John Engberg didn't think it would take too long to straighten out American Interstate Bank's problems, but it took nearly five years for the president of the Newport Beach-based bank to get a clean bill of health from federal regulators.
Engberg said he was notified earlier this month by the Federal Deposit Insurance Corp. that an April, 1981, order for the bank, then known as American State Bank, to halt certain "unsafe and unsound practices" officially was lifted.
"I'm terribly relieved and very, very pleased," Engberg said. "We cooperated with them (regulators) completely through this. But I didn't realize at the time how long it takes to straighten out such problems."
The bank, in a consolidated report with its subsidiary, American Interstate Properties Inc., posted a net income of $164,000 for 1985, four times its $41,000 profit the previous year.