Morgan Stanley Bank, N.A. Receives Outstanding Rating for Community Reinvestment Initiatives

Rating given by the Office of the Comptroller of the Currency

Morgan Stanley Bank, N.A. (MSBNA), a national bank subsidiary of Morgan Stanley (NYSE: MS), has been recognized with the highest rating from the Office of the Comptroller of the Currency (OCC) for its work meeting the credit needs of the communities it serves. The Bank received a rating of “Outstanding” for the Bank’s community reinvestment activities. Both of the Firm’s national bank subsidiaries have achieved consistent “Outstanding” ratings based on the OCC’s review of community reinvestment activities.

The OCC report for MSBNA highlights several initiatives that contributed to the “Outstanding” rating including nearly $6 billion in combined community development loans and investments that addressed the need of affordable housing, resident services to strengthen communities, and capital for small businesses over the three-year exam period.

“Morgan Stanley is very proud to have received, for the eighth time in a row, an “Outstanding” rating from the OCC for our community reinvestment work,” said Michael Pizzi, Head of U.S. Banks and Head of Technology. "Our program’s continued focus on affordable housing and economic development remains our priority in the communities we serve.”

The evaluation noted that the Bank’s community development lending and investment performance was “excellent” and “the Bank was responsive to identified community needs and supports services that targeted affordable housing, financial education, social services for low- and moderate-income (LMI) individuals, and services for small businesses.”

“Morgan Stanley continues to leverage our capital markets expertise to support affordable housing and economic development, which contribute to thriving communities,” continued Mr. Pizzi.

The Performance Evaluation highlighted several transactions, including:

More than $375 million in loans to community development financial institutions (CDFIs) in the Bank’s local, regional, and national areas over the three-year exam period (2020-2022). MSBNA recognized the critical role that CDFIs played in stabilizing and revitalizing communities, particularly those with considerable needs exacerbated by the pandemic. One example included a $9 million revolving line of credit to a CDFI to fund affordable housing projects and working capital for distressed neighborhoods. The CDFI builds new single- and multi-family housing, rehabilitates existing housing stock and works to revitalize neighborhoods in Salt Lake City and around the state of Utah.

Due to the unique nature of MSBNA’s Wholesale Bank designation for Community Reinvestment Act (CRA), the Bank is able to leverage its expertise to meet community needs across the nation in addition to serving its local assessment area. This regional and national focus allowed the Bank to respond to disaster areas, invest in rural CRA “deserts,” and preserve affordable housing nationwide at a time when the country faces a severe affordable housing crisis.

One of the projects that helped rebuild in the wake of a natural disaster was Phase I and II of Laurel at Perennial Park in Santa Rosa, California. Working with Burbank Housing Development Corporation (BHDC), the Bank provided both affordable housing construction loans and Low-Income Housing Tax Credit (LIHTC) equity to the redevelopment project. The Bank’s financing created 132 units of affordable housing for seniors 62+. The site, formerly the Journey’s End Mobile Home Park, was destroyed by the Tubbs wildfire in 2017.

“Morgan Stanley has served as a trusted advisor throughout the life cycle of the redevelopment at 3575 Mendocino Avenue, now Laurel at Perennial Park,” says Larry Florin, CEO of Burbank Housing. “Morgan Stanley was a key first responder to the natural disaster and was able to creatively and flexibly design their response by listening to the needs of the community first, and then bring capital to the table based on those identified needs. They have made responding to disaster areas one of their priorities, which really sets them apart as a partner.”

The Bank also offered SBA 504 loans for small businesses, financing for the construction and preservation of affordable housing, and LIHTC investments across rural areas where capital is often more sparse than urban markets. For example, projects in Fresno and Mineral Wells, Texas and Los Alamos, New Mexico received a variety of community development funding.

Mike Mantle, Head of Community Development Finance at Morgan Stanley said, “Morgan Stanley continually looks for ways to make an impact in the communities we serve. Affordable housing is a major focus given the critical need we see across the country. However, the capital we deploy through the SBA 504 program, particularly in rural markets, helps provide critically needed loans for small businesses. These businesses in turn create or retain local jobs. We are proud of our track record.”

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

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