View Filing Data

Gain on sale of discontinued operations

$ 1,566

Interest and dividends on available-for-sale securities

Interest and dividend income:

Interest on loans

^[1]

$ 11,544

24,734

^[1]

1,642

2,019

Dividends on regulatory stock

^[1]

Other interest and dividend income

^[1]

189

Federal Home Loan Bank advances

^[1]

13,304

27,014

Interest expense:

Deposits

^[1]

1,665

3,426

^[1]

535

1,028

Structured repurchase agreements

^[1]

512

991

Short-term borrowings

^[1]

Junior subordinated debentures issued to affiliated trusts

^[1]

365

751

Obligation under capital lease agreements

^[1]

100

Net interest and dividend income before provision for loan losses

^[1]

3,207

6,317

^[1]

10,097

20,697

Net interest and dividend income after provision for loan losses

^[1]

707

946

^[1]

9,390

19,751

Fees for other services to customers

^[1]

670

1,383

Net securities gains

^[1]

1,200

1,111

Investment commissions

^[1]

1,435

2,782

^[1]

258

501

^[1]

15,441

Other noninterest income

^[1]

348

^[1]

20,182

9,701

^[1]

7,681

15,634

^[1]

1,627

3,826

^[1]

819

1,708

Intangible asset amortization

^[1]

543

1,088

Marketing expense

^[1]

510

691

FDIC insurance premiums

^[1]

269

482

^[1]

663

1,198

Merger expense

^[1]

3,189

Other noninterest expense

^[1]

1,847

3,628

Income from continuing operations before income tax expense (benefit)

^[1]

17,148

28,255

^[1]

12,424

1,197

Income tax expense (benefit)

^[1]

(83)

181

Income before equity in undistributed net income of subsidiary

^[1]

12,507

1,016

Gain on sale of discontinued operations

^[1]

186

^[1]

1,566

^[1]

605

^[1]

1,147

^[1]

12,552

2,163

Weighted-average shares outstanding:

^[1]

$ 12,355

$ 1,771

Basic

^[1]

3,492,933

4,277,777

Diluted

^[1]

3,548,164

4,291,352

Basic:

^[1]

$ 3.51

$ 0.15

^[1]

0.01

0.26

^[1]

3.52

0.41

Diluted:

^[1]

3.46

0.15

^[1]

0.01

0.26

Successor | Loans Held For Sale

^[1]

$ 3.47

$ 0.41

Successor | Portfolio Loan

^[1]

$ 945

$ 2,761

^[1]

$ (115)

$ 1,071

Interest and dividends on available-for-sale securities

Interest and dividend income:

Interest on loans

^[2]

$ 11,210

^[2]

3,111

Dividends on regulatory stock

^[2]

Other interest and dividend income

^[2]

Federal Home Loan Bank advances

^[2]

14,378

Interest expense:

Deposits

^[2]

2,796

^[2]

918

Structured repurchase agreements

^[2]

1,392

Short-term borrowings

^[2]

376

Junior subordinated debentures issued to affiliated trusts

^[2]

340

Obligation under capital lease agreements

^[2]

Net interest and dividend income before provision for loan losses

^[2]

5,877

^[2]

8,501

Net interest and dividend income after provision for loan losses

^[2]

912

^[2]

7,589

Fees for other services to customers

^[2]

698

Net securities gains

^[2]

Investment commissions

^[2]

1,174

^[2]

250

^[2]

Other noninterest income

^[2]

225

^[2]

4,231

^[2]

4,949

^[2]

1,352

^[2]

509

Intangible asset amortization

^[2]

521

Marketing expense

^[2]

230

FDIC insurance premiums

^[2]

346

^[2]

Merger expense

^[2]

Other noninterest expense

^[2]

1,454

Income from continuing operations before income tax expense (benefit)

^[2]

9,455

^[2]

2,365

Income tax expense (benefit)

^[2]

698

Income before equity in undistributed net income of subsidiary

^[2]

1,667

Gain on sale of discontinued operations

^[2]

^[2]

105

^[2]

^[2]

129

^[2],[3]

1,796

Weighted-average shares outstanding:

^[2]

$ 1,677

Basic

^[2]

2,330,197

Diluted

^[2]

2,354,385

Basic:

^[2]

$ 0.66

^[2]

0.06

^[2]

0.72

Diluted:

^[2]

0.66

^[2]

0.05

Predecessor | Loans Held For Sale

^[2]

$ 0.71

Predecessor | Portfolio Loan

^[2]

$ 1,867

^[2]

$ 0

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[3]	Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Other comprehensive income, net of tax:

^[1]

$ 12,552

$ 2,163

Unrealized gain (loss) on available-for-sale securities, net

^[1]

(106)

518

Unrealized loss on purchased interest rate caps and swap, net

^[1]

(120)

(134)

Comprehensive income (loss)

^[1]

(226)

384

^[1]

$ 12,326

$ 2,547

Other comprehensive income, net of tax:

^[2],[3]

$ 1,796

Unrealized gain (loss) on available-for-sale securities, net

^[3]

(1,863)

Unrealized loss on purchased interest rate caps and swap, net

^[3]

(10)

Comprehensive income (loss)

^[2],[3]

(1,873)

^[3]

$ (77)

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[3]	Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Beginning balance,shares (Predecessor) at Jun. 30, 2010

Consolidated Statements of Changes in Stockholders Equity - USD ($)

Total

Preferred Stock

Voting Common Stock

Nonvoting Common Stock

Warrants to Purchase Common Stock

Additional Paid-in Capital

Unearned Restricted Stock

Retained Earnings

Accumulated Other Comprehensive Income (Loss)

^[1]

4,227

2,323,832

Beginning balance (Predecessor) at Jun. 30, 2010

^[1]

$ 50,906,000

$ 4,000

$ 2,324,000

$ 0

$ 133,000

$ 6,761,000

$ 0

$ 37,338,000

$ 4,346,000

Net income | Predecessor

^[1]

1,796,000

^[2]

1,796,000

Other comprehensive income, net of tax | Predecessor

^[1]

(1,873,000)

^[2]

$ 0

(1,873,000)

Dividends on preferred stock, shares | Predecessor

^[1]

Dividends on preferred stock | Predecessor

^[1]

(106,000)

$ 0

(106,000)

Dividends on common stock,shares | Predecessor

^[1]

Dividends on common stock | Predecessor

^[1]

(419,000)

$ 0

(419,000)

Stock options exercised,shares | Predecessor

^[1]

7,500

Stock options exercised | Predecessor

^[1]

62,000

$ 0

$ 8,000

$ 0

54,000

Accretion of preferred stock, shares | Predecessor

^[1]

Accretion of preferred stock | Predecessor

^[1]

$ 0

16,000

(16,000)

Ending balance,shares (Predecessor) at Dec. 28, 2010

^[1]

4,227

2,331,332

Ending balance,shares (Successor) at Dec. 28, 2010

^[3]

4,227

2,331,332

Ending balance (Predecessor) at Dec. 28, 2010

^[1]

50,366,000

$ 4,000

$ 2,332,000

$ 0

133,000

6,831,000

38,593,000

2,473,000

Ending balance (Successor) at Dec. 28, 2010

^[3]

36,427,000

4,000

2,332,000

406,000

33,685,000

Net income | Successor

^[3]

12,552,000

Other comprehensive income, net of tax | Successor

^[3]

(226,000)

$ 0

(226,000)

Dividends on preferred stock, shares | Successor

^[3]

Dividends on preferred stock | Successor

^[3]

(105,000)

$ 0

(105,000)

Dividends on common stock,shares | Successor

^[3]

Dividends on common stock | Successor

^[3]

(631,000)

$ 0

(631,000)

Restricted stock award,shares | Successor

^[3]

13,026

Restricted stock award | Successor

^[3]

$ 0

$ 13,000

$ 0

168,000

(181,000)

Issuance of common stock,shares | Successor

^[3]

965,815

195,351

Issuance of common stock | Successor

^[3]

16,175,000

$ 0

$ 965,000

$ 195,000

15,015,000

Stock options exercised,shares | Successor

^[3]

2,000

Stock options exercised | Successor

^[3]

26,000

$ 0

$ 2,000

$ 0

24,000

Stock-based compensation,shares | Successor

^[3]

Stock-based compensation | Successor

^[3]

210,000

$ 0

192,000

18,000

Accretion of preferred stock, shares | Successor

^[3]

Accretion of preferred stock | Successor

^[3]

$ 0

90,000

(90,000)

Modification of stock appreciation rights,shares | Successor

^[3]

Modification of stock appreciation rights | Successor

^[3]

526,000

$ 0

526,000

Ending balance,shares (Successor) at Jun. 30, 2011

^[3]

4,227

3,312,173

195,351

Ending balance (Successor) at Jun. 30, 2011

^[3]

64,954,000

$ 4,000

$ 3,312,000

$ 195,000

406,000

49,700,000

(163,000)

11,726,000

(226,000)

Ending balance at Jun. 30, 2011

64,954,000

Net income | Successor

^[3]

2,163,000

Other comprehensive income, net of tax | Successor

^[3]

384,000

$ 0

384,000

Dividends on preferred stock, shares | Successor

^[3]

Dividends on preferred stock | Successor

^[3]

(212,000)

$ 0

(212,000)

Dividends on common stock,shares | Successor

^[3]

Dividends on common stock | Successor

^[3]

(1,262,000)

$ 0

(1,262,000)

Issuance of common stock,shares | Successor

^[3]

5,994,954

880,963

Issuance of common stock | Successor

^[3]

$ 52,667,000

$ 0

$ 5,995,000

$ 881,000

45,791,000

Stock options exercised,shares

Stock-based compensation,shares | Successor

^[3]

Stock-based compensation | Successor

^[3]

$ 445,000

$ 0

409,000

36,000

Accretion of preferred stock, shares | Successor

^[3]

Accretion of preferred stock | Successor

^[3]

$ 0

180,000

(180,000)

Ending balance,shares (Successor) at Jun. 30, 2012

^[3]

4,227

9,307,127

1,076,314

Ending balance (Successor) at Jun. 30, 2012

^[3]

119,139,000

$ 4,000

$ 9,307,000

$ 1,076,000

$ 406,000

$ 96,080,000

$ (127,000)

$ 12,235,000

$ 158,000

Ending balance at Jun. 30, 2012

$ 119,139,000

[1]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[3]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.

Consolidated Statements of Changes in Stockholders Equity (Parenthetical) - $ / shares

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Dividend common stock, per share

^[1]

$ 0.18

Dividend common stock, per share

^[2]

$ 0.18

$ 0.36

[1]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

$ 210

$ 0

$ 445

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[1]

12,552

2,163

Loss on sale or impairment of repossessed collateral, net

^[1]

707

946

^[1]

Originations of loans held for sale

^[1]

(48,716)

(126,130)

Net proceeds from sales of loans held for sale

^[1]

52,338

124,185

Amortization of intangible assets

^[1]

1,080

1,266

Depreciation of premises and equipment

^[1]

(258)

(501)

^[1]

571

1,299

Loss (gain) on disposal of premises and equipment

^[1]

(4)

Net gain on sale of available-for-sale securities

^[1]

(1,193)

(1,111)

Deferred income tax provision (benefit)

^[1]

554

1,827

Gain on sale of assets of insurance division

^[1]

210

445

^[1]

(1,566)

Amortization of securities, net

^[1]

880

1,671

Changes in other assets and liabilities:

^[1]

(15,441)

Interest receivable

^[1]

716

(596)

Decrease in prepaid FDIC assessment

^[1]

303

548

Other assets and liabilities

^[1]

(1,374)

(512)

Net cash (used in) provided by operating activities

^[1]

(1,379)

(6,966)

Proceeds from sales of available-for-sale securities

^[1]

195,666

179,045

Proceeds from maturities and principal payments on available-for-sale securities

^[1]

(206,772)

(185,991)

^[1]

15,611

22,869

Loan purchases

^[1]

(637)

(101,779)

Loan originations and principal collections, net

^[1]

16,598

50,333

Proceeds from sales of portfolio loans

^[1]

36,874

8,284

Purchases of premises and equipment

^[1]

(945)

(2,565)

Proceeds from sales of premises and equipment

^[1]

163

Proceeds from sales of repossessed collateral

^[1]

240

818

Proceeds from redemption of regulatory stock

^[1]

287

Purchases of regulatory stock

^[1]

(274)

Proceeds from sale of assets of insurance division

^[1]

9,889

Net cash (used in) provided by investing activities

^[1]

56,377

(18,647)

Net increase (decrease) in deposits

^[1]

23,477

22,362

Net (decrease) increase in short-term borrowings

^[1]

(60,528)

(1,306)

Dividends paid on preferred stock

^[1]

(105)

(212)

Dividends paid on common stock

^[1]

(631)

(1,262)

Repayment of other borrowings

^[1]

16,201

52,667

^[1]

(2,129)

Repayment of Federal Home Loan Bank advances

^[1]

(8,000)

Repayment of capital lease obligation

^[1]

(79)

(164)

Net cash provided by (used in) financing activities

^[1]

(29,665)

69,956

Net increase in cash and cash equivalents

^[1]

25,333

44,343

Cash and cash equivalents, beginning of period

^[1]

58,598

83,931

Cash and cash equivalents, end of period

^[1]

83,931

58,598

128,274

Supplemental schedule of cash flow information:

Interest paid

^[1]

3,479

9,774

Income taxes paid, net

^[1]

321

Supplemental schedule of noncash investing and financing activities:

Transfers from loans to repossessed collateral

^[1]

137

1,019

Transfers from acquired assets to loans

^[1]

Successor | Loans Held For Sale

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Successor | Portfolio Loan

^[1]

(945)

(2,761)

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[1]

115

(1,071)

Successor | Loans

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[1]

(1,422)

(3,642)

Successor | Deposits

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[1]

(882)

(1,292)

Successor | Borrowings

^[1]

(1,246)

$ (2,151)

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[2]

1,796

Loss on sale or impairment of repossessed collateral, net

^[2]

912

^[2]

Originations of loans held for sale

^[2]

(87,971)

Net proceeds from sales of loans held for sale

^[2]

96,239

Amortization of intangible assets

^[2]

344

Depreciation of premises and equipment

^[2]

(250)

^[2]

520

Loss (gain) on disposal of premises and equipment

^[2]

(6)

Net gain on sale of available-for-sale securities

^[2]

(17)

Deferred income tax provision (benefit)

^[2]

(313)

Gain on sale of assets of insurance division

^[2]

^[2]

(104)

Amortization of securities, net

^[2]

Changes in other assets and liabilities:

^[2]

Interest receivable

^[2]

121

Decrease in prepaid FDIC assessment

^[2]

120

Other assets and liabilities

^[2]

Net cash (used in) provided by operating activities

^[2]

9,737

Proceeds from sales of available-for-sale securities

^[2]

173

Proceeds from maturities and principal payments on available-for-sale securities

^[2]

(19,001)

^[2]

26,806

Loan purchases

^[2]

Loan originations and principal collections, net

^[2]

14,292

Proceeds from sales of portfolio loans

^[2]

Purchases of premises and equipment

^[2]

(503)

Proceeds from sales of premises and equipment

^[2]

Proceeds from sales of repossessed collateral

^[2]

217

Proceeds from redemption of regulatory stock

^[2]

Purchases of regulatory stock

^[2]

Proceeds from sale of assets of insurance division

^[2]

147

Net cash (used in) provided by investing activities

^[2]

22,167

Net increase (decrease) in deposits

^[2]

(9,580)

Net (decrease) increase in short-term borrowings

^[2]

16,875

Dividends paid on preferred stock

^[2]

(106)

Dividends paid on common stock

^[2]

(419)

Repayment of other borrowings

^[2]

^[2]

(496)

Repayment of Federal Home Loan Bank advances

^[2]

Repayment of capital lease obligation

^[2]

(77)

Net cash provided by (used in) financing activities

^[2]

6,259

Net increase in cash and cash equivalents

^[2]

38,163

Cash and cash equivalents, beginning of period

^[2]

$ 58,598

20,435

Cash and cash equivalents, end of period

^[2]

58,598

Supplemental schedule of cash flow information:

Interest paid

^[2]

5,800

Income taxes paid, net

^[2]

846

Supplemental schedule of noncash investing and financing activities:

Transfers from loans to repossessed collateral

^[2]

124

Transfers from acquired assets to loans

^[2]

143

Predecessor | Loans Held For Sale

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Predecessor | Portfolio Loan

^[2]

(1,867)

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[2]

Predecessor | Loans

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[2]

Predecessor | Deposits

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[2]

Predecessor | Borrowings

Summary of Significant Accounting Policies

^[2]

$ 0

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2012

1.	Summary of Significant Accounting Policies

The accounting and reporting policies of Northeast Bancorp and Subsidiary (“Company” or “Northeast”) conform to accounting principles generally accepted in the United States of America (“GAAP”) and conform to practices within the financial services industry.

Business

The Company is a Maine corporation and a bank holding company registered with the Federal Reserve Bank of Boston (“FRB”) under the Bank Holding Company Act of 1956. The Company provides a full range of banking services to individual and corporate customers throughout south-central and western Maine and conducts loan purchasing activities nationwide through its wholly-owned subsidiary, Northeast Bank (the “Bank”), a Maine state-chartered universal bank and a member of the Federal Reserve Bank of Boston. As a result, the Bank is subject to the joint regulatory oversight by the FRB and the State of Maine Bureau of Financial Institutions. The Bank is also subject to the regulations of the Federal Deposit Insurance Corporation (“FDIC”). The Bank faces competition from banks and other financial institutions.

Business Combination Accounting

On December 29, 2010, the Company merged with FHB Formation LLC (the “Merger”). The Company applied the acquisition method of accounting to this business combination, which represented an acquisition by FHB Formation LLC (“FHB”) of Northeast, with Northeast as the surviving company. Under the acquisition method, the acquiring entity in a business combination recognizes the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. In the Merger, amounts allocated to assets acquired and liabilities assumed were greater than the purchase price, which resulted in the recognition of a bargain purchase gain. Acquisition-related costs were expensed as incurred.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Northeast Bancorp, and its wholly-owned subsidiary, Northeast Bank (including the Bank’s wholly-owned subsidiaries). All significant intercompany transactions and balances have been eliminated in consolidation.

NBN Capital Trust II, NBN Capital Trust III and NBN Capital Trust IV are considered affiliates and are deconsolidated pursuant to criteria established by Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). The investments in these affiliates were $496 thousand in aggregate and are included in other assets.

Reclassifications

Certain previously reported amounts have been reclassified to conform to the current year’s presentation.

Use of Estimates

The financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the statement of financial condition and income and expenses for the period. Actual results could differ significantly from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the determination of fair values in conjunction with the application of acquisition accounting, and the on-going evaluation of assets for potential impairment.

Concentrations of Credit Risk

Most of the Company’s business activity is with customers located within the State of Maine. However, the Company’s loan purchasing activities are diversified across the country. In all regions, the Company has emphasized the origination and purchase of commercial real estate loans. Repayment of loans is expected to come from cash flows of the borrower. Losses on secured loans are limited by the value of the collateral upon default of the borrowers. The Company does not have any significant concentrations to any one industry or customer.

Cash and Cash Equivalents

For purposes of presentation in the consolidated statements of cash flow, cash and cash equivalents consist of cash and due from banks and short-term investments. The Company is required to maintain a certain reserve balance in the form of cash or deposits with other financial institutions. At June 30, 2012 and 2011, such reserve balances totaled $3.8 million and $1.1 million, respectively.

Investment Securities

Securities for which the Company has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Those securities held for indefinite periods of time but not necessarily to maturity are classified as available for sale. Securities held for indefinite periods of time include securities that management intends to use as part of its asset/liability, liquidity, or capital management strategies and may be sold in response to changes in interest rates, maturities, asset/liability mix, liquidity needs, regulatory capital needs or other business factors. Securities available for sale are carried at estimated fair value with unrealized gains and losses reported on an after-tax basis in stockholders’ equity as accumulated other comprehensive income or loss.

Interest and dividends on securities are recorded on the accrual method. Premiums and discounts on securities are amortized or accreted into interest income by the level-yield method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities. These estimates of prepayment assumptions are made based upon the actual performance of the underlying security, current interest rates, the general market consensus regarding changes in mortgage interest rates, the contractual repayment terms of the underlying loans, the priority rights of the investors to the cash flows from the mortgage securities and other economic conditions. When differences arise between anticipated prepayments and actual prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. Unamortized premium or discount is adjusted to the amount that would have existed had the new effective yield been applied since purchase, with a corresponding charge or credit to interest income.

Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and are recorded in non-interest income.

Management evaluates securities for other-than-temporary impairment on a periodic basis. Factors considered in determining whether an impairment is other-than-temporary include: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income.

Federal Home Loan Bank and Federal Reserve Bank Stock

The Company owns investments in the stock of the FRB and the Federal Home Loan Bank of Boston (“FHLBB”). No ready market exists for these stocks, and they have no quoted market values. FRB stock is redeemable at par; therefore, fair value equals cost. The Bank, as a member of the FHLBB, is required to maintain investments in the capital stock of the FHLBB equal to their membership base investments plus an activity-based investment determined according to the Bank’s level of outstanding FHLBB advances. The Company reviews its investments in FHLBB and FRB stock periodically to determine if other-than-temporary impairment exists. The Company reviews recent public filings, rating agency analysis and other factors, when making the determination.

Loans Held for Sale and Loan Servicing

Residential real estate mortgage loans are designated as held for sale based on intent, which is determined when loans are underwritten. Loans originated and held for sale in the secondary market are carried at the lower of cost or fair value. Realized gains and losses on sales of loans are determined using the specific identification method. Direct loan originations costs and fees related to loans held for sale are deferred upon origination and are recognized on the date of sale.

In its mortgage banking activities, the Company sells loans both on a servicing released and servicing retained basis. The Company recognizes as separate assets the rights to service mortgage loans for others, and performs an assessment of capitalized mortgage servicing rights for impairment based on the current fair value of those rights. The Company capitalizes mortgage servicing rights at their allocated cost (based on the relative fair values of the rights and the related loans) upon the sale of the related loans. Mortgage servicing rights are amortized over the estimated weighted average life of the loans. The Company’s assumptions with respect to prepayments, which affect the estimated average life of the loans, are adjusted periodically to reflect current circumstances. The Company evaluates the estimated life and fair value of its servicing portfolio based on data that is disaggregated to reflect note rate, type, and term on the underlying loans.

Loans

Loans are carried at the principal amounts outstanding, or amortized acquired fair value in the case of acquired loans, adjusted by partial charge-offs and net of deferred loan costs or fees. Loan fees and certain direct origination costs are deferred and amortized into interest income over the expected term of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income. Interest income is accrued based upon the daily principal amount outstanding except for loans on nonaccrual status.

All loans purchased by the Company in the secondary market by its Loan Acquisition and Servicing Group (“LASG”) are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). At acquisition, the effective interest rate is determined based on the discount rate that equates the present value of the Company’s estimate of cash flows with the purchase price of the loan. Prepayments are not assumed in determining a purchased loan’s effective interest rate and income accretion. The application of ASC 310-30 limits the yield that may be accreted on the purchased loan, or the “the accretable yield,” to the excess of the Company’s estimate, at acquisition, of the expected undiscounted principal, interest, and other cash flows over the Company’s initial investment in the loan. The excess of contractually required payments receivable over the cash flows expected to be collected on the loan represents the purchased loan’s “nonaccretable difference.” Subsequent improvements in expected cash flows of loans with nonaccretable differences result in a prospective increase to the loan’s effective yield through a reclassification of some, or all, of the nonaccretable difference to accretable yield. The effect of subsequent declines in expected cash flows of purchased loans are recorded through a specific allocation in the allowance for loan losses.

Loans are generally placed on nonaccrual status when they are past due 90 days as to either principal or interest, or when in management’s judgment the collectability of interest or principal of the loan has been significantly impaired. Loans accounted for under ASC 310-30 are placed on nonaccrual when it is not possible to reach a reasonable expectation of the timing and amount of cash flows to be collected on the loan. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan is returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a reasonable period of time.

In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructuring (“TDR”). Modifications may include adjustments to interest rates, extensions of maturity, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Nonaccrual loans that are restructured remain on nonaccrual for a minimum period of six months to demonstrate that the borrower can meet the restructured terms. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan is classified as a nonaccrual loan. Loans classified as TDRs remain classified as such until the loan is paid off.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses consists of general, specific, and unallocated reserves and reflects management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a consistent and systematic process and methodology to evaluate the adequacy of the allowance for loan losses on a quarterly basis. The calculation of the allowance for loan losses is segregated by portfolio segments, which include: commercial real estate, commercial business, consumer, and residential real estate. Loans purchased by the LASG are further segregated from the aforementioned segments. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate: The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. All loans in this segment are collateralized by residential real estate and repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, particularly unemployment rates and housing prices, has a significant effect on the credit quality in this segment. For purposes of the Company’s allowance for loan loss calculation, home equity loans and lines of credit are included in residential real estate.

Commercial real estate: Loans in this segment are primarily income-producing properties. For owner-occupied properties, the cash flows are derived from an operating business, and the underlying cash flows may be adversely affected by deterioration in the financial condition of the operating business. The underlying cash flows generated by non-owner occupied properties may be adversely affected by increased vacancy rates. Management periodically obtains rent rolls, with which it monitors the cash flows of these loans. Adverse developments in either of these areas will have an adverse effect on the credit quality of this segment. For purposes of the allowance for loan losses, this segment also includes construction loans.

Commercial business: Loans in this segment are made to businesses and are generally secured by the assets of the business. Repayment is expected from the cash flows of the business. Weak national or regional economic conditions, and a resultant decrease in consumer or business spending, will have an adverse effect on the credit quality of this segment.

Consumer: Loans in this segment are generally secured, and repayment is dependent on the credit quality of the individual borrower. Repayment of consumer loans is generally based on the earnings of individual borrowers, which may be adversely impacted by regional labor market conditions.

Purchased: Loans in this segment are secured by commercial real estate, multi-family residential real estate, or business assets and have been acquired by the LASG. Loans acquired by the LASG are, with limited exceptions, performing loans at the date of purchase. Loans in this segment acquired with specific material credit deterioration since origination are identified as purchased credit-impaired (“PCI”). Repayment of loans in this segment is largely dependent on cash flow from the successful operation of the property, in the case of non-owner occupied property, or operating business, in the case of owner-occupied property. Loan performance may be adversely affected by factors affecting the general economy or conditions specific to the real estate market such as geographic location or property type. Loans in this segment are evaluated for impairment under ASC 310-30. The Company reviews expected cash flows from purchased loans on a quarterly basis. The effect of a decline in expected cash flows subsequent to the acquisition of the loan is recognized through a specific allocation in the allowance for loan losses.

The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segment. The Company considers its loss experience subsequent to the Merger in its quantitative historical loss analysis. The Company does not weight periods used in that analysis to determine the average loss rate in each portfolio segment. This historical loss factor is adjusted for the following qualitative factors:

•

Levels and trends in delinquencies

•

Trends in the volume and nature of loans

•

Trends in credit terms and policies, including underwriting standards, procedures and practices, and the experience and ability of lending management and staff

•

Trends in portfolio concentration

•

National and local economic trends and conditions.

•

Effects of changes or trends in internal risk ratings

•

Other effects resulting from trends in the valuation of underlying collateral

There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during fiscal year 2012.

The allocated component of the allowance for loan losses relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial business and commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower that the carrying value of that loan. Large groups of smaller-balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment based on the group’s historical loss experience adjusted for qualitative factors. Accordingly, the Company does not separately identify individual consumer and residential loans for individual impairment and disclosure. However, all loans modified in troubled debt restructurings are individually reviewed for impairment.

For all loans segments except the purchased loan segment a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. For the purchased loan segment, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to realize cash flows as estimated at acquisition. Loan impairment of purchased loans is measured based on the decrease in expected cash flows from those estimated at acquisition, excluding changes due to decreases in interest rate indices, discounted at the loan’s effective rate assumed at acquisition. Factors considered by management in determining impairment include payment status, collateral value, and the probability of the collecting scheduled principal and interest payments when due.

The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. The Company considers all loans modified in a TDR as impaired loans. By policy, loans classified as TDRs remain classified as such until the loan is paid off.

The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Premises and equipment under capital leases are amortized over the estimated useful lives of the assets or the respective lease terms, whichever is shorter. Maintenance and repairs are charged to expense as incurred and the cost of major renewals and betterments are capitalized.

Intangible Assets

Identifiable intangible assets subject to amortization are amortized over the estimated lives of the intangibles using a method that approximates the amount of economic benefits that are realized by the Company. Identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Repossessed Collateral

Assets in control of the Company or acquired through foreclosure or repossession are held for sale and are initially recorded at fair value less cost to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated cost to sell) of the foreclosed asset is charged to the allowance for loan losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance or through a direct write-off. Subsequent increases in the fair value may be recorded as reductions to the valuation allowance. Rental revenue received on foreclosed assets is included in other noninterest income, whereas operating expenses and changes in the valuation allowance relating to foreclosed assets are included in other noninterest expense.

Impairment of Long-Lived Assets

The Company reviews long-lived assets, including premises and equipment, for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.

Bank Owned Life Insurance

Increases in the cash surrender value of life insurance policies, as well as death benefits received net of any cash surrender value, are recorded in other noninterest income, and are not subject to income taxes. The cash surrender value of the policies not previously endorsed to participants are recorded as assets of the Company. Any amounts owed to participants relating to these policies are recorded as liabilities of the Company. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company’s policy is to recognize interest and penalties assessed on tax positions in income tax expense.

Advertising Expense

Advertising costs are expensed as incurred.

Stock-Based Compensation

The Company’s stock-based compensation plans provide for awards of stock options, restricted stock and other stock-based compensation to directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense.

Discontinued Operations

During the first quarter of fiscal 2012, substantially all of the assets of the Company’s insurance division, Northeast Bank Insurance Group, Inc. (“NBIG”) were sold in two separate transactions. The results of NBIG are classified as discontinued operations in the statements of income for each period presented. The Company has eliminated all intercompany transactions related to discontinued operations for each period presented.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, unrealized losses related to factors other than credit on debt securities, unrealized gains and losses on cash flow hedges and deferred gains on hedge accounting transactions.

Earnings Per Share

Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e. unvested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding (inclusive of participating securities). Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options or the attainment of performance measures) were issued during the period, computed using the treasury stock method.

Derivatives

Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income, net of related tax, and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period. For derivative instruments designated and qualifying as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or liability or an identified portion thereof that is attributable to the hedged risk), the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings during the period of the change in fair values. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. At the inception of a hedge, the Company documents certain items, including but not limited to the following: the relationship between hedging instruments and hedged items, Company risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions.

Hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is sold, (3) a derivative is de-designated as a hedge, because it is unlikely that a forecasted transaction will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate.

As part of its mortgage banking activities, the Company originates residential mortgage loans to be held for sale. In connection with these loans, the Company often offers interest rate lock commitments to prospective borrowers. The Company manages this interest rate risk by entering into offsetting forward sale agreements with third party investors for certain funded loans and loan commitments. Both the interest rate lock commitments and forward sale agreements are off balance sheet commitments that are considered to be derivatives. The Company records unfunded commitments intended for sale and forward sales agreements at fair value with changes in fair value recorded in noninterest income.

Transfer of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Recent Accounting Pronouncements

In April 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-02, Receivables (Topic 310): A Creditors Determination of Whether a Restructuring is a Troubled Debt Restructuring. This update provides guidance and clarification to help creditors in determining whether a creditor has granted a concession and whether a debtor is experiencing financial difficulties for purposes of determining whether a restructuring constitutes a troubled debt restructuring. The amendments in this update are effective for the first interim or annual period beginning on or after June 15, 2011 and should be applied retrospectively to the beginning of the annual period of adoption. The adoption of this guidance did not result in the identification of newly impaired loans for which impairment was previously measured under ASC 450, Contingencies.

In April 2011, the FASB issued ASU No. 2011-03, Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements. The main provisions in this amendment remove from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion. Eliminating the transferor’s ability criterion and related implementation guidance from an entity’s assessment of effective control should improve the accounting for repos and other similar transactions. The guidance in this update is effective for the first interim or annual period beginning on or after December 15, 2011 and should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. The adoption of this guidance did not have a material impact on the consolidated financial statements.

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this update are a result of the work by the FASB and the International Accounting Standards Board to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards (“IFRS”). The amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend for these amendments to result in a change in the application of the requirements of Topic 820. The amendments are to be applied prospectively. The amendments are effective during interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the consolidated financial statements.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (“ASU 2011-05”). The objective of this update is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments in this update require that all non-owner changes in stockholders’ equity be presented either in as single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments are to be applied prospectively. The amendments are effective during interim and annual periods beginning after December 15, 2011. Early adoption is permitted. The adoption of this guidance did not have a material impact on the consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). The update requires entities to disclose information about offsetting and related arrangements of financial instruments and derivative instruments. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (i) offset in accordance with current literature or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current literature. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The Company does not anticipate that the adoption of this guidance will have a material impact on the consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. The amendments in this update defer those changes in ASU 2011-05 that relate to the presentation of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. All other requirements in ASU 2011-05 are not affected by this update. The amendments are effective during interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the consolidated financial statements.

Merger

12 Months Ended

Jun. 30, 2012

Merger

2.	Merger

On December 29, 2010, the merger of the Company and FHB Formation LLC, a Delaware limited liability company, was consummated. As a result of the merger, the surviving company received a capital contribution of $16.2 million (in addition to the approximately $13.1 million in cash consideration paid to former shareholders), and the former members of FHB collectively acquired approximately 60% of the Company’s outstanding common stock. The Company applied the acquisition method of accounting, as described in ASC 805, Business Combinations (“ASC 805”) to the merger, which represents an acquisition by FHB of Northeast, with Northeast as the surviving company (the “Successor Company”). In the application of ASC 805 to this transaction, the following was considered:

Identify the Accounting Acquirer: FHB was identified as the accounting acquirer. FHB, which was incorporated on March 9, 2009, acquired a controlling financial interest of approximately 60% of the Successor Company’s total outstanding voting and non-voting common stock in exchange for contributed capital and cash consideration.

In the evaluation and identification of FHB as the accounting acquirer, it was concluded that FHB was a substantive entity involved in significant pre-merger activities, including the following: raising capital; incurring debt; incurring operating expenses; leasing office space; hiring staff to develop the surviving company’s business plan; retaining professional services firms; and identifying acquisition targets and negotiating potential transactions, including the merger.

Determine the Acquisition Date: December 29, 2010, the closing date of the merger, was the date that FHB gained control of the combined entity.

Recognize assets acquired and liabilities assumed: Because neither Northeast Bancorp, the Predecessor Company (the acquired company), nor FHB (the accounting acquirer) exist as separate entities after the merger, a new basis of accounting at fair value for the Successor Company’s assets and liabilities was established in the consolidated financial statements. At the acquisition date, the Successor Company recognized the identifiable assets acquired and the liabilities assumed based on their then fair values in accordance with ASC Topic 820, Fair Value Measurement (“ASC 820”). The Successor Company recognized a bargain purchase gain as the difference between the total purchase price and the net assets acquired.

As a result of application of the acquisition method of accounting to Northeast Bancorp after the merger on December 29, 2010, the Company’s financial statements from the periods prior to the transaction date are not directly comparable to the financial statements for periods subsequent to the transaction date. To make this distinction, the Company has labeled balances and results of operations prior to the transaction date as “Predecessor Company” and balances and results of operations for periods subsequent to the transaction date as “Successor Company.” The lack of comparability arises from the assets and liabilities having new accounting bases as a result of recording them at their fair values as of the transaction date rather than at historical cost basis. To denote this lack of comparability, a heavy black line has been placed between the Successor Company and Predecessor Company columns in the Consolidated Financial Statements and in the tables in the notes to the statements.

In connection with the transaction, as part of the regulatory approval process the Company made certain commitments to the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Maine Bureau of Financial Institutions (the “Bureau”), the most significant of which are, (i) maintain a Tier 1 leverage ratio of at least 10%, (ii) maintain a total risk-based capital ratio of at least 15%, (iii) limit purchased loans to 40% of total loans, (iv) fund 100% of the Company’s loans with core deposits (defined as non-maturity deposits and non-brokered insured time deposits), and (v) hold commercial real estate loans (including owner-occupied commercial real estate) to within 300% of total risk-based capital. The Company is currently in compliance with all commitments to the Federal Reserve and the Bureau.

Under the acquisition method of accounting, the Company assets acquired and liabilities assumed are recorded at their respective fair values as of the transaction date. In connection with the merger, the consideration paid, and the assets acquired and liabilities assumed recorded at fair value on the date of acquisition, are summarized below (dollars in thousands).


Consideration:
FHB investors’ purchase of 937,933 existing Northeast shares, at $13.93 per Surviving Company share	$	13,065
Existing Northeast shareholders’ retention of shares in Surviving Company, 1,393,399 shares at $13.93 per share		19,410

Total consideration:	$	32,475

Net Assets Acquired:
Assets:
Cash and short-term investments	$	58,598
Available-for-sale securities		153,315
Loans held-for-sale		7,864
Loans		361,741
Premises and equipment		7,909
Bank-owned life insurance		13,536
Core deposit intangible		6,348
Other identifiable intangibles		7,865
Other assets		14,409

Total Assets Acquired		631,585

Liabilities and Preferred Equity:
Deposits		378,523
Overnight borrowings		63,043
Term borrowings		125,627
Jr. subordinated debentures issued to affiliated trusts		7,889
Other liabilities		4,492
Preferred stock		4,095

Total Liabilities and Preferred Equity Assumed		583,669

Net Identifiable Assets Acquired	$	47,916

Bargain purchase gain recorded in income	$	15,441

In this transaction, the estimated fair values of the Company’s net assets were greater than the purchase price. This resulted in a bargain purchase gain of $15.4 million in the 184 day period ended June 30, 2011. The transaction resulted in a gain principally because intangible asset fair values were identified totaling $14.2 million, while the consideration paid was principally based on the Company’s tangible book value as of September 30, 2009. Direct costs associated with the merger were expensed by the Company as incurred. Through June 30, 2011, those expenses, principally legal, accounting and investment banking fees, amounted to $3.8 million, of which $3.3 million was incurred in the year ended June 30, 2011.

On the merger date, the fair value of the loan portfolio was $369.6 million, and included $4.6 million of loans with evidence of deterioration in credit quality since origination for which it was probable, as of the transaction date, that the Company would be unable to collect all contractually required payments receivable. In accordance with ASC 310-30, this resulted in a non-accretable difference of $1.9 million, which is defined as the loan’s contractually required payments in excess of the amount of its cash flows expected to be collected. The Company considered factors such as payment history, collateral values, and accrual status when determining whether there was evidence of deterioration of a loan’s credit quality at the transaction date. The Company’s previously established allowance for loan losses was eliminated at the merger date.

The core deposit intangible asset recognized as part of the transaction is being amortized over its estimated useful life of 9.5 years.

Other identifiable intangibles of $7.9 million consisted principally of the Company’s insurance agency customer lists, which were appraised by an insurance valuation specialist. Existing goodwill totaling $4.1 million, recorded in conjunction with previous insurance agency acquisitions, was eliminated when determining the fair value of net assets.

The fair value of savings and transaction accounts was assumed to approximate their carrying value, since these deposits have no stated maturity and are payable upon demand.

The fair values of certificates of deposit, term borrowings and junior subordinated debentures issued to affiliate trusts were determined by discounting their contractual cash flows at current market rates.

Available-for-sale Securities

12 Months Ended

Jun. 30, 2012

Available-for-sale Securities

3.	Available-for-sale Securities

Securities available-for-sale at amortized cost and approximate fair values are summarized below:


	June 30, 2012				June 30, 2011
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
U.S. Government agency securities	$	45,824	$	45,808	$	48,827	$	48,737
Agency mortgage-backed securities		86,816		87,456		99,637		99,558
Equity securities		0		0		193		216
Trust preferred securities		0		0		466		451

	$	132,640	$	133,264	$	149,123	$	148,962

The gross unrealized gains and unrealized losses on available-for-sale securities are as follows:


	June 30, 2012				June 30, 2011
	Gross Unrealized Gains		Gross Unrealized Losses		Gross Unrealized Gains		Gross Unrealized Losses
	(Dollars in thousands)
U.S. Government agency securities	$	5	$	21	$	7	$	97
Agency mortgage-backed securities		640		0		212		291
Equity securities		0		0		23		0
Trust preferred securities		0		0		8		23

	$	645	$	21	$	250	$	411

When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on sale. The following table summarizes realized gains and losses on available-for-sale securities.


Successor Company	Year Ended June 30, 2012		184 Days Ended June 30, 2011
	(Dollars in thousands)
Gross realized gains	$	1,178	$	1,427
Gross realized losses		67		227

Net security gains	$	1,111	$	1,200


Predecessor Company	181 Days Ended December 28, 2010
	(Dollars in thousands)
Gross realized gains	$	17
Gross realized losses		0

Net security gains	$	17

At June 30, 2012, investment securities with a fair value of approximately $92.5 million were pledged as collateral to secure outstanding structured repurchase agreements and FHLB advances.

The following summarizes the Company’s gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.


	June 30, 2012
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Government agency securities	$	36,585	$	21	$	0	$	0	$	36,585	$	21
Agency mortgage-backed securities		0		0		0		0		0		0

	$	36,585	$	21	$	0	$	0	$	36,585	$	21


	June 30, 2011
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Government agency securities	$	46,130	$	97	$	0	$	0	$	46,130	$	97
Agency mortgage-backed securities		51,367		291		0		0		51,367		291
Trust preferred securities		174		23		0		0		174		23

	$	97,671	$	411	$	0	$	0	$	97,671	$	411

There were no other-than-temporary impairment losses on securities during the year ended June 30, 2012. The Company recorded other-than-temporary impairment of $7 thousand related to certain trust preferred securities during the 184 days ended June 30, 2011. There were no other-than-temporary impairment losses on securities during the 181 days ended December 28, 2010.

At June 30, 2012, the Company did not have any securities in a continuous loss position for greater than twelve months. At June 30, 2012, all of the Company’s available-for-sale securities were issued or guaranteed by either government agencies or government-sponsored enterprises. The decline in fair value of the Company’s available-for-sale securities at June 30, 2012 is attributable to changes in interest rates.

Management of the Company, in addition to considering current trends and economic conditions that may affect the quality of individual securities within the Company’s investment portfolio, also considers the Company’s ability and intent to hold such securities to maturity or recovery of cost. Management does not believe any of the Company’s available-for-sale securities are other-than-temporarily impaired at June 30, 2012.

The amortized cost and fair values of available-for-sale debt securities by contractual maturity are shown below as of June 30, 2012. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Fair Value
	(Dollars in thousands)
Due after one year through five years	$	45,824	$	45,808
Due after five years through ten years		0		0
Due after ten years		0		0

		45,824		45,808
Mortgage-backed securities		86,816		87,456

	$	132,640	$	133,264

Loans, Allowance for Loan Losses and Credit Quality

12 Months Ended

Jun. 30, 2012

Loans, Allowance for Loan Losses and Credit Quality

4.	Loans, Allowance for Loan Losses and Credit Quality

The composition of the Company’s loan portfolio is as follows on the dates indicated. The Company’s originated loan portfolio consists of loans originated before and after the merger with FHB. The Company’s purchased loan portfolio consists of loans acquired after the merger through the LASG.


	June 30, 2012						June 30, 2011
	Originated		Purchased		Total		Originated		Purchased		Total
	(Dollars in thousands)
Residential real estate	$	90,944	$	3,931	$	94,875	$	95,417	$	0	$	95,417
Home equity		42,696		0		42,696		50,060		0		50,060
Commercial real estate		100,196		80,539		180,735		117,124		637		117,761
Construction		1,187		0		1,187		2,015		0		2,015
Commercial business		19,612		0		19,612		22,225		0		22,225
Consumer		17,149		0		17,149		22,435		0		22,435

Total loans	$	271,784	$	84,470	$	356,254	$	309,276	$	637	$	309,913

The following table presents a summary of credit impaired loans acquired through the merger on December 29, 2010.


	Residential Real Estate and Consumer			Commercial Real Estate and Commercial Business			Total
	(Dollars in thousands)
Contractually required payments receivable	$	3,677		$	6,066		$	9,743
Nonaccretable difference		(938	)		(2,410	)		(3,348	)

Cash flows expected to be collected		2,739			3,656			6,395
Accretable yield		(1,204	)		(486	)		(1,690	)

Fair value of PCI loans acquired	$	1,535		$	3,170		$	4,705

The remaining carrying amount of loans identified at the merger as having evidence of credit deterioration since origination was $2.4 million as of June 30, 2012, consisting primarily of nonperforming small balance consumer loans. The accretable yield associated with such loans was not significant as of June 30, 2012.

The following tables present a summary of purchased credit-impaired loans acquired by the LASG (dollars in thousands):


Loans Acquired During the Year Ended June 30, 2012:
Contractually required payments receivable	$	35,455
Nonaccretable difference		(8,765	)

Cash flows expected to be collected		26,690
Accretable yield		(8,589	)

Fair value of PCI loans acquired	$	18,101

Activity in Accretable Yield During the Year Ended June 30, 2012:
Beginning balance	$	0
Accretion		(1,912	)
Acquisitions		8,589
Reclassifications from nonaccretable difference, net		1,156
Disposals and transfers		(664	)

Ending balance	$	7,169

Unpaid principal balance at June 30, 2012	$	21,359

Carrying amount at June 30, 2012	$	13,866

In the ordinary course of business, the Company has loan transactions with its officers, directors and their associates and affiliated companies (“related parties”) on substantially the same terms, including rate, as those prevailing at the time for comparable transactions with others. Such loans amounted to $1.6 million and $2.0 million at June 30, 2012 and June 30, 2011, respectively.

Activity in the allowance for loan losses follows:


Successor Company
	Year ended June 30, 2012
	Residential Real Estate			Commercial Real Estate			Commercial Business			Consumer			Purchased⁽¹⁾		Total
	(Dollars in thousands)
Beginning balance	$	34		$	147		$	238		$	18		$	0	$	437
Provision		425			(28	)		27			522			0		946
Recoveries		3			0			44			37			0		84
Charge-offs		(248	)		(26	)		(17	)		(352	)		0		(643	)

Ending balance	$	214		$	93		$	292		$	225		$	0	$	824

(1)	Purchased loans included above include commercial real estate, commercial business, and residential real estate loans. The Company separately analyzes all loans purchased by the LASG from other segments in determining the allowance for loan losses under ASC 310-30.


	Successor Company			Predecessor Company
	184 days ended June 30, 2011			181 days ended December 28, 2010
	(Dollars in thousands)
Beginning balance	$	0		$	5,806
Provision		707			912
Recoveries		36			108
Charge-offs		(306	)		(859	)

Ending balance	$	437		$	5,967

The following table sets forth information regarding the allowance for loan losses by portfolio segment and impairment methodology.


	June 30, 2012
	Residential Real Estate		Commercial Real Estate		Commercial Business		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	3	$	41	$	284	$	0	$	328
Collectively evaluated		211		52		8		225		496
Purchased ⁽¹⁾		0		0		0		0		0

Total	$	214	$	93	$	292	$	225	$	824

Loans:
Individually evaluated	$	399	$	3,112	$	1,127	$	0	$	4,638
Collectively evaluated		133,241		99,326		18,485		17,149		268,201
Purchased ^(1) (2)		3,931		79,484		0		0		83,415

Total	$	137,571	$	181,922	$	19,612	$	17,149	$	356,254


	June 30, 2011
	Residential Real Estate		Commercial Real Estate		Commercial Business		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	0	$	119	$	196	$	0	$	315
Collectively evaluated		34		28		42		18		122
Purchased⁽¹⁾		0		0		0		0		0

Total	$	34	$	147	$	238	$	18	$	437

Loans:
Individually evaluated	$	0	$	1,221	$	1,922	$	0	$	3,143
Collectively evaluated		146,585		116,810		20,303		22,435		306,133
Purchased⁽¹⁾		0		637		0		0		637

Total	$	146,585	$	118,668	$	22,225	$	22,435	$	309,913

(1)	Loans in this category are evaluated for impaired under ASC 310-30. Post acquisition, the effect of a decline in expected cash flows is recorded through the allowance for loan losses as a specific allocation.

(2)	At June 30, 2012, one purchased loan totaling $1.1 million was nonperforming and individually evaluated under ASC 310-10.

The following table sets forth information regarding impaired loans. The recorded investment in impaired loans includes discounts or premiums from acquisition through purchase or merger. Interest income recognized includes interest received or accrued based on loan principal and contractual interest rates. Loans accounted for under ASC 310-30 that have performed based on cash flow and accretable yield expectations determined at date of acquisition are not considered impaired assets and have been excluded from the tables below.


	At June 30, 2012						For the Year Ended June 30, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Impaired loans without a valuation allowance:
Originated:
Residential real estate	$	293	$	483	$	0	$	235	$	21
Consumer		0		0		0		0		0
Commercial real estate		1,482		1,738		0		1,119		99
Construction		0		0		0		0		0
Commercial business		377		692		0		520		15
Purchased:
Commercial real estate		1,055		1,462		0		211		0
Residential real estate		0		0		0		0		0

Total		3,207		4,375		0		2,085		135
Impaired loans with a valuation allowance:
Originated:
Residential real estate		106		103		3		73		0
Consumer		0		0		0		0		0
Commercial real estate		575		565		41		647		27
Construction		0		0		0		0		0
Commercial business		750		817		284		732		0
Purchased:
Commercial real estate		0		0		0		0		0
Residential real estate		0		0		0		0		0

Total		1,431		1,485		328		1,452		27

Total impaired loans	$	4,638	$	5,860	$	328	$	3,537	$	162


	At June 30, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
Impaired loans without a valuation allowance:
Commercial real estate	$	348	$	348	$	0
Commercial business		1,054		1,054		0

Total		1,402		1,402		0
Impaired loans with a valuation allowance:
Commercial real estate		873		873		119
Commercial business		868		868		196

Total		1,741		1,741		315

Total impaired loans	$	3,143	$	3,143	$	315


	Successor Company 184 Days Ended June 30, 2011				Predecessor Company 181 Days Ended December 28, 2010
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized

	(Dollars in thousands)
Residential real estate	$	21	$	1	$	330	$	2
Commercial real estate		1,736		60		3,366		76
Commercial business		1,041		29		1,738		20

Total	$	2,798	$	90	$	5,434	$	98

The following is a summary of past due and non-accrual loans:


	June 30, 2012
	30-59 Days		60-89 Days		Past Due 90 Days or More- Still Accruing		Past Due 90 Days or More- Nonaccrual		Total Past Due		Total Current		Total Loans		Non- Accrual Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	261	$	183	$	0	$	2,907	$	3,351	$	87,593	$	90,944	$	3,090
Home equity		16		160		0		136		312		42,384		42,696		220
Commercial real estate		0		208		0		417		625		99,571		100,196		417
Construction		0		0		0		0		0		1,187		1,187		0
Commercial business		0		107		0		901		1,008		18,604		19,612		1,008
Consumer		259		137		0		206		602		16,547		17,149		324

Total originated portfolio		536		795		0		4,567		5,898		265,886		271,784		5,059
Purchased portfolio:
Residential real estate		0		0		0		0		0		3,931		3,931		0
Commercial real estate		0		0		0		1,055		1,055		79,484		80,539		1,055

Total purchased portfolio		0		0		0		1,055		1,055		83,415		84,470		1,055

Total loans	$	536	$	795	$	0	$	5,622	$	6,953	$	349,301	$	356,254	$	6,114


	June 30, 2011
	30-59 Days		60-89 Days		Past Due 90 Days or More- Still Accruing		Past Due 90 Days or More- Nonaccrual		Total Past Due		Total Current		Total Loans		Non- Accrual Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	257	$	1,021	$	0	$	1,779	$	3,057	$	92,360	$	95,417	$	2,195
Home equity		117		0		0		89		206		49,854		50,060		205
Commercial real estate		0		492		0		934		1,426		115,698		117,124		3,601
Construction		0		0		0		121		121		1,894		2,015		121
Commercial business		4		75		751		416		1,246		20,979		22,225		559
Consumer		566		338		0		508		1,412		21,023		22,435		527

Total originated portfolio		944		1,926		751		3,847		7,468		301,808		309,276		7,208
Purchased portfolio:
Commercial real estate		0		0		0		0		0		637		637		0

Total purchased portfolio		0		0		0		0		0		637		637		0

Total loans	$	944	$	1,926	$	751	$	3,847	$	7,468	$	302,445	$	309,913	$	7,208

The following table shows the troubled debt restructurings that occurred during the year ended June 30, 2012 and the change in the recorded investment subsequent to the modifications occurring. All concessions given during the period consisted of either rate reductions or maturity extensions, or combinations thereof. There was no forgiveness of principal related to loans modified in a TDR during the period.


	Number of Contracts		Recorded Investment Pre-Modification		Recorded Investment Post-Modification
	(Dollars in thousands)
Originated portfolio:
Residential real estate		1	$	139	$	139
Home equity		1		20		20
Commercial real estate		1		184		184
Construction		0		0		0
Commercial business		0		0		0
Consumer		0		0		0

Total originated portfolio		3		343		343
Purchased portfolio:
Residential real estate		0		0		0
Commercial real estate		0		0		0

Total purchased portfolio		0		0		0

Total		3	$	343	$	343

Each TDR that occurred during the year ended June 30, 2012 consisted of a combination of interest rate reduction and maturity extension. There were no defaults of loans previously modified in a TDR during the year ended June 30, 2012. As of June 30, 2012, there were no further commitments to lend associated with loans modified in a TDR.

The following table shows the Company’s total TDRs as of the dates indicated.


	June 30, 2012						June 30, 2011
	On Accrual Status		On Nonaccrual Status		Total		On Accrual Status		On Nonaccrual Status		Total
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	92	$	139	$	231	$	93	$	0	$	93
Home equity		20		0		20		0		0		0
Commercial real estate		1,053		0		1,053		0		859		859
Construction		0		0		0		0		0		0
Commercial business		0		0		0		0		0		0
Consumer		0		0		0		0		0		0

Total originated portfolio		1,165		139		1,304		93		859		952
Purchased portfolio:
Residential real estate		0		0		0		0		0		0
Commercial real estate		0		0		0		0		0		0

Total purchased portfolio		0		0		0		0		0		0

Total	$	1,165	$	139	$	1,304	$	93	$	859	$	952

Credit Quality Indicators

As of January 1, 2012, the Company updated its internal loan rating system from an eight to a ten point scale. Risk ratings for periods prior to January 1, 2012 have been retroactively adjusted for comparative purposes.

The Company utilizes a ten point internal loan rating system for its purchased loan portfolio and originated commercial real estate, construction and commercial business loans as follows:

Loans rated 1 – 6: Loans in these categories are considered “pass” rated loans. Loans in categories 1-5 are considered to have low to average risk. Loans rated 6 are considered marginally acceptable business credits and have more than average risk.

Loans rated 7: Loans in this category are considered “special mention.” These loans are beginning to show signs of potential weakness and are being closely monitored by management.

Loans rated 8: Loans in this category are considered “substandard.” Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well defined weakness or weaknesses that jeopardize the orderly liquidation of the debt.

Loans rated 9: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in one graded 8 with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loans rated 10: Loans in this category are considered “loss” and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings of all commercial real estate, construction, and commercial business loans. Semi-annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. Risk ratings on purchased loans, with and without evidence of credit deterioration at acquisition, are determined relative to the Company’s recorded investment in that loan, which may be significantly lower than the loan’s unpaid principal balance.

The following tables present the Company’s loans by risk rating.


	June 30, 2012
	Originated Portfolio
	Commercial Real Estate		Construction		Commercial Business		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	96,963	$	1,187	$	18,223	$	83,415
Loans rated 7		1,886		0		250		1,055
Loans rated 8		1,347		0		1,139		0
Loans rated 9		0		0		0		0
Loans rated 10		0		0		0		0

	$	100,196	$	1,187	$	19,612	$	84,470


	June 30, 2011
	Originated Portfolio
	Commercial Real Estate		Construction		Commercial Business		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	106,717	$	2,015	$	18,201	$	637
Loans rated 7		3,133		0		1,169		0
Loans rated 8		7,274		0		2,855		0
Loans rated 9		0		0		0		0
Loans rated 10		0		0		0		0

	$	117,124	$	2,015	$	22,225	$	637

Premises and Equipment

12 Months Ended

Jun. 30, 2012

Premises and Equipment

5.	Premises and Equipment

Premises and equipment consists of the following:


	June 30, 2012		June 30, 2011
	(Dollars in thousands)
Land	$	1,210	$	1,251
Buildings		2,120		2,194
Assets recorded under capital lease		1,850		1,850
Leasehold and building improvements		940		903
Furniture, fixtures and equipment		4,909		2,644

		11,029		8,842
Less accumulated depreciation		1,824		571

Net premises and equipment	$	9,205	$	8,271

Depreciation and amortization of premises and equipment included in occupancy and equipment expense was $1.3 million for the year ended June 30, 2012, $571 thousand for the 184 days ended June 30, 2011, and $520 thousand for the 181 days ended December 28, 2010.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

Discontinued Operations

12 Months Ended

Jun. 30, 2012

Discontinued Operations

6.	Discontinued Operations

The operations of the Company’s wholly-owned subsidiary, Northeast Bank Insurance Group (“NBIG”), have been reclassified as discontinued operations in the consolidated statements of income for the year ended June 30, 2012, the 184 days ended June 30, 2011, and the 181 days ended December 28, 2010, with no effect on previously reported net income or stockholders’ equity.

On August 31, 2011, the Company sold customer lists and certain fixed assets of NBIG to local insurance agencies in two separate transactions. The following is a summary of the sale transactions (dollars in thousands).


Sale proceeds	$	9,889
Less:
Customer lists and other intangible assets, net		7,380
Fixed assets, net of accumulated depreciation		164
Severance and other direct expenses		779

Pre-tax gain recognized	$	1,566

Customer lists and certain fixed assets of an NBIG agency office were also sold in fiscal 2011, resulting in a pretax gain of $105 thousand.

The following summarizes the operations of NBIG.


	Successor Company					Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011		181 Days Ended December 28, 2010

	(Dollars in thousands)
Interest expense	$	14		$	54	$	75
Noninterest income:
Insurance commissions		965			2,772		2,660
Other noninterest income (expense)		(4	)		4		0

Total noninterest income		961			2,776		2,660

Noninterest expense:
Salaries and employee benefits		494			1,758		1,721
Occupancy and equipment expense		88			237		204
Professional fees		16			11		18
Data processing fees		38			107		97
Intangible assets amortization		68			417		344
Other		57			124		107

Total noninterest expense		761			2,654		2,491

Income from discontinued operations		186			68		94
Gain on sale of assets		1,566			0		105

Income from discontinued operations before income tax expense		1,752			68		199
Income tax expense		605			23		70

Net income from discontinued operations	$	1,147		$	45	$	129

Intangible assets associated with discontinued operations totaled $7.4 million at June 30, 2011. The carrying amount of fixed assets associated with discontinued operations was not significant at June 30, 2011.

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Intangible Assets

12 Months Ended

Jun. 30, 2012

Intangible Assets

7.	Intangible Assets

At June 30, 2012, intangible assets consisted of a core deposit intangible recorded in conjunction with the merger on December 29, 2010. During the year ended June 30, 2012, intangible assets consisting of customer lists and non-compete agreements were included in the sale of the assets of the Company’s insurance division. The Company’s core deposit intangible is being amortized on an accelerated basis over 9.5 years.

The changes in the carrying amount of intangible assets follow:


			Identifiable Intangibles
	Goodwill		Core Deposit Intangible		Other Intangibles			Total Identifiable Intangibles
	(Dollars in thousands)
Predecessor Company
Balance, June 30, 2010	$	4,083	$	0	$	7,288		$	7,288
Amortization		0		0		(344	)		(344	)
Assets sold or disposed		0		0		(43	)		(43	)

Balance, December 28, 2010	$	4,083	$	0	$	6,901		$	6,901


			Identifiable Intangibles
	Goodwill		Core Deposit Intangible			Other Intangibles			Total Identifiable Intangibles
	(Dollars in thousands)
Successor Company
Balance, December 29, 2010	$	0	$	6,348		$	7,865		$	14,213
Amortization		0		(663	)		(417	)		(1,080	)
Assets sold or disposed		0		0			0			0

Balance, June 30, 2011		0		5,685			7,448			13,133
Amortization		0		(1,198	)		(68	)		(1,266	)
Assets sold or disposed		0		0			(7,380	)		(7,380	)

Balance, June 30, 2012	$	0	$	4,487		$	0		$	4,487

The components of identifiable intangible assets follow at June 30:


	2012			2011
	(Dollars in thousands)
Core Deposit Intangible:
Gross carrying amount	$	6,348		$	6,348
Accumulated amortization		(1,861	)		(663	)

	$	4,487		$	5,685

Other Intangibles:
Gross carrying amount	$	0		$	7,865
Accumulated amortization		0			(417	)

	$	0		$	7,448

Estimated annual amortization expense associated with intangible assets, years ending June 30 (dollars in thousands):


2013	$	943
2014		746
2015		589
2016		477
2017		432
Thereafter		1,300

	$	4,487

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Deposits

12 Months Ended

Jun. 30, 2012

Deposits

8.	Deposits

The composition of deposits at June 30 follows:


	2012		2011
	(Dollars in thousands)
Demand	$	45,323	$	48,215
NOW		57,477		55,458
Money market		45,024		48,695
Regular savings		32,727		34,346
Time certificates of less than $100		100,292		121,229
Other time certificates		141,345		93,175

	$	422,188	$	401,118

The scheduled maturities of time certificates at June 30, 2012 follows (dollars in thousands):


2013	$	132,569
2014		39,495
2015		32,146
2016		4,023
2017		33,099
Thereafter		305

	$	241,637

The entire disclosure for deposit liabilities including data and tables. It may include a description of the entity's deposit liabilities, the aggregate amount of time deposits (including certificates of deposit) in denominations of $100,000 or more at the balance sheet date; the aggregate amount of any demand deposits that have been reclassified as loan balances, such as overdrafts, at the balance sheet date; deposits that are received on terms other than those in the normal course of business, the amount of accrued interest on deposit liabilities; securities, mortgage loans or other financial instruments that serve as collateral for deposits; for time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years following the balance sheet date; and the weighted average interest rate for all deposit liabilities held by the entity.

Borrowings

12 Months Ended

Jun. 30, 2012

Borrowings

9.	Borrowings

Federal Home Loan Bank

A summary of fixed-rate long term advances from the Federal Home Loan Bank of Boston as of June 30, 2012 follows:


Maturity By Fiscal Year	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
	2012		2011		2012		2011		2012			2011
	(Dollars in thousands)
2013	$	15,000	$	15,000	$	15,194	$	15,450		1.46	%		1.46	%
2014		0		0		0		0		0.00			0.00
2015		12,500		12,500		12,728		12,831		2.30			2.30
2016		0		0		0		0		0.00			0.00
2017		10,000		10,000		10,382		10,468		3.48			3.48
2018		5,000		5,000		5,146		5,173		3.84			3.84

	$	42,500	$	42,500	$	43,450	$	43,922		2.47			2.47

At June 30, 2012, FHLB advances with unpaid principal of $20.0 million were subject to call provisions and may be called prior to the stated maturity.

Certain mortgage loans, free of liens, pledges and encumbrances and certain investment securities maintained at the FHLB not otherwise pledged have been pledged under a blanket agreement to secure these advances. The Company is required to own stock in the Federal Home Loan Bank of Boston in order to borrow from the FHLB.

As of June 30, 2012, the Company had a $2.1 million line of credit arrangement with the FHLB which was fully available. Also at June 30, 2012, the Company had approximately $7.2 million of additional capacity to borrow from the FHLB.

Structured Repurchase Agreements

A summary of structured repurchase agreements as of June 30, 2012 follows:


Maturity By Fiscal Year	Structured Rate Feature	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
		2012		2011		2012		2011		2012			2011
		(Dollars in thousands)
2013	n/a	$	40,000	$	40,000	$	40,302	$	41,641		1.22	%		1.22	%
2014	n/a		15,000		15,000		15,358		15,681		1.64			1.64
2015	n/a		0		0		0		0		0.00			0.00
2016	Caps; strike rate of 3.81%		10,000		10,000		10,523		10,686		2.75			2.75

		$	65,000	$	65,000	$	66,183	$	68,008		1.56			1.56

No leveraging strategies were implemented in fiscal 2012 and 2011. Structured repurchased agreements have embedded interest rate caps as summarized in the table above. The interest rate caps reduced balance sheet risk to rising interest rates. Payments will be received on the interest rate caps when three-month LIBOR exceeds the strike rate on the quarterly reset date. The amount of the payment will be equal to the difference between the strike rate and three-month LIBOR multiplied by the notional amount of the cap, to be made 90 days after the reset date. The purchased interest rate caps expire at the end of the non-call periods.

The Company is subject to margin calls on each transaction to maintain the necessary collateral in the form of cash or other mortgage-backed securities during the borrowing term.

Other Borrowings

Other borrowings of $2.2 million as of June 30, 2011 consisted of non-negotiable promissory notes payable to former sellers of the Company’s insurance agencies. Such borrowings were repaid during fiscal 2012 in connection with the sale of substantially all of the assets of NBIG.

Capital Lease Obligation

In fiscal 2006, the Company recognized a capital lease obligation for its Lewiston, Maine, headquarters. The present value of the lease payments over fifteen years exceeded 90% of the fair value of the property.

The future minimum lease payments over the remaining term of the lease and the outstanding capital lease obligation at June 30, 2012 are as follows (dollars in thousands):


2013	$	264
2014		264
2015		264
2016		303
2017		306
2018 and thereafter		944

		2,345
Less imputed interest		434

Capital lease obligation	$	1,911

Short-Term Borrowings

Short-term borrowings are sweep accounts, which are a demand account product that moves balances in excess of an agreed upon target amount from a demand deposit account into an interest-bearing account overnight. The sweep account is collateralized with a letter of credit issued by the FHLBB. The Company ceased offering securities sold under agreements to repurchase in fiscal 2011. The weighted average interest rate on short-term borrowings was 2.00% and 1.52% at June 30, 2012 and 2011, respectively.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Junior Subordinated Debentures Issued to Affiliated Trusts

Junior Subordinated Debentures Issued to Affiliated Trusts

12 Months Ended

Jun. 30, 2012

10.

Junior Subordinated Debentures Issued to Affiliated Trusts

NBN Capital Trust II and NBN Capital Trust III were created in December 2003. NBN Capital Trust IV was created in December 2004. Each such trust is a Delaware statutory trust (together, the “Private Trusts”). The exclusive purpose of the Private Trusts was (i) issuing and selling common securities and preferred securities in a private placement offering (the “Private Trust Securities”), (ii) using the proceeds of the sale of the Private Trust Securities to acquire Junior Subordinated Deferrable Interest Notes (“Junior Subordinated Debentures”); and (iii) engaging only in those other activities necessary, convenient or incidental thereto. Accordingly, the Junior Subordinated Debentures are the sole assets of each of the Private Trusts.

The following table summarizes the Junior Subordinated Debentures issued by the Company to each affiliated trust and the Private Trust Securities issued by each affiliated trust at June 30, 2012. Amounts include the junior subordinated debentures acquired by the affiliated trusts from the Company with the capital contributed by the Company in exchange for the common securities of such trust, which were $93 thousand for NEB Capital Trust II and III and $310 thousand for NEB Capital Trust IV. The trust preferred securities (the “Preferred Securities”) were sold in two separate private placement offerings. The Company has the right to redeem the Junior Subordinated Debentures, in whole or in part, on or after March 30, 2009, for NBN Capital Trust II and III, and on or after February 23, 2010, for NBN Capital Trust IV, at the redemption price specified in the associated Indenture, plus accrued but unpaid interest to the redemption date.


	Carrying Amount	Cost⁽¹⁾			Principal Balance		Contractual Rate⁽¹⁾			Maturity Date
	(Dollars in thousands)
NBN Capital Trust II	$ 1,747		7.52	%	$	3,093		3.26	%		March 30, 2034
NBN Capital Trust III	1,747		7.52			3,093		3.26			March 30, 2034
NBN Capital Trust IV	4,612		7.67			10,310		2.36			February 23, 2035

Total	$8,106				$	16,496

(1)	Excludes effects of hedging instruments

NBN Capital Trust II and III pay a variable rate based on three month LIBOR plus 2.80%, and NBN Capital Trust IV pays a variable rate based on three month LIBOR plus 1.89%. Accordingly, the Preferred Securities of the Private Trusts currently pay quarterly distributions at an annual rate of 3.26% for the stated liquidation amount of $1,000 per Preferred Security for NBN Capital Trust II and III and an annual rate of 2.36% for the stated liquidation amount of $1,000 per Preferred Security for NBN Capital Trust IV. The Company has fully and unconditionally guaranteed all of the obligations of each trust. The guaranty covers the quarterly distributions and payments on liquidation or redemption of the Private Trust Securities, but only to the extent of funds held by the trusts.

The Junior Subordinated Debentures each have variable rates indexed to three-month LIBOR. During the twelve months ended June 30, 2010, the Company purchased two interest rate caps and an interest rate swap to hedge the interest rate risk on notional amounts of $6 million and $10 million, respectively, of the Company’s Junior Subordinated Debentures. Each was a cash flow hedge to manage the risk to net interest income in a period of rising rates.

The interest rate caps hedge the junior subordinated debt resulting from the issuance of trust preferred securities by our affiliates NBN Capital Trust II and NBN Capital Trust III. The notional amount of $3 million for each interest rate cap represents the outstanding junior subordinated debt from each trust. The strike rate is 2.505%. The Company will recognize higher interest expense on the junior subordinated debt for the first 200 basis points increase in three-month LIBOR. Once the three-month LIBOR rate exceeds 2.505% on a quarterly reset date, there will be a payment by the counterparty to the Company at the following quarter end. The effective date of the purchased interest rate caps was September 30, 2009 and matures in five years.

The interest rate swap hedges the junior subordinated debt resulting from the issuance of trust preferred stock by our affiliate NBN Capital Trust IV. The notional amount of $10 million represents the outstanding junior subordinated debt from this trust. Under the terms of the interest rate swap, the Company pays a fixed rate of 4.69% quarterly for a period of five years from the effective date of February 23, 2010. The Company receives quarterly interest payments of three month LIBOR plus 1.89% over the same term.

Capital and Regulatory Matters

12 Months Ended

Jun. 30, 2012

Capital and Regulatory Matters

11.

Capital and Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The prompt corrective action regulations define specific capital categories based on an institution’s capital ratios. The capital categories, in declining order, are “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.”

As of June 30, 2012 and 2011, the most recent notification from the Company’s and the Bank’s regulator categorized the Company and the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Company and the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the institution’s regulatory designation as “well-capitalized” under the regulatory framework for prompt corrective action. Further, the Bank is subject to capital commitments with the Federal Reserve that require higher minimum capital ratios as discussed in Note 2 to the consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios as set forth in the table below. At June 30, 2012 and 2011, the Company’s and the Bank’s ratios exceeded the regulatory requirements. Management believes that the Company and the Bank met all capital adequacy requirements to which they were subject as of June 30, 2012 and 2011. The Company’s and the Bank’s regulatory capital ratios are set forth below.


	Actual					Minimum Capital Requirements					Minimum To Be Well Capitalized Under Prompt Correction Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
June 30, 2012:
Total capital to risk weighted assets:
Company	$	124,452		33.34	%	$	29,863		>8.0	%	$	N/A		N/A
Bank		75,081		20.14	%		29,824		>8.0	%		37,280		>10.0	%
Tier 1 capital to risk weighted assets:
Company		123,628		33.12	%		14,931		>4.0	%		N/A		N/A
Bank		70,414		18.89	%		14,910		>4.0	%		22,365		>6.0	%
Tier 1 capital to average assets:
Company		123,628		19.91	%		24,837		>4.0	%		N/A		N/A
Bank		70,414		11.43	%		24,642		>4.0	%		30,802		>5.0	%
June 30, 2011:
Total capital to risk weighted assets:
Company	$	61,860		18.99	%	$	26,061		>8.0	%	$	N/A		N/A
Bank		66,956		20.43	%		26,216		>8.0	%		32,770		>10.0	%
Tier 1 capital to risk weighted assets:
Company		61,424		18.86	%		13,030		>4.0	%		N/A		N/A
Bank		62,842		19.18	%		13,108		>4.0	%		19,662		>6.0	%
Tier 1 capital to average assets:
Company		61,424		10.35	%		23,736		>4.0	%		N/A		N/A
Bank		62,842		10.69	%		23,523		>4.0	%		29,404		>5.0	%

The Bank may not declare or pay a cash dividend on, or repurchase, any of its capital stock from the Parent if the effect thereof would cause the capital of the Bank to be reduced below the capital requirements imposed by the regulatory authorities or if such amount exceeds the otherwise allowable amount under FRB rules.

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=7881181&loc=d3e65071-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958574-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958573-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=7881181&loc=SL5958575-112826

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
-Paragraph 15, 16, 17
-IssueDate 2006-05-01
-Chapter 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Earnings Per Common Share

Earnings Per Common Share

12 Months Ended

Jun. 30, 2012

12.

Earnings Per Common Share

EPS is computed by dividing net income allocated to common shareholders by the weighted average common shares outstanding. The following table shows the weighted average number of shares outstanding for the periods indicated. Shares issuable relative to stock options granted have been reflected as an increase in the shares outstanding used to calculate diluted EPS, after applying the treasury stock method. The number of shares outstanding for basic and diluted EPS is presented as follows:


	Successor Company						Predecessor Company
	Year ended June 30, 2012			184 days ended June 30, 2011			181 days ended December 28, 2010

	(Dollars in thousands, except share and per share data)
Net income from continuing operations	$	1,016		$	12,507		$	1,667
Preferred stock dividends		(212	)		(107	)		(104	)
Accretion of preferred stock		(180	)		(90	)		(15	)

Net income from continuing operations available to common shareholders	$	624		$	12,310		$	1,548
Undistributed earnings of continuing operations allocated to participating securities		2			46			0

Net income from continuing operations allocated to common shareholders	$	622		$	12,264		$	1,548

Net income from discontinued operations available to common shareholders	$	1,147		$	45		$	129
Undistributed earnings of discontinued operations allocated to participating securities		3			0			0

Net income from discontinued operations allocated to common shareholders	$	1,144		$	45		$	129

Weighted average shares used in calculation of basic earnings per share		4,277,777			3,492,933			2,330,197
Incremental shares from assumed exercise of dilutive securities		13,575			55,231			24,188

Weighted average shares used in calculation of diluted earnings per share		4,291,352			3,548,164			2,354,385

Earnings per common share:
Income from continuing operations	$	0.15		$	3.51		$	0.66
Income from discontinued operations		0.26			0.01			0.06

Earnings per common share	$	0.41		$	3.52		$	0.72

Diluted earnings per common share:
Income from continuing operations	$	0.15		$	3.46		$	0.66
Income from discontinued operations		0.26			0.01			0.05

Diluted earnings per common share	$	0.41		$	3.47		$	0.71

Anti-dilutive options and warrants excluded from the calculation of dilutive earnings per share follow:


	Successor Company				Predecessor Company
	Year ended June 30, 2012		184 days ended June 30, 2011		181 days ended December 28, 2010
Stock options		796,049		162,010		0
Warrants		0		0		0

		796,049		162,010		0

Income Taxes

12 Months Ended

Jun. 30, 2012

Income Taxes

13.

Income Taxes

The current and deferred components of income tax (benefit) expense from continuing operations follows:


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended December 28, 2010

	(Dollars in thousands)
Current provision (benefit)
Federal	$	(1,033	)	$	(773	)	$	996
State		71			146			45

Total current provision (benefit)		(962	)		(627	)		1,041
Deferred provision (benefit)
Federal		1,143			544			(343	)
State		0			0			0

Total deferred provision		1,143			544			(343	)

Total tax provision (benefit)	$	181		$	(83	)	$	698

The reconciliation between the statutory federal income tax rate of 34% and the effective tax rate on income from continuing operations follows:


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended December 28, 2010

	(Dollars in thousands)
Expected income tax expense at federal tax rate	$	407		$	4,224		$	804
State tax, net of federal tax benefit		47			96			28
Non-taxable merger expense		0			1,046			32
Non-taxable bargain purchase gain		0			(5,250	)		0
Non-taxable interest income		(7	)		(32	)		(87	)
Non-taxable BOLI income		(170	)		(86	)		(87	)
Low-income housing tax credit		(118	)		(91	)		0
Other		22			10			8

Total tax provision (benefit)	$	181		$	(83	)	$	698

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30 follows:


	2012			2011
	(Dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	280		$	149
Loan basis differential		629			1,237
Time deposit basis differential		589			1,028
Derivative basis differential		146			196
Capital lease		120			110
Deferred compensation		213			78
Stock-based compensation		418			267
Unrealized loss on derivatives		130			62
Unrealized loss on available for sale securities		0			55
Interest on nonperforming loans		212			151
Limited partnerships		97			78
Other		205			124

Total deferred tax asset		3,039			3,535
Deferred tax liabilities
Goodwill and other intangible assets		(1,526	)		(1,224	)
Prepaid expenses		(268	)		(208	)
Premises and equipment		(801	)		(487	)
Borrowings basis differential		(2,127	)		(1,365	)
Unrealized gain on available for sale securities		(212	)		0
Other		(59	)		(179	)

Total deferred tax liability		(4,993	)		(3,463	)

Net deferred tax (liability) asset	$	(1,954	)	$	72

The net deferred tax liability was included in other liabilities in the accompanying balance sheet as of June 30, 2012. The net deferred tax asset was included in other assets in the accompanying balance sheet as of June 30, 2011.

At June 30, 2012, the Company has determined that a valuation allowance is not required for any of its deferred tax assets since it is more likely than not that these assets will be realized principally through the utilization of carry-back provisions to taxable income on prior years and future reversals of existing taxable temporary differences and by offsetting other future taxable income.

For federal tax purposes, the Company has a $2.0 million reserve for loan losses which remains subject to recapture. If any portion of the reserve is used for purposes other than to absorb the losses for which it was established, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve only to absorb loan losses, no provision has been made for potential liability that would result if 100% of the reserve were recaptured.

It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. As of June 30, 2012 and 2011, there were no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the 2009 tax return and forward.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Employee Benefit Plans

12 Months Ended

Jun. 30, 2012

Employee Benefit Plans

14.

Employee Benefit Plans

401(k) Plan

The Company offers a contributory 401(k) plan that is available to all full-time salaried and hourly-paid employees who have attained age 18, and completed 90 days of employment. Employees may contribute up to 100% of their base compensation, subject to IRS limitations. The Company will match 50% of each employee’s contribution up to the first 6% contributed. For the year ended June 30, 2012, the 184 days ended June 30, 2011, and the 181 days ended December 28, 2010, the Company contributed $308 thousand, $179 thousand, and $154 thousand, respectively.

Deferred Compensation

For the nonqualified deferred compensation agreements with five senior officers, the merger was deemed a change of the control and, under the terms of the agreement, the accrued retirement benefit as of November 30, 2010 was distributed. These deferred compensation agreements also terminated on the merger date. A plan to replace the previous deferred compensation agreements was finalized subsequent to the year ended June 30, 2012. The Company recognized deferred compensation expense of $159 thousand, $112 thousand, and $106 thousand for the year ended June 30, 2012, the 184 days ended June 30, 2011, and the 181 days ended December 28, 2010.

The entire disclosure for pension and other postretirement benefits.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Stock-Based Compensation

12 Months Ended

Jun. 30, 2012

Stock-Based Compensation

15.

Stock-Based Compensation

In connection with the merger, the Company adopted the Northeast Bancorp 2010 Stock Option and Incentive Plan (the “Plan”), which provides for awards of stock-based compensation (stock options, stock appreciation rights, restricted stock awards, cash-based awards and other equity-based incentive awards). The maximum number of authorized shares of stock that may be issued under the plan is 810,054 plan shares. The Company’s previous stock option plans were terminated on the merger date, and 10,500 outstanding vested options under those plans were exchanged for options to acquire shares of surviving company common stock, with terms that are substantially identical to the existing options.

A summary of the stock option activity for the year ended June 30, 2012 follows:


	Shares			Weighted Average Exercise Price
Outstanding at beginning of period		764,549		$	14.05
Granted		40,000			12.63
Exercised		0			0
Forfeited		(8,500	)		13.10

Outstanding and at end of period		796,049			13.98

Exercisable		54,175		$	14.11

The fair value of options granted was estimated on the date of grant using the Black-Scholes or lattice option-pricing model using the following weighted-average assumptions.


	Year Ended June 30, 2012		184 Days Ended June 30, 2011
	Time-based		Time-based		Performance-based
Assumptions:
Dividend yield		2.81%		2.58%		2.58%
Expected life		6 years		10 years		10 years
Expected volatility		33.86%		27.15%		27.15%
Risk-free interest rate		0.98%		0.20% -3.35%		0.20% -3.35%
Vesting share price for performance-based options		n/a		n/a	$	27.86 - $34.83
Weighted average fair value per option	$	4.39	$	3.86	$	2.48

The expected volatility is based on historical volatility. The risk-free interest rate is for periods within the expected life of the awards, and is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical and expected exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. For the performance-based stock options, the vesting is triggered if the share price exceeds the specified hurdle price for 50 of the previous 75 consecutive trading days.

The following table summarizes information about stock options outstanding at June 30, 2012.


Options Outstanding						Options Exercisable
Weighted Average Exercise Price	Number		Weighted Average Remaining Life	Aggregate Intrinsic Value		Weighted Average Exercise Price		Number		Weighted Average Remaining Life	Aggregate Intrinsic Value
$12.63		40,000	9.6 years	$	0	$	12.63		0	9.6 years	$	0
13.93		594,039	8.5 years		0		13.93		37,975	8.5 years		0
14.52		162,010	8.5 years		0		14.52		16,200	8.5 years		0

13.98		796,049	8.6 years		0		14.11		54,175	8.5 years		0

At June 30, 2012, all unvested stock options outstanding are expected to vest.

On December 29, 2010, the Company granted a restricted stock award of 13,026 shares of the Company’s common stock to a senior executive of the Company. The holder of this award participates fully in the rewards of stock ownership of the Company, including voting rights and dividend rights. This award was determined to have a fair value of $13.93 per share based on the average price at which the Company’s common stock traded on the date of grant. Forty percent of the award will vest on December 29, 2012, and the remainder will vest in three equal annual installments commencing on December 29, 2013. At June 30, 2012, no restricted common shares were vested. All restricted common shares are expected to vest.

At June 30, 2012, the Company has accrued a liability of $48 thousand representing the maximum cash payment for performance-based stock appreciation rights (“SARs”) granted in fiscal 2011. The SARs expire in December of 2020.

Stock-based compensation totaled $445 thousand for the year ended June 30, 2012, $210 thousand for the 184 days ended June 30, 2011, and $0 for the 181 days ended December 28, 2010. The estimated amount and timing of future pre-tax stock-based compensation expense to be recognized are as follows.


	Fiscal Years Ending June 30:
	2013		2014		2015		2016		2017		Total
	(Dollars in thousands)
Stock options	$	419	$	405	$	386	$	256	$	69	$	1,535
Restricted stock		36		36		36		18		0		126

	$	455	$	441	$	422	$	274	$	69	$	1,661

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

12 Months Ended

Jun. 30, 2012

16.

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Financial instruments with contract amounts which represent credit risk are as follows as of June 30:


	2012		2011
	(Dollars in thousands)
Commitments to originate loans:
Residential real estate mortgages	$	10,279	$	10,646
Construction loans		106		568
Consumer		25		0
Commercial real estate mortgages		361		375
Commercial business loans		1,145		27

	$	11,916	$	11,616


Unused lines of credit	$	36,276	$	42,385
Standby letters of credit		602		1,233
Unadvanced portions of construction loans		162		431

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counter party. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. The Company has recorded an allowance for possible losses on commitments and unfunded loans totaling $6 thousand and $11 thousand at June 30, 2012 and 2011, respectively.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are issued to support private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of June 30, 2012 and 2011, the maximum potential amount of the Company’s obligation was $602 thousand and $1.2 million, respectively, for financial and standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit.

Lease Obligations

The Company leases certain properties and equipment used in operations under terms of operating leases that include renewal options. Rental expense under leases totaled $817 thousand for the year ended June 30, 2012, $438 thousand for the 184 days ending June 30, 2011, and $272 thousand for the 181 days ended December 28, 2010, respectively.

Approximate future minimum lease payments over the remaining terms of leases at June 30, 2012 are as follows (dollars in thousands):


2013	$	738
2014		986
2015		1,095
2016		1,053
2017		938
2018 and thereafter		5,210

	$	10,020

During fiscal 2012, the Company executed a lease for 17 thousand square feet of office space in Boston, Massachusetts. The lease commences in December of 2012 and continues for a period of 10 years. The approximate future minimum lease payments associated with the lease are included in the table above. This new office space will replace the Company’s existing Boston office, the lease for which expires on December 31, 2012.

Legal Proceedings

The Company and its subsidiary are parties to litigation and claims arising in the normal course of business. Management believes that the liabilities, if any, arising from such litigation and claims will not be material to the Company’s consolidated financial position or results of operations.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Condensed Parent Information

Condensed Parent Information

12 Months Ended

Jun. 30, 2012

17.

Condensed Parent Information

Condensed financial information for Northeast Bancorp follows:


	June 30, 2012		June 30, 2011
	(Dollars in thousands)
Balance Sheets
Assets:
Cash	$	54,996	$	3,538
Investment in subsidiary		72,849		70,539
Investment in common securities of affiliated trusts		496		496
Other assets		2,047		1,350

Total assets	$	130,388	$	75,923

Liabilities and Stockholders’ Equity:
Junior subordinated debentures issued to affiliated trusts	$	8,106	$	7,957
Other liabilities		3,143		3,012

Total liabilities		11,249		10,969
Stockholders’ equity		119,139		64,954

Total liabilities and stockholders’ equity	$	130,388	$	75,923


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended Dec. 28, 2010

	(Dollars in thousands)
Statements of Income
Income:
Dividends from banking subsidiary	$	1,500		$	0		$	1,255
Bargain purchase gain		0			16,620			0
Other income		26			21			18

Total income		1,526			16,641			1,273

Expenses:
Interest on Junior Subordinated Debentures paid to affiliated trusts		751			365			340
General and administrative expenses		993			3,772			209

Total expenses		1,744			4,137			549

(Loss) income before income tax expense and equity in undistributed net income of subsidiary		(218	)		12,504			724
Income tax benefit		589			271			151

Income before equity in undistributed net income of subsidiary		371			12,775			875
Equity in undistributed net income of subsidiary		1,792			(223	)		921

Net income	$	2,163		$	12,552		$	1,796

Net income available to common stockholders	$	1,771		$	12,355		$	1,677


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended Dec. 28, 2010

	(Dollars in thousands)
Statements of Cash Flow
Cash flows from operating activities:
Net income	$	2,163		$	12,552		$	1,796
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization		0			19			1
Amortization of fair value adjustment for borrowings		149			68			0
Stock-based compensation		445			210			0
Undistributed (earnings) loss of subsidiary		(1,792	)		223			(921	)
Net gain on available-for-sale securities		0			(11	)		(5	)
Bargain purchase gain		0			(16,620	)		0
Increase in other assets and liabilities		(700	)		(756	)		(273	)

Net cash provided by (used in) operating activities		265			(4,315	)		598


Cash flows from investing activities:
Increase in investment of bank subsidiary		0			(9,150	)		0
Purchases of available-for-sale securities		0			0			(1	)
Proceeds from sales of available-for-sale securities		0			576			173

Net cash (used in) provided by investing activities		0			(8,574	)		172


Cash flows from financing activities:
Proceeds from issuance of common stock		52,667			16,201			62
Dividends paid to stockholders		(1,474	)		(736	)		(525	)

Net cash provided by (used in) financing activities		51,193			15,465			(463	)


Net increase in cash		51,458			2,576			307
Cash, beginning of period		3,538			962			655

Cash, end of period	$	54,996		$	3,538		$	962

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

Other Comprehensive Income

Other Comprehensive Income

12 Months Ended

Jun. 30, 2012

18.

Other Comprehensive Income

The components of other comprehensive income follow:


Successor Company	Year Ended June 30, 2012									184 Days Ended June 30, 2011
	Pre-tax			Tax Expense			After-tax			Pre-tax			Tax Expense			After-tax
	Amount			(Benefit)			Amount			Amount			(Benefit)			Amount
	(Dollars in thousands)									(Dollars in thousands)
Unrealized holding gains on available-for-sale securities	$	1,896		$	645		$	1,251		$	1,039		$	353		$	686
Less: Realized gains		1,111			378			733			1,200			408			792

Unrealized gains (losses) on available-for-sale securities, net		785			267			518			(161	)		(55	)		(106	)

Unrealized losses on cash flow hedges		(122	)		(41	)		(81	)		(137	)		(46	)		(91	)
Less: Realized gains		80			27			53			44			15			29

Unrealized losses on cash flow hedges, net		(202	)		(68	)		(134	)		(181	)		(61	)		(120	)

Total other comprehensive income (loss)	$	583		$	199		$	384		$	(342	)	$	(116	)	$	(226	)


Predecessor Company	181 Days Ended December 28, 2010
	Pre-tax			Tax Expense			After-tax
	Amount			(Benefit)			Amount
	(Dollars in thousands)
Unrealized holding losses on available-for-sale securities	$	(2,806	)	$	(954	)	$	(1,852	)
Less: Realized gains on available-for-sale securities		17			6			11

Unrealized losses on available-for-sale securities, net		(2,823	)		(960	)		(1,863	)
Unrealized losses on cash flow hedges		(16	)		(6	)		(10	)

Total other comprehensive loss	$	(2,839	)	$	(966	)	$	(1,873	)

Accumulated other comprehensive income (loss) is comprised of the following components:


	June 30, 2012			June 30, 2011
	(Dollars in thousands)
Unrealized gain (loss) on available-for-sale securities	$	624		$	(161	)
Tax effect		(212	)		55

Net-of-tax amount		412			(106	)

Unrealized loss on cash flow hedges		(384	)		(182	)
Tax effect		130			62

Net-of-tax amount		(254	)		(120	)

Accumulated other comprehensive income (loss)	$	158		$	(226	)

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e716-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e640-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14-26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Fair Value Measurements

12 Months Ended

Jun. 30, 2012

Fair Value Measurements

19.

Fair Value Measurements

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. If there has been a significant decrease in the volume and level of activity for the asset or liability, regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. The Company uses prices and inputs that are current as of the measurement date, including in periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another.

ASC 820 defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Valuation Techniques—There have been no changes in the valuation techniques used during the current period.

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

Available-for-sale securities—Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Examples of such instruments include publicly-traded common and preferred stocks. If quoted prices are not available, then fair values are estimated by using pricing models (i.e., matrix pricing) and market interest rates and credit assumptions or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency and government sponsored agency mortgage-backed securities, as well as certain preferred and trust preferred stocks. Level 3 securities are securities for which significant unobservable inputs are utilized.

Derivative financial instruments—The valuation of the Company’s interest rate swaps and caps are determined using widely accepted valuation techniques including discounted cash flow analyses on the expected cash flows of derivatives. These analyses reflect the contractual terms of the derivatives, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. Unobservable inputs, such as credit valuation adjustments are insignificant to the overall valuation of the Company’s derivative financial instruments. Accordingly, the Company has determined that its interest rate derivatives fall within Level 2 of the fair value hierarchy.

The fair value of derivative loan commitments and forward loan sale agreements are estimated using the anticipated market price based on pricing indications provided from syndicate banks. These commitments and agreements are categorized as Level 2. The fair value of such instruments was nominal at each date presented.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:

Impaired Loans—Valuations of impaired loans are determined by reviewing collateral values or through discounted cash flow analyses using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are developed using available market information and historical information. Certain inputs used in appraisals and cash flow analyses are not always observable, and therefore impaired loans are generally categorized as Level 3 within the fair value hierarchy.

Repossessed collateral—The fair values of other real estate owned and other repossessed collateral are estimated based upon appraised values less estimated costs to sell. Certain inputs used in appraisals are not always observable, and therefore repossessed collateral may be categorized as Level 3 within the fair value hierarchy. When inputs used in appraisals are primarily observable, they are classified as Level 2.

Fair Value of Other Financial Instruments:

Cash and cash equivalents—The fair value of cash, due from banks, interest bearing deposits and FHLB overnight deposits approximates their relative book values, as these financial instruments have short maturities.

FHLB and Federal Reserve stock—The carrying value of FHLB stock and Federal Reserve stock approximates fair value based on redemption provisions of the FHLB and the Federal Reserve.

Loans—Fair values are estimated for portfolios of loans with similar financial characteristics. The fair value of performing loans is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. The estimates of maturity are based on the Company’s historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic conditions, lending conditions and the effects of estimated prepayments.

Loans held for sale—The fair value of loans held-for-sale is estimated based on bid quotations received from loan dealers.

Interest receivable—The fair value of this financial instrument approximates the book value as this financial instrument has a short maturity. It is the Company’s policy to stop accruing interest on loans past due by more than ninety days. Therefore, this financial instrument has been adjusted for estimated credit loss.

Deposits—The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, NOW accounts and money market accounts, is equal to the amount payable on demand. The fair values of time deposits are based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. If that value were considered, the fair value of the Company’s net assets could increase.

Borrowings—The fair value of the Company’s borrowings with the FHLB is estimated by discounting the cash flows through maturity or the next repricing date based on current rates available to the Company for borrowings with similar maturities. The fair value of the Company’s short-term borrowings, capital lease obligations, structured repurchase agreements and other borrowings is estimated by discounting the cash flows through maturity based on current rates available to the Company for borrowings with similar maturities.

Off-Balance Sheet Credit-Related Instruments—Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of such instruments was nominal at each date presented.

Assets and liabilities measured at fair value on a recurring basis are summarized below.


	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale
U.S. Government agency securities	$	45,808	$	0	$	45,808	$	0
Agency mortgage-backed securities		87,456		0		87,456		0
Other assets—interest rate caps		1		0		1		0
Liabilities
Other liabilities—interest rate swap	$	580	$	0	$	580	$	0


	June 30, 2011
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale
U.S. Government agency securities	$	48,737	$	0	$	48,737	$	0
Agency mortgage-backed securities		99,558		0		99,558		0
Equity securities		216		216		0		0
Trust preferred securities		451		451		0		0
Other assets—interest rate caps		46		0		46		0
Liabilities
Other liabilities—interest rate swap	$	503	$	0	$	0	$	503

Assets measured at fair value on a nonrecurring basis are summarized below.


	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Impaired loans	$	1,103	$	0	$	0	$	1,103
Repossessed collateral		834		0		0		834


	June 30, 2011
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Impaired loans	$	1,426	$	0	$	0	$	1,426
Repossessed collateral		690		0		0		690
Premises		361		0		0		361

The following table presents the estimated fair value of the Company’s financial instruments.


	Carrying Amount		Fair Value Measurements at June 30, 2012
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	128,274	$	128,274	$	128,274	$	0	$	0
Available-for-sale securities		133,264		133,264		0		133,264		0
Regulatory stock		5,473		5,473		0		5,473		0
Loans held for sale		9,882		9,896		0		9,896		0
Loans, net		355,430		374,062		0		0		374,062
Accrued interest receivable		1,840		1,840		0		1,840		0
Interest rate caps		1		1		0		1		0

Financial liabilities:
Deposits		422,188		425,782		0		0		425,782
FHLB advances		43,450		45,747		0		45,747		0
Structured repurchase agreements		66,183		67,314		0		67,314		0
Short-term borrowings		1,209		1,209		0		1,209		0
Capital lease obligation		1,911		2,202		0		2,202		0
Subordinated debentures		8,106		8,597		0		0		8,597
Interest rate swaps		580		580		0		580		0


	Carrying Amount		Fair Value Measurements at June 30, 2011
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	83,931	$	83,931	$	83,931	$	0	$	0
Available-for-sale securities		148,962		148,962		0		148,962		0
Regulatory stock		5,760		5,760		0		5,760		0
Loans held for sale		5,176		5,209		0		5,209		0
Loans, net		309,476		316,361		0		0		316,361
Accrued interest receivable		1,244		1,244		0		1,244		0
Interest rate caps		46		46		0		46		0

Financial liabilities:
Deposits		401,118		403,481		0		0		403,481
FHLB advances		43,922		45,465		0		45,465		0
Structured repurchase agreements		68,008		69,364		0		69,364		0
Other borrowings		2,229		2,280		0		2,280		0
Short-term borrowings		2,515		2,515		0		2,515		0
Capital lease obligation		2,075		2,306		0		2,306		0
Subordinated debentures		7,957		7,979		0		0		7,979
Interest rate swaps		503		503		0		0		503

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Troubled Asset Relief Capital Purchase Program

Derivatives

12 Months Ended

Jun. 30, 2012

Derivatives

20.

Derivatives

The Company has stand alone derivative financial instruments in the form of interest rate caps that derive their value from a fee paid and are adjusted to fair value based on index and strike rate, and a swap agreement that derives its value from the underlying interest rate. These transactions involve both credit and market risk. The notional amounts are amounts on which calculations, payments and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such differences, which represent the fair value of the derivative instruments, are reflected on the Company’s balance sheet as derivative assets and derivative liabilities.

The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to these agreements. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail their obligations. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s Board of Directors. The Company deals only with primary dealers. The Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty.

Risk Management Policies—Hedging Instruments

The Company evaluates the effectiveness of entering into any derivative instrument agreement by measuring the cost of such an agreement in relation to the reduction in net income volatility within an assumed range of interest rates.

Interest Rate Risk Management—Cash Flow Hedging Instruments

The Company uses long-term variable rate debt as a source of funds for use in the Company’s lending and investment activities and other general business purposes. These debt obligations expose the Company to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense decreases. Management believes it is prudent to limit the variability of a portion of its interest payments and, therefore, generally hedges a portion of its variable-rate interest payments. To meet this objective, management entered into interest rate caps whereby the Company receives variable interest payments above a specified interest rate and swap agreements whereby the Company receives variable interest rate payments and makes fixed interest rate payments during the contract period.

The Company holds two interest rate caps that expire on September 30, 2014. The swap agreement provides for the Company to receive payments at a variable rate determined by a specified index (three month LIBOR) in exchange for making payments at a fixed rate.

Information pertaining to outstanding interest rate caps and swap agreements used to hedge variable rate debt is as follows.

During the year ended June 30, 2012, no interest rate cap or swap agreements were terminated prior to maturity. Changes in the fair value of interest rate caps and swaps designated as hedging instruments of the variability of cash flows associated with long-term debt are reported in other comprehensive income. These amounts subsequently are reclassified into interest expense as a yield adjustment in the same period in which the related interest on the long-term debt affects earnings. Risk management results for the year ended June 30, 2012 related to the balance sheet hedging of long-term debt indicates that the hedges were effective. The Company recorded income of $80 thousand and $44 thousand related to hedge ineffectiveness during fiscal 2012 and the 184 days ended June 30, 2011, respectively. The Company expects approximately $80 thousand to be reclassified as an offset to interest expense from OCI in the next twelve months.


	June 30, 2012						June 30, 2011
	Interest Rate Caps			Interest Rate Swap			Interest Rate Caps			Interest Rate Swap
	(Dollars in thousands)
Notional amount	$	6,000		$	10,000		$	6,000		$	10,000
Weighted average pay rate					4.69	%					4.69	%
Weighted average receive rate					2.36	%					2.23	%
Strike rate based on three month LIBOR		2.51	%					2.51	%
Weighted average maturity in years		2.25			2.67			3.25			3.67
Unrealized loss	$	69		$	315		$	45		$	137

The following sets forth the fair values and location of derivatives designated as hedging instruments (dollars in thousands).


June 30, 2012	Asset Derivatives
	Balance Sheet Location		Fair Value
Interest rate caps		Other assets	$	1

	Liability Derivatives
	Balance Sheet Location		Fair Value
Interest rate swap		Other liabilities	$	580


June 30, 2011	Asset Derivatives
	Balance Sheet Location		Fair Value
Interest rate caps		Other assets	$	46

	Liability Derivatives
	Balance Sheet Location		Fair Value
Interest rate swap		Other liabilities	$	503

Troubled Asset Relief Capital Purchase Program

12 Months Ended

Jun. 30, 2012

21.

Troubled Asset Relief Capital Purchase Program

On December 12, 2008, in connection with the Company’s participation in the federal government’s TARP Capital Purchase Program, the Company issued 4,227 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, liquidation preference $1,000 per share (the “Series A Preferred Stock”), and a warrant to purchase 67,958 shares of the Company’s common stock (the “TARP Warrant”) to the Treasury for aggregate proceeds of $4.2 million.

The Series A Preferred Stock qualifies as Tier 1 capital and pays cumulative dividends at a rate of 5% per annum until February 14, 2014. Thereafter, the dividend rate will increase to 9% per annum. On and after February 15, 2012, the Company may, at its option, redeem shares of Series A Preferred Stock, in whole or in part, at any time and from time to time, for cash at a per share amount equal to the sum of the liquidation preference per share plus any accrued and unpaid dividends. Prior to February 15, 2012, the Series A Preferred Stock may have been redeemed, in whole or in part, at the option of the Company, subject to consultation with the Company’s primary federal banking regulator, provided that any partial redemption was for at least 25% of the issue price of the Series A Preferred Stock. Any redemption of a share of Series A Preferred Stock would be at one hundred percent (100%) of its issue price, plus any accrued and unpaid dividends and the Series A Preferred Stock may be redeemed without regard to whether the Company has replaced such funds from any other source, or to any waiting period.

The TARP Warrant is exercisable at $9.33 per share at any time on or before December 12, 2018. The number of shares of the Company’s common stock issuable upon exercise of the TARP Warrant and the exercise price per share will be adjusted if specific events occur. Treasury has agreed not to exercise voting power with respect to any shares of common stock issued upon exercise of the TARP Warrant. Neither the Series A Preferred Stock nor the TARP Warrant will be subject to any contractual restrictions on transfer, except that the Treasury may not transfer a portion of the Warrant with respect to, or exercise the TARP Warrant for, more than one-half of the shares of common stock underlying the TARP Warrant prior to the date on which the Company has received aggregate gross proceeds of not less than $4.2 million from one or more qualified equity offerings.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2012

Business

Business

Business Combination Accounting

Business Combination Accounting

Principles of Consolidation

Principles of Consolidation

Reclassifications

Reclassifications

Certain previously reported amounts have been reclassified to conform to the current year’s presentation.

Use of Estimates

Use of Estimates

Concentrations of Credit Risk

Concentrations of Credit Risk

Cash and Cash Equivalents

Cash and Cash Equivalents

Investment Securities

Investment Securities

Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and are recorded in non-interest income.

Federal Home Loan Bank and Federal Reserve Bank Stock

Federal Home Loan Bank and Federal Reserve Bank Stock

Loans Held for Sale and Loan Servicing

Loans Held for Sale and Loan Servicing

Loans

Loans

Allowance for Loan Losses

Allowance for Loan Losses

•

Levels and trends in delinquencies

•

Trends in the volume and nature of loans

•

Trends in credit terms and policies, including underwriting standards, procedures and practices, and the experience and ability of lending management and staff

•

Trends in portfolio concentration

•

National and local economic trends and conditions.

•

Effects of changes or trends in internal risk ratings

•

Other effects resulting from trends in the valuation of underlying collateral

There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during fiscal year 2012.

Premises and Equipment

Premises and Equipment

Intangible Assets

Intangible Assets

Repossessed Collateral

Repossessed Collateral

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Bank Owned Life Insurance

Bank Owned Life Insurance

Income Taxes

Income Taxes

Advertising Expense

Advertising Expense

Advertising costs are expensed as incurred.

Stock-Based Compensation

Stock-Based Compensation

Discontinued Operations

Discontinued Operations

Comprehensive Income

Comprehensive Income

Earnings Per Share

Earnings Per Share

Derivatives

Derivatives

Transfer of Financial Assets

Transfer of Financial Assets

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Merger (Tables)

12 Months Ended

Jun. 30, 2012

Assets Acquired and Liabilities Assumed Recorded at Fair Value

transaction date. In connection with the merger, the consideration paid, and the assets acquired and liabilities assumed recorded at fair value on the date of acquisition, are summarized below (dollars in thousands).


Consideration:
FHB investors’ purchase of 937,933 existing Northeast shares, at $13.93 per Surviving Company share	$	13,065
Existing Northeast shareholders’ retention of shares in Surviving Company, 1,393,399 shares at $13.93 per share		19,410

Total consideration:	$	32,475

Net Assets Acquired:
Assets:
Cash and short-term investments	$	58,598
Available-for-sale securities		153,315
Loans held-for-sale		7,864
Loans		361,741
Premises and equipment		7,909
Bank-owned life insurance		13,536
Core deposit intangible		6,348
Other identifiable intangibles		7,865
Other assets		14,409

Total Assets Acquired		631,585

Liabilities and Preferred Equity:
Deposits		378,523
Overnight borrowings		63,043
Term borrowings		125,627
Jr. subordinated debentures issued to affiliated trusts		7,889
Other liabilities		4,492
Preferred stock		4,095

Total Liabilities and Preferred Equity Assumed		583,669

Net Identifiable Assets Acquired	$	47,916

Bargain purchase gain recorded in income	$	15,441

Available-for-sale Securities (Tables)

12 Months Ended

Jun. 30, 2012

Securities Available-for-Sale at Amortized Cost and Approximate Fair Values

Securities available-for-sale at amortized cost and approximate fair values are summarized below:


	June 30, 2012				June 30, 2011
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
U.S. Government agency securities	$	45,824	$	45,808	$	48,827	$	48,737
Agency mortgage-backed securities		86,816		87,456		99,637		99,558
Equity securities		0		0		193		216
Trust preferred securities		0		0		466		451

	$	132,640	$	133,264	$	149,123	$	148,962

Gross Unrealized Gains and Unrealized Losses on Available-for-Sale Securities

The gross unrealized gains and unrealized losses on available-for-sale securities are as follows:


	June 30, 2012				June 30, 2011
	Gross Unrealized Gains		Gross Unrealized Losses		Gross Unrealized Gains		Gross Unrealized Losses
	(Dollars in thousands)
U.S. Government agency securities	$	5	$	21	$	7	$	97
Agency mortgage-backed securities		640		0		212		291
Equity securities		0		0		23		0
Trust preferred securities		0		0		8		23

	$	645	$	21	$	250	$	411

Realized Gains and Losses on Available-for-Sale Securities

The following table summarizes realized gains and losses on available-for-sale securities.


Successor Company	Year Ended June 30, 2012		184 Days Ended June 30, 2011
	(Dollars in thousands)
Gross realized gains	$	1,178	$	1,427
Gross realized losses		67		227

Net security gains	$	1,111	$	1,200


Predecessor Company	181 Days Ended December 28, 2010
	(Dollars in thousands)
Gross realized gains	$	17
Gross realized losses		0

Net security gains	$	17

Gross Unrealized Losses and Fair Values Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position


	June 30, 2012
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Government agency securities	$	36,585	$	21	$	0	$	0	$	36,585	$	21
Agency mortgage-backed securities		0		0		0		0		0		0

	$	36,585	$	21	$	0	$	0	$	36,585	$	21


	June 30, 2011
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Government agency securities	$	46,130	$	97	$	0	$	0	$	46,130	$	97
Agency mortgage-backed securities		51,367		291		0		0		51,367		291
Trust preferred securities		174		23		0		0		174		23

	$	97,671	$	411	$	0	$	0	$	97,671	$	411

Amortized Cost and Fair Values of Available-for-Sale Debt Securities by Contractual Maturity

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Fair Value
	(Dollars in thousands)
Due after one year through five years	$	45,824	$	45,808
Due after five years through ten years		0		0
Due after ten years		0		0

		45,824		45,808
Mortgage-backed securities		86,816		87,456

	$	132,640	$	133,264

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Composition of Company Loan Portfolio

Loans, Allowance for Loan Losses and Credit Quality (Tables)

12 Months Ended

Jun. 30, 2012

The Company’s purchased loan portfolio consists of loans acquired after the merger through the LASG.


	June 30, 2012						June 30, 2011
	Originated		Purchased		Total		Originated		Purchased		Total
	(Dollars in thousands)
Residential real estate	$	90,944	$	3,931	$	94,875	$	95,417	$	0	$	95,417
Home equity		42,696		0		42,696		50,060		0		50,060
Commercial real estate		100,196		80,539		180,735		117,124		637		117,761
Construction		1,187		0		1,187		2,015		0		2,015
Commercial business		19,612		0		19,612		22,225		0		22,225
Consumer		17,149		0		17,149		22,435		0		22,435

Total loans	$	271,784	$	84,470	$	356,254	$	309,276	$	637	$	309,913

Summary of Loans Acquired through Merger

The following table presents a summary of credit impaired loans acquired through the merger on December 29, 2010.


	Residential Real Estate and Consumer			Commercial Real Estate and Commercial Business			Total
	(Dollars in thousands)
Contractually required payments receivable	$	3,677		$	6,066		$	9,743
Nonaccretable difference		(938	)		(2,410	)		(3,348	)

Cash flows expected to be collected		2,739			3,656			6,395
Accretable yield		(1,204	)		(486	)		(1,690	)

Fair value of PCI loans acquired	$	1,535		$	3,170		$	4,705

Summary of Purchased Credit

The following tables present a summary of purchased credit-impaired loans acquired by the LASG (dollars in thousands):


Loans Acquired During the Year Ended June 30, 2012:
Contractually required payments receivable	$	35,455
Nonaccretable difference		(8,765	)

Cash flows expected to be collected		26,690
Accretable yield		(8,589	)

Fair value of PCI loans acquired	$	18,101

Activity in Accretable Yield During the Year Ended June 30, 2012:
Beginning balance	$	0
Accretion		(1,912	)
Acquisitions		8,589
Reclassifications from nonaccretable difference, net		1,156
Disposals and transfers		(664	)

Ending balance	$	7,169

Unpaid principal balance at June 30, 2012	$	21,359

Carrying amount at June 30, 2012	$	13,866

Allowance for Loan Losses by Portfolio Segment

Activity in the allowance for loan losses follows:


Successor Company
	Year ended June 30, 2012
	Residential Real Estate			Commercial Real Estate			Commercial Business			Consumer			Purchased⁽¹⁾		Total
	(Dollars in thousands)
Beginning balance	$	34		$	147		$	238		$	18		$	0	$	437
Provision		425			(28	)		27			522			0		946
Recoveries		3			0			44			37			0		84
Charge-offs		(248	)		(26	)		(17	)		(352	)		0		(643	)

Ending balance	$	214		$	93		$	292		$	225		$	0	$	824

(1)	Purchased loans included above include commercial real estate, commercial business, and residential real estate loans. The Company separately analyzes all loans purchased by the LASG from other segments in determining the allowance for loan losses under ASC 310-30.


	Successor Company			Predecessor Company
	184 days ended June 30, 2011			181 days ended December 28, 2010
	(Dollars in thousands)
Beginning balance	$	0		$	5,806
Provision		707			912
Recoveries		36			108
Charge-offs		(306	)		(859	)

Ending balance	$	437		$	5,967

Allowance for Loan Losses by Portfolio Segment and Impairment Methodology

The following table sets forth information regarding the allowance for loan losses by portfolio segment and impairment methodology.


	June 30, 2012
	Residential Real Estate		Commercial Real Estate		Commercial Business		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	3	$	41	$	284	$	0	$	328
Collectively evaluated		211		52		8		225		496
Purchased ⁽¹⁾		0		0		0		0		0

Total	$	214	$	93	$	292	$	225	$	824

Loans:
Individually evaluated	$	399	$	3,112	$	1,127	$	0	$	4,638
Collectively evaluated		133,241		99,326		18,485		17,149		268,201
Purchased ^(1) (2)		3,931		79,484		0		0		83,415

Total	$	137,571	$	181,922	$	19,612	$	17,149	$	356,254


	June 30, 2011
	Residential Real Estate		Commercial Real Estate		Commercial Business		Consumer		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	0	$	119	$	196	$	0	$	315
Collectively evaluated		34		28		42		18		122
Purchased⁽¹⁾		0		0		0		0		0

Total	$	34	$	147	$	238	$	18	$	437

Loans:
Individually evaluated	$	0	$	1,221	$	1,922	$	0	$	3,143
Collectively evaluated		146,585		116,810		20,303		22,435		306,133
Purchased⁽¹⁾		0		637		0		0		637

Total	$	146,585	$	118,668	$	22,225	$	22,435	$	309,913

(1)	Loans in this category are evaluated for impaired under ASC 310-30. Post acquisition, the effect of a decline in expected cash flows is recorded through the allowance for loan losses as a specific allocation.

(2)	At June 30, 2012, one purchased loan totaling $1.1 million was nonperforming and individually evaluated under ASC 310-10.

Impaired Loans

Loans accounted for under ASC 310-30 that have performed based on cash flow and accretable yield expectations determined at date of acquisition are not considered impaired assets and have been excluded from the tables below.


	At June 30, 2012						For the Year Ended June 30, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Impaired loans without a valuation allowance:
Originated:
Residential real estate	$	293	$	483	$	0	$	235	$	21
Consumer		0		0		0		0		0
Commercial real estate		1,482		1,738		0		1,119		99
Construction		0		0		0		0		0
Commercial business		377		692		0		520		15
Purchased:
Commercial real estate		1,055		1,462		0		211		0
Residential real estate		0		0		0		0		0

Total		3,207		4,375		0		2,085		135
Impaired loans with a valuation allowance:
Originated:
Residential real estate		106		103		3		73		0
Consumer		0		0		0		0		0
Commercial real estate		575		565		41		647		27
Construction		0		0		0		0		0
Commercial business		750		817		284		732		0
Purchased:
Commercial real estate		0		0		0		0		0
Residential real estate		0		0		0		0		0

Total		1,431		1,485		328		1,452		27

Total impaired loans	$	4,638	$	5,860	$	328	$	3,537	$	162


	At June 30, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
Impaired loans without a valuation allowance:
Commercial real estate	$	348	$	348	$	0
Commercial business		1,054		1,054		0

Total		1,402		1,402		0
Impaired loans with a valuation allowance:
Commercial real estate		873		873		119
Commercial business		868		868		196

Total		1,741		1,741		315

Total impaired loans	$	3,143	$	3,143	$	315

Average Intrest and Investment


	Successor Company 184 Days Ended June 30, 2011				Predecessor Company 181 Days Ended December 28, 2010
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized

	(Dollars in thousands)
Residential real estate	$	21	$	1	$	330	$	2
Commercial real estate		1,736		60		3,366		76
Commercial business		1,041		29		1,738		20

Total	$	2,798	$	90	$	5,434	$	98

Past Due and Non-Accrual Loans

The following is a summary of past due and non-accrual loans:


	June 30, 2012
	30-59 Days		60-89 Days		Past Due 90 Days or More- Still Accruing		Past Due 90 Days or More- Nonaccrual		Total Past Due		Total Current		Total Loans		Non- Accrual Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	261	$	183	$	0	$	2,907	$	3,351	$	87,593	$	90,944	$	3,090
Home equity		16		160		0		136		312		42,384		42,696		220
Commercial real estate		0		208		0		417		625		99,571		100,196		417
Construction		0		0		0		0		0		1,187		1,187		0
Commercial business		0		107		0		901		1,008		18,604		19,612		1,008
Consumer		259		137		0		206		602		16,547		17,149		324

Total originated portfolio		536		795		0		4,567		5,898		265,886		271,784		5,059
Purchased portfolio:
Residential real estate		0		0		0		0		0		3,931		3,931		0
Commercial real estate		0		0		0		1,055		1,055		79,484		80,539		1,055

Total purchased portfolio		0		0		0		1,055		1,055		83,415		84,470		1,055

Total loans	$	536	$	795	$	0	$	5,622	$	6,953	$	349,301	$	356,254	$	6,114


	June 30, 2011
	30-59 Days		60-89 Days		Past Due 90 Days or More- Still Accruing		Past Due 90 Days or More- Nonaccrual		Total Past Due		Total Current		Total Loans		Non- Accrual Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	257	$	1,021	$	0	$	1,779	$	3,057	$	92,360	$	95,417	$	2,195
Home equity		117		0		0		89		206		49,854		50,060		205
Commercial real estate		0		492		0		934		1,426		115,698		117,124		3,601
Construction		0		0		0		121		121		1,894		2,015		121
Commercial business		4		75		751		416		1,246		20,979		22,225		559
Consumer		566		338		0		508		1,412		21,023		22,435		527

Total originated portfolio		944		1,926		751		3,847		7,468		301,808		309,276		7,208
Purchased portfolio:
Commercial real estate		0		0		0		0		0		637		637		0

Total purchased portfolio		0		0		0		0		0		637		637		0

Total loans	$	944	$	1,926	$	751	$	3,847	$	7,468	$	302,445	$	309,913	$	7,208

Loans Modified in Troubled Debt Restructurings

subsequent to the modifications occurring. All concessions given during the period consisted of either rate reductions or maturity extensions, or combinations thereof. There was no forgiveness of principal related to loans modified in a TDR during the period.


	Number of Contracts		Recorded Investment Pre-Modification		Recorded Investment Post-Modification
	(Dollars in thousands)
Originated portfolio:
Residential real estate		1	$	139	$	139
Home equity		1		20		20
Commercial real estate		1		184		184
Construction		0		0		0
Commercial business		0		0		0
Consumer		0		0		0

Total originated portfolio		3		343		343
Purchased portfolio:
Residential real estate		0		0		0
Commercial real estate		0		0		0

Total purchased portfolio		0		0		0

Total		3	$	343	$	343

Troubled Debt Restructuring During the Period

The following table shows the Company’s total TDRs as of the dates indicated.


	June 30, 2012						June 30, 2011
	On Accrual Status		On Nonaccrual Status		Total		On Accrual Status		On Nonaccrual Status		Total
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	92	$	139	$	231	$	93	$	0	$	93
Home equity		20		0		20		0		0		0
Commercial real estate		1,053		0		1,053		0		859		859
Construction		0		0		0		0		0		0
Commercial business		0		0		0		0		0		0
Consumer		0		0		0		0		0		0

Total originated portfolio		1,165		139		1,304		93		859		952
Purchased portfolio:
Residential real estate		0		0		0		0		0		0
Commercial real estate		0		0		0		0		0		0

Total purchased portfolio		0		0		0		0		0		0

Total	$	1,165	$	139	$	1,304	$	93	$	859	$	952

Loans by Risk Rating

The following tables present the Company’s loans by risk rating.


	June 30, 2012
	Originated Portfolio
	Commercial Real Estate		Construction		Commercial Business		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	96,963	$	1,187	$	18,223	$	83,415
Loans rated 7		1,886		0		250		1,055
Loans rated 8		1,347		0		1,139		0
Loans rated 9		0		0		0		0
Loans rated 10		0		0		0		0

	$	100,196	$	1,187	$	19,612	$	84,470


	June 30, 2011
	Originated Portfolio
	Commercial Real Estate		Construction		Commercial Business		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	106,717	$	2,015	$	18,201	$	637
Loans rated 7		3,133		0		1,169		0
Loans rated 8		7,274		0		2,855		0
Loans rated 9		0		0		0		0
Loans rated 10		0		0		0		0

	$	117,124	$	2,015	$	22,225	$	637

Premises and Equipment (Tables)

12 Months Ended

Jun. 30, 2012

Premises and Equipment

Premises and equipment consists of the following:


	June 30, 2012		June 30, 2011
	(Dollars in thousands)
Land	$	1,210	$	1,251
Buildings		2,120		2,194
Assets recorded under capital lease		1,850		1,850
Leasehold and building improvements		940		903
Furniture, fixtures and equipment		4,909		2,644

		11,029		8,842
Less accumulated depreciation		1,824		571

Net premises and equipment	$	9,205	$	8,271

Discontinued Operations (Tables)

12 Months Ended

Jun. 30, 2012

Summary of Sale Transactions

NBIG to local insurance agencies in two separate transactions. The following is a summary of the sale transactions (dollars in thousands).


Sale proceeds	$	9,889
Less:
Customer lists and other intangible assets, net		7,380
Fixed assets, net of accumulated depreciation		164
Severance and other direct expenses		779

Pre-tax gain recognized	$	1,566

Summary of Operations

The following summarizes the operations of NBIG.


	Successor Company					Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011		181 Days Ended December 28, 2010

	(Dollars in thousands)
Interest expense	$	14		$	54	$	75
Noninterest income:
Insurance commissions		965			2,772		2,660
Other noninterest income (expense)		(4	)		4		0

Total noninterest income		961			2,776		2,660

Noninterest expense:
Salaries and employee benefits		494			1,758		1,721
Occupancy and equipment expense		88			237		204
Professional fees		16			11		18
Data processing fees		38			107		97
Intangible assets amortization		68			417		344
Other		57			124		107

Total noninterest expense		761			2,654		2,491

Income from discontinued operations		186			68		94
Gain on sale of assets		1,566			0		105

Income from discontinued operations before income tax expense		1,752			68		199
Income tax expense		605			23		70

Net income from discontinued operations	$	1,147		$	45	$	129

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

Changes in Carrying Amount of Intangible Assets

Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2012

The changes in the carrying amount of intangible assets follow:


			Identifiable Intangibles
	Goodwill		Core Deposit Intangible		Other Intangibles			Total Identifiable Intangibles
	(Dollars in thousands)
Predecessor Company
Balance, June 30, 2010	$	4,083	$	0	$	7,288		$	7,288
Amortization		0		0		(344	)		(344	)
Assets sold or disposed		0		0		(43	)		(43	)

Balance, December 28, 2010	$	4,083	$	0	$	6,901		$	6,901


			Identifiable Intangibles
	Goodwill		Core Deposit Intangible			Other Intangibles			Total Identifiable Intangibles
	(Dollars in thousands)
Successor Company
Balance, December 29, 2010	$	0	$	6,348		$	7,865		$	14,213
Amortization		0		(663	)		(417	)		(1,080	)
Assets sold or disposed		0		0			0			0

Balance, June 30, 2011		0		5,685			7,448			13,133
Amortization		0		(1,198	)		(68	)		(1,266	)
Assets sold or disposed		0		0			(7,380	)		(7,380	)

Balance, June 30, 2012	$	0	$	4,487		$	0		$	4,487

Components of Identifiable Intangible Assets

The components of identifiable intangible assets follow at June 30:


	2012			2011
	(Dollars in thousands)
Core Deposit Intangible:
Gross carrying amount	$	6,348		$	6,348
Accumulated amortization		(1,861	)		(663	)

	$	4,487		$	5,685

Other Intangibles:
Gross carrying amount	$	0		$	7,865
Accumulated amortization		0			(417	)

	$	0		$	7,448

Estimated Annual Amortization Expense Associated Intangible Assets

Estimated annual amortization expense associated with intangible assets, years ending June 30 (dollars in thousands):


2013	$	943
2014		746
2015		589
2016		477
2017		432
Thereafter		1,300

	$	4,487

Deposits (Tables)

12 Months Ended

Jun. 30, 2012

Composition of Deposits

The composition of deposits at June 30 follows:


	2012		2011
	(Dollars in thousands)
Demand	$	45,323	$	48,215
NOW		57,477		55,458
Money market		45,024		48,695
Regular savings		32,727		34,346
Time certificates of less than $100		100,292		121,229
Other time certificates		141,345		93,175

	$	422,188	$	401,118

Maturities of Time Certificates

The scheduled maturities of time certificates at June 30, 2012 follows (dollars in thousands):


2013	$	132,569
2014		39,495
2015		32,146
2016		4,023
2017		33,099
Thereafter		305

	$	241,637

Borrowings (Tables)

12 Months Ended

Jun. 30, 2012

Fixed-Rate Long Term Advances from Federal Home Loan Bank of Boston

A summary of fixed-rate long term advances from the Federal Home Loan Bank of Boston as of June 30, 2012 follows:


Maturity By Fiscal Year	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
	2012		2011		2012		2011		2012			2011
	(Dollars in thousands)
2013	$	15,000	$	15,000	$	15,194	$	15,450		1.46	%		1.46	%
2014		0		0		0		0		0.00			0.00
2015		12,500		12,500		12,728		12,831		2.30			2.30
2016		0		0		0		0		0.00			0.00
2017		10,000		10,000		10,382		10,468		3.48			3.48
2018		5,000		5,000		5,146		5,173		3.84			3.84

	$	42,500	$	42,500	$	43,450	$	43,922		2.47			2.47

Summary of Structured Repurchase Agreements

A summary of structured repurchase agreements as of June 30, 2012 follows:


Maturity By Fiscal Year	Structured Rate Feature	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
		2012		2011		2012		2011		2012			2011
		(Dollars in thousands)
2013	n/a	$	40,000	$	40,000	$	40,302	$	41,641		1.22	%		1.22	%
2014	n/a		15,000		15,000		15,358		15,681		1.64			1.64
2015	n/a		0		0		0		0		0.00			0.00
2016	Caps; strike rate of 3.81%		10,000		10,000		10,523		10,686		2.75			2.75

		$	65,000	$	65,000	$	66,183	$	68,008		1.56			1.56

Future Minimum Lease Payments Over Remaining Term of Lease and Outstanding Capital Lease Obligation

The future minimum lease payments over the remaining term of the lease and the outstanding capital lease obligation at June 30, 2012 are as follows (dollars in thousands):


2013	$	264
2014		264
2015		264
2016		303
2017		306
2018 and thereafter		944

		2,345
Less imputed interest		434

Capital lease obligation	$	1,911

Junior Subordinated Debentures Issued to Affiliated Trusts (Tables)

12 Months Ended

Jun. 30, 2012

Summary of Junior Subordinated Debentures Issued by Company to Each Affiliated Trust and Private Trust Securities Issued by Each Affiliated Trust


	Carrying Amount	Cost⁽¹⁾			Principal Balance		Contractual Rate⁽¹⁾			Maturity Date
	(Dollars in thousands)
NBN Capital Trust II	$ 1,747		7.52	%	$	3,093		3.26	%		March 30, 2034
NBN Capital Trust III	1,747		7.52			3,093		3.26			March 30, 2034
NBN Capital Trust IV	4,612		7.67			10,310		2.36			February 23, 2035

Total	$8,106				$	16,496

(1)	Excludes effects of hedging instruments

Capital and Regulatory Matters (Tables)

12 Months Ended

Jun. 30, 2012

The Company's and Bank's Regulatory Capital Ratios

The Company’s and the Bank’s regulatory capital ratios are set forth below.


	Actual					Minimum Capital Requirements					Minimum To Be Well Capitalized Under Prompt Correction Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
June 30, 2012:
Total capital to risk weighted assets:
Company	$	124,452		33.34	%	$	29,863		>8.0	%	$	N/A		N/A
Bank		75,081		20.14	%		29,824		>8.0	%		37,280		>10.0	%
Tier 1 capital to risk weighted assets:
Company		123,628		33.12	%		14,931		>4.0	%		N/A		N/A
Bank		70,414		18.89	%		14,910		>4.0	%		22,365		>6.0	%
Tier 1 capital to average assets:
Company		123,628		19.91	%		24,837		>4.0	%		N/A		N/A
Bank		70,414		11.43	%		24,642		>4.0	%		30,802		>5.0	%
June 30, 2011:
Total capital to risk weighted assets:
Company	$	61,860		18.99	%	$	26,061		>8.0	%	$	N/A		N/A
Bank		66,956		20.43	%		26,216		>8.0	%		32,770		>10.0	%
Tier 1 capital to risk weighted assets:
Company		61,424		18.86	%		13,030		>4.0	%		N/A		N/A
Bank		62,842		19.18	%		13,108		>4.0	%		19,662		>6.0	%
Tier 1 capital to average assets:
Company		61,424		10.35	%		23,736		>4.0	%		N/A		N/A
Bank		62,842		10.69	%		23,523		>4.0	%		29,404		>5.0	%

Earnings Per Common Share (Tables)

12 Months Ended

Jun. 30, 2012

number of shares outstanding for basic and diluted EPS

The number of shares outstanding for basic and diluted EPS is presented as follows:


	Successor Company						Predecessor Company
	Year ended June 30, 2012			184 days ended June 30, 2011			181 days ended December 28, 2010

	(Dollars in thousands, except share and per share data)
Net income from continuing operations	$	1,016		$	12,507		$	1,667
Preferred stock dividends		(212	)		(107	)		(104	)
Accretion of preferred stock		(180	)		(90	)		(15	)

Net income from continuing operations available to common shareholders	$	624		$	12,310		$	1,548
Undistributed earnings of continuing operations allocated to participating securities		2			46			0

Net income from continuing operations allocated to common shareholders	$	622		$	12,264		$	1,548

Net income from discontinued operations available to common shareholders	$	1,147		$	45		$	129
Undistributed earnings of discontinued operations allocated to participating securities		3			0			0

Net income from discontinued operations allocated to common shareholders	$	1,144		$	45		$	129

Weighted average shares used in calculation of basic earnings per share		4,277,777			3,492,933			2,330,197
Incremental shares from assumed exercise of dilutive securities		13,575			55,231			24,188

Weighted average shares used in calculation of diluted earnings per share		4,291,352			3,548,164			2,354,385

Earnings per common share:
Income from continuing operations	$	0.15		$	3.51		$	0.66
Income from discontinued operations		0.26			0.01			0.06

Earnings per common share	$	0.41		$	3.52		$	0.72

Diluted earnings per common share:
Income from continuing operations	$	0.15		$	3.46		$	0.66
Income from discontinued operations		0.26			0.01			0.05

Diluted earnings per common share	$	0.41		$	3.47		$	0.71

Anti-Dilutive Options and Warrants Excluded from Calculation of Dilutive Earnings per Share

Anti-dilutive options and warrants excluded from the calculation of dilutive earnings per share follow:


	Successor Company				Predecessor Company
	Year ended June 30, 2012		184 days ended June 30, 2011		181 days ended December 28, 2010
Stock options		796,049		162,010		0
Warrants		0		0		0

		796,049		162,010		0

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

current and deferred components of income tax (benefit) expense

The current and deferred components of income tax (benefit) expense from continuing operations follows:


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended December 28, 2010

	(Dollars in thousands)
Current provision (benefit)
Federal	$	(1,033	)	$	(773	)	$	996
State		71			146			45

Total current provision (benefit)		(962	)		(627	)		1,041
Deferred provision (benefit)
Federal		1,143			544			(343	)
State		0			0			0

Total deferred provision		1,143			544			(343	)

Total tax provision (benefit)	$	181		$	(83	)	$	698

Total Income Tax Expense from Continuing Operations Difference

The reconciliation between the statutory federal income tax rate of 34% and the effective tax rate on income from continuing operations follows:


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended December 28, 2010

	(Dollars in thousands)
Expected income tax expense at federal tax rate	$	407		$	4,224		$	804
State tax, net of federal tax benefit		47			96			28
Non-taxable merger expense		0			1,046			32
Non-taxable bargain purchase gain		0			(5,250	)		0
Non-taxable interest income		(7	)		(32	)		(87	)
Non-taxable BOLI income		(170	)		(86	)		(87	)
Low-income housing tax credit		(118	)		(91	)		0
Other		22			10			8

Total tax provision (benefit)	$	181		$	(83	)	$	698

Tax Effect of Temporary Difference

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30 follows:


	2012			2011
	(Dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	280		$	149
Loan basis differential		629			1,237
Time deposit basis differential		589			1,028
Derivative basis differential		146			196
Capital lease		120			110
Deferred compensation		213			78
Stock-based compensation		418			267
Unrealized loss on derivatives		130			62
Unrealized loss on available for sale securities		0			55
Interest on nonperforming loans		212			151
Limited partnerships		97			78
Other		205			124

Total deferred tax asset		3,039			3,535
Deferred tax liabilities
Goodwill and other intangible assets		(1,526	)		(1,224	)
Prepaid expenses		(268	)		(208	)
Premises and equipment		(801	)		(487	)
Borrowings basis differential		(2,127	)		(1,365	)
Unrealized gain on available for sale securities		(212	)		0
Other		(59	)		(179	)

Total deferred tax liability		(4,993	)		(3,463	)

Net deferred tax (liability) asset	$	(1,954	)	$	72

Stock-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2012

Stock Option Activity

A summary of the stock option activity for the year ended June 30, 2012 follows:


	Shares			Weighted Average Exercise Price
Outstanding at beginning of period		764,549		$	14.05
Granted		40,000			12.63
Exercised		0			0
Forfeited		(8,500	)		13.10

Outstanding and at end of period		796,049			13.98

Exercisable		54,175		$	14.11

Stock Option Granted, Valluation Assumtions

The fair value of options granted was estimated on the date of grant using the Black-Scholes or lattice option-pricing model using the following weighted-average assumptions.


	Year Ended June 30, 2012		184 Days Ended June 30, 2011
	Time-based		Time-based		Performance-based
Assumptions:
Dividend yield		2.81%		2.58%		2.58%
Expected life		6 years		10 years		10 years
Expected volatility		33.86%		27.15%		27.15%
Risk-free interest rate		0.98%		0.20% -3.35%		0.20% -3.35%
Vesting share price for performance-based options		n/a		n/a	$	27.86 - $34.83
Weighted average fair value per option	$	4.39	$	3.86	$	2.48

Information About Stock Options Outstanding

The following table summarizes information about stock options outstanding at June 30, 2012.


Options Outstanding						Options Exercisable
Weighted Average Exercise Price	Number		Weighted Average Remaining Life	Aggregate Intrinsic Value		Weighted Average Exercise Price		Number		Weighted Average Remaining Life	Aggregate Intrinsic Value
$12.63		40,000	9.6 years	$	0	$	12.63		0	9.6 years	$	0
13.93		594,039	8.5 years		0		13.93		37,975	8.5 years		0
14.52		162,010	8.5 years		0		14.52		16,200	8.5 years		0

13.98		796,049	8.6 years		0		14.11		54,175	8.5 years		0

Estimated Amount and Timing of Future Pre-Tax Stock-Based Compensation Expense


	Fiscal Years Ending June 30:
	2013		2014		2015		2016		2017		Total
	(Dollars in thousands)
Stock options	$	419	$	405	$	386	$	256	$	69	$	1,535
Restricted stock		36		36		36		18		0		126

	$	455	$	441	$	422	$	274	$	69	$	1,661

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks (Tables)

12 Months Ended

Jun. 30, 2012

Financial Instruments with Contract Amounts Represent Credit Risk

Financial instruments with contract amounts which represent credit risk are as follows as of June 30:


	2012		2011
	(Dollars in thousands)
Commitments to originate loans:
Residential real estate mortgages	$	10,279	$	10,646
Construction loans		106		568
Consumer		25		0
Commercial real estate mortgages		361		375
Commercial business loans		1,145		27

	$	11,916	$	11,616


Unused lines of credit	$	36,276	$	42,385
Standby letters of credit		602		1,233
Unadvanced portions of construction loans		162		431

Approximate Future Minimum Lease Payments

Approximate future minimum lease payments over the remaining terms of leases at June 30, 2012 are as follows (dollars in thousands):


2013	$	738
2014		986
2015		1,095
2016		1,053
2017		938
2018 and thereafter		5,210

	$	10,020

Condensed Parent Information (Tables)

12 Months Ended

Jun. 30, 2012

Condensed Financial Information Balance Sheet

Condensed financial information for Northeast Bancorp follows:


	June 30, 2012		June 30, 2011
	(Dollars in thousands)
Balance Sheets
Assets:
Cash	$	54,996	$	3,538
Investment in subsidiary		72,849		70,539
Investment in common securities of affiliated trusts		496		496
Other assets		2,047		1,350

Total assets	$	130,388	$	75,923

Liabilities and Stockholders’ Equity:
Junior subordinated debentures issued to affiliated trusts	$	8,106	$	7,957
Other liabilities		3,143		3,012

Total liabilities		11,249		10,969
Stockholders’ equity		119,139		64,954

Total liabilities and stockholders’ equity	$	130,388	$	75,923

Condensed Financial Information Statements of Income


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended Dec. 28, 2010

	(Dollars in thousands)
Statements of Income
Income:
Dividends from banking subsidiary	$	1,500		$	0		$	1,255
Bargain purchase gain		0			16,620			0
Other income		26			21			18

Total income		1,526			16,641			1,273

Expenses:
Interest on Junior Subordinated Debentures paid to affiliated trusts		751			365			340
General and administrative expenses		993			3,772			209

Total expenses		1,744			4,137			549

(Loss) income before income tax expense and equity in undistributed net income of subsidiary		(218	)		12,504			724
Income tax benefit		589			271			151

Income before equity in undistributed net income of subsidiary		371			12,775			875
Equity in undistributed net income of subsidiary		1,792			(223	)		921

Net income	$	2,163		$	12,552		$	1,796

Net income available to common stockholders	$	1,771		$	12,355		$	1,677

Condensed Financial Information Statements of Cash Flow


	Successor Company						Predecessor Company
	Year Ended June 30, 2012			184 Days Ended June 30, 2011			181 Days Ended Dec. 28, 2010

	(Dollars in thousands)
Statements of Cash Flow
Cash flows from operating activities:
Net income	$	2,163		$	12,552		$	1,796
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization		0			19			1
Amortization of fair value adjustment for borrowings		149			68			0
Stock-based compensation		445			210			0
Undistributed (earnings) loss of subsidiary		(1,792	)		223			(921	)
Net gain on available-for-sale securities		0			(11	)		(5	)
Bargain purchase gain		0			(16,620	)		0
Increase in other assets and liabilities		(700	)		(756	)		(273	)

Net cash provided by (used in) operating activities		265			(4,315	)		598


Cash flows from investing activities:
Increase in investment of bank subsidiary		0			(9,150	)		0
Purchases of available-for-sale securities		0			0			(1	)
Proceeds from sales of available-for-sale securities		0			576			173

Net cash (used in) provided by investing activities		0			(8,574	)		172


Cash flows from financing activities:
Proceeds from issuance of common stock		52,667			16,201			62
Dividends paid to stockholders		(1,474	)		(736	)		(525	)

Net cash provided by (used in) financing activities		51,193			15,465			(463	)


Net increase in cash		51,458			2,576			307
Cash, beginning of period		3,538			962			655

Cash, end of period	$	54,996		$	3,538		$	962

Other Comprehensive Income (Tables)

12 Months Ended

Jun. 30, 2012

Other Comprehensive Income

The components of other comprehensive income follow:


Successor Company	Year Ended June 30, 2012									184 Days Ended June 30, 2011
	Pre-tax			Tax Expense			After-tax			Pre-tax			Tax Expense			After-tax
	Amount			(Benefit)			Amount			Amount			(Benefit)			Amount
	(Dollars in thousands)									(Dollars in thousands)
Unrealized holding gains on available-for-sale securities	$	1,896		$	645		$	1,251		$	1,039		$	353		$	686
Less: Realized gains		1,111			378			733			1,200			408			792

Unrealized gains (losses) on available-for-sale securities, net		785			267			518			(161	)		(55	)		(106	)

Unrealized losses on cash flow hedges		(122	)		(41	)		(81	)		(137	)		(46	)		(91	)
Less: Realized gains		80			27			53			44			15			29

Unrealized losses on cash flow hedges, net		(202	)		(68	)		(134	)		(181	)		(61	)		(120	)

Total other comprehensive income (loss)	$	583		$	199		$	384		$	(342	)	$	(116	)	$	(226	)


Predecessor Company	181 Days Ended December 28, 2010
	Pre-tax			Tax Expense			After-tax
	Amount			(Benefit)			Amount
	(Dollars in thousands)
Unrealized holding losses on available-for-sale securities	$	(2,806	)	$	(954	)	$	(1,852	)
Less: Realized gains on available-for-sale securities		17			6			11

Unrealized losses on available-for-sale securities, net		(2,823	)		(960	)		(1,863	)
Unrealized losses on cash flow hedges		(16	)		(6	)		(10	)

Total other comprehensive loss	$	(2,839	)	$	(966	)	$	(1,873	)

Accumulated other comprehensive income (loss) is comprised of the following components:


	June 30, 2012			June 30, 2011
	(Dollars in thousands)
Unrealized gain (loss) on available-for-sale securities	$	624		$	(161	)
Tax effect		(212	)		55

Net-of-tax amount		412			(106	)

Unrealized loss on cash flow hedges		(384	)		(182	)
Tax effect		130			62

Net-of-tax amount		(254	)		(120	)

Accumulated other comprehensive income (loss)	$	158		$	(226	)

Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2012

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.


	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale
U.S. Government agency securities	$	45,808	$	0	$	45,808	$	0
Agency mortgage-backed securities		87,456		0		87,456		0
Other assets—interest rate caps		1		0		1		0
Liabilities
Other liabilities—interest rate swap	$	580	$	0	$	580	$	0


	June 30, 2011
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale
U.S. Government agency securities	$	48,737	$	0	$	48,737	$	0
Agency mortgage-backed securities		99,558		0		99,558		0
Equity securities		216		216		0		0
Trust preferred securities		451		451		0		0
Other assets—interest rate caps		46		0		46		0
Liabilities
Other liabilities—interest rate swap	$	503	$	0	$	0	$	503

Assets Measured at Fair Value on Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis are summarized below.


	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Impaired loans	$	1,103	$	0	$	0	$	1,103
Repossessed collateral		834		0		0		834


	June 30, 2011
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Impaired loans	$	1,426	$	0	$	0	$	1,426
Repossessed collateral		690		0		0		690
Premises		361		0		0		361

Estimated Fair Value of Company's Financial Instruments

The following table presents the estimated fair value of the Company’s financial instruments.


	Carrying Amount		Fair Value Measurements at June 30, 2012
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	128,274	$	128,274	$	128,274	$	0	$	0
Available-for-sale securities		133,264		133,264		0		133,264		0
Regulatory stock		5,473		5,473		0		5,473		0
Loans held for sale		9,882		9,896		0		9,896		0
Loans, net		355,430		374,062		0		0		374,062
Accrued interest receivable		1,840		1,840		0		1,840		0
Interest rate caps		1		1		0		1		0

Financial liabilities:
Deposits		422,188		425,782		0		0		425,782
FHLB advances		43,450		45,747		0		45,747		0
Structured repurchase agreements		66,183		67,314		0		67,314		0
Short-term borrowings		1,209		1,209		0		1,209		0
Capital lease obligation		1,911		2,202		0		2,202		0
Subordinated debentures		8,106		8,597		0		0		8,597
Interest rate swaps		580		580		0		580		0


	Carrying Amount		Fair Value Measurements at June 30, 2011
	Carrying Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	83,931	$	83,931	$	83,931	$	0	$	0
Available-for-sale securities		148,962		148,962		0		148,962		0
Regulatory stock		5,760		5,760		0		5,760		0
Loans held for sale		5,176		5,209		0		5,209		0
Loans, net		309,476		316,361		0		0		316,361
Accrued interest receivable		1,244		1,244		0		1,244		0
Interest rate caps		46		46		0		46		0

Financial liabilities:
Deposits		401,118		403,481		0		0		403,481
FHLB advances		43,922		45,465		0		45,465		0
Structured repurchase agreements		68,008		69,364		0		69,364		0
Other borrowings		2,229		2,280		0		2,280		0
Short-term borrowings		2,515		2,515		0		2,515		0
Capital lease obligation		2,075		2,306		0		2,306		0
Subordinated debentures		7,957		7,979		0		0		7,979
Interest rate swaps		503		503		0		0		503

Derivatives (Tables)

12 Months Ended

Jun. 30, 2012

Outstanding Interest Rate Caps and Swap Agreements Used to Hedge Variable Rate Debt

Information pertaining to outstanding interest rate caps and swap agreements used to hedge variable rate debt is as follows.


	June 30, 2012						June 30, 2011
	Interest Rate Caps			Interest Rate Swap			Interest Rate Caps			Interest Rate Swap
	(Dollars in thousands)
Notional amount	$	6,000		$	10,000		$	6,000		$	10,000
Weighted average pay rate					4.69	%					4.69	%
Weighted average receive rate					2.36	%					2.23	%
Strike rate based on three month LIBOR		2.51	%					2.51	%
Weighted average maturity in years		2.25			2.67			3.25			3.67
Unrealized loss	$	69		$	315		$	45		$	137

Fair Values and Location of Derivatives Designated as Hedging Instruments

The following sets forth the fair values and location of derivatives designated as hedging instruments (dollars in thousands).


June 30, 2012	Asset Derivatives
	Balance Sheet Location		Fair Value
Interest rate caps		Other assets	$	1

	Liability Derivatives
	Balance Sheet Location		Fair Value
Interest rate swap		Other liabilities	$	580


June 30, 2011	Asset Derivatives
	Balance Sheet Location		Fair Value
Interest rate caps		Other assets	$	46

	Liability Derivatives
	Balance Sheet Location		Fair Value
Interest rate swap		Other liabilities	$	503

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Summary Of Significant Accounting Policies [Line Items]
Investments in NBN Capital Trust affiliates	$ 496
Cash or deposits reserve balances	$ 3,800	$ 1,100

Merger - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2012	Dec. 28, 2010
Business Acquisition [Line Items]
Capital contribution received by surviving company			$ 16,200
Cash consideration paid to former shareholders			$ 13,100
Business Acquisition Percentage Of Outstanding Common Stock			60.00%
Percentage of commercial real estate loans to total risk-based capital		300.00%
Bargain purchase gain	$ 15,400		$ 15,441
Intangible asset fair values	14,200
Expenses, principally legal, accounting and investment banking fees	3,800
Expenses, principally legal, accounting and investment banking fees incurred	3,300
Fair value of the loan portfolio	369,600
Loans with evidence of deterioration in credit quality	4,600
Non-accretable difference	$ 1,900
Intangible asset amortized over estimated useful life	9 years 6 months
Other identifiable intangibles	$ 7,900		$ 7,865
Existing goodwill	$ 4,100
Minimum
Business Acquisition [Line Items]
Tier 1 leverage ratio		10.00%
Total risk-based capital ratio		15.00%
Percentage of limit purchased loans to total loans		40.00%
Percentage of the company's loan with core deposits		100.00%

Assets Acquired and Liabilities Assumed Recorded at Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Dec. 28, 2010
Consideration:
FHB investors' purchase of 937,933 existing Northeast shares, at $13.93 per Surviving Company share			$ 13,065
Existing Northeast shareholders' retention of shares in Surviving Company, 1,393,399 shares at $13.93 per share			19,410
Total consideration:			32,475
Assets:
Cash and short-term investments			58,598
Available-for-sale securities			153,315
Loans held-for-sale			7,864
Loans			361,741
Premises and equipment			7,909
Bank-owned life insurance	$ 14,295	$ 13,794	13,536
Core deposit intangible			6,348
Other identifiable intangibles		7,900	7,865
Other assets			14,409
Total assets	$ 669,196	596,393	631,585
Liabilities and Preferred Equity:
Deposits			378,523
Overnight borrowings			63,043
Term borrowings			125,627
Jr. subordinated debentures issued to affiliated trusts			7,889
Other liabilities			4,492
Preferred stock			4,095
Total Liabilities and Preferred Equity Assumed			583,669
Net Identifiable Assets Acquired			47,916
Bargain purchase gain recorded in income		$ 15,400	$ 15,441

Assets Acquired and Liabilities Assumed Recorded at Fair Value (Parenthetical) (Detail) shares in Thousands	Dec. 28, 2010 $ / shares shares
Business Acquisition [Line Items]
FHB investors' purchase shares \| shares	937,933
Surviving Company price per share \| $ / shares	$ 13.93
Existing Northeast shareholders' shares retained \| shares	1,393,399
Existing Northeast shareholders' per share retained \| $ / shares	$ 13.93

Securities Available-for-Sale at Amortized Cost and Approximate Fair Values (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Total securities available for sale, Amortized Cost	$ 132,640	$ 149,123
Total securities available for sale, Fair Value	133,264	148,962
U.S. Government Agency Securities
Schedule of Available-for-sale Securities [Line Items]
Total securities available for sale, Amortized Cost	45,824	48,827
Total securities available for sale, Fair Value	45,808	48,737
Agency Mortgage-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Total securities available for sale, Amortized Cost	86,816	99,637
Total securities available for sale, Fair Value	87,456	99,558
Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Total securities available for sale, Amortized Cost	0	193
Total securities available for sale, Fair Value	0	216
Trust Preferred
Schedule of Available-for-sale Securities [Line Items]
Total securities available for sale, Amortized Cost	0	466
Total securities available for sale, Fair Value	$ 0	$ 451

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

Financing Receivable, Allowance for Credit Losses [Line Items]

Gross Unrealized Gains and Unrealized Losses on Available-for-sale Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Gains	$ 645	$ 250
Gross Unrealized Losses	21	411
U.S. Government Agency Securities
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Gains	5	7
Gross Unrealized Losses	21	97
Agency Mortgage-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Gains	640	212
Gross Unrealized Losses	0	291
Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Gains	0	23
Gross Unrealized Losses	0	0
Trust Preferred
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Gains	0	8
Gross Unrealized Losses	$ 0	$ 23

Realized Gains and Losses on Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2011	Dec. 28, 2010	Jun. 30, 2012
Successor
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	$ 1,427		$ 1,178
Gross realized losses	227		67
Net security gains	$ 1,200		$ 1,111
Predecessor
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains		$ 17
Gross realized losses		0
Net security gains		$ 17

Available-for-sale Securities - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2011	Dec. 28, 2010	Jun. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
Investment securities at fair value pledged as collateral for borrowings			$ 92,500
Other-than-temporary impairment losses on securities	$ 7	$ 0
Available-for-sale securities with continuous unrealized losses for less than twelve months	$ 411		$ 21
Aggregate depreciation as a percentage of amortized cost	0.00%

Gross Unrealized Losses and Fair Values Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 36,585	$ 97,671
Unrealized Losses	21	411
Fair Value	0	0
Unrealized Losses	0	0
Fair Value	36,585	97,671
Unrealized Losses	21	411
U.S. Government Agency Securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value	36,585	46,130
Unrealized Losses	21	97
Fair Value	0	0
Unrealized Losses	0	0
Fair Value	36,585	46,130
Unrealized Losses	21	97
Agency Mortgage-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Fair Value	0	51,367
Unrealized Losses	0	291
Fair Value	0	0
Unrealized Losses	0	0
Fair Value	0	51,367
Unrealized Losses	$ 0	291
Trust Preferred
Schedule of Available-for-sale Securities [Line Items]
Fair Value		174
Unrealized Losses		23
Fair Value		0
Unrealized Losses		0
Fair Value		174
Unrealized Losses		$ 23

Amortized Cost and Fair Values of Available-for-Sale Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Schedule of Available-for-sale Securities [Line Items]
Due after one year through five years, Fair Value	$ 45,808
Due after five years through ten years, Fair Value	0
Due after ten years, Fair Value	0
Available-for-sale securities debt maturities, Fair Value	45,808
Mortgage-backed securities, Fair Value	87,456
Available-for-sale securities, Fair Value	133,264	$ 148,962
Due after one year through five years, Amortized Cost	45,824
Due after five years through ten years, Amortized Cost	0
Due after ten years, Amortized Cost	0
Available-for-sale securities debt maturities, Amortized Cost	45,824
Mortgage-backed securities, Amortized Cost	86,816
Available-for-sale securities, Amortized Cost	$ 132,640	$ 149,123

Composition of Company Loan Portfolio (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	$ 356,254	$ 309,913
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	94,875	95,417
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	42,696	50,060
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	180,735	117,761
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	1,187	2,015
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	19,612	22,225
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	17,149	22,435
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	271,784	309,276
Originated \| Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	90,944	95,417
Originated \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	42,696	50,060
Originated \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	100,196	117,124
Originated \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	1,187	2,015
Originated \| Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	19,612	22,225
Originated \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	17,149	22,435
Purchased
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	84,470	637
Purchased \| Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	3,931	0
Purchased \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	0	0
Purchased \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	80,539	637
Purchased \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	0	0
Purchased \| Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	0	0
Purchased \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
loans	$ 0	$ 0

Summary of Loans Acquired through Merger (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Dec. 28, 2010
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments receivable			$ 9,743
Nonaccretable difference			(3,348)
Cash flows expected to be collected			6,395
Accretable yield	$ 7,169	$ 0	(1,690)
Fair value of PCI loans acquired			4,705
Residential Real Estate and Consumer
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments receivable			3,677
Nonaccretable difference			(938)
Cash flows expected to be collected			2,739
Accretable yield			(1,204)
Fair value of PCI loans acquired			1,535
Commercial Real Estate and Commercial Business
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments receivable			6,066
Nonaccretable difference			(2,410)
Cash flows expected to be collected			3,656
Accretable yield			(486)
Fair value of PCI loans acquired			$ 3,170

Loans, Allowance for Loan Losses and Credit Quality - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan transactions with its officers, directors and their associates and affiliated companies	$ 1.6	$ 2.0
Deterioration [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonperforming small balance consumer loans	$ 2.4

Loans Acquired (Detail) $ in Thousands	12 Months Ended
Loans Acquired (Detail) $ in Thousands	Jun. 30, 2012 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments receivable	$ 35,455
Nonaccretable difference	(8,765)
Cash flows expected to be collected	26,690
Accretable yield	(8,589)
Fair value of PCI loans acquired	18,101
Beginning balance	0
Accretion	(1,912)
Acquisitions	8,589
Reclassifications from nonaccretable difference, net	1,156
Disposals and transfers	(664)
Ending balance	7,169
Unpaid principal balance at June 30, 2012	21,359
Carrying amount at June 30, 2012	$ 13,866

Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

$ 437

Financing Receivable, Allowance for Credit Losses [Line Items]

$ 437

824

Residential Real Estate

Financing Receivable, Allowance for Credit Losses [Line Items]

214

Commercial real estate

147

Financing Receivable, Allowance for Credit Losses [Line Items]

147

Commercial Business

238

Financing Receivable, Allowance for Credit Losses [Line Items]

238

292

Consumer

225

Financing Receivable, Allowance for Credit Losses [Line Items]

437

Provision

^[1]

707

946

Recoveries

Charge-offs

(306)

(643)

Successor | Residential Real Estate

437

$ 0

824

Financing Receivable, Allowance for Credit Losses [Line Items]

425

(248)

214

Successor | Commercial real estate

Financing Receivable, Allowance for Credit Losses [Line Items]

147

(28)

(26)

147

Successor | Commercial Business

Financing Receivable, Allowance for Credit Losses [Line Items]

238

(17)

238

292

Successor | Consumer

Financing Receivable, Allowance for Credit Losses [Line Items]

522

(352)

225

Successor | Purchased

Financing Receivable, Allowance for Credit Losses [Line Items]

^[2]

^[2]

^[2]

^[2]

^[2]

$ 0

Financing Receivable, Allowance for Credit Losses [Line Items]

$ 5,967

5,806

Provision

^[3]

912

Recoveries

108

Charge-offs

(859)

$ 5,967

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	Purchased loans included above include commercial real estate, commercial business, and residential real estate loans. The Company separately analyzes all loans purchased by the LASG from other segments in determining the allowance for loan losses under ASC 310-30.
[3]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Allowance for Loan Losses by Portfolio Segment and Impairment Methodology (Detail) - USD ($)
$ in Thousands

Jun. 30, 2012

Jun. 30, 2011

$ 328

$ 315

496

122

^[1]

824

437

Loans:

4,638

3,143

268,201

306,133

^[1]

83,415

^[2]

637

Nonperforming loan purchased

355,430

309,476

1,100

Residential Real Estate

211

^[1]

214

Loans:

399

133,241

146,585

^[1]

3,931

^[2]

137,571

146,585

Commercial real estate

119

^[1]

147

Loans:

3,112

1,221

99,326

116,810

^[1]

79,484

^[2]

637

181,922

118,668

Commercial Business

284

196

^[1]

292

238

Loans:

1,127

1,922

18,485

20,303

^[1]

^[2]

19,612

22,225

Consumer

225

^[1]

225

Loans:

17,149

22,435

^[1]

^[2]

$ 17,149

$ 22,435

[1]	Loans in this category are evaluated for impaired under ASC 310-30. Post acquisition, the effect of a decline in expected cash flows is recorded through the allowance for loan losses as a specific allocation.
[2]	At June 30, 2012, one purchased loan totaling $1.1 million was nonperforming and individually evaluated under ASC 310-10.

Impaired Loans (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
Impaired Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 28, 2010	Jun. 30, 2012	Jun. 30, 2011
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 3,207		$ 3,207	$ 1,402
Unpaid Principal Balance	4,375		4,375	1,402
Related Allowance	0		0	0
Average Recorded Investment			2,085
Average Recorded Investment			135
Recorded Investment	1,431		1,431	1,741
Unpaid Principal Balance	1,485		1,485	1,741
Related Allowance	328		328	315
Average Recorded Investment			1,452
Interest Income Recognized			27
Successor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	2,798
Average Recorded Investment	90
Predecessor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		$ 5,434
Average Recorded Investment		98
Residential Real Estate \| Successor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	21
Average Recorded Investment	1
Residential Real Estate \| Predecessor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		330
Average Recorded Investment		2
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment				348
Unpaid Principal Balance				348
Related Allowance				0
Recorded Investment				873
Unpaid Principal Balance				873
Related Allowance				119
Commercial real estate \| Successor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,736
Average Recorded Investment	60
Commercial real estate \| Predecessor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		3,366
Average Recorded Investment		76
Commercial Business
Financing Receivable, Impaired [Line Items]
Recorded Investment				1,054
Unpaid Principal Balance				1,054
Related Allowance				0
Recorded Investment				868
Unpaid Principal Balance				868
Related Allowance				196
Commercial Business \| Successor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,041
Average Recorded Investment	29
Commercial Business \| Predecessor
Financing Receivable, Impaired [Line Items]
Average Recorded Investment		1,738
Average Recorded Investment		$ 20
Total
Financing Receivable, Impaired [Line Items]
Recorded Investment	4,638		4,638	3,143
Unpaid Principal Balance	5,860		5,860	3,143
Related Allowance	328		328	$ 315
Average Recorded Investment			3,537
Interest Income Recognized			162
Originated [Member] \| Residential Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment	293		293
Unpaid Principal Balance	483		483
Related Allowance	0		0
Average Recorded Investment			235
Average Recorded Investment			21
Recorded Investment	106		106
Unpaid Principal Balance	103		103
Related Allowance	3		3
Average Recorded Investment			73
Interest Income Recognized			0
Originated [Member] \| Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Related Allowance	0		0
Average Recorded Investment			0
Average Recorded Investment			0
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Related Allowance	0		0
Average Recorded Investment			0
Interest Income Recognized			0
Originated [Member] \| Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,482		1,482
Unpaid Principal Balance	1,738		1,738
Related Allowance	0		0
Average Recorded Investment			1,119
Average Recorded Investment			99
Recorded Investment	575		575
Unpaid Principal Balance	565		565
Related Allowance	41		41
Average Recorded Investment			647
Interest Income Recognized			27
Originated [Member] \| Construction
Financing Receivable, Impaired [Line Items]
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Related Allowance	0		0
Average Recorded Investment			0
Average Recorded Investment			0
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Related Allowance	0		0
Average Recorded Investment			0
Interest Income Recognized			0
Originated [Member] \| Commercial Business
Financing Receivable, Impaired [Line Items]
Recorded Investment	377		377
Unpaid Principal Balance	692		692
Related Allowance	0		0
Average Recorded Investment			520
Average Recorded Investment			15
Recorded Investment	750		750
Unpaid Principal Balance	817		817
Related Allowance	284		284
Average Recorded Investment			732
Interest Income Recognized			0
Purchased \| Residential Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Related Allowance	0		0
Average Recorded Investment			0
Average Recorded Investment			0
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Related Allowance	0		0
Average Recorded Investment			0
Interest Income Recognized			0
Purchased \| Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,055		1,055
Unpaid Principal Balance	1,462		1,462
Related Allowance	0		0
Average Recorded Investment			211
Average Recorded Investment			0
Recorded Investment	0		0
Unpaid Principal Balance	0		0
Related Allowance	$ 0		0
Average Recorded Investment			0
Interest Income Recognized			$ 0

Past Due and Non-Accrual Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	$ 536	$ 944
60-89 Days	795	1,926
Past Due 90 Days or More-Still Accruing	0	751
Past Due 90 Days or More-Nonaccrual	5,622	3,847
Total Past Due	6,953	7,468
Total Current	349,301	302,445
Total Loans	356,254	309,913
Non-Accrual Loans	6,114	7,208
Originated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	536	944
60-89 Days	795	1,926
Past Due 90 Days or More-Still Accruing	0	751
Past Due 90 Days or More-Nonaccrual	4,567	3,847
Total Past Due	5,898	7,468
Total Current	265,886	301,808
Total Loans	271,784	309,276
Non-Accrual Loans	5,059	7,208
Originated [Member] \| Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	261	257
60-89 Days	183	1,021
Past Due 90 Days or More-Still Accruing	0	0
Past Due 90 Days or More-Nonaccrual	2,907	1,779
Total Past Due	3,351	3,057
Total Current	87,593	92,360
Total Loans	90,944	95,417
Non-Accrual Loans	3,090	2,195
Originated [Member] \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	16	117
60-89 Days	160	0
Past Due 90 Days or More-Still Accruing	0	0
Past Due 90 Days or More-Nonaccrual	136	89
Total Past Due	312	206
Total Current	42,384	49,854
Total Loans	42,696	50,060
Non-Accrual Loans	220	205
Originated [Member] \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	0	0
60-89 Days	208	492
Past Due 90 Days or More-Still Accruing	0	0
Past Due 90 Days or More-Nonaccrual	417	934
Total Past Due	625	1,426
Total Current	99,571	115,698
Total Loans	100,196	117,124
Non-Accrual Loans	417	3,601
Originated [Member] \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	0	0
60-89 Days	0	0
Past Due 90 Days or More-Still Accruing	0	0
Past Due 90 Days or More-Nonaccrual	0	121
Total Past Due	0	121
Total Current	1,187	1,894
Total Loans	1,187	2,015
Non-Accrual Loans	0	121
Originated [Member] \| Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	0	4
60-89 Days	107	75
Past Due 90 Days or More-Still Accruing	0	751
Past Due 90 Days or More-Nonaccrual	901	416
Total Past Due	1,008	1,246
Total Current	18,604	20,979
Total Loans	19,612	22,225
Non-Accrual Loans	1,008	559
Originated [Member] \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	259	566
60-89 Days	137	338
Past Due 90 Days or More-Still Accruing	0	0
Past Due 90 Days or More-Nonaccrual	206	508
Total Past Due	602	1,412
Total Current	16,547	21,023
Total Loans	17,149	22,435
Non-Accrual Loans	324	527
Purchased
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	0	0
60-89 Days	0	0
Past Due 90 Days or More-Still Accruing	0	0
Past Due 90 Days or More-Nonaccrual	1,055	0
Total Past Due	1,055	0
Total Current	83,415	637
Total Loans	84,470	637
Non-Accrual Loans	1,055	0
Purchased \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	0	0
60-89 Days	0	0
Past Due 90 Days or More-Still Accruing	0	0
Past Due 90 Days or More-Nonaccrual	0	0
Total Past Due	0	0
Total Current	3,931	637
Total Loans	3,931	637
Non-Accrual Loans	0	$ 0
Purchased \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-59 Days	0
60-89 Days	0
Past Due 90 Days or More-Still Accruing	0
Past Due 90 Days or More-Nonaccrual	1,055
Total Past Due	1,055
Total Current	79,484
Total Loans	80,539
Non-Accrual Loans	$ 1,055

Loans Modified in Troubled Debt Restructurings (Detail) $ in Thousands	12 Months Ended
	Jun. 30, 2012 USD ($) Contract
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	3
Recorded Investment Pre-Modification	$ 343
Recorded Investment Post-Modification	$ 343
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	3
Recorded Investment Pre-Modification	$ 343
Recorded Investment Post-Modification	$ 343
Originated \| Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	1
Recorded Investment Pre-Modification	$ 139
Recorded Investment Post-Modification	$ 139
Originated \| Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	1
Recorded Investment Pre-Modification	$ 20
Recorded Investment Post-Modification	$ 20
Originated \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	1
Recorded Investment Pre-Modification	$ 184
Recorded Investment Post-Modification	$ 184
Originated \| Construction Contracts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	0
Recorded Investment Pre-Modification	$ 0
Recorded Investment Post-Modification	$ 0
Originated \| Business [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	0
Recorded Investment Pre-Modification	$ 0
Recorded Investment Post-Modification	$ 0
Originated \| Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	0
Recorded Investment Pre-Modification	$ 0
Recorded Investment Post-Modification	$ 0
Purchased
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	0
Recorded Investment Pre-Modification	$ 0
Recorded Investment Post-Modification	$ 0
Purchased \| Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	0
Recorded Investment Pre-Modification	$ 0
Recorded Investment Post-Modification	$ 0
Purchased \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts \| Contract	0
Recorded Investment Pre-Modification	$ 0
Recorded Investment Post-Modification	$ 0

Troubled Debt Restructuring During the Period (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	$ 1,165	$ 93
TDRs, On Nonaccrual Status	139	859
TDRs, Total	1,304	952
Originated
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	1,165	93
TDRs, On Nonaccrual Status	139	859
TDRs, Total	1,304	952
Originated \| Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	92	93
TDRs, On Nonaccrual Status	139	0
TDRs, Total	231	93
Originated \| Home equity
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	20	0
TDRs, On Nonaccrual Status	0	0
TDRs, Total	20	0
Originated \| Commercial real estate
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	1,053	0
TDRs, On Nonaccrual Status	0	859
TDRs, Total	1,053	859
Originated \| Construction Contracts [Member]
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	0	0
TDRs, On Nonaccrual Status	0	0
TDRs, Total	0	0
Originated \| Business [Member]
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	0	0
TDRs, On Nonaccrual Status	0	0
TDRs, Total	0	0
Originated \| Consumer [Member]
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	0	0
TDRs, On Nonaccrual Status	0	0
TDRs, Total	0	0
Purchased
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	0	0
TDRs, On Nonaccrual Status	0	0
TDRs, Total	0	0
Purchased \| Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	0	0
TDRs, On Nonaccrual Status	0	0
TDRs, Total	0	0
Purchased \| Commercial real estate
Financing Receivable, Modifications [Line Items]
TDRs, On Accrual Status	0	0
TDRs, On Nonaccrual Status	0	0
TDRs, Total	$ 0	$ 0

Premises and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Property, Plant and Equipment [Line Items]
Land	$ 1,210	$ 1,251
Buildings	2,120	2,194
Assets recorded under capital lease	1,850	1,850
Leasehold and building improvements	940	903
Furniture, fixtures and equipment	4,909	2,644
Gross premises and equipment	11,029	8,842
Less accumulated depreciation	1,824	571
Net premises and equipment	$ 9,205	$ 8,271

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2011	Dec. 28, 2010	Jun. 30, 2012
Property, Plant and Equipment [Line Items]
Depreciation and amortization of premises and equipment	$ 571	$ 520	$ 1,300

The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production.

Summary of Sale Transactions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale proceeds	$ 9,889
Customer lists and other intangible assets, net	7,380	$ 7,400
Fixed assets, net of accumulated depreciation	164
Severance and other direct expenses	779
Pre-tax gain recognized	$ 1,566	$ 105

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pretax gains	$ 1,566	$ 105
Intangible assets associated with discontinued operations	$ 7,380	$ 7,400
Disposal date of customer lists and certain fixed assets of NBIG		Jun. 30, 2011

Summary of Operations (Detail) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Jun. 30, 2011

$ 1,566

$ 105

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

^[1]

$ (3,207)

(6,317)

^[1]

20,182

9,701

^[1]

7,681

15,634

^[1]

1,627

3,826

^[1]

819

1,708

^[1]

543

1,088

^[1]

663

1,198

^[1]

1,847

3,628

^[1]

17,148

28,255

^[1]

12,552

2,163

Income from discontinued operations before income tax expense

^[1]

1,566

^[1]

186

^[1]

605

Successor | Segment, Discontinued Operations

^[1]

1,147

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Other noninterest income (expense)

Insurance commissions

2,772

965

(4)

2,776

961

1,758

494

237

107

417

124

2,654

761

186

Income from discontinued operations before income tax expense

1,566

1,752

605

$ 45

$ 1,147

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

^[2]

$ (5,877)

^[2]

4,231

^[2]

4,949

^[2]

1,352

^[2]

509

^[2]

521

^[2]

^[2]

1,454

^[2]

9,455

^[2],[3]

1,796

Income from discontinued operations before income tax expense

^[2]

105

^[2]

^[2]

Predecessor | Segment, Discontinued Operations

^[2]

129

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Other noninterest income (expense)

Insurance commissions

2,660

2,660

1,721

204

344

107

2,491

Income from discontinued operations before income tax expense

105

199

$ 129

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[3]	Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Intangible Assets - Additional Information (Detail)	12 Months Ended
Intangible Assets - Additional Information (Detail)	Jun. 30, 2012 Year
Indefinite-lived Intangible Assets [Line Items]
Amortization period of core deposit intangible assets on accelerated basis	9.5

Changes in Carrying Amount of Intangible Assets (Detail) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

^[1]

$ 0

^[2]

$ (663)

$ (1,198)

Goodwill | Predecessor

4,083

4,083

Goodwill | Successor

Core Deposit Intangible | Predecessor

Core Deposit Intangible | Successor

6,348

5,685

(663)

(1,198)

Other Intangibles | Predecessor

5,685

6,348

4,487

6,901

7,288

(344)

(43)

Other Intangibles | Successor

6,901

7,865

7,448

(417)

(68)

(7,380)

Total Identifiable Intangibles | Predecessor

7,448

7,865

6,901

7,288

(344)

(43)

Total Identifiable Intangibles | Successor

6,901

14,213

13,133

(1,080)

(1,266)

(7,380)

$ 13,133

$ 14,213

$ 4,487

[1]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.

Components of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Core Deposit Intangible:
Gross carrying amount	$ 6,348	$ 6,348
Accumulated amortization	(1,861)	(663)
Core deposit intangible, net	4,487	5,685
Other Intangibles:
Gross carrying amount	0	7,865
Accumulated amortization	0	(417)
Finite Lived Intangible Assets Other Net	$ 0	$ 7,448

Estimated Annual Amortization Expense Associated Intangible Assets (Detail) $ in Thousands	Jun. 30, 2012 USD ($)
Indefinite-lived Intangible Assets [Line Items]
2013	$ 943
2014	746
2015	589
2016	477
2017	432
Thereafter	1,300
Intangible Assets Net	$ 4,487

Composition of Deposits (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Deposits [Line Items]
Demand	$ 45,323	$ 48,215
NOW	57,477	55,458
Money market	45,024	48,695
Regular savings	32,727	34,346
Time certificates of less than $100	100,292	121,229
Other time certificates	141,345	93,175
Deposits	$ 422,188	$ 401,118

Maturities of Time Certificates (Detail) $ in Thousands	Jun. 30, 2012 USD ($)
Borrowings [Line Items]
2013	$ 132,569
2014	39,495
2015	32,146
2016	4,023
2017	33,099
Thereafter	305
Time Deposits	$ 241,637

Fixed-Rate Long Term Advances from Federal Home Loan Bank of Boston (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Borrowings [Line Items]
2013	3.81%
Weighted Average Cost
Borrowings [Line Items]
2013	1.46%
2013	0.00%	146.00%
2014	2.30%	0.00%
2015	0.00%	230.00%
2016	3.48%	0.00%
2018	3.84%
2017		3.48%
2018		3.84%
2013	2.47%	2.47%
Debt Accrued And Unpaid Interest
Borrowings [Line Items]
2013	$ 15,000
2013	0	$ 15,000
2014	12,500	0
2015	0	12,500
2016	10,000	0
2018	5,000
2017		10,000
2018		5,000
Federal Home Loan Bank, Advances, Total	42,500	42,500
Carrying Amount
Borrowings [Line Items]
2013	15,194
2013	0	15,450
2014	12,728	0
2015	0	12,831
2016	10,382	0
2018	5,146
2017		10,468
2018		5,173
Federal Home Loan Bank, Advances, Total	$ 43,450	$ 43,922

Borrowings - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Borrowings [Line Items]
Federal home loan bank advances	$ 20.0
Credit arrangement with the FHLB	2.1
Additional capacity to borrow from the FHLB for advances	$ 7.2
Notional amount of cap need to make, period after reset days	90 days
Other borrowings		$ 2.2
Threshold percentage of the fair value of the property	90.00%
Weighted average interest rate on short-term borrowings	2.00%	1.52%

The current portion of Federal Home Loan Bank borrowings initially due beyond one year or beyond the normal operating cycle if longer.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6802200&loc=d3e1835-112601

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.20)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6802200&loc=d3e1895-112601

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 15
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher OTS
-Name Federal Regulation (FR)
-Number Title 12
-Section 563c.102
-Paragraph 18
-Chapter V
-Subsection I
-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 47
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 14
-Subparagraph f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
-Paragraph 37
-IssueDate 2006-05-01
-Chapter 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 16
-Article 9

Junior Subordinated Debentures Issued to Affiliated Trusts [Line Items]

Summary of Structured Repurchase Agreements (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Borrowings [Line Items]
2013	1.22%	1.22%
2014	1.64%	1.64%
2015	0.00%	0.00%
2016	2.75%	2.75%
Structured Repurchase Agreements Weighted Average Cost	1.56%	1.56%
2013	3.81%
2014	3.81%
2015	3.81%
2016	3.81%
Structured repurchase agreements	$ 66,183
Debt Accrued And Unpaid Interest
Borrowings [Line Items]
2013	40,000	$ 40,000
2014	15,000	15,000
2015	0	0
2016	10,000	10,000
Structured repurchase agreements	65,000	65,000
Carrying Amount
Borrowings [Line Items]
2013	40,302	41,641
2014	15,358	15,681
2015	0	0
2016	10,523	10,686
Structured repurchase agreements	$ 66,183	$ 68,008

Future Minimum Lease Payments Over Remaining Term of Lease and Outstanding Capital Lease Obligation (Detail)	Jun. 30, 2012 USD ($)
Borrowings [Line Items]
2013	$ 264,000
2014	264,000
2015	264,000
2016	303,000
2017	306,000
2018 and thereafter	944,000
Total	2,345,000
Less imputed interest	434,000
Capital lease obligation	$ 1,911,000

Junior Subordinated Debentures Issued to Affiliated Trusts - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2012 USD ($) BasisPoint	Jun. 30, 2011 USD ($)
Debt [Line Items]
Auction Market Preferred Securities, Stock Series, Liquidation Value	$ 1,000,000
Outstanding junior subordinated debt from trusts	$ 8,106	$ 7,957
Interest Rate Cap Effective Date of Purchase	Sep. 30, 2009
Derivative, Remaining Maturity	5 years
NEB Capital Trust II
Debt [Line Items]
Common securities of trust	$ 93
NEB Capital Trust III
Debt [Line Items]
Common securities of trust	93
NEB Capital Trust IV
Debt [Line Items]
Common securities of trust	$ 310
Variable rate based on three month LIBOR plus rate	1.89%
Outstanding junior subordinated debt from trusts	$ 10,000
Fixed rate, interest rate swap	4.69%
Interest Rate Cap
Debt [Line Items]
Number of interest rate caps	2
Notional amount of interest rate derivatives	$ 6,000
Interest Rate Cap \| NEB Capital Trust II
Debt [Line Items]
Outstanding junior subordinated debt from trusts	$ 3,000
Strike rate, interest rate cap	2.505%
Interest on junior subordinated debt, increase in basis points \| BasisPoint	200
Interest Rate Cap \| NEB Capital Trust III
Debt [Line Items]
Outstanding junior subordinated debt from trusts	$ 3,000
Strike rate, interest rate cap	2.505%
Interest on junior subordinated debt, increase in basis points \| BasisPoint	200
Interest Rate Swap
Debt [Line Items]
Number of interest rate caps	1
Notional amount of interest rate derivatives	$ 10,000
Maximum
Debt [Line Items]
Variable rate based on three month LIBOR plus rate	2.80%
Annual Rate of Quarterly Distributions of Preferred Securities of Private Trust	3.26%
Minimum
Debt [Line Items]
Variable rate based on three month LIBOR plus rate	1.89%
Annual Rate of Quarterly Distributions of Preferred Securities of Private Trust	2.36%

Summary of Junior Subordinated Debentures Issued by Company to Each Affiliated Trust and Private Trust Securities Issued by Each Affiliated Trust (Detail)
$ in Thousands

12 Months Ended

Jun. 30, 2012

USD ($)

$ 8,106

Junior Subordinated Debentures Issued to Affiliated Trusts [Line Items]

$ 16,496

NEB Capital Trust II

Cost

7.52%

^[1]

Contractual

3.26%

^[1]

$ 1,747

Junior Subordinated Debentures Issued to Affiliated Trusts [Line Items]

$ 3,093

Maturity Date

Mar. 30, 2034

NEB Capital Trust III

Cost

7.52%

^[1]

Contractual

3.26%

^[1]

$ 1,747

Junior Subordinated Debentures Issued to Affiliated Trusts [Line Items]

$ 3,093

Maturity Date

Mar. 30, 2034

NEB Capital Trust IV

Cost

7.67%

^[1]

Contractual

2.36%

^[1]

$ 4,612

$ 10,310

Maturity Date

Feb. 23, 2035

[1]	Excludes effects of hedging instruments

The Company's and Bank's Regulatory Capital Ratios (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Parent Company
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Bank	800.00%	800.00%
Bank	33.34%	18.99%
Bank	400.00%	400.00%
Bank	33.12%	18.86%
Bank	400.00%	400.00%
Bank	19.91%	10.35%
Bank	$ 124,452	$ 61,860
Bank	29,863	26,061
Bank	123,628	61,424
Bank	14,931	13,030
Bank	123,628	61,424
Bank	$ 24,837	$ 23,736
Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Bank	10.00%	10.00%
Bank	800.00%	800.00%
Bank	20.14%	20.43%
Bank	6.00%	6.00%
Bank	400.00%	400.00%
Bank	18.89%	19.18%
Bank	5.00%	5.00%
Bank	400.00%	400.00%
Bank	11.43%	10.69%
Bank	$ 37,280	$ 32,770
Bank	75,081	66,956
Bank	29,824	26,216
Bank	22,365	19,662
Bank	70,414	62,842
Bank	14,910	13,108
Bank	30,802	29,404
Bank	70,414	62,842
Bank	$ 24,642	$ 23,523

Number of Shares Outstanding for Basic and Diluted EPS (Detail) - USD ($)
$ / shares in Units, $ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]

Net income from continuing operations

$ 12,507

$ 1,016

Preferred stock dividends

(107)

(212)

Accretion of preferred stock

(90)

(180)

Net income from continuing operations available to common shareholders

12,310

624

Undistributed earnings of continuing operations allocated to participating securities

Net income from continuing operations allocated to common shareholders

12,264

622

Net income from discontinued operations available to common shareholders

1,147

Undistributed earnings of discontinued operations allocated to participating securities

Net income from discontinued operations allocated to common shareholders

$ 45

$ 1,144

Weighted average shares used in calculation of basic earnings per share

^[1]

3,492,933

4,277,777

Incremental shares from assumed exercise of dilutive securities

55,231

13,575

Weighted average shares used in calculation of diluted earnings per share

3,548,164

4,291,352

Earnings per common share:

^[1]

$ 3.51

$ 0.15

Earnings per common share

^[1]

0.01

0.26

^[1]

3.52

0.41

Diluted earnings per common share:

^[1]

3.46

0.15

Diluted earnings per common share

^[1]

0.01

0.26

^[1]

$ 3.47

$ 0.41

Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]

Net income from continuing operations

$ 1,667

Preferred stock dividends

(104)

Accretion of preferred stock

(15)

Net income from continuing operations available to common shareholders

1,548

Undistributed earnings of continuing operations allocated to participating securities

Net income from continuing operations allocated to common shareholders

1,548

Net income from discontinued operations available to common shareholders

129

Undistributed earnings of discontinued operations allocated to participating securities

Net income from discontinued operations allocated to common shareholders

$ 129

Weighted average shares used in calculation of basic earnings per share

^[2]

2,330,197

Incremental shares from assumed exercise of dilutive securities

24,188

Weighted average shares used in calculation of diluted earnings per share

2,354,385

Earnings per common share:

^[2]

$ 0.66

Earnings per common share

^[2]

0.06

^[2]

0.72

Diluted earnings per common share:

^[2]

0.66

Diluted earnings per common share

^[2]

0.05

^[2]

$ 0.71

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Anti-Dilutive Options and Warrants Excluded from Calculation of Dilutive Earnings per Share (Detail) - shares	6 Months Ended		12 Months Ended
	Jun. 30, 2011	Dec. 28, 2010	Jun. 30, 2012
Successor
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options	162,010		796,049
Successor \| Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options	162,010		796,049
Successor \| Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options	0		0
Predecessor
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options		0
Predecessor \| Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options		0
Predecessor \| Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options		0

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Current and Deferred Components of Income Tax (Benefit) Expense from Continuing Operations (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2011	Dec. 28, 2010	Jun. 30, 2012
Schedule Of Income Taxes [Line Items]
Total deferred provision	$ 3,463		$ 4,993
Successor \| Current Provision
Schedule Of Income Taxes [Line Items]
Federal	(773)		(1,033)
State	146		71
Total current provision (benefit)	(627)		(962)
Successor \| Deferred Provision
Schedule Of Income Taxes [Line Items]
Deferred provision (benefit) Federal	544		1,143
State	0		0
Total deferred provision	544		1,143
Total tax provision (benefit)	$ (83)		$ 181
Predecessor \| Current Provision
Schedule Of Income Taxes [Line Items]
Federal		$ 996
State		45
Total current provision (benefit)		1,041
Predecessor \| Deferred Provision
Schedule Of Income Taxes [Line Items]
Deferred provision (benefit) Federal		(343)
State		0
Total deferred provision		(343)
Total tax provision (benefit)		$ 698

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Investments, Owned, Federal Income Tax Note [Line Items]
Statutory federal income tax rate	34.00%
Reserve for tax basis bad debts on loans		$ 2.0

Total Income Tax Expense from Continuing Operations Difference (Detail) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Schedule Of Income Taxes [Line Items]

Expected income tax expense at federal tax rate

$ 4,224

$ 407

State tax, net of federal tax benefit

Non-taxable merger expense

1,046

Non-taxable bargain purchase gain

(5,250)

Non-taxable interest income

(32)

(7)

Non-taxable BOLI income

(86)

(170)

Low-income housing tax credit

(91)

(118)

Total tax provision (benefit)

^[1]

$ (83)

$ 181

Schedule Of Income Taxes [Line Items]

Expected income tax expense at federal tax rate

$ 804

State tax, net of federal tax benefit

Non-taxable merger expense

Non-taxable bargain purchase gain

Non-taxable interest income

(87)

Non-taxable BOLI income

(87)

Low-income housing tax credit

Total tax provision (benefit)

^[2]

$ 698

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Tax Effect of Temporary Difference (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Deferred tax assets
Allowance for loan losses	$ 280	$ 149
Loan basis differential	629	1,237
Time deposit basis differential	589	1,028
Derivative basis differential	146	196
Capital lease	120	110
Deferred compensation	213	78
Stock-based compensation	418	267
Unrealized loss on derivatives	130	62
Unrealized loss on available for sale securities	0	55
Interest on nonperforming loans	212	151
Limited partnerships	97	78
Other	205	124
Total deferred tax asset	3,039	3,535
Deferred tax liabilities
Goodwill and other intangible assets	(1,526)	(1,224)
Prepaid expenses	(268)	(208)
Premises and equipment	(801)	(487)
Borrowings basis differential	(2,127)	(1,365)
Unrealized gain on available for sale securities	(212)	0
Other	(59)	(179)
Total deferred tax liability	(4,993)	(3,463)
Net deferred tax (liability) asset	$ (1,954)	$ 72

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2011	Dec. 28, 2010	Jun. 30, 2012
Retirement Plans [Line Items]
Deferred compensation expense	$ 112	$ 106	$ 159
401(k) plan
Retirement Plans [Line Items]
Employee Benefit plans , company contributed	$ 179	$ 154	$ 308

Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2011 USD ($)	Dec. 28, 2010 USD ($)	Jun. 30, 2012 USD ($) Day Installment $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares authorized under the plan			810,054
Share options vested under previous plan			10,500
Maximum days of vesting period			50 days
Consecutive trading days			75 days
Restricted stock granted to a senior executive			13,026
Weighted average grant date fair value of restricted stock granted to the senior executive \| $ / shares			$ 13.93
Restricted stock granted to a senior executive, vesting percentage			40.00%
Restricted stock granted to a senior executive, 40% vesting date			Dec. 29, 2012
Restricted stock granted to a senior executive, remaining shares vesting number of annual installments \| Installment			3
Restricted stock granted to a senior executive, remaining shares vesting date start \| Day
Maximum liability payable under performance-based stock appreciation rights total \| $			$ 48
Stock-based compensation \| $	$ 210	$ 0	$ 445

Stock Option Activity (Detail)	12 Months Ended
Stock Option Activity (Detail)	Jun. 30, 2012 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at beginning of period, shares \| shares	764,549
Granted, shares \| shares	40,000
Exercised, shares \| shares	0
Forfeited, shares \| shares	(8,500)
Number \| shares	796,049
Options Exercisable, Shares \| shares	54,175
Options outstanding at beginning of period, Weighted Average Exercise Price \| $ / shares	$ 14.05
Granted, Weighted Average Exercise Price \| $ / shares	12.63
Exercised, Weighted Average Exercise Price \| $ / shares	0
Forfeited, Weighted Average Exercise Price \| $ / shares	13.10
Options outstanding at end of period, Weighted Average Exercise Price \| $ / shares	13.98
Options Exercisable, Weighted Average Exercise Price \| $ / shares	$ 14.11

Stock Option Granted, Valuation Assumptions (Detail)	6 Months Ended	12 Months Ended
Stock Option Granted, Valuation Assumptions (Detail)	Jun. 30, 2012 $ / shares	Jun. 30, 2012 $ / shares
Time Based Shares [Member]
Assumptions:
Dividend yield	2.58%	2.81%
Expected life	10 years	6 years
Expected volatility	27.15%	33.86%
Risk-free interest rate		0.98%
Risk-free interest rate	0.20%
Risk-free interest rate	3.35%
Time Based Shares [Member] \| Minimum
Assumptions:
Weighted average fair value per option	$ 3.86	$ 3.86
Time Based Shares [Member] \| Maximum
Assumptions:
Weighted average fair value per option	$ 4.39	4.39
Performance Based [Member]
Assumptions:
Dividend yield	2.58%
Expected life	10 years
Expected volatility	27.15%
Risk-free interest rate	0.20%
Risk-free interest rate	3.35%
Performance Based [Member] \| Minimum
Assumptions:
Vesting share price for performance-based options	$ 27.86	27.86
Performance Based [Member] \| Maximum
Assumptions:
Vesting share price for performance-based options	34.83	34.83
Weighted average fair value per option	$ 2.48	$ 2.48

Information About Stock Options Outstanding (Detail)	12 Months Ended
Information About Stock Options Outstanding (Detail)	Jun. 30, 2012 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding at end of period, Weighted Average Exercise Price \| $ / shares	$ 13.98
Number \| shares	796,049
Weighted Average Remaining Life	8 years 6 months
Aggregate Intrinsic Value \| $	$ 0
Weighted Average Exercise Price \| $ / shares	$ 14.11
Number \| shares	54,175
Weighted Average Remaining Life	8 years 6 months
Aggregate Intrinsic Value \| $	$ 0
Option 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding at end of period, Weighted Average Exercise Price \| $ / shares	$ 12.63
Number \| shares	40,000
Weighted Average Remaining Life	9 years 7 months
Aggregate Intrinsic Value \| $	$ 0
Weighted Average Exercise Price \| $ / shares	$ 12.63
Number \| shares	0
Weighted Average Remaining Life	9 years 7 months
Aggregate Intrinsic Value \| $	$ 0
Option 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding at end of period, Weighted Average Exercise Price \| $ / shares	$ 13.93
Number \| shares	594,039
Weighted Average Remaining Life	8 years 6 months
Aggregate Intrinsic Value \| $	$ 0
Weighted Average Exercise Price \| $ / shares	$ 13.93
Number \| shares	37,975
Weighted Average Remaining Life	8 years 6 months
Aggregate Intrinsic Value \| $	$ 0
Option 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding at end of period, Weighted Average Exercise Price \| $ / shares	$ 14.52
Number \| shares	162,010
Weighted Average Remaining Life	8 years 6 months
Aggregate Intrinsic Value \| $	$ 0
Weighted Average Exercise Price \| $ / shares	$ 14.52
Number \| shares	16,200
Weighted Average Remaining Life	8 years 6 months
Aggregate Intrinsic Value \| $	$ 0

Estimated Amount and Timing of Future Pre-Tax Stock-Based Compensation Expense (Detail) $ in Thousands	12 Months Ended
	Jun. 30, 2012 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2013	$ 455
2014	441
2015	422
2016	274
2017	69
Total	1,661
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2013	419
2014	405
2015	386
2016	256
2017	69
Total	1,535
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2013	36
2014	36
2015	36
2016	18
2017	0
Total	$ 126

Financial Instruments with Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Contingencies And Commitments [Line Items]
Residential real estate mortgages	$ 10,279	$ 10,646
Construction loans	106	568
Consumer	25	0
Commercial real estate mortgages	361	375
Commercial business loans	1,145	27
Commitment to originate loans	11,916	11,616
Unused lines of credit	36,276	42,385
Standby letters of credit	602	1,233
Unadvanced portions of construction loans	$ 162	$ 431

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks - Additional Information (Detail) sqft in Thousands, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2011 USD ($)	Dec. 28, 2010 USD ($)	Jun. 30, 2012 USD ($) sqft Year	Jun. 30, 2011 USD ($)
Commitments And Contingencies [Line Items]
Allowance for possible losses on commitments and unfunded loans	$ 11		$ 6	$ 11
Maximum potential amount of obligation			602	$ 1,200
Rental expense under leases	$ 438	$ 272	$ 817
Boston [Member]
Commitments And Contingencies [Line Items]
Company executed a lease \| sqft			17
Lease period \| Year			10

Approximate Future Minimum Lease Payments (Detail) $ in Thousands	Jun. 30, 2012 USD ($)
Contingencies And Commitments [Line Items]
2013	$ 738
2014	986
2015	1,095
2016	1,053
2017	938
2018 and thereafter	5,210
Operating Leases, Future Minimum Payments Due, Total	$ 10,020

Condensed Financial Information Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Dec. 28, 2010
Assets:
Cash	$ 128,274	$ 83,931
Other assets	6,212	5,956
Total assets	669,196	596,393	$ 631,585
Liabilities and Stockholders' Equity:
Junior subordinated debentures issued to affiliated trusts	8,106	7,957
Other liabilities	7,010	3,615
Total liabilities	550,057	531,439
Stockholders' equity	119,139	64,954
Total liabilities and stockholders' equity	669,196	596,393
Parent Company
Assets:
Cash	54,996	3,538
Investment in subsidiary	72,849	70,539
Investment in common securities of affiliated trusts	496	496
Other assets	2,047	1,350
Total assets	130,388	75,923
Liabilities and Stockholders' Equity:
Junior subordinated debentures issued to affiliated trusts	8,106	7,957
Other liabilities	3,143	3,012
Total liabilities	11,249	10,969
Stockholders' equity	119,139	64,954
Total liabilities and stockholders' equity	$ 130,388	$ 75,923

Condensed Financial Information Statements of Income (Detail) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Income:

^[1]

$ 15,441

$ 0

^[1]

189

Interest on Junior Subordinated Debentures paid to affiliated trusts

^[1]

13,304

27,014

Expenses:

^[1]

365

751

^[1]

3,207

6,317

Income before equity in undistributed net income of subsidiary

^[1]

(181)

^[1]

12,507

1,016

^[1]

12,552

2,163

Successor | Parent Company

^[1]

12,355

1,771

Income:

Dividends from banking subsidiary

1,500

16,620

Interest on Junior Subordinated Debentures paid to affiliated trusts

16,641

1,526

Expenses:

365

751

General and administrative expenses

3,772

993

(Loss) income before income tax expense and equity in undistributed net income of subsidiary

4,137

1,744

12,504

(218)

Income before equity in undistributed net income of subsidiary

271

589

12,775

371

Equity in undistributed net income of subsidiary

(223)

1,792

12,552

2,163

$ 12,355

$ 1,771

Income:

^[2]

$ 0

^[2]

Interest on Junior Subordinated Debentures paid to affiliated trusts

^[2]

14,378

Expenses:

^[2]

340

^[2]

5,877

Income before equity in undistributed net income of subsidiary

^[2]

(698)

^[2]

1,667

^[2],[3]

1,796

Predecessor | Parent Company

^[2]

1,677

Income:

Dividends from banking subsidiary

1,255

Interest on Junior Subordinated Debentures paid to affiliated trusts

1,273

Expenses:

340

General and administrative expenses

209

(Loss) income before income tax expense and equity in undistributed net income of subsidiary

549

724

Income before equity in undistributed net income of subsidiary

151

875

Equity in undistributed net income of subsidiary

921

1,796

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

$ 1,677

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[3]	Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Condensed Financial Information Statements of Cash Flow (Detail) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

$ 210

$ 0

$ 445

83,931

83,931

128,274

Parent Company

3,538

3,538

54,996

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[1]

12,552

2,163

^[1]

210

445

^[1]

(1,193)

(1,111)

Net cash provided by (used in) operating activities

^[1]

(15,441)

^[1]

(1,379)

(6,966)

Proceeds from sales of available-for-sale securities

^[1]

(206,772)

(185,991)

^[1]

195,666

179,045

Net cash (used in) provided by investing activities

^[1]

56,377

(18,647)

Net cash provided by (used in) financing activities

^[1]

16,201

52,667

^[1]

(29,665)

69,956

Successor | Parent Company

^[1]

25,333

44,343

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

12,552

2,163

Amortization of fair value adjustment for borrowings

149

Undistributed (earnings) loss of subsidiary

210

445

223

(1,792)

(11)

Increase in other assets and liabilities

(16,620)

(756)

(700)

Net cash provided by (used in) operating activities

(4,315)

265

Increase in investment of bank subsidiary

(9,150)

Proceeds from sales of available-for-sale securities

576

Net cash (used in) provided by investing activities

(8,574)

Dividends paid to stockholders

16,201

52,667

(736)

(1,474)

Net cash provided by (used in) financing activities

15,465

51,193

2,576

51,458

962

3,538

3,538

962

$ 54,996

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

^[2],[3]

1,796

^[2]

^[2]

(17)

Net cash provided by (used in) operating activities

^[2]

^[2]

9,737

Proceeds from sales of available-for-sale securities

^[2]

(19,001)

^[2]

173

Net cash (used in) provided by investing activities

^[2]

22,167

Net cash provided by (used in) financing activities

^[2]

^[2]

6,259

Predecessor | Parent Company

^[2]

38,163

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

1,796

Amortization of fair value adjustment for borrowings

Undistributed (earnings) loss of subsidiary

(921)

(5)

Increase in other assets and liabilities

(273)

Net cash provided by (used in) operating activities

598

Increase in investment of bank subsidiary

Proceeds from sales of available-for-sale securities

(1)

173

Net cash (used in) provided by investing activities

172

Dividends paid to stockholders

(525)

Net cash provided by (used in) financing activities

(463)

307

$ 962

655

Other Comprehensive Income [Line Items]

$ 962

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[3]	Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Accumulated Other Comprehensive Income (Loss) Components (Detail) - USD ($)
$ in Thousands

6 Months Ended

12 Months Ended

2172 Months Ended

Jun. 30, 2011

Dec. 28, 2010

Jun. 30, 2012

Jun. 30, 2011

Dec. 28, 2010

Unrealized gain (loss) on available-for-sale securities

$ (161)

$ 624

$ (161)

Tax effect

(212)

Net-of-tax amount

412

(106)

Unrealized loss on cash flow hedges

(384)

(182)

Tax effect

130

Net-of-tax amount

(254)

(120)

Accumulated other comprehensive income (loss)

(226)

158

$ (226)

Other Comprehensive Income [Line Items]

Unrealized holding gains on available-for-sale securities

353

645

Unrealized gains (losses) on available-for-sale securities, net

408

378

(55)

267

(46)

(41)

(61)

(68)

Unrealized holding gains on available-for-sale securities

(116)

199

686

1,251

Unrealized gains (losses) on available-for-sale securities, net

792

733

^[1]

(106)

518

(91)

(81)

^[1]

(120)

(134)

Unrealized holding gains on available-for-sale securities

^[1]

(226)

384

1,039

1,896

Unrealized gains (losses) on available-for-sale securities, net

1,200

1,111

(161)

785

(137)

(122)

(181)

(202)

$ (342)

$ 583

Other Comprehensive Income [Line Items]

Unrealized holding gains on available-for-sale securities

$ (954)

Unrealized gains (losses) on available-for-sale securities, net

(960)

(6)

Unrealized holding gains on available-for-sale securities

$ (966)

$ (1,852)

Unrealized gains (losses) on available-for-sale securities, net

^[2]

(1,863)

(10)

^[2]

(10)

Unrealized holding gains on available-for-sale securities

^[2],[3]

(1,873)

(2,806)

Unrealized gains (losses) on available-for-sale securities, net

(2,823)

(16)

$ (2,839)

[1]	"Successor Company" means Northeast Bancorp and its subsidiary after the closing of the merger with FHB Formation LLC on December 29, 2010.
[2]	Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.
[3]	"Predecessor Company" means Northeast Bancorp and its subsidiary before the closing of the merger with FHB Formation LLC on December 29, 2010.

Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities		$ 216
Trust preferred securities		451
U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Debt securities issued by U.S. Government sponsored enterprises	$ 45,808	48,737
Agency Mortgage-backed Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Agency mortgage-backed securities	87,456	99,558
Interest Rate Caps
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other assets - interest rate caps	1	46
Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other liabilities - interest rate swap	580	503
Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities		216
Trust preferred securities		451
Fair Value, Inputs, Level 1 \| U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Debt securities issued by U.S. Government sponsored enterprises	0	0
Fair Value, Inputs, Level 1 \| Agency Mortgage-backed Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Agency mortgage-backed securities	0	0
Fair Value, Inputs, Level 1 \| Interest Rate Caps
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other assets - interest rate caps	0	0
Fair Value, Inputs, Level 1 \| Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other liabilities - interest rate swap	0	0
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities		0
Trust preferred securities		0
Fair Value, Inputs, Level 2 \| U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Debt securities issued by U.S. Government sponsored enterprises	45,808	48,737
Fair Value, Inputs, Level 2 \| Agency Mortgage-backed Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Agency mortgage-backed securities	87,456	99,558
Fair Value, Inputs, Level 2 \| Interest Rate Caps
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other assets - interest rate caps	1	46
Fair Value, Inputs, Level 2 \| Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other liabilities - interest rate swap	580	0
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities		0
Trust preferred securities		0
Fair Value, Inputs, Level 3 \| U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Debt securities issued by U.S. Government sponsored enterprises	0	0
Fair Value, Inputs, Level 3 \| Agency Mortgage-backed Securities
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Agency mortgage-backed securities	0	0
Fair Value, Inputs, Level 3 \| Interest Rate Caps
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other assets - interest rate caps	0	0
Fair Value, Inputs, Level 3 \| Interest Rate Swap
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other liabilities - interest rate swap	$ 0	$ 503

Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans	$ 1,103	$ 1,426
Repossessed collateral	834	690
Premises		361
Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans	0	0
Repossessed collateral	0	0
Premises		0
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans	0	0
Repossessed collateral	0	0
Premises		0
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Impaired loans	1,103	1,426
Repossessed collateral	$ 834	690
Premises		$ 361

Estimated Fair Value of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Fair Value Of Financial Instruments [Line Items]
Cash and cash equivalents	$ 128,274	$ 83,931
Available-for-sale securities	133,264	148,962
Regulatory stock	5,473	5,760
Loans held for sale	9,882	5,176
Loans, net	355,430	309,476
Accrued interest receivable	1,840	1,244
Interest rate caps	1	46
Cash and cash equivalents	128,274	83,931
Available-for-sale securities	133,264	148,962
Regulatory stock	5,473	5,760
Loans held for sale	9,896	5,209
Loans, net	374,062	316,361
Accrued interest receivable	1,840	1,244
Interest rate caps	1	46
Deposits	422,188	401,118
FHLB advances	43,450	43,922
Structured repurchase agreements	66,183	68,008
Structured repurchase agreements	66,183
Other borrowings	0	2,229
Short-term borrowings	1,209	2,515
Capital lease obligation	1,911	2,075
Subordinated debentures	8,106	7,957
Interest rate swaps	580	503
Deposits	425,782	403,481
FHLB advances	45,747	45,465
Structured repurchase agreements	67,314	69,364
Other borrowings		2,280
Short-term borrowings	1,209	2,515
Capital lease obligation	2,202	2,306
Subordinated debentures	8,597	7,979
Interest rate swaps	580	503
Fair Value, Inputs, Level 1
Fair Value Of Financial Instruments [Line Items]
Interest rate caps	0	0
Cash and cash equivalents	128,274	83,931
Available-for-sale securities	0	0
Regulatory stock	0	0
Loans held for sale	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Interest rate caps	0	0
Deposits	0	0
FHLB advances	0	0
Structured repurchase agreements	0	0
Other borrowings		0
Short-term borrowings	0	0
Capital lease obligation	0	0
Subordinated debentures	0	0
Interest rate swaps	0	0
Fair Value, Inputs, Level 2
Fair Value Of Financial Instruments [Line Items]
Interest rate caps	1	46
Cash and cash equivalents	0	0
Available-for-sale securities	133,264	148,962
Regulatory stock	5,473	5,760
Loans held for sale	9,896	5,209
Loans, net	0	0
Accrued interest receivable	1,840	1,244
Interest rate caps	1	46
Deposits	0	0
FHLB advances	45,747	45,465
Structured repurchase agreements	67,314	69,364
Other borrowings		2,280
Short-term borrowings	1,209	2,515
Capital lease obligation	2,202	2,306
Subordinated debentures	0	0
Interest rate swaps	580	0
Fair Value, Inputs, Level 3
Fair Value Of Financial Instruments [Line Items]
Interest rate caps	0	0
Cash and cash equivalents	0	0
Available-for-sale securities	0	0
Regulatory stock	0	0
Loans held for sale	0	0
Loans, net	374,062	316,361
Accrued interest receivable	0	0
Interest rate caps	0	0
Deposits	425,782	403,481
FHLB advances	0	0
Structured repurchase agreements	0	0
Other borrowings		0
Short-term borrowings	0	0
Capital lease obligation	0	0
Subordinated debentures	8,597	7,979
Interest rate swaps	$ 0	$ 503

Derivatives - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2011	Jun. 30, 2012
Derivative [Line Items]
Hedge gain reclassified as interest expense		$ 80
Interest Rate Cap \| Swaption
Derivative [Line Items]
Income on hedge ineffectiveness	$ 44	$ 80

Outstanding Interest Rate Caps and Swap Agreements Used to Hedge Variable Rate Debt (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Interest Rate Cap
Derivative [Line Items]
Notional amount	$ 6,000	$ 6,000
Strike rate based on three month LIBOR	2.51%	2.51%
Weighted average maturity in years	2 years 3 months	3 years 3 months
Unrealized loss	$ 69	$ 45
Interest Rate Swap
Derivative [Line Items]
Notional amount	$ 10,000	$ 10,000
Weighted average pay rate	4.69%	4.69%
Weighted average receive rate	2.36%	2.23%
Weighted average maturity in years	2 years 4 months	3 years 4 months
Unrealized loss	$ 315	$ 137

Fair Values and Location of Derivatives Designated as Hedging Instruments (Detail) - USD ($)	Jun. 30, 2012	Jun. 30, 2011
Interest Rate Cap
Derivative [Line Items]
Interest rate caps	$ 1	$ 46
Interest Rate Swap
Derivative [Line Items]
Interest rate swap	$ 580	$ 503

Troubled Asset Relief Capital Purchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 12, 2008
Preferred Stock [Line Items]
Cumulative perpetual preferred stock shares issued			4,227
Liquidation preference	$ 1,000	$ 1,000	$ 1,000
Number of shares to be purchased by common stock warrant			67,958
Aggregate proceeds issuance of cumulative perpetual preferred stock	$ 4.2
TARP Warrant exercisable price	$ 9.33
Minimum
Preferred Stock [Line Items]
Cumulative dividends rate	5.00%
Maximum
Preferred Stock [Line Items]
Cumulative dividends rate	9.00%

The per share liquidation preference (or restrictions) of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) that has a preference in involuntary liquidation considerably in excess of the par or stated value of the shares. The liquidation preference is the difference between the preference in liquidation and the par or stated values of the share.