B - INVESTMENT IN AFFILIATES

12 Months Ended

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.