# HEALTHCARE COMMUNITY SECURITIES CORP. X-17A-5 (2026-03-02) — Broker-dealer annual report - Company: HEALTHCARE COMMUNITY SECURITIES CORP. - Form: X-17A-5 - Filed: 2026-03-02 - Period: 2025-12-31 - Accession: 0000920062-26-000004 - CIK: 920062 - File #: 8-46981 - Type: Broker-dealer - Material weakness: No - Auditor: UHY LLP - Auditor location: Albany, NY - Contact: Mary Katherine Hayes - Phone: 5184317786 - Signed by: Mary Katherine Hayes (Chief Financial Officer and Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/920062/000092006226000004/hcscafs2025a.pdf --- {0}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION Years ended December 31, 2025 and 2024 {1}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION # TABLE OF CONTENTS | 1
Independent Auditor's Report | |----------------------------------------------------------------------------------------------| | | | Financial Statements | | 2
Statements of Financial Condition
3
Statements of Income and Comprehensive Income | | 4
Statements of Changes in Stockholder's Equity | | 5
Statements of Cash Flows | | 6
Notes to Financial Statements | | Supplemental Information | | 16
Schedule I - Computation of Net Capital Pursuant to SEC Rule 15c3-1 | | Other Reports | | 17
Independent Auditor's Report on Exemption Report | | 18
Healthcare Community Securities Corporation Exemption Report | {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Healthcare Community Securities Corporation #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Healthcare Community Securities Corporation as of December 31, 2025, and 2024, the related statements of income and comprehensive income changes in stockholder's equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Healthcare Community Securities Corporation as of December 31, 2025, and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of Healthcare Community Securities Corporation's management. Our responsibility is to express an opinion on Healthcare Community Securities Corporation'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 Healthcare Community Securities Corporation 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, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the 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 of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### Auditor's Report on Supplemental Information The supplemental information contained in Schedule I - Computation of Net Capital Pursuant to Rule 15c3-1 has been subjected to audit procedures performed in conjunction with the audit of Healthcare Community Securities Corporation's financial statements. The supplemental information is the responsibility of Healthcare Community Securities Corporation's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplemental information contained in Schedule I - Computation of Net Capital Pursuant to Rule 15c3-1 is fairly stated, in all material respects, in relation to the financial statements as a whole. UHY LLP We have served as Healthcare Community Securities Corporation's auditor since 1999. Albany, New York February 27, 2026 {3}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) STATEMENTS OF FINANCIAL CONDITION | | December 31, | | | | |-----------------------------------------------------------------------------|---------------------|-------------------|--|--| | | 2025 | 2024 | | | | ASSETS | | | | | | CURRENT ASSETS | | | | | | Cash and cash equivalents | ક
9,871,072 | 9,862,041
ಕ್ಕೆ | | | | Commissions receivable | 731,334 | 736,342 | | | | Prepaid expenses and other assets | 314,664 | 188,258 | | | | Total current assets | 10,917,070 | 10,786,641 | | | | ASSETS LIMITED AS TO USE | 38,770 | 74,784 | | | | DEFERRED TAX ASSET | 84,219 | 82,482 | | | | Total assets | સ્ત્ર
11,040,059 | \$10,943,907 | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | | | | CURRENT LIABILITIES | | | | | | Accrued expenses | ક
212,580 | ક
198,059 | | | | Current portion of accrued postretirement benefit | | | | | | obligation | 626 | 551 | | | | Due to affiliates | 2,645,386 | 2,524,398 | | | | Total current liabilities | 2,858,592 | 2,723,008 | | | | LONG-TERM LIABILITIES | | | | | | Other liabilities | 38,770 | 74,782 | | | | Accrued postretirement benefit obligation, net of | | | | | | current portion | 10,912 | 10,128 | | | | Total liabilities | 2,908,274 | 2,807,918 | | | | STOCKHOLDER'S EQUITY | | | | | | Common stock, no par value; 100 shares authorized
issued and outstanding | | | | | | Additional paid-in capital | 100,000 | 100,000 | | | | Retained earnings | 7,944,319 | 7,944,319 | | | | Accumulated other comprehensive income | 87,466 | 91,670 | | | | Total stockholder's equity | 8,131,785 | 8,135,989 | | | | Total liabilities and stockholder's equity | 11,040,059
રે | \$10,943,907 | | | {4}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | | Years Ended December 31, | | | | |---------------------------------------------------|--------------------------|-----------|--------------|--| | | | 2025 | 2024 | | | STATEMENTS OF INCOME | | | | | | Revenues: | | | | | | Commissions | ક | 6,717,687 | \$6,839,245 | | | Consulting fees and other income | | 521,481 | 472,880 | | | | | 7,239,168 | 7,312,125 | | | Expenses: | | | | | | Corporate | | 2,367,033 | 2,247,718 | | | Employee compensation and benefits | | 1,641,076 | 1,630,976 | | | Other operating expenses | | 235,287 | 253,654 | | | Professional fees | | 211,045 | 172,966 | | | Оссирапсу | | 37,204 | 50,730 | | | Insurance | | 101,030 | 99,484 | | | Consulting | | 13,625 | 45,000 | | | | | 4,606,300 | 4,500,528 | | | Operating income before taxes | | 2,632,868 | 2,811,597 | | | Interest Income | | 90,202 | | | | Realized and unrealized gains on investments, net | | 1,893 | 3,105 | | | Income before taxes | | 2,724,963 | 2,814,702 | | | Income tax expense | | (683,081) | (704,371) | | | Net income | 6 | 2,041,882 | \$2,110,331 | | | STATEMENTS OF COMPREHENSIVE INCOME | | | | | | Net income | લ્લે | 2,041,882 | \$2,110,331 | | | Other comprehensive income: | | | | | | Post retirement benefits loss | | (4,204) | (4,636) | | | Comprehensive income | ક | 2,037,678 | \$ 2,105,695 | | {5}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY Years Ended December 31, 2025 and 2024 | | | Common
Stock | Additional
Paid-in
Capital | Retained
Earnings | Accumulated
Other
Comprehensive
Income | | Total | | |-------------------------------|----|-----------------|----------------------------------|----------------------|-------------------------------------------------|---------|-------|-------------| | Balance, January 1, 2024 | ಕಾ | | \$ 100,000 | 7,944,319
ക | સ્ત્ર | 96,306 | A | 8,140,625 | | Net income | | | | 2,110,331 | | | | 2,110,331 | | Dividends declared | | | | (2,110,331) | | | | (2,110,331) | | Post employment benefits loss | | | | | | (4,636) | | (4,636) | | Balance, December 31, 2024 | | | 100,000 | 7,944,319 | | 91,670 | | 8,135,989 | | Net income | | | | 2,041,882 | | | | 2,041,882 | | Dividends declared | | | | (2,041,882) | | | | (2,041,882) | | Post employment benefits loss | | | | | | (4,204) | | (4,204) | | Balance, December 31, 2025 | S | | \$ 100,000 | ಳಿ
7,944,319 | ಕ | 87,466 | | 8,131,785 | {6}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) STATEMENTS OF CASH FLOWS | CASH FLOWS FROM OPERATING ACTIVITIES
2,041,882
ಕಾ
Net income
2,110,331
લુક
Adjustments to reconcile net income to net cash
provided by operating activities:
4,542
Deferred taxes
(1,737)
Realized and unrealized gain on assets limited as to use
(1,893)
(3,105)
Changes in:
Commissions receivable
5,008
(36,336)
Prepaid expenses and other assets
(126,406)
41,359
Accrued expenses
14,521
(14,586)
Due to affiliates other than dividends
189,437
252,461
Other liabilities
3,105
1,895
Accrued postretirement benefit obligation
(3,345)
(5,212)
Cash provided by operating activities
2,352,560
2,119,362
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to affiliate
(1,854,330)
(2,110,331)
Cash used in financing activities
(1,854,330)
(2,110,331)
NET INCREASE IN CASH AND CASH EQUIVALENTS
9,031
498,230
CASH AND CASH EQUIVALENTS, Beginning of year
9,862,041
9,363,811
CASH AND CASH EQUIVALENTS, End of year
ક
9,871,072
9,862,041
ને
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
ક
684,818
Cash payments for income taxes
ક
699,829
SUPPLEMENTAL DISCLOSURES OF NON-CASH INFORMATION | 2025 | Years Ended December 31,
2024 | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|----------------------------------|--|--| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ક
Distributions from assets limited as to use through other liabilities
ક
37,907
36,891 | | | | | {7}------------------------------------------------ # NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization (a) > Healthcare Community Securities Corporation (the Corporation) is a wholly-owned subsidiary of Group Insurance Agency, Inc. (GIA). GIA is a wholly-owned subsidiary of HANYS Services, Inc. (Parent). Parent is a wholly-owned subsidiary of Healthcare Association of New York State, Inc. (HANYS). The Corporation was formed for the purpose of providing investment products and services to HANYS' members and their employees. The Corporation is a broker-dealer registered with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority (FINRA). > Group Insurance Agency, Inc. (d/b/a TruePlan Benefit and Retirement Advisors) provides employee benefit programs and group and individual insurance products principally to HANYS' members and their employees. > HANYS Services, Inc. (d/b/a HANYS MarketPlace) is the parent of GIA and other for-profit subsidiaries which provide software products, data analytics, and consulting services primarily to HANYS' members and the national hospital and healthcare market. > HANYS is a membership organization which provides various dues-supported services and programs to non-profit healthcare providers within New York State. (b) Basis of Presentation The financial statements of the Corporation have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). # (c) Revenue Recognition/Commission and Other Receivable Commission revenue on mutual fund and variable annuity transactions is recorded based on the trade date. The Corporation believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership of the securities have been transferred to the customer. Fee arrangements are based on a percentage applied to the customer's assets under management. Consulting revenue is generated from consulting and advisory services which are recognized as earned. The Corporation believes the performance obligation for consulting revenue is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Corporation. Fee arrangements are either fixed or based on a percentage applied to the customer's assets under management. Fees are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. Commissions and other receivable represent revenues earned on these transactions, but not collected by the Corporation. There were no unsatisfied performance obligations outstanding as of the beginning or ending of the years ended December 31, 2025 or December 31, 2024. {8}------------------------------------------------ # NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ### (d) Current Expected Credit Losses (CECL) The Corporation follows ASC Topic 326, Financial Instruments - Credit Losses (ASC 326). ASC 326 impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss (CECL) methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update, the Corporation can determine there are no expected credit losses in certain circumstances (e.g., based on collateral arrangements or based on the credit quality of the borrower or issuer). For certain financial assets measured at amortized cost (e.g., cash and cash equivalents), the Corporation has concluded that there are de minimis expected credit losses based on the nature and contractual life or expected life of the financial assets and immaterial historic and expected osses. The Corporation identified receivables as impacted by the guidance. The Corporation's conclusion that an allowance for credit losses was not required is based on the Corporation's expectation for the collectability of the receivable utilizing the CECL framework. The Corporation considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Corporation's expectation of the collectability in determining the allowance for credit losses. The Corporation's expectation is that the credit risk associated with fees is not significant based on the contractual arrangement and expectation of collection in accordance with industry standards. At December 31, 2025 and 2024, an allowance for credit losses was not considered necessary. #### Income Taxes (e) The Corporation is a for-profit corporation under the provisions of the Internal Revenue Code and is included in a consolidated federal income tax return and a combined state income tax return with its Parent. The Parent charges each related entity, including the Corporation, for its share of federal and state income tax expense, as if it filed a separate return. Income tax expense has been provided on income as reported in the statements of income. The Parent and subsidiaries account for income taxes under the asset and liability method of accounting for income taxes. Under this method, a deferred tax liability is recognized for taxable temporary differences and a deferred tax asset is recognized for deductible temporary differences, tax credit carryforwards and operating loss carry forwards. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that all, or some portion, of such deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in the period that includes the enactment date. The Corporation follows the guidance issued by the Financial Accounting Standards Board (FASB) regarding accounting for uncertainty in income taxes. This quidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. {9}------------------------------------------------ # NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) #### (e) Income Taxes (Continued) A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. The Corporation believes that there are no tax positions taken or expected to be taken that would significantly increase or decrease unrecognized tax benefits within 12 months of the reporting date. In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU enhances the transparency of income tax disclosures by requiring additional disaggregation of information in the effective tax rate reconciliation and income taxes paid disclosures. The Corporation adopted ASU 2023-09 effective January 1, 2025, on a prospective basis. The adoption did not have a material impact on the Corporation's financial position, results of operations, or cash flows, but resulted in expanded income tax disclosures. # (f) Exemption under Footnote 74 of Release No. 34-70073 The Corporation is a non-covered broker dealer and as such, it does not maintain custody of customer securities and/or cash. The Corporation is not required to maintain a reserve account for the benefit of customers under Footnote 74 of Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 of the Securities and Exchange Commission. #### Use of Estimates (g) The preparation of financial statements in conformity with generally accepted accounting principles 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### (h) Cash and Cash Equivalents For purposes of the statements of cash flows, the Corporation considers cash and cash equivalents to be cash on hand, cash in banks and cash reserved to maintain a net capital balance which meets or exceeds the minimum required by the SEC Rule 15c3-1. The Corporation's cash is deposited with institutions of high credit quality. At times, these amounts may exceed Federal Deposit Insurance Corporation insurance limits. {10}------------------------------------------------ # NOTE 1 - DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) #### (i) Assets Limited as to Use The Corporation has a nonqualified deferred compensation plan that permits eligible employees to defer a portion of their compensation. Realized and unrealized investment gains and losses accrue based on investment selections of the participant and are recognized in the Corporation's financial statements. The deferred amounts are distributable in cash after retirement or termination of employment. There is a corresponding liability equal to the plan assets recorded within Other liabilities. #### (i) Other Post-Retirement Costs Employers' accounting for defined benefit pension and other postretirement plans requires the recognition of a postretirement benefit plan's funded status as either an asset or liability on the statements of financial condition. The gain or loss and prior service cost or credits that arise during the period but are not recognized as components of net periodic benefit costs, are recognized as a component of other comprehensive income. Amounts recognized in accumulated other comprehensive income are adjusted as they are subsequently recognized as components of net periodic benefit cost. #### (k) Advertising Costs The Corporation expenses all advertising costs as incurred. Advertising costs amounted to approximately \$28,000 and \$32,000 for the years ended December 31, 2025 and 2024, respectively. (1) Subsequent Events > For purposes of preparing the financial statements, the Corporation considered events through February 27, 2026. # NOTE 2 - RELATED PARTY TRANSACTIONS Pursuant to an expense sharing agreement, HANYS, HSI, and GIA allocate certain administrative and operating expenses (corporate expenses) and occupancy expenses to the Corporation and are reimbursed by the Corporation on a monthly basis. Corporate expenses allocated from HANYS, HS, and GIA to the Corporation approximated \$2,367,000 and \$2,248,000 in 2025 and 2024, respectively. Amounts due to affiliates at December 31, 2025 and 2024 represent the net liability due to HANYS, HSI and GIA for allocated expenses, declared dividends, and the Corporation's share of federal and state income tax expense and is payable in the normal course of business without interest. For the years ended December 31, 2025 and 2024, dividends in the amounts of \$2,041,882 and \$2,110,331, respectively, were declared. Dividends declared at December 31, 2024 were paid in 2025. {11}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) NOTES TO FINANCIAL STATEMENTS December 31. 2025 and 2024 # NOTE 3 - OTHER OPERATING EXPENSES Other operating expenses for the years ended December 31 consisted of the following: | | 2025 | | 2024 | | |-----------------------------------|------|------------------|------|------------------| | Travel
Maintenance and repairs | ಕ್ಕಾ | 60,514
49.752 | ക | 59,559
60.655 | | Office supplies and other | | 28.307 | | 35,739 | | Telephone | | 27,360 | | 25.998 | | Advertising and promotion | | 28,030 | | 32,060 | | Licensing fees | | 27.990 | | 28,613 | | Direct administrative fees | | 13,334 | | 11,030 | | | ಲ್ಲಾ | 235,287 | မွာ | 253.654 | # NOTE 4 - EMPLOYEE BENEFIT PLANS ### Defined Contribution Retirement Plan The Corporation participates in HANYS' defined contribution retirement plan. The Corporation's contributions to the plan are discretionary but may not exceed 10% of participants' compensation. Participants may make voluntary contributions to the plan based upon limitations as established by the Internal Revenue Code. Retirement plan costs charged to operations for the years ended December 31, 2025 and 2024 were approximately \$112,000 and \$111,000, respectively. # Deferred Compensation Plans The Corporation has a voluntary deferred compensation plan for the Corporation's highly compensated employees. This plan provides for benefits to the employees at the age of retirement (65 years old). Annual deferrals are based on a percentage of the participant's salary, and are subject to limits under the Internal Revenue Code. There was one participant in the plan as of December 31, 2025 and 2024. The assets held on behalf of the participant for the plan are reported in the statements of financial condition as assets limited as to use and the unfunded obligation is reported as other liabilities. These assets are considered general assets of the Corporation. At December 31, 2025 and 2024, plan balances totaled \$38,770 and \$74,784 respectively. ### Other Post Retirement Benefits HANYS provides postretirement health and life insurance benefits to certain employees of its subsidiary and related corporations through the Healthcare Association of New York State, Inc. Postretirement Welfare Plan (the postretirement plan) for certain full-time employees with over five years of service who meet minimum age and service requirements at the time of termination and elect to receive benefits upon retirement. In 2019, HANYS offered a one-time enrollment option to those {12}------------------------------------------------ # NOTE 4 - EMPLOYEE BENEFIT PLANS (Continued) ### Other Post Retirement Benefits (Continued) retirees who did not immediately elect the benefit upon retirement. Under the plan, enrollment is only allowed at the time of retirement. The maximum amount of benefits available to retirees is limited by HANYS' policy. A summary of the Corporation's allocated share of the funded status of the postretirement plan and other plan information is as follows: | | | 2025 | 2024 | | | |----------------------------------------------------------------------------------------------------------------------------|------|----------|------|----------|--| | Benefit obligation
Fair value of plan assets | ക | (11,538) | ക | (10,679) | | | Funded status - (unfunded) | ക | (11,538) | ക | (10,679) | | | Accrued other postretirement benefit obligation
recorded in the statements of financial
position - other liabilities | ക | (11,538) | ക | (10,679 | | | Items not yet recognized as a component of net
periodic pension cost:
Net gain | ಕ್ಕಿ | (87,466) | ಕಾ | (91,670) | | | Accumulated other comprehensive income
net of deferred tax benefit/expense | ക | (87,466) | ಕಾ | (91,670) | | | Weighted-average assumptions for net benefit
obligation and net benefit cost | | | | | | | Discount rate | | 5.6% | | 5 0% | | | Rate of compensation increase | | 0.0% | | 0.0% | | The discount rate used in determining the accumulated postretirement benefit obligation (APBO) was 5.35% and 5.60% as of December 31, 2025 and 2024, respectively. For measurement purposes, an annual rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) was assumed to be 5.0% for Medicare Choice, 6.5% for other Medical, and 3% for Dental and Vision. {13}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 # NOTE 4 - EMPLOYEE BENEFIT PLANS (Continued) ### Other Post Retirement Benefits (Continued) Components of projected net periodic pension cost for the years ended December 31 are: | | | 2025 | | 2024 | | | |----------------------------------------------------------------------------------------------|------|----------------|----|----------------|--|--| | Service cost for benefits earned
Interest cost on benefit obligation
Gain Amortization | ക | 583
(3,890) | ಕಾ | 550
(5,724) | | | | Periodic benefit income | ಲ್ಲಿ | (3,307) | ക | (5,174) | | | | Employer contribution made | ಕಾ | 38 | S | 38 | | | | Benefits paid | ക | 38 | ക | 38 | | | Other changes in plan benefit obligations, which is the only item recognized in other comprehensive income, were as follows: | | | 2025 | | 2024 | | |----------------------------------------------------------------------|---|--------------|------------------------------|------|------------------| | Current year actuarial loss (gain)
Amortization of actuarial gain | ಕ | 314
3,890 | | ಕೆ | (1,088)
5,724 | | Total recognized in other comprehensive income | | \$ | မြန်မာနိုင်ငံ ရွာများ ဧရာဝတီ | | 4,636 | The estimated costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2026 are as follows: | Actuarial gaın | \$ (2,946) | |----------------|------------| | Total | \$ (2,946) | Expected benefit payments for the next five years and the five years thereafter, using a December 31 measurement date, are as follows: | 2026 | ಳ | 626 | |-----------|---|-------| | 2027 | | 678 | | 2028 | | 737 | | 2029 | | 799 | | 2030 | | 861 | | 2031-2035 | | 5,036 | {14}------------------------------------------------ # NOTE 5 - NET CAPITAL REQUIREMENTS The Corporation is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital of 6 2/3% of aggregate indebtedness, but not less than \$25,000, and that the ratio of aggregate indebtedness to net capital as defined, shall not exceed 15 to 1. The Rule also restricts the payment of dividends in certain cases. At December 31, 2025, the Corporation had net capital of approximately \$7,583,000, which was approximately \$7,389,000 in excess of its minimum required net capital of approximately \$194,000 at December 31, 2025. The Corporation's ratio of aggregate indebtedness to net capital was approximately .38 to 1 for December 31, 2025. # NOTE 6 - PROVISION FOR INCOME TAXES Federal and state income tax expense attributable to the Corporation for the years ended December 31 were as follows: | | 2025 | | 2024 | | | |------------------------------------------|------|--------------------|------|-----------------------|--| | Federal tax expense
State tax expense | ക | 544.991
139.827 | | \$ 559,592
140.237 | | | Deferred tax (benefit) expense | | (1,737) | | 4,542 | | | Total income taxes | ಳಿ | 683.081 | | \$ 704,371 | | Income taxes paid, net of refunds, for the year ended December 31, 2025 were as follows: | Federal | ಕಾ | 544.991 | |-----------------|----|---------| | State and local | | 139.827 | | | S | 684.818 | The Corporation's effective income tax rate for the year ended December 31, 2025 differed from the U.S. federal statutory income tax rate as follows: | | Amount | | % | | |------------------------------|--------|---------|-------|--| | U.S. federal statutory rate | ર્ટ | 544.991 | 21.0% | | | State and local income taxes | | 139,827 | 5.4% | | | Other, net | | (1,737) | -0.1% | | | Effective income tax rate | S | 683.081 | 26.3% | | {15}------------------------------------------------ # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 # NOTE 6 - PROVISION FOR INCOME TAXES (Continued) The tax effects of temporary differences that give rise to significant portions of deferred tax assets at December 31 are presented below: | | | 2025 | 2024 | |-----------------------------------|-----|--------|-----------| | Deferred tax assets | | | | | Accrued incentive compensation | ಕ | 32,162 | \$ 30.893 | | Accrued compensated absences | | 24,831 | 23,443 | | Accrued post retirement liability | | 27.226 | 28, 146 | | Net deferred tax assets | ર્દ | 84.219 | \$ 82,482 | # NOTE 7 - CONCENTRATIONS OF CREDIT RISK Financial instruments that potentially subject the Corporation to concentrations of credit risk consist of cash accounts which, at times, may exceed the Federal Deposit Insurance Corporation (FDIC) coverage of \$250,000. However, the Corporation minimizes the risk of loss by depositing its cash and temporary cash investments with high credit quality financial institutions. # NOTE 8 - SEGMENT REPORTING The Corporation is engaged in a single line of business as a securities broker-dealer, which is comprised of services disclosed in Note (c). Using the management approach, qualitative and quantitative criteria established by ASC 280, the Corporation is considered to be a single reportable segment referred to as the brokerage services segment. The Chief Operating Decision Maker ("CODM") is the Corporation's President who makes decisions about allocating resources and assessing performance in a manner consistent with the way the Corporation operates its business and presents its financial results. The nature of business and accounting policies of the brokerage services segment are the same as described in the organization and nature of business and summary of significant accounting policies. The Corporation's segment assets are the same as those reported in the Corporation's statements of financial condition. The Corporation's segment profit and significant segment expenses are the same as those reported in the Corporation's statements of income. {16}------------------------------------------------ # SUPPLEMENTAL INFORMATION {17}------------------------------------------------ # SCHEDULE I # HEALTHCARE COMMUNITY SECURITIES CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GROUP INSURANCE AGENCY, INC.) COMPUTATION OF NET CAPITAL PURSUANT TO SEC RULE 15c3-1 As of December 31, 2025 | Net Capital
Total stockholder's equity qualified for net capital
Deductions and/or charges:
Non-allowable assets:
Deferred tax asset
Commissions Receivable - 12b-1 fees
Other commissions receivable over 30 days
Prepaid expenses and other assets | ക | 8,131,785
(84,219)
(1,791)
(109,732)
(314,664) | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------------------------------------------------------| | Assets limited as to use | | (38,770) | | Net capital | ಲ್ಲಿ | 7,582,609 | | Aggregate Indebtedness
Items included in the statement of financial condition:
Accrued expenses
Due to affiliates
Other liabilities
Accrued postretirement benefit | ಕ್ಕಿ | 212,580
2,645,386
38,770
11,538 | | Total aggregate indebtedness | ક્તિ | 2,908,274 | | Computation of Basic Net Capital Requirement
Aggregate Indebtedness multiplied by 6 2/3% (A)
Minimum net capital requirement (B)
Net capital requirement (greater of A or B) | ಕಿ
ಕ್ಕಾ | 193,885
25,000
193,885 | | Excess net capital over net capital requirement | સ્ત્ર | 7,388,724 | | Net capital less greater of 10% of aggregate indebtedness or
120% of minimum net capital requirement | ત્ત્વ | 7,291,781 | Note: There were no material differences between the Corporation of net capital as filed in Part II A, Quarterly 17a-5(a) revised FOCUS report filed on January 27, 2026, and the above schedule as of December 31, 2025. {18}------------------------------------------------ # OTHER REPORTS {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Healthcare Community Securities Corporation We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) Healthcare Community Securities Corporation (the Company) did not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to (a) mutual fund retailer (wire order); and (b) broker seller variable life insurance or annuities. In addition, the Company did not directly or indirectly receive, hold, or otherwise or securities for or to customers; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Healthcare Community Securities Corporation's management is responsible for compliance with the exemptions provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Healthcare Community Securities Corporation's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Albany, New York February 27, 2026 {20}------------------------------------------------ # Healthcare Community Securities Corporation Exemption Report Healthcare Community Securities Corporation (the "Corporation") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Corporation states the following: The Corporation does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and The Corporation is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Corporation limits its business activities exclusively to: (1) mutual fund retailer (wire order); (2) broker selling variable life insurance or annuities, and the Corporation (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year 2025 from January 1, 2025 to December 31, 2025 without exception. Healthcare Community Securities Corporation | By: | | By: | | |--------|-------------------|--------|-------------------| | Title: | CFO and COO | Title: | President | | Date: | February 27, 2026 | Date: | February 27, 2026 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.