AUBURN – Northeast Bancorp (AMEX “NBN”) announced that earnings for the second quarter ended Dec. 31, 2003 were $890,019 or $0.34 per diluted share, as compared to earnings of $911,983 or $0.34 per diluted share for the same period last year.

For the six month periods ended Dec. 31, 2003 and 2002, earnings were $1,806.399, or $0.69 per diluted share, and $1,818,921, or $0.69 per diluted share, respectively.

Northeast announced that its board declared a dividend of $0.09 per share, payable Feb. 20, to shareholders of record as of the close of business on Jan. 30.

Northeast Bancorp, which recently announced a 12.5 percent annual increase in its dividend, has paid a dividend in every quarter since its inception as a public company in October 1987.

Jim Delamater, president and CEO, said, “earnings are in line with our expectations, and we remain intent upon maintaining an asset sensitive interest rate risk position that is more favorable to rising interest rates and our ongoing dedication to historic credit standards.

We also anticipate that our business plan and our diversity of income sources will result in solid earnings performance in the future, while preserving the overall integrity of our balance sheet and franchise value.”

The bank continues to maintain its “well capitalized” status and has recently expressed its goal to maintain sufficient capital to support a fair dividend return, the repurchase of shares from time to time, and the overall growth of the franchise. Northeast derives its income from a combination of traditional banking services, including loans and deposits and other financial products/services, including trust, investment, and insurance services.