Capital Bancorp of Miami, whose chairman last week announced his retirement, racked up record profits in the third quarter.
The $1.3 billion-asset bank earned $4.2 million, or 87 cents a share in the third quarter ended Sept. 30, marking the highest quarterly profit in the company's 20-year history.
The results come after unflattering news reports about Capital's former chairman, Abel Holtz, a well-known Miami resident, who announced his retirement this month.
Two years ago he was accused by some directors of misusing $355,000 in bank funds to settle complaints of sexual harassment from two women, according to the Miami Herald.
In a subsequent power struggle at the bank, Mr. Holtz had four of the bank's directors removed after he said they tried to sell the bank. A nine-month state investigation cleared Mr. Holtz and the bank of any wrongdoing.
Mr. Holtz could not be reached for comment because he was traveling abroad. In a press release, he stated that his decision to retire was an attempt to shift attention away from him and onto the bank.
"Because of my strong and direct presence for 20 years... Capital Bancorp has continued to be overly identified with me," his statement reads. "I believe that it also did not allow the spotlight to shine where it should be -- on the bank."
Mr. Holtz, 61, said in the move is the culmination of a five-year restructuring program begun in 1989, when the bank suffered significant losses. He passed the reins to his son, Daniel, 35. The younger Holtz had served as president and chief operating officer since 1991.
Having fled Cuba in 1961, Mr. Holtz became a respected member of the Hispanic community. He serves on boards of local foundations and hospitals and has a street named after him.
Mr. Holtz founded the bank in 1974 and built it into one of South Florida's largest independent banks, with 28 branches.
