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National Bankers Association Presents 1979 Corporate Award to Philip Morris

Company Will Borrow $9 Million From 40 Minority-Owned Banks

Philip Morris Incorporated has broadened its Minority Banking Program to include nearly 60 banks in 25 states plus the District of Columbia. The company's credit volume with 40 of these institutions currently exceeds $8.5 million. All of the banks are minority-owned by Blacks, Hispanics, women and American Indians.

In recognition of Philip Morris' outstanding support of minority banking operations in the United States, the National Bankers Association has awarded the company its 1979 Corporate Award.

F. Harrison Poole, vice president and treasurer of Philip Morris Incorporated, pointed out that "the company and its subsidiaries have consistently supported the Minority Banking Program ever since we started this effort in 1963. By 1980, we expect that our borrowing activity with minority-owned banks will be nearly $9 million."

"Our view is that it is a good business practice for all parties concerned, including the communities where these banks are located. Our support - as well as that of other similarly committed corporations - helps to broaden the banking services of minority-owned banks, both in inner cities and smaller towns. It also provides the corporation with additional sources of credit."

Philip Morris channels most of its borrowing with minority-owned banks located in various parts of the country through two agent banks - Consolidated Bank and Trust Company, Richmond, Va., and Freedom National Bank of New York.

In addition to its borrowing activity, Philip Morris has also increased its deposits in minority-owned banks. These deposits now total $2.4 million at nearly 60 banks.

The company, along with other major corporations, is a participant in the Federal Government's Minority Bank Deposit Program. In the ten years since the program was introduced, the number of minority-owned banks has tripled and deposits have increased five times.

In addition to its non-interest bearing demand deposit accounts in minority banks, Philip Morris Incorporated and its subsidiaries, Miller Brewing Company, The Seven-Up Company and Philip Morris Industrial, make extensive use of minority-owned banking facilities for federal income and FICA (Social Security) tax payments. According to the Department of the Treasury, such payments, in effect, provide banks with interest-free government deposits.

At the National Bankers Association's 52nd Annual Convention, held earlier this month in New Orleans, Philip Morris received the 1979 Corporate Award. In announcing the presentation, George R. Brokemond, president of the National Bankers Association, said that it "symbolizes the commitment and follow-through that a major corporations has made to the overall development of minority banks and the entire minority banking industry. It is with great appreciation and gratitude that NBA honors the non-pareil performance of Philip Morris."

Ross R. Millhiser, vice chairman of Philip Morris Incorporated, accepted the Award and emphasized that "an active association with minority banks is an essential part of a total corporate socail responsibility program."

In an effort to achieve further recognition and visibility for minority banks, Philip Morris sponsored a series of advertisements which has appeared in recent weeks in the American Banker, St. Louis Sentinel, New York Amsterdam New, Louisville Defender, Milwaukee Courier, and other publications.

"We are supporting the National Bankers Association's goal to see every major American business involved with minority-owned banks," Mr. Poole explained.

The ad campaign stresses the value to community development where there is strong minority-owned banking. Philip Morris also offers to assist other major corporations in starting Minority Banking Programs of their own.

Philip Morris Incorporated, one of the worlds largest cigarette companies, includes Philip Morris U.S.A., whose major brands are Marlboro - the number one selling cigarette in the world - Benson & Hedges 100's, Merit, Virginia Slims, and Parliament; Philip Morris International, which manufactures and markets a variety of brands, including Marlboro, through affiliate, lecensees, and export sales organizations; Miller Brewing Company, brewer of Miller High Life, Lite, and Lowenbrau brands; The Seven-Up Company, producers of 7UP and Sugar-Free 7UP soft drinks; Philip Morris Industrial, which makes specialty chemicals, paper and packaging materials, and Mission Viejo Company, a community development and home building concern in Southern California and Colorado.

Philip Morris' Minority Banking Program currently extends to the following minority banks: 

American Indian National Bank - Washington, D.C.
American National Bank - Houston, Texas
American State Bank - Portland, Oregon
Banco de Ponce - New York, New York
Banco Popular de Puerto Rico - New York, New York
Bank of Finance - Los Aneles, California
The Bank of Miami - Miami, Florida
Capital Bank - Miami, Florida
The Carver State Bank - Savannah, Georgia
Centinel Bank of Taos - Taos, New Mexico
Citizens Saving Bank & Trust Co. - Nashville, Tennessee
Citizens Trust Company - Atlanta, Georgia
The Community Bank of Nebraska - Omaha, Nebraska
Consolidated Bank & Trust Company Richmond, Virginia
Continental Bank of Kentucky - Louisville Kentucky
Continental National Bank - El Paso, Texas
The Douglass State Bank - Kansas City, Kansas
First Enterprise Bank - Oakland, California
First Independence National Bank - Detroit, Michigan
First Plymouth National Bank - Minneapolis, Minnesota
First State Bank - Danville, Virginia
The First Women's Bank - New York, New York
Freedom National Bank - New York, New York
Gateway National Bank - St. Louis, Missouri
Greensboro National Bank - Greensboro, North Carolina
Highland Community Bank - Chicago, Illinois
Hyde Park & Trust Co. - Chicago, Illinois
The Independence Bank of Chicago - Chicago, Illinois
Industrial Bank of Washington - Washington, D.C.
International Bank of Commerce - Laredo, Texas

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