# LOMBARD SECURITIES INCORPORATED X-17A-5 (2026-03-30) — Broker-dealer annual report - Company: LOMBARD SECURITIES INCORPORATED - Form: X-17A-5 - Filed: 2026-03-30 - Period: 2025-12-31 - Accession: 0000870584-26-000001 - CIK: 870584 - File #: 8-43340 - Type: Broker-dealer - Material weakness: No - Auditor: RW Group LLC - Auditor location: Kennett Square, PA - Contact: Terry Donlan Welker - Phone: 410-342-1300 - Signed by: Terry Donlan Welker (Chief Compliance Officer) Original filing: https://www.sec.gov/Archives/edgar/data/870584/000087058426000001/sec843340lsify2025public.pdf --- {0}------------------------------------------------ ### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 PUBLIC | OMB APPROVAL | |---------------------------| | OMB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | hours per response:
12 | | | | SEC FILE NUMBER | | | | | # ANNUAL REPORTS FORM X-17A-5 PART III FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING 6 1 / 0 / 20 2 5 AND ENDING /2 / 3/ 2 MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: TYPE OF REGISTRANT (check all applicable boxes): 2 Broker-dealer Security-based swap dealer Major security-based swap participant Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) (No. and Street) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING -1300 Socha (Email Address) (Name) (Area Code - Telephone Number) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* (Name - if individual, state last, first, and middle name) (State) (Zip Code) (City) 20 (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) FOR OFFICIAL USE ONLY \* 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 exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ ### PUBLIC #### OATH OR AFFIRMATION swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of for hy do be specialitie > Include por such as of 2 ( 2 ) is true and correct. I further swear (or affirm) that neither the company nor any 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. Signature: Title: ### This filing \*\* contains (check all applicable boxes): - Ja) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - [c] Statement of income (loss) or, if there is other comprehensive in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - [d) Statement of cash flows. - [e] Statement of changes in stockholders' or partners' or sole proprietor's equity. - [f) Statement of changes in liabilities subordinated to claims of creditors. - [g) Notes to consolidated financial statements. - [h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - [j] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [k] Computation for determination of security-based swap reserve requirements pursuant to Exhibit 8 to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - O (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - O (o) Reconciliations, 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, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - O Jp) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - [ {u] Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [ (v) Independent public'accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [w] independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [x] Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - □ (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 240.17a-12(k). - [ (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable. {2}------------------------------------------------ PUBLIC ## LOMBARD SECT]RITIES INCORPORATED AI{D SUBSIDIARIES ## CONSOLIDATED STATEMENT OF FINAI\CIAL CONDITION AI{D INDEPENDENT AUDITORS' REPORT ### DECEMBER31,2025 {3}------------------------------------------------ ### PUBLIC 1 I ) # LOMBARD SECTruTIES INCORPORATED AIID SUBSIDIARIES CONSOLIDATED STATEMENT OF FINAI{CIAL COI{DITION AND I}{DEPENDENT AUDITORS' REPORT DECEMBER31,2025 ### CONTENTS | | PAGE | |-----------------------------------------------|------| | INDEPENDENT AT]DITORS' REPORT | 1 | | FINANCLA.L STATEMENTS | | | Consolidated Statement of Financial Condition | 2 | | Notes to Consolidated Financial Statements | 3-7 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Lombard Securities lncorporated ### opinion on the Financial Statements We have audited the accompanying consolidated statement of financial condition of Lombard Securities lncorporated, as of December 31, 2025, 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 Lombard Securities lncorporated as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial stat€ments are the responsibility of Lombard Securities lncorporated's management. Our responsibility is to express an opinion on Lombard Securities lncorporated'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 be independent with respect to Lombard Securities lncorporated 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 misstatement, whetherdue to error orfraud. Ouraudit included performing procedures to assessthe risks ofmaterial 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. wary /\ /v', dg-q, we have served as Lombard Securities lncorporated's auditor since 2015 Landenberg, Pennsylvania March 30, 2026 {5}------------------------------------------------ ### LOMBARD SECURITIES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 #### ASSETS | | | 2025 | |---------------------------------------------------------|---|--------------| | Cash and Cash Equivalents | S | 3,623,696 | | Cash Held for the Exclusive Benefit of Customers | | 150 | | Receivable from Clearing Firm | | 299,340 | | Commissions and Fees Receivable | | 168,207 | | Investment Securities | | | | Prepaid Expenses | | 53,675 | | Furniture and Equipment - Net | | 3,665 | | Clearing Deposit | | 100,000 | | Other Assets | | 516,647 | | | | | | Total Assets | S | 4,765,380 | | | | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | LIABILITIES | | | | Compensation Payable | S | 510,626 | | Accounts Payable and Accrued Liabilities | | 1,060,521 | | | | | | Total Liabilities | | \$ 1,571,147 | | STOCKHOLDERS' EQUITY | | | | Common Stock (S.01 Par Value 100,000 Shares Authorized, | | 268 | | 26,819 Issued and 19,787 Outstanding) | | | | Additional Paid-in Capital | | 1,593,600 | | Retained Earnings | | 2,419,545 | | Treasury Stock | | (819,180) | | Total Stockholders' Equity | ക | 3,194,233 | | | | | | Total Liabilities and Stockholders' Equity | ક | 4,765,380 | PUBLIC 99 {6}------------------------------------------------ ( t # PUBLIC LOMBARD SECI]RIrIES INCORPORATED AI{D SUBSIDIARIES NOTES TO CONSOLIDATED FINA}ICIAL STATEMENTS DECEMBER 31,2025 ## NOTE 1-ORGA}IIZATION Lombard Secrrities Incorporated (the "Company") was incorporated ia the State of Maryland in Jgly, 1990and is a securities brokerdealer iocated in Baltimore, UrryUna. The Corporation is registered with the Securities and Excbange Comrnission (SEC), is a member of FinanciaL Industry Regulatory Authotity (FINRA), Securities lnvestors Protection Corporation (SIPC) and the Municipal Securities Rulemaking Board (lvlSRB). Lombard Agency, Inc., a wholly-owned subsidiary, was incorporated in the State of Maryiand in January, 1991 as an insurance brokerage agency. Lombard Advisers Incorporard a wholly-owned subsidiary, was incorporated in the State of Maryland in August, 1994 as an investment adviser. The Compaay is subject to the provisions ofRule 15c3-3 ofthe Securities and Exchange Corrmission. However, the compaay operates pur\$xmt to the exemptive provision of paragraph ft)(2)(ii) of Rule 15c3-3' This prohibits the Company from carrying customer margin accounts, or otherwise holding cusomer firnds or securities, or perforrning custodial duties with respect to customers' securities. Ii also tequires the Company to promptly deliver alt customer firnds and securities reiated to mutual fi:nd transactions and to tansact ail customer securities transactions through a special reserve bank account for the exclusive benefit of its customers. The requirements of Paragraph (k)(2)(ii) provide rhat the Company clear all traisactioDs on behalf of customers on a firlly disciosed basis with 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 cqstomarily kept by a broker/dealer. # NOTE 2 - SIGITINCA}IT ACCOT]NTING POLICIES Principles of Consolidation - The consolidated statements of financial condition, income, changes in stockholders' equity, and cash flows include the accormts of the Company and its wholly owned zubsidiaries, Lombard Agency, Inc. and Lombard Advisers Incorporated. Alt sipificaat intercompany balances and transactions between the Compa:ry and its subsidiaries have been eliminated in the consolidation. Revenue Recognition - The Company r€cognizss revenue on a.nade date basis. The Company's business consists 9f62ds sornrnissions, gross credits on riskless principal rades, prospectus dictated munral frrnds, annuity sedits, tails paid on mutual firnds and annuity contracts. Each of the revenue recognitions on these sources is recorded on a trade date basis. The Company also receives invesment advisory fees recorded on a quarterly basis. Revenue is recognized in &e month that fees are charged to clieots. The Company does not receive performaoce fees in an investment advisory capaclty. The Company does not engage in investnent baoking, mergers and acquisition activities or private placements. Cash aad Cash Equivalents - The Company considers highly liquid investrtrents with original maturities of one year or less to be cash equivalents. {7}------------------------------------------------ # PUBLIC LOMBARD SECTJRITIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINAI\ICIAL STATEMENTS DECEMBER 31,2025 # NOTE 2 - SIGNIFICAIIT ACCOUNTING POLICIES (Continued) Securitie.s Owned - Securities owned are valued at their fair market value, deterrnined from quoted market prices. Property and Equipment - Fumiture and equipment are stated at cost net of \$282,770 accumulated depreciation. Depreciation is calculated using the staight-line method over the estimated usefirl lives ofthe assets, usually 3 to 5 years. Depreciation expense for the year ended December 31, 2025 was \$2,990. Use of Estimates - The preparation of financiai 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 statemeirts and the reported amounts ofrevenues and expenses dwing the reporting period. Actual results could differ ftom those estimates. Income Taxes - lncome taxes are provided for the tax effects oftmnsactions reported in the financial statements and consist oftaxes currently due plus deferred taxes. 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 fiaancial statements. No defened tax assets have been recorded in the accompanying balance sheet due to the uncertainty ofrealization. In general the prior tlree years tax retums filed with various taxing agencies are open to ex+dnation. Supplemental Cash Flow Disclosure - \$190,892 cash was paidfor income taxes and \$4,101 interest was paid during the year ended December 31, 2025. Operating Leases - On January 1,2019, the Company adopted the provisions of ASU 2016-02,' Leases (Topic 842). Under the new guidance, lessees are requted to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 montbs. Leases will either be classified as filance or operating, wi& classificatiol affecting the pattem of expense recoPition in the income statement'. # NOTE 3. COMMISSIONS RECETVABLE Comrnissions receivable represent amounts due to the Company from its clearing broker relating to client securities tansactions introduced by the Company and amounts due from mufiral funds and insurance companies. # NOTE 4 - CLAIMS A}tD ASSESSMENTS The Company is generally engaged in ongoing legal matters. I I U {8}------------------------------------------------ t # NOTE 5 - OFF.BALANCE.SHEET RISK A clearing broker/dealer carries all of the accounts ofthe clients of the Compaoy and is responsible for execution, collection and payment of frmds, and receipt and delivery of securities related to client trarsactions. Of-balance-sheet risk exists with respect to these transactions due to the possibility that clients may be ,nable to fuIfiIl their contractual commitments wherein the clearing broker/dealei may c\arge any losses it incrns to the company. The company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its clients and verifu that client transactions are executed properly by the clearing broker/dealer. ## NOTE 6 -IYET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Ruie @ule 15c3-l), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capiul, both as defined, shall not exceed 15 to I . The nrle also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio exceeds 10 to 1. At Decem.ber 31,2025, the Company is in compliance with this rule. Lombard Advisers Incorporated, a wholly-owned subsidiary ofthe company, is required to compute net capital pursuant to the Securities and Exchenge Coomission Uniform N\* Capital Rule (Rute 15c3-1) ou a stand-aloae basis. At December 31,2025, Lombard Advisers Incorporated hrd net capital of\$779,636. ## NOTE 7 -LEASE COMMITMENTS The Company has etrtered into a lease for office facilities which expires on March 31,2027. ln addition to the base rent specified in the lease, it is subject to escalation based on"increases in real estate tax and operatiry expenses. As of December 31,2025 the operating lease asset was equal to 5171,407 and the operating lease liability was \$171,407. ls1grs minimrrm lease payments r€quircd uuder this operating lease exclusive ofthose escalations are as follows: | 2026 | t43,793 | |-------|---------------| | 2027 | 35.195 | | Total | \$
179.988 | Rent expense for the year ended December 31, 2025 was \$ 160,893. ## NOTE E - EMPLOYEE RETIREMENT PI.AII The Company has an employee retirement plan whereby the Company matches a portion of the contributions made by the employees. Ali employees meeting certain age and service requirements' are eligible to participate in the plan. The Company matched amount as of December 31, 2025 was \$t4,246. {9}------------------------------------------------ t # LOMBARD SECT]RITIES INCORPORATED A}iD SUBSIDTARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31,2025 ## NOTE 9 - ADYERTISING Advertising costs are expensed as incr:rred. For the year ended December 3 1, 2025 costs were \$0. ## NOTE IO-CREDIT I,()SSES A broker dealer, howbver, is not required to measur€ expected credit losses on a financial asset (or group of financial assets) itr which historical sedit loss information adjused 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 ofthe financial assets and immaterial historic or expected losses. ## NOTE 11- SEGMENT DISCLOSURES The Company is engaged in the lines of business as a securities broker deaier, insurance agency and investuert advisory services. The Company has identified its Prilcipal 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. fidditi6nally, the CODM uses excess net capital, which is not a measure of profit and loss, to make operational decisions wbile maintaining capitai adequacy, such as whether to reinvest profits or pay dividends. The Company's operations consist of multiple operating units. The accouating policies used to measure the profit and loss of the segm.ents are the sape as those described in the summary of sipificant accounting policies. | | Lombard | Lombard | Lombard | Lombard | |-------------------|-----------------|---------------|-------------|------------------| | | Securities Inc. | Advisers Inc. | Agency [nc. | Asency ofTX lnc. | | Revenues from | | | | | | Customer | 5,927,938 | 4,423,t23 | 115,973 | | | Transactiors | | | | | | I-nterest Revenue | 1)) )O1 | 48 | | | | Dividend Revenue | | | | | | Other lncome | 651,329 | 37,549 | | | | Total Revenues | 6,701,564 | 4,460,720 | 115,973 | | | Intercst Expense | 4,101 | | | | | Deprecation | | | | | | Amount | 2,990 | | | | | Non-Cash | | | | | | Financi::g | | | | | | Seprnent Assets | 3,3s0,390 | 1,588,075 | 35,838 | 1,000 | LOMBARD SECURITIES INCORPORATED December 31 2025 {10}------------------------------------------------ / # LOMBARD SECT]RITIES INCORPORATED AND SI,]BSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER31,2025 # NOTE 12 - SUBSEQU-ENT EVENTS Management bas evaluated subsequent events through March 30, 2026, the date on which the financial stat€ments were available to be issued. No other events have occurred since the balance sheet date that would bave material impact on financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.