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D - INVESTMENT IN AFFILIATES | 12 Months Ended
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Dec. 31, 2014
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] |
D - INVESTMENT IN AFFILIATES | Investment in and advances to, equity in income / (loss) of, and distributions received from, affiliates consist of the following:
December 31, 2014 |  |  | SBSF |  | SBSFPC |  | TOTAL |
Investment and advances |  | $ | 7,979,000 |  |  | — |  |  | 7,979,000 |
Income (loss) from equity investees |  | $ | 84,000 |  |  | (17,000 | ) |  | 67,000 |
Distributions |  | $ | 13,000 |  |  | 173,000 |  |  | 186,000 |
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 |
Income from equity investees |  | $ | 774,000 |  | $ | 32,000 |  | $ | 806,000 |
Distributions |  | $ | 95,000 |  | $ | 2,000 |  | $ | 97,000 |
Siebert and two individuals (the “Principals”) formed SBS to succeed to the tax-exempt underwriting business of the Siebert Brandford Shank division of Siebert. 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 owned a 33.33% interest in SBSFPC which engaged 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. SBSFPC ceased operations in December 2014. Summarized consolidated financial data of SBSF and SBS in 2014 and financial data for SBS in 2013 and 2012 is as follows:
|  | 2014 |  | 2013 |  | 2012 |
Total assets, including secured demand note of $1,200,000 in each year due from Siebert |  | $ | 28,518,000 |  | $ | 22,999,000 |  |  |  |
Total liabilities, including subordinated liabilities $1,200,000 in each year and a purchase obligation of $1,857,000 in 2014 due to Siebert |  |  | 12,458,000 |  |  | 7,083,000 |  |  |  |
Total members’ capital |  |  | 16,060,000 |  |  | 15,916,000 |  |  |  |
Regulatory minimum net capital requirement |  |  | 250,000 |  |  | 250,000 |  |  |  |
Total revenue |  |  | 24,806,000 |  |  | 24,965,000 |  | $ | 28,246,000 |
Net income |  |  | 171,000 |  |  | 193,000 |  |  | 1,579,000 |
During 2014, 2013 and 2012 Siebert charged SBSF $100,000, $100,000, and $75,000 for each year, respectively, for general and administrative services, which Siebert believes approximates the cost of furnishing such services. In addition, during each of the years 2014, 2013 and 2012, 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 $1,028, $1,500 and $2,900 in 2014, 2013 and 2012, respectively. In addition, in 2014, Siebert earned interest income of $36,641 from SBSF on the purchase obligation in connection with the sale of the capital markets business (see Note B). Siebert’s share of undistributed earnings from SBSF at December 31, 2014 amounted to $7,477,000 and from SBS at December 31, 2013 amounted to $7,407,000. Undistributed earnings may not be immediately available for distribution to Siebert for various reasons including the amount of SBSF’s available cash, the provisions of the agreement between Siebert and the Principals and SBSF’s continued compliance with its regulatory net capital requirements. Summarized financial data of SBSFPC is as follows:
|  | 2014 |  | 2013 |  | 2012 |
Total assets |  | $ | 26,000 |  | $ | 584,000 |  |  |  |
Total liabilities |  |  | 26,000 |  |  | 15,000 |  |  |  |
Total members’ capital |  |  | 0 |  |  | 569,000 |  |  |  |
Total revenue |  |  | 0 |  |  | (222,000 | )* | $ | 293,000 |
Net income (loss) |  |  | (51,000 | ) |  | (478,000 | ) |  | 98,000 |
*Negative balance was attributable to loss in derivative contracts 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, SBSFPC 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. 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. The Company received distributions from SBSFP of $173,000 during 2014 and $6,000 during 2013 which is shown on the statement of cash flows as an investing activity as they represent a return of capital. Effective September 16, 2013, Suzanne Shank, one of the Principals having 25.5% ownership in SBS and 33.3% interest in SBSFP became the Company’s chief executive officer. On March 3, 2015 Ms. Shank completed her role as acting chief executive officer of the Company to devote full time to her continuing position as chief executive officer of SBSF.

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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=34726532&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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