Total non-interest income in the first quarter of 2022 decreased by $279,000, or 6.0%, from the prior year's first quarter. Net realized gains on loans held for sale decreased by $400,000, or 80.8%, due to the lower level of residential mortgage loan production which reflects a reduced level of mortgage loan refinance activity. The reduced level of mortgage loan production also caused mortgage related fees to decline by $97,000, or 74.6%. Revenue from bank owned life insurance (BOLI) also dropped by $123,000, or 37.0%, after the Company received a death claim during last year’s first quarter. These unfavorable items were partially offset by wealth management fees increasing by $293,000, or 10.2%, in the first quarter of 2022 compared to the same time period in 2021. The entire wealth management group continues to perform exceptionally well, actively working for clients to increase the value of their holdings in the financial markets and adding new business. The fair market value of wealth management assets declined since the fourth quarter of 2021 and totaled $2.6 billion but has increased from the early pandemic fair market value low point on March 31, 2020 by $649.1 million, or 32.7%. Finally, service charges on deposit accounts increased by $71,000, or 35.3%, as consumers are more active this year, increasing their spending habits.
The Company's total non-interest expense in the first quarter of 2022 increased by $174,000, or 1.5%, when compared to the first quarter of 2021. The increase was due to higher salaries & employee benefits by $464,000, or 6.7%, and increased occupancy expense by $61,000, or 9.0%. Within total salaries & benefits expense, salaries cost increased by $369,000 due to merit increases and slightly higher full-time equivalent employees. Also, there were additional increases to payroll taxes and health care costs. Partially offsetting these higher costs within salaries & benefits was lower incentive compensation by $107,000, or 19.6%, due to the reduced level of loan production. The higher level of net occupancy expenses is due to increased utilities cost along with maintenance & repair expense which was primarily related to the new branch office. Decreasing in the first quarter of 2022 when compared to the first quarter of 2021 were other expenses by $358,000, or 19.6%. The decrease is due to a lower level of pension related costs by $272,000 due to improved asset returns within the pension plan. Also contributing to the lower level of other expense was no additional costs related to a branch acquisition in 2022 after $110,000 of expense was recognized for this purpose in the first quarter of 2021. Other expense was also favorably impacted by a $41,000 credit for the unfunded commitment reserve after $37,000 of expense was recognized in the first quarter of last year, resulting in a $78,000 favorable shift. Finally, the Company recorded an income tax expense of $605,000, or an effective tax rate of 20.0%, in the first quarter of 2022. This compares to an income tax expense of $520,000, or an effective tax rate of 20.0%, for the first quarter of 2021.
COMMON STOCK DIVIDEND INCREASE
The Company also announced that its Board of Directors declared a $0.03 per share quarterly common stock cash dividend. This new quarterly dividend amount represents a 20% increase from the previous $0.025 per share quarterly dividend. The cash dividend is payable May 23, 2022 to shareholders of record on May 9, 2022. This increased cash dividend represents an approximate 3.0% annualized yield using a recent common stock price of $4.00 and represents a payout ratio of 21.4% based upon the Company's reported first quarter 2022 earnings per share of $0.14.
The Company had total assets of $1.3 billion, shareholders' equity of $113.7 million, a book value of $6.65 per common share and a tangible book value(1) of $5.84 per common share on March 31, 2022. The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, market conditions, dividend program, and future payment obligations. These statements may be identified by such forward-looking terminology as "continuing," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy," or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, unanticipated changes in the financial markets, the level of inflation, and the direction of interest rates; volatility in earnings due to certain financial assets and liabilities held at fair value; competition levels; loan and investment prepayments differing from our assumptions; insufficient allowance for credit losses; a higher level of loan charge-offs and delinquencies than anticipated; material adverse changes in our operations or earnings; a decline in the economy in our market areas; changes in relationships with major customers; changes in effective income tax rates; higher or lower cash flow levels than anticipated; inability to hire or retain qualified employees; a decline in the levels of deposits or loss of alternate funding sources; a decrease in loan origination volume or an inability to close loans currently in the pipeline; changes in laws and regulations; adoption, interpretation and implementation of accounting pronouncements; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects of our banking platform; risks and uncertainties relating to the duration of the COVID-19 pandemic, and actions that may be taken by governmental authorities to contain the pandemic or to treat its impact; and the inability to successfully implement or expand new lines of business or new products and services. These forward-looking statements involve risks and uncertainties that could cause AmeriServ's results to differ materially from management's current expectations. Such risks and uncertainties are detailed in AmeriServ's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021. Forward-looking statements are based on the beliefs and assumptions of AmeriServ's management and on currently available information. The
