Segment Information

FASB Codification 280 – “Segment Reporting” identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s chief operating decision maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations.

The Corporation’s Banking segment consists of commercial and retail banking. The Banking segment is evaluated as a single strategic unit which generates revenues from a variety of products and services. The Banking segment generates interest income from its lending (including leases) and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale in available for sale investment securities, gains on the sale of residential mortgage loans, service charges on deposit accounts, cash sweep fees, overdraft fees, bank owned life insurance ("BOLI") income and revenue associated with its Visa Check Card offering. Also included in the Banking segment are two subsidiaries of the Bank, KCMI Capital, Inc. and Bryn Mawr Equipment Financing, Inc., both of which provide specialized lending solutions to our customers.

The Wealth Management segment has responsibility for a number of activities within the Corporation, including trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and IRA administration, estate settlement, tax services and brokerage. Bryn Mawr Trust of Delaware and Lau Associates are included in the Wealth Management segment of the Corporation since they have similar economic characteristics, products and services to those of the Wealth Management Division of the Corporation. BMT Investment Advisers, formed in May 2017, which serves as investment adviser to BMT Investment Funds, a Delaware statutory trust, is also reported under the Wealth Management segment. In addition, the Wealth Management Division oversees all insurance services of the Corporation, which are conducted through the Bank’s insurance subsidiary, BMT Insurance Advisors, Inc., and are reported in the Wealth Management segment.

The accounting policies of the Corporation are applied by segment in the following tables. The segments are presented on a pre-tax basis.

The following tables detail the Corporation’s segments for the three months ended March 31, 2019 and 2018:



	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
(dollars in thousands)	Banking			Wealth Management			Consolidated			Banking			Wealth Management			Consolidated
Net interest income	$	37,645		$	2		$	37,647		$	37,438		$	1		$	37,439
Provision for loan and lease losses	3,736			—			3,736			1,030			—			1,030
Net interest income after loan loss provision	33,909			2			33,911			36,408			1			36,409
Noninterest income:
Fees for wealth management services	—			10,392			10,392			—			10,308			10,308
Insurance commissions	—			1,672			1,672			—			1,693			1,693
Capital markets revenue	2,219			—			2,219			666			—			666
Service charges on deposit accounts	808			—			808			713			—			713
Loan servicing and other fees	609			—			609			686			—			686
Net gain on sale of loans	319			—			319			518			—			518
Net gain on sale of investment securities available for sale	—			—			—			7			—			7
Net gain on sale of OREO	(24		)	—			(24		)	176			—			176
Other operating income	3,237			21			3,258			4,725			44			4,769
Total noninterest income	7,168			12,085			19,253			7,491			12,045			19,536

Noninterest expenses:
Salaries & wages	15,775			5,126			20,901			11,156			4,826			15,982
Employee benefits	3,172			994			4,166			2,676			1,032			3,708
Occupancy and bank premises	2,732			520			3,252			2,576			474			3,050
Amortization of intangible assets	327			611			938			398			481			879
Professional fees	1,163			157			1,320			729			19			748
Other operating expenses	7,269			1,878			9,147			10,431			1,232			11,663
Total noninterest expenses	30,438			9,286			39,724			27,966			8,064			36,030
Segment profit	10,639			2,801			13,440			15,933			3,982			19,915
Intersegment (revenues) expenses⁽¹⁾	(123		)	123			—			(149		)	149			—
Pre-tax segment profit after eliminations	$	10,516		$	2,924		$	13,440		$	15,784		$	4,131		$	19,915
% of segment pre-tax profit after eliminations	78.2		%	21.8		%	100.0		%	79.3		%	20.7		%	100.0		%
Segment assets (dollars in millions)	$	4,577.7		$	54.3		$	4,632.0		$	4,248.4		$	52.0		$	4,300.4

(1) Inter-segment revenues consist of rental payments, interest on deposits and management fees.

Wealth Management Segment Information



(dollars in millions)	March 31, 2019		December 31, 2018
Assets under management, administration, supervision and brokerage	$	14,736.5	$	13,429.5