Rockwater Capital Corp. is reporting a jump in earnings for the fourth quarter ended Dec. 31, 2004.

The financial services holding company said earnings for the quarter were $5.4 million, compared with $1.8 million for the period a year ago.

Revenues for the quarter rose to $44 million compared $40.8 million in the fourth quarter of 2003.

In the fourth quarter of 2004, Rockwater recognized a net future tax benefit of $3.5 million, which is related to prior period income tax loss carryforwards. Earnings before taxes, amortization of deferred employment arrangements and recovery on prior business activities were $4.0 million for the quarter compared with $3.4 million for the fourth quarter of last year.

For the 12 months ended December 31, 2004, Rockwater’s net earnings were $8.5 million on revenues of $152.7 million. For the same twelve-month period in 2003, Rockwater reported a net loss of $2.9 million on revenues of $117.4 million.

Earnings before taxes, amortization of deferred employment arrangements and recovery on prior business activities were $14.1 million for the year ended December 31, 2004, compared to $3.7 million for the previous year.

Rockwater said its 2004 annual revenues were up 23% in wealth management, 23% in asset management, and 79% in capital markets.

Total revenues for the company increased 30%, or $35.3 million, compared to the company’s annual results for 2003.

Following the acquisition of money management firm KBSH, Rockwater now administers $12.5 billion in client assets, an increase of $6.8 billion from 2003.

Rockwater also announced that it expects to file an amended and restated preliminary prospectus in March 2005 in connection with its proposed equity offering.

The company said it plans to use the proceeds of the offering to repay the debt in connection with the KBSH acquisition and for general corporate purposes. It is expected that the consolidation of the company’s shares on a one for ten basis will occur immediately prior to the closing of the offering.

Rockwater conducts its operations through its three subsidiaries: First Associates Investments Inc., Rockwater Asset Management Inc., and KBSH Capital Management Inc.