Rockwater Capital Corp. today reported an increase in third-quarter profit due to strong revenue and earnings growth across all three business units.

Net earnings for the quarter ended Sept. 30, 2005 grew to $2.5 million for the quarter from $0.5 million in the third quarter of 2004.

Earnings per share rose to 10¢ in the quarter from 3¢ in the same quarter last year.

Revenue rose 65.8% to $56.9 million compared to the third quarter in 2004

Total client assets rose to $13.8 billion, an increase of $1.4 billion or 11.3% from the second quarter of this year

Operating expenses as a percentage of revenue declined to 21.1% in the quarter compared to 25.2% in the same quarter of 2004

“This quarter we gained momentum in each business, with growth in client assets, higher average assets under administration per advisor, and increased financing participation,” said Bill Packham, president and CEO of Rockwater, in a release. “Another significant milestone during the quarter was the launch of a strong new brand identity for our investment dealer as Blackmont Capital.”

In Rockwater’s wealth management business, revenue rose 45.5% from the same quarter last year to $35.3 million this quarter

In the asset management unit, revenue in the quarter rose 147.3% from the third quarter of last year to $10.6 million, principally due to the acquisition of KBSH.

Capital markets revenue jumped 90.7% to $11 million in the quarter compared to a year ago.

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