security, as well as, purchases of other municipal obligations offset by scheduled maturities of municipal obligations during the three months ended September 30, 2021.
Equity Securities. Total equity securities decreased $846,000, or 29.4%, to $2.0 million at September 30, 2021 from $2.9 million at June 30, 2021 primarily due to the sale of various securities for proceeds of $803,000 as well as investment losses during the three months ended September 30, 2021.
Net Loans. Net loans of $1.05 billion at September 30, 2021 decreased $32.5 million, or 3.0%, from $1.08 billion at June 30, 2021. By loan category, commercial and industrial loans decreased by $21.6 million, or 12.8%, to $146.3 million at September 30, 2021 from $167.9 million at June 30, 2021, commercial construction loans decreased by $18.4 million, or 28.3%, to $46.5 million at September 30, 2021 from $64.9 million at June 30, 2021, consumer loans decreased by $4.5 million, or 17.4%, to $21.1 million at September 30, 2021 from $25.6 million at June 30, 2021 and one-to four-family residential real estate loans decreased by $2.8 million, or 1.0%, to $276.7 million at September 30, 2021 from $279.5 million at June 30, 2021. These decreases were somewhat offset by an increase in commercial real estate loans of $11.9 million, or 2.4%, to $502.0 million at September 30, 2021 from $490.1 million at June 30, 2021 and an increase in home equity loans and lines of credit of $2.0 million, or 2.6%, to $77.5 million at September 30, 2021 from $75.5 million at June 30, 2021. The decrease in commercial and industrial loans was related to forgiveness of PPP loans, as well as, paydowns and reduced line of credit utilization during the three months ended September 30, 2021. The decrease in commercial construction loans was related to the conversion of loans to permanent financing. The decrease in consumer loans was related to reduced line of credit utilization. The increase in commercial real estate loans was mainly related to the conversion of commercial construction loans to permanent financing, largely offset by loan payoffs.
Deposits. Total deposits increased $173.5 million, or 11.3%, to $1.70 billion at September 30, 2021 from $1.53 billion at June 30, 2021. The increase in deposits was primarily related to an increase in non-interest bearing demand accounts of $133.1 million, or 26.3%, to $638.0 million at September 30, 2021 from $504.9 million at June 30, 2021, an increase in interest-bearing demand accounts of $28.2 million, or 16.1%, to $204.0 million at September 30, 2021 from $175.8 million at June 30, 2021, an increase in money market accounts of $12.9 million, or 2.8%, to $467.4 million at September 30, 2021 from $454.5 million at June 30, 2021 and an increase in savings accounts of $3.8 million, or 1.3%, to $304.6 million at September 30, 2021 from $300.8 million at June 30, 2021. These increases were partially offset by a decrease in certificates of deposit of $4.5 million, or 4.7%, to $90.4 million at September 30, 2021 from $94.9 million at June 30, 2021. The increase in non-interest bearing demand accounts, interest-bearing demand accounts and money market accounts was primarily related to seasonal deposit growth of municipal deposit customers, as well as growth in commercial deposit relationships. The decrease in certificates of deposit was primarily due to the maturity of various accounts.
Total Shareholders’ Equity. Total shareholders’ equity increased $1.3 million, or 0.6%, to $239.1 million at September 30, 2021 from $237.8 million at June 30, 2021 primarily as a result from net income of $1.4 million for the three month period ended September 30, 2021.
Comparison of Operating Results for the Three Months Ended September 30, 2021 and September 30, 2020
General. Net income decreased by $37,000, or 2.7%, to $1.4 million for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020. The decrease was primarily due to a $328,000 decrease in non-interest income, an $115,000 decrease in net interest income and an $111,000 increase in income tax expense, offset by a $500,000 decrease in the provision for loan losses, and a $17,000 decrease in non-interest expense.
Interest and Dividend Income. Interest and dividend income decreased $449,000, or 4.1%, to $10.6 million for the three months ended September 30, 2021, from $11.1 million for the three months ended September 30, 2020 primarily due to a decrease in interest income on loans, offset by increases in interest income on securities and interest-earning deposits. The decrease reflected a 70 basis points decrease in the average yield on interest-earning assets to 2.51% for the three months ended September 30, 2021, from 3.21% for the three months ended September 30, 2020, offset by a $311.9 million increase in the average balance of interest-earning assets.
Interest income on loans decreased $630,000, or 5.9%, to $10.0 million for the three months ended September 30, 2021 from $10.7 million for the three months ended September 30, 2020. Interest income on loans decreased primarily due to a $75.5 million decrease in the average balance of loans to $1.06 billion for the three months ended September 30,