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B - INVESTMENT IN AFFILIATES | 12 Months Ended
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Dec. 31, 2013
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] |
B - INVESTMENT IN AFFILIATES | Investment in and advances to, equity in income of, and distributions received from, affiliates consist of the following:
December 31, 2013 |  |  | SBS |  | SBSFPC |  | TOTAL |
Investment and advances |  | $ | 7,832,000 |  | $ | 190,000 |  | $ | 8,022,000 |
Income (loss) from equity investees |  | $ | 94,000 |  | $ | (159,000 | ) | $ | (65,000 | )
Distributions |  | $ | 1,212,000 |  | $ | 6,000 |  | $ | 1,218,000 |
December 31, 2012 |  |  | SBS |  | SBSFPC |  | TOTAL |
Investment and advances |  | $ | 8,950,000 |  | $ | 354,000 |  | $ | 9,304,000 |
Income from equity investees |  | $ | 774,000 |  | $ | 32,000 |  | $ | 806,000 |
Distributions |  | $ | 95,000 |  | $ | 2,000 |  | $ | 97,000 |
December 31, 2011 |  |  | SBS |  | SBSFPC |  | TOTAL |
Income (loss) from equity investees |  | $ | 8,000 |  | $ | 21,000 |  | $ | 29,000 |
Distributions |  | $ | 1,185,000 |  | $ | — |  | $ | 1,185,000 |
Siebert and two individuals (the “Principals”) formed SBS to undertake the the tax-exempt underwriting business. The agreements with the Principals provide that profits will be shared 51% to the Principals and 49% to Siebert. Pursuant to the terms of the Operating Agreement, Financial and each of the Principals own a 33.33% interest in SBSFPC which engages in derivatives transactions related to the municipal underwriting business. The Operating Agreement provides that income/(loss) be shared 66.66% by the Principals and 33.33% by Financial. Summarized financial data of SBS is as follows:
|  | 2013 |  | 2012 |  | 2011 |
Total assets, including secured demand note of 1,200,000 in each year due from Siebert |  | $ | 22,999,000 |  | $ | 27,752,000 |  |  |  |
Total liabilities, including subordinated liabilities $1,200,000 in each year due to Siebert |  |  | 7,083,000 |  |  | 9,555,000 |  |  |  |
Total members’ capital |  |  | 15,916,000 |  |  | 18,197,000 |  |  |  |
Regulatory minimum net capital requirement |  |  | 250,000 |  |  | 250,000 |  |  |  |
Total revenue |  |  | 24,965,000 |  |  | 28,246,000 |  | $ | 26,441,000 |
Net income |  |  | 193,000 |  |  | 1,579,000 |  |  | 17,000 |
During 2013, 2012 and 2011 Siebert charged SBS $100,000, $75,000, and $75,000 respectively, for general and administrative services, which Siebert believes approximates the cost of furnishing such services. In addition, during each of the years 2013, 2012 and 2011, Siebert earned interest income of $48,000 from SBS in connection with subordinated loans available or made to SBS and Siebert paid SBS interest earned on restricted cash equivalents of $1,500, $2,900 and $2,500 in 2013, 2012 and 2011, respectively. Siebert’s share of undistributed earnings from SBS amounted to $7,407,000 and $8,524,000 at December 31, 2013 and 2012, respectively. Such amounts may not be immediately available for distribution to Siebert for various reasons including the amount of SBS’s available cash, the provisions of the agreement between Siebert and the Principals and SBS’s continued compliance with its regulatory net capital requirements. Summarized financial data of SBSFPC is as follows:
|  | 2013 |  | 2012 |  | 2011 |
Total assets |  | $ | 584,000 |  | $ | 167,841,000 |  |  |  |
Total liabilities |  |  | 15,000 |  |  | 166,775,000 |  |  |  |
Total members’ capital |  |  | 569,000 |  |  | 1,066,000 |  |  |  |
Total revenue |  |  | (222,000 | )* |  | 293,000 |  | $ | 610,000 |
Net (loss) income |  |  | (478,000 | ) |  | 98,000 |  |  | 61,000 |
*Negative balance was attributable to loss in derivative contracts. During the quarter ended March 31, 2013 SBSFPC incurred a loss of $241,000 on the write down in value of the derivative contracts with the City of Detroit to adjust their carrying value to the carrying value of the derivative contracts with the financial institution. In July 2013, as a result of the filing of a bankruptcy petition by the City of Detroit, SBSFPC unwound certain derivative contracts with a financial institution pursuant to the terms of the contracts. The contracts were recorded as liabilities with a carrying value of $123,063,000. In connection therewith, SBSFP assigned certain derivative contracts with the City of Detroit to the financial institution, which were recorded as assets with a carrying value of $123,063,000. No gain or loss was recognized by SBSFPC as a result of the unwinding and assignment of these derivative contracts and SBSFPC has no continuing obligations or rights with respect to the derivative contracts. At December 31, 2013 and 2012 SBSFPC had cumulative distributions in excess of cumulative earnings in the amount of $631,000 and $135,000, respectively, of which the Company’s share was $211,000 and $45,000, respectively. The Company received distributions from SBSFPC of $6,000 during 2013 which is shown on the statement of cash flows as an investing activity as it represents a return of capital. Effective September 16, 2013, one of the Principals having 25.5% ownership in SBS and 33.3% interest in SBSFPC became the Company’s Chief Executive Officer.

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- Definition Tabular disclosure of investments in and advances to affiliates. Does not include the tabular disclosure of the disaggregation of investments in and advances to affiliates across legal entities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14) -URI http://asc.fasb.org/extlink&oid=6955306&loc=d3e611322-123010 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 14 -Article 12 + Details
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