EXHIBIT 99.C2
PRESENTATION TO THE SPECIAL COMMITTEE OF THE BOARD OF DIRECTORS OF:
[FIRSTCITY LOGO]
MARCH 20, 2002
JOSEPH J. SPALLUTO, MANAGING DIRECTOR
KEVIN D. SPINNER, MANAGING DIRECTOR
NEW YORK SAN FRANCISCO CHICAGO BOSTON HARTFORD RICHMOND COLUMBUS
www.kbw.com
[KBW LOGO]
TABLE OF CONTENTS
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<Table>
<Caption>
TAB SUBJECT PAGE(S)
- --- ------- -------
1. INTRODUCTION .............................................................................. 3,4
2. THE RESTRUCTURING ......................................................................... 6-17
3. RESTRUCTURING IMPACT TO FIRSTCITY
Summary ................................................................................... 19
Pro Forma Balance Sheet ................................................................... 20,21
4. HISTORICAL TRADING VALUES OF PREFERRED & COMMON STOCKS .................................... 23,24
5. EXCHANGE OFFER VALUATION
Summary & Assumptions ..................................................................... 26
Valuation Table ........................................................................... 27
6. LIQUIDATION ANALYSIS
Summary ................................................................................... 29
Asset Sale Approach ....................................................................... 30-32
7. GOING PRIVATE TRANSACTIONS ................................................................ 34
8. CASE STUDY COMPARISON: DYNEX CAPITAL
Summary Description of Dynex Capital ...................................................... 36
Relative Stock Performance ................................................................ 37
Tender Offer Summary & Results ............................................................ 38,39
9. ALTERNATIVE COMPARISONS: AMRESCO & WILSHIRE FINANCIAL SERVICES GROUP
Summary Comparisons to FCFC ............................................................... 41
AMRESCO ................................................................................... 42,43
Wilshire .................................................................................. 44,45
10. CONCLUSION ................................................................................ 47
</Table>
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FIRSTCITY FINANCIAL CORPORATION 1 KEEFE, BRUYETTE & WOODS, INC.
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INTRODUCTION
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FIRSTCITY FINANCIAL CORPORATION 2 KEEFE, BRUYETTE & WOODS, INC.
FIRSTCITY RESTRUCTURING TRANSACATION SUMMARY
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o FIRSTCITY ("FCFC") IS CONTEMPLATING ENTERING INTO A NUMBER OF TRANSACTIONS,
WHICH ARE DESIGNED TO RESTRUCTURE AND RECAPITALIZE THE COMPANY. THESE
TRANSACTIONS INCLUDE:
o The sale of 64.51% of FCFC's interest in Drive Financial Services
("Drive") to Bank of Scotland ("BOS") for $16.0 million.
o The offer to exchange (the "Exchange Offer") 1,222,901 shares of
FCFC's preferred stock (the "Preferred") for either:
o $10.00 cash and two FCFC common shares for each
Preferred share or
o $8.00 cash and three FCFC common shares for each
Preferred share
o Residual cash from the sale of Drive and the Exchange Offer will
be applied to debt reduction.
o BOS will refinance the remainder of FCFC existing facilities with
a $45 million commitment.
o FCFC will purchase the 20% interest held by management in FCFC's
indirect subsidiary, FirstCity Holdings ("FCH") in exchange for
400,000 shares of FCFC common stock and up to $3.2 million in
earn-out payments.
o BOS will provide new financing to FCFC, with a total commitment
of $60 million.
o FCFC will be released from its guaranty of $4 million of Drive's
Term Loan.
o BOS will release its existing option to acquire 1,975,000 shares
of FCFC's common stock.
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FIRSTCITY FINANCIAL CORPORATION 3 KEEFE, BRUYETTE & WOODS, INC.
SCOPE OF KBW ENGAGEMENT
================================================================================
o KBW has been engaged by a Special Committee of the Board of Directors.
o THE SPECIAL COMMITTEE REQUESTED KBW'S OPINION AS TO THE FAIRNESS, FROM A
FINANCIAL POINT OF VIEW, TO THE HOLDERS OF FCFC'S PREFERRED STOCK, OF THE
CONSIDERATION OFFERED IN THE EXCHANGE OFFER.
o The consideration includes both cash and FCFC common stock.
o KBW has considered, among other things deemed to be relevant, the
following:
o The sale of a portion FCFC's interest in Drive to Bank
of Scotland
o Peer groups of, and merger and acquisition transactions
involving, automobile finance companies
o The consideration offered in the Exchange Offer and the
valuation of the consideration
o FCFC's purchase of a 20% interest in FCH
o FCFC's debt refinancing, and restructuring
o The past, current, and pro forma financial condition of
FCFC
o Certain of FCFC's publicly available financial
information: 10-Qs, 10-Ks, and other filings
o A draft of the S-4 to be filed related to the
Restructuring
o Liquidation analysis
o Historical trading values of FCFC's common and
preferred stocks
o Premiums paid in other transactions filed with the SEC
as going private transactions
o Certain estimated investor recovery results from
transactions involving comparable companies
o Previous and prevailing economic conditions
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FIRSTCITY FINANCIAL CORPORATION 4 KEEFE, BRUYETTE & WOODS, INC.
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THE RESTRUCTURING:
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
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FIRSTCITY FINANCIAL CORPORATION 5 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
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Summary
o Prior to the Restructuring FCFC owns a 31% interest in Drive.
o FCFC will sell 64.5% of its interest (or a 20% interest) in Drive to
BOS for $16.0 million.
o FCFC maintained a carrying value of this interest of $6.5 million at
December 31, 2001 (before minority interest).
o $16.0 million for 20% values Drive at $80 million (excluding debt).
o $80 million represents 308% of book value on December 31, 2001, and
7.4 times Drive's comprehensive net income (pro forma for a full 40%
tax rate) for the twelve months ended December 31, 2001.
o During the twelve months ended December 31, 2001, "gain-on-sale"
revenue, derived from securitization transactions represented 55% of
Drive's revenue. Also, at December 31, 2001, residual interests in
securitization transactions represented 298% of its common equity.
o The sale of the partial interest in Drive is conditioned up achieving
at least 80% participation in the Exchange Offer.
o BOS will release FCFC from a $4 million guaranty related to Drive's
debt.
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FIRSTCITY FINANCIAL CORPORATION 6 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
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Summary Balance Sheet & Income Statement
<Table>
<Caption>
AT OR FOR THE YEAR ENDED
DECEMBER 31, 2001
------------------------
ASSETS
Cash 7,395
Contracts held for sale - net 70,447
Investment Securities 77,407
Interest Receivable 1,089
Furniture & Fixtures 6,201
Service Fees Receivable 1,212
Goodwill --
Other Assets 1,820
------------------------
TOTAL ASSETS 165,571
LIABILITIES
Term Loan 27,500
Notes Payable to Banks 67,165
Other Liabilities 12,910
------------------------
TOTAL LIABILITIES 107,575
Capital Note 32,000
TOTAL EQUITY 25,996
------------------------
TOTAL LIABILITIES & EQUITY 165,571
REVENUES:
Interest Income 33,335
Interest Expense (9,329)
------------------------
Net Interest Income 24,006
Other Income 439
Gain on Sale 39,033
Impairment of Residual Assets (3,897)
Servicing Fee Income 11,986
------------------------
Total Revenue 71,567
EXPENSES:
Operating Expenses 45,639
Provisions on Contracts held for sale 5,377
Accounting Policy Change 783
------------------------
Total Expenses 51,799
INCOME BEFORE PROVISION FOR TAXES 19,768
Other Comprehensive Income (1,800)
------------------------
COMBINED PRE-TAX INCOME 17,968
Pro Forma Provision for Income Taxes 7,187
------------------------
PRO FORMA NET INCOME 10,781
</Table>
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FIRSTCITY FINANCIAL CORPORATION 7 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
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Publicly-Traded Auto Finance Companies
<Table>
<Caption>
MARKET STATS. EPS MULTIPLE - I/B/E/S
---------------------- ------------------------------------------------
MARKET STOCK 2001 2002 CHANGE PRICE PRICE
CAPITALIZATION PRICE ACT. EPS EST. EPS 2001 / 2002 / 01E / 02E
STOCK -------------- ------ -------- -------- ----------- ----- -----
COMPANY NAME SYMBOL STATE ($ millions) ($) ($) ($) (%) (x) (x)
- ------------ ------ ----- -------------- ------ -------- -------- ----------- ----- -----
SMALL MARKET CAPITALIZATION
Union Acceptance Corporation(1) UACA IN 162 5.25 1.03 0.70 -32% 5.1 7.5
Consumer Portfolio Services CPSS CA 43 1.94 0.04 nm nm nm nm
Onyx Acceptance Corporation ONYX CA 21 4.06 0.97 1.00 3% 4.2 4.1
First Investors Financial, Inc.(2) FIFS TX 20 3.61 (0.01) 0.32 nm nm 11.3
------ ----- -------------- ------ -------- -------- ----------- ----- -----
MEDIAN -14% 4.6 7.5
LARGE MARKET CAPITALIZATION
AmeriCredit Corp.(3) ACF TX 3,126 37.07 3.17 4.18 32% 11.7 8.9
WFS Financial, Inc WFSI CA 487 24.35 1.92 2.33 22% 12.7 10.4
Credit Acceptance Corp. CACC MI 457 10.87 0.68 0.76 12% 16.0 14.3
------ ----- -------------- ------ -------- -------- ----------- ----- -----
MEDIAN 22% 12.7 10.4
DRIVE FINANCIAL SERVICES(4) 80 NA 10.8 NA NM 7.4 NM
</Table>
<Table>
<Caption>
OTHER
------------------------------------
GAIN ON
SALE / RESIDUALS /
REVENUE EQUITY PRICE / BOOK
------- ----------- ------------
COMPANY NAME (%) (%) (%)
- ------------ ------- ----------- ------------
SMALL MARKET CAPITALIZATION
Union Acceptance Corporation(1) 27% 115% 93%
Consumer Portfolio Services 70% 174% 61%
Onyx Acceptance Corporation 35% 293% 33%
First Investors Financial, Inc.(2) 0% 0% 69%
------- ----------- ------------
MEDIAN 31% 144% 65%
LARGE MARKET CAPITALIZATION
AmeriCredit Corp.(3) 38% 110% 254%
WFS Financial, Inc 3% 58% 182%
Credit Acceptance Corp. 2% 0% 159%
------- ----------- ------------
MEDIAN 3% 58% 182%
DRIVE FINANCIAL SERVICES(4) 55% 298% 308%
</Table>
(1) June Fiscal Year, Estimate adjusted to calendar year, 2001 excludes
residual valuation charge.
(2) April Fiscal Year, adjusted to calendar year
(3) June Fiscal Year, adjusted to calendar year
(4) At or For the Year Ended December 31, 2001. Valuation implied by BOS
purchase of 20% for $16 million
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FIRSTCITY FINANCIAL CORPORATION 8 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
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Mergers and Acquisitions Involving Auto Finance Companies
<Table>
<Caption>
SELLER'S ANNUAL SELLER'S MGD. SELLER'S PURCHASE
ORIGINATIONS RECEIVABLES TRAILING PRICE /
ANN. PURCHASE IN YEAR OF SALE PORTFOLIO EARNINGS(a) ANNUAL
DATE BUYER SELLER PRICE $ MILLIONS $ MILLIONS $ MILLIONS ORIGINATIONS
- ---- ----- ------ ----- --------------- ------------- ----------- ------------
11/19/2001 CONSUMER PORTFOLIO MFN FINANCIAL $104 MILLION 279 424 $ 5.1 37%
SERVICES CORPORATION
11/18/1999 SUSQUEHANNA BANCSHARES HANN FINANCIAL CORP. $35 MILLION NA 800 $ 3.4(b) NA
11/16/1999 ASSOCIATES FIRST ARCADIA FINANCIAL, $193 MILLION 2,400 5,300 $(6.8) 8%
CAPITAL CORP. LTD.
06/14/1999 FAIRLANE CREDIT, LLC TRIAD FINANCIAL CORP. $105 MILLION(c) 425 511 $12.4 25%
07/16/1998 CAPITAL ONE FINANCIAL SUMMIT ACCEPTANCE $55 MILLION NA 260 NA NA
CORP.
06/23/1997 NORWEST CORP. FIDELITY ACCEPTANCE $344 MILLION 1,000 1,120 $24.7 20%
06/01/1997 HOUSEHOLD ACC CONSUMER FINANCE $200 MILLION 484 396 $11.0 41%
INTERNATIONAL
03/29/1996 SOUTHERN NATIONAL REGIONAL ACCEPTANCE $167 MILLION NA 136 $ 8.8 134%
CORP.
02/05/1996 BAYVIEW CAPITAL CORP. CTL CREDIT, INC. $65 MILLION 133 466 $ 5.2 151%
</Table>
<Table>
<Caption>
PURCHASE PURCHASE PURCHASE PURCHASE
PRICE / PREMIUM / PRICE / PRICE/
ANN. PURCHASE MANAGED MARKET BOOK TRAILING
DATE BUYER SELLER PRICE RECEIVABLES PRICE VALUE EARNINGS
- ---- ----- ------ ----- ----------- --------- -------- --------
11/19/2001 CONSUMER PORTFOLIO MFN FINANCIAL $104 MILLION 25% 89% 75% 20.4X
SERVICES CORPORATION
11/18/1999 SUSQUEHANNA BANCSHARES HANN FINANCIAL CORP. $35 MILLION 4% NA NA 10.3X
11/16/1999 ASSOCIATES FIRST ARCADIA FINANCIAL, $193 MILLION 4% 31% 112% NM
CAPITAL CORP. LTD.
06/14/1999 FAIRLANE CREDIT, LLC TRIAD FINANCIAL CORP. $105 MILLION(c) 21% NA 144% 8.5X
07/16/1998 CAPITAL ONE FINANCIAL SUMMIT ACCEPTANCE $55 MILLION 21% NA NA NA
CORP.
06/23/1997 NORWEST CORP. FIDELITY ACCEPTANCE $344 MILLION 31% NA NA 13.9X
06/01/1997 HOUSEHOLD ACC CONSUMER FINANCE $200 MILLION 51% 100% 655% 18.2X
INTERNATIONAL
03/29/1996 SOUTHERN NATIONAL REGIONAL ACCEPTANCE $167 MILLION 123% 13% 423% 19.1X
CORP.
02/05/1996 BAYVIEW CAPITAL CORP. CTL CREDIT, INC. $65 MILLION 14% 30% 132% 12.6X
</Table>
NOTES:
(a) trailing "core" earnings at announcement, excludes amortization and
non-recurring items, fully-taxed
(b) estimate based on Susquehanna's claim that the transaction would be
accretive to EPS in 2000.
(c) includes assumption and repayment of $60 million of unsecured debt due to
ContiFinancial
(d) valuation as if BOS were acquiring Drive (this transaction does give BOS
control)
<Table>
<Caption>
PURCHASE PURCHASE PURCHASE PURCHASE PURCHASE
PRICE / PRICE / PREMIUM / PRICE / PRICE/
ANNUAL MANAGED MARKET BOOK TRAILING
ORIGINATIONS RECEIVABLES PRICE VALUE EARNINGS
------------ ----------- --------- -------- --------
MEDIAN '99-'01 DEALS 25% 12% 60% 112% 10.3X
MEDIAN '97 & '98 DEALS 31% 31% 100% 655% 16.0X
MEDIAN '96 DEALS 142% 69% 21% 277% 15.8X
ALL MEDIAN 37% 21% 31% 138% 13.9X
ALL AVERAGE 63% 34% 43% 293% 13.8X
</Table>
<Table>
<Caption>
SELLER'S ANNUAL SELLER'S MGD. SELLER'S PURCHASE
ORIGINATIONS RECEIVABLES TRAILING PRICE /
ANN. PURCHASE IN YEAR OF SALE PORTFOLIO EARNINGS(a) ANNUAL
DATE BUYER SELLER PRICE $ MILLIONS $ MILLIONS $ MILLIONS ORIGINATIONS
- ---- ----- ------ ----- --------------- ------------- ----------- ------------
TBD(d) BANK OF SCOTLAND DRIVE FINANCIAL $80 MILLION 400 555 $10.8 20%
SERVICES
</Table>
<Table>
<Caption>
PURCHASE PURCHASE PURCHASE PURCHASE
PRICE / PREMIUM / PRICE / PRICE/
ANN. PURCHASE MANAGED MARKET BOOK TRAILING
DATE BUYER SELLER PRICE RECEIVABLES PRICE VALUE EARNINGS
- ---- ----- ------ ----- ----------- --------- -------- --------
TBD(d) BANK OF SCOTLAND DRIVE FINANCIAL $80 MILLION 14% NA 308% 7.4X
SERVICES
</Table>
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FIRSTCITY FINANCIAL CORPORATION 9 KEEFE, BRUYETTE & WOODS, INC.
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THE RESTRUCTURING:
THE EXCHANGE OFFER
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FIRSTCITY FINANCIAL CORPORATION 10 KEEFE, BRUYETTE & WOODS, INC.
THE EXCHANGE OFFER
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Summary
o FCFC IS CONTEMPLATING MAKING AND EXCHANGE OFFER IN WHICH HOLDERS OF
FCFC'S PREFERRED STOCK WOULD HAVE THE OPPORTUNITY TO EXCHANGE ONE
SHARE OF PREFERRED FOR EITHER:
o $10.00 per share in cash and two shares of FCFC common stock
("Exchange Offer Choice A"), or
o $8.00 per share in cash and three shares of FCFC common
stock ("Exchange Offer Choice B")
The current Preferred has characteristics as follows:
o Legal claim of $32.1 million as of December 31, 2001 ($26.25 per share)
o Par value of $21.00 per share, $5.25 per share of accrued and unpaid
dividends
o Dividend (currently suspended) of $2.10 per share per year
o Scheduled Redemption of September 2005
o Right to elect two Board members if dividends not paid for six or more
consecutive quarters, with those elected Board members serving until
dividends in arrears are paid (currently could elect two Board members at
annual meeting in 2002).
o PREFERRED HOLDERS, POST-EXCHANGE OFFER (ASSUMING 80% PARTICIPATION AND
50-50 SPLIT ON EXCHANGE OFFER CHOICE A OR EXCHANGE OFFER CHOICE B) WILL OWN
21.8% OF FCFC.
o COMPLETION OF THE EXCHANGE OFFER IS CONDITIONED UPON ACHIEVING 80%
PARTICIPATION.
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FIRSTCITY FINANCIAL CORPORATION 11 KEEFE, BRUYETTE & WOODS, INC.
================================================================================
THE RESTRUCTURING:
PURCHASE OF 20% INTEREST IN FIRSTCITY HOLDINGS
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FIRSTCITY FINANCIAL CORPORATION 12 KEEFE, BRUYETTE & WOODS, INC.
PURCHASE OF 20% INTEREST IN FIRSTCITY HOLDINGS
================================================================================
Summary
o Prior to the Restructuring, management of FCH own a 20% interest in
FCH, FCFC owns the other 80%.
o FCFC is contemplating acquiring this interest through the issuance of
400,000 shares of FCFC common stock, and through up to $3.20 million
in "earn-out" payments based on the performance of certain Mexican
asset pools.
o The total value of the purchase is up to $3.65 million ($0.45 million
in common stock, and up to $3.20 million in earn-out).
o The value of 20% of FCH at $3.65 million values FCH at $18.25 million.
$18.25 million represents 454% of book value, and 4.2 times FCH's
trailing pre-tax income.
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FIRSTCITY FINANCIAL CORPORATION 13 KEEFE, BRUYETTE & WOODS, INC.
PURCHASE OF 20% INTEREST IN FIRSTCITY HOLDINGS
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Summary Income Statement & Balance Sheet of FCH
<Table>
<Caption>
AT OR FOR THE YEAR ENDED
DECEMBER 31, 2001
------------------------
ASSETS
Cash 3,059
Inventory 5,822
Note Receivable 19,765
Investment in Unconsol. Subs 26,379
Furniture & Fixtures 1,161
Accounts Receivable 394
Prepaid Expenses 283
Goodwill 74
Other Assets 360
------
TOTAL ASSETS 57,297
LIABILITIES
Note Payable - FirstCity 17,669
Notes Payable to Banks 31,399
Other Liabilities 1,868
------
TOTAL LIABILITIES 50,936
Minority Interest 2,337
TOTAL EQUITY 4,024
------
TOTAL LIABILITIES & EQUITY 57,297
REVENUES:
Interest & Accretion on Perf. Loans 5,562
Earnings of Subs 6,323
Servicing Fees 10,393
Other 1,494
------
Total Revenue 23,772
EXPENSES:
Servicing Fees Expense 3,031
Compensation & Benefits 7,678
Occupancy 1,219
Other Non-Interest Expenses 2,765
Interest Expense 4,725
------
Total Expenses 19,419
Profit/(Loss) Before Tax 4,353
</Table>
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FIRSTCITY FINANCIAL CORPORATION 14 KEEFE, BRUYETTE & WOODS, INC.
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THE RESTRUCTURING:
DEBT RESTRUCTURING
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FIRSTCITY FINANCIAL CORPORATION 15 KEEFE, BRUYETTE & WOODS, INC.
DEBT RESTRUCTURING
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Summary
o Remaining cash from the $16.0 million sale of a partial interest in
Drive to BOS, after completing the Exchange Offer, will be applied to
existing FCFC debt held by BOS.
o FCFC remaining debt held by BOS, estimated at $45 million, will be
restructured as follows:
o $33 million - Senior Cash Flow Note
This note will have a 4 year maturity and provide for all cash flow
from existing investments to first pay all corporate overhead, and
then principal and interest on the Senior Cash Flow Note.
o $12 million - Subordinated Convertible Note
This note will have a 5 year maturity with interest only payments to
be provided from existing cash flows. BOS will have the right, but not
obligation, to convert this note into 2 million newly issued FCFC
common shares. In conjunction, BOS will release warrants for 1,975,000
FCFC shares with a strike price of $2.31.
o BOS will provide a $55 million New Acquisition Line of Credit.
o BOS will provide a $5 million New Working Capital Line of Credit.
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FIRSTCITY FINANCIAL CORPORATION 16 KEEFE, BRUYETTE & WOODS, INC.
DEBT RESTRUCTURING
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Summary Table
($ in millions)
<Table>
<Caption>
FUNDED AND UNFUNDED OUTSTANDING OUTSTANDING PRO
COMMITMENT AMOUNT AS BORROWINGS AS OF ADJUSTMENTS PER FORMA AS OF
OF NOVEMBER 14, 2001 DECEMBER 31, 2001 RESTRUCTURING DECEMBER 31, 2001
-------------------- ----------------- --------------- -----------------
FIRSTCITY
Company Senior Facility:
Revolving Line of Credit 10 6 (6) --
Term Loan A 31 31 (31) --
Term Loan B 12 12 (12) --
Term Loan C -- -- -- --
Term Credit Facility 4 4 (4) -- __$55 million in
| availability,
Cash Flow Note -- -- 33 33 | collateral
Subordinated Convertible Note -- -- 12 12 __ specific
Acquisition Line of Credit -- -- -- -- __
Working Capital Line of Credit -- -- -- -- |
|
COMMERCIAL CORP __$5 million in
availability
Acquisition Facility 4 4 -- 4
Term Facilities 7 7 -- 7
Equity investment facility 30 27 -- 27
----- ------ ------ ------
Total 98 91 (8) 83
</Table>
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FIRSTCITY FINANCIAL CORPORATION 17 KEEFE, BRUYETTE & WOODS, INC.
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RESTRUCTURING IMPACT TO FIRSTCITY
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FIRSTCITY FINANCIAL CORPORATION 18 KEEFE, BRUYETTE & WOODS, INC.
RESTRUCTURING IMPACT TO FIRSTCITY
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Summary & Major Assumptions Used
o SIGNIFICANTLY INCREASES FCFC COMMON EQUITY BY:
o Gain related to Drive Interest Sale ($14.8 million)
o Debt Forgiveness of, and Equity Issued to Preferred Stockholders
($16.4 million)
o SIMPLIFIES FCFC DEBT OBLIGATIONS & Provides New Financing
o Existing Facilities With BOS Paid Off, and Restructured into 2
Notes from Current 5
o $60 million in New Acquisition and Working Capital by BOS
o INCREASES COMMON EQUITY PER SHARE FROM $0.46 TO $3.16 (12/31/01 and
Pro Forma at 12/31/01, respectively)
o REDUCES POTENTIAL DILUTION FROM BOS WARRANTS (through release of
1,975,000 warrants at $2.31)
- --------------------------------------------------------------------------------
o RESTRUCTURING - MAJOR ASSUMPTIONS
o All transactions in restructuring are completed as currently
contemplated
o Exchange offer reaches required 80% exchange threshold
o 50% of exchange participation select Exchange Offer Choice A, and
50% select Exchange Offer Choice B
o FCFC current stock price is $1.12, as is price at point of
transaction closings
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FIRSTCITY FINANCIAL CORPORATION 19 KEEFE, BRUYETTE & WOODS, INC.
RESTRUCTURING IMPACT TO FIRSTCITY
================================================================================
Pro Forma Balance Sheet Impact of Restructuring
($ in `000s, except per share)
<Table>
<Caption>
DEBT
12/31/2001 DRIVE EXCHANGE 20% FCH RESTRUC. PRO FORMA
---------- -------- -------- -------- -------- ---------
Cash and Cash Equivalents 5,583 9,305 (9,305) -- -- 5,583
Portfolio Assets, net 14,218 -- -- -- -- 14,218
Loans Receivable, net 19,899 -- -- -- -- 19,899
Equity Investments 54,655 (6,497) -- -- -- 48,158
Deferred Tax Benefit, net 20,101 -- -- -- -- 20,101
Other Assets, net 7,780 -- -- 2,843 -- 10,623
Net Assets of discontinued operations 16,657 -- -- -- -- 16,657
------- ------- ------- ------ -------- --------
Total Assets 138,893 2,807 (9,305) 2,843 -- 135,239
Notes Payable 91,209 (6,695) -- 3,200 (45,000) 42,714
New Credit Facilities -- -- -- -- 45,000 45,000
Other Liabilities (1) 11,706 (5,298) -- (805) -- 5,603
------- ------- ------- ------ -------- --------
Total Liabilities 102,915 (11,993) -- 2,395 -- 93,317
Redeemable Preferred Stock 32,101 -- (25,681) -- -- 6,420
Common Equity 3,877 14,801 16,376 448 -- 35,502
------- ------- ------- ------ -------- --------
Liabilities and Equity 138,893 2,807 (9,305) 2,843 -- 135,239
Common Shares Outstanding 8,377 -- 2,446 400 -- 11,222
Book Value Per Share $ 0.46 $ 3.16
</Table>
- ----------
(1) Other liabilities includes minority interest
================================================================================
FIRSTCITY FINANCIAL CORPORATION 20 KEEFE, BRUYETTE & WOODS, INC.
RESTRUCTURING IMPACT TO FIRSTCITY
================================================================================
Footnotes to Pro Forma Balance Sheet
($ in `000s, except per share)
<Table>
SALE OF INTEREST IN DRIVE FINANCIAL
Cash and Cash Equivalents
Cash Proceeds from Drive Sale ................................... 16,000
Excess Cash From Exchange to Repay Debt ......................... (6,695)
----------
Net Change .................................................... 9,305
Equity Investments
Carrying Value of Drive Interest Sold ........................... (6,497)
Notes Payable
Excess Cash From Drive Sale & Exchange .......................... (6,695)
Other Liabilities
Drive Debt Guaranty Release ..................................... (4,000)
Minority Interest Elimination ................................... (1,298)
----------
Net Change .................................................... (5,298)
Common Equity
Cash Proceeds from Drive Sale ................................... 16,000
Carrying Value of Drive Interest ................................ (6,497)
Minority Interest Elimination ................................... 1,298
Release of Previously Accrued Guaranty .......................... 4,000
----------
Net Change .................................................... 14,801
EXCHANGE OFFER
Cash and Cash Equivalents
Cash Required for Choice A ...................................... (4,892)
Cash Required for Choice B ...................................... (3,913)
Associated Expenses ............................................. (500)
----------
Net Change .................................................... (9,305)
Redeemable Preferred Stock
Preferred Stock Exchanged ....................................... (25,681)
Exchange Participation Rate ..................................... 80%
Common Equity
Common stock issued to Preferred holders ........................ 2,739
Debt forgiveness by Preferred holders ........................... 14,137
Expenses ........................................................ (500)
----------
Net Change .................................................... 16,376
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 21 KEEFE, BRUYETTE & WOODS, INC.
================================================================================
HISTORICAL PREFERRED & COMMON STOCK PRICES
================================================================================
FIRSTCITY FINANCIAL CORPORATION 22 KEEFE, BRUYETTE & WOODS, INC.
PREFERRED STOCK PRICE PERFORMANCE: SINCE PREFERRED ISSUANCE
================================================================================
[GRAPH]
<Table>
<Caption>
FCFCO FCFCO FCFCO FCFCO FCFCO
Preferred Preferred Preferred Preferred Preferred
Date Stock Date Stock Date Stock Date Stock Date Stock
- ---- --------- ---- --------- ---- --------- ---- --------- ---- ---------
8/13/1997 22 6/29/1998 21.5 5/12/1999 16 3/23/2000 7 2/7/2001 10
8/14/1997 22 6/30/1998 21.5 5/13/1999 16.06 3/24/2000 7.56 2/8/2001 10
8/15/1997 22 7/1/1998 21.5 5/14/1999 16.06 3/27/2000 7.88 2/9/2001 10
8/18/1997 22 7/2/1998 21.5 5/17/1999 16.38 3/28/2000 7.88 2/12/2001 10
8/19/1997 22 7/6/1998 21.5 5/18/1999 16.06 3/29/2000 7.88 2/13/2001 10
8/20/1997 22 7/7/1998 21.5 5/19/1999 16.06 3/30/2000 7.88 2/14/2001 10
8/21/1997 22 7/8/1998 21.5 5/20/1999 16.06 3/31/2000 8 2/15/2001 10
8/22/1997 22 7/9/1998 21.5 5/21/1999 16.25 4/3/2000 8 2/16/2001 9.94
8/25/1997 22 7/10/1998 21.5 5/24/1999 16.25 4/4/2000 8 2/20/2001 9.94
8/26/1997 22 7/13/1998 21.5 5/25/1999 16.31 4/5/2000 8.13 2/21/2001 9.94
8/27/1997 22 7/14/1998 21.5 5/26/1999 16.31 4/6/2000 8.13 2/22/2001 9.94
8/28/1997 22 7/15/1998 20.75 5/27/1999 16.06 4/7/2000 7.5 2/23/2001 9.63
8/29/1997 22 7/16/1998 21 5/28/1999 16.13 4/10/2000 7.63 2/26/2001 9.63
9/2/1997 22 7/17/1998 21 6/1/1999 16.13 4/11/2000 7.63 2/27/2001 9.63
9/3/1997 22 7/20/1998 20.88 6/2/1999 15.69 4/12/2000 7.38 2/28/2001 9.63
9/4/1997 22 7/21/1998 21.75 6/3/1999 15.69 4/13/2000 7.38 3/1/2001 9.63
9/5/1997 23.25 7/22/1998 21 6/4/1999 15.69 4/14/2000 7.38 3/2/2001 9.63
9/8/1997 23.25 7/23/1998 21 6/7/1999 15.69 4/17/2000 7.52 3/5/2001 9.5
9/9/1997 23.25 7/24/1998 21.5 6/8/1999 15.88 4/18/2000 7.52 3/6/2001 9.5
9/10/1997 23.25 7/27/1998 22 6/9/1999 15.69 4/19/2000 8 3/7/2001 9.5
9/11/1997 23.25 7/28/1998 22.5 6/10/1999 15 4/20/2000 8 3/8/2001 9.5
9/12/1997 23.25 7/29/1998 22.5 6/11/1999 15.88 4/24/2000 8 3/9/2001 8.75
9/15/1997 23.25 7/30/1998 22.5 6/14/1999 15.38 4/25/2000 8 3/12/2001 7.06
9/16/1997 23.25 7/31/1998 21.75 6/15/1999 15.38 4/26/2000 8 3/13/2001 7.63
9/17/1997 23.25 8/3/1998 21.75 6/16/1999 15.38 4/27/2000 8 3/14/2001 8
9/18/1997 23.5 8/4/1998 21.75 6/17/1999 15.75 4/28/2000 9.25 3/15/2001 8
9/19/1997 23.5 8/5/1998 21.75 6/18/1999 15 5/1/2000 9.25 3/16/2001 8
9/22/1997 23.5 8/6/1998 21.75 6/21/1999 15.63 5/2/2000 7.03 3/19/2001 8
9/23/1997 23.5 8/7/1998 21.75 6/22/1999 15.5 5/3/2000 6.16 3/20/2001 8
9/24/1997 23.5 8/10/1998 21.75 6/23/1999 15.5 5/4/2000 6.97 3/21/2001 8
9/25/1997 23.5 8/11/1998 21.75 6/24/1999 15.63 5/5/2000 6.97 3/22/2001 8
9/26/1997 23.5 8/12/1998 22.25 6/25/1999 15.63 5/8/2000 6.13 3/23/2001 8
9/29/1997 22 8/13/1998 22.25 6/28/1999 15.69 5/9/2000 6.13 3/26/2001 8
9/30/1997 22 8/14/1998 21.5 6/29/1999 15.69 5/10/2000 6.13 3/27/2001 8
10/1/1997 22 8/17/1998 22.75 6/30/1999 15.75 5/11/2000 6.13 3/28/2001 8
10/2/1997 22 8/18/1998 22.75 7/1/1999 15.75 5/12/2000 6.13 3/29/2001 8
10/3/1997 21.75 8/19/1998 22.75 7/2/1999 15.75 5/15/2000 6.13 3/30/2001 8.06
10/6/1997 21.75 8/20/1998 21.75 7/6/1999 15.69 5/16/2000 5.25 4/2/2001 8.06
10/7/1997 21.75 8/21/1998 22 7/7/1999 15.69 5/17/2000 5.25 4/3/2001 7.5
10/8/1997 21.75 8/24/1998 21.38 7/8/1999 15.63 5/18/2000 5.25 4/4/2001 8
10/9/1997 21.75 8/25/1998 21.38 7/9/1999 15.25 5/19/2000 5.75 4/5/2001 7.88
10/10/1997 21.75 8/26/1998 21.38 7/12/1999 15.25 5/22/2000 5 4/9/2001 7.88
10/13/1997 21.75 8/27/1998 21.5 7/13/1999 15.38 5/23/2000 4.38 4/10/2001 7.88
10/14/1997 21.75 8/28/1998 21.5 7/14/1999 15.38 5/24/2000 4.38 4/11/2001 7.88
10/15/1997 21.75 8/31/1998 21.5 7/15/1999 15.38 5/25/2000 5.5 4/17/2001 8
10/16/1997 21.75 9/1/1998 20.5 7/16/1999 15.38 5/26/2000 5.75 4/18/2001 8
10/17/1997 21.75 9/2/1998 22 7/19/1999 15.19 5/30/2000 5.75 4/19/2001 8
10/20/1997 21.75 9/3/1998 22 7/20/1999 15.19 5/31/2000 5.75 4/20/2001 8
10/21/1997 21.75 9/4/1998 21.5 7/21/1999 15.06 6/1/2000 6.5 4/23/2001 8
10/22/1997 21.75 9/8/1998 21 7/22/1999 15.06 6/2/2000 7.75 4/24/2001 8
10/23/1997 21.75 9/9/1998 20.38 7/23/1999 15.06 6/5/2000 7.75 4/26/2001 8
10/24/1997 21.75 9/10/1998 18.25 7/26/1999 14.88 6/6/2000 7.44 4/27/2001 8.74
10/27/1997 21.75 9/11/1998 18.25 7/27/1999 14.88 6/7/2000 7.75 4/30/2001 8.74
10/28/1997 22 9/14/1998 19 7/28/1999 14.88 6/8/2000 7.75 5/1/2001 8.74
10/29/1997 22 9/15/1998 19 7/29/1999 14.88 6/9/2000 7.88 5/2/2001 7.85
10/30/1997 23 9/16/1998 19 7/30/1999 14.88 6/12/2000 8 5/3/2001 7.85
10/31/1997 21.75 9/17/1998 18.38 8/2/1999 15 6/13/2000 7.94 5/7/2001 7.85
11/3/1997 21.5 9/18/1998 18.5 8/3/1999 14.88 6/14/2000 7.94 5/8/2001 8
11/4/1997 21.5 9/21/1998 18.5 8/4/1999 14.81 6/15/2000 7.94 5/9/2001 8
11/5/1997 21.5 9/22/1998 18.5 8/5/1999 15 6/16/2000 8 5/10/2001 8
11/6/1997 21.63 9/23/1998 19 8/6/1999 15 6/19/2000 8 5/11/2001 8
11/7/1997 21.75 9/24/1998 19 8/9/1999 14.88 6/20/2000 8 5/14/2001 8.25
11/10/1997 21.75 9/25/1998 19 8/10/1999 14.88 6/21/2000 8 5/15/2001 8.12
11/11/1997 21.75 9/28/1998 19 8/11/1999 13.13 6/22/2000 8 5/16/2001 8.12
11/12/1997 21.75 9/29/1998 18.75 8/12/1999 11.38 6/23/2000 8 5/17/2001 8.12
11/13/1997 21.13 9/30/1998 18.75 8/13/1999 6 6/26/2000 8 5/18/2001 8.05
11/14/1997 21 10/1/1998 18.75 8/16/1999 7.19 6/27/2000 7 5/21/2001 8.11
11/17/1997 21.5 10/2/1998 18.75 8/17/1999 8.25 6/28/2000 7 5/22/2001 8.11
11/18/1997 21.5 10/5/1998 18.75 8/18/1999 8 6/29/2000 7 5/23/2001 8.11
11/19/1997 21.5 10/6/1998 18 8/19/1999 8 6/30/2000 8.75 5/24/2001 8.11
11/20/1997 22.5 10/7/1998 18 8/20/1999 8 7/3/2000 8.25 5/25/2001 8.25
11/21/1997 22 10/8/1998 14.69 8/23/1999 7.75 7/5/2000 9 5/29/2001 8.25
11/24/1997 22 10/9/1998 16 8/24/1999 7.13 7/6/2000 9 5/30/2001 8.25
11/25/1997 22 10/12/1998 15.25 8/25/1999 7 7/7/2000 8.5 5/31/2001 8.25
11/26/1997 21.5 10/13/1998 15.25 8/26/1999 5.5 7/10/2000 8.63 6/1/2001 8.25
11/28/1997 21.5 10/14/1998 15.25 8/27/1999 6.25 7/11/2000 8.63 6/4/2001 8.25
12/1/1997 21.13 10/15/1998 16.5 8/30/1999 5.25 7/12/2000 8.5 6/5/2001 8.25
12/2/1997 21.13 10/16/1998 17.13 8/31/1999 5.5 7/13/2000 8.5 6/6/2001 8.25
12/3/1997 21.13 10/19/1998 17.25 9/1/1999 5 7/14/2000 8.5 6/8/2001 8.38
12/4/1997 21.5 10/20/1998 17.25 9/2/1999 7 7/17/2000 8.5 6/11/2001 8.38
12/5/1997 21.5 10/21/1998 17.5 9/3/1999 7 7/18/2000 8.63 6/12/2001 8.38
12/8/1997 21.5 10/22/1998 17 9/7/1999 6.81 7/19/2000 8.63 6/13/2001 8.37
12/9/1997 21.5 10/23/1998 17 9/8/1999 6.75 7/20/2000 8.63 6/15/2001 8.37
12/10/1997 21.5 10/26/1998 17.75 9/9/1999 7.88 7/21/2000 9.13 6/19/2001 8.37
12/11/1997 21.5 10/27/1998 17.75 9/10/1999 7 7/24/2000 9 6/20/2001 8.38
12/12/1997 21.5 10/28/1998 15.5 9/13/1999 7 7/25/2000 9 6/21/2001 8.38
12/15/1997 21 10/29/1998 15 9/14/1999 6.88 7/26/2000 9 6/25/2001 8.5
12/16/1997 21.5 11/3/1998 16 9/15/1999 7.25 7/27/2000 8.88 6/26/2001 7.75
12/17/1997 21.5 11/2/1998 16 9/16/1999 5.75 7/28/2000 8.88 6/27/2001 8.45
12/18/1997 21.5 11/3/1998 16 9/17/1999 6 7/31/2000 8.88 6/28/2001 8.25
12/19/1997 21.63 11/4/1998 16 9/20/1999 6.13 8/1/2000 10.75 6/29/2001 8.25
12/22/1997 22 11/5/1998 16 9/21/1999 7.63 8/2/2000 8.5 7/2/2001 8.25
12/23/1997 22.5 11/6/1998 16 9/22/1999 7.19 8/3/2000 8.5 7/3/2001 8.25
12/24/1997 22.5 11/9/1998 16 9/23/1999 7.63 8/4/2000 9.75 7/6/2001 8.25
12/26/1997 21.25 11/10/1998 17 9/24/1999 5.5 8/7/2000 9.25 7/9/2001 8.25
12/29/1997 21.75 11/11/1998 16 9/27/1999 6 8/8/2000 9.25 7/10/2001 7.75
12/30/1997 21.75 11/12/1998 15.5 9/28/1999 5.88 8/9/2000 9.25 7/11/2001 7.5
12/31/1997 21.75 11/13/1998 15.5 9/29/1999 5.5 8/10/2000 9.25 7/12/2001 8
1/2/1998 21.75 11/16/1998 15.5 9/30/1999 5.5 8/11/2000 9 7/13/2001 8
1/5/1998 22 11/17/1998 15.5 10/1/1999 6.25 8/14/2000 10.25 7/16/2001 8.1
1/6/1998 22 11/18/1998 15.5 10/4/1999 6 8/15/2000 10.5 7/17/2001 8.1
1/7/1998 22 11/19/1998 15.75 10/5/1999 6 8/16/2000 9.5 7/18/2001 8.24
1/8/1998 22.19 11/20/1998 15.75 10/6/1999 6.25 8/17/2000 9 7/19/2001 8.24
1/9/1998 22.25 11/23/1998 15.06 10/7/1999 6.44 8/18/2000 9.25 7/20/2001 8.24
1/12/1998 22.31 11/24/1998 15.38 10/8/1999 6.44 8/21/2000 9.25 7/23/2001 8.24
1/13/1998 22.31 11/25/1998 15.5 10/11/1999 6.44 8/22/2000 9.25 7/25/2001 8.24
1/14/1998 23.25 11/27/1998 15.06 10/12/1999 6.38 8/23/2000 10 7/26/2001 7.5
1/15/1998 23.25 11/30/1998 15.5 10/13/1999 6.38 8/24/2000 10 7/27/2001 7.5
1/16/1998 23.25 12/1/1998 15 10/14/1999 6.38 8/25/2000 10 7/31/2001 7.5
1/20/1998 23.25 12/2/1998 15.5 10/15/1999 6.44 8/28/2000 9.94 8/1/2001 7.5
1/21/1998 23.25 12/3/1998 16 10/18/1999 7.44 8/29/2000 9.25 8/2/2001 7.5
1/22/1998 22.5 12/4/1998 17 10/19/1999 6.38 8/30/2000 9.25 8/3/2001 7.5
1/23/1998 21.75 12/7/1998 17.5 10/20/1999 6.38 8/31/2000 10.5 8/7/2001 7.5
1/27/1998 22 12/8/1998 17.25 10/21/1999 7.25 9/1/2000 10.5 8/8/2001 7.5
1/28/1998 22 12/9/1998 18 10/22/1999 7.44 9/5/2000 10.5 8/9/2001 8.5
1/29/1998 22 12/10/1998 18 10/25/1999 7.44 9/6/2000 10.25 8/10/2001 7.5
1/30/1998 22 12/11/1998 18 10/26/1999 7 9/7/2000 10 8/13/2001 8.25
2/2/1998 22 12/14/1998 18.75 10/27/1999 7.38 9/8/2000 11.75 8/14/2001 8.25
2/3/1998 22 12/15/1998 18.75 10/28/1999 7.13 9/11/2000 11.75 8/15/2001 8.25
2/4/1998 22 12/16/1998 17.5 10/29/1999 7.44 9/12/2000 11.88 8/16/2001 8.5
2/5/1998 22 12/17/1998 18.5 11/1/1999 7.44 9/13/2000 11.88 8/17/2001 8.5
2/6/1998 22 12/18/1998 18 11/2/1999 7.44 9/14/2000 11.88 8/20/2001 8.5
2/9/1998 22 12/21/1998 18 11/3/1999 7.38 9/15/2000 11.88 8/21/2001 8.5
2/10/1998 22 12/22/1998 18 11/4/1999 7.44 9/18/2000 10 8/22/2001 8.5
2/11/1998 21.75 12/23/1998 17.75 11/5/1999 7.44 9/19/2000 10 8/23/2001 8.5
2/12/1998 21.75 12/24/1998 19 11/8/1999 7.44 9/20/2000 10 8/24/2001 8.5
2/13/1998 22 12/28/1998 19 11/9/1999 7.44 9/21/2000 11 8/27/2001 8.5
2/17/1998 22 12/29/1998 19 11/10/1999 7.94 9/22/2000 11 8/28/2001 8.5
2/18/1998 22 12/30/1998 19 11/11/1999 7.94 9/25/2000 10.06 8/29/2001 8.5
2/19/1998 22.5 12/31/1998 18.13 11/12/1999 8.63 9/26/2000 10.06 8/30/2001 8.5
2/20/1998 22.5 1/4/1999 18.5 11/15/1999 8.25 9/27/2000 10.06 8/31/2001 7.72
2/23/1998 22.75 1/5/1999 18 11/16/1999 8.25 9/28/2000 10.06 9/4/2001 8
2/24/1998 22 1/6/1999 18 11/17/1999 8.38 9/29/2000 10.06 9/5/2001 7.72
2/25/1998 22 1/7/1999 18.75 11/18/1999 7.5 10/2/2000 10.06 9/6/2001 7.95
2/26/1998 22 1/8/1999 18.88 11/19/1999 7.5 10/3/2000 11 9/7/2001 8.12
2/27/1998 22.38 1/11/1999 19 11/22/1999 7.5 10/4/2000 10.06 9/10/2001 8.12
3/2/1998 22.38 1/12/1999 19 11/23/1999 9 10/5/2000 10.06 9/17/2001 8
3/3/1998 22.5 1/13/1999 18.88 11/24/1999 9 10/6/2000 10.06 9/18/2001 8
3/4/1998 22.5 1/14/1999 19 11/26/1999 9 10/9/2000 10.06 9/19/2001 7.65
3/5/1998 22.5 1/15/1999 19 11/29/1999 6.5 10/10/2000 10.75 9/20/2001 7.5
3/6/1998 22.5 1/19/1999 19.25 11/30/1999 7.13 10/11/2000 10.25 9/21/2001 6.5
3/9/1998 22.5 1/20/1999 19 12/1/1999 7.13 10/12/2000 10.06 9/24/2001 6.5
3/10/1998 22.19 1/21/1999 19 12/2/1999 7.5 10/13/2000 10.06 9/25/2001 6.5
3/11/1998 22.38 1/22/1999 18.5 12/3/1999 7.5 10/16/2000 11 9/26/2001 6.5
3/12/1998 22.38 1/25/1999 20 12/6/1999 7.63 10/17/2000 11 9/27/2001 6.5
3/13/1998 22.44 1/26/1999 18.44 12/7/1999 8.25 10/18/2000 10.06 9/28/2001 8
3/16/1998 22.13 1/27/1999 18.44 12/8/1999 7.5 10/19/2000 10.06 10/1/2001 8
3/17/1998 22.25 1/28/1999 18.44 12/9/1999 7.75 10/20/2000 10.06 10/2/2001 8
3/18/1998 22.13 1/29/1999 18.44 12/10/1999 7.5 10/23/2000 10.25 10/3/2001 8
3/19/1998 22.13 2/1/1999 18.44 12/13/1999 7.5 10/24/2000 10.25 10/4/2001 8
3/20/1998 22.13 2/2/1999 18.44 12/14/1999 7.5 10/25/2000 10.25 10/5/2001 8
3/23/1998 22.13 2/3/1999 18.75 12/15/1999 7.5 10/26/2000 10.25 10/8/2001 8
3/24/1998 22.13 2/4/1999 18.75 12/16/1999 7.5 10/27/2000 10.25 10/9/2001 8
3/25/1998 22.75 2/5/1999 18.75 12/17/1999 7.5 10/30/2000 10.5 10/10/2001 8.63
3/26/1998 22.5 2/8/1999 19.63 12/20/1999 6.75 10/31/2000 10.5 10/12/2001 8.45
3/27/1998 22.5 2/9/1999 19.5 12/21/1999 6.75 11/1/2000 10.5 10/15/2001 7.6
3/30/1998 22.75 2/10/1999 19.63 12/22/1999 9 11/2/2000 9.92 10/16/2001 8
3/31/1998 22.63 2/11/1999 19.63 12/23/1999 9 11/3/2000 9.63 10/17/2001 7.75
4/1/1998 22.25 2/12/1999 19.5 12/27/1999 7 11/6/2000 10 10/19/2001 7.75
4/2/1998 22.25 2/16/1999 19.5 12/28/1999 6.88 11/7/2000 9.94 10/22/2001 7.75
4/3/1998 22.25 2/17/1999 19.5 12/29/1999 8.5 11/8/2000 10 10/23/2001 7.75
4/6/1998 22.25 2/18/1999 19.5 12/30/1999 9 11/9/2000 10.2 10/25/2001 7.75
4/7/1998 22.13 2/19/1999 18.31 12/31/1999 9.63 11/10/2000 10.25 10/26/2001 8
4/8/1998 22.13 2/22/1999 18.31 1/3/2000 9.75 11/13/2000 10.06 10/29/2001 7.75
4/9/1998 23.88 2/23/1999 18 1/4/2000 9.75 11/14/2000 10.06 10/30/2001 7.75
4/13/1998 23.88 2/24/1999 17.69 1/5/2000 9.75 11/15/2000 10.06 10/31/2001 7.75
4/14/1998 21.88 2/25/1999 17.69 1/6/2000 9.75 11/16/2000 9.94 11/1/2001 7.75
4/15/1998 21.88 2/26/1999 19 1/7/2000 9.94 11/17/2000 9.94 11/2/2001 7.75
4/16/1998 23.75 3/1/1999 19 1/10/2000 9.94 11/20/2000 9.94 11/5/2001 7.75
4/17/1998 23.75 3/2/1999 19 1/11/2000 9.94 11/21/2000 10.14 11/6/2001 7.75
4/20/1998 23.75 3/3/1999 18.13 1/12/2000 9.94 11/22/2000 10.14 11/7/2001 7
4/21/1998 23.75 3/4/1999 18.13 1/13/2000 9.94 11/24/2000 10.14 11/8/2001 7.12
4/22/1998 23.75 3/5/1999 18.13 1/14/2000 11 11/27/2000 9.88 11/12/2001 7.11
4/23/1998 23.75 3/8/1999 18 1/18/2000 11 11/28/2000 10.14 11/13/2001 7.11
4/24/1998 22.25 3/9/1999 17.75 1/19/2000 11 11/29/2000 10.25 11/14/2001 7.1
4/27/1998 22.25 3/10/1999 17.38 1/20/2000 10.38 11/30/2000 10.25 11/15/2001 7.48
4/28/1998 22.25 3/11/1999 17.38 1/21/2000 9.25 12/1/2000 10.25 11/16/2001 7.17
4/29/1998 22.5 3/12/1999 17.38 1/24/2000 9.25 12/4/2000 10.25 11/20/2001 7.17
4/30/1998 22.5 3/15/1999 17.5 1/25/2000 9.25 12/5/2000 10.2 11/21/2001 7.4
5/1/1998 23.25 3/16/1999 20 1/26/2000 10.13 12/6/2000 10.2 11/26/2001 7.02
5/4/1998 23.5 3/17/1999 20.75 1/27/2000 10.13 12/7/2000 10.2 11/27/2001 7.12
5/5/1998 22.5 3/18/1999 20.75 1/28/2000 10.13 12/8/2000 10.25 11/28/2001 7.12
5/6/1998 22.5 3/19/1999 18.25 1/31/2000 9.75 12/11/2000 10.25 11/29/2001 7.12
5/7/1998 22.5 3/22/1999 18.13 2/1/2000 9.25 12/12/2000 10.25 12/3/2001 7.12
5/8/1998 23.75 3/23/1999 18.13 2/2/2000 9.25 12/13/2000 10.44 12/4/2001 7.12
5/11/1998 23.75 3/24/1999 19.75 2/3/2000 8 12/14/2000 10.25 12/5/2001 7.12
5/12/1998 22.5 3/25/1999 20 2/4/2000 10.13 12/15/2000 10.19 12/6/2001 7.12
5/13/1998 22.88 3/26/1999 20 2/7/2000 10.13 12/18/2000 10.5 12/7/2001 7.12
5/14/1998 22.88 3/29/1999 17.5 2/8/2000 10.38 12/19/2000 10.5 12/10/2001 7.42
5/15/1998 22.88 3/30/1999 18.06 2/9/2000 9.25 12/20/2000 10.25 12/11/2001 7.45
5/18/1998 22.88 3/31/1999 18.06 2/10/2000 9.5 12/21/2000 10.19 12/12/2001 7.45
5/19/1998 22.88 4/1/1999 18 2/11/2000 9.75 12/22/2000 10.19 12/13/2001 7.45
5/20/1998 22.88 4/5/1999 18 2/14/2000 9.5 12/26/2000 9.06 12/14/2001 7.45
5/21/1998 22.88 4/6/1999 18.25 2/15/2000 9.25 12/27/2000 9.06 12/17/2001 7.43
5/22/1998 22.88 4/7/1999 17.44 2/16/2000 9.75 12/28/2000 9.5 12/18/2001 7.43
5/26/1998 23.5 4/8/1999 17.38 2/17/2000 9.88 12/29/2000 9.5 12/19/2001 7.43
5/27/1998 22.5 4/9/1999 17.38 2/18/2000 9.5 1/2/2001 9.63 12/20/2001 7.51
5/28/1998 23 4/12/1999 17.38 2/22/2000 9.25 1/3/2001 9.63 12/21/2001 7.51
5/29/1998 22.75 4/13/1999 17.38 2/23/2000 9.25 1/4/2001 9.63 12/24/2001 7.51
6/1/1998 23 4/14/1999 17.38 2/24/2000 9.38 1/5/2001 10.13 12/26/2001 7.4
6/2/1998 22.75 4/15/1999 17.5 2/25/2000 9 1/8/2001 10.13 12/27/2001 7.25
6/3/1998 22.75 4/16/1999 18.13 2/28/2000 8.75 1/10/2001 9.75 12/28/2001 7.4
6/4/1998 22.63 4/19/1999 17.5 2/29/2000 9 1/11/2001 10 12/31/2001 7.4
6/5/1998 22.63 4/20/1999 17.75 3/1/2000 9.25 1/16/2001 10.19 1/2/2002 8
6/8/1998 22.63 4/21/1999 17.94 3/2/2000 9.38 1/17/2001 10.31 1/3/2002 8
6/9/1998 22.63 4/22/1999 17.56 3/3/2000 9.38 1/18/2001 10.31 1/4/2002 9.25
6/10/1998 22 4/23/1999 17.56 3/6/2000 9.38 1/19/2001 10.25 1/7/2002 8.7
6/11/1998 22 4/26/1999 16.88 3/7/2000 9.38 1/22/2001 10.25 1/8/2002 8.7
6/12/1998 22 4/27/1999 17.56 3/8/2000 9.56 1/23/2001 10 1/14/2002 8.61
6/15/1998 22 4/28/1999 17.56 3/9/2000 9.13 1/24/2001 10 1/15/2002 8.61
6/16/1998 23 4/29/1999 17.88 3/10/2000 9.13 1/25/2001 10 1/17/2002 8.61
6/17/1998 23 4/30/1999 17.88 3/13/2000 8.5 1/26/2001 10 1/18/2002 8.61
6/18/1998 23 5/3/1999 17.88 3/14/2000 8.5 1/29/2001 10 1/22/2002 8.61
6/19/1998 23 5/4/1999 17.06 3/15/2000 8.5 1/30/2001 10 1/23/2002 8.61
6/22/1998 23 5/5/1999 17 3/16/2000 8.25 1/31/2001 9.38 1/24/2002 7.75
6/23/1998 21.88 5/6/1999 17 3/17/2000 8.38 2/1/2001 10 1/25/2002 7.6
6/24/1998 22 5/7/1999 17 3/20/2000 8.25 2/2/2001 10
6/25/1998 21.88 5/10/1999 17 3/21/2000 8 2/5/2001 10
6/26/1998 21.5 5/11/1999 16.25 3/22/2000 8 2/6/2001 10
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 24 KEEFE, BRUYETTE & WOODS, INC.
COMMON STOCK PRICE PERFORMANCE: SINCE PREFERRED ISSUANCE
================================================================================
[GRAPH]
<Table>
<Caption>
FCFC FCFC FCFC FCFC FCFC
Common Common Common Common Common
Date Stock Date Stock Date Stock Date Stock Date Stock
- ---- ------ ---- ------ ---- ------ ---- ------ ---- ------
8/13/1997 25.75 6/29/1998 29.25 5/12/1999 7 3/23/2000 3 2/7/2001 1.75
8/14/1997 25.5 6/30/1998 29 5/13/1999 6.625 3/24/2000 2.75 2/8/2001 1.7969
8/15/1997 25.25 7/1/1998 28.5 5/14/1999 6.125 3/27/2000 2.875 2/9/2001 1.6875
8/18/1997 25.25 7/2/1998 28.25 5/17/1999 6.1875 3/28/2000 2.875 2/12/2001 1.6875
8/19/1997 25.625 7/6/1998 27.5 5/18/1999 6.1875 3/29/2000 2.625 2/13/2001 1.625
8/20/1997 25 7/7/1998 27.5 5/19/1999 6.0625 3/30/2000 2.625 2/14/2001 1.375
8/21/1997 25 7/8/1998 27.5 5/20/1999 6.0625 3/31/2000 2.375 2/15/2001 1.5
8/22/1997 24.75 7/9/1998 27.75 5/21/1999 5.875 4/3/2000 2.25 2/16/2001 1.375
8/25/1997 25.25 7/10/1998 27.75 5/24/1999 5.9375 4/4/2000 2.3125 2/20/2001 1.25
8/26/1997 23.875 7/13/1998 27.75 5/25/1999 6 4/5/2000 2.375 2/21/2001 1.4688
8/27/1997 24 7/14/1998 27.875 5/26/1999 6.0781 4/6/2000 2.125 2/22/2001 1.25
8/28/1997 24 7/15/1998 27.75 5/27/1999 6.375 4/7/2000 2.25 2/23/2001 1.3125
8/29/1997 24.125 7/16/1998 28.125 5/28/1999 6.375 4/10/2000 2.125 2/26/2001 1.5
9/2/1997 24 7/17/1998 28.125 6/1/1999 6 4/11/2000 2 2/27/2001 1.3125
9/3/1997 25.125 7/20/1998 28.375 6/2/1999 5.375 4/12/2000 1.875 2/28/2001 1.3125
9/4/1997 24.75 7/21/1998 29.375 6/3/1999 5.0625 4/13/2000 2 3/1/2001 1.25
9/5/1997 25.125 7/22/1998 29 6/4/1999 5.75 4/14/2000 1.75 3/2/2001 1.4375
9/8/1997 24.625 7/23/1998 28.8125 6/7/1999 6 4/17/2000 2 3/5/2001 1.4375
9/9/1997 24.5 7/24/1998 29.5 6/8/1999 6.5 4/18/2000 2 3/6/2001 1.5
9/10/1997 25.7031 7/27/1998 29 6/9/1999 6.5625 4/19/2000 2.125 3/7/2001 1.3125
9/11/1997 25.75 7/28/1998 28.6875 6/10/1999 6.3125 4/20/2000 2.3125 3/8/2001 1.375
9/12/1997 25 7/29/1998 29 6/11/1999 6.125 4/24/2000 2.375 3/9/2001 1.4375
9/15/1997 25.75 7/30/1998 28.5 6/14/1999 6.125 4/25/2000 2.125 3/12/2001 1.3125
9/16/1997 26 7/31/1998 28.25 6/15/1999 6.25 4/26/2000 2.125 3/13/2001 1.375
9/17/1997 26.25 8/3/1998 27.5 6/16/1999 6.25 4/27/2000 2 3/14/2001 1.125
9/18/1997 25.75 8/4/1998 24.9375 6/17/1999 6.625 4/28/2000 2.125 3/15/2001 1.0938
9/19/1997 25.5 8/5/1998 24.5 6/18/1999 6.25 5/1/2000 2.25 3/16/2001 1.1875
9/22/1997 25.75 8/6/1998 26.5 6/21/1999 6.5625 5/2/2000 2.375 3/19/2001 1.1875
9/23/1997 25.5 8/7/1998 26.125 6/22/1999 6.25 5/3/2000 2 3/20/2001 1.0313
9/24/1997 25.75 8/10/1998 26.25 6/23/1999 6.125 5/4/2000 2.375 3/21/2001 1.25
9/25/1997 25.25 8/11/1998 25.25 6/24/1999 6 5/5/2000 2 3/22/2001 1.3125
9/26/1997 25.375 8/12/1998 25.375 6/25/1999 5.75 5/8/2000 2.25 3/23/2001 1.1563
9/29/1997 25.4375 8/13/1998 24.5 6/28/1999 5.75 5/9/2000 2 3/26/2001 1.125
9/30/1997 25.5 8/14/1998 24.75 6/29/1999 5.75 5/10/2000 1.875 3/27/2001 1.1563
10/1/1997 25.75 8/17/1998 24.625 6/30/1999 5.5 5/11/2000 1.875 3/28/2001 1.625
10/2/1997 25.75 8/18/1998 24.375 7/1/1999 5.75 5/12/2000 2.125 3/29/2001 1.625
10/3/1997 26 8/19/1998 24.25 7/2/1999 5.875 5/15/2000 2.25 3/30/2001 1.25
10/6/1997 26 8/20/1998 24.3125 7/6/1999 6.25 5/16/2000 1.875 4/2/2001 1.2188
10/7/1997 26.25 8/21/1998 23.625 7/7/1999 6.375 5/17/2000 2 4/3/2001 1.25
10/8/1997 26.25 8/24/1998 22.5 7/8/1999 6.1875 5/18/2000 1.75 4/4/2001 1.25
10/9/1997 26 8/25/1998 21 7/9/1999 6.125 5/19/2000 2.125 4/5/2001 1.25
10/10/1997 26 8/26/1998 20.375 7/12/1999 6.5625 5/22/2000 1.875 4/9/2001 1.25
10/13/1997 26 8/27/1998 18.5 7/13/1999 6.625 5/23/2000 2.0313 4/10/2001 1.32
10/14/1997 26 8/28/1998 18.0625 7/14/1999 6.5 5/24/2000 2.25 4/11/2001 1.3
10/15/1997 26 8/31/1998 17.5 7/15/1999 6.5 5/25/2000 2.25 4/17/2001 1.32
10/16/1997 26 9/1/1998 19.875 7/16/1999 5.625 5/26/2000 2.125 4/18/2001 1.18
10/17/1997 26 9/2/1998 19 7/19/1999 6.125 5/30/2000 2.125 4/19/2001 1.15
10/20/1997 26 9/3/1998 17 7/20/1999 6.0313 5/31/2000 2.0625 4/20/2001 1.18
10/21/1997 26.125 9/4/1998 15.125 7/21/1999 6 6/1/2000 2.0625 4/23/2001 1.19
10/22/1997 26.125 9/8/1998 16.25 7/22/1999 5.9375 6/2/2000 2 4/24/2001 1.05
10/23/1997 26.125 9/9/1998 13.625 7/23/1999 5.8125 6/5/2000 2.125 4/26/2001 1.15
10/24/1997 26.25 9/10/1998 13 7/26/1999 6.375 6/6/2000 2 4/27/2001 1.3
10/27/1997 26.125 9/11/1998 13.125 7/27/1999 6 6/7/2000 2.125 4/30/2001 1.07
10/28/1997 26.25 9/14/1998 13 7/28/1999 5.875 6/8/2000 2.25 5/1/2001 1.26
10/29/1997 26 9/15/1998 13.125 7/29/1999 6.125 6/9/2000 2.25 5/2/2001 1.5
10/30/1997 25.375 9/16/1998 12.625 7/30/1999 5.625 6/12/2000 2.0625 5/3/2001 1.35
10/31/1997 25.5 9/17/1998 12.75 8/2/1999 5.5625 6/13/2000 2 5/7/2001 1.5
11/3/1997 25.5 9/18/1998 12.125 8/3/1999 5.375 6/14/2000 2.0625 5/8/2001 1.54
11/4/1997 25.5 9/21/1998 12.0625 8/4/1999 5 6/15/2000 2.1875 5/9/2001 1.48
11/5/1997 25.5 9/22/1998 15.5 8/5/1999 5.75 6/16/2000 2.1875 5/10/2001 1.55
11/6/1997 25.625 9/23/1998 18.5 8/6/1999 5.25 6/19/2000 2.125 5/11/2001 1.5
11/7/1997 25.5 9/24/1998 16.75 8/9/1999 5 6/20/2000 1.9375 5/14/2001 1.5
11/10/1997 25.25 9/25/1998 16.5 8/10/1999 5.125 6/21/2000 2 5/15/2001 1.5
11/11/1997 25.5 9/28/1998 16 8/11/1999 5.125 6/22/2000 2.0625 5/16/2001 1.5
11/12/1997 26 9/29/1998 16.25 8/12/1999 4.75 6/23/2000 2 5/17/2001 1.46
11/13/1997 26.5 9/30/1998 16 8/13/1999 1.7813 6/26/2000 1.8125 5/18/2001 1.46
11/14/1997 26.5 10/1/1998 15.5 8/16/1999 1.4375 6/27/2000 1.5781 5/21/2001 1.35
11/17/1997 26.75 10/2/1998 14.5 8/17/1999 1.5 6/28/2000 1.625 5/22/2001 1.35
11/18/1997 27 10/5/1998 14.625 8/18/1999 1.875 6/29/2000 1.625 5/23/2001 1.3
11/19/1997 28.5 10/6/1998 12.5 8/19/1999 1.9375 6/30/2000 1.875 5/24/2001 1.38
11/20/1997 30.25 10/7/1998 12.3125 8/20/1999 1.9375 7/3/2000 2 5/25/2001 1.45
11/21/1997 30.125 10/8/1998 12.125 8/23/1999 2.0313 7/5/2000 1.75 5/29/2001 1.39
11/24/1997 29.625 10/9/1998 13 8/24/1999 2.0313 7/6/2000 1.75 5/30/2001 1.5
11/25/1997 29.75 10/12/1998 13.5 8/25/1999 2 7/7/2000 1.75 5/31/2001 1.39
11/26/1997 29.875 10/13/1998 12.9375 8/26/1999 1.875 7/10/2000 2 6/1/2001 1.54
11/28/1997 29.625 10/14/1998 12.875 8/27/1999 1.8125 7/11/2000 2.125 6/4/2001 1.39
12/1/1997 29.8125 10/15/1998 12.75 8/30/1999 1.5 7/12/2000 2.25 6/5/2001 1.3
12/2/1997 29.75 10/16/1998 12.625 8/31/1999 1.5 7/13/2000 2.25 6/6/2001 1.31
12/3/1997 30 10/19/1998 13 9/1/1999 1.4375 7/14/2000 2.5 6/8/2001 1.7
12/4/1997 30.125 10/20/1998 14.5 9/2/1999 1.5625 7/17/2000 2.4375 6/11/2001 1.5
12/5/1997 30.125 10/21/1998 14.5625 9/3/1999 1.625 7/18/2000 2.4375 6/12/2001 1.6
12/8/1997 30.375 10/22/1998 13.625 9/7/1999 1.6875 7/19/2000 2.5 6/13/2001 1.5
12/9/1997 30.25 10/23/1998 13.125 9/8/1999 1.5625 7/20/2000 2.1875 6/15/2001 1.46
12/10/1997 30.25 10/26/1998 12.875 9/9/1999 1.5313 7/21/2000 2.5 6/19/2001 1.35
12/11/1997 30.75 10/27/1998 13.375 9/10/1999 1.375 7/24/2000 2.5 6/20/2001 1.74
12/12/1997 30.25 10/28/1998 13.625 9/13/1999 1.375 7/25/2000 2.25 6/21/2001 1.7
12/15/1997 30.375 10/29/1998 13.25 9/14/1999 1.4063 7/26/2000 2.3125 6/25/2001 1.7
12/16/1997 30.375 10/30/1998 13.25 9/15/1999 1.1875 7/27/2000 2.375 6/26/2001 1.49
12/17/1997 30.125 11/2/1998 13.125 9/16/1999 0.75 7/28/2000 2.4375 6/27/2001 1.39
12/18/1997 30.25 11/3/1998 12.625 9/17/1999 1 7/31/2000 2.5 6/28/2001 1.52
12/19/1997 30.125 11/4/1998 12 9/20/1999 1.1875 8/1/2000 2.875 6/29/2001 1.4
12/22/1997 30.375 11/5/1998 13.0625 9/21/1999 1.4375 8/2/2000 2.625 7/2/2001 1.7
12/23/1997 30.375 11/6/1998 13 9/22/1999 1.375 8/3/2000 2.625 7/3/2001 1.39
12/24/1997 30.375 11/9/1998 13 9/23/1999 1.3125 8/4/2000 2.75 7/6/2001 1.4
12/26/1997 30.375 11/10/1998 13.5 9/24/1999 1.5 8/7/2000 2.75 7/9/2001 1.4
12/29/1997 30.375 11/11/1998 13.3125 9/27/1999 1.4375 8/8/2000 2.6875 7/10/2001 1.5
12/30/1997 30.5 11/12/1998 13.375 9/28/1999 1.375 8/9/2000 2.5625 7/11/2001 1.51
12/31/1997 30.375 11/13/1998 13.5 9/29/1999 1.375 8/10/2000 2.375 7/12/2001 1.54
1/2/1998 29.875 11/16/1998 13.625 9/30/1999 1.5 8/11/2000 1.9375 7/13/2001 1.44
1/5/1998 30.25 11/17/1998 13.875 10/1/1999 1.625 8/14/2000 1.875 7/16/2001 1.35
1/6/1998 30 11/18/1998 13.625 10/4/1999 1.75 8/15/2000 1.75 7/17/2001 1.42
1/7/1998 29.5 11/19/1998 13 10/5/1999 1.7813 8/16/2000 1.6875 7/18/2001 1.4
1/8/1998 30 11/20/1998 13.875 10/6/1999 1.75 8/17/2000 1.625 7/19/2001 1.4
1/9/1998 28 11/23/1998 13.25 10/7/1999 1.625 8/18/2000 1.875 7/20/2001 1.45
1/12/1998 27 11/24/1998 13.0625 10/8/1999 1.75 8/21/2000 1.6875 7/23/2001 1.6
1/13/1998 27.5 11/25/1998 13.0625 10/11/1999 1.625 8/22/2000 1.8125 7/25/2001 1.6
1/14/1998 28.375 11/27/1998 13.3125 10/12/1999 1.5 8/23/2000 1.75 7/26/2001 1.5
1/15/1998 28.125 11/30/1998 12.625 10/13/1999 1.5625 8/24/2000 1.625 7/27/2001 1.5
1/16/1998 28.375 12/1/1998 12.375 10/14/1999 1.5 8/25/2000 1.625 7/31/2001 1.55
1/20/1998 28.375 12/2/1998 12 10/15/1999 1.5 8/28/2000 1.5 8/1/2001 1.53
1/21/1998 28.25 12/3/1998 12 10/18/1999 1.4375 8/29/2000 1.8125 8/2/2001 1.555
1/22/1998 27.5 12/4/1998 12 10/19/1999 1.5625 8/30/2000 1.8125 8/3/2001 1.55
1/23/1998 27.5 12/7/1998 11.625 10/20/1999 1.4375 8/31/2000 2 8/7/2001 1.4
1/27/1998 27.25 12/8/1998 11.375 10/21/1999 1.4688 9/1/2000 2.0625 8/8/2001 1.45
1/28/1998 27.625 12/9/1998 11.125 10/22/1999 1.4375 9/5/2000 2 8/9/2001 1.5
1/29/1998 28.25 12/10/1998 11.0625 10/25/1999 1.3438 9/6/2000 2 8/10/2001 1.5
1/30/1998 28.375 12/11/1998 11.0625 10/26/1999 1.375 9/7/2000 2.25 8/13/2001 1.55
2/2/1998 28.375 12/14/1998 10.75 10/27/1999 1.25 9/8/2000 2.125 8/14/2001 1.66
2/3/1998 28.25 12/15/1998 10.5625 10/28/1999 1.25 9/11/2000 2.125 8/15/2001 1.84
2/4/1998 28.125 12/16/1998 10.375 10/29/1999 1.2813 9/12/2000 2 8/16/2001 1.65
2/5/1998 28.5 12/17/1998 10.5 11/1/1999 1.1875 9/13/2000 2 8/17/2001 1.65
2/6/1998 28.25 12/18/1998 11 11/2/1999 1.1875 9/14/2000 2.125 8/20/2001 1.6
2/9/1998 28.375 12/21/1998 11.75 11/3/1999 1.125 9/15/2000 2 8/21/2001 1.3824
2/10/1998 28.125 12/22/1998 13.125 11/4/1999 1.1406 9/18/2000 2 8/22/2001 1.38
2/11/1998 28.125 12/23/1998 12.875 11/5/1999 1.1875 9/19/2000 1.9375 8/23/2001 1.403
2/12/1998 28.125 12/24/1998 13 11/8/1999 1.2188 9/20/2000 2.0625 8/24/2001 1.45
2/13/1998 28.125 12/28/1998 13.75 11/9/1999 1.5 9/21/2000 2.0625 8/27/2001 1.451
2/17/1998 28 12/29/1998 13.6875 11/10/1999 1.625 9/22/2000 1.9688 8/28/2001 1.46
2/18/1998 28 12/30/1998 13.625 11/11/1999 1.875 9/25/2000 1.9688 8/29/2001 1.5
2/19/1998 29.125 12/31/1998 12.9375 11/12/1999 2.25 9/26/2000 2 8/30/2001 1.81
2/20/1998 29.5 1/4/1999 13 11/15/1999 2.625 9/27/2000 1.875 8/31/2001 1.7994
2/23/1998 30.75 1/5/1999 13.375 11/16/1999 2.3125 9/28/2000 1.875 9/4/2001 1.49
2/24/1998 31.5 1/6/1999 15.5 11/17/1999 2.125 9/29/2000 1.9063 9/5/2001 1.7
2/25/1998 31 1/7/1999 16.5 11/18/1999 2.125 10/2/2000 1.9375 9/6/2001 1.48
2/26/1998 31 1/8/1999 16.75 11/19/1999 2.125 10/3/2000 2 9/7/2001 1.7
2/27/1998 30.875 1/11/1999 16.25 11/22/1999 2.5 10/4/2000 2.0625 9/10/2001 1.6
3/2/1998 30.9375 1/12/1999 16.625 11/23/1999 2.375 10/5/2000 2 9/17/2001 1.7005
3/3/1998 30.75 1/13/1999 14 11/24/1999 2.4375 10/6/2000 1.9375 9/18/2001 1.55
3/4/1998 30.625 1/14/1999 14.75 11/26/1999 2.25 10/9/2000 1.875 9/19/2001 1.5
3/5/1998 30.5 1/15/1999 14 11/29/1999 2 10/10/2000 1.9375 9/20/2001 1.5
3/6/1998 30.625 1/19/1999 13.875 11/30/1999 2.125 10/11/2000 2 9/21/2001 1.4916
3/9/1998 30 1/20/1999 14 12/1/1999 2.125 10/12/2000 1.9688 9/24/2001 1.73
3/10/1998 30 1/21/1999 14.125 12/2/1999 2.0625 10/13/2000 1.9688 9/25/2001 1.55
3/11/1998 30.1875 1/22/1999 13.75 12/3/1999 2.0625 10/16/2000 1.9688 9/26/2001 1.6
3/12/1998 30.25 1/25/1999 14.125 12/6/1999 1.75 10/17/2000 1.9688 9/27/2001 1.75
3/13/1998 30.5 1/26/1999 14 12/7/1999 1.75 10/18/2000 2 9/28/2001 1.75
3/16/1998 30.375 1/27/1999 14.125 12/8/1999 1.875 10/19/2000 1.9375 10/1/2001 1.78
3/17/1998 30.5 1/28/1999 14.0625 12/9/1999 2 10/20/2000 2 10/2/2001 1.76
3/18/1998 30.125 1/29/1999 14.625 12/10/1999 1.7813 10/23/2000 1.9375 10/3/2001 1.75
3/19/1998 30 2/1/1999 14.375 12/13/1999 2 10/24/2000 1.9375 10/4/2001 1.74
3/20/1998 30.125 2/2/1999 13.5 12/14/1999 1.875 10/25/2000 2 10/5/2001 1.5811
3/23/1998 30.125 2/3/1999 13.375 12/15/1999 2 10/26/2000 2.0625 10/8/2001 1.79
3/24/1998 30 2/4/1999 12.5 12/16/1999 2.0625 10/27/2000 1.9375 10/9/2001 1.58
3/25/1998 29.875 2/5/1999 13.5 12/17/1999 2.0625 10/30/2000 2 10/10/2001 1.79
3/26/1998 30.125 2/8/1999 12.75 12/20/1999 2.0625 10/31/2000 2 10/12/2001 1.59
3/27/1998 30.125 2/9/1999 12.875 12/21/1999 2.3125 11/1/2000 2 10/15/2001 1.54
3/30/1998 30 2/10/1999 12.9375 12/22/1999 2.625 11/2/2000 2.125 10/16/2001 1.54
3/31/1998 30.25 2/11/1999 13.625 12/23/1999 2.625 11/3/2000 2.0625 10/17/2001 1.8
4/1/1998 29.875 2/12/1999 13.375 12/27/1999 2.1875 11/6/2000 2.1875 10/19/2001 1.8
4/2/1998 30 2/16/1999 12.3125 12/28/1999 2.5 11/7/2000 2.125 10/22/2001 1.51
4/3/1998 29.875 2/17/1999 12.5 12/29/1999 2.3125 11/8/2000 2.125 10/23/2001 1.79
4/6/1998 30.125 2/18/1999 12 12/30/1999 2.375 11/9/2000 2.0938 10/25/2001 1.75
4/7/1998 29.9375 2/19/1999 12.5 12/31/1999 2.75 11/10/2000 2.1875 10/26/2001 1.7107
4/8/1998 30 2/22/1999 12 1/3/2000 2.5 11/13/2000 2.1875 10/29/2001 1.5
4/9/1998 30.25 2/23/1999 11.875 1/4/2000 2.25 11/14/2000 2.1875 10/30/2001 1.49
4/13/1998 30.375 2/24/1999 11.875 1/5/2000 2.5 11/15/2000 2.125 10/31/2001 1.49
4/14/1998 30.75 2/25/1999 11.75 1/6/2000 2.5 11/16/2000 2.0625 11/1/2001 1.5
4/15/1998 31.375 2/26/1999 12.0625 1/7/2000 2.375 11/17/2000 2.125 11/2/2001 1.55
4/16/1998 33.375 3/1/1999 12.0625 1/10/2000 2.4375 11/20/2000 2.125 11/5/2001 1.55
4/17/1998 33.25 3/2/1999 12.4375 1/11/2000 2.375 11/21/2000 1.9688 11/6/2001 1.595
4/20/1998 32.5 3/3/1999 12.125 1/12/2000 2.5 11/22/2000 1.875 11/7/2001 1.6019
4/21/1998 32 3/4/1999 12.5 1/13/2000 2.625 11/24/2000 1.9531 11/8/2001 1.65
4/22/1998 31.5 3/5/1999 11 1/14/2000 2.6875 11/27/2000 1.9531 11/12/2001 1.6
4/23/1998 32 3/8/1999 11.375 1/18/2000 3.125 11/28/2000 1.9375 11/13/2001 1.65
4/24/1998 32 3/9/1999 10.875 1/19/2000 3 11/29/2000 1.875 11/14/2001 1.64
4/27/1998 32 3/10/1999 11.125 1/20/2000 3.125 11/30/2000 1.875 11/15/2001 1.38
4/28/1998 32 3/11/1999 10.75 1/21/2000 3.125 12/1/2000 2 11/16/2001 1.38
4/29/1998 31.875 3/12/1999 10.875 1/24/2000 3.125 12/4/2000 2 11/20/2001 1.38
4/30/1998 32.5 3/15/1999 10.875 1/25/2000 3.0625 12/5/2000 2.0625 11/21/2001 1.21
5/1/1998 32.25 3/16/1999 10.5 1/26/2000 3.125 12/6/2000 2 11/26/2001 1.4
5/4/1998 32 3/17/1999 10.625 1/27/2000 3.0625 12/7/2000 1.875 11/27/2001 1.21
5/5/1998 31.5 3/18/1999 10.25 1/28/2000 3.1875 12/8/2000 2 11/28/2001 1.4
5/6/1998 31.625 3/19/1999 10.25 1/31/2000 3.125 12/11/2000 1.875 11/29/2001 1.21
5/7/1998 31 3/22/1999 10.125 2/1/2000 3.125 12/12/2000 1.6875 12/3/2001 1.26
5/8/1998 31.25 3/23/1999 10.3125 2/2/2000 3.1875 12/13/2000 1.6875 12/4/2001 1.2
5/11/1998 31 3/24/1999 10 2/3/2000 3.4375 12/14/2000 1.6875 12/5/2001 1.2
5/12/1998 30.75 3/25/1999 9.9375 2/4/2000 3.5 12/15/2000 1.6875 12/6/2001 1.2
5/13/1998 31.375 3/26/1999 9.25 2/7/2000 3.5 12/18/2000 1.5 12/7/2001 1.2015
5/14/1998 30.75 3/29/1999 9.25 2/8/2000 3.8906 12/19/2000 1.625 12/10/2001 1.2
5/15/1998 30.625 3/30/1999 8.875 2/9/2000 3.5 12/20/2000 1.375 12/11/2001 1.04
5/18/1998 30.25 3/31/1999 9.9375 2/10/2000 3.5625 12/21/2000 1.25 12/12/2001 1.21
5/19/1998 30.25 4/1/1999 9.375 2/11/2000 3.4375 12/22/2000 1.3125 12/13/2001 1.2005
5/20/1998 29.875 4/5/1999 9.0625 2/14/2000 3.4375 12/26/2000 1.3125 12/14/2001 1.201
5/21/1998 29.6875 4/6/1999 9.0625 2/15/2000 3.4375 12/27/2000 1.3125 12/17/2001 1.15
5/22/1998 29.625 4/7/1999 9.125 2/16/2000 3.25 12/28/2000 1.5625 12/18/2001 1.25
5/26/1998 29.625 4/8/1999 9 2/17/2000 2.9375 12/29/2000 1.6875 12/19/2001 1.199
5/27/1998 29 4/9/1999 8.75 2/18/2000 2.75 1/2/2001 1.875 12/20/2001 1.17
5/28/1998 29.375 4/12/1999 8.8125 2/22/2000 2.5 1/3/2001 1.8125 12/21/2001 1.1505
5/29/1998 29.75 4/13/1999 9.375 2/23/2000 2.5625 1/4/2001 1.875 12/24/2001 1.0807
6/1/1998 29.5 4/14/1999 9.625 2/24/2000 2.3125 1/5/2001 1.875 12/26/2001 1.08
6/2/1998 29.625 4/15/1999 9.75 2/25/2000 2.375 1/8/2001 1.8438 12/27/2001 1.15
6/3/1998 29.625 4/16/1999 10.5 2/28/2000 2.3125 1/10/2001 1.8438 12/28/2001 1.2
6/4/1998 29.75 4/19/1999 11 2/29/2000 2.125 1/11/2001 2 12/31/2001 1.2
6/5/1998 29.75 4/20/1999 10.75 3/1/2000 2.4375 1/16/2001 1.8125 1/2/2002 1.235
6/8/1998 29.5 4/21/1999 11.4375 3/2/2000 2.5625 1/17/2001 1.8125 1/3/2002 1.4
6/9/1998 29.375 4/22/1999 10.5 3/3/2000 2.375 1/18/2001 1.75 1/4/2002 1.52
6/10/1998 28.875 4/23/1999 10.875 3/6/2000 2.5625 1/19/2001 1.875 1/7/2002 1.32
6/11/1998 29 4/26/1999 10.875 3/7/2000 2.75 1/22/2001 1.8125 1/8/2002 1.26
6/12/1998 28.875 4/27/1999 10.25 3/8/2000 2.6875 1/23/2001 1.8125 1/14/2002 1.35
6/15/1998 28.75 4/28/1999 10.6563 3/9/2000 2.625 1/24/2001 1.9375 1/15/2002 1.3
6/16/1998 28.5 4/29/1999 10.875 3/10/2000 2.625 1/25/2001 1.8125 1/17/2002 1.26
6/17/1998 28.375 4/30/1999 10.625 3/13/2000 2.875 1/26/2001 1.875 1/18/2002 1.2
6/18/1998 28.625 5/3/1999 10.375 3/14/2000 2.875 1/29/2001 1.875 1/22/2002 1.26
6/19/1998 28.375 5/4/1999 10 3/15/2000 3 1/30/2001 1.6563 1/23/2002 1.2595
6/22/1998 28.375 5/5/1999 9.3125 3/16/2000 2.875 1/31/2001 1.6563 1/24/2002 1.26
6/23/1998 27.75 5/6/1999 9 3/17/2000 2.75 2/1/2001 1.6563 1/25/2002 1.26
6/24/1998 27.375 5/7/1999 8.3125 3/20/2000 2.8125 2/2/2001 1.6563
6/25/1998 27.375 5/10/1999 7.875 3/21/2000 2.625 2/5/2001 1.6563
6/26/1998 28.75 5/11/1999 7.25 3/22/2000 2.75 2/6/2001 1.8125
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 24 KEEFE, BRUYETTE & WOODS, INC.
================================================================================
EXCHANGE OFFER VALUATION
================================================================================
FIRSTCITY FINANCIAL CORPORATION 25 KEEFE, BRUYETTE & WOODS, INC.
EXCHANGE OFFER VALUATION
================================================================================
Summary
o The valuation of Exchange Offer Choice A is $10.00 per preferred share
in cash, plus 2 times the value of an FCFC common share. The last
trade of FCFC common stock was $1.12, indicating $2.24 per preferred
share in value (OR $12.24 IN TOTAL). However, KBW estimates FCFC's
common stock book value per share, pro forma for the Restructuring at
December 31, 2001, is $3.16. Valued at pro forma book value, the value
per preferred share would be $16.33.
o The valuation of Exchange Offer Choice B is $8.00 per preferred share
in cash, plus 3 times the value of an FCFC common share. The last
trade of FCFC common stock was $1.12, indicating $3.36 per preferred
share in value (OR $11.36 IN TOTAL). However, KBW estimates FCFC's
common stock book value per share, pro forma for the Restructuring at
December 31, 2001 is $3.16. Valued at pro forma book value, the value
per preferred share would be $17.49.
o Assuming a 50% / 50% split, the Exchange Offer is valued at $11.80 (at
FCFC last trade) or at $16.91 (at pro forma book)
o MAJOR ASSUMPTIONS
o 80% of current preferred shares are exchanged in the Exchange
Offer.
o 50% select Exchange Offer Choice A and 50% select Exchange Offer
Choice B.
o Current FCFC common stock price is $1.12.
o Current FCFCO preferred stock price is $7.75.
o 1,222,901 preferred shares outstanding pre-Exchange Offer.
o Pro forma book value per FCFC common share is $3.16.
o All other Restructuring transactions close as contemplated
================================================================================
FIRSTCITY FINANCIAL CORPORATION 26 KEEFE, BRUYETTE & WOODS, INC.
EXCHANGE OFFER VALUATION
================================================================================
Valuation Table
($ in `000s, except per share)
<Table>
<Caption>
PER SHARE VALUE PREMIUM TO MARKET PRICE-TO-LEGAL CLAIM
-------------------------------- ----------------- ------------------------------
CASH PER STOCK PER TOTAL PER LAST 30-DAY DEC. 31 MAR. 31 JUN. 30
SHARE SHARE SHARE TRADE AVG. 2001 2002 2002
-------- --------- --------- ----- ---- ---- ---- ----
EXCHANGE OFFER CHOICE A
FCFC Common Last Price $10.00 $2.24 $12.24 58% 61% 47% 46% 45%
50.0% $10.00 $3.16 $13.16 70% 73% 50% 49% 48%
POST 66.7% $10.00 $4.22 $14.22 83% 87% 54% 53% 52%
RESTRUCTURING 75.0% $10.00 $4.75 $14.75 90% 94% 56% 55% 54%
PRICE-TO-PRO- 90.0% $10.00 $5.69 $15.69 103% 107% 60% 59% 57%
100.0% $10.00 $6.33 $16.33 111% 115% 62% 61% 60%
EXCHANGE OFFER CHOICE B
FCFC Common Last Price $8.00 $3.36 $11.36 47% 50% 43% 42% 42%
50.0% $8.00 $4.75 $12.75 64% 68% 49% 48% 47%
POST 66.7% $8.00 $6.33 $14.33 85% 89% 55% 54% 52%
RESTRUCTURING 75.0% $8.00 $7.12 $15.12 95% 99% 58% 56% 55%
PRICE-TO-PRO- 90.0% $8.00 $8.54 $16.54 113% 118% 63% 62% 61%
100.0% $8.00 $9.49 $17.49 126% 130% 67% 65% 64%
TOTAL EXCHANGE OFFER
FCFC Common Last Price $9.00 $2.80 $11.80 52% 55% 45% 44% 43%
50.0% $9.00 $3.95 $12.95 67% 71% 49% 48% 47%
POST 66.7% $9.00 $5.27 $14.27 84% 88% 54% 53% 52%
RESTRUCTURING 75.0% $9.00 $5.93 $14.93 93% 97% 57% 56% 55%
PRICE-TO-PRO- 90.0% $9.00 $7.12 $16.12 108% 112% 61% 60% 59%
100.0% $9.00 $7.91 $16.91 118% 123% 64% 63% 62%
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 27 KEEFE, BRUYETTE & WOODS, INC.
================================================================================
LIQUIDATION ANALYSIS
================================================================================
FIRSTCITY FINANCIAL CORPORATION 28 KEEFE, BRUYETTE & WOODS, INC.
LIQUIDATION ANALYSIS
================================================================================
Summary
o KBW PERFORMED A LIQUIDATION ANALYSIS, TO INCLUDE:
o Sale of assets
o ASSET SALE APPROACH - MAJOR ASSUMPTIONS
o Assets of FCFC marketed for sale immediately
o Low, Mid, and High price assumptions reviewed
o Assumes assets can be sold within 6 month time period
o 6 months of declining-level parent company operating expenses
(100% in month 1, 90% in month 2, etc.)
o Other selling expenses are 2% of purchase price, transaction
specific legal fees are fixed at $1,500,000
================================================================================
FIRSTCITY FINANCIAL CORPORATION 29 KEEFE, BRUYETTE & WOODS, INC.
LIQUIDATION ANALYSIS
================================================================================
Asset Sale Approach
o The following table illustrates low, mid and high expectations for
cash proceeds from the sale of balance sheet assets.
<Table>
<Caption>
PRICE/CARRYING VALUE $ GROSS PROCEEDS
------------------------ ----------------------------
ASSETS 12/31/2001 LOW MID HIGH LOW MID HIGH
- ------ ---------- ----- ----- ------ ------- ------- --------
Cash and equivalents 5,583 100% 100% 100% 5,583 5,583 5,583
Portfolio Assets, Net 14,218 80% 90% 100% 11,375 12,796 14,218
Loans Receivable
Student Loans, net 134 70% 85% 100% 94 114 134
Auto Loans, net -- 70% 85% 100% -- -- --
Note Receivable 19,765 80% 90% 100% 15,812 17,788 19,765
Mortgage loans held for sale -- 70% 85% 100% -- -- --
Equity Investments
Drive Financial 10,071 75% 100% 125% 7,553 10,071 12,589
MCS 2,350 80% 90% 100% 1,880 2,115 2,350
Acquisition Partnerships 42,234 90% 95% 100% 38,011 40,122 42,234
Discontinued Operations 16,657 25% 38% 50% 4,164 6,246 8,329
Interest Receivable 921 100% 100% 100% 921 921 921
Deferred Tax Asset 20,101 0% 0% 0% -- -- --
Furniture & Fixtures 2,475 25% 50% 66% 619 1,238 1,634
Accounts Receivable 403 90% 95% 100% 363 383 403
Note Receivable - related 142 70% 85% 100% 99 120 142
Service Fees Receivable 1,546 70% 85% 100% 1,082 1,314 1,546
Prepaid Expenses 1,483 0% 15% 25% -- 222 371
Servicing Rights 133 70% 85% 100% 93 113 133
Goodwill 108 0% 0% 0% -- -- --
Other Assets 568 100% 100% 100% 568 568 568
---------- ------- ------- --------
TOTAL ASSETS $ 138,893 Cash Proceeds: $88,218 $99,717 $110,920
========== ======= ======= ========
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 30 KEEFE, BRUYETTE & WOODS, INC.
LIQUIDATION ANALYSIS
================================================================================
Asset Sale Approach
o As can be seen below, only our "High" expectations for asset sale
prices result in any remaining proceeds for Preferred shareholders.
The cash flow provided from our High price expectation is $5.50 per
preferred share.
o The "Mid" and "Low" price expectations do not result in any proceeds
for preferred shareholders.
<Table>
<Caption>
$ PROCEEDS
------------------------------------
LOW MID HIGH
--------- --------- ----------
Gross Cash Proceeds................... $ 88,218 $ 99,717 $ 110,920
Parent Expenses....................... (1,688) (1,688) (1,688)
Direct Sale Expenses.................. (1,764) (1,994) (2,218)
Legal Expenses........................ (1,500) (1,500) (1,500)
--------- --------- ----------
Net Proceeds.......................... 83,266 94,535 105,514
========= ========= ==========
Notes Payable to Banks................ (83,266) (91,209) (91,209)
Accounts Payable & Accrued Interest... -- (350) (350)
Accrued Expenses...................... -- (2,163) (2,163)
Minority Interest..................... -- (813) (5,060)
Net Proceeds Available for Preferred.. -- -- 6,731
Net Proceeds Per Preferred Share...... $ 0.00 $ 0.00 $ 5.50
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 31 KEEFE, BRUYETTE & WOODS, INC.
LIQUIDATION ANALYSIS
================================================================================
Asset Sale Approach - Conclusions
o The Low and Mid price level expectations generate no cash for
preferred stock holders. Even the High price expectation level
generates only $5.50 per preferred share of cash. The Exchange Offer
is superior to the Asset Sale Approach liquidation analysis.
o The majority of FCFC's assets are illiquid, there is no readily
available market for them, thus, book value is likely the best price
one could expect to achieve in any sale (for assets that may have
value for another investor).
o Several types of FCFC's assets are not saleable, for instance the
Deferred Tax Asset is an intangible asset.
o Assets from Discontinued Operations are highly illiquid (they are
primarily residual assets from home equity securitizations) and would
likely only be purchased at a significant discount to carrying value.
o FCFC's interest in Drive may sell for a price higher than book value.
However given the current ownership structure of Drive (with BOS
owning 49%) it is unclear what type of entity would purchase it. Also,
when taken outside the auspices of the Restructuring as a whole, it is
unlikely that FCFC would be able to achieve pricing as favorable as
what is contemplated in conjunction with the Restructuring.
================================================================================
FIRSTCITY FINANCIAL CORPORATION 32 KEEFE, BRUYETTE & WOODS, INC.
================================================================================
FINANCIAL SERVICES "GOING PRIVATE" TRANSACTIONS
================================================================================
FIRSTCITY FINANCIAL CORPORATION 33 KEEFE, BRUYETTE & WOODS, INC.
FINANCIAL SERVICES GOING PRIVATE TRANSACTIONS
================================================================================
Summary Information & Premiums Paid
<Table>
<Caption>
FINANCIAL TYPE OF ANNOUNCEMENT TENDER
COMPANY NAME STATE SECTOR SECURITY DEAL VALUE DATE OFFER PRICE
- ------------ ----- ----------- ------------ ---------- ------------ -----------
BancWest Corporation CA Bank Common Stock $2,438,200 05/07/2001 $ 35.00
FVNB Corporation TX Bank Common Stock 16,875 04/27/2001 45.00
Essex Bancorp, Inc. VA Thrift Common Stock 1,538 01/31/2001 1.45
Impac Commercial Holdings, Inc. MD Real Estate Common Stock 41,410 10/13/2000 7.55
National Discount Brokers Group NJ Broker Common Stock 857,906 10/09/2000 49.00
BNC Mortgage, Inc. CA Mortgage Common Stock 52,565 02/04/2000 10.00
Bankatlantic Bancorp, Inc. FL Thrift Common Stock 39,581 01/14/2000 6.00
PIMCO Advisors Holdings L.P. CA Investments Common Stock 1,921,362 10/31/1999 38.75
Preferred Employers Holdings, Inc. FL Insurance Common Stock 16,122 09/16/1999 5.00
Hawaii National Bancshares, Inc. HI Bank Common Stock 31,995 05/04/1999 45.00
FIRSTCITY FINANCIAL CORPORATION TX ASSET PREFERRED STOCK 11,544 (a) 11.80
---------- ---------- -----------
16,542 (b) 16.91
</Table>
<Table>
<Caption>
FINANCIAL TYPE OF PRICE ONE DAY ONE DAY 30-DAY-AVG. 30-DAY-AVG.
COMPANY NAME STATE SECTOR SECURITY PRIOR TO ANN. PREMIUM PRIOR TO ANN. PREMIUM
- ------------ ----- ----------- ------------ ------------- ------- ------------- -----------
BancWest Corporation CA Bank Common Stock $ 24.98 40.1% $ 24.61 42.2%
FVNB Corporation TX Bank Common Stock 34.85 29.1% 33.41 34.7%
Essex Bancorp, Inc. VA Thrift Common Stock 1.40 3.6% 1.24 16.7%
Impac Commercial Holdings, Inc. MD Real Estate Common Stock 7.37 2.4% 6.53 15.6%
National Discount Brokers Group NJ Broker Common Stock 25.25 94.1% 31.04 57.9%
BNC Mortgage, Inc. CA Mortgage Common Stock 7.38 35.5% 6.57 52.2%
Bankatlantic Bancorp, Inc. FL Thrift Common Stock 4.81 24.7% 4.88 23.0%
PIMCO Advisors Holdings L.P. CA Investments Common Stock 34.69 11.7% 33.52 15.6%
Preferred Employers Holdings, Inc. FL Insurance Common Stock 2.75 81.8% 2.92 71.4%
Hawaii National Bancshares, Inc. HI Bank Common Stock 40.00 12.5% 40.75 10.4%
MEDIAN: 26.9% 28.8%
FIRSTCITY FINANCIAL CORPORATION TX ASSET PREFERRED STOCK 7.75 52.3% 7.59 55.4%
------------- ------- ------------- -----------
7.75 118.2% 7.59 122.6%
</Table>
(a) Premium and value based on exchanging for FCFC common shares at current
market price
(b) Premium and value based on exchanging for FCFC common shares valued at pro
forma book value per share
================================================================================
FIRSTCITY FINANCIAL CORPORATION 34 KEEFE, BRUYETTE & WOODS, INC.
================================================================================
CASE STUDY COMPARISON:
DYNEX CAPITAL
================================================================================
FIRSTCITY FINANCIAL CORPORATION 35 KEEFE, BRUYETTE & WOODS, INC.
CASE STUDY COMPARISON: DYNEX CAPITAL
================================================================================
Description of Dynex Capital
DESCRIPTION FROM DX 9/30/98 10-Q
Dynex Capital, Inc. is a financial services company electing to be treated
as a real estate investment trust. Dynex originates primarily mortgage
loans secured by multifamily and commercial properties and loans secured by
manufactured homes. Dynex will generally securitize the loans funded as
collateral for collateralized bonds, thereby limiting its credit and
liquidity risk and providing long-term financing for its investment
portfolio.
================================================================================
FIRSTCITY FINANCIAL CORPORATION 36 KEEFE, BRUYETTE & WOODS, INC.
CASE STUDY COMPARISON: DYNEX CAPITAL
================================================================================
Relative Common Stock Performance: DX vs. FCFC
[GRAPH]
<Table>
<Caption>
Date FCFC (-96.1%) DX (-94.2%) Date FCFC (-96.1%) DX (-94.2%) Date FCFC (-96.1%) DX (-94.2%)
- ---- ------------- ----------- ---- ------------- ----------- ---- ------------- -----------
1/30/1998 100 100 6/11/1999 21.58590308 20.75471698 10/20/2000 7.04845815 2.358490566
2/6/1998 99.55947137 93.86792453 6/18/1999 22.02643172 19.81132075 10/27/2000 6.828193833 2.240566038
2/13/1998 99.11894273 97.16981132 6/25/1999 20.26431718 18.39622642 11/3/2000 7.268722467 2.240566038
2/20/1998 103.9647577 95.28301887 7/2/1999 20.70484581 19.81132075 11/10/2000 7.709251101 2.476415094
2/27/1998 108.8105727 93.39622642 7/9/1999 21.58590308 19.33962264 11/17/2000 7.488986784 2.476415094
3/6/1998 107.9295154 93.86792453 7/16/1999 19.82378855 18.86792453 11/24/2000 6.883171806 2.476415094
3/13/1998 107.4889868 98.11320755 7/23/1999 20.4845815 17.45283019 12/1/2000 7.04845815 2.240566038
3/20/1998 106.1674009 90.09433962 7/30/1999 19.82378855 17.9245283 12/8/2000 7.04845815 2.004716981
3/27/1998 106.1674009 90.56603774 8/6/1999 18.50220264 23.82075472 12/15/2000 5.947136564 1.886792453
4/3/1998 105.2863436 88.20754717 8/13/1999 6.277709251 21.34433962 12/22/2000 4.625550661 1.768867925
4/10/1998 106.6079295 90.56603774 8/20/1999 6.828193833 22.16981132 12/29/2000 5.947136564 1.886792453
4/17/1998 117.1806167 88.67924528 8/27/1999 6.387665198 24.76415094 1/5/2001 6.607929515 1.886792453
4/24/1998 112.7753304 89.62264151 9/3/1999 5.726872247 24.88207547 1/12/2001 7.04845815 2.004716981
5/1/1998 113.6563877 86.32075472 9/10/1999 4.845814978 24.88207547 1/19/2001 6.607929515 2.004716981
5/8/1998 110.1321586 86.79245283 9/17/1999 3.524229075 18.75 1/26/2001 6.607929515 2.004716981
5/15/1998 107.9295154 89.1509434 9/24/1999 5.286343612 11.08490566 2/2/2001 5.837180617 1.245283019
5/22/1998 104.4052863 86.79245283 10/1/1999 5.726872247 11.91037736 2/9/2001 5.947136564 1.339622642
5/29/1998 104.845815 90.09433962 10/8/1999 6.167400881 11.32075472 2/16/2001 4.845814978 1.490566038
6/5/1998 104.845815 87.26415094 10/15/1999 5.286343612 12.26415094 2/23/2001 4.625550661 1.490566038
6/12/1998 101.7621145 77.35849057 10/22/1999 5.066079295 11.91037736 3/2/2001 5.066079295 1.698113208
6/19/1998 100 77.83018868 10/29/1999 4.515594714 12.26415094 3/9/2001 5.066079295 1.849056604
6/26/1998 101.3215859 77.35849057 11/5/1999 4.185022026 11.55660377 3/16/2001 4.185022026 2.358490566
7/3/1998 99.55947137 80.18867925 11/12/1999 7.929515419 15.80188679 3/23/2001 4.075066079 1.886792453
7/10/1998 97.79735683 83.01886792 11/19/1999 7.488986784 12.73584906 3/30/2001 4.405286344 1.886792453
7/17/1998 99.11894273 78.77358491 11/26/1999 7.929515419 12.85377358 4/6/2001 4.405286344 1.943396226
7/24/1998 103.9647577 77.83018868 12/3/1999 7.268722467 14.85849057 4/13/2001 4.581497797 2.075471698
7/31/1998 99.55947137 75.47169811 12/10/1999 6.277709251 12.02830189 4/20/2001 4.158590308 2.320754717
8/7/1998 92.07048458 78.30188679 12/17/1999 7.268722467 12.5 4/27/2001 4.581497797 2.396226415
8/14/1998 87.2246696 80.66037736 12/24/1999 9.251101322 11.43867925 5/4/2001 4.757709251 4.018867925
8/21/1998 83.25991189 80.18867925 12/31/1999 9.691629956 12.14622642 5/11/2001 5.286343612 3.886792453
8/28/1998 63.65638767 77.35849057 1/7/2000 8.370044053 16.74528302 5/18/2001 5.145374449 3.962264151
9/4/1998 53.30396476 75.47169811 1/14/2000 9.471365639 16.50943396 5/25/2001 5.110132159 4.528301887
9/11/1998 46.25550661 65.56603774 1/21/2000 11.01321586 16.27358491 6/1/2001 5.427312775 3.924528302
9/18/1998 42.73127753 63.20754717 1/28/2000 11.23348018 14.85849057 6/8/2001 5.991189427 3.867924528
9/25/1998 58.14977974 63.67924528 2/4/2000 12.33480176 18.04245283 6/15/2001 5.145374449 3.962264151
10/2/1998 51.10132159 61.32075472 2/11/2000 12.11453744 15.09433962 6/22/2001 5.991189427 3.754716981
10/9/1998 45.81497797 35.8490566 2/18/2000 9.691629956 13.08962264 6/29/2001 4.933920705 3.716981132
10/16/1998 44.49339207 37.73584906 2/25/2000 8.370044053 12.73584906 7/6/2001 4.933920705 3.981132075
10/23/1998 46.25550661 45.28301887 3/3/2000 8.370044053 13.20754717 7/13/2001 5.074889868 4.018867925
10/30/1998 46.69603524 36.32075472 3/10/2000 9.251101322 7.429245283 7/20/2001 5.110132159 3.981132075
11/6/1998 45.81497797 33.49056604 3/17/2000 9.691629956 7.547169811 7/27/2001 5.286343612 4.037735849
11/13/1998 47.57709251 35.37735849 3/24/2000 9.691629956 9.551886792 8/3/2001 5.462555066 4.075471698
11/20/1998 48.89867841 37.26415094 3/31/2000 8.370044053 10.61320755 8/10/2001 5.286343612 4.113207547
11/27/1998 46.91629956 35.8490566 4/7/2000 7.929515419 7.783018868 8/17/2001 5.814977974 4.547169811
12/4/1998 42.2907489 36.32075472 4/14/2000 6.167400881 6.839622642 8/24/2001 5.110132159 4.679245283
12/11/1998 38.98678414 38.67924528 4/21/2000 8.149779736 2.948113208 8/31/2001 6.341497797 4.358490566
12/18/1998 38.76651982 34.90566038 4/28/2000 7.488986784 2.948113208 9/7/2001 5.991189427 4.528301887
12/25/1998 45.81497797 32.54716981 5/5/2000 7.04845815 3.891509434 9/14/2001 5.63876652 4.377358491
1/1/1999 45.59471366 34.90566038 5/12/2000 7.488986784 2.476415094 9/21/2001 5.256740088 4.169811321
1/8/1999 59.030837 41.50943396 5/19/2000 7.488986784 2.240566038 9/28/2001 6.167400881 4.622641509
1/15/1999 49.33920705 38.67924528 5/26/2000 7.488986784 2.476415094 10/5/2001 5.57215859 4.339622642
1/22/1999 48.45814978 40.56603774 6/2/2000 7.04845815 2.476415094 10/12/2001 5.603524229 4.603773585
1/29/1999 51.54185022 37.73584906 6/9/2000 7.929515419 2.830188679 10/19/2001 6.343612335 4.339622642
2/5/1999 47.57709251 34.90566038 6/16/2000 7.709251101 2.594339623 10/26/2001 6.028898678 4.547169811
2/12/1999 47.13656388 35.37735849 6/23/2000 7.04845815 3.183962264 11/2/2001 5.462555066 4.339622642
2/19/1999 44.05286344 26.41509434 6/30/2000 6.607929515 3.066037736 11/9/2001 5.814977974 4.471698113
2/26/1999 42.51101322 24.05660377 7/7/2000 6.167400881 2.712264151 11/16/2001 4.863436123 4.188679245
3/5/1999 38.76651982 22.64150943 7/14/2000 8.810572687 2.830188679 11/23/2001 4.264317181 4.226415094
3/12/1999 38.32599119 23.58490566 7/21/2000 8.810572687 2.712264151 11/30/2001 4.264317181 4.150943396
3/19/1999 36.12334802 23.58490566 7/28/2000 8.59030837 2.712264151 12/7/2001 4.234361233 3.943396226
3/26/1999 32.59911894 24.05660377 8/4/2000 9.691629956 2.358490566 12/14/2001 4.232599119 3.679245283
4/2/1999 33.03964758 26.88679245 8/11/2000 6.828193833 2.004716981 12/21/2001 4.054625551 3.679245283
4/9/1999 30.83700441 29.71698113 8/18/2000 6.607929515 1.061320755 12/28/2001 4.22907489 3.981132075
4/16/1999 37.00440529 25.94339623 8/25/2000 5.726872247 1.41509434 1/4/2002 5.356828194 4.075471698
4/23/1999 38.32599119 28.30188679 9/1/2000 7.268722467 3.183962264 1/11/2002 4.440528634 6.037735849
4/30/1999 37.44493392 22.16981132 9/8/2000 7.488986784 2.830188679 1/18/2002 4.22907489 5.735849057
5/7/1999 29.29515419 22.16981132 9/15/2000 7.04845815 2.948113208 1/25/2002 4.440528634 6.886792453
5/14/1999 21.58590308 21.69811321 9/22/2000 6.938502203 2.358490566 2/1/2002 4.22907489 6.622641509
5/21/1999 20.70484581 21.69811321 9/29/2000 6.718237885 2.476415094 2/8/2002 3.982378855 5.735849057
5/28/1999 22.46696035 23.58490566 10/6/2000 6.828193833 3.183962264 2/15/2002 4.052863436 6.226415094
6/4/1999 20.26431718 23.11320755 10/13/2000 6.938502203 2.358490566 2/22/2002 3.911894273 5.754716981
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 37 KEEFE, BRUYETTE & WOODS, INC.
CASE STUDY COMPARISON: DYNEX CAPITAL
================================================================================
Description of Preferred Stock Tender Offers
o Dynex has completed two tender offers for its preferred stock
o APRIL 30, 2001 (announcement)
o SEPTEMBER 6, 2001 (announcement)
o Both tenders involved offering to purchase up to maximum dollar
amounts of Dynex's Series A, Series B and Series C Preferred, for cash
consideration. Maximum amounts were those allowed under senior lending
agreements.
o The maximum amount to be tendered for the April 30th transaction was
$26 million (Series A, B and C).
o The maximum amount to be tendered in the September 6th transaction was
$15 million (Series A, B and C).
================================================================================
FIRSTCITY FINANCIAL CORPORATION 38 KEEFE, BRUYETTE & WOODS, INC.
CASE STUDY COMPARISON: DYNEX CAPITAL
================================================================================
Preferred Stock Tenders - Pertinent Statistics
SUMMARY OF DYNEX CAPITAL 2001 PREFERRED STOCK TENDER OFFERS
<Table>
<Caption>
Tender Liquidation Last Tender / Liquidation Tender / Tender Max
Offer Preference Trade Preference Last Trade Dollar Value
------ ----------- ------ -------------------- ---------- ------------
Series A $16.80 $ 28.68 $14.10 58.6% 19.1% 3,575
TENDER
ANNOUNCED Series B $17.15 $ 29.18 $14.40 58.8% 19.1% 5,106
9/6/01
Series C $21.00 $ 35.84 $17.75 58.6% 18.3% 6,400
Series A $12.24 $ 28.11 $11.25 43.5% 8.8% 6,120
TENDER
ANNOUNCED Series B $12.50 $ 28.60 $11.50 43.7% 8.7% 9,125
4/30/01
Series C $15.30 $ 35.11 $13.60 43.6% 12.5% 10,751
Weighted Average ............................................... 49.1% 13.4%
COMPARISON OF FCFC EXCHANGE
FCFCO(1) $11.80 $ 26.25 $ 7.75 45.0% 52.3% 11,544
FCFCO(2) $16.91 $ 26.25 $ 7.75 64.4% 118.2% 16,542
</Table>
Notes:
1) Assumes value of FCFC common stock holds constant at the most recent trade
2) Assumes value of FCFC common stock is book value pro forma for the
restructuring results
================================================================================
FIRSTCITY FINANCIAL CORPORATION 39 KEEFE, BRUYETTE & WOODS, INC.
================================================================================
ALTERNATIVE COMPARISONS:
AMRESCO & WILSHIRE FINANCIAL SERVICES GROUP
================================================================================
FIRSTCITY FINANCIAL CORPORATION 40 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS: AMRESCO & WILSHIRE FINANCIAL SERVICES GROUP
================================================================================
Summary
DESCRIPTION FROM FCFC 9/30/98 10-Q:
The Company is a diversified financial services company engaged in
residential and commercial mortgage banking ("Mortgage Corp."), Portfolio
Asset acquisition and resolution ("Commercial Corp.") and consumer lending
("Consumer Corp.").
DESCRIPTION FROM AMMB 9/30/98 10-Q:
AMRESCO is a diversified financial services company with five principal
lines of business: asset management, commercial mortgage banking, home
equity lending (previously residential mortgage banking), commercial
finance and residential mortgage banking.
DESCRIPTION FROM WFSG 9/30/98 10-Q:
Wilshire Financial Services Group Inc. ("WFSG") is a diversified financial
services company. WFSG conducts business in the United States and Europe,
specializing in loan portfolio acquisition and securitization,
correspondent lending and servicing.
<Table>
<Caption>
FCFC AMMB WFSG
---- ---- ----
ASSET ACQUISITION Y Y Y
LENDING Y Y Y
SERVICING EXPERTISE Y Y Y
U.S. AND ABROAD Y Y Y
RESTRUCTURING Y Y Y
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 41 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS: AMRESCO
================================================================================
Relative Common Stock Performance: AMMB vs. FCFC
[GRAPH]
<Table>
<Caption>
Date FCFC (-95.6%) AMMBQ (-100.0%) Date FCFC (-95.6%) AMMBQ (-100.0%) Date FCFC (-95.6%) AMMBQ (-100.0%)
- ---- ------------- --------------- ---- ------------- --------------- ---- ------------- ---------------
1/30/1998 100 100 6/4/1999 20.3 22.5 10/6/2000 6.8 1.5
2/6/1998 99.6 99.7 6/11/1999 21.6 15.4 10/13/2000 6.9 1.2
2/13/1998 99.1 112 6/18/1999 22 17.9 10/20/2000 7 1.4
2/20/1998 104 105.8 6/25/1999 20.3 21.2 10/27/2000 6.8 1.4
2/27/1998 108.8 119.1 7/2/1999 20.7 20.9 11/3/2000 7.3 1.4
3/6/1998 107.9 113.6 7/9/1999 21.6 21.2 11/10/2000 7.7 1.4
3/13/1998 107.5 106.7 7/16/1999 19.8 20.2 11/17/2000 7.5 1.6
3/20/1998 106.2 115 7/23/1999 20.5 21.6 11/24/2000 6.9 1.4
3/27/1998 106.2 117.5 7/30/1999 19.8 22.1 12/1/2000 7 1.2
4/3/1998 105.3 119.1 8/6/1999 18.5 21.2 12/8/2000 7 1.1
4/10/1998 106.6 118.6 8/13/1999 6.3 21.9 12/15/2000 5.9 1.2
4/17/1998 117.2 131.4 8/20/1999 6.8 26 12/22/2000 4.6 0.9
4/24/1998 112.8 129.7 8/27/1999 6.4 26.1 12/29/2000 5.9 1
5/1/1998 113.7 129.2 9/3/1999 5.7 22.5 1/5/2001 6.6 1
5/8/1998 110.1 124.1 9/10/1999 4.8 15.3 1/12/2001 7 1
5/15/1998 107.9 121.5 9/17/1999 3.5 12 1/19/2001 6.6 1
5/22/1998 104.4 116.9 9/24/1999 5.3 11 1/26/2001 6.6 1
5/29/1998 104.8 119.1 10/1/1999 5.7 10.1 2/2/2001 5.8 1.1
6/5/1998 104.8 120.8 10/8/1999 6.2 9.3 2/9/2001 5.9 1
6/12/1998 101.8 115.5 10/15/1999 5.3 9.9 2/16/2001 4.8 1
6/19/1998 100 104.3 10/22/1999 5.1 9.7 2/23/2001 4.6 0.8
6/26/1998 101.3 109.4 10/29/1999 4.5 10.4 3/2/2001 5.1 0.9
7/3/1998 99.6 105.4 11/5/1999 4.2 9 3/9/2001 5.1 0.8
7/10/1998 97.8 97 11/12/1999 7.9 6.4 3/16/2001 4.2 1
7/17/1998 99.1 101.2 11/19/1999 7.5 8.5 3/23/2001 4.1 0.8
7/24/1998 104 101 11/26/1999 7.9 7.1 3/30/2001 4.4 1
7/31/1998 99.6 100.8 12/3/1999 7.3 10.4 4/6/2001 4.4 1.1
8/7/1998 92.1 93.7 12/10/1999 6.3 7.3 4/13/2001 4.6 0.9
8/14/1998 87.2 90.2 12/17/1999 7.3 6.1 4/20/2001 4.2 1.1
8/21/1998 83.3 67.5 12/24/1999 9.3 5.3 4/27/2001 4.6 0.9
8/28/1998 63.7 50.4 12/31/1999 9.7 5 5/4/2001 4.8 1
9/4/1998 53.3 46.1 1/7/2000 8.4 5.5 5/11/2001 5.3 1.2
9/11/1998 46.3 32.6 1/14/2000 9.5 5 5/18/2001 5.1 1
9/18/1998 42.7 32 1/21/2000 11 4.9 5/25/2001 5.1 0.8
9/25/1998 58.1 29.5 1/28/2000 11.2 4.6 6/1/2001 5.4 0.9
10/2/1998 51.1 22.4 2/4/2000 12.3 4.7 6/8/2001 6 0.9
10/9/1998 45.8 14.1 2/11/2000 12.1 4.6 6/15/2001 5.1 0.8
10/16/1998 44.5 20.3 2/18/2000 9.7 4.9 6/22/2001 6 0.7
10/23/1998 46.3 30 2/25/2000 8.4 4.7 6/29/2001 4.9 0.6
10/30/1998 46.7 24.5 3/3/2000 8.4 4.7 7/6/2001 4.9 0.6
11/6/1998 45.8 25.8 3/10/2000 9.3 7.1 7/13/2001 5.1 0.6
11/13/1998 47.6 29.5 3/17/2000 9.7 6.1 7/20/2001 5.1 0.6
11/20/1998 48.9 27.3 3/24/2000 9.7 5.5 7/27/2001 5.3 0
11/27/1998 46.9 26.7 3/31/2000 8.4 4.7 8/3/2001 5.5 0
12/4/1998 42.3 24.7 4/7/2000 7.9 4.1 8/10/2001 5.3 0
12/11/1998 39 22.6 4/14/2000 6.2 3 8/17/2001 5.8 0
12/18/1998 38.8 27.1 4/21/2000 8.1 3.1 8/24/2001 5.1 0
12/25/1998 45.8 30.4 4/28/2000 7.5 3.1 8/31/2001 6.3 0
1/1/1999 45.6 30.9 5/5/2000 7 3.3 9/7/2001 6 0
1/8/1999 59 43.4 5/12/2000 7.5 2.6 9/14/2001 5.6 0
1/15/1999 49.3 37.9 5/19/2000 7.5 2.2 9/21/2001 5.3 0
1/22/1999 48.5 40.1 5/26/2000 7.5 2.1 9/28/2001 6.2 0
1/29/1999 51.5 40.6 6/2/2000 7 2.4 10/5/2001 5.6 0
2/5/1999 47.6 35.7 6/9/2000 7.9 2.2 10/12/2001 5.6 0
2/12/1999 47.1 37.9 6/16/2000 7.7 2.2 10/19/2001 6.3 0
2/19/1999 44.1 34.8 6/23/2000 7 2.2 10/26/2001 6 0
2/26/1999 42.5 33.4 6/30/2000 6.6 2 11/2/2001 5.5 0
3/5/1999 38.8 36.2 7/7/2000 6.2 1.8 11/9/2001 5.8 0
3/12/1999 38.3 34.6 7/14/2000 8.8 1.8 11/16/2001 4.9 0
3/19/1999 36.1 31.5 7/21/2000 8.8 1.8 11/23/2001 4.3 0
3/26/1999 32.6 30.5 7/28/2000 8.6 1.7 11/30/2001 4.3 0
4/2/1999 33 27.3 8/4/2000 9.7 1.2 12/7/2001 4.2 0
4/9/1999 30.8 28 8/11/2000 6.8 1.1 12/14/2001 4.2 0
4/16/1999 37 24.9 8/18/2000 6.6 1.1 12/21/2001 4.1 0
4/23/1999 38.3 24.3 8/25/2000 5.7 1.2 12/28/2001 4.2 0
4/30/1999 37.4 22.9 9/1/2000 7.3 0.7 1/4/2002 5.4 0
5/7/1999 29.3 21.6 9/8/2000 7.5 0.7 1/11/2002 4.4 0
5/14/1999 21.6 23.4 9/15/2000 7 1.2 1/18/2002 4.2 0
5/21/1999 20.7 24.5 9/22/2000 6.9 1.8 1/24/2002 4.4 0
5/28/1999 22.5 24.3 9/29/2000 6.7 1.9 1/25/2002 4.4 0
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 42 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS: AMRESCO
================================================================================
Investor Recovery Results
o The table compares certain aspects of the experience of particular
AMRESCO note holders and FCFC's preferred holders
<Table>
<Caption>
FCFC(1) AMMB(2)
------------- ---------------------------
EVENT RESTRUCTURING REPURCHASE / SALE OF ASSETS
INVESTORS PREFERRED NOTES
LEGAL CLAIM $32 MILLION $617 MILLION
RECOVERY PERCENTAGE(3) 43% - 47% 53%
EXPECTED LIQUIDATION RECOVERY(4) 21% NA
</Table>
Notes:
(1) Recovery percentage range is from 43% from Exchange Offer Choice A to
47% for Exchange Offer Choice B. Also assumes FCFC common stock worth
the value of last trade. Does not assume any increase in FCFC common
stock due to increase in pro forma book value per common share.
(2) $617 million of legal claim includes $217 million of open market
purchases of Senior Subordinated Notes repurchased in the fourth
quarter of 2000, and $410 million of notes to receive proceeds from the
company's asset sale in connection with its bankruptcy filing. Recovery
percentage for AMRESCO is the blended result between 75% for the open
market purchases and 41% from KBW's estimate of the recovery for note
holders post-bankruptcy. Estimate is based on 8-K filing dated July 5,
2001 and the March 31, 2001 10-Q.
(3) As a percentage of legal claim.
(4) KBW Estimate from Tab 6.
================================================================================
FIRSTCITY FINANCIAL CORPORATION 43 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS: WILSHIRE FINANCIAL SERVICES GROUP
================================================================================
Relative Common Stock Performance: WFSG vs. FCFC
[GRAPH]
<Table>
<Caption>
Date FCFC (-95.6%) WFSG (-90.1%) Date FCFC (-95.6%) WFSG (-90.1%) Date FCFC (-95.6%) WFSG (-90.1%)
- ---- ------------- ------------- ---- ------------- ------------- ---- ------------- -------------
1/30/1998 100 100 6/4/1999 20.3 1.4 10/6/2000 6.8 5.3
2/6/1998 99.6 82.2 6/11/1999 21.6 1.4 10/13/2000 6.9 5
2/13/1998 99.1 84.9 6/18/1999 22 1.4 10/20/2000 7 5.2
2/20/1998 104 81.3 6/25/1999 20.3 1.4 10/27/2000 6.8 4.7
2/27/1998 108.8 84.9 7/2/1999 20.7 1.4 11/3/2000 7.3 4.8
3/6/1998 107.9 93.5 7/9/1999 21.6 12.5 11/10/2000 7.7 4.3
3/13/1998 107.5 90.9 7/16/1999 19.8 9.6 11/17/2000 7.5 4.3
3/20/1998 106.2 94.2 7/23/1999 20.5 9.1 11/24/2000 6.9 4.6
3/27/1998 106.2 94.2 7/30/1999 19.8 4.8 12/1/2000 7 4.4
4/3/1998 105.3 95.2 8/6/1999 18.5 5 12/8/2000 7 4.6
4/10/1998 106.6 96.2 8/13/1999 6.3 6 12/15/2000 5.9 4.6
4/17/1998 117.2 96.2 8/20/1999 6.8 4.8 12/22/2000 4.6 4.3
4/24/1998 112.8 94.2 8/27/1999 6.4 5.3 12/29/2000 5.9 4.8
5/1/1998 113.7 92.8 9/3/1999 5.7 5.3 1/5/2001 6.6 4.6
5/8/1998 110.1 89.9 9/10/1999 4.8 6.5 1/12/2001 7 4.7
5/15/1998 107.9 85.3 9/17/1999 3.5 5.8 1/19/2001 6.6 4.9
5/22/1998 104.4 81.5 9/24/1999 5.3 4.8 1/26/2001 6.6 5
5/29/1998 104.8 90.4 10/1/1999 5.7 4.7 2/2/2001 5.8 6.1
6/5/1998 104.8 87.5 10/8/1999 6.2 5 2/9/2001 5.9 6.4
6/12/1998 101.8 92.3 10/15/1999 5.3 5.3 2/16/2001 4.8 6.5
6/19/1998 100 96.2 10/22/1999 5.1 5.5 2/23/2001 4.6 6.6
6/26/1998 101.3 91.3 10/29/1999 4.5 5.5 3/2/2001 5.1 6.6
7/3/1998 99.6 88 11/5/1999 4.2 4.7 3/9/2001 5.1 6.3
7/10/1998 97.8 90.4 11/12/1999 7.9 4.4 3/16/2001 4.2 6.3
7/17/1998 99.1 89.4 11/19/1999 7.5 4.1 3/23/2001 4.1 6.7
7/24/1998 104 90.4 11/26/1999 7.9 4.3 3/30/2001 4.4 6.7
7/31/1998 99.6 81.3 12/3/1999 7.3 7 4/6/2001 4.4 6.9
8/7/1998 92.1 75 12/10/1999 6.3 5.9 4/13/2001 4.6 7.8
8/14/1998 87.2 69.2 12/17/1999 7.3 5 4/20/2001 4.2 8
8/21/1998 83.3 58.7 12/24/1999 9.3 5 4/27/2001 4.6 8.2
8/28/1998 63.7 45.2 12/31/1999 9.7 5.3 5/4/2001 4.8 8.5
9/4/1998 53.3 33.2 1/7/2000 8.4 5 5/11/2001 5.3 8.5
9/11/1998 46.3 34.9 1/14/2000 9.5 4.8 5/18/2001 5.1 8.6
9/18/1998 42.7 32.7 1/21/2000 11 4.3 5/25/2001 5.1 9.3
9/25/1998 58.1 25 1/28/2000 11.2 3.8 6/1/2001 5.4 8.7
10/2/1998 51.1 22.1 2/4/2000 12.3 3.8 6/8/2001 6 8.5
10/9/1998 45.8 15.9 2/11/2000 12.1 4.1 6/15/2001 5.1 8.4
10/16/1998 44.5 12.5 2/18/2000 9.7 4.1 6/22/2001 6 7.7
10/23/1998 46.3 9.9 2/25/2000 8.4 4.3 6/29/2001 4.9 7.5
10/30/1998 46.7 11.8 3/3/2000 8.4 3.8 7/6/2001 4.9 7.5
11/6/1998 45.8 10.1 3/10/2000 9.3 3.8 7/13/2001 5.1 6.2
11/13/1998 47.6 9.4 3/17/2000 9.7 3.6 7/20/2001 5.1 6.9
11/20/1998 48.9 7 3/24/2000 9.7 3.1 7/27/2001 5.3 7.2
11/27/1998 46.9 3.4 3/31/2000 8.4 3.1 8/3/2001 5.5 7.2
12/4/1998 42.3 3.2 4/7/2000 7.9 3.6 8/10/2001 5.3 7.2
12/11/1998 39 2.9 4/14/2000 6.2 4.3 8/17/2001 5.8 7.3
12/18/1998 38.8 2.6 4/21/2000 8.1 4 8/24/2001 5.1 7.2
12/25/1998 45.8 2.5 4/28/2000 7.5 4.3 8/31/2001 6.3 7.2
1/1/1999 45.6 2.4 5/5/2000 7 4.3 9/7/2001 6 7.3
1/8/1999 59 2.3 5/12/2000 7.5 4.8 9/14/2001 5.6 7.2
1/15/1999 49.3 2.3 5/19/2000 7.5 4.6 9/21/2001 5.3 7.4
1/22/1999 48.5 1.9 5/26/2000 7.5 6 9/28/2001 6.2 7.2
1/29/1999 51.5 1.2 6/2/2000 7 6.3 10/5/2001 5.6 7.2
2/5/1999 47.6 1.4 6/9/2000 7.9 5.3 10/12/2001 5.6 6.9
2/12/1999 47.1 1.4 6/16/2000 7.7 5.3 10/19/2001 6.3 6.9
2/19/1999 44.1 1.4 6/23/2000 7 6.3 10/26/2001 6 7.1
2/26/1999 42.5 1.4 6/30/2000 6.6 5.8 11/2/2001 5.5 7.4
3/5/1999 38.8 1.4 7/7/2000 6.2 5.3 11/9/2001 5.8 7.3
3/12/1999 38.3 1.4 7/14/2000 8.8 4.3 11/16/2001 4.9 7.4
3/19/1999 36.1 1.4 7/21/2000 8.8 4.7 11/23/2001 4.3 7.4
3/26/1999 32.6 1.4 7/28/2000 8.6 4.8 11/30/2001 4.3 7.3
4/2/1999 33 1.4 8/4/2000 9.7 4.6 12/7/2001 4.2 7.3
4/9/1999 30.8 1.4 8/11/2000 6.8 4.3 12/14/2001 4.2 7.1
4/16/1999 37 1.4 8/18/2000 6.6 4.3 12/21/2001 4.1 7.3
4/23/1999 38.3 1.4 8/25/2000 5.7 4.6 12/28/2001 4.2 7.9
4/30/1999 37.4 1.4 9/1/2000 7.3 6 1/4/2002 5.4 8.1
5/7/1999 29.3 1.4 9/8/2000 7.5 6 1/11/2002 4.4 9
5/14/1999 21.6 1.4 9/15/2000 7 6 1/18/2002 4.2 10.3
5/21/1999 20.7 1.4 9/22/2000 6.9 6.3 1/24/2002 4.4 10.3
5/28/1999 22.5 1.4 9/29/2000 6.7 5.3 1/25/2002 4.4 9.9
</Table>
================================================================================
FIRSTCITY FINANCIAL CORPORATION 44 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS: WILSHIRE FINANCIAL SERVICES GROUP
================================================================================
Investor Recovery Results
o The table compares certain aspects of the experience of particular
Wilshire note holders and FCFC's preferred holders.
<Table>
<Caption>
FCFC(1) WFSG(2)
------------- ---------------
EVENT RESTRUCTURING BANKRUPTCY PLAN
INVESTORS PREFERRED NOTES
LEGAL CLAIM $32 MILLION $199 MILLION
RECOVERY PERCENTAGE(3) 62% - 67% 37% - 42%
EXPECTED LIQUIDATION RECOVERY(4) 21% 18%
</Table>
Notes:
(1) Recovery percentage range is from 62% from Exchange Offer Choice A to
67% for Exchange Offer Choice B. Also assumes FCFC common stock worth
pro forma book value per common share (pro forma for restructuring).
This compares with WFSG's estimated amount also in the table.
(2) Legal claim, recovery percentage and expected liquidation recovery are
WFSG's estimates include in its Solicitation and Disclosure Statement
Dated February 1, 1999. Legal claim includes accrued interest. Recovery
percentage based on pro forma book value of common shares received.
Liquidation recovery is as a percentage of claims.
(3) As a percentage of legal claim.
(4) KBW estimate from Tab 6 for FCFC.
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FIRSTCITY FINANCIAL CORPORATION 45 KEEFE, BRUYETTE & WOODS, INC.
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KBW CONCLUSION
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FIRSTCITY FINANCIAL CORPORATION 46 KEEFE, BRUYETTE & WOODS, INC.
CONCLUSION
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o IN KBW'S OPINION, THE CONSIDERATION OFFERED TO THE HOLDERS OF FCFC'S
REDEEMABLE PREFERRED STOCK IN THE EXCHANGE OFFER, IS FAIR, FROM A
FINANCIAL POINT OF VIEW. THIS OPINION IS BASED ON THE FOLLOWING:
o The significant premium to the current market price of the
Preferred.
o The high level of premium offered, when compared to other
transactions filed with the SEC as "going private
transactions" in financial services sectors.
o The Exchange Offer's superiority to the results of the
liquidation analysis performed.
o The comparable level of recovery of legal claim of the
Exchange Offer, when compared to the recovery results of
transactions involving restructurings of comparable
companies.
o The liquidity provided to the Preferred holders.
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FIRSTCITY FINANCIAL CORPORATION 47 KEEFE, BRUYETTE & WOODS, INC.