	Future acquisitions and the integration of acquired businesses and assets;
k)	changes in the Company's organizational structure and in its compensation and benefit plans, including those necessitated by pressures in the labor market for attracting and retaining qualified personnel;
l)	the effect of changes in accounting policies and practices, as may be adopted by regulatory agencies as well as the Financial Accounting Standards Board;
m)	unanticipated litigation, regulatory, or other judicial proceedings;
n)	the success of the Company at managing the risks involved in the foregoing;
o)	other one-time events, risks and uncertainties detailed from time to time in the filings of the Company with the Securities and Exchange Commission.

 

 

 

 

 

 

 

 

 

 

Branch Locations	Ownership
232 Center Street, Auburn	Lease (1)
235 Western Avenue, Augusta	Fee Simple
11 Main Street, Bethel	Fee Simple
168 Maine Street, Brunswick	Fee Simple
2 Depot Street, Buckfield	Fee Simple
46 Main Street, Harrison	Fee Simple
882 Lisbon Street, Lewiston	Lease (2)
500 Canal Street, Lewiston	Lease  (3)
26 Pleasant Street, Mechanic Falls	Fee Simple
77 Middle Street, Portland	Lease (4)
235 Main Street, South Paris	Fee Simple
Insurance Agency Locations
59 Main Street, Anson	Lease (5)
350 Minot Avenue, Auburn*	Lease (5)
235 Western Avenue, Augusta*	Fee Simple
11 Main Street, Bethel*	Fee Simple
346 Main Street, Jackman	Lease (5)
28 Main Street, Livermore Falls	Lease (7)
89 Main Street, Mexico	Lease (5)
2568 Main Street, Rangeley	Lease (5)
423 U. S. Route 1, Scarborough	Lease (6)
235 Main Street, South Paris*	Fee Simple
10 Snell Hill Road, Turner	Fee Simple
*Each of these insurance agency locations are situated in an existing bank branch location at the address indicated.
(1) Lease term is ten years and expires May 1, 2016.
(2) Lease term is 15 years and expires January 14, 2014.
(3) Lease term is 15 years and expires July 15, 2020.
(4) Lease term is five years and expires September 30, 2012.
(5) Lease term is one year and automatically renews in September each year.
(6) Lease term is three years and expires July 31, 2010.
(7) Lease term is eight months and expires December 31, 2007.

Name	Age	Position with Company and/or Bank
James D. Delamater	56	President and Chief Executive Officer (1)
Philip C. Jackson	63	Senior Vice President of Bank Trust Operations
Pender J. Lazenby	57	Chief Risk Officer
Marcel Blais	48	Chief Operating Officer
Robert S. Johnson	55	Chief Financial Officer (1)
Suzanne Carney	40	Clerk

2006 - 2007	High	Low	Div Pd
Jul 1- Sep 30	21.39	19.18	.090
Oct 1 - Dec 31	19.77	18.20	.090
Jan 1 - Mar 31	20.30	18.34	.090
Apr 1 - Jun 30	18.89	16.60	.090

2005 – 2006	High	Low	Div Pd
Jul 1- Sep 30	22.50	19.85	.090
Oct 1 - Dec 31	24.00	21.66	.090
Jan 1 - Mar 31	24.50	20.80	.090
Apr 1 - Jun 30	22.10	20.76	.090

Unregistered Sales of Equity Securities and Use of Proceeds   The following table provides the information on any purchase made by or on behalf of the Company of shares of Northeast Bancorp common stock during the indicated periods.
Period (1)		Total Number Of Shares Purchased (2)	Average Price Paid per Share	Total Number of  Shares Purchased as Part of Publicly Announced Program	Maximum Number of Shares that May Yet be Purchased Under The Program (3)
Apr. 1 – Apr. 30		-	-	-	200,000
May 1 – May 31		-	-	-	200,000
Jun. 1 – Jun. 30		3,800	17.88	3,800	196,200
(1)	Based on trade date, not settlement date.
(2)	Represents shares purchased in open-market transactions pursuant to the Company's 2006 Stock Repurchase Plan.
(3)	On December 15, 2006, the Company announced that its Board of Directors of the Company approved the 2006 Stock Repurchase Plan pursuant to which the Company is authorized to repurchase in open-market transactions up to 200,000 shares from time to time until the plan expires on December 31, 2007, unless extended.

 

	/s/ Baker Newman & Noyes
Portland, Maine	Baker Newman & Noyes
August 11, 2006	Limited Liability Company