EXHIBIT 99.C3
PRESENTATION TO THE BOARD OF DIRECTORS OF:
[FIRSTCITY FINANCIAL CORPORATION LOGO]
MARCH 26, 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
<Table>
<Caption>
TAB SUBJECT PAGE(S)
- --- ------- -------
1. INTRODUCTION ................................................................ 2-4
2. THE RESTRUCTURING ........................................................... 5-17
3. RESTRUCTURING IMPACT TO FIRSTCITY
Summary ..................................................................... 19
Pro Forma Balance Sheet ..................................................... 20,21
4. HISTORICAL TRADING VALUES & VOLUMES OF PREFERRED & COMMON STOCKS ............ 23-26
5. EXCHANGE OFFER VALUATION
Summary & Assumptions ....................................................... 28
Valuation Table ............................................................. 29
6. LIQUIDATION ANALYSIS
Summary ..................................................................... 31
Asset Sale Approach ......................................................... 32-34
7. GOING PRIVATE TRANSACTIONS .................................................. 36
8. CASE STUDY COMPARISON: DYNEX CAPITAL
Summary Description of Dynex Capital ........................................ 38
Relative Stock Performance .................................................. 39
Tender Offer Summary & Results .............................................. 40,41
9. ALTERNATIVE COMPARISONS: AMRESCO & WILSHIRE FINANCIAL SERVICES GROUP
Summary Comparisons to FCFC ................................................. 43
AMRESCO ..................................................................... 44,45
Wilshire .................................................................... 46,47
10. CONCLUSION .................................................................. 49
</Table>
FIRSTCITY FINANCIAL CORPORATION 1 KEEFE, BRUYETTE & WOODS, INC.
INTRODUCTION
FIRSTCITY FINANCIAL CORPORATION 2 KEEFE, BRUYETTE & WOODS, INC.
FIRSTCITY RESTRUCTURING TRANSACTION SUMMARY
o FIRSTCITY ("FCFC") IS CONTEMPLATING ENTERING INTO A NUMBER OF TRANSACTIONS,
WHICH ARE DESIGNED TO RESTRUCTURE AND RE- CAPITALIZE 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.
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
FIRSTCITY FINANCIAL CORPORATION 4 KEEFE, BRUYETTE & WOODS, INC.
THE RESTRUCTURING:
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
FIRSTCITY FINANCIAL CORPORATION 5 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
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 $4 million guaranty related to
Drive's debt.
FIRSTCITY FINANCIAL CORPORATION 6 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
Summary Balance Sheet & Income Statement
<Table>
<Caption>
AT OR FOR THE YEAR ENDED
DECEMBER 31, 2001
------------------------
ASSETS
Cash 7,395
Contracts held for sale - net 70,447
Investment Securities 77,407
Interest Receivable 1,089
Furniture & Fixtures 6,201
Service Fees Receivable 1,212
Goodwill --
Other Assets 1,820
----------
TOTAL ASSETS 165,571
LIABILITIES
Term Loan 27,500
Notes Payable to Banks 67,165
Other Liabilities 12,910
----------
TOTAL LIABILITIES 107,575
Capital Note 32,000
TOTAL EQUITY 25,996
----------
TOTAL LIABILITIES & EQUITY 165,571
</Table>
<Table>
<Caption>
AT OR FOR THE YEAR ENDED
DECEMBER 31, 2001
------------------------
REVENUES:
Interest Income 33,335
Interest Expense (9,329)
----------
Net Interest Income 24,006
Other Income 439
Gain on Sale 39,033
Impairment of Residual Assets (3,897)
Servicing Fee Income 11,986
----------
Total Revenue 71,567
EXPENSES:
Operating Expenses 45,639
Provisions on Contracts held for sale 5,377
Accounting Policy Change 783
----------
Total Expenses 51,799
INCOME BEFORE PROVISION FOR TAXES 19,768
Other Comprehensive Income (1,800)
----------
COMBINED PRE-TAX INCOME 17,968
Pro Forma Provision for Income Taxes 7,187
----------
PRO FORMA NET INCOME 10,781
</Table>
FIRSTCITY FINANCIAL CORPORATION 7 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
Publicly-Traded Auto Finance Companies
<Table>
<Caption>
MARKET STATS. EPS MULTIPLE - I/B/E/S
------------------ --------------------------------------------------
MARKET
CAPITAL- CHANGE
IZATION STOCK 2001 2002 2001 / PRICE PRICE
STOCK ($ PRICE ACT. EPS EST. EPS 2002 / 01E / 02E
COMPANY NAME SYMBOL STATE millions) ($) ($) ($) (%) (x) (x)
- ------------ ------ ------ --------- ------- -------- ------- ------- ------- -------
SMALL MARKET CAPITALIZATION
Union Acceptance Corporation(1) UACA IN 165 5.35 1.03 0.70 (32)% 5.2 7.6
Consumer Portfolio Services CPSS CA 41 1.85 0.04 nm nm nm nm
Onyx Acceptance Corporation ONYX CA 23 4.56 0.97 1.00 3% 4.7 4.6
First Investors Financial, Inc.(2) FIFS TX 18 3.30 (0.01) 0.32 nm nm 10.3
------- ------- ------- ------- ------- ------- -------
MEDIAN -14% 4.9 7.6
LARGE MARKET CAPITALIZATION
AmeriCredit Corp.(3) ACF TX 3,061 36.29 3.17 4.18 32% 11.4 8.7
WFS Financial, Inc WFSI CA 508 25.39 1.92 2.33 22% 13.2 10.9
Credit Acceptance Corp. CACC MI 467 11.10 0.68 0.76 12% 16.3 14.6
------- ------- ------- ------- ------- ------- -------
MEDIAN 22% 13.2 10.9
DRIVE FINANCIAL SERVICES(4) 80 NA 10.8 NA NM 7.4 NM
<Caption>
OTHER
-----------------------------
GAIN ON
SALE / RESIDUALS / PRICE /
STOCK REVENUE EQUITY BOOK
COMPANY NAME SYMBOL STATE (%) (%) (%)
- ------------ ------ ------ ------- ----------- -------
SMALL MARKET CAPITALIZATION
Union Acceptance Corporation(1) UACA IN 27% 115% 95%
Consumer Portfolio Services CPSS CA 70% 174% 58%
Onyx Acceptance Corporation ONYX CA 35% 293% 37%
First Investors Financial, Inc.(2) FIFS TX 0% 0% 63%
------- ------- -------
MEDIAN 31% 144% 60%
LARGE MARKET CAPITALIZATION
AmeriCredit Corp.(3) ACF TX 38% 110% 248%
WFS Financial, Inc WFSI CA 3% 58% 190%
Credit Acceptance Corp. CACC MI 2% 0% 162%
------- ------- -------
MEDIAN 3% 58% 190%
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
FIRSTCITY FINANCIAL CORPORATION 8 KEEFE, BRUYETTE & WOODS, INC.
SALE OF PARTIAL INTEREST IN DRIVE FINANCIAL SERVICES
Mergers and Acquisitions Involving Auto Finance Companies
<Table>
<Caption>
SELLER'S ANNUAL SELLER'S MGD.
ORIGINATIONS RECEIVABLES
ANN. PURCHASE IN YEAR OF SALE PORTFOLIO
DATE BUYER SELLER PRICE $ MILLIONS $ MILLIONS
- ---------- ------------------------------ ------------------------- --------------- --------------- ------------
11/19/2001 CONSUMER PORTFOLIO SERVICES MFN FINANCIAL CORPORATION $104 MILLION 279 424
11/18/1999 SUSQUEHANNA BANCSHARES HANN FINANCIAL CORP. $35 MILLION NA 800
11/16/1999 ASSOCIATES FIRST CAPITAL CORP. ARCADIA FINANCIAL, LTD. $193 MILLION 2,400 5,300
06/14/1999 FAIRLANE CREDIT, LLC TRIAD FINANCIAL CORP. $105 MILLION(c) 425 511
07/16/1998 CAPITAL ONE FINANCIAL CORP. SUMMIT ACCEPTANCE $55 MILLION NA 260
06/23/1997 NORWEST CORP. FIDELITY ACCEPTANCE $344 MILLION 1,000 1,120
06/01/1997 HOUSEHOLD INTERNATIONAL ACC CONSUMER FINANCE $200 MILLION 484 396
03/29/1996 SOUTHERN NATIONAL CORP. REGIONAL ACCEPTANCE $167 MILLION NA 136
02/05/1996 BAYVIEW CAPITAL CORP. CTL CREDIT, INC. $65 MILLION 133 466
TBD(d) BANK OF SCOTLAND DRIVE FINANCIAL SERVICES $80 MILLION 400 555
<Caption>
SELLER'S PURCHASE PURCHASE PURCHASE PURCHASE PURCHASE
TRAILING PRICE / PRICE / PREMIUM / PRICE / PRICE /
ANN. EARNINGS(a) ANNUAL MANAGED MARKET BOOK TRAILING
DATE BUYER $ MILLIONS ORIGINATIONS RECEIVABLES PRICE VALUE EARNINGS
- ---------- ------------------------------ ----------- ------------ ----------- --------- --------- --------
11/19/2001 CONSUMER PORTFOLIO SERVICES $ 5.1 37% 25% 89% 75% 20.4x
11/18/1999 SUSQUEHANNA BANCSHARES $ 3.4(b) NA 4% NA NA 10.3x
11/16/1999 ASSOCIATES FIRST CAPITAL CORP. $ (6.8) 8% 4% 31% 112% NM
06/14/1999 FAIRLANE CREDIT, LLC $ 12.4 25% 21% NA 144% 8.5x
07/16/1998 CAPITAL ONE FINANCIAL CORP. NA NA 21% NA NA NA
06/23/1997 NORWEST CORP. $ 24.7 20% 31% NA NA 13.9x
06/01/1997 HOUSEHOLD INTERNATIONAL $ 11.0 41% 51% 100% 655% 18.2x
03/29/1996 SOUTHERN NATIONAL CORP. $ 8.8 134% 123% 13% 423% 19.1x
02/05/1996 BAYVIEW CAPITAL CORP. $ 5.2 151% 14% 30% 132% 12.6x
TBD(d) BANK OF SCOTLAND $ 10.8 20% 14% NA 308% 7.4x
</Table>
<Table>
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>
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)
FIRSTCITY FINANCIAL CORPORATION 9 KEEFE, BRUYETTE & WOODS, INC.
THE RESTRUCTURING:
THE EXCHANGE OFFER
FIRSTCITY FINANCIAL CORPORATION 10 KEEFE, BRUYETTE & WOODS, INC.
THE EXCHANGE OFFER
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.
FIRSTCITY FINANCIAL CORPORATION 11 KEEFE, BRUYETTE & WOODS, INC.
THE RESTRUCTURING:
PURCHASE OF 20% INTEREST IN FIRSTCITY HOLDINGS
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.
o Pre-tax income, divided into the FCH valuation implies a 23.9% yield.
FIRSTCITY FINANCIAL CORPORATION 13 KEEFE, BRUYETTE & WOODS, INC.
PURCHASE OF 20% INTEREST IN FIRSTCITY HOLDINGS
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
</Table>
<Table>
<Caption>
AT OR FOR THE YEAR ENDED
DECEMBER 31, 2001
------------------------
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>
FIRSTCITY FINANCIAL CORPORATION 14 KEEFE, BRUYETTE & WOODS, INC.
THE RESTRUCTURING:
DEBT RESTRUCTURING
FIRSTCITY FINANCIAL CORPORATION 15 KEEFE, BRUYETTE & WOODS, INC.
DEBT RESTRUCTURING
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 $5 million New Working Capital Line of Credit.
FIRSTCITY FINANCIAL CORPORATION 16 KEEFE, BRUYETTE & WOODS, INC.
DEBT RESTRUCTURING
Summary Table
($ 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) --
Cash Flow Note -- -- 33 33
Subordinated Convertible Note -- -- 12 12*
Acquisition Line of Credit -- -- -- --**
Working Capital Line of Credit -- -- -- --
COMMERCIAL CORP
Acquisition Facility 4 4 -- 4
Term Facilities 7 7 -- 7
Equity investment facility 30 27 -- 27
------------ ------------ ------------ ------------
Total 98 91 (8) 83
</Table>
* $55 million in availability, collateral specific
** $5 million in availability
FIRSTCITY FINANCIAL CORPORATION 17 KEEFE, BRUYETTE & WOODS, INC.
RESTRUCTURING IMPACT TO FIRSTCITY
FIRSTCITY FINANCIAL CORPORATION 18 KEEFE, BRUYETTE & WOODS, INC.
RESTRUCTURING IMPACT TO FIRSTCITY
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 $1.14, as is price at point of
transaction closings
FIRSTCITY FINANCIAL CORPORATION 19 KEEFE, BRUYETTE & WOODS, INC.
RESTRUCTURING IMPACT TO FIRSTCITY
Pro Forma Balance Sheet Impact of Restructuring
($ 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 -- -- 2,851 -- 10,631
Net Assets of discontinued operations 16,657 -- -- -- -- 16,657
---------- ---------- ---------- ---------- ---------- ----------
Total Assets 138,893 2,807 (9,305) 2,851 -- 135,247
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 16,376 456 -- 35,510
---------- ---------- ---------- ---------- ---------- ----------
Liabilities and Equity 138,893 2,807 (9,305) 2,851 -- 135,247
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)
SALE OF INTEREST IN DRIVE FINANCIAL
<Table>
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
</Table>
EXCHANGE OFFER
<Table>
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 2,788
Debt forgiveness by Preferred holders 14,088
Expenses (500)
----------
Net Change 16,376
</Table>
FIRSTCITY FINANCIAL CORPORATION 21 KEEFE, BRUYETTE & WOODS, INC.
HISTORICAL PREFERRED & COMMON
STOCK PRICES & VOLUMES
FIRSTCITY FINANCIAL CORPORATION 22 KEEFE, BRUYETTE & WOODS, INC.
PREFERRED STOCK PRICE PERFORMANCE: SINCE PREFERRED ISSUANCE
[PERFORMANCE 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* 7/1/1998 21.5 5/18/1999 16.06 3/31/2000 8 2/20/2001 9.94
8/14/1997 22 7/2/1998 21.5 5/19/1999 16.06 4/3/2000 8 2/21/2001 9.94
8/15/1997 22 7/6/1998 21.5 5/20/1999 16.06 4/4/2000 8 2/22/2001 9.94
8/18/1997 22 7/7/1998 21.5 5/21/1999 16.25 4/5/2000 8.13 2/23/2001 9.63
8/19/1997 22 7/8/1998 21.5 5/24/1999 16.25 4/6/2000 8.13 2/26/2001 9.63
8/20/1997 22 7/9/1998 21.5 5/25/1999 16.31 4/7/2000 7.5 2/27/2001 9.63
8/21/1997 22 7/10/1998 21.5 5/26/1999 16.31 4/10/2000 7.63 2/28/2001 9.63
8/22/1997 22 7/13/1998 21.5 5/27/1999 16.06 4/11/2000 7.63 3/1/2001 9.63
8/25/1997 22 7/14/1998 21.5 5/28/1999 16.13 4/12/2000 7.38 3/2/2001 9.63
8/26/1997 22 7/15/1998 20.75 6/1/1999 16.13 4/13/2000 7.38 3/5/2001 9.5
8/27/1997 22 7/16/1998 21 6/2/1999 15.69 4/14/2000 7.38 3/6/2001 9.5
8/28/1997 22 7/17/1998 21 6/3/1999 15.69 4/17/2000 7.52 3/7/2001 9.5
8/29/1997 22 7/20/1998 20.88 6/4/1999 15.69 4/18/2000 7.52 3/8/2001 9.5
9/2/1997 22 7/21/1998 21.75 6/7/1999 15.69 4/19/2000 8 3/9/2001 8.75
9/3/1997 22 7/22/1998 21 6/8/1999 15.88 4/20/2000 8 3/12/2001 7.06
9/4/1997 22 7/23/1998 21 6/9/1999 15.69 4/24/2000 8 3/13/2001 7.63
9/5/1997 23.25 7/24/1998 21.5 6/10/1999 15 4/25/2000 8 3/14/2001 8
9/8/1997 23.25 7/27/1998 22 6/11/1999 15.88 4/26/2000 8 3/15/2001 8
9/9/1997 23.25 7/28/1998 22.5 6/14/1999 15.38 4/27/2000 8 3/16/2001 8
9/10/1997 23.25 7/29/1998 22.5 6/15/1999 15.38 4/28/2000 9.25 3/19/2001 8
9/11/1997 23.25 7/30/1998 22.5 6/16/1999 15.38 5/1/2000 9.25 3/20/2001 8
9/12/1997 23.25 7/31/1998 21.75 6/17/1999 15.75 5/2/2000 7.03 3/21/2001 8
9/15/1997 23.25 8/3/1998 21.75 6/18/1999 15 5/3/2000 6.16 3/22/2001 8
9/16/1997 23.25 8/4/1998 21.75 6/21/1999 15.63 5/4/2000 6.97 3/23/2001 8
9/17/1997 23.25 8/5/1998 21.75 6/22/1999 15.5 5/5/2000 6.97 3/26/2001 8
9/18/1997 23.5 8/6/1998 21.75 6/23/1999 15.5 5/8/2000 6.13 3/27/2001 8
9/19/1997 23.5 8/7/1998 21.75 6/24/1999 15.63 5/9/2000 6.13 3/28/2001 8
9/22/1997 23.5 8/10/1998 21.75 6/25/1999 15.63 5/10/2000 6.13 3/29/2001 8
9/23/1997 23.5 8/11/1998 21.75 6/28/1999 15.69 5/11/2000 6.13 3/30/2001 8.06
9/24/1997 23.5 8/12/1998 22.25 6/29/1999 15.69 5/12/2000 6.13 4/2/2001 8.06
9/25/1997 23.5 8/13/1998 22.25 6/30/1999 15.75 5/15/2000 6.13 4/3/2001 7.5
9/26/1997 23.5 8/14/1998 21.5 7/1/1999 15.75 5/16/2000 5.25 4/4/2001 8
9/29/1997 22 8/17/1998 22.75 7/2/1999 15.75 5/17/2000 5.25 4/5/2001 7.88
9/30/1997 22 8/18/1998 22.75 7/6/1999 15.69 5/18/2000 5.25 4/9/2001 7.88
10/1/1997 22 8/19/1998 22.75 7/7/1999 15.69 5/19/2000 5.75 4/10/2001 7.88
10/2/1997 22 8/20/1998 21.75 7/8/1999 15.63 5/22/2000 5 4/11/2001 7.88
10/3/1997 21.75 8/21/1998 22 7/9/1999 15.25 5/23/2000 4.38 4/17/2001 8
10/6/1997 21.75 8/24/1998 21.38 7/12/1999 15.25 5/24/2000 4.38 4/18/2001 8
10/7/1997 21.75 8/25/1998 21.38 7/13/1999 15.38 5/25/2000 5.5 4/19/2001 8
10/8/1997 21.75 8/26/1998 21.38 7/14/1999 15.38 5/26/2000 5.75 4/20/2001 8
10/9/1997 21.75 8/27/1998 21.5 7/15/1999 15.38 5/30/2000 5.75 4/23/2001 8
10/10/1997 21.75 8/28/1998 21.5 7/16/1999 15.38 5/31/2000 5.75 4/24/2001 8
10/13/1997 21.75 8/31/1998 21.5 7/19/1999 15.19 6/1/2000 6.5 4/26/2001 8
10/14/1997 21.75 9/1/1998 20.5 7/20/1999 15.19 6/2/2000 7.75 4/27/2001 8.74
10/15/1997 21.75 9/2/1998 22 7/21/1999 15.06 6/5/2000 7.75 4/30/2001 8.74
10/16/1997 21.75 9/3/1998 22 7/22/1999 15.06 6/6/2000 7.44 5/1/2001 8.74
10/17/1997 21.75 9/4/1998 21.5 7/23/1999 15.06 6/7/2000 7.75 5/2/2001 7.85
10/20/1997 21.75 9/8/1998 21 7/26/1999 14.88 6/8/2000 7.75 5/3/2001 7.85
10/21/1997 21.75 9/9/1998 20.38 7/27/1999 14.88 6/9/2000 7.88 5/7/2001 7.85
10/22/1997 21.75 9/10/1998 18.25 7/28/1999 14.88 6/12/2000 8 5/8/2001 8
10/23/1997 21.75 9/11/1998 18.25 7/29/1999 14.88 6/13/2000 7.94 5/9/2001 8
10/24/1997 21.75 9/14/1998 19 7/30/1999 14.88 6/14/2000 7.94 5/10/2001 8
10/27/1997 21.75 9/15/1998 19 8/2/1999 15 6/15/2000 7.94 5/11/2001 8
10/28/1997 22 9/16/1998 19 8/3/1999 14.88 6/16/2000 8 5/14/2001 8.25
10/29/1997 22 9/17/1998 18.38 8/4/1999 14.81 6/19/2000 8 5/15/2001 8.12
10/30/1997 23 9/18/1998 18.5 8/5/1999 15 6/20/2000 8 5/16/2001 8.12
10/31/1997 21.75 9/21/1998 18.5 8/6/1999 15 6/21/2000 8 5/17/2001 8.12
11/3/1997 21.5 9/22/1998 18.5 8/9/1999 14.88 6/22/2000 8 5/18/2001 8.05
11/4/1997 21.5 9/23/1998 19 8/10/1999 14.88 6/23/2000 8 5/21/2001 8.11
11/5/1997 21.5 9/24/1998 19 8/11/1999 13.13 6/26/2000 8 5/22/2001 8.11
11/6/1997 21.63 9/25/1998 19 8/12/1999 11.38* 6/27/2000 7 5/23/2001 8.11
11/7/1997 21.75 9/28/1998 19 8/13/1999 6 6/28/2000 7 5/24/2001 8.11
11/10/1997 21.75 9/29/1998 18.75 8/16/1999 7.19 6/29/2000 7 5/25/2001 8.25
11/11/1997 21.75 9/30/1998 18.75 8/17/1999 8.25 6/30/2000 8.75 5/29/2001 8.25
11/12/1997 21.75 10/1/1998 18.75 8/18/1999 8 7/3/2000 8.25 5/30/2001 8.25
11/13/1997 21.13 10/2/1998 18.75 8/19/1999 8 7/5/2000 9 5/31/2001 8.25
11/14/1997 21 10/5/1998 18.75 8/20/1999 8 7/6/2000 9 6/1/2001 8.25
11/17/1997 21.5 10/6/1998 18 8/23/1999 7.75 7/7/2000 8.5 6/4/2001 8.25
11/18/1997 21.5 10/7/1998 18 8/24/1999 7.13 7/10/2000 8.63 6/5/2001 8.25
11/19/1997 21.5 10/8/1998 14.69 8/25/1999 7 7/11/2000 8.63 6/6/2001 8.25
11/20/1997 22.5 10/9/1998 16 8/26/1999 5.5 7/12/2000 8.5 6/8/2001 8.38
11/21/1997 22 10/12/1998 15.25 8/27/1999 6.25 7/13/2000 8.5 6/11/2001 8.38
11/24/1997 22 10/13/1998 15.25 8/30/1999 5.25 7/14/2000 8.5 6/12/2001 8.38
11/25/1997 22 10/14/1998 15.25 8/31/1999 5.5 7/17/2000 8.5 6/13/2001 8.37
11/26/1997 21.5 10/15/1998 16.5 9/1/1999 5 7/18/2000 8.63 6/15/2001 8.37
11/28/1997 21.5 10/16/1998 17.13 9/2/1999 7 7/19/2000 8.63 6/19/2001 8.37
12/1/1997 21.13 10/19/1998 17.25 9/3/1999 7 7/20/2000 8.63 6/20/2001 8.38
12/2/1997 21.13 10/20/1998 17.25 9/7/1999 6.81 7/21/2000 9.13 6/21/2001 8.38
12/3/1997 21.13 10/21/1998 17.5 9/8/1999 6.75 7/24/2000 9 6/25/2001 8.5
12/4/1997 21.5 10/22/1998 17 9/9/1999 7.88 7/25/2000 9 6/26/2001 7.75
12/5/1997 21.5 10/23/1998 17 9/10/1999 7 7/26/2000 9 6/27/2001 8.45
12/8/1997 21.5 10/26/1998 17.75 9/13/1999 7 7/27/2000 8.88 6/28/2001 8.25
12/9/1997 21.5 10/27/1998 17.75 9/14/1999 6.88 7/28/2000 8.88 6/29/2001 8.25
12/10/1997 21.5 10/28/1998 15.5 9/15/1999 7.25 7/31/2000 8.88 7/2/2001 8.25
12/11/1997 21.5 10/29/1998 15 9/16/1999 5.75 8/1/2000 10.75 7/3/2001 8.25
12/12/1997 21.5 11/3/1998 16 9/17/1999 6 8/2/2000 8.5 7/6/2001 8.25
12/15/1997 21 11/2/1998 16 9/20/1999 6.13 8/3/2000 8.5 7/9/2001 8.25
12/16/1997 21.5 11/3/1998 16 9/21/1999 7.63 8/4/2000 9.75 7/10/2001 7.75
12/17/1997 21.5 11/4/1998 16 9/22/1999 7.19 8/7/2000 9.25 7/11/2001 7.5
12/18/1997 21.5 11/5/1998 16 9/23/1999 7.63 8/8/2000 9.25 7/12/2001 8
12/19/1997 21.63 11/6/1998 16 9/24/1999 5.5 8/9/2000 9.25 7/13/2001 8
12/22/1997 22 11/9/1998 16 9/27/1999 6 8/10/2000 9.25 7/16/2001 8.1
12/23/1997 22.5 11/10/1998 17 9/28/1999 5.88 8/11/2000 9 7/17/2001 8.1
12/24/1997 22.5 11/11/1998 16 9/29/1999 5.5 8/14/2000 10.25 7/18/2001 8.24
12/26/1997 21.25 11/12/1998 15.5 9/30/1999 5.5 8/15/2000 10.5 7/19/2001 8.24
12/29/1997 21.75 11/13/1998 15.5 10/1/1999 6.25 8/16/2000 9.5 7/20/2001 8.24
12/30/1997 21.75 11/16/1998 15.5 10/4/1999 6 8/17/2000 9 7/23/2001 8.24
12/31/1997 21.75 11/17/1998 15.5 10/5/1999 6 8/18/2000 9.25 7/25/2001 8.24
1/2/1998 21.75 11/18/1998 15.5 10/6/1999 6.25 8/21/2000 9.25 7/26/2001 7.5
1/5/1998 22 11/19/1998 15.75 10/7/1999 6.44 8/22/2000 9.25 7/27/2001 7.5
1/6/1998 22 11/20/1998 15.75 10/8/1999 6.44 8/23/2000 10 7/31/2001 7.5
1/7/1998 22 11/23/1998 15.06 10/11/1999 6.44 8/24/2000 10 8/1/2001 7.5
1/8/1998 22.19 11/24/1998 15.38 10/12/1999 6.38 8/25/2000 10 8/2/2001 7.5
1/9/1998 22.25 11/25/1998 15.5 10/13/1999 6.38 8/28/2000 9.94 8/3/2001 7.5
1/12/1998 22.31 11/27/1998 15.06 10/14/1999 6.38 8/29/2000 9.25 8/7/2001 7.5
1/13/1998 22.31 11/30/1998 15.5 10/15/1999 6.44 8/30/2000 9.25 8/8/2001 7.5
1/14/1998 23.25 12/1/1998 15 10/18/1999 7.44 8/31/2000 10.5 8/9/2001 8.5
1/15/1998 23.25 12/2/1998 15.5 10/19/1999 6.38 9/1/2000 10.5 8/10/2001 7.5
1/16/1998 23.25 12/3/1998 16 10/20/1999 6.38 9/5/2000 10.5 8/13/2001 8.25
1/20/1998 23.25 12/4/1998 17 10/21/1999 7.25 9/6/2000 10.25 8/14/2001 8.25
1/21/1998 23.25 12/7/1998 17.5 10/22/1999 7.44 9/7/2000 10 8/15/2001 8.25
1/22/1998 22.5 12/8/1998 17.25 10/25/1999 7.44 9/8/2000 11.75 8/16/2001 8.5
1/23/1998 21.75 12/9/1998 18 10/26/1999 7 9/11/2000 11.75 8/17/2001 8.5
1/27/1998 22 12/10/1998 18 10/27/1999 7.38 9/12/2000 11.88 8/20/2001 8.5
1/28/1998 22 12/11/1998 18 10/28/1999 7.13 9/13/2000 11.88 8/21/2001 8.5
1/29/1998 22 12/14/1998 18.75 10/29/1999 7.44 9/14/2000 11.88 8/22/2001 8.5
1/30/1998 22 12/15/1998 18.75 11/1/1999 7.44 9/15/2000 11.88 8/23/2001 8.5
2/2/1998 22 12/16/1998 17.5 11/2/1999 7.44 9/18/2000 10 8/24/2001 8.5
2/3/1998 22 12/17/1998 18.5 11/3/1999 7.38 9/19/2000 10 8/27/2001 8.5
2/4/1998 22 12/18/1998 18 11/4/1999 7.44 9/20/2000 10 8/28/2001 8.5
2/5/1998 22 12/21/1998 18 11/5/1999 7.44 9/21/2000 11 8/29/2001 8.5
2/6/1998 22 12/22/1998 18 11/8/1999 7.44 9/22/2000 11 8/30/2001 8.5
2/9/1998 22 12/23/1998 17.75 11/9/1999 7.44 9/25/2000 10.06 8/31/2001 7.72
2/10/1998 22 12/24/1998 19 11/10/1999 7.94 9/26/2000 10.06 9/4/2001 8
2/11/1998 21.75 12/28/1998 19 11/11/1999 7.94 9/27/2000 10.06 9/5/2001 7.72
2/12/1998 21.75 12/29/1998 19 11/12/1999 8.63 9/28/2000 10.06 9/6/2001 7.95
2/13/1998 22 12/30/1998 19 11/15/1999 8.25 9/29/2000 10.06 9/7/2001 8.12
2/17/1998 22 12/31/1998 18.13 11/16/1999 8.25 10/2/2000 10.06 9/10/2001 8.12
2/18/1998 22 1/4/1999 18.5 11/17/1999 8.38 10/3/2000 11 9/17/2001 8
2/19/1998 22.5 1/5/1999 18 11/18/1999 7.5 10/4/2000 10.06 9/18/2001 8
2/20/1998 22.5 1/6/1999 18 11/19/1999 7.5 10/5/2000 10.06 9/19/2001 7.65
2/23/1998 22.75 1/7/1999 18.75 11/22/1999 7.5 10/6/2000 10.06 9/20/2001 7.5
2/24/1998 22 1/8/1999 18.88 11/23/1999 9 10/9/2000 10.06 9/21/2001 6.5
2/25/1998 22 1/11/1999 19 11/24/1999 9 10/10/2000 10.75 9/24/2001 6.5
2/26/1998 22 1/12/1999 19 11/26/1999 9 10/11/2000 10.25 9/25/2001 6.5
2/27/1998 22.38 1/13/1999 18.88 11/29/1999 6.5 10/12/2000 10.06 9/26/2001 6.5
3/2/1998 22.38 1/14/1999 19 11/30/1999 7.13 10/13/2000 10.06 9/27/2001 6.5
3/3/1998 22.5 1/15/1999 19 12/1/1999 7.13 10/16/2000 11 9/28/2001 8
3/4/1998 22.5 1/19/1999 19.25 12/2/1999 7.5 10/17/2000 11 10/1/2001 8
3/5/1998 22.5 1/20/1999 19 12/3/1999 7.5 10/18/2000 10.06 10/2/2001 8
3/6/1998 22.5 1/21/1999 19 12/6/1999 7.63 10/19/2000 10.06 10/3/2001 8
3/9/1998 22.5 1/22/1999 18.5 12/7/1999 8.25 10/20/2000 10.06 10/4/2001 8
3/10/1998 22.19 1/25/1999 20 12/8/1999 7.5 10/23/2000 10.25 10/5/2001 8
3/11/1998 22.38 1/26/1999 18.44 12/9/1999 7.75 10/24/2000 10.25 10/8/2001 8
3/12/1998 22.38 1/27/1999 18.44 12/10/1999 7.5 10/25/2000 10.25 10/9/2001 8
3/13/1998 22.44 1/28/1999 18.44 12/13/1999 7.5 10/26/2000 10.25 10/10/2001 8.63
3/16/1998 22.13 1/29/1999 18.44 12/14/1999 7.5 10/27/2000 10.25 10/12/2001 8.45
3/17/1998 22.25 2/1/1999 18.44 12/15/1999 7.5 10/30/2000 10.5 10/15/2001 7.6
3/18/1998 22.13 2/2/1999 18.44 12/16/1999 7.5 10/31/2000 10.5 10/16/2001 8
3/19/1998 22.13 2/3/1999 18.75 12/17/1999 7.5 11/1/2000 10.5 10/17/2001 7.75
3/20/1998 22.13 2/4/1999 18.75 12/20/1999 6.75 11/2/2000 9.92 10/19/2001 7.75
3/23/1998 22.13 2/5/1999 18.75 12/21/1999 6.75 11/3/2000 9.63 10/22/2001 7.75
3/24/1998 22.13 2/8/1999 19.63 12/22/1999 9 11/6/2000 10 10/23/2001 7.75
3/25/1998 22.75 2/9/1999 19.5 12/23/1999 9 11/7/2000 9.94 10/25/2001 7.75
3/26/1998 22.5 2/10/1999 19.63 12/27/1999 7 11/8/2000 10 10/26/2001 8
3/27/1998 22.5 2/11/1999 19.63 12/28/1999 6.88 11/9/2000 10.2 10/29/2001 7.75
3/30/1998 22.75 2/12/1999 19.5 12/29/1999 8.5 11/10/2000 10.25 10/30/2001 7.75
3/31/1998 22.63 2/16/1999 19.5 12/30/1999 9 11/13/2000 10.06 10/31/2001 7.75
4/1/1998 22.25 2/17/1999 19.5 12/31/1999 9.63 11/14/2000 10.06 11/1/2001 7.75
4/2/1998 22.25 2/18/1999 19.5 1/3/2000 9.75 11/15/2000 10.06 11/2/2001 7.75
4/3/1998 22.25 2/19/1999 18.31 1/4/2000 9.75 11/16/2000 9.94 11/5/2001 7.75
4/6/1998 22.25 2/22/1999 18.31 1/5/2000 9.75 11/17/2000 9.94 11/6/2001 7.75
4/7/1998 22.13 2/23/1999 18 1/6/2000 9.75 11/20/2000 9.94 11/7/2001 7
4/8/1998 22.13 2/24/1999 17.69 1/7/2000 9.94 11/21/2000 10.14 11/8/2001 7.12
4/9/1998 23.88 2/25/1999 17.69 1/10/2000 9.94 11/22/2000 10.14 11/12/2001 7.11
4/13/1998 23.88 2/26/1999 19 1/11/2000 9.94 11/24/2000 10.14 11/13/2001 7.11
4/14/1998 21.88 3/1/1999 19 1/12/2000 9.94 11/27/2000 9.88 11/14/2001 7.1
4/15/1998 21.88 3/2/1999 19 1/13/2000 9.94 11/28/2000 10.14 11/15/2001 7.48
4/16/1998 23.75 3/3/1999 18.13 1/14/2000 11 11/29/2000 10.25 11/16/2001 7.17
4/17/1998 23.75 3/4/1999 18.13 1/18/2000 11 11/30/2000 10.25 11/20/2001 7.17
4/20/1998 23.75 3/5/1999 18.13 1/19/2000 11 12/1/2000 10.25 11/21/2001 7.4
4/21/1998 23.75 3/8/1999 18 1/20/2000 10.38 12/4/2000 10.25 11/26/2001 7.02
4/22/1998 23.75 3/9/1999 17.75 1/21/2000 9.25 12/5/2000 10.2 11/27/2001 7.12
4/23/1998 23.75 3/10/1999 17.38 1/24/2000 9.25 12/6/2000 10.2 11/28/2001 7.12
4/24/1998 22.25 3/11/1999 17.38 1/25/2000 9.25 12/7/2000 10.2 11/29/2001 7.12
4/27/1998 22.25 3/12/1999 17.38 1/26/2000 10.13 12/8/2000 10.25 12/3/2001 7.12
4/28/1998 22.25 3/15/1999 17.5 1/27/2000 10.13 12/11/2000 10.25 12/4/2001 7.12
4/29/1998 22.5 3/16/1999 20 1/28/2000 10.13 12/12/2000 10.25 12/5/2001 7.12
4/30/1998 22.5 3/17/1999 20.75 1/31/2000 9.75 12/13/2000 10.44 12/6/2001 7.12
5/1/1998 23.25 3/18/1999 20.75 2/1/2000 9.25 12/14/2000 10.25 12/7/2001 7.12
5/4/1998 23.5 3/19/1999 18.25 2/2/2000 9.25 12/15/2000 10.19 12/10/2001 7.42
5/5/1998 22.5 3/22/1999 18.13 2/3/2000 8 12/18/2000 10.5 12/11/2001 7.45
5/6/1998 22.5 3/23/1999 18.13 2/4/2000 10.13 12/19/2000 10.5 12/12/2001 7.45
5/7/1998 22.5 3/24/1999 19.75 2/7/2000 10.13 12/20/2000 10.25 12/13/2001 7.45
5/8/1998 23.75 3/25/1999 20 2/8/2000 10.38 12/21/2000 10.19 12/14/2001 7.45
5/11/1998 23.75 3/26/1999 20 2/9/2000 9.25 12/22/2000 10.19 12/17/2001 7.43
5/12/1998 22.5 3/29/1999 17.5 2/10/2000 9.5 12/26/2000 9.06 12/18/2001 7.43
5/13/1998 22.88 3/30/1999 18.06 2/11/2000 9.75 12/27/2000 9.06 12/19/2001 7.43
5/14/1998 22.88 3/31/1999 18.06 2/14/2000 9.5 12/28/2000 9.5 12/20/2001 7.51
5/15/1998 22.88 4/1/1999 18 2/15/2000 9.25 12/29/2000 9.5 12/21/2001 7.51
5/18/1998 22.88 4/5/1999 18 2/16/2000 9.75 1/2/2001 9.63 12/24/2001 7.51
5/19/1998 22.88 4/6/1999 18.25 2/17/2000 9.88 1/3/2001 9.63 12/26/2001 7.4
5/20/1998 22.88 4/7/1999 17.44 2/18/2000 9.5 1/4/2001 9.63 12/27/2001 7.25
5/21/1998 22.88 4/8/1999 17.38 2/22/2000 9.25 1/5/2001 10.13 12/28/2001 7.4
5/22/1998 22.88 4/9/1999 17.38 2/23/2000 9.25 1/8/2001 10.13 12/31/2001 7.4
5/26/1998 23.5 4/12/1999 17.38 2/24/2000 9.38 1/10/2001 9.75 1/2/2002 8
5/27/1998 22.5 4/13/1999 17.38 2/25/2000 9 1/11/2001 10 1/3/2002 8
5/28/1998 23 4/14/1999 17.38 2/28/2000 8.75 1/16/2001 10.19 1/4/2002 9.25
5/29/1998 22.75 4/15/1999 17.5 2/29/2000 9 1/17/2001 10.31 1/7/2002 8.7
6/1/1998 23 4/16/1999 18.13 3/1/2000 9.25 1/18/2001 10.31 1/8/2002 8.7
6/2/1998 22.75 4/19/1999 17.5 3/2/2000 9.38 1/19/2001 10.25 1/14/2002 8.61
6/3/1998 22.75 4/20/1999 17.75 3/3/2000 9.38 1/22/2001 10.25 1/15/2002 8.61
6/4/1998 22.63 4/21/1999 17.94 3/6/2000 9.38 1/23/2001 10 1/17/2002 8.61
6/5/1998 22.63 4/22/1999 17.56 3/7/2000 9.38 1/24/2001 10 1/18/2002 8.61
6/8/1998 22.63 4/23/1999 17.56 3/8/2000 9.56 1/25/2001 10 1/22/2002 8.61
6/9/1998 22.63 4/26/1999 16.88 3/9/2000 9.13 1/26/2001 10 1/23/2002 8.61
6/10/1998 22 4/27/1999 17.56 3/10/2000 9.13 1/29/2001 10 1/24/2002 7.75
6/11/1998 22 4/28/1999 17.56 3/13/2000 8.5 1/30/2001 10 1/25/2002 7.6***
6/12/1998 22 4/29/1999 17.88 3/14/2000 8.5 1/31/2001 9.38
6/15/1998 22 4/30/1999 17.88 3/15/2000 8.5 2/1/2001 10
6/16/1998 23 5/3/1999 17.88 3/16/2000 8.25 2/2/2001 10
6/17/1998 23 5/4/1999 17.06 3/17/2000 8.38 2/5/2001 10
6/18/1998 23 5/5/1999 17 3/20/2000 8.25 2/6/2001 10
6/19/1998 23 5/6/1999 17 3/21/2000 8 2/7/2001 10
6/22/1998 23 5/7/1999 17 3/22/2000 8 2/8/2001 10
6/23/1998 21.88 5/10/1999 17 3/23/2000 7 2/9/2001 10
6/24/1998 22 5/11/1999 16.25 3/24/2000 7.56 2/12/2001 10
6/25/1998 21.88 5/12/1999 16 3/27/2000 7.88 2/13/2001 10
6/26/1998 21.5 5/13/1999 16.06 3/28/2000 7.88 2/14/2001 10
6/29/1998 21.5 5/14/1999 16.06 3/29/2000 7.88 2/15/2001 10
6/30/1998 21.5 5/17/1999 16.38 3/30/2000 7.88 2/16/2001 9.94
</Table>
* CURRENT PREFERRED ISSUED BY FCFC
** PREFERRED DIVIDEND SUSPENDED BY FCFC
*** $7.10 IS LAST TRADE OF FCFCO
FIRSTCITY FINANCIAL CORPORATION 23 KEEFE, BRUYETTE & WOODS, INC.
PREFERRED STOCK PRICE PERFORMANCE: DAILY VOLUME
[PERFORMANCE GRAPH]
OUT OF A POSSIBLE 1,203 TRADING DAYS SINCE
THE PREFERRED WAS ISSUED, IT TRADED NO
VOLUME ON 554 OF THOSE DAYS
<Table>
<Caption>
FCFCO FCFCO FCFCO FCFCO
Preferred Preferred Preferred Preferred
Date Stock Date Stock Date Stock Date Stock
- ---- --------- ---- --------- ---- --------- ---- ---------
8/13/1997 400 1/1/1999 0 5/23/2000 7400 10/11/2001 0
8/14/1997 300 1/4/1999 400 5/24/2000 0 10/12/2001 1000
8/15/1997 0 1/5/1999 2400 5/25/2000 3500 10/15/2001 3800
8/18/1997 0 1/6/1999 0 5/26/2000 1600 10/16/2001 900
8/19/1997 0 1/7/1999 200 5/29/2000 0 10/17/2001 900
8/20/1997 0 1/8/1999 200 5/30/2000 0 10/18/2001 0
8/21/1997 0 1/11/1999 4200 5/31/2000 0 10/19/2001 300
8/22/1997 0 1/12/1999 0 6/1/2000 200 10/22/2001 0
8/25/1997 0 1/13/1999 1400 6/2/2000 12000 10/23/2001 0
8/26/1997 1000 1/14/1999 400 6/5/2000 0 10/24/2001 0
8/27/1997 0 1/15/1999 0 6/6/2000 10300 10/25/2001 0
8/28/1997 0 1/18/1999 0 6/7/2000 8000 10/26/2001 200
8/29/1997 0 1/19/1999 500 6/8/2000 0 10/29/2001 400
9/1/1997 0 1/20/1999 600 6/9/2000 4600 10/30/2001 0
9/2/1997 0 1/21/1999 6100 6/12/2000 2400 10/31/2001 0
9/3/1997 0 1/22/1999 1100 6/13/2000 2000 11/1/2001 0
9/4/1997 0 1/25/1999 4500 6/14/2000 0 11/2/2001 0
9/5/1997 300 1/26/1999 3500 6/15/2000 0 11/5/2001 0
9/8/1997 2300 1/27/1999 0 6/16/2000 1700 11/6/2001 0
9/9/1997 200 1/28/1999 0 6/19/2000 0 11/7/2001 500
9/10/1997 0 1/29/1999 0 6/20/2000 0 11/8/2001 1000
9/11/1997 0 2/1/1999 0 6/21/2000 0 11/9/2001 0
9/12/1997 0 2/2/1999 0 6/22/2000 0 11/12/2001 100
9/15/1997 500 2/3/1999 500 6/23/2000 0 11/13/2001 0
9/16/1997 0 2/4/1999 0 6/26/2000 4000 11/14/2001 15600
9/17/1997 300 2/5/1999 0 6/27/2000 5600 11/15/2001 8200
9/18/1997 2300 2/8/1999 200 6/28/2000 2800 11/16/2001 200
9/19/1997 200 2/9/1999 200 6/29/2000 0 11/19/2001 0
9/22/1997 0 2/10/1999 3000 6/30/2000 1200 11/20/2001 0
9/23/1997 0 2/11/1999 1000 7/3/2000 800 11/21/2001 200
9/24/1997 0 2/12/1999 1600 7/4/2000 0 11/22/2001 0
9/25/1997 0 2/15/1999 0 7/5/2000 1200 11/23/2001 0
9/26/1997 0 2/16/1999 3400 7/6/2000 0 11/26/2001 7900
9/29/1997 1000 2/17/1999 0 7/7/2000 1900 11/27/2001 900
9/30/1997 1000 2/18/1999 0 7/10/2000 1500 11/28/2001 0
10/1/1997 0 2/19/1999 400 7/11/2000 0 11/29/2001 0
10/2/1997 0 2/22/1999 0 7/12/2000 2200 11/30/2001 0
10/3/1997 1400 2/23/1999 2900 7/13/2000 0 12/3/2001 0
10/6/1997 0 2/24/1999 3000 7/14/2000 0 12/4/2001 0
10/7/1997 0 2/25/1999 500 7/17/2000 0 12/5/2001 0
10/8/1997 0 2/26/1999 500 7/18/2000 800 12/6/2001 0
10/9/1997 0 3/1/1999 0 7/19/2000 2000 12/7/2001 0
10/10/1997 0 3/2/1999 800 7/20/2000 3000 12/10/2001 400
10/13/1997 100 3/3/1999 2500 7/21/2000 6200 12/11/2001 800
10/14/1997 0 3/4/1999 0 7/24/2000 3000 12/12/2001 0
10/15/1997 0 3/5/1999 1000 7/25/2000 0 12/13/2001 2100
10/16/1997 0 3/8/1999 3000 7/26/2000 0 12/14/2001 1700
10/17/1997 0 3/9/1999 100 7/27/2000 3600 12/17/2001 500
10/20/1997 200 3/10/1999 300 7/28/2000 7000 12/18/2001 0
10/21/1997 0 3/11/1999 700 7/31/2000 0 12/19/2001 2700
10/22/1997 0 3/12/1999 0 8/1/2000 800 12/20/2001 2100
10/23/1997 0 3/15/1999 2400 8/2/2000 6900 12/21/2001 1000
10/24/1997 0 3/16/1999 4800 8/3/2000 0 12/24/2001 1000
10/27/1997 300 3/17/1999 1200 8/4/2000 2000 12/25/2001 0
10/28/1997 200 3/18/1999 0 8/7/2000 300 12/26/2001 1500
10/29/1997 0 3/19/1999 4200 8/8/2000 0 12/27/2001 700
10/30/1997 100 3/22/1999 3000 8/9/2000 0 12/28/2001 8400
10/31/1997 2000 3/23/1999 0 8/10/2000 0 12/31/2001 0
11/3/1997 500 3/24/1999 3000 8/11/2000 1700 1/1/2002 0
11/4/1997 700 3/25/1999 1000 8/14/2000 11300 1/2/2002 1000
11/5/1997 0 3/26/1999 0 8/15/2000 2500 1/3/2002 0
11/6/1997 600 3/29/1999 500 8/16/2000 2000 1/4/2002 6300
11/7/1997 600 3/30/1999 1200 8/17/2000 400 1/7/2002 7300
11/10/1997 500 3/31/1999 0 8/18/2000 3300 1/8/2002 0
11/11/1997 400 4/1/1999 200 8/21/2000 1900 1/9/2002 0
11/12/1997 1000 4/2/1999 0 8/22/2000 2500 1/10/2002 0
11/13/1997 2400 4/5/1999 0 8/23/2000 400 1/11/2002 0
11/14/1997 1900 4/6/1999 2600 8/24/2000 0 1/14/2002 300
11/17/1997 1000 4/7/1999 400 8/25/2000 0 1/15/2002 0
11/18/1997 0 4/8/1999 12500 8/28/2000 6800 1/16/2002 0
11/19/1997 0 4/9/1999 0 8/29/2000 100 1/17/2002 0
11/20/1997 1800 4/12/1999 0 8/30/2000 0 1/18/2002 0
11/21/1997 3300 4/13/1999 600 8/31/2000 6300 1/21/2002 0
11/24/1997 0 4/14/1999 0 9/1/2000 0 1/22/2002 0
11/25/1997 0 4/15/1999 1000 9/4/2000 0 1/23/2002 0
11/26/1997 10000 4/16/1999 500 9/5/2000 0 1/24/2002 2500
11/27/1997 0 4/19/1999 3100 9/6/2000 3400 1/25/2002 5500
11/28/1997 0 4/20/1999 1100 9/7/2000 9800 1/28/2002 0
12/1/1997 55400 4/21/1999 2800 9/8/2000 4500 1/29/2002 5000
12/2/1997 0 4/22/1999 1000 9/11/2000 0 1/30/2002 1200
12/3/1997 0 4/23/1999 0 9/12/2000 1100 1/31/2002 2400
12/4/1997 1400 4/26/1999 200 9/13/2000 0 2/1/2002 0
12/5/1997 0 4/27/1999 500 9/14/2000 0 2/4/2002 1700
12/8/1997 0 4/28/1999 2100 9/15/2000 0 2/5/2002 400
12/9/1997 0 4/29/1999 1100 9/18/2000 200 2/6/2002 2400
12/10/1997 0 4/30/1999 0 9/19/2000 0 2/7/2002 700
12/11/1997 1400 5/3/1999 0 9/20/2000 0 2/8/2002 0
12/12/1997 0 5/4/1999 500 9/21/2000 800 2/11/2002 0
12/15/1997 700 5/5/1999 11500 9/22/2000 0 2/12/2002 0
12/16/1997 2000 5/6/1999 0 9/25/2000 200 2/13/2002 0
12/17/1997 0 5/7/1999 0 9/26/2000 0 2/14/2002 0
12/18/1997 3000 5/10/1999 0 9/27/2000 0 2/15/2002 0
12/19/1997 2300 5/11/1999 9800 9/28/2000 0 2/18/2002 0
12/22/1997 3000 5/12/1999 2200 9/29/2000 0 2/19/2002 0
12/23/1997 900 5/13/1999 2400 10/2/2000 0 2/20/2002 0
12/24/1997 0 5/14/1999 0 10/3/2000 600 2/21/2002 0
12/25/1997 0 5/17/1999 600 10/4/2000 100 2/22/2002 0
12/26/1997 700 5/18/1999 1000 10/5/2000 0 2/25/2002 0
12/29/1997 500 5/19/1999 0 10/6/2000 0 2/26/2002 0
12/30/1997 2700 5/20/1999 0 10/9/2000 2400 2/27/2002 0
12/31/1997 0 5/21/1999 4100 10/10/2000 300 2/28/2002 0
1/1/1998 0 5/24/1999 0 10/11/2000 1100 3/1/2002 0
1/2/1998 500 5/25/1999 300 10/12/2000 400 3/4/2002 0
1/5/1998 500 5/26/1999 0 10/13/2000 100 3/5/2002 1500
1/6/1998 1700 5/27/1999 7200 10/16/2000 200 3/6/2002 0
1/7/1998 0 5/28/1999 200 10/17/2000 0 3/7/2002 0
1/8/1998 500 5/31/1999 0 10/18/2000 200 3/8/2002 0
1/9/1998 6000 6/1/1999 2200 10/19/2000 0 3/11/2002 0
1/12/1998 1500 6/2/1999 500 10/20/2000 0 3/12/2002 1200
1/13/1998 0 6/3/1999 0 10/23/2000 7700 3/13/2002 0
1/14/1998 500 6/4/1999 3000 10/24/2000 3000 3/14/2002 0
1/15/1998 300 6/7/1999 0 10/25/2000 0 3/15/2002 0
1/16/1998 0 6/8/1999 6500 10/26/2000 0 3/18/2002 0
1/19/1998 0 6/9/1999 200 10/27/2000 0 3/19/2002 1000
1/20/1998 0 6/10/1999 200 10/30/2000 1000 3/20/2002 100
1/21/1998 50100 6/11/1999 2400 10/31/2000 0 3/21/2002 0
1/22/1998 4200 6/14/1999 800 11/1/2000 12700 3/22/2002 0
1/23/1998 400 6/15/1999 0 11/2/2000 14500
1/26/1998 0 6/16/1999 0 11/3/2000 300
1/27/1998 600 6/17/1999 4100 11/6/2000 1700
1/28/1998 0 6/18/1999 200 11/7/2000 200
1/29/1998 0 6/21/1999 5600 11/8/2000 2000
1/30/1998 1000 6/22/1999 800 11/9/2000 19200
2/2/1998 0 6/23/1999 0 11/10/2000 2000
2/3/1998 2300 6/24/1999 6500 11/13/2000 11000
2/4/1998 0 6/25/1999 0 11/14/2000 13100
2/5/1998 1000 6/28/1999 11500 11/15/2000 1300
2/6/1998 500 6/29/1999 6000 11/16/2000 2100
2/9/1998 0 6/30/1999 300 11/17/2000 0
2/10/1998 0 7/1/1999 300 11/20/2000 0
2/11/1998 500 7/2/1999 0 11/21/2000 10600
2/12/1998 1100 7/5/1999 0 11/22/2000 0
2/13/1998 8400 7/6/1999 3600 11/23/2000 0
2/16/1998 0 7/7/1999 0 11/24/2000 0
2/17/1998 500 7/8/1999 2000 11/27/2000 4000
2/18/1998 1000 7/9/1999 1200 11/28/2000 7200
2/19/1998 1200 7/12/1999 0 11/29/2000 1000
2/20/1998 1400 7/13/1999 6300 11/30/2000 0
2/23/1998 1100 7/14/1999 0 12/1/2000 0
2/24/1998 100 7/15/1999 3000 12/4/2000 0
2/25/1998 0 7/16/1999 0 12/5/2000 200
2/26/1998 0 7/19/1999 4700 12/6/2000 0
2/27/1998 800 7/20/1999 300 12/7/2000 0
3/2/1998 0 7/21/1999 700 12/8/2000 100
3/3/1998 5300 7/22/1999 600 12/11/2000 4900
3/4/1998 0 7/23/1999 0 12/12/2000 12000
3/5/1998 500 7/26/1999 3800 12/13/2000 1000
3/6/1998 0 7/27/1999 0 12/14/2000 700
3/9/1998 0 7/28/1999 0 12/15/2000 8100
3/10/1998 3200 7/29/1999 0 12/18/2000 7400
3/11/1998 1000 7/30/1999 0 12/19/2000 0
3/12/1998 0 8/2/1999 1500 12/20/2000 2400
3/13/1998 7400 8/3/1999 600 12/21/2000 200
3/16/1998 800 8/4/1999 30600 12/22/2000 0
3/17/1998 1100 8/5/1999 2200 12/25/2000 0
3/18/1998 1000 8/6/1999 3700 12/26/2000 5800
3/19/1998 0 8/9/1999 100 12/27/2000 0
3/20/1998 10900 8/10/1999 0 12/28/2000 5400
3/23/1998 0 8/11/1999 4300 12/29/2000 2000
3/24/1998 0 8/12/1999 9100 1/1/2001 0
3/25/1998 500 8/13/1999 8400 1/2/2001 6700
3/26/1998 800 8/16/1999 19900 1/3/2001 2700
3/27/1998 0 8/17/1999 13400 1/4/2001 0
3/30/1998 300 8/18/1999 2300 1/5/2001 1700
3/31/1998 1700 8/19/1999 1600 1/8/2001 100
4/1/1998 5800 8/20/1999 2600 1/9/2001 0
4/2/1998 4000 8/23/1999 3000 1/10/2001 1400
4/3/1998 0 8/24/1999 5600 1/11/2001 3000
4/6/1998 0 8/25/1999 600 1/12/2001 0
4/7/1998 4400 8/26/1999 3900 1/15/2001 0
4/8/1998 0 8/27/1999 21200 1/16/2001 300
4/9/1998 4200 8/30/1999 15800 1/17/2001 2800
4/10/1998 0 8/31/1999 17000 1/18/2001 0
4/13/1998 200 9/1/1999 2100 1/19/2001 200
4/14/1998 200 9/2/1999 3500 1/22/2001 0
4/15/1998 0 9/3/1999 0 1/23/2001 1200
4/16/1998 1700 9/6/1999 0 1/24/2001 0
4/17/1998 4500 9/7/1999 4100 1/25/2001 2900
4/20/1998 0 9/8/1999 20000 1/26/2001 0
4/21/1998 0 9/9/1999 700 1/29/2001 0
4/22/1998 0 9/10/1999 5900 1/30/2001 1500
4/23/1998 0 9/13/1999 2100 1/31/2001 1100
4/24/1998 700 9/14/1999 12900 2/1/2001 3300
4/27/1998 0 9/15/1999 1600 2/2/2001 1000
4/28/1998 0 9/16/1999 28200 2/5/2001 0
4/29/1998 1100 9/17/1999 400 2/6/2001 0
4/30/1998 0 9/20/1999 100 2/7/2001 0
5/1/1998 2800 9/21/1999 4500 2/8/2001 0
5/4/1998 1000 9/22/1999 8900 2/9/2001 0
5/5/1998 3300 9/23/1999 2400 2/12/2001 100
5/6/1998 4300 9/24/1999 4300 2/13/2001 0
5/7/1998 400 9/27/1999 3300 2/14/2001 600
5/8/1998 500 9/28/1999 2500 2/15/2001 0
5/11/1998 0 9/29/1999 3000 2/16/2001 3500
5/12/1998 600 9/30/1999 0 2/19/2001 0
5/13/1998 900 10/1/1999 2000 2/20/2001 0
5/14/1998 0 10/4/1999 10300 2/21/2001 0
5/15/1998 400 10/5/1999 16100 2/22/2001 0
5/18/1998 200 10/6/1999 6800 2/23/2001 2100
5/19/1998 0 10/7/1999 6400 2/26/2001 0
5/20/1998 0 10/8/1999 1200 2/27/2001 0
5/21/1998 0 10/11/1999 700 2/28/2001 0
5/22/1998 0 10/12/1999 600 3/1/2001 0
5/25/1998 0 10/13/1999 0 3/2/2001 0
5/26/1998 2400 10/14/1999 0 3/5/2001 300
5/27/1998 600 10/15/1999 24700 3/6/2001 0
5/28/1998 1700 10/18/1999 5600 3/7/2001 600
5/29/1998 200 10/19/1999 13700 3/8/2001 2000
6/1/1998 400 10/20/1999 0 3/9/2001 100
6/2/1998 200 10/21/1999 300 3/12/2001 1500
6/3/1998 0 10/22/1999 8000 3/13/2001 600
6/4/1998 500 10/25/1999 0 3/14/2001 1500
6/5/1998 0 10/26/1999 3000 3/15/2001 800
6/8/1998 1500 10/27/1999 200 3/16/2001 500
6/9/1998 0 10/28/1999 400 3/19/2001 0
6/10/1998 1500 10/29/1999 7800 3/20/2001 0
6/11/1998 0 11/1/1999 900 3/21/2001 0
6/12/1998 0 11/2/1999 0 3/22/2001 0
6/15/1998 200 11/3/1999 900 3/23/2001 0
6/16/1998 1900 11/4/1999 600 3/26/2001 500
6/17/1998 0 11/5/1999 0 3/27/2001 0
6/18/1998 0 11/8/1999 600 3/28/2001 0
6/19/1998 0 11/9/1999 6800 3/29/2001 0
6/22/1998 0 11/10/1999 14600 3/30/2001 200
6/23/1998 400 11/11/1999 1100 4/2/2001 0
6/24/1998 200 11/12/1999 4500 4/3/2001 6500
6/25/1998 1500 11/15/1999 1200 4/4/2001 500
6/26/1998 400 11/16/1999 0 4/5/2001 1000
6/29/1998 0 11/17/1999 2100 4/6/2001 0
6/30/1998 0 11/18/1999 1200 4/9/2001 0
7/1/1998 0 11/19/1999 900 4/10/2001 0
7/2/1998 0 11/22/1999 1300 4/11/2001 0
7/3/1998 0 11/23/1999 2400 4/12/2001 0
7/6/1998 600 11/24/1999 0 4/13/2001 0
7/7/1998 0 11/25/1999 0 4/16/2001 0
7/8/1998 0 11/26/1999 0 4/17/2001 700
7/9/1998 0 11/29/1999 4300 4/18/2001 0
7/10/1998 0 11/30/1999 700 4/19/2001 0
7/13/1998 400 12/1/1999 0 4/20/2001 0
7/14/1998 0 12/2/1999 16000 4/23/2001 0
7/15/1998 900 12/3/1999 600 4/24/2001 0
7/16/1998 800 12/6/1999 2900 4/25/2001 0
7/17/1998 0 12/7/1999 1200 4/26/2001 0
7/20/1998 200 12/8/1999 7400 4/27/2001 2000
7/21/1998 1400 12/9/1999 3000 4/30/2001 0
7/22/1998 1900 12/10/1999 1000 5/1/2001 0
7/23/1998 0 12/13/1999 1000 5/2/2001 300
7/24/1998 400 12/14/1999 0 5/3/2001 0
7/27/1998 2400 12/15/1999 2000 5/4/2001 0
7/28/1998 1400 12/16/1999 4200 5/7/2001 0
7/29/1998 0 12/17/1999 1200 5/8/2001 1300
7/30/1998 0 12/20/1999 3800 5/9/2001 1700
7/31/1998 3100 12/21/1999 0 5/10/2001 0
8/3/1998 0 12/22/1999 13100 5/11/2001 0
8/4/1998 0 12/23/1999 0 5/14/2001 8200
8/5/1998 0 12/24/1999 0 5/15/2001 1000
8/6/1998 0 12/27/1999 2100 5/16/2001 0
8/7/1998 0 12/28/1999 1600 5/17/2001 0
8/10/1998 0 12/29/1999 500 5/18/2001 2900
8/11/1998 0 12/30/1999 1900 5/21/2001 3000
8/12/1998 300 12/31/1999 29000 5/22/2001 0
8/13/1998 1000 1/3/2000 3600 5/23/2001 0
8/14/1998 2600 1/4/2000 1200 5/24/2001 0
8/17/1998 6600 1/5/2000 0 5/25/2001 700
8/18/1998 0 1/6/2000 8000 5/28/2001 0
8/19/1998 0 1/7/2000 4500 5/29/2001 0
8/20/1998 300 1/10/2000 0 5/30/2001 0
8/21/1998 1300 1/11/2000 0 5/31/2001 0
8/24/1998 25000 1/12/2000 0 6/1/2001 0
8/25/1998 25000 1/13/2000 0 6/4/2001 500
8/26/1998 0 1/14/2000 600 6/5/2001 0
8/27/1998 2700 1/17/2000 0 6/6/2001 6000
8/28/1998 0 1/18/2000 200 6/7/2001 0
8/31/1998 1000 1/19/2000 0 6/8/2001 1000
9/1/1998 6600 1/20/2000 4100 6/11/2001 0
9/2/1998 1600 1/21/2000 500 6/12/2001 0
9/3/1998 200 1/24/2000 0 6/13/2001 1000
9/4/1998 4000 1/25/2000 0 6/14/2001 0
9/7/1998 0 1/26/2000 4500 6/15/2001 0
9/8/1998 3000 1/27/2000 500 6/18/2001 0
9/9/1998 1700 1/28/2000 0 6/19/2001 0
9/10/1998 10500 1/31/2000 22000 6/20/2001 2300
9/11/1998 0 2/1/2000 2500 6/21/2001 0
9/14/1998 5000 2/2/2000 0 6/22/2001 0
9/15/1998 5300 2/3/2000 700 6/25/2001 6900
9/16/1998 0 2/4/2000 600 6/26/2001 3000
9/17/1998 12300 2/7/2000 0 6/27/2001 4000
9/18/1998 2300 2/8/2000 1900 6/28/2001 1500
9/21/1998 0 2/9/2000 2700 6/29/2001 0
9/22/1998 100 2/10/2000 2100 7/2/2001 0
9/23/1998 3400 2/11/2000 6000 7/3/2001 0
9/24/1998 5100 2/14/2000 1100 7/4/2001 0
9/25/1998 2100 2/15/2000 4100 7/5/2001 0
9/28/1998 11000 2/16/2000 3000 7/6/2001 0
9/29/1998 1000 2/17/2000 3800 7/9/2001 2900
9/30/1998 0 2/18/2000 100 7/10/2001 900
10/1/1998 0 2/21/2000 0 7/11/2001 400
10/2/1998 0 2/22/2000 400 7/12/2001 1200
10/5/1998 100 2/23/2000 0 7/13/2001 0
10/6/1998 12000 2/24/2000 40800 7/16/2001 200
10/7/1998 0 2/25/2000 1000 7/17/2001 0
10/8/1998 6400 2/28/2000 400 7/18/2001 1500
10/9/1998 10700 2/29/2000 2900 7/19/2001 0
10/12/1998 100 3/1/2000 800 7/20/2001 0
10/13/1998 0 3/2/2000 4200 7/23/2001 0
10/14/1998 0 3/3/2000 0 7/24/2001 0
10/15/1998 3400 3/6/2000 0 7/25/2001 0
10/16/1998 1700 3/7/2000 0 7/26/2001 200
10/19/1998 1300 3/8/2000 300 7/27/2001 0
10/20/1998 2000 3/9/2000 1100 7/30/2001 0
10/21/1998 1000 3/10/2000 0 7/31/2001 0
10/22/1998 4000 3/13/2000 1600 8/1/2001 0
10/23/1998 1800 3/14/2000 17800 8/2/2001 0
10/26/1998 200 3/15/2000 0 8/3/2001 0
10/27/1998 0 3/16/2000 600 8/6/2001 0
10/28/1998 6000 3/17/2000 900 8/7/2001 0
10/29/1998 6300 3/20/2000 1200 8/8/2001 0
10/30/1998 0 3/21/2000 3800 8/9/2001 1300
11/2/1998 0 3/22/2000 0 8/10/2001 7200
11/3/1998 200 3/23/2000 7600 8/13/2001 900
11/4/1998 0 3/24/2000 1700 8/14/2001 0
11/5/1998 0 3/27/2000 800 8/15/2001 0
11/6/1998 0 3/28/2000 0 8/16/2001 700
11/9/1998 0 3/29/2000 300 8/17/2001 0
11/10/1998 4900 3/30/2000 0 8/20/2001 0
11/11/1998 1500 3/31/2000 3000 8/21/2001 200
11/12/1998 4700 4/3/2000 0 8/22/2001 2800
11/13/1998 2000 4/4/2000 0 8/23/2001 0
11/16/1998 7200 4/5/2000 1500 8/24/2001 0
11/17/1998 0 4/6/2000 0 8/27/2001 0
11/18/1998 0 4/7/2000 2000 8/28/2001 0
11/19/1998 1400 4/10/2000 1200 8/29/2001 0
11/20/1998 0 4/11/2000 0 8/30/2001 0
11/23/1998 13500 4/12/2000 1800 8/31/2001 200
11/24/1998 3600 4/13/2000 0 9/3/2001 0
11/25/1998 5500 4/14/2000 4400 9/4/2001 4800
11/26/1998 0 4/17/2000 9300 9/5/2001 200
11/27/1998 1200 4/18/2000 0 9/6/2001 500
11/30/1998 1900 4/19/2000 1400 9/7/2001 700
12/1/1998 9200 4/20/2000 2000 9/10/2001 0
12/2/1998 800 4/21/2000 0 9/11/2001 0
12/3/1998 1000 4/24/2000 0 9/12/2001 0
12/4/1998 1800 4/25/2000 500 9/13/2001 0
12/7/1998 1400 4/26/2000 0 9/14/2001 0
12/8/1998 400 4/27/2000 0 9/17/2001 2100
12/9/1998 2800 4/28/2000 1900 9/18/2001 0
12/10/1998 0 5/1/2000 0 9/19/2001 1000
12/11/1998 0 5/2/2000 30200 9/20/2001 900
12/14/1998 3000 5/3/2000 10400 9/21/2001 500
12/15/1998 200 5/4/2000 9000 9/24/2001 0
12/16/1998 2800 5/5/2000 0 9/25/2001 0
12/17/1998 3400 5/8/2000 9600 9/26/2001 0
12/18/1998 1000 5/9/2000 0 9/27/2001 0
12/21/1998 0 5/10/2000 2000 9/28/2001 2500
12/22/1998 1000 5/11/2000 3000 10/1/2001 0
12/23/1998 4800 5/12/2000 0 10/2/2001 0
12/24/1998 400 5/15/2000 1500 10/3/2001 0
12/25/1998 0 5/16/2000 8600 10/4/2001 0
12/28/1998 0 5/17/2000 0 10/5/2001 0
12/29/1998 0 5/18/2000 0 10/8/2001 0
12/30/1998 0 5/19/2000 6800 10/9/2001 0
12/31/1998 500 5/22/2000 35600 10/10/2001 400
</Table>
FIRSTCITY FINANCIAL CORPORATION 24 KEEFE, BRUYETTE & WOODS, INC.
COMMON STOCK PRICE PERFORMANCE: SINCE PREFERRED ISSUANCE
[PERFORMANCE GRAPH]
<Table>
<Caption>
FCFC FCFC FCFC
Common Common Common
Date Stock Date Stock Date Stock
- ---- ------ ---- ------ ---- ------
8/13/1997 25.75 5/3/1999 10.375 1/18/2001 1.75
8/14/1997 25.5 5/4/1999 10 1/19/2001 1.875
8/15/1997 25.25 5/5/1999 9.3125 1/22/2001 1.8125
8/18/1997 25.25 5/6/1999 9 1/23/2001 1.8125
8/19/1997 25.625 5/7/1999 8.3125 1/24/2001 1.9375
8/20/1997 25 5/10/1999 7.875 1/25/2001 1.8125
8/21/1997 25 5/11/1999 7.25 1/26/2001 1.875
8/22/1997 24.75 5/12/1999 7 1/29/2001 1.875
8/25/1997 25.25 5/13/1999 6.625 1/30/2001 1.6563
8/26/1997 23.875 5/14/1999 6.125 1/31/2001 1.6563
8/27/1997 24 5/17/1999 6.1875 2/1/2001 1.6563
8/28/1997 24 5/18/1999 6.1875 2/2/2001 1.6563
8/29/1997 24.125 5/19/1999 6.0625 2/5/2001 1.6563
9/2/1997 24 5/20/1999 6.0625 2/6/2001 1.8125
9/3/1997 25.125 5/21/1999 5.875 2/7/2001 1.75
9/4/1997 24.75 5/24/1999 5.9375 2/8/2001 1.7969
9/5/1997 25.125 5/25/1999 6 2/9/2001 1.6875
9/8/1997 24.625 5/26/1999 6.0781 2/12/2001 1.6875
9/9/1997 24.5 5/27/1999 6.375 2/13/2001 1.625
9/10/1997 25.7031 5/28/1999 6.375 2/14/2001 1.375
9/11/1997 25.75 6/1/1999 6 2/15/2001 1.5
9/12/1997 25 6/2/1999 5.375 2/16/2001 1.375
9/15/1997 25.75 6/3/1999 5.0625 2/20/2001 1.25
9/16/1997 26 6/4/1999 5.75 2/21/2001 1.4688
9/17/1997 26.25 6/7/1999 6 2/22/2001 1.25
9/18/1997 25.75 6/8/1999 6.5 2/23/2001 1.3125
9/19/1997 25.5 6/9/1999 6.5625 2/26/2001 1.5
9/22/1997 25.75 6/10/1999 6.3125 2/27/2001 1.3125
9/23/1997 25.5 6/11/1999 6.125 2/28/2001 1.3125
9/24/1997 25.75 6/14/1999 6.125 3/1/2001 1.25
9/25/1997 25.25 6/15/1999 6.25 3/2/2001 1.4375
9/26/1997 25.375 6/16/1999 6.25 3/5/2001 1.4375
9/29/1997 25.4375 6/17/1999 6.625 3/6/2001 1.5
9/30/1997 25.5 6/18/1999 6.25 3/7/2001 1.3125
10/1/1997 25.75 6/21/1999 6.5625 3/8/2001 1.375
10/2/1997 25.75 6/22/1999 6.25 3/9/2001 1.4375
10/3/1997 26 6/23/1999 6.125 3/12/2001 1.3125
10/6/1997 26 6/24/1999 6 3/13/2001 1.375
10/7/1997 26.25 6/25/1999 5.75 3/14/2001 1.125
10/8/1997 26.25 6/28/1999 5.75 3/15/2001 1.0938
10/9/1997 26 6/29/1999 5.75 3/16/2001 1.1875
10/10/1997 26 6/30/1999 5.5 3/19/2001 1.1875
10/13/1997 26 7/1/1999 5.75 3/20/2001 1.0313
10/14/1997 26 7/2/1999 5.875 3/21/2001 1.25
10/15/1997 26 7/6/1999 6.25 3/22/2001 1.3125
10/16/1997 26 7/7/1999 6.375 3/23/2001 1.1563
10/17/1997 26 7/8/1999 6.1875 3/26/2001 1.125
10/20/1997 26 7/9/1999 6.125 3/27/2001 1.1563
10/21/1997 26.125 7/12/1999 6.5625 3/28/2001 1.625
10/22/1997 26.125 7/13/1999 6.625 3/29/2001 1.625
10/23/1997 26.125 7/14/1999 6.5 3/30/2001 1.25
10/24/1997 26.25 7/15/1999 6.5 4/2/2001 1.2188
10/27/1997 26.125 7/16/1999 5.625 4/3/2001 1.25
10/28/1997 26.25 7/19/1999 6.125 4/4/2001 1.25
10/29/1997 26 7/20/1999 6.0313 4/5/2001 1.25
10/30/1997 25.375 7/21/1999 6 4/9/2001 1.25
10/31/1997 25.5 7/22/1999 5.9375 4/10/2001 1.32
11/3/1997 25.5 7/23/1999 5.8125 4/11/2001 1.3
11/4/1997 25.5 7/26/1999 6.375 4/17/2001 1.32
11/5/1997 25.5 7/27/1999 6 4/18/2001 1.18
11/6/1997 25.625 7/28/1999 5.875 4/19/2001 1.15
11/7/1997 25.5 7/29/1999 6.125 4/20/2001 1.18
11/10/1997 25.25 7/30/1999 5.625 4/23/2001 1.19
11/11/1997 25.5 8/2/1999 5.5625 4/24/2001 1.05
11/12/1997 26 8/3/1999 5.375 4/26/2001 1.15
11/13/1997 26.5 8/4/1999 5 4/27/2001 1.3
11/14/1997 26.5 8/5/1999 5.75 4/30/2001 1.07
11/17/1997 26.75 8/6/1999 5.25 5/1/2001 1.26
11/18/1997 27 8/9/1999 5 5/2/2001 1.5
11/19/1997 28.5 8/10/1999 5.125 5/3/2001 1.35
11/20/1997 30.25 8/11/1999 5.125 5/7/2001 1.5
11/21/1997 30.125 8/12/1999 4.75* 5/8/2001 1.54
11/24/1997 29.625 8/13/1999 1.7813 5/9/2001 1.48
11/25/1997 29.75 8/16/1999 1.4375 5/10/2001 1.55
11/26/1997 29.875 8/17/1999 1.5 5/11/2001 1.5
11/28/1997 29.625 8/18/1999 1.875 5/14/2001 1.5
12/1/1997 29.8125 8/19/1999 1.9375 5/15/2001 1.5
12/2/1997 29.75 8/20/1999 1.9375 5/16/2001 1.5
12/3/1997 30 8/23/1999 2.0313 5/17/2001 1.46
12/4/1997 30.125 8/24/1999 2.0313 5/18/2001 1.46
12/5/1997 30.125 8/25/1999 2 5/21/2001 1.35
12/8/1997 30.375 8/26/1999 1.875 5/22/2001 1.35
12/9/1997 30.25 8/27/1999 1.8125 5/23/2001 1.3
12/10/1997 30.25 8/30/1999 1.5 5/24/2001 1.38
12/11/1997 30.75 8/31/1999 1.5 5/25/2001 1.45
12/12/1997 30.25 9/1/1999 1.4375 5/29/2001 1.39
12/15/1997 30.375 9/2/1999 1.5625 5/30/2001 1.5
12/16/1997 30.375 9/3/1999 1.625 5/31/2001 1.39
12/17/1997 30.125 9/7/1999 1.6875 6/1/2001 1.54
12/18/1997 30.25 9/8/1999 1.5625 6/4/2001 1.39
12/19/1997 30.125 9/9/1999 1.5313 6/5/2001 1.3
12/22/1997 30.375 9/10/1999 1.375 6/6/2001 1.31
12/23/1997 30.375 9/13/1999 1.375 6/8/2001 1.7
12/24/1997 30.375 9/14/1999 1.4063 6/11/2001 1.5
12/26/1997 30.375 9/15/1999 1.1875 6/12/2001 1.6
12/29/1997 30.375 9/16/1999 0.75 6/13/2001 1.5
12/30/1997 30.5 9/17/1999 1 6/15/2001 1.46
12/31/1997 30.375 9/20/1999 1.1875 6/19/2001 1.35
1/2/1998 29.875 9/21/1999 1.4375 6/20/2001 1.74
1/5/1998 30.25 9/22/1999 1.375 6/21/2001 1.7
1/6/1998 30 9/23/1999 1.3125 6/25/2001 1.7
1/7/1998 29.5 9/24/1999 1.5 6/26/2001 1.49
1/8/1998 30 9/27/1999 1.4375 6/27/2001 1.39
1/9/1998 28 9/28/1999 1.375 6/28/2001 1.52
1/12/1998 27 9/29/1999 1.375 6/29/2001 1.4
1/13/1998 27.5 9/30/1999 1.5 7/2/2001 1.7
1/14/1998 28.375 10/1/1999 1.625 7/3/2001 1.39
1/15/1998 28.125 10/4/1999 1.75 7/6/2001 1.4
1/16/1998 28.375 10/5/1999 1.7813 7/9/2001 1.4
1/20/1998 28.375 10/6/1999 1.75 7/10/2001 1.5
1/21/1998 28.25 10/7/1999 1.625 7/11/2001 1.51
1/22/1998 27.5 10/8/1999 1.75 7/12/2001 1.54
1/23/1998 27.5 10/11/1999 1.625 7/13/2001 1.44
1/27/1998 27.25 10/12/1999 1.5 7/16/2001 1.35
1/28/1998 27.625 10/13/1999 1.5625 7/17/2001 1.42
1/29/1998 28.25 10/14/1999 1.5 7/18/2001 1.4
1/30/1998 28.375 10/15/1999 1.5 7/19/2001 1.4
2/2/1998 28.375 10/18/1999 1.4375 7/20/2001 1.45
2/3/1998 28.25 10/19/1999 1.5625 7/23/2001 1.6
2/4/1998 28.125 10/20/1999 1.4375 7/25/2001 1.6
2/5/1998 28.5 10/21/1999 1.4688 7/26/2001 1.5
2/6/1998 28.25 10/22/1999 1.4375 7/27/2001 1.5
2/9/1998 28.375 10/25/1999 1.3438 7/31/2001 1.55
2/10/1998 28.125 10/26/1999 1.375 8/1/2001 1.53
2/11/1998 28.125 10/27/1999 1.25 8/2/2001 1.555
2/12/1998 28.125 10/28/1999 1.25 8/3/2001 1.55
2/13/1998 28.125 10/29/1999 1.2813 8/7/2001 1.4
2/17/1998 28 11/1/1999 1.1875 8/8/2001 1.45
2/18/1998 28 11/2/1999 1.1875 8/9/2001 1.5
2/19/1998 29.125 11/3/1999 1.125 8/10/2001 1.5
2/20/1998 29.5 11/4/1999 1.1406 8/13/2001 1.55
2/23/1998 30.75 11/5/1999 1.1875 8/14/2001 1.66
2/24/1998 31.5 11/8/1999 1.2188 8/15/2001 1.84
2/25/1998 31 11/9/1999 1.5 8/16/2001 1.65
2/26/1998 31 11/10/1999 1.625 8/17/2001 1.65
2/27/1998 30.875 11/11/1999 1.875 8/20/2001 1.6
3/2/1998 30.9375 11/12/1999 2.25 8/21/2001 1.3824
3/3/1998 30.75 11/15/1999 2.625 8/22/2001 1.38
3/4/1998 30.625 11/16/1999 2.3125 8/23/2001 1.403
3/5/1998 30.5 11/17/1999 2.125 8/24/2001 1.45
3/6/1998 30.625 11/18/1999 2.125 8/27/2001 1.451
3/9/1998 30 11/19/1999 2.125 8/28/2001 1.46
3/10/1998 30 11/22/1999 2.5 8/29/2001 1.5
3/11/1998 30.1875 11/23/1999 2.375 8/30/2001 1.81
3/12/1998 30.25 11/24/1999 2.4375 8/31/2001 1.7994
3/13/1998 30.5 11/26/1999 2.25 9/4/2001 1.49
3/16/1998 30.375 11/29/1999 2 9/5/2001 1.7
3/17/1998 30.5 11/30/1999 2.125 9/6/2001 1.48
3/18/1998 30.125 12/1/1999 2.125 9/7/2001 1.7
3/19/1998 30 12/2/1999 2.0625 9/10/2001 1.6
3/20/1998 30.125 12/3/1999 2.0625 9/17/2001 1.7005
3/23/1998 30.125 12/6/1999 1.75 9/18/2001 1.55
3/24/1998 30 12/7/1999 1.75 9/19/2001 1.5
3/25/1998 29.875 12/8/1999 1.875 9/20/2001 1.5
3/26/1998 30.125 12/9/1999 2 9/21/2001 1.4916
3/27/1998 30.125 12/10/1999 1.7813 9/24/2001 1.73
3/30/1998 30 12/13/1999 2 9/25/2001 1.55
3/31/1998 30.25 12/14/1999 1.875 9/26/2001 1.6
4/1/1998 29.875 12/15/1999 2 9/27/2001 1.75
4/2/1998 30 12/16/1999 2.0625 9/28/2001 1.75
4/3/1998 29.875 12/17/1999 2.0625 10/1/2001 1.78
4/6/1998 30.125 12/20/1999 2.0625 10/2/2001 1.76
4/7/1998 29.9375 12/21/1999 2.3125 10/3/2001 1.75
4/8/1998 30 12/22/1999 2.625 10/4/2001 1.74
4/9/1998 30.25 12/23/1999 2.625 10/5/2001 1.5811
4/13/1998 30.375 12/27/1999 2.1875 10/8/2001 1.79
4/14/1998 30.75 12/28/1999 2.5 10/9/2001 1.58
4/15/1998 31.375 12/29/1999 2.3125 10/10/2001 1.79
4/16/1998 33.375 12/30/1999 2.375 10/12/2001 1.59
4/17/1998 33.25 12/31/1999 2.75 10/15/2001 1.54
4/20/1998 32.5 1/3/2000 2.5 10/16/2001 1.54
4/21/1998 32 1/4/2000 2.25 10/17/2001 1.8
4/22/1998 31.5 1/5/2000 2.5 10/19/2001 1.8
4/23/1998 32 1/6/2000 2.5 10/22/2001 1.51
4/24/1998 32 1/7/2000 2.375 10/23/2001 1.79
4/27/1998 32 1/10/2000 2.4375 10/25/2001 1.75
4/28/1998 32 1/11/2000 2.375 10/26/2001 1.7107
4/29/1998 31.875 1/12/2000 2.5 10/29/2001 1.5
4/30/1998 32.5 1/13/2000 2.625 10/30/2001 1.49
5/1/1998 32.25 1/14/2000 2.6875 10/31/2001 1.49
5/4/1998 32 1/18/2000 3.125 11/1/2001 1.5
5/5/1998 31.5 1/19/2000 3 11/2/2001 1.55
5/6/1998 31.625 1/20/2000 3.125 11/5/2001 1.55
5/7/1998 31 1/21/2000 3.125 11/6/2001 1.595
5/8/1998 31.25 1/24/2000 3.125 11/7/2001 1.6019
5/11/1998 31 1/25/2000 3.0625 11/8/2001 1.65
5/12/1998 30.75 1/26/2000 3.125 11/12/2001 1.6
5/13/1998 31.375 1/27/2000 3.0625 11/13/2001 1.65
5/14/1998 30.75 1/28/2000 3.1875 11/14/2001 1.64
5/15/1998 30.625 1/31/2000 3.125 11/15/2001 1.38
5/18/1998 30.25 2/1/2000 3.125 11/16/2001 1.38
5/19/1998 30.25 2/2/2000 3.1875 11/20/2001 1.38
5/20/1998 29.875 2/3/2000 3.4375 11/21/2001 1.21
5/21/1998 29.6875 2/4/2000 3.5 11/26/2001 1.4
5/22/1998 29.625 2/7/2000 3.5 11/27/2001 1.21
5/26/1998 29.625 2/8/2000 3.8906 11/28/2001 1.4
5/27/1998 29 2/9/2000 3.5 11/29/2001 1.21
5/28/1998 29.375 2/10/2000 3.5625 12/3/2001 1.26
5/29/1998 29.75 2/11/2000 3.4375 12/4/2001 1.2
6/1/1998 29.5 2/14/2000 3.4375 12/5/2001 1.2
6/2/1998 29.625 2/15/2000 3.4375 12/6/2001 1.2
6/3/1998 29.625 2/16/2000 3.25 12/7/2001 1.2015
6/4/1998 29.75 2/17/2000 2.9375 12/10/2001 1.2
6/5/1998 29.75 2/18/2000 2.75 12/11/2001 1.04
6/8/1998 29.5 2/22/2000 2.5 12/12/2001 1.21
6/9/1998 29.375 2/23/2000 2.5625 12/13/2001 1.2005
6/10/1998 28.875 2/24/2000 2.3125 12/14/2001 1.201
6/11/1998 29 2/25/2000 2.375 12/17/2001 1.15
6/12/1998 28.875 2/28/2000 2.3125 12/18/2001 1.25
6/15/1998 28.75 2/29/2000 2.125 12/19/2001 1.199
6/16/1998 28.5 3/1/2000 2.4375 12/20/2001 1.17
6/17/1998 28.375 3/2/2000 2.5625 12/21/2001 1.1505
6/18/1998 28.625 3/3/2000 2.375 12/24/2001 1.0807
6/19/1998 28.375 3/6/2000 2.5625 12/26/2001 1.08
6/22/1998 28.375 3/7/2000 2.75 12/27/2001 1.15
6/23/1998 27.75 3/8/2000 2.6875 12/28/2001 1.2
6/24/1998 27.375 3/9/2000 2.625 12/31/2001 1.2
6/25/1998 27.375 3/10/2000 2.625 1/2/2002 1.235
6/26/1998 28.75 3/13/2000 2.875 1/3/2002 1.4
6/29/1998 29.25 3/14/2000 2.875 1/4/2002 1.52
6/30/1998 29 3/15/2000 3 1/7/2002 1.32
7/1/1998 28.5 3/16/2000 2.875 1/8/2002 1.26
7/2/1998 28.25 3/17/2000 2.75 1/14/2002 1.35
7/6/1998 27.5 3/20/2000 2.8125 1/15/2002 1.3
7/7/1998 27.5 3/21/2000 2.625 1/17/2002 1.26
7/8/1998 27.5 3/22/2000 2.75 1/18/2002 1.2
7/9/1998 27.75 3/23/2000 3 1/22/2002 1.26
7/10/1998 27.75 3/24/2000 2.75 1/23/2002 1.2595
7/13/1998 27.75 3/27/2000 2.875 1/24/2002 1.26
7/14/1998 27.875 3/28/2000 2.875 1/25/2002 1.26**
7/15/1998 27.75 3/29/2000 2.625
7/16/1998 28.125 3/30/2000 2.625
7/17/1998 28.125 3/31/2000 2.375
7/20/1998 28.375 4/3/2000 2.25
7/21/1998 29.375 4/4/2000 2.3125
7/22/1998 29 4/5/2000 2.375
7/23/1998 28.8125 4/6/2000 2.125
7/24/1998 29.5 4/7/2000 2.25
7/27/1998 29 4/10/2000 2.125
7/28/1998 28.6875 4/11/2000 2
7/29/1998 29 4/12/2000 1.875
7/30/1998 28.5 4/13/2000 2
7/31/1998 28.25 4/14/2000 1.75
8/3/1998 27.5 4/17/2000 2
8/4/1998 24.9375 4/18/2000 2
8/5/1998 24.5 4/19/2000 2.125
8/6/1998 26.5 4/20/2000 2.3125
8/7/1998 26.125 4/24/2000 2.375
8/10/1998 26.25 4/25/2000 2.125
8/11/1998 25.25 4/26/2000 2.125
8/12/1998 25.375 4/27/2000 2
8/13/1998 24.5 4/28/2000 2.125
8/14/1998 24.75 5/1/2000 2.25
8/17/1998 24.625 5/2/2000 2.375
8/18/1998 24.375 5/3/2000 2
8/19/1998 24.25 5/4/2000 2.375
8/20/1998 24.3125 5/5/2000 2
8/21/1998 23.625 5/8/2000 2.25
8/24/1998 22.5 5/9/2000 2
8/25/1998 21 5/10/2000 1.875
8/26/1998 20.375 5/11/2000 1.875
8/27/1998 18.5 5/12/2000 2.125
8/28/1998 18.0625 5/15/2000 2.25
8/31/1998 17.5 5/16/2000 1.875
9/1/1998 19.875 5/17/2000 2
9/2/1998 19 5/18/2000 1.75
9/3/1998 17 5/19/2000 2.125
9/4/1998 15.125 5/22/2000 1.875
9/8/1998 16.25 5/23/2000 2.0313
9/9/1998 13.625 5/24/2000 2.25
9/10/1998 13 5/25/2000 2.25
9/11/1998 13.125 5/26/2000 2.125
9/14/1998 13 5/30/2000 2.125
9/15/1998 13.125 5/31/2000 2.0625
9/16/1998 12.625 6/1/2000 2.0625
9/17/1998 12.75 6/2/2000 2
9/18/1998 12.125 6/5/2000 2.125
9/21/1998 12.0625 6/6/2000 2
9/22/1998 15.5 6/7/2000 2.125
9/23/1998 18.5 6/8/2000 2.25
9/24/1998 16.75 6/9/2000 2.25
9/25/1998 16.5 6/12/2000 2.0625
9/28/1998 16 6/13/2000 2
9/29/1998 16.25 6/14/2000 2.0625
9/30/1998 16 6/15/2000 2.1875
10/1/1998 15.5 6/16/2000 2.1875
10/2/1998 14.5 6/19/2000 2.125
10/5/1998 14.625 6/20/2000 1.9375
10/6/1998 12.5 6/21/2000 2
10/7/1998 12.3125 6/22/2000 2.0625
10/8/1998 12.125 6/23/2000 2
10/9/1998 13 6/26/2000 1.8125
10/12/1998 13.5 6/27/2000 1.5781
10/13/1998 12.9375 6/28/2000 1.625
10/14/1998 12.875 6/29/2000 1.625
10/15/1998 12.75 6/30/2000 1.875
10/16/1998 12.625 7/3/2000 2
10/19/1998 13 7/5/2000 1.75
10/20/1998 14.5 7/6/2000 1.75
10/21/1998 14.5625 7/7/2000 1.75
10/22/1998 13.625 7/10/2000 2
10/23/1998 13.125 7/11/2000 2.125
10/26/1998 12.875 7/12/2000 2.25
10/27/1998 13.375 7/13/2000 2.25
10/28/1998 13.625 7/14/2000 2.5
10/29/1998 13.25 7/17/2000 2.4375
10/30/1998 13.25 7/18/2000 2.4375
11/2/1998 13.125 7/19/2000 2.5
11/3/1998 12.625 7/20/2000 2.1875
11/4/1998 12 7/21/2000 2.5
11/5/1998 13.0625 7/24/2000 2.5
11/6/1998 13 7/25/2000 2.25
11/9/1998 13 7/26/2000 2.3125
11/10/1998 13.5 7/27/2000 2.375
11/11/1998 13.3125 7/28/2000 2.4375
11/12/1998 13.375 7/31/2000 2.5
11/13/1998 13.5 8/1/2000 2.875
11/16/1998 13.625 8/2/2000 2.625
11/17/1998 13.875 8/3/2000 2.625
11/18/1998 13.625 8/4/2000 2.75
11/19/1998 13 8/7/2000 2.75
11/20/1998 13.875 8/8/2000 2.6875
11/23/1998 13.25 8/9/2000 2.5625
11/24/1998 13.0625 8/10/2000 2.375
11/25/1998 13.0625 8/11/2000 1.9375
11/27/1998 13.3125 8/14/2000 1.875
11/30/1998 12.625 8/15/2000 1.75
12/1/1998 12.375 8/16/2000 1.6875
12/2/1998 12 8/17/2000 1.625
12/3/1998 12 8/18/2000 1.875
12/4/1998 12 8/21/2000 1.6875
12/7/1998 11.625 8/22/2000 1.8125
12/8/1998 11.375 8/23/2000 1.75
12/9/1998 11.125 8/24/2000 1.625
12/10/1998 11.0625 8/25/2000 1.625
12/11/1998 11.0625 8/28/2000 1.5
12/14/1998 10.75 8/29/2000 1.8125
12/15/1998 10.5625 8/30/2000 1.8125
12/16/1998 10.375 8/31/2000 2
12/17/1998 10.5 9/1/2000 2.0625
12/18/1998 11 9/5/2000 2
12/21/1998 11.75 9/6/2000 2
12/22/1998 13.125 9/7/2000 2.25
12/23/1998 12.875 9/8/2000 2.125
12/24/1998 13 9/11/2000 2.125
12/28/1998 13.75 9/12/2000 2
12/29/1998 13.6875 9/13/2000 2
12/30/1998 13.625 9/14/2000 2.125
12/31/1998 12.9375 9/15/2000 2
1/4/1999 13 9/18/2000 2
1/5/1999 13.375 9/19/2000 1.9375
1/6/1999 15.5 9/20/2000 2.0625
1/7/1999 16.5 9/21/2000 2.0625
1/8/1999 16.75 9/22/2000 1.9688
1/11/1999 16.25 9/25/2000 1.9688
1/12/1999 16.625 9/26/2000 2
1/13/1999 14 9/27/2000 1.875
1/14/1999 14.75 9/28/2000 1.875
1/15/1999 14 9/29/2000 1.9063
1/19/1999 13.875 10/2/2000 1.9375
1/20/1999 14 10/3/2000 2
1/21/1999 14.125 10/4/2000 2.0625
1/22/1999 13.75 10/5/2000 2
1/25/1999 14.125 10/6/2000 1.9375
1/26/1999 14 10/9/2000 1.875
1/27/1999 14.125 10/10/2000 1.9375
1/28/1999 14.0625 10/11/2000 2
1/29/1999 14.625 10/12/2000 1.9688
2/1/1999 14.375 10/13/2000 1.9688
2/2/1999 13.5 10/16/2000 1.9688
2/3/1999 13.375 10/17/2000 1.9688
2/4/1999 12.5 10/18/2000 2
2/5/1999 13.5 10/19/2000 1.9375
2/8/1999 12.75 10/20/2000 2
2/9/1999 12.875 10/23/2000 1.9375
2/10/1999 12.9375 10/24/2000 1.9375
2/11/1999 13.625 10/25/2000 2
2/12/1999 13.375 10/26/2000 2.0625
2/16/1999 12.3125 10/27/2000 1.9375
2/17/1999 12.5 10/30/2000 2
2/18/1999 12 10/31/2000 2
2/19/1999 12.5 11/1/2000 2
2/22/1999 12 11/2/2000 2.125
2/23/1999 11.875 11/3/2000 2.0625
2/24/1999 11.875 11/6/2000 2.1875
2/25/1999 11.75 11/7/2000 2.125
2/26/1999 12.0625 11/8/2000 2.125
3/1/1999 12.0625 11/9/2000 2.0938
3/2/1999 12.4375 11/10/2000 2.1875
3/3/1999 12.125 11/13/2000 2.1875
3/4/1999 12.5 11/14/2000 2.1875
3/5/1999 11 11/15/2000 2.125
3/8/1999 11.375 11/16/2000 2.0625
3/9/1999 10.875 11/17/2000 2.125
3/10/1999 11.125 11/20/2000 2.125
3/11/1999 10.75 11/21/2000 1.9688
3/12/1999 10.875 11/22/2000 1.875
3/15/1999 10.875 11/24/2000 1.9531
3/16/1999 10.5 11/27/2000 1.9531
3/17/1999 10.625 11/28/2000 1.9375
3/18/1999 10.25 11/29/2000 1.875
3/19/1999 10.25 11/30/2000 1.875
3/22/1999 10.125 12/1/2000 2
3/23/1999 10.3125 12/4/2000 2
3/24/1999 10 12/5/2000 2.0625
3/25/1999 9.9375 12/6/2000 2
3/26/1999 9.25 12/7/2000 1.875
3/29/1999 9.25 12/8/2000 2
3/30/1999 8.875 12/11/2000 1.875
3/31/1999 9.9375 12/12/2000 1.6875
4/1/1999 9.375 12/13/2000 1.6875
4/5/1999 9.0625 12/14/2000 1.6875
4/6/1999 9.0625 12/15/2000 1.6875
4/7/1999 9.125 12/18/2000 1.5
4/8/1999 9 12/19/2000 1.625
4/9/1999 8.75 12/20/2000 1.375
4/12/1999 8.8125 12/21/2000 1.25
4/13/1999 9.375 12/22/2000 1.3125
4/14/1999 9.625 12/26/2000 1.3125
4/15/1999 9.75 12/27/2000 1.3125
4/16/1999 10.5 12/28/2000 1.5625
4/19/1999 11 12/29/2000 1.6875
4/20/1999 10.75 1/2/2001 1.875
4/21/1999 11.4375 1/3/2001 1.8125
4/22/1999 10.5 1/4/2001 1.875
4/23/1999 10.875 1/5/2001 1.875
4/26/1999 10.875 1/8/2001 1.8438
4/27/1999 10.25 1/10/2001 1.8438
4/28/1999 10.6563 1/11/2001 2
4/29/1999 10.875 1/16/2001 1.8125
4/30/1999 10.625 1/17/2001 1.8125
</Table>
* PREFERRED DIVIDEND SUSPENDED BY FCFC
** $1.14 IS LAST TRADE OF FCFC
FIRSTCITY FINANCIAL CORPORATION 25 KEEFE, BRUYETTE & WOODS, INC.
COMMON STOCK PRICE PERFORMANCE: VOLUME
[PERFORMANCE GRAPH]
<Table>
<Caption>
FCFC FCFC FCFC FCFC
Common Common Common Common
Date Stock Date Stock Date Stock Date Stock
- ---- ------ ---- ------ ---- ------ ---- ------
8/13/1997 8400 11/2/1998 66800 1/20/2000 62000 4/10/2001 11200
8/14/1997 21500 11/3/1998 61000 1/21/2000 31000 4/11/2001 2200
8/15/1997 1300 11/4/1998 45100 1/24/2000 52700 4/12/2001 0
8/18/1997 2000 11/5/1998 52400 1/25/2000 24200 4/13/2001 0
8/19/1997 1600 11/6/1998 31500 1/26/2000 9900 4/16/2001 0
8/20/1997 8000 11/9/1998 41700 1/27/2000 9100 4/17/2001 5000
8/21/1997 7100 11/10/1998 27800 1/28/2000 22700 4/18/2001 6900
8/22/1997 8600 11/11/1998 20200 1/31/2000 14300 4/19/2001 13400
8/25/1997 1500 11/12/1998 9400 2/1/2000 5500 4/20/2001 11400
8/26/1997 31900 11/13/1998 57000 2/2/2000 24100 4/23/2001 1100
8/27/1997 8100 11/16/1998 47900 2/3/2000 32100 4/24/2001 1100
8/28/1997 39100 11/17/1998 8200 2/4/2000 37400 4/25/2001 0
8/29/1997 3500 11/18/1998 5400 2/7/2000 56100 4/26/2001 1800
9/1/1997 0 11/19/1998 9600 2/8/2000 48800 4/27/2001 2800
9/2/1997 7800 11/20/1998 28200 2/9/2000 101400 4/30/2001 800
9/3/1997 12000 11/23/1998 11900 2/10/2000 104700 5/1/2001 10800
9/4/1997 2900 11/24/1998 13400 2/11/2000 67000 5/2/2001 3700
9/5/1997 1200 11/25/1998 16300 2/14/2000 53600 5/3/2001 4800
9/8/1997 38300 11/26/1998 0 2/15/2000 41000 5/4/2001 0
9/9/1997 3000 11/27/1998 24000 2/16/2000 11600 5/7/2001 1800
9/10/1997 29200 11/30/1998 16700 2/17/2000 17600 5/8/2001 8500
9/11/1997 24500 12/1/1998 11000 2/18/2000 55200 5/9/2001 4400
9/12/1997 11100 12/2/1998 12300 2/21/2000 0 5/10/2001 9000
9/15/1997 3900 12/3/1998 21700 2/22/2000 24000 5/11/2001 3900
9/16/1997 6900 12/4/1998 14600 2/23/2000 15000 5/14/2001 1100
9/17/1997 3000 12/7/1998 39100 2/24/2000 30500 5/15/2001 0
9/18/1997 7300 12/8/1998 17300 2/25/2000 46200 5/16/2001 3000
9/19/1997 3500 12/9/1998 53700 2/28/2000 30700 5/17/2001 1900
9/22/1997 9600 12/10/1998 276300 2/29/2000 13200 5/18/2001 0
9/23/1997 26400 12/11/1998 28200 3/1/2000 35300 5/21/2001 7900
9/24/1997 17500 12/14/1998 13900 3/2/2000 44300 5/22/2001 31400
9/25/1997 3400 12/15/1998 25200 3/3/2000 15100 5/23/2001 8400
9/26/1997 6600 12/16/1998 52200 3/6/2000 16100 5/24/2001 1000
9/29/1997 5500 12/17/1998 121600 3/7/2000 23000 5/25/2001 300
9/30/1997 9200 12/18/1998 69100 3/8/2000 10000 5/28/2001 0
10/1/1997 6900 12/21/1998 47700 3/9/2000 27500 5/29/2001 2000
10/2/1997 7700 12/22/1998 42700 3/10/2000 2200 5/30/2001 8800
10/3/1997 4900 12/23/1998 102300 3/13/2000 8000 5/31/2001 400
10/6/1997 10600 12/24/1998 3600 3/14/2000 15200 6/1/2001 2300
10/7/1997 17800 12/25/1998 0 3/15/2000 9600 6/4/2001 900
10/8/1997 5100 12/28/1998 28700 3/16/2000 8500 6/5/2001 300
10/9/1997 9300 12/29/1998 52500 3/17/2000 2700 6/6/2001 1900
10/10/1997 300 12/30/1998 38800 3/20/2000 5500 6/7/2001 0
10/13/1997 1500 12/31/1998 69500 3/21/2000 12900 6/8/2001 5200
10/14/1997 8200 1/1/1999 0 3/22/2000 18400 6/11/2001 300
10/15/1997 4300 1/4/1999 6100 3/23/2000 11100 6/12/2001 3400
10/16/1997 12400 1/5/1999 11700 3/24/2000 10100 6/13/2001 3000
10/17/1997 12700 1/6/1999 16500 3/27/2000 19500 6/14/2001 0
10/20/1997 6200 1/7/1999 61200 3/28/2000 1500 6/15/2001 300
10/21/1997 8500 1/8/1999 19500 3/29/2000 12000 6/18/2001 0
10/22/1997 263100 1/11/1999 7600 3/30/2000 9200 6/19/2001 9100
10/23/1997 1800 1/12/1999 10800 3/31/2000 33400 6/20/2001 300
10/24/1997 4100 1/13/1999 9600 4/3/2000 37700 6/21/2001 7500
10/27/1997 12200 1/14/1999 1000 4/4/2000 33700 6/22/2001 0
10/28/1997 20600 1/15/1999 4900 4/5/2000 4900 6/25/2001 0
10/29/1997 8100 1/18/1999 0 4/6/2000 12000 6/26/2001 2700
10/30/1997 129500 1/19/1999 5600 4/7/2000 8400 6/27/2001 6600
10/31/1997 7900 1/20/1999 3400 4/10/2000 14200 6/28/2001 14400
11/3/1997 17200 1/21/1999 5400 4/11/2000 8900 6/29/2001 8900
11/4/1997 80600 1/22/1999 12800 4/12/2000 26900 7/2/2001 2500
11/5/1997 7300 1/25/1999 5600 4/13/2000 22800 7/3/2001 300
11/6/1997 22300 1/26/1999 16500 4/14/2000 6200 7/4/2001 0
11/7/1997 200 1/27/1999 1100 4/17/2000 10800 7/5/2001 0
11/10/1997 2400 1/28/1999 6900 4/18/2000 18500 7/6/2001 100
11/11/1997 47100 1/29/1999 1400 4/19/2000 19100 7/9/2001 0
11/12/1997 72700 2/1/1999 4800 4/20/2000 600 7/10/2001 1700
11/13/1997 26100 2/2/1999 8900 4/21/2000 0 7/11/2001 1400
11/14/1997 29000 2/3/1999 7400 4/24/2000 10700 7/12/2001 2600
11/17/1997 38700 2/4/1999 21500 4/25/2000 3100 7/13/2001 7400
11/18/1997 15800 2/5/1999 1400 4/26/2000 14000 7/16/2001 3200
11/19/1997 40500 2/8/1999 43400 4/27/2000 8700 7/17/2001 1000
11/20/1997 115400 2/9/1999 3100 4/28/2000 38200 7/18/2001 4800
11/21/1997 28300 2/10/1999 6200 5/1/2000 12600 7/19/2001 1800
11/24/1997 104600 2/11/1999 59100 5/2/2000 1000 7/20/2001 700
11/25/1997 6700 2/12/1999 16900 5/3/2000 26600 7/23/2001 5100
11/26/1997 600 2/15/1999 0 5/4/2000 3600 7/24/2001 0
11/27/1997 0 2/16/1999 8500 5/5/2000 2400 7/25/2001 2000
11/28/1997 3200 2/17/1999 19900 5/8/2000 3600 7/26/2001 800
12/1/1997 15900 2/18/1999 19600 5/9/2000 3600 7/27/2001 800
12/2/1997 15500 2/19/1999 6400 5/10/2000 10000 7/30/2001 0
12/3/1997 15200 2/22/1999 2000 5/11/2000 2700 7/31/2001 2000
12/4/1997 52200 2/23/1999 4900 5/12/2000 1900 8/1/2001 500
12/5/1997 24600 2/24/1999 3400 5/15/2000 500 8/2/2001 1100
12/8/1997 49900 2/25/1999 7600 5/16/2000 21500 8/3/2001 15400
12/9/1997 23600 2/26/1999 15600 5/17/2000 10500 8/6/2001 0
12/10/1997 5900 3/1/1999 2100 5/18/2000 8800 8/7/2001 5800
12/11/1997 7200 3/2/1999 5000 5/19/2000 26000 8/8/2001 1600
12/12/1997 20600 3/3/1999 3500 5/22/2000 28000 8/9/2001 2400
12/15/1997 10700 3/4/1999 1100 5/23/2000 7800 8/10/2001 4200
12/16/1997 16600 3/5/1999 14100 5/24/2000 19500 8/13/2001 2700
12/17/1997 15500 3/8/1999 4000 5/25/2000 12500 8/14/2001 32600
12/18/1997 10600 3/9/1999 8100 5/26/2000 8000 8/15/2001 60300
12/19/1997 1400 3/10/1999 11100 5/29/2000 0 8/16/2001 14200
12/22/1997 53700 3/11/1999 2100 5/30/2000 4800 8/17/2001 3800
12/23/1997 7200 3/12/1999 36200 5/31/2000 5100 8/20/2001 1300
12/24/1997 700 3/15/1999 2900 6/1/2000 0 8/21/2001 3600
12/25/1997 0 3/16/1999 5800 6/2/2000 4500 8/22/2001 1100
12/26/1997 0 3/17/1999 13000 6/5/2000 1000 8/23/2001 100
12/29/1997 2500 3/18/1999 3000 6/6/2000 5800 8/24/2001 1800
12/30/1997 700 3/19/1999 6500 6/7/2000 1800 8/27/2001 6300
12/31/1997 800 3/22/1999 1200 6/8/2000 7400 8/28/2001 1800
1/1/1998 0 3/23/1999 5100 6/9/2000 9100 8/29/2001 6000
1/2/1998 17000 3/24/1999 4800 6/12/2000 2100 8/30/2001 32100
1/5/1998 20200 3/25/1999 45400 6/13/2000 6400 8/31/2001 700
1/6/1998 1900 3/26/1999 18800 6/14/2000 2200 9/3/2001 0
1/7/1998 51600 3/29/1999 28700 6/15/2000 12100 9/4/2001 11200
1/8/1998 8600 3/30/1999 16800 6/16/2000 1200 9/5/2001 4100
1/9/1998 35400 3/31/1999 57000 6/19/2000 2400 9/6/2001 2600
1/12/1998 42900 4/1/1999 22900 6/20/2000 16100 9/7/2001 13300
1/13/1998 5500 4/2/1999 0 6/21/2000 3200 9/10/2001 6000
1/14/1998 1300 4/5/1999 9800 6/22/2000 500 9/11/2001 0
1/15/1998 2100 4/6/1999 5500 6/23/2000 2500 9/12/2001 0
1/16/1998 3800 4/7/1999 21800 6/26/2000 9900 9/13/2001 0
1/19/1998 0 4/8/1999 13100 6/27/2000 28700 9/14/2001 0
1/20/1998 600 4/9/1999 1100 6/28/2000 6100 9/17/2001 14300
1/21/1998 5000 4/12/1999 49000 6/29/2000 12500 9/18/2001 15100
1/22/1998 13000 4/13/1999 20600 6/30/2000 16500 9/19/2001 12300
1/23/1998 0 4/14/1999 8800 7/3/2000 28900 9/20/2001 1800
1/26/1998 0 4/15/1999 15400 7/4/2000 0 9/21/2001 9500
1/27/1998 3200 4/16/1999 5300 7/5/2000 8100 9/24/2001 2100
1/28/1998 3800 4/19/1999 7600 7/6/2000 50500 9/25/2001 800
1/29/1998 18500 4/20/1999 4900 7/7/2000 54700 9/26/2001 3300
1/30/1998 2400 4/21/1999 24800 7/10/2000 63500 9/27/2001 1500
2/2/1998 12000 4/22/1999 12900 7/11/2000 48400 9/28/2001 22600
2/3/1998 21700 4/23/1999 2100 7/12/2000 30700 10/1/2001 7600
2/4/1998 600 4/26/1999 22700 7/13/2000 19900 10/2/2001 6000
2/5/1998 8300 4/27/1999 12000 7/14/2000 57600 10/3/2001 12600
2/6/1998 1500 4/28/1999 23400 7/17/2000 22700 10/4/2001 500
2/9/1998 14400 4/29/1999 3900 7/18/2000 14000 10/5/2001 900
2/10/1998 100 4/30/1999 16800 7/19/2000 19800 10/8/2001 7500
2/11/1998 0 5/3/1999 3700 7/20/2000 28900 10/9/2001 600
2/12/1998 1500 5/4/1999 21900 7/21/2000 7900 10/10/2001 5100
2/13/1998 5500 5/5/1999 48400 7/24/2000 21300 10/11/2001 0
2/16/1998 0 5/6/1999 14000 7/25/2000 26000 10/12/2001 23100
2/17/1998 10200 5/7/1999 50100 7/26/2000 29600 10/15/2001 4400
2/18/1998 1500 5/10/1999 61500 7/27/2000 11500 10/16/2001 0
2/19/1998 41800 5/11/1999 83800 7/28/2000 11400 10/17/2001 7500
2/20/1998 5600 5/12/1999 47600 7/31/2000 57100 10/18/2001 0
2/23/1998 46100 5/13/1999 84300 8/1/2000 130500 10/19/2001 0
2/24/1998 34300 5/14/1999 61800 8/2/2000 41200 10/22/2001 11600
2/25/1998 36500 5/17/1999 36300 8/3/2000 17400 10/23/2001 2300
2/26/1998 13900 5/18/1999 30400 8/4/2000 32700 10/24/2001 0
2/27/1998 2400 5/19/1999 39600 8/7/2000 22300 10/25/2001 1200
3/2/1998 71100 5/20/1999 56100 8/8/2000 73700 10/26/2001 800
3/3/1998 2100 5/21/1999 44500 8/9/2000 4100 10/29/2001 19900
3/4/1998 4000 5/24/1999 58900 8/10/2000 24700 10/30/2001 1700
3/5/1998 800 5/25/1999 51900 8/11/2000 28900 10/31/2001 700
3/6/1998 3200 5/26/1999 26400 8/14/2000 69800 11/1/2001 8100
3/9/1998 20600 5/27/1999 67000 8/15/2000 20400 11/2/2001 1700
3/10/1998 10900 5/28/1999 75400 8/16/2000 16100 11/5/2001 9900
3/11/1998 4000 5/31/1999 0 8/17/2000 6000 11/6/2001 200
3/12/1998 23800 6/1/1999 73500 8/18/2000 28300 11/7/2001 6000
3/13/1998 6600 6/2/1999 107700 8/21/2000 33500 11/8/2001 3200
3/16/1998 18900 6/3/1999 176500 8/22/2000 17900 11/9/2001 0
3/17/1998 4100 6/4/1999 161000 8/23/2000 17500 11/12/2001 100
3/18/1998 24200 6/7/1999 205700 8/24/2000 16700 11/13/2001 3000
3/19/1998 8900 6/8/1999 74500 8/25/2000 200 11/14/2001 26300
3/20/1998 22000 6/9/1999 106200 8/28/2000 22200 11/15/2001 4200
3/23/1998 7800 6/10/1999 48100 8/29/2000 56000 11/16/2001 1000
3/24/1998 9400 6/11/1999 24600 8/30/2000 4100 11/19/2001 0
3/25/1998 4700 6/14/1999 4300 8/31/2000 65500 11/20/2001 8500
3/26/1998 21000 6/15/1999 28700 9/1/2000 5300 11/21/2001 3600
3/27/1998 3700 6/16/1999 7400 9/4/2000 0 11/22/2001 0
3/30/1998 5700 6/17/1999 13200 9/5/2000 26900 11/23/2001 0
3/31/1998 10600 6/18/1999 56700 9/6/2000 11100 11/26/2001 13400
4/1/1998 1300 6/21/1999 19300 9/7/2000 35800 11/27/2001 1300
4/2/1998 9200 6/22/1999 13500 9/8/2000 27900 11/28/2001 1400
4/3/1998 6000 6/23/1999 20000 9/11/2000 4800 11/29/2001 4400
4/6/1998 5300 6/24/1999 12300 9/12/2000 30000 11/30/2001 0
4/7/1998 19900 6/25/1999 30100 9/13/2000 7200 12/3/2001 2000
4/8/1998 1300 6/28/1999 12600 9/14/2000 41200 12/4/2001 3700
4/9/1998 2400 6/29/1999 11700 9/15/2000 15500 12/5/2001 2100
4/10/1998 0 6/30/1999 130400 9/18/2000 11500 12/6/2001 100
4/13/1998 17700 7/1/1999 99200 9/19/2000 4400 12/7/2001 2000
4/14/1998 16700 7/2/1999 43500 9/20/2000 10700 12/10/2001 14400
4/15/1998 20600 7/5/1999 0 9/21/2000 10100 12/11/2001 25700
4/16/1998 89600 7/6/1999 10600 9/22/2000 10900 12/12/2001 2500
4/17/1998 20600 7/7/1999 4700 9/25/2000 14400 12/13/2001 2100
4/20/1998 24600 7/8/1999 5900 9/26/2000 6700 12/14/2001 8300
4/21/1998 21400 7/9/1999 5300 9/27/2000 46100 12/17/2001 31400
4/22/1998 15000 7/12/1999 36200 9/28/2000 6600 12/18/2001 3200
4/23/1998 39800 7/13/1999 32600 9/29/2000 43400 12/19/2001 6600
4/24/1998 800 7/14/1999 23300 10/2/2000 2200 12/20/2001 17200
4/27/1998 9500 7/15/1999 23800 10/3/2000 16500 12/21/2001 5400
4/28/1998 3600 7/16/1999 78200 10/4/2000 9400 12/24/2001 14600
4/29/1998 13800 7/19/1999 39200 10/5/2000 16200 12/25/2001 0
4/30/1998 34400 7/20/1999 7400 10/6/2000 5600 12/26/2001 61300
5/1/1998 34000 7/21/1999 6800 10/9/2000 32500 12/27/2001 17400
5/4/1998 14100 7/22/1999 4900 10/10/2000 37500 12/28/2001 5000
5/5/1998 862000 7/23/1999 44300 10/11/2000 17500 12/31/2001 13600
5/6/1998 252200 7/26/1999 35300 10/12/2000 2900 1/1/2002 0
5/7/1998 58200 7/27/1999 9200 10/13/2000 9700 1/2/2002 39500
5/8/1998 67400 7/28/1999 1000 10/16/2000 9100 1/3/2002 1600
5/11/1998 11800 7/29/1999 19300 10/17/2000 3800 1/4/2002 4700
5/12/1998 107500 7/30/1999 1900 10/18/2000 8400 1/7/2002 800
5/13/1998 38200 8/2/1999 30900 10/19/2000 3800 1/8/2002 500
5/14/1998 24000 8/3/1999 20400 10/20/2000 6500 1/9/2002 0
5/15/1998 35900 8/4/1999 28100 10/23/2000 117500 1/10/2002 0
5/18/1998 46300 8/5/1999 19900 10/24/2000 20900 1/11/2002 0
5/19/1998 26700 8/6/1999 30300 10/25/2000 8400 1/14/2002 300
5/20/1998 31400 8/9/1999 28500 10/26/2000 59400 1/15/2002 12100
5/21/1998 36800 8/10/1999 40100 10/27/2000 34200 1/16/2002 0
5/22/1998 16900 8/11/1999 85100 10/30/2000 23300 1/17/2002 600
5/25/1998 0 8/12/1999 67200 10/31/2000 23500 1/18/2002 300
5/26/1998 60900 8/13/1999 1300600 11/1/2000 212400 1/21/2002 0
5/27/1998 40800 8/16/1999 712000 11/2/2000 29600 1/22/2002 200
5/28/1998 14000 8/17/1999 149900 11/3/2000 12800 1/23/2002 800
5/29/1998 29400 8/18/1999 302800 11/6/2000 87100 1/24/2002 16500
6/1/1998 3000 8/19/1999 134500 11/7/2000 6100 1/25/2002 1000
6/2/1998 18400 8/20/1999 126700 11/8/2000 17900 1/28/2002 0
6/3/1998 42400 8/23/1999 97800 11/9/2000 16400 1/29/2002 3000
6/4/1998 9700 8/24/1999 84200 11/10/2000 44700 1/30/2002 3900
6/5/1998 11400 8/25/1999 59300 11/13/2000 1000 1/31/2002 200
6/8/1998 36700 8/26/1999 122500 11/14/2000 23300 2/1/2002 700
6/9/1998 35400 8/27/1999 100700 11/15/2000 18800 2/4/2002 8900
6/10/1998 37900 8/30/1999 25500 11/16/2000 3500 2/5/2002 900
6/11/1998 28200 8/31/1999 86900 11/17/2000 10300 2/6/2002 2300
6/12/1998 54200 9/1/1999 81600 11/20/2000 8300 2/7/2002 300
6/15/1998 41700 9/2/1999 259700 11/21/2000 22700 2/8/2002 2500
6/16/1998 24100 9/3/1999 52200 11/22/2000 16200 2/11/2002 10500
6/17/1998 17500 9/6/1999 0 11/23/2000 0 2/12/2002 0
6/18/1998 38300 9/7/1999 33900 11/24/2000 500 2/13/2002 100
6/19/1998 19100 9/8/1999 74900 11/27/2000 0 2/14/2002 1000
6/22/1998 4700 9/9/1999 64000 11/28/2000 6700 2/15/2002 700
6/23/1998 27800 9/10/1999 158500 11/29/2000 4800 2/18/2002 0
6/24/1998 16800 9/13/1999 116300 11/30/2000 800 2/19/2002 4800
6/25/1998 22300 9/14/1999 24400 12/1/2000 54200 2/20/2002 1800
6/26/1998 17900 9/15/1999 92300 12/4/2000 3500 2/21/2002 3000
6/29/1998 30200 9/16/1999 970700 12/5/2000 65400 2/22/2002 0
6/30/1998 39900 9/17/1999 195700 12/6/2000 129000 2/25/2002 26700
7/1/1998 16200 9/20/1999 126200 12/7/2000 14800 2/26/2002 500
7/2/1998 8700 9/21/1999 76400 12/8/2000 27600 2/27/2002 0
7/3/1998 0 9/22/1999 69000 12/11/2000 15800 2/28/2002 2900
7/6/1998 11900 9/23/1999 68200 12/12/2000 23000 3/1/2002 0
7/7/1998 13200 9/24/1999 20600 12/13/2000 9200 3/4/2002 2700
7/8/1998 15900 9/27/1999 60100 12/14/2000 3600 3/5/2002 600
7/9/1998 57700 9/28/1999 18900 12/15/2000 3700 3/6/2002 300
7/10/1998 8100 9/29/1999 18000 12/18/2000 19400 3/7/2002 500
7/13/1998 20500 9/30/1999 28900 12/19/2000 71300 3/8/2002 0
7/14/1998 13100 10/1/1999 166600 12/20/2000 47400 3/11/2002 200
7/15/1998 19600 10/4/1999 26500 12/21/2000 48600 3/12/2002 5100
7/16/1998 9100 10/5/1999 54200 12/22/2000 114000 3/13/2002 0
7/17/1998 5800 10/6/1999 37300 12/25/2000 0 3/14/2002 2400
7/20/1998 11500 10/7/1999 50300 12/26/2000 76400 3/15/2002 1000
7/21/1998 12200 10/8/1999 10200 12/27/2000 173300 3/18/2002 700
7/22/1998 30300 10/11/1999 20600 12/28/2000 62400 3/19/2002 600
7/23/1998 15900 10/12/1999 24000 12/29/2000 87600 3/20/2002 18100
7/24/1998 14200 10/13/1999 23800 1/1/2001 0 3/21/2002 6900
7/27/1998 11800 10/14/1999 108900 1/2/2001 6200 3/22/2002 200
7/28/1998 7900 10/15/1999 43400 1/3/2001 3200
7/29/1998 25800 10/18/1999 35000 1/4/2001 6000
7/30/1998 8500 10/19/1999 26000 1/5/2001 16600
7/31/1998 12800 10/20/1999 23200 1/8/2001 10900
8/3/1998 5300 10/21/1999 67400 1/9/2001 0
8/4/1998 56700 10/22/1999 37000 1/10/2001 17400
8/5/1998 19200 10/25/1999 78500 1/11/2001 2000
8/6/1998 17000 10/26/1999 16800 1/12/2001 0
8/7/1998 19600 10/27/1999 104700 1/15/2001 0
8/10/1998 21300 10/28/1999 46900 1/16/2001 38600
8/11/1998 3800 10/29/1999 40200 1/17/2001 17700
8/12/1998 13700 11/1/1999 12200 1/18/2001 14900
8/13/1998 26700 11/2/1999 83300 1/19/2001 1800
8/14/1998 14000 11/3/1999 28100 1/22/2001 3400
8/17/1998 4200 11/4/1999 72900 1/23/2001 7200
8/18/1998 17300 11/5/1999 63800 1/24/2001 3000
8/19/1998 9500 11/8/1999 246800 1/25/2001 500
8/20/1998 5000 11/9/1999 52100 1/26/2001 2000
8/21/1998 15400 11/10/1999 47900 1/29/2001 10000
8/24/1998 19500 11/11/1999 98000 1/30/2001 5000
8/25/1998 45200 11/12/1999 218500 1/31/2001 1700
8/26/1998 51300 11/15/1999 443300 2/1/2001 1000
8/27/1998 35900 11/16/1999 169100 2/2/2001 1200
8/28/1998 13600 11/17/1999 110300 2/5/2001 2800
8/31/1998 16300 11/18/1999 51100 2/6/2001 21200
9/1/1998 26200 11/19/1999 29000 2/7/2001 14000
9/2/1998 5500 11/22/1999 76700 2/8/2001 11200
9/3/1998 21800 11/23/1999 26900 2/9/2001 14000
9/4/1998 38600 11/24/1999 73000 2/12/2001 0
9/7/1998 0 11/25/1999 0 2/13/2001 1300
9/8/1998 13800 11/26/1999 54500 2/14/2001 44700
9/9/1998 211100 11/29/1999 151700 2/15/2001 81000
9/10/1998 31500 11/30/1999 104300 2/16/2001 13000
9/11/1998 44400 12/1/1999 21000 2/19/2001 0
9/14/1998 231500 12/2/1999 11100 2/20/2001 1300
9/15/1998 51900 12/3/1999 34800 2/21/2001 2000
9/16/1998 29000 12/6/1999 95500 2/22/2001 5600
9/17/1998 98000 12/7/1999 9000 2/23/2001 17500
9/18/1998 169800 12/8/1999 38700 2/26/2001 100
9/21/1998 124000 12/9/1999 117700 2/27/2001 200
9/22/1998 96400 12/10/1999 23600 2/28/2001 4200
9/23/1998 57300 12/13/1999 73600 3/1/2001 4000
9/24/1998 10500 12/14/1999 64900 3/2/2001 10500
9/25/1998 8200 12/15/1999 24300 3/5/2001 0
9/28/1998 12700 12/16/1999 34000 3/6/2001 6800
9/29/1998 5400 12/17/1999 49700 3/7/2001 9000
9/30/1998 10700 12/20/1999 135200 3/8/2001 20700
10/1/1998 7200 12/21/1999 97600 3/9/2001 800
10/2/1998 22500 12/22/1999 103700 3/12/2001 1600
10/5/1998 18600 12/23/1999 31400 3/13/2001 400
10/6/1998 84900 12/24/1999 0 3/14/2001 35600
10/7/1998 227800 12/27/1999 70500 3/15/2001 1100
10/8/1998 326600 12/28/1999 102900 3/16/2001 4100
10/9/1998 34900 12/29/1999 20500 3/19/2001 5800
10/12/1998 7500 12/30/1999 76100 3/20/2001 1600
10/13/1998 67500 12/31/1999 107700 3/21/2001 3600
10/14/1998 30200 1/3/2000 44800 3/22/2001 7000
10/15/1998 30300 1/4/2000 45700 3/23/2001 4500
10/16/1998 49600 1/5/2000 104400 3/26/2001 5200
10/19/1998 8500 1/6/2000 47200 3/27/2001 62000
10/20/1998 88800 1/7/2000 23300 3/28/2001 3800
10/21/1998 3400 1/10/2000 22000 3/29/2001 6500
10/22/1998 432200 1/11/2000 22300 3/30/2001 9900
10/23/1998 136700 1/12/2000 95900 4/2/2001 200
10/26/1998 102900 1/13/2000 46900 4/3/2001 5600
10/27/1998 167900 1/14/2000 135600 4/4/2001 6300
10/28/1998 35000 1/17/2000 0 4/5/2001 100
10/29/1998 22300 1/18/2000 45000 4/6/2001 0
10/30/1998 115200 1/19/2000 97300 4/9/2001 300
</Table>
FIRSTCITY FINANCIAL CORPORATION 26 KEEFE, BRUYETTE & WOODS, INC.
EXCHANGE OFFER VALUATION
FIRSTCITY FINANCIAL CORPORATION 27 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 $1.14, indicating $2.28 per preferred
share in value (OR $12.28 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 $1.14, indicating $3.42 per preferred
share in value (OR $11.42 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
$11.85 (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 $1.14.
o Current FCFCO preferred stock price is $7.10.
o 1,222,901 preferred shares outstanding pre-Exchange Offer.
o Pro forma book value per FCFC common share is $3.16.
o All other Restructuring transactions close as contemplated
FIRSTCITY FINANCIAL CORPORATION 28 KEEFE, BRUYETTE & WOODS, INC.
EXCHANGE OFFER VALUATION
Valuation Table
($ 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 ($10.00 CASH, 2 COMMON SHARES)
FCFC Common Last Price $10.00 $2.28 $12.28 73% 62% 47% 46% 45%
POST RESTRUCTURING 50.0% $10.00 $3.16 $13.16 85% 74% 50% 49% 48%
PRICE-TO-PRO-FORMA- 66.7% $10.00 $4.22 $14.22 100% 87% 54% 53% 52%
BOOK OF FCFC 75.0% $10.00 $4.75 $14.75 108% 94% 56% 55% 54%
90.0% $10.00 $5.70 $15.70 121% 107% 60% 59% 57%
100.0% $10.00 $6.33 $16.33 130% 115% 62% 61% 60%
EXCHANGE OFFER CHOICE B ($8.00 CASH, 3 COMMON SHARES)
FCFC Common Last Price $8.00 $3.42 $11.42 61% 51% 44% 43% 42%
50.0% $8.00 $4.75 $12.75 80% 68% 49% 48% 47%
POST RESTRUCTURING 66.7% $8.00 $6.33 $14.33 102% 89% 55% 54% 52%
PRICE-TO-PRO-FORMA- 75.0% $8.00 $7.12 $15.12 113% 99% 58% 56% 55%
BOOK OF FCFC 90.0% $8.00 $8.54 $16.54 133% 118% 63% 62% 61%
100.0% $8.00 $9.49 $17.49 146% 131% 67% 65% 64%
TOTAL EXCHANGE OFFER
FCFC Common Last Price $9.00 $2.85 $11.85 67% 56% 45% 44% 43%
50.0% $9.00 $3.96 $12.96 82% 71% 49% 48% 47%
66.7% $9.00 $5.27 $14.27 101% 88% 54% 53% 52%
POST RESTRUCTURING 75.0% $9.00 $5.93 $14.93 110% 97% 57% 56% 55%
PRICE-TO-PRO-FORMA- 90.0% $9.00 $7.12 $16.12 127% 113% 61% 60% 59%
BOOK OF FCFC 100.0% $9.00 $7.91 $16.91 138% 123% 64% 63% 62%
</Table>
Note: Last trade of FCFC Preferred is $7.10, 30-day average is $7.58, legal
claim at 12/31/01 is $26.25
FIRSTCITY FINANCIAL CORPORATION 29 KEEFE, BRUYETTE & WOODS, INC.
LIQUIDATION ANALYSIS
FIRSTCITY FINANCIAL CORPORATION 30 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 Low, Mid, and High levels assume assets sold in orderly
fashion
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 31 KEEFE, BRUYETTE & WOODS, INC.
LIQUIDATION ANALYSIS
Asset Sale Approach
o The majority of FCFC's assets are illiquid, there is no readily
available market for them, thus, book value is likely the best- case
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. 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.
o Given the fact that FirstCity would no longer exist under a
liquidation scenario, a) asset buyers would not have any financial
backing to representations and warranties, and b) the servicing agent
would no longer be able to perform its duties. BOTH (a) AND (b) WOULD
PUSH ASSET SALE PRICES TOWARD THE MID AND LOW POINTS IN THE ANALYSIS
TO FOLLOW.
FIRSTCITY FINANCIAL CORPORATION 32 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 33 KEEFE, BRUYETTE & WOODS, INC.
LIQUIDATION ANALYSIS
Asset Sale Approach
o As can be seen below, only our "High" expectations for asset sale
prices, which are aggressive, 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.
o If equal probability weightings are applied to the Low, Mid, and High
values, the expected value for Preferred shareholders would be $1.83.
<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 34 KEEFE, BRUYETTE & WOODS, INC.
FINANCIAL SERVICES "GOING PRIVATE" TRANSACTIONS
FIRSTCITY FINANCIAL CORPORATION 35 KEEFE, BRUYETTE & WOODS, INC.
FINANCIAL SERVICES GOING PRIVATE TRANSACTIONS
Summary Information & Premiums Paid
<Table>
<Caption>
FINANCIAL TYPE OF ANNOUNCEMENT TENDER PRICE ONE DAY
COMPANY NAME STATE SECTOR SECURITY DEAL VALUE DATE OFFER PRICE PRIOR TO ANN.
- ------------ ----- --------- -------- ---------- ------------ ----------- -------------
BancWest Corporation CA Bank Common Stock $ 2,438,200 05/07/2001 $ 35.00 $ 24.98
FVNB Corporation TX Bank Common Stock 16,875 04/27/2001 45.00 34.85
Essex Bancorp, Inc. VA Thrift Common Stock 1,538 01/31/2001 1.45 1.40
Impac Commercial Holdings, Inc. MD Real Estate Common Stock 41,410 10/13/2000 7.55 7.37
National Discount Brokers Group NJ Broker Common Stock 857,906 10/09/2000 49.00 25.25
BNC Mortgage, Inc. CA Mortgage Common Stock 52,565 02/04/2000 10.00 7.38
Bankatlantic Bancorp, Inc. FL Thrift Common Stock 39,581 01/14/2000 6.00 4.81
PIMCO Advisors Holdings L.P. CA Investments Common Stock 1,921,362 10/31/1999 38.75 34.69
Preferred Employers Holdings, Inc. FL Insurance Common Stock 16,122 09/16/1999 5.00 2.75
Hawaii National Bancshares, Inc. HI Bank Common Stock 31,995 05/04/1999 45.00 40.00
MEDIAN:
FIRSTCITY FINANCIAL CORPORATION TX ASSET PREFERRED STOCK 11,593 (A) 11.85 7.10
16,544 (b) 16.91 7.10
<Caption>
ONE DAY 30-DAY-AVG. 30-DAY-AVG.
COMPANY NAME PREMIUM PRIOR TO ANN. PREMIUM
- ------------ ------- ------------- -----------
BancWest Corporation 40.1% $ 24.61 42.2%
FVNB Corporation 29.1% 33.41 34.7%
Essex Bancorp, Inc. 3.6% 1.24 16.7%
Impac Commercial Holdings, Inc. 2.4% 6.53 15.6%
National Discount Brokers Group 94.1% 31.04 57.9%
BNC Mortgage, Inc. 35.5% 6.57 52.2%
Bankatlantic Bancorp, Inc. 24.7% 4.88 23.0%
PIMCO Advisors Holdings L.P. 11.7% 33.52 15.6%
Preferred Employers Holdings, Inc. 81.8% 2.92 71.4%
Hawaii National Bancshares, Inc. 12.5% 40.75 10.4%
26.9% 28.8%
FIRSTCITY FINANCIAL CORPORATION 66.9% 7.58 56.2%
138.2% 7.58 123.0%
</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 36 KEEFE, BRUYETTE & WOODS, INC.
CASE STUDY COMPARISON:
DYNEX CAPITAL
FIRSTCITY FINANCIAL CORPORATION 37 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 38 KEEFE, BRUYETTE & WOODS, INC.
CASE STUDY COMPARISON: DYNEX CAPITAL
Relative Common Stock Performance: DX vs. FCFC
[PERFORMANCE GRAPH]
<Table>
<Caption>
Date FCFC (-96.1%) DX (-94.2%)
- ---- ------------- -----------
1/30/1998 100 100
2/6/1998 99.55947137 93.86792453
2/13/1998 99.11894273 97.16981132
2/20/1998 103.9647577 95.28301887
2/27/1998 108.8105727 93.39622642
3/6/1998 107.9295154 93.86792453
3/13/1998 107.4889868 98.11320755
3/20/1998 106.1674009 90.09433962
3/27/1998 106.1674009 90.56603774
4/3/1998 105.2863436 88.20754717
4/10/1998 106.6079295 90.56603774
4/17/1998 117.1806167 88.67924528
4/24/1998 112.7753304 89.62264151
5/1/1998 113.6563877 86.32075472
5/8/1998 110.1321586 86.79245283
5/15/1998 107.9295154 89.1509434
5/22/1998 104.4052863 86.79245283
5/29/1998 104.845815 90.09433962
6/5/1998 104.845815 87.26415094
6/12/1998 101.7621145 77.35849057
6/19/1998 100 77.83018868
6/26/1998 101.3215859 77.35849057
7/3/1998 99.55947137 80.18867925
7/10/1998 97.79735683 83.01886792
7/17/1998 99.11894273 78.77358491
7/24/1998 103.9647577 77.83018868
7/31/1998 99.55947137 75.47169811
8/7/1998 92.07048458 78.30188679
8/14/1998 87.2246696 80.66037736
8/21/1998 83.25991189 80.18867925
8/28/1998 63.65638767 77.35849057
9/4/1998 53.30396476 75.47169811
9/11/1998 46.25550661 65.56603774
9/18/1998 42.73127753 63.20754717
9/25/1998 58.14977974 63.67924528
10/2/1998 51.10132159 61.32075472
10/9/1998 45.81497797 35.8490566
10/16/1998 44.49339207 37.73584906
10/23/1998 46.25550661 45.28301887
10/30/1998 46.69603524 36.32075472
11/6/1998 45.81497797 33.49056604
11/13/1998 47.57709251 35.37735849
11/20/1998 48.89867841 37.26415094
11/27/1998 46.91629956 35.8490566
12/4/1998 42.2907489 36.32075472
12/11/1998 38.98678414 38.67924528
12/18/1998 38.76651982 34.90566038
12/25/1998 45.81497797 32.54716981
1/1/1999 45.59471366 34.90566038
1/8/1999 59.030837 41.50943396
1/15/1999 49.33920705 38.67924528
1/22/1999 48.45814978 40.56603774
1/29/1999 51.54185022 37.73584906
2/5/1999 47.57709251 34.90566038
2/12/1999 47.13656388 35.37735849
2/19/1999 44.05286344 26.41509434
2/26/1999 42.51101322 24.05660377
3/5/1999 38.76651982 22.64150943
3/12/1999 38.32599119 23.58490566
3/19/1999 36.12334802 23.58490566
3/26/1999 32.59911894 24.05660377
4/2/1999 33.03964758 26.88679245
4/9/1999 30.83700441 29.71698113
4/16/1999 37.00440529 25.94339623
4/23/1999 38.32599119 28.30188679
4/30/1999 37.44493392 22.16981132
5/7/1999 29.29515419 22.16981132
5/14/1999 21.58590308 21.69811321
5/21/1999 20.70484581 21.69811321
5/28/1999 22.46696035 23.58490566
6/4/1999 20.26431718 23.11320755
6/11/1999 21.58590308 20.75471698
6/18/1999 22.02643172 19.81132075
6/25/1999 20.26431718 18.39622642
7/2/1999 20.70484581 19.81132075
7/9/1999 21.58590308 19.33962264
7/16/1999 19.82378855 18.86792453
7/23/1999 20.4845815 17.45283019
7/30/1999 19.82378855 17.9245283
8/6/1999 18.50220264 23.82075472
8/13/1999 6.277709251 21.34433962
8/20/1999 6.828193833 22.16981132
8/27/1999 6.387665198 24.76415094
9/3/1999 5.726872247 24.88207547
9/10/1999 4.845814978 24.88207547
9/17/1999 3.524229075 18.75
9/24/1999 5.286343612 11.08490566
10/1/1999 5.726872247 11.91037736
10/8/1999 6.167400881 11.32075472
10/15/1999 5.286343612 12.26415094
10/22/1999 5.066079295 11.91037736
10/29/1999 4.515594714 12.26415094
11/5/1999 4.185022026 11.55660377
11/12/1999 7.929515419 15.80188679
11/19/1999 7.488986784 12.73584906
11/26/1999 7.929515419 12.85377358
12/3/1999 7.268722467 14.85849057
12/10/1999 6.277709251 12.02830189
12/17/1999 7.268722467 12.5
12/24/1999 9.251101322 11.43867925
12/31/1999 9.691629956 12.14622642
1/7/2000 8.370044053 16.74528302
1/14/2000 9.471365639 16.50943396
1/21/2000 11.01321586 16.27358491
1/28/2000 11.23348018 14.85849057
2/4/2000 12.33480176 18.04245283
2/11/2000 12.11453744 15.09433962
2/18/2000 9.691629956 13.08962264
2/25/2000 8.370044053 12.73584906
3/3/2000 8.370044053 13.20754717
3/10/2000 9.251101322 7.429245283
3/17/2000 9.691629956 7.547169811
3/24/2000 9.691629956 9.551886792
3/31/2000 8.370044053 10.61320755
4/7/2000 7.929515419 7.783018868
4/14/2000 6.167400881 6.839622642
4/21/2000 8.149779736 2.948113208
4/28/2000 7.488986784 2.948113208
5/5/2000 7.04845815 3.891509434
5/12/2000 7.488986784 2.476415094
5/19/2000 7.488986784 2.240566038
5/26/2000 7.488986784 2.476415094
6/2/2000 7.04845815 2.476415094
6/9/2000 7.929515419 2.830188679
6/16/2000 7.709251101 2.594339623
6/23/2000 7.04845815 3.183962264
6/30/2000 6.607929515 3.066037736
7/7/2000 6.167400881 2.712264151
7/14/2000 8.810572687 2.830188679
7/21/2000 8.810572687 2.712264151
7/28/2000 8.59030837 2.712264151
8/4/2000 9.691629956 2.358490566
8/11/2000 6.828193833 2.004716981
8/18/2000 6.607929515 1.061320755
8/25/2000 5.726872247 1.41509434
9/1/2000 7.268722467 3.183962264
9/8/2000 7.488986784 2.830188679
9/15/2000 7.04845815 2.948113208
9/22/2000 6.938502203 2.358490566
9/29/2000 6.718237885 2.476415094
10/6/2000 6.828193833 3.183962264
10/13/2000 6.938502203 2.358490566
10/20/2000 7.04845815 2.358490566
10/27/2000 6.828193833 2.240566038
11/3/2000 7.268722467 2.240566038
11/10/2000 7.709251101 2.476415094
11/17/2000 7.488986784 2.476415094
11/24/2000 6.883171806 2.476415094
12/1/2000 7.04845815 2.240566038
12/8/2000 7.04845815 2.004716981
12/15/2000 5.947136564 1.886792453
12/22/2000 4.625550661 1.768867925
12/29/2000 5.947136564 1.886792453
1/5/2001 6.607929515 1.886792453
1/12/2001 7.04845815 2.004716981
1/19/2001 6.607929515 2.004716981
1/26/2001 6.607929515 2.004716981
2/2/2001 5.837180617 1.245283019
2/9/2001 5.947136564 1.339622642
2/16/2001 4.845814978 1.490566038
2/23/2001 4.625550661 1.490566038
3/2/2001 5.066079295 1.698113208
3/9/2001 5.066079295 1.849056604
3/16/2001 4.185022026 2.358490566
3/23/2001 4.075066079 1.886792453
3/30/2001 4.405286344 1.886792453
4/6/2001 4.405286344 1.943396226
4/13/2001 4.581497797 2.075471698
4/20/2001 4.158590308 2.320754717
4/27/2001 4.581497797 2.396226415
5/4/2001 4.757709251 4.018867925
5/11/2001 5.286343612 3.886792453
5/18/2001 5.145374449 3.962264151
5/25/2001 5.110132159 4.528301887
6/1/2001 5.427312775 3.924528302
6/8/2001 5.991189427 3.867924528
6/15/2001 5.145374449 3.962264151
6/22/2001 5.991189427 3.754716981
6/29/2001 4.933920705 3.716981132
7/6/2001 4.933920705 3.981132075
7/13/2001 5.074889868 4.018867925
7/20/2001 5.110132159 3.981132075
7/27/2001 5.286343612 4.037735849
8/3/2001 5.462555066 4.075471698
8/10/2001 5.286343612 4.113207547
8/17/2001 5.814977974 4.547169811
8/24/2001 5.110132159 4.679245283
8/31/2001 6.341497797 4.358490566
9/7/2001 5.991189427 4.528301887
9/14/2001 5.63876652 4.377358491
9/21/2001 5.256740088 4.169811321
9/28/2001 6.167400881 4.622641509
10/5/2001 5.57215859 4.339622642
10/12/2001 5.603524229 4.603773585
10/19/2001 6.343612335 4.339622642
10/26/2001 6.028898678 4.547169811
11/2/2001 5.462555066 4.339622642
11/9/2001 5.814977974 4.471698113
11/16/2001 4.863436123 4.188679245
11/23/2001 4.264317181 4.226415094
11/30/2001 4.264317181 4.150943396
12/7/2001 4.234361233 3.943396226
12/14/2001 4.232599119 3.679245283
12/21/2001 4.054625551 3.679245283
12/28/2001 4.22907489 3.981132075
1/4/2002 5.356828194 4.075471698
1/11/2002 4.440528634 6.037735849
1/18/2002 4.22907489 5.735849057
1/25/2002 4.440528634 6.886792453
2/1/2002 4.22907489 6.622641509
2/8/2002 3.982378855 5.735849057
2/15/2002 4.052863436 6.226415094
2/22/2002 3.911894273 5.754716981
</Table>
FIRSTCITY FINANCIAL CORPORATION 39 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 40 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
------ ----------- ----- -------------------- ---------- ------------
TENDER Series A $16.80 $28.68 $14.10 58.6% 19.1% 3,575
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
TENDER Series A $12.24 $28.11 $11.25 43.5% 8.8% 6,120
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%
</Table>
COMPARISON OF FCFC EXCHANGE
<Table>
FCFCO(1) $11.85 $26.25 $ 7.10 45.1% 66.9% 11,593
FCFCO(2) $16.91 $26.25 $ 7.10 64.4% 138.2% 16,544
</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 41 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS:
AMRESCO & WILSHIRE FINANCIAL SERVICES GROUP
FIRSTCITY FINANCIAL CORPORATION 42 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 43 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS: AMRESCO
Relative Common Stock Performance: AMMB vs. FCFC
[PERFORMANCE GRAPH]
<Table>
<Caption>
Date FCFC (-95.6%) AMMBQ (-100.0%)
- ---- ------------- ---------------
1/30/1998 100 100
2/6/1998 99.6 99.7
2/13/1998 99.1 112
2/20/1998 104 105.8
2/27/1998 108.8 119.1
3/6/1998 107.9 113.6
3/13/1998 107.5 106.7
3/20/1998 106.2 115
3/27/1998 106.2 117.5
4/3/1998 105.3 119.1
4/10/1998 106.6 118.6
4/17/1998 117.2 131.4
4/24/1998 112.8 129.7
5/1/1998 113.7 129.2
5/8/1998 110.1 124.1
5/15/1998 107.9 121.5
5/22/1998 104.4 116.9
5/29/1998 104.8 119.1
6/5/1998 104.8 120.8
6/12/1998 101.8 115.5
6/19/1998 100 104.3
6/26/1998 101.3 109.4
7/3/1998 99.6 105.4
7/10/1998 97.8 97
7/17/1998 99.1 101.2
7/24/1998 104 101
7/31/1998 99.6 100.8
8/7/1998 92.1 93.7
8/14/1998 87.2 90.2
8/21/1998 83.3 67.5
8/28/1998 63.7 50.4
9/4/1998 53.3 46.1
9/11/1998 46.3 32.6
9/18/1998 42.7 32
9/25/1998 58.1 29.5
10/2/1998 51.1 22.4
10/9/1998 45.8 14.1
10/16/1998 44.5 20.3
10/23/1998 46.3 30
10/30/1998 46.7 24.5
11/6/1998 45.8 25.8
11/13/1998 47.6 29.5
11/20/1998 48.9 27.3
11/27/1998 46.9 26.7
12/4/1998 42.3 24.7
12/11/1998 39 22.6
12/18/1998 38.8 27.1
12/25/1998 45.8 30.4
1/1/1999 45.6 30.9
1/8/1999 59 43.4
1/15/1999 49.3 37.9
1/22/1999 48.5 40.1
1/29/1999 51.5 40.6
2/5/1999 47.6 35.7
2/12/1999 47.1 37.9
2/19/1999 44.1 34.8
2/26/1999 42.5 33.4
3/5/1999 38.8 36.2
3/12/1999 38.3 34.6
3/19/1999 36.1 31.5
3/26/1999 32.6 30.5
4/2/1999 33 27.3
4/9/1999 30.8 28
4/16/1999 37 24.9
4/23/1999 38.3 24.3
4/30/1999 37.4 22.9
5/7/1999 29.3 21.6
5/14/1999 21.6 23.4
5/21/1999 20.7 24.5
5/28/1999 22.5 24.3
6/4/1999 20.3 22.5
6/11/1999 21.6 15.4
6/18/1999 22 17.9
6/25/1999 20.3 21.2
7/2/1999 20.7 20.9
7/9/1999 21.6 21.2
7/16/1999 19.8 20.2
7/23/1999 20.5 21.6
7/30/1999 19.8 22.1
8/6/1999 18.5 21.2
8/13/1999 6.3 21.9
8/20/1999 6.8 26
8/27/1999 6.4 26.1
9/3/1999 5.7 22.5
9/10/1999 4.8 15.3
9/17/1999 3.5 12
9/24/1999 5.3 11
10/1/1999 5.7 10.1
10/8/1999 6.2 9.3
10/15/1999 5.3 9.9
10/22/1999 5.1 9.7
10/29/1999 4.5 10.4
11/5/1999 4.2 9
11/12/1999 7.9 6.4
11/19/1999 7.5 8.5
11/26/1999 7.9 7.1
12/3/1999 7.3 10.4
12/10/1999 6.3 7.3
12/17/1999 7.3 6.1
12/24/1999 9.3 5.3
12/31/1999 9.7 5
1/7/2000 8.4 5.5
1/14/2000 9.5 5
1/21/2000 11 4.9
1/28/2000 11.2 4.6
2/4/2000 12.3 4.7
2/11/2000 12.1 4.6
2/18/2000 9.7 4.9
2/25/2000 8.4 4.7
3/3/2000 8.4 4.7
3/10/2000 9.3 7.1
3/17/2000 9.7 6.1
3/24/2000 9.7 5.5
3/31/2000 8.4 4.7
4/7/2000 7.9 4.1
4/14/2000 6.2 3
4/21/2000 8.1 3.1
4/28/2000 7.5 3.1
5/5/2000 7 3.3
5/12/2000 7.5 2.6
5/19/2000 7.5 2.2
5/26/2000 7.5 2.1
6/2/2000 7 2.4
6/9/2000 7.9 2.2
6/16/2000 7.7 2.2
6/23/2000 7 2.2
6/30/2000 6.6 2
7/7/2000 6.2 1.8
7/14/2000 8.8 1.8
7/21/2000 8.8 1.8
7/28/2000 8.6 1.7
8/4/2000 9.7 1.2
8/11/2000 6.8 1.1
8/18/2000 6.6 1.1
8/25/2000 5.7 1.2
9/1/2000 7.3 0.7
9/8/2000 7.5 0.7
9/15/2000 7 1.2
9/22/2000 6.9 1.8
9/29/2000 6.7 1.9
10/6/2000 6.8 1.5
10/13/2000 6.9 1.2
10/20/2000 7 1.4
10/27/2000 6.8 1.4
11/3/2000 7.3 1.4
11/10/2000 7.7 1.4
11/17/2000 7.5 1.6
11/24/2000 6.9 1.4
12/1/2000 7 1.2
12/8/2000 7 1.1
12/15/2000 5.9 1.2
12/22/2000 4.6 0.9
12/29/2000 5.9 1
1/5/2001 6.6 1
1/12/2001 7 1
1/19/2001 6.6 1
1/26/2001 6.6 1
2/2/2001 5.8 1.1
2/9/2001 5.9 1
2/16/2001 4.8 1
2/23/2001 4.6 0.8
3/2/2001 5.1 0.9
3/9/2001 5.1 0.8
3/16/2001 4.2 1
3/23/2001 4.1 0.8
3/30/2001 4.4 1
4/6/2001 4.4 1.1
4/13/2001 4.6 0.9
4/20/2001 4.2 1.1
4/27/2001 4.6 0.9
5/4/2001 4.8 1
5/11/2001 5.3 1.2
5/18/2001 5.1 1
5/25/2001 5.1 0.8
6/1/2001 5.4 0.9
6/8/2001 6 0.9
6/15/2001 5.1 0.8
6/22/2001 6 0.7
6/29/2001 4.9 0.6
7/6/2001 4.9 0.6
7/13/2001 5.1 0.6
7/20/2001 5.1 0.6
7/27/2001 5.3 0
8/3/2001 5.5 0
8/10/2001 5.3 0
8/17/2001 5.8 0
8/24/2001 5.1 0
8/31/2001 6.3 0
9/7/2001 6 0
9/14/2001 5.6 0
9/21/2001 5.3 0
9/28/2001 6.2 0
10/5/2001 5.6 0
10/12/2001 5.6 0
10/19/2001 6.3 0
10/26/2001 6 0
11/2/2001 5.5 0
11/9/2001 5.8 0
11/16/2001 4.9 0
11/23/2001 4.3 0
11/30/2001 4.3 0
12/7/2001 4.2 0
12/14/2001 4.2 0
12/21/2001 4.1 0
12/28/2001 4.2 0
1/4/2002 5.4 0
1/11/2002 4.4 0
1/18/2002 4.2 0
1/24/2002 4.4 0
1/25/2002 4.4 0
</Table>
FIRSTCITY FINANCIAL CORPORATION 44 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%(4)
EXPECTED LIQUIDATION RECOVERY(5) 0% - 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) Implies that if a preferred stock existed at AMRESCO, similar to that of
FCFC, the recovery to the preferred would have been zero.
(5) KBW estimate range from Tab 6 for FCFC.
FIRSTCITY FINANCIAL CORPORATION 45 KEEFE, BRUYETTE & WOODS, INC.
ALTERNATIVE COMPARISONS: WILSHIRE FINANCIAL SERVICES GROUP
Relative Common Stock Performance: WFSG vs. FCFC
[PERFORMANCE GRAPH]
<Table>
<Caption>
Date FCFC (-95.6%) WFSG (-90.1%)
- ---- ------------- -------------
1/30/1998 100 100
2/6/1998 99.6 82.2
2/13/1998 99.1 84.9
2/20/1998 104 81.3
2/27/1998 108.8 84.9
3/6/1998 107.9 93.5
3/13/1998 107.5 90.9
3/20/1998 106.2 94.2
3/27/1998 106.2 94.2
4/3/1998 105.3 95.2
4/10/1998 106.6 96.2
4/17/1998 117.2 96.2
4/24/1998 112.8 94.2
5/1/1998 113.7 92.8
5/8/1998 110.1 89.9
5/15/1998 107.9 85.3
5/22/1998 104.4 81.5
5/29/1998 104.8 90.4
6/5/1998 104.8 87.5
6/12/1998 101.8 92.3
6/19/1998 100 96.2
6/26/1998 101.3 91.3
7/3/1998 99.6 88
7/10/1998 97.8 90.4
7/17/1998 99.1 89.4
7/24/1998 104 90.4
7/31/1998 99.6 81.3
8/7/1998 92.1 75
8/14/1998 87.2 69.2
8/21/1998 83.3 58.7
8/28/1998 63.7 45.2
9/4/1998 53.3 33.2
9/11/1998 46.3 34.9
9/18/1998 42.7 32.7
9/25/1998 58.1 25
10/2/1998 51.1 22.1
10/9/1998 45.8 15.9
10/16/1998 44.5 12.5
10/23/1998 46.3 9.9
10/30/1998 46.7 11.8
11/6/1998 45.8 10.1
11/13/1998 47.6 9.4
11/20/1998 48.9 7
11/27/1998 46.9 3.4
12/4/1998 42.3 3.2
12/11/1998 39 2.9
12/18/1998 38.8 2.6
12/25/1998 45.8 2.5
1/1/1999 45.6 2.4
1/8/1999 59 2.3
1/15/1999 49.3 2.3
1/22/1999 48.5 1.9
1/29/1999 51.5 1.2
2/5/1999 47.6 1.4
2/12/1999 47.1 1.4
2/19/1999 44.1 1.4
2/26/1999 42.5 1.4
3/5/1999 38.8 1.4
3/12/1999 38.3 1.4
3/19/1999 36.1 1.4
3/26/1999 32.6 1.4
4/2/1999 33 1.4
4/9/1999 30.8 1.4
4/16/1999 37 1.4
4/23/1999 38.3 1.4
4/30/1999 37.4 1.4
5/7/1999 29.3 1.4
5/14/1999 21.6 1.4
5/21/1999 20.7 1.4
5/28/1999 22.5 1.4
6/4/1999 20.3 1.4
6/11/1999 21.6 1.4
6/18/1999 22 1.4
6/25/1999 20.3 1.4
7/2/1999 20.7 1.4
7/9/1999 21.6 12.5
7/16/1999 19.8 9.6
7/23/1999 20.5 9.1
7/30/1999 19.8 4.8
8/6/1999 18.5 5
8/13/1999 6.3 6
8/20/1999 6.8 4.8
8/27/1999 6.4 5.3
9/3/1999 5.7 5.3
9/10/1999 4.8 6.5
9/17/1999 3.5 5.8
9/24/1999 5.3 4.8
10/1/1999 5.7 4.7
10/8/1999 6.2 5
10/15/1999 5.3 5.3
10/22/1999 5.1 5.5
10/29/1999 4.5 5.5
11/5/1999 4.2 4.7
11/12/1999 7.9 4.4
11/19/1999 7.5 4.1
11/26/1999 7.9 4.3
12/3/1999 7.3 7
12/10/1999 6.3 5.9
12/17/1999 7.3 5
12/24/1999 9.3 5
12/31/1999 9.7 5.3
1/7/2000 8.4 5
1/14/2000 9.5 4.8
1/21/2000 11 4.3
1/28/2000 11.2 3.8
2/4/2000 12.3 3.8
2/11/2000 12.1 4.1
2/18/2000 9.7 4.1
2/25/2000 8.4 4.3
3/3/2000 8.4 3.8
3/10/2000 9.3 3.8
3/17/2000 9.7 3.6
3/24/2000 9.7 3.1
3/31/2000 8.4 3.1
4/7/2000 7.9 3.6
4/14/2000 6.2 4.3
4/21/2000 8.1 4
4/28/2000 7.5 4.3
5/5/2000 7 4.3
5/12/2000 7.5 4.8
5/19/2000 7.5 4.6
5/26/2000 7.5 6
6/2/2000 7 6.3
6/9/2000 7.9 5.3
6/16/2000 7.7 5.3
6/23/2000 7 6.3
6/30/2000 6.6 5.8
7/7/2000 6.2 5.3
7/14/2000 8.8 4.3
7/21/2000 8.8 4.7
7/28/2000 8.6 4.8
8/4/2000 9.7 4.6
8/11/2000 6.8 4.3
8/18/2000 6.6 4.3
8/25/2000 5.7 4.6
9/1/2000 7.3 6
9/8/2000 7.5 6
9/15/2000 7 6
9/22/2000 6.9 6.3
9/29/2000 6.7 5.3
10/6/2000 6.8 5.3
10/13/2000 6.9 5
10/20/2000 7 5.2
10/27/2000 6.8 4.7
11/3/2000 7.3 4.8
11/10/2000 7.7 4.3
11/17/2000 7.5 4.3
11/24/2000 6.9 4.6
12/1/2000 7 4.4
12/8/2000 7 4.6
12/15/2000 5.9 4.6
12/22/2000 4.6 4.3
12/29/2000 5.9 4.8
1/5/2001 6.6 4.6
1/12/2001 7 4.7
1/19/2001 6.6 4.9
1/26/2001 6.6 5
2/2/2001 5.8 6.1
2/9/2001 5.9 6.4
2/16/2001 4.8 6.5
2/23/2001 4.6 6.6
3/2/2001 5.1 6.6
3/9/2001 5.1 6.3
3/16/2001 4.2 6.3
3/23/2001 4.1 6.7
3/30/2001 4.4 6.7
4/6/2001 4.4 6.9
4/13/2001 4.6 7.8
4/20/2001 4.2 8
4/27/2001 4.6 8.2
5/4/2001 4.8 8.5
5/11/2001 5.3 8.5
5/18/2001 5.1 8.6
5/25/2001 5.1 9.3
6/1/2001 5.4 8.7
6/8/2001 6 8.5
6/15/2001 5.1 8.4
6/22/2001 6 7.7
6/29/2001 4.9 7.5
7/6/2001 4.9 7.5
7/13/2001 5.1 6.2
7/20/2001 5.1 6.9
7/27/2001 5.3 7.2
8/3/2001 5.5 7.2
8/10/2001 5.3 7.2
8/17/2001 5.8 7.3
8/24/2001 5.1 7.2
8/31/2001 6.3 7.2
9/7/2001 6 7.3
9/14/2001 5.6 7.2
9/21/2001 5.3 7.4
9/28/2001 6.2 7.2
10/5/2001 5.6 7.2
10/12/2001 5.6 6.9
10/19/2001 6.3 6.9
10/26/2001 6 7.1
11/2/2001 5.5 7.4
11/9/2001 5.8 7.3
11/16/2001 4.9 7.4
11/23/2001 4.3 7.4
11/30/2001 4.3 7.3
12/7/2001 4.2 7.3
12/14/2001 4.2 7.1
12/21/2001 4.1 7.3
12/28/2001 4.2 7.9
1/4/2002 5.4 8.1
1/11/2002 4.4 9
1/18/2002 4.2 10.3
1/24/2002 4.4 10.3
1/25/2002 4.4 9.9
</Table>
FIRSTCITY FINANCIAL CORPORATION 46 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 EMERGENCE
INVESTORS PREFERRED NOTES
LEGAL CLAIM $32 MILLION $199 MILLION
RECOVERY PERCENTAGE(3) 62% - 67% 37% - 42%(4)
EXPECTED LIQUIDATION RECOVERY(5) 0% - 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) Implies that if a preferred stock existed at WFSG, similar to that of FCFC,
the recovery percentage on the preferred would have been zero.
(5) KBW estimate range from Tab 6 for FCFC.
FIRSTCITY FINANCIAL CORPORATION 47 KEEFE, BRUYETTE & WOODS, INC.
KBW CONCLUSION
FIRSTCITY FINANCIAL CORPORATION 48 KEEFE, BRUYETTE & WOODS, INC.
CONCLUSION
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 favorable level of recovery of legal claim for the Preferred
holders, of the Exchange Offer, when compared to the recovery
results of transactions involving restructurings of comparable
companies, and specifically relative to positions within capital
structure.
o The liquidity provided to the Preferred holders, compared to the
current market, which provides little liquidity.
FIRSTCITY FINANCIAL CORPORATION 49 KEEFE, BRUYETTE & WOODS, INC.