BANKING/FINANCE

As it turns around its money-losing ways of the past two years, American Interstate Bank has found it can spend a little cash on a promotion to celebrate its 15th birthday.

In a drawing among its customers, the Newport Beach bank awarded trips to Palm Desert to two customers, one at each of its branches.

Navy Ens. Eric Ringwalt of Newport Beach, who has had a savings account at the bank’s office there since he was in junior high school, and Kathleen Pentz of Santa Ana, who is one of the bank’s original customers at its Santa Ana office, won the free stays at the Desert Princess Hotel.

Each branch also gave away a second-place award of a $100 savings bond and a third-place award of a $50 savings bond.

“It’s a way of thanking our customers who have stayed with us over the years,” said Shirley Geraghty, vice president for marketing.

And the free-trip promotion was a small expense, said David T. Blankenhorn, American Interstate’s president. The hotel gave the bank a reduced rate.

Though the bank has lost more than $600,000 in the past two calendar years, it posted operating profits in the last half of 1987 and broke into the black in the first quarter this year with net income of about $25,000.

The $321,000 loss last year was attributed mainly to write-offs on loans. One major loan loss was to a customer who allegedly filed a false financial statement, said David T. Blankenhorn, the bank’s president. The FBI is investigating that loan, he said.