# COUNTRY CLUB FINANCIAL SERVICES, INC. X-17A-5 (2022-02-25) — Broker-dealer annual report - Company: COUNTRY CLUB FINANCIAL SERVICES, INC. - Form: X-17A-5 - Filed: 2022-02-25 - Period: 2021-12-31 - Accession: 0000883923-22-000001 - CIK: 883923 - File #: 8-44574 - Type: Broker-dealer - Material weakness: No - Auditor: BKD - Auditor location: Kansas City, MO - Contact: Sandra Dershem-Vega - Phone: 8167514223 - Email: sdershem@countryclubfinancial.com - Website: countryclubfinancial.com - Signed by: Sandra Dershem-Vega (President) Original filing: https://www.sec.gov/Archives/edgar/data/883923/000088392322000001/FinancialStatement2021-P.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) # **Statement of Financial Condition December 2021** (With Reports of Independent Registered Public Accounting Firm Thereon) Filed as PUBLIC information pursuant to Rule 17a-5(d) under Securities Exchange Act of 1934. {1}------------------------------------------------ # **Country Club Financial Services, Inc.** Statement of Financial Condition December 2021 (With Reports of Independent Registered Public Accounting Firm Thereon) Filed as PUBLIC information pursuant to Rule 17a-5( d) under Securities Exchange Act of 1934. {2}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | ANNUAL REPORTS | |----------------| | FORM X-17 A-5 | | PART Ill | | 0MB APPROVAL | | |--------------------------|--| | 0MB Number: 3235-0123 | | | Expires: Oct. 31, 2023 | | | Estimated average burden | | | hours per response: 12 | | | | SEC FILE NUMBER | | | | | |-----------------------------------------------------------------------------------------------------------|-----------------|--|--|--|--| | FORM X-17 A-5 | 8-44574 | | | | | | PART Ill | | | | | | | FACING PAGE | | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | AND ENDING 12/31/2021
FILING FOR THE PERIOD BEGINNING 01/01/2021 | | | | | | | MM/DD/YY | MM/DD/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME oF FIRM : Country Club Financial Services, Inc. | | | | | | TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer □ Security-based swap dealer D Check here if respondent is also an OTC derivatives dealer D Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 1 Ward Parkway | | (No. and Street) | | | |---------------------------------------------------------------------------------------|-----------------------------------------------------------------------|----------------------------------------|------------| | Kansas City | MO | | 64112 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Sandra Dershem-Vega 816-751-4223
sdershem@countryclubfinancial.com | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
BKD, LLP | (Name - if individual, state last, first, and middle name) | | | | 1201 Walnut Street, Suite 1700 Kansas City | | MO | 64106 | | (Address) | (City) | (State) | (Zip Code) | | 10/16/2003 | | 686 | | | rte
of Reg;~rat;oo w;th PCAOB)(if applicable) | | (PCAOB Reg;m,Mo N,mbec, if applicable) | I | | | 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-S(e)(l)(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 0MB control number. {3}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Sandra Dershem-Vega | swear (or affirm) that, to the best of my knowledge and belief, the | |----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------| | financial report pertaining to the firm of Country Club Financial Services, Inc. | as of | | December 31 | 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. | MARGEAUX SEYMOUR | |---------------------------------| | NOTARY PUBLIC-NOTARY SEAL | | STATE OF MISSOURI | | JACKSON COUNlY | | MY COMMISSION EXPIRES 2/21/2025 | | COMMISSION# 21747043 | | | | Title: | J-' | |-----------|-----| | President | | #### **This filing\*\* contains (check all applicable boxes):** - ~ (a) Statement of financial condition. - ~ (b) Notes to consolidated statement of financial condition. - D (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§ 210.1-02 of Regulation S-X). - D (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.18a-l, 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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **i!!!I** (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. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **i!!!I** (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or 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. - D (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. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, 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 240.17a-12(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5{e}{3} or 17 CFR 240.18a-7(d}{2}, as applicable.* {4}------------------------------------------------ ### **Country Club Financial Services, Inc. December 31, 2021** ### **Contents** **Report of Independent Registered Public Accounting Firm** ................................ **............ 1** #### **Financial Statements** | Statement of Financial Condition 2 | | |--------------------------------------------------|--| | Notes to Statement of Financial Condition 3 | | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) ### **Report of Independent Registered Public Accounting Firm** Board of Directors and Stockholder Country Club Financial Services, Inc. Kansas City, Missouri #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Country Club Financial Services, Inc. (the "Company") a wholly owned subsidiary of Country Club Bank, as of December 31, 2021, including the related notes ( collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement 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 the Company 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 statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2013. Kansas City, Missouri February 23, 2022 ![](_page_5_Picture_12.jpeg) {6}------------------------------------------------ # **Country Club Financial Services Inc.** **Statement of Financial Condition December 31, 2021** | Assets | 2021 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------| | Cash and cash equivalents
Accounts receivable
Prepaid expenses
Furniture, fixtures and equipment -
net of accumulated
depreciation of \$91
,845 | \$ 9,024,553
30,833
140,163
33,642 | | Total assets | \$ 9,229,191 | | Liabilities | | | Accounts payable | \$
35,640 | | Income taxes accrued | \$
81,123 | | Total liabilities | 116,763 | | Stockholder's Equity | | | Common stock, \$0.10 par value; authorized 100,000 shares; | | | issued and outstanding 1,000 shares | 100 | | Additional paid-in capital | 6,617,900 | | Retained earnings | 2,494,428 | | Total stockholder's equity | 9,112,428 | | Total liabilities and stockholder's equity | \$ 9,229,191 | | | | {7}------------------------------------------------ ### **Country Club Financial Services Inc. Notes to Statement of Financial Condition December 31, 2021** #### **Note 1: Nature of Operations and Summary of Significant Accounting Policies** #### **Nature of Operations** Country Club Financial Services, Inc. ("the Company") is a limited services securities broker that provides investment banking services, the sale of fixed insurance and annuity products, and sells institutional non-interest fee income products under its own name and also under the names of Wheatland Advisors, Country Club Capital Advisors and The Capital Corporation. The Company employs 13 registered representatives at offices in 3 locations in Kansas and Missouri. The Company is licensed in 2 states, and is a member in good standing of the Financial Industry Regulatory Authority ("FINRA") and the state agencies. The firm is also a member of the Securities Investor Protection Corporation. The Company is registered with the Securities and Exchange Commission ("SEC") and is subject to the net capital requirements of SEC Rule 15c3-l and is exempt from the reserve requirements and possession or control requirements of SEC Rule 15c3-3. The Company is a wholly-owned subsidiary of Country Club Bank ("Parent"), and the Parent is a wholly-owned subsidiary of CCB Financial Corporation ("Holding Company"); as such, the Company files a consolidated S corporation income tax return with both its Parent and the Holding Company. #### **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 amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. #### **Cash Equivalents** The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2021 cash equivalents consisted primarily of a money market account with an unaffiliated institution. #### **Income Taxes** The Company's Parent and Holding Company have elected S-corporation status for the consolidated group. The Holding Company is no longer subject to federal or state income tax examinations by taxing authorities before 2018. {8}------------------------------------------------ ### **Country Club Financial Services Inc. Notes to Statement of Financial Condition December 31, 2021** #### **Note 2: Related-party Transactions** The Parent provides management services and office space as needed at a cost to the Company. The Company maintains its primary operating cash account at Country Club Bank. The balance in this account was \$474,352 at December 31, 2021. #### **Note 3: 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 a minimum amount of net capital, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-l also provides that equity capital may not be withdrawn or cash dividends paid, if the resulting net capital ratio would exceed 10 to 1. Net capital requirements at December 31, 2021: | | 2021 | | | |------------------------------|------|-------------|--| | | | | | | Net capital | \$ | 8,736,785 | | | Aggregate indebtedness | | 116,763 | | | Minimum net capital required | | 5,000 | | | Excess net capital at 1500% | | 8,729,001 | | | Excess net capital at 1000% | | 8,725,109 | | | Net capital ratio | | 0.0134 to 1 | | #### **Note 4: Disclosures about the Fair Value of Financial Instruments** Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities - Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. - Level 3 Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities {9}------------------------------------------------ ### **Country Club Financial Services Inc. Notes to Statement of Financial Condition December 31, 2021** #### **Recurring Measurements** The following tables present the fair value measurement of assets recognized in the accompanying statement of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31 , 2021. Money market funds are classified within Level 1 of the hierarchy. The firm held no securities classified within level 2 or level 3 of the hierarchy. | | | 2021
Fair Value Measurements Using | | | | | | |-------------------|-------------|---------------------------------------|---------------|-----------|-------------|-----------|--------------| | | | | | | | | | | | | | Quoted Prices | | | | | | | | | in Active | | Significant | | | | | | | Markets for | | Other | | Significant | | | | | Identical | | Observable | | Unobservable | | | | | Assets | | Inputs | | Inputs | | Asset | Fair Value | (Level 1) | | (Level 2) | | (Level 3) | | | Money market fund | \$8,550,000 | \$ | 8,550,000 | \$ | | \$ | | ### **Note 5: Commitments and Contingencies** #### **General Litigation** The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the financial position, results of operations and cash flows of the Company. #### **Current Economic Conditions** Changing economic and financial market conditions could adversely affect the Company's results of operations in future periods. The accompanying financial statements have been prepared using values and information currently available to the Company. #### **Note 6: Subsequent Events** Subsequent events have been evaluated through February 23, 2022, which is the date the financial statements were issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.