Now turning into Slide 13. In the fourth quarter we saw a continued strength in the development of our deposit franchise. Average deposits increase 10% year-over-year led by money market and demand deposits which were up $337 million and $73 million respectively. On a linked quarter basis, average deposits increased 5%. As Clay mentioned earlier, in the call, the private banking franchise on the West Coast made tremendous strides in 2014. Deposits, excluding CDs, increased 41% year-over-year in Southern California and 12% in the San Francisco Bay Area. CDs now make up 16% of the deposits based in Southern California, down from 24% at the end of 2013. In San Francisco Bay, CDs are 12% of total deposits down from 18% last year.
Slide 14 contains the financial information for the newly formed Boston Private Wealth Management segment. The third quarter 2014 data represents the Legacy Bank wealth management business. While the fourth quarter data shows the result for the combined Banyan and Legacy Wealth Management and Trust businesses. At the end of the third quarter Boston Private Wealth Management, at $13.3 million of revenue, $2.3 million of EBITDA, and $9.3 billion of assets under management. Peter Raimondi, CEO of Boston Private Wealth is working with our private banking leadership to accelerate cross-selling, further promote the Boston Private brand and further develop our distribution channels. Now I will turn you back to Clay.
Mr. Clayton Deutsch, President and Chief Executive Officer
Thanks Mark. Let’s go to Slide 15. Total revenue for the investment management segment, decreased 4% year-over-year in the fourth quarter due to lower year-end performance fees at Dalton, Greiner. Excluding the impact of performance fees, total revenue increased 3% from the fourth quarter of 2013 while operating expenses fell 3% for the same period. Fourth quarter 2014 segment EBITDA margin was 35%, up 2 basis points linked quarter. The segment overall reported net AUM outflows of $258 million for the quarter reflecting on-going pressure on active domestic equity strategies. Client re-balancing continues to drive the majority of net outflows. Slide 16, outlines the performance of the Investment Management segment for the full year. Pretax income from continuing operations increased 15% in 2014. Revenue increased 7% while operating expenses grew 5%, resulting in 200 basis points of positive operating leverage for the segment.
On slide 17, our wealth advisers reported an 11% year-over-year increase in revenue for the fourth quarter of 2014 to $12.5 million. Operating expenses increased 15% due to staff expansion, new office space, and professional fees. The segments fourth quarter EBITDA margin of 32%, remains above our target of 30%. Segment AUM increased 6% on a year-over-year basis. Linked quarter, AUM was up 2% to $9.9 billion. Wealth advisory net inflows were $51 million as compared to net inflows of $40 million last quarter and $68 million in the fourth quarter of 2013.
Slide 18 shows the full year results for the Wealth Advisory segment. Pretax income from continuing operation increased 17% in 2014. Our Wealth Advisers demonstrated strong operating leverage as revenue grew 14%, while operating expenses increased 12%. Net flows were strong for the second consecutive year, coming in at $261 million. More information on AUM net flows can be found on Slide 19. In the fourth quarter the Wealth Advisers and Private Bank each posted net inflows of $51 million. Both the Wealth Advisers and Private Bank have generated positive net flows, 7 of the last 8 quarters.
