# LOMBARD SECURITIES INCORPORATED X-17A-5 (2025-04-01) — Broker-dealer annual report - Company: LOMBARD SECURITIES INCORPORATED - Form: X-17A-5 - Filed: 2025-04-01 - Period: 2024-12-31 - Accession: 0000870584-25-000002 - CIK: 870584 - File #: 8-43340 - Type: Broker-dealer - Material weakness: Yes - Auditor: RW Group LLC - Auditor location: Landenberg, PA - Contact: Curt Fox - Phone: 410-342-1300 - Email: wsocha@golombard.com - Website: golombard.com - Signed by: Curt Fox (President) Original filing: https://www.sec.gov/Archives/edgar/data/870584/000087058425000002/public_lsiandsubsi.2024.pdf --- {0}------------------------------------------------ # UNITEO sTATEs SECURITIES AND EXCHANGE COMMISSION Washintton, D.C 20549 PUBLIC ) ANNUAL REPORTS FORM X-17A-5 OMB APPROVAL OMB Number: 3235{123 Epires: Nov. 30, 2026 Estimated average burden hours per response: 12 8-43340 sEC FILE NUMBER # PART III FACING PAGE lntoamation Required Pursuant to Rule s L7a-5,11.-12, and 18a-7 unde. the securities Exchange Act oI 19:14 | | 0110112024 | AND ENDTNG | 1213112024 | | |---------------------------------|------------|------------|------------|--| | FITING FOR THE PERIOD BEGINNING | MM/OD/YY | | MM/DD/YY | | A. REGISTRANT IDEt{TIFICATION Lombard Securities lncorPorated NAME OF FIRM: WPE OF REGISTRANT (check all applicable boxes): El Broker-dealer E Security-based swap dealer E check here if respondent is also an oTC derivatives dealer fI Major security-based swap participant ADDRESS OF PRINCIPAL PI-ACE OF BUSINESS: (Do not use a P.O. box no.) # 1820 Lancaster Street | | (No. and street) | | | |----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|-----------------------------------| | Baltimore | MD | | 21231 | | (city) | (state) | | (zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Socha
William | 410-342-1300 | | wsocha@golombard.com | | (Name) | (Area code - Telephone Number) | (EmailAddress) | | | | B, ACCOUNTANT IDENTIFICATION | | | | RW Group LLC
P. O. Box 114 | (Name - if individual, state last, first, and middle name)
Landenberg | PA | 19350 | | {Address) | (city) | {state) | (Zip code) | | 0212312010 | | 5020 | | | (Date of
stration with PCAOB
a | licable | (PCAOB | licable
istration Number, if a | | | FOR OFFICIAL USE ONTY | | | | | r Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public
accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemptign. S€e 17 | | | CFR 240.17a-5(e)(1Xii), if applicable. Personr who are to rgpond to the collectlon of information cortalned in this form are not required to rerpond unless the form dlrplaF a arnently valld OMB comrol numbe,. {1}------------------------------------------------ # PUBTIC # OATH OR AFFIRMATION | William Socha
t, | swear (or affirm) that, to the best of my knowledBe and belief, the | | |------------------------|-------------------------------------------------------------------------------------------------------------------------------------|----------| | financia | I report pertaining to the firm of Lombard securities lncoDorabd | of
as | | 2!fj-
12131 | is true and correct. I further swear (or affirm) that neither the company nor a | ny | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | as that of a customer. | | | | | | | ![](_page_1_Figure_3.jpeg) | /^A
Signature /J,A^ | | |------------------------|--| | | | Title: Chief Financial Oflicer otary Public # This filintat contains (check all applicable boxesl: - El (a) statement of financial condition. - El (b) Notes to consolidated statement of financial condition. - E (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in I 210.1{2 of Regulation SX}. - E (d) statement of cash flows. - E (e) Statement of changes in stockholders' or partners' or sole proprieto/s equity. - ! (0 statement of changes in liabilities subordinated to claims of creditors. - E (g) Notes to consolidated financial statements. - n (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 2/tO.18a-1, as applicable. - tr (i) Computation oftanSible net worth under 17CFR 24O.18a-2. - tr 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 24O.15c3-3. - tr (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 24O.15c3-3 or Exhibit A to 17 CFR 24O.18ad, as applicrble. - D (l) computation for Determination of PAB Requirements under Exhibit A to I 24o.15c3-3. - E (m) lnformation relating to possession or control requirements for customers under 17 CFR 240.15€-3. - E (n) hformation relating to possession or control requirements for security-based swap customers under 17 CFR 24O.15c3-3(pX2) or 17 cFR240.Lga4, as applicable. - E (o) Reconciliationg including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, ot L7 CFR24O.18a-2, as applicable, and the reserve requirements under 17 CFR 24O.15c3-3 or 17 CFR 240.18a4, as applicable, if material differences exist, or a statement that no material differences exist- - D (p) 5ummary of financial data for subsidiaries not consolidated in the statement of financial condition. - E (q) Oath or affirmation in accordance with 17 CFR 2rt0.l7a-5, f7 CtR240.!7a-72, ot L7 CFR24O.18a-7, as applicable. - ! (r) Compliance report in accordance with 17 cFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - E (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (tl lndependent public accountant's report based on an examination of the statement of financial condition. - = E (u) lndependent public accountanfs report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, L7 CFR 24o't8a-7, ot 77 CFR24O.I7a-L2, as applicable. - E (v) lndependent public accountanfs report based on an examination ofcertain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 24O.18a-7, as applicable. - ! (w) lndependent public accountant's report based on a review of the exemption report under l7 cFR24O.l7a-5 ot L7 CFR 240,18a-7, as applicable. - E (x)Supplemental reports on applying agreed-upon procedurel in accordance with 17CFR 240.15c3-1e or !7 CFR 24O.17a-!2, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 2/t0.17a-12(k). - tr (z)Other "To rcquest confidentiol treatment oI certain portions ol this liling, see 77 CFR 240.17o-5(e)(3) ot 17 CFR 240.76o-7(d)(21 os applicoble {2}------------------------------------------------ PUBLIC ) # LOMBARD SECURITIES INCORPORATED AIID SUBSIDIARIES # CONSOLIDATED STATEMENT OF FINANCIAL COI\DITION AI\D INDEPEI\IDENT AUDITORS' REPIORT DECEMBER 3T,2024 {3}------------------------------------------------ ) # LOMBARD SECI'RITIES INCORFORATED AND SUBSIDIARIES CONSOLIDATED STAITMENT OF FINANCIAL CONDITION AI{D INDEPENDENT AT]DITORS' REPIDRT DECEMBER 31,2024 #### CONTENTS | | PAGE | |-----------------------------------------------|------| | INDEPENDENT AIJDITORS' REPORT | I | | FINANCIAL STATEMENTS | | | Consolidated Statement of Financial Condition | ., | | Notes to Consolidafed Financial Statsments | 3-7 | {4}------------------------------------------------ ![](_page_4_Picture_1.jpeg) # REPORT oF INDEPENDENT REGISTERED PUBTIC ACCOUNTING FIRM To the Member of LOMBARD SECURITIES INCORPORATED #### opanlon on the Financial statements We have audited the accompanying consolidated statement of financial condition of LOMBARD SECURITIES TNCORPORATED, as of Oecember 37, 2024, and the related notes (collectively referred to as the "financial statements'). ln our opinion, the financial statements present fairly, in all material respects, the financial position of TOMBARO SECURITIES INCORPORATED as of December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. #### Basls for oplnlon These financial statements are the responsibility of LOMBARD SECURITIES INCORPORATED'S management. Our responsibility is to express an opinion on LOMBARD SECURITIES INCORPORATED'S financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to b€ independent with respect to LoMBARD sEcuRlTlEs INCoRPoRATED in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatemen! whetherdueto error orfraud. Our audit included performing proceduresto assess the risk of material misstatement ofthe financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation ofthe financial statements. We believe that our audit provides a reasonable basis for our opinion. 7k)% /\ rY7 s({^9. We have served as LOMBARD SECURITIES INCORPORATED'S auditor since 2015. Landenber& Pennsylvania March 31, 2025 {5}------------------------------------------------ # LOMBARD SECURITIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024 # NOTE 1 - ORGANIZATION Lombard Securities Incorporated (the "Company") was incorporated in the State of Maryland in July, 1990 and is a securities broker-dealer located in Baltimore, Maryland. The Corporation is registered with the Securities and Exchange Commission (SEC), is a member of Financial Industry Regulatory Authority (FINRA), Securities Investors Protection (SIPC) and the Municipal Securities Rulemaking Board (MSRB). Lombard Agency, Inc., a wholly-owned subsidiary, was incorporated in the State of Maryland in January, 1991 as an insurance brokerage agency. Lombard Advisers Incorporated, a wholly-owned subsidiary, was incorporated in the State of Maryland in August, 1994 as an investment adviser. The Company is subject to the provisions of Rule 15c3-3 of the Securities and Exchange Commission. However, the Company operates pursuant to the exemptive provision of Paragraph (k)(2)(ii) of Rule 15c3-3. This prohibits the Company from carrying customer margin accounts, or otherwise holding customer funds or securities, or performing custodial duties with respect to customers' securities. It also requires the Company to promptly deliver all customer funds and securities related to mutual fund transactions and to transact all customer securities transactions through a special reserve bank account for the exclusive benefit of its customers. The requirements of Paragraph (k)(2)(ii) provide that the Company clear all transactions on behalf of customers on a fully disclosed basis proth a clearing broker/dealer. The clearing broker/dealer carries all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a broker/dealer. # NOTE 2-SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation - The consolidated statements of financial condition, income, changes in stockholders' equity, and cash flows include the accounts of the Company and its wholy owned subsidiaries, Lombard Agency, Inc. and Lombard Advisers Incorporated. All significant intercompany balances and transactions between the Company and its subsidiaries have been eliminated in the consolidation. Revenue Recognition - The Company recognizes revenue on a trade date basis. The Company's business consists of trade commissions, gross credits on riskless principal trades prospectuditated mutual funds, annuity credits, trails paid on mutual funds and annuity contracts. Each of the revenue recognitions on these sources is recorded on a trade date basis. The Company also receives investment advisory fees recorded on a quarterly basis. Revenue is recognized in the month that fress are charged to clients. The Company does not receive performance fees in an investment advisory capacity. The Company does not engage in investment banking, mergers and acquisition activities or private placements. Cash and Cash Equivalents - The Company considers highly liquid investments with original maturities of one year or less to be cash equivalents. {6}------------------------------------------------ # LOMBARD SECURITIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024 #### NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued) Securities Owned - Securities owned are valued at their fair market value, determined from quoted market prices. Property and Equipment - Furniture and equipment are stated at cost net of \$276,115 accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, usually 3 to 5 years. Depreciation expense for the year ended December 31, 2024 was \$976. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred income taxes are provided for temporary differences arising between the tax basis of assets and liabilities and their respective book basis as reported in the financial statements. No deferred tax assets have been recorded in the accompanying balance sheet due to the uncertainty of realization. In general the prior three years tax returns filed with various taxing agencies are open to examination. Supplemental Cash Flow Disclosure - \$286,608 cash was paid for income taxes and \$13,485 interest was paid during the year ended December 31, 2024. Operating Leases - On January 1, 2019, the Company adopted the provisions of ASU 2016-02, Leases (Topic 842). Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will either be classified as finance or operating, with classification affecting the pattern of expense recognition in the income statement. # NOTE 3 - COMMISSIONS RECEIVABLE Commissions receivable represent amounts due to the Company from its clearing broker relating to client securities transactions introduced by the Company and amounts due from mutual funds and insurance companies. #### NOTE 4 - CLAIMS AND ASSESSMENTS The Company is generally engaged in ongoing legal matters. {7}------------------------------------------------ # 11:310 # LOMBARD SECURITIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024 #### NOTE 5 - OFF-BALANCE-SHEET RISK A clearing broker/dealer carries all of the accounts of the Company and is responsible for execution, collection and payment of funds, and receipt and delivery of securities related to client transactions. Off-balance-sheet risk exists with respect to these transactions due to the possibility that clients may be unable to fulfill their contractual commitments wherein the clearing broker/dealer may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its clients and verify that client transactions are executed properly by the clearing broker/dealer. #### NOTE 6 - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. The rule also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio exceeds 10 to 1. At December 31, 2024, the Company is in compliance with this rule. Lombard Advisers Incorporated, a wholly-owned subsidiary of the Company, is required to compute net capital pursuant to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1) on a stand-alone basis. At December 31, 2024, Lombard Advisers Incorporated had net capital of \$653,839. #### NOTE 7 - LEASE COMMITMENTS The Company has entered into a lease for office facilities which expires on March 31, 2027. In addition to the base rent specified in the lease, it is subject to escalation based on increases in real estate tax and operating expenses. As of December 31, 2024 the operating lease asset was equal to \$308,519 and the operating lease liability was \$308,519. Future minimum lease payments required under this operating lease exclusive of those escalations are as follows: | 2025 | | 139,872 | |-------|---|---------| | 2026 | | 143,793 | | 2027 | | 36,195 | | Total | S | 318,860 | Rent expense for the year ended December 31, 2024 was \$172,803. #### NOTE 8 - EMPLOYEE RETIREMENT PLAN The Company has an employee retirement plan whereby the Company matches a portion of the contributions made by the employees. All employees meeting certain age and service requirements are eligible to participate in the plan. The Company matched amount as of December 31, 2024 was \$15,288. 5 {8}------------------------------------------------ # THE C # LOMBARD SECURITIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024 # NOTE 9 - ADVERTISING Advertising costs are expensed as incurred. For the year ended December 31, 2024 costs were \$0. #### NOTE 10 - CREDIT LOSSES A broker dealer, however, is not required to measure expected credit losses on a financial asset (or group of financial assets) in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is remote. For financial assets measured at amortized cost (i.e. cash), the Company has concluded that there are no expected credit losses based on the nature or expected life of the financial assets and immaterial historic or expected losses. #### NOTE 11-OTHER TRANSACTIONS In December 2024 the Company purchased 4,535 shares of Lombard Securities, Incorporated stock at \$135 per share. The shares are now in the Company's treasury stock account. #### NOTE 12-SEGMENT DISCLOSURES The Company is engaged in the lines of business as a securities broker dealer, insurance agency and investment advisory services. The Company has identified its Principal Financial Officer, William S. Socha, as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital, which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay dividends. The Company's operations consist of multiple operating units. The accounting policies used to measure the profit and loss of the segments are the same as those described in the summary of significant accounting policies. | | Lombard | Lombard | ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤﺴﺎﻋﺪﺓ ﺍﻟﻤ
Lombard | Lombard | |--------------------------|-----------------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------| | | Securities Inc. | Advisers Inc. | Agency Inc. | Agency of TX Inc. | | Revenues from | | | | | | Customer
Transactions | 5,561,051 | 3,786,560 | 172,261 | | | Interest Revenue | 142,875 | 30,331 | - | | | Dividend Revenue | | | | - | | Other Income | 742,399 | 7,203 | | | | Total Revenues | 6,446,325 | 3,824,094 | 172,261 | | | Interest Expense | 13,485 | | | | | Deprecation | | | | | | Amount | 976 | | | | | Continued-pg. | | | | | {9}------------------------------------------------ | Noncash
Financing | | | | | |----------------------|-----------|-----------|--------|-------| | Activity | | | | | | Segnent Assets | 3,568,904 | t,293,938 | 18,850 | 1,000 | # NOTE 13 - SUBSEQUENT EVENTS Subsequent to year end the company entered into a non-compete agreement \_ with a former shareholder for gt 88,000, payable over three years. Management has evaluated subsequent events through March 3 l, 2025, the tate on which thi financial statements were available to be issued' No other-events have occurred since the balance sheet date that would have material impact on financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.