INVESTMENT IN FORMER AFFILIATES

12 Months Ended

Dec. 31, 2016

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

INVESTMENT IN FORMER AFFILIATES

Investment in and advances to, equity in income / (loss) of, and distributions received from, affiliates consist of the following:

December 31, 2015	SBSF		SBSFPC			TOTAL
Income from equity investee	$	671,000		—			671,000
Distributions	$	98,000		—			98,000
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

The Company 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 provided 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 2015 and 2014 follows: 

	2015			2014
Total assets, including secured demand note of $1,200,000 in 2014 due from Siebert	$	30,903,000		$	28,518,000
Total liabilities, including obligations to Siebert of $6,051,000 in 2015 and $3,057,000 in 2014		23,254,000			12,458,000
Total members’ capital		7,649,000			16,060,000
Regulatory minimum net capital requirement		250,000			250,000
Total revenue		27,774,000			24,806,000
Net income		1,369,000	(a)		171,000
(a)  Includes interest expense on purchase obligation payable to Siebert of $195,000.

Balance sheet data for 2015 is as of November 9 subsequent to the redemption of the Company’s interest, Revenue and net income for 2015 is for the period from January 1 through November 9.

During 2016, 2015 and 2014 Siebert charged SBS $23,100, $100,000 and $100,000, respectively, for each year, respectively, for general and administrative services, which Siebert believes approximates the cost of furnishing such services.

In 2016, 2015 and 2014 Siebert earned interest income of $0, $32,000 and $48,000, respectively, from SBS in connection with subordinated loans available or made to SBS and Siebert paid SBS interest earned on restricted cash equivalents of $0, $1,000 and $1,028 in 2016, 2015 and 2014, respectively. In addition, in 2016 and 2015, Siebert earned interest income of $207,000 and $265,000, respectively from SBSF on the purchase obligation in connection with the sale of the capital markets business (see Note B) and in 2016, Siebert earned interest income of $322,000 from SBSF on the receivable arising from the redemption of its ownership interest (see Note D).

Summarized financial data of SBSFPC is as follows: 

	2014
Total Assets	$	26,000
Total liabilities		26,000
Total members’ capital		—
Total revenue		—
Net loss		(51,000	)

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.