The First Bancorp, a Damariscotta-based community bank, said first quarter net income dropped 7.3 percent from the year-ago quarter due to continued economic weakness, higher credit losses and low interest rates.

Net income totaled $2.9 million, down 7.3 percent from the first-quarter a year ago. On a per share basis, earnings were 28 cents a share, down 3.4 percent from the comparable period last year. Total assets increased 3.7 percent, the company said.

“Economic weakness has resulted in higher credit losses while low interest rates have created margin compression and lower net interest income,” Chief Executive and President Daniel Daigneault said in a statement.

Unemployment and weak real estate prices, especially along Maine’s coast, will be two major factors that will continue to hurt the company’s performance, First Bancorp said. The bank has 14 offices in Lincoln, Knox, Hancock and Washington counties.