industrial loans was primarily related to reduced line of credit utilization during the three months ended September 30, 2022, as well as, forgiveness of PPP loans which declined $1.6 million from $1.8 million at June 30, 2022 to $191,000 at September 30, 2022. The decrease in consumer loans was primarily related to reduced line of credit utilization during the three months ended September 30, 2022.
Deposits. Total deposits increased $98.7 million, or 5.9%, to $1.78 billion at September 30, 2022 from $1.68 billion at June 30, 2022. The increase in deposits was primarily related to an increase in non-interest bearing demand accounts of $114.8 million, or 19.3%, to $708.3 million at September 30, 2022 from $593.5 million at June 30, 2022 and an increase in demand accounts of $40.1 million, or 21.9%, to $222.9 million at September 30, 2022 from $182.8 million at June 30, 2022. These increases were partially offset by a decrease in money market accounts of $42.5 million, or 8.5%, to $454.7 million at September 30, 2022 from $497.2 million at June 30, 2022, a decrease in savings accounts of $2.3 million, or 0.7%, to $324.0 million at September 30, 2022 from $326.3 million at June 30, 2022 and a decrease in certificates of deposit of $11.4 million, or 14.2%, to $69.2 million at September 30, 2022 from $80.6 million at June 30, 2022. The increase in non-interest-bearing demand accounts and interest-bearing demand accounts was primarily related to growth in municipal deposits due to seasonality. The decrease in money market accounts was principally related to outflows in municipal depositor accounts. The decrease in certificates of deposit was primarily due to the maturity of various accounts.
Total Shareholders’ Equity. Total shareholders’ equity decreased $918,000, or 0.4%, to $241.7 million at September 30, 2022 from $242.6 million at June 30, 2022 primarily as a result of an increase in unrealized holding losses on securities available for sale of $6.3 million due to the increase in market interest rates, largely offset by net income of $5.2 million for the three month period ended September 30, 2022.
Comparison of Operating Results for the Three Months Ended September 30, 2022 and September 30, 2021
General. Net income increased by $3.9 million, or 285.7%, to $5.2 million for the three months ended September 30, 2022 as compared to $1.4 million for the three months ended September 30, 2021. The increase was primarily due to a $4.4 million increase in net interest income, a $605,000 increase in non-interest income and a $130,000 decrease in the provision for loan losses, offset in part by a $462,000 increase in non-interest expense and a $843,000 increase in income tax expense.
Interest and Dividend Income. Interest and dividend income increased $4.6 million, or 43.1%, to $15.2 million for the three months ended September 30, 2022, from $10.6 million for the three months ended September 30, 2021 due to increases in interest income on loans, securities, and interest-earning deposits and other. The increase was the result of an 83 basis points increase in the average yield on interest-earning assets to 3.34% for the three months ended September 30, 2022, from 2.51% for the three months ended September 30, 2021. The increase in the average yield on interest-earning assets was driven by a significant increase in variable rate loan yields and yields on interest-earning deposits with banks due to rising market interest rates, as well as due to market related increases in interest rates on new loans and securities. Average interest-earning assets also increased by $132.7 million from $1.69 billion for the three months ended September 30, 2021 to $1.83 billion for the three months ended September 30, 2022.
Interest income on loans increased $1.5 million, or 14.7%, to $11.5 million for the three months ended September 30, 2022 from $10.0 million for the three months ended September 30, 2021. Interest income on loans increased due to an 84 basis points increase in the average yield on loans to 4.63% for the three months ended September 30, 2022 from 3.79% for the three months ended September 30, 2022, offset in part by a $60.6 million decrease in the average balance of loans to $1.00 billion for the three months ended September 30, 2022 from $1.06 billion for the three months ended September 30, 2021. The increase in average yield on loans was primarily due to loans tied to variable short-term rates, offset in part by a $575,000 decrease in PPP loan related interest income to $44,000 for the three months ended September 30, 2022 from $619,000 for the three months ended September 30, 2021. The decrease in the average balance of loans was principally due to commercial loan payoffs and forgiveness of customer PPP loans.
Interest income on securities increased $1.5 million, or 349.8%, to $1.9 million for the three months ended September 30, 2022 from $430,000 for the three months ended September 30, 2021. Interest income on securities increased due to an 89 basis points increase in the average yield on securities to 1.49% for the three months ended September 30, 2022 from 0.60% for the three months ended September 30, 2021, as well as, a $231.7 million increase in the average