Total borrowings from the FHLB increased $63,000, or 0.1%, to $47.7 million at March 31, 2023 from $47.6 million at December 31, 2022 due to replacement of advances that matured during the first quarter of 2023.
Stockholders’ Equity. Stockholders’ equity increased $304,000, or 0.7%, to $46.3 million at March 31, 2023 from $46.0 million at December 31, 2022. The increase was due to an increase of $409,000 for current period net income and a decrease of $399,000 in accumulated other comprehensive loss as a result of an increase in the fair market value of our debt securities available-for-sale year to date 2023, partially offset by the repurchase of 35,651 shares of stock for $498,000.
Comparison of Operating Results for the Three Months Ended March 31, 2023 and March 31, 2022
General. Net income increased $164,000, or 66.9%, to $409,000 for the three months ended March 31, 2023 from $245,000 for the three months ended March 31, 2022. The $164,000 period over period increase in earnings was attributable to a $1.6 million increase in interest and dividend income and a $16,000 increase in noninterest income, partially offset by a $740,000 increase in interest expenses, a $533,000 increase in noninterest expense, a $235,000 increase in income tax expense; and a $93,000 increase in the provision for credit losses.
Interest and dividend income. Total interest and dividend income increased $1.6 million, or 56.9%, to $4.4 million for the three months ended March 31, 2023 from $2.8 million for the three months ended March 31, 2022. The increase in interest and dividend income was the result of a 130 basis points increase in the average yield on interest-earning assets. The average yield on average interest-earning assets increased to 4.66% for the three months ended March 31, 2023 from 3.36% for the three months ended March 31, 2022. The increase was also due to a $44.9 million increase period over period in the average balance of interest-earning assets, driven by a $39.5 million increase in average loan balances and an $8.8 million increase in the average balance of debt and equity securities available for sale, partially offset by a $4.5 million decrease in the average balance of cash and cash equivalents.
Interest income on loans, including fees, increased $1.1 million, or 40.5%, to $3.8 million for the three months ended March 31, 2023 as compared to $2.7 million for the three months ended March 31, 2022, reflecting a 93 basis points increase in the average yield on loans to 5.05% for the three months ended March 31, 2023 from 4.12% for the three months ended March 31, 2022 and an increase in the average balance of loans to $304.4 million for the three months ended March 31, 2023 from $264.9 million for the three months ended March 31, 2022. The average yield on loans increased as a result of the higher interest rate environment when new loans were originated and the increase in the variable rate loan yields. The increase in the average balance of loans was due primarily to an increase in the average balances of commercial real estate loans reflecting our strategy to grow commercial lending. The three months ended March 31, 2023 and 2022 included $-0- and $28,000, respectively, of PPP loan income in interest and net fees.
Interest income on securities and restricted stocks increased $114,000, or 165.2%, to $183,000 for the three months ended March 31, 2023 from $69,000 for the three months ended March 31, 2022. The increase in interest income on debt and equity securities available for sale of $83,000 for the three months ended March 31, 2023 from the three months ended March 31, 2022 was due to a 70 basis points increase in the average yield on debt and equity securities available for sale to 1.63% for the three months ended March 31, 2023 from 0.93% for the three months ended March 31, 2022 and an increase in the average balance of debt and equity securities available for sale of $8.8 million, or 33.8%, to $34.8 million for the three months ended March 31, 2023 from $26.0 million for the three months ended March 31, 2022. The increase in the average yield and balance of debt and equity securities available for sale was primarily due to the purchase of higher yielding treasury securities during 2022. Restricted stock income is also included in the interest income on securities. Restricted stock income increased $31,000 for the three months ended March 31, 2023 from the three months ended March 31, 2022 due to a 477 basis points increase in the average yield on restricted stocks to 7.40% for the three months ended March 31, 2023 from 2.63% for the three months ended March 31, 2022 and due to an increase in the average balance of restricted stocks of $778,000, or 53.6%, to $2.2 million for the three months ended March 31, 2023 from $1.5 million for the three months ended March 31, 2022. The increase in average yield on restricted stock was due to the Federal Home Loan Bank dividend increasing and the average balance in restricted stocks increased due to increases in Federal Home Loan Bank borrowings that requires an increase in restricted stock.