Blankenhorn to Head American Interstate

David T. Blankenhorn, who has headed three Orange County banks, has been named president and chief executive officer of American Interstate Bank in Newport Beach.

Blankenhorn, 47, of Newport Beach replaces veteran banker Alvin C. Rice, 63, who was ousted in early July in a tiff with other directors over Rice’s plans for rapid growth. William Harrison, a director, took over as chairman, also a post that had been held by Rice.

During his 24 years in banking, Blankenhorn worked for several major banks. He became the chief executive officer at CommerceBank in Newport Beach in 1980 but left in 1983 during a management restructuring aimed at slowing down that bank’s quick-growth plans.

He then took over the reins of Heritage Bank in August, 1983, to try to salvage the fast-sinking Anaheim bank, but regulators decided to close it seven months later.

In April, 1984, he was hired as chief executive at Orange City Bank to try to turn that institution around. He resigned 20 months later when developer Martin List bought the bank. List sold it early this year and eventually went bankrupt. The bank is now known as American Merchant Bank.

Blankenhorn has since worked as a consultant and, most recently, as a First Interstate Bank executive.

American Interstate, which emerged from regulatory supervision last year and started reporting quarterly profits, will concentrate on traditional banking and cater to the needs of small business owners and professionals, Blankenhorn said.