KBRA Upgrades and Affirms Ratings for BHG Securitization Trusts

KBRA upgrades its ratings on 8 classes of notes and affirms ratings on 19 classes of notes issued from 11 BHG Securitization Trust transactions. KBRA’s analysis indicated that existing credit enhancement for the notes is sufficient to support the revised and affirmed ratings. All of the securities with upgraded ratings experienced increased credit enhancement. The data used for this review is as of the February 2026 distribution date (January 2026 collection period). To date, the securities have received timely interest payments.

In performing its rating review, KBRA utilized its General Global Rating Methodology for Asset Backed Securities and Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In determining these rating actions, KBRA reviewed the collateral performance to date and projected the remaining loss for the transactions based on current assumptions. The rating actions, along with related deal and tranche performance information, are available in spreadsheet form in the accompanying Bankers Healthcare Group Comprehensive Surveillance Dashboard.

The loans supporting the transactions were originated by Bankers Healthcare Group, LLC (“BHG” or the “Company”). BHG was founded in 2001 and provides small business loans (“Commercial Loans”) and unsecured consumer loans (“Consumer Loans”) primarily to prime, high-income professionals. BHG began offering Commercial Loans in 2001 and introduced a consumer lending product in 2014. The Company initially provided business loans to licensed medical professionals only, expanded to offer personal loans to its customer base and has more recently expanded its offerings to include additional high income and high credit quality professionals such as attorneys, financial advisors, and accountants. With corporate headquarters in Davie, Florida, and financial headquarters in Syracuse, New York, BHG has provided more than $24 billion in funding to over 220,000 borrowers since inception. Pinnacle Bank, a Tennessee state-chartered bank and subsidiary of Pinnacle Financial Partners, Inc. (“PNFP”), owns 49% of the Company. On July 25, 2025, PNFP announced a merger with Synovus Financial, which was completed in January 2026.

BHG has been profitable since inception, reporting net income of approximately $240 million for the 12 months ended 2025. Cash and cash equivalents and stockholder’s equity were approximately $742 million and $440 million, respectively, as of December 31, 2025.

As of September 30, 2025, the Company has drawn $300 million of its $2.7 billion in funding capacity from three separate warehouse facilities, one revolving corporate facility, and two term loans. The Company also has $174 million in outstanding joint venture agreements with various regional banks who fund 100% of principal of new originations and share the interest and credit risk with BHG. They also have one outstanding loan sale agreement that has an outstanding agreement of $116 million. The Company has issued 11 term ABS securitizations totaling $3.7 billion. As of the year ending September 30, 2025, BHG had a net profit of $213.0 million and $448.0 million in equity.

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Methodologies