losses during the fourth quarter of 2023. Overall, the Company continues to maintain solid coverage of both total loans and non-performing assets as the allowance for loan credit losses provided 120% coverage of non-performing assets and 1.43% of total loans at March 31, 2024.
Total non-interest income in the first quarter of 2024 decreased by $560,000, or 10.2%, from the prior year's first quarter. The decrease is primarily attributed to the Company recognizing a $1.7 million gain in the first quarter of 2023 from AmeriServ Financial Bank selling all 7,859 shares of the Class B common stock of Visa Inc. There was no such gain during the first quarter of this year. Other income is $555,000, or 121.4%, higher for the first quarter of 2024 due to the Company recognizing a $250,000 signing bonus that resulted from successful negotiations related to the renewal of an expiring contract with Visa. Also contributing to the favorable comparison in other income between quarters was a favorable adjustment to the fair market value of an interest rate swap related risk participation agreement as well as the recognition of a positive credit valuation adjustment to the market value of the interest rate swap contracts that the Company executed to accommodate the needs of certain borrowers while managing our interest rate risk position. These favorable adjustments totaled $166,000 and were impacted by the increase in interest rates since year-end 2023. Wealth management fees improved by $528,000, or 19.3%, to a record level for the first quarter of 2024 due in part to strong performance from our Financial Services division that resulted from new business growth. Also, the increase in wealth management fees reflects the improving market conditions particularly for equity securities as major market indexes have risen to record highs during the first quarter of 2024. Overall, the fair market value of wealth management assets totaled $2.6 billion at March 31, 2024 and increased by $248.5 million, or 10.6%, since March 31, 2023. Finally, bank owned life insurance revenue (BOLI) increased by $98,000 due to the receipt of a death claim.
Total non-interest expense in the first quarter of 2024 decreased by $99,000, or 0.8%, when compared to the first quarter of 2023. Salaries and employee benefits expense decreased by $58,000, or 0.8%, due to the net impact of certain items within this broad category. Total health care cost was $406,000, or 41.1%, lower compared to last year’s first quarter and reflects management’s effective negotiations with our current health care provider that resulted in not having to recognize any premium costs in January 2024. This favorable item was partially offset by an increased level of incentive compensation by $243,000, or 89.2%, which corresponds to the strong performance of our wealth management division. There was also a smaller credit recognized for pension expense by $101,000 in comparison to last year’s first quarter. Professional fees decreased by $306,000, or 23.4%, primarily due to lower expenses for legal and professional services costs caused by litigation and responses to the actions of an activist investor. FDIC insurance increased by $130,000, or 104.0%, due to an increase in both the asset assessment base as well as the assessment rate. Data processing and IT expenses increased by $81,000, or 7.5%, in the first quarter of 2024 due to additional expenses related to monitoring our computing and network environment. The Company recorded income tax expense of $483,000, or an effective tax rate of 20.2%, in the first quarter of 2024, which compares to income tax expense of $372,000, or an effective tax rate of 19.7%, for the first quarter of 2023.
The Company had total assets of $1.385 billion, shareholders' equity of $103.9 million, a book value of $6.06 per common share and a tangible book value(1) of $5.26 per common share on March 31, 2024. The Company continued to maintain strong capital ratios that exceed the regulatory defined well capitalized status as of March 31, 2024.
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; ability to successfully execute the Earnings Improvement Program and achieve the anticipated benefits in the amounts and at times estimated; operational risks, including the risk of fraud by employees, customers or outsiders; unanticipated effects to our banking platform; expense and reputational impact on the Company as a result of litigation by, and other continuing activities of, an activist shareholder; 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, 2023. Forward-looking statements are based on the
