SOURCE: FirstCity Financial Corporation

March 17, 2008 07:45 ET

FirstCity Financial Reports Fourth Quarter and Full Year 2007 Results

WACO, TX--(Marketwire - March 17, 2008) - FirstCity Financial Corporation (NASDAQ: FCFC)

Highlights:

--  FirstCity reported 4th quarter
    2007 loss of $1.4 million or
    ($.12) per diluted share.
    Earnings for the year 2007
    were $2,185,000 or $0.19 per
    diluted share.
    
--  FirstCity's total investment
    level nears $150.0 million
    for 2007.
    
--  FirstCity liquidity is solid
    with additional borrowing
    capacity of $146 million.
    

Components of the quarterly results are detailed below (dollars in thousands except per share data):

                           Three Months Ended            Year Ended
                              December 31,              December 31,
                        ------------------------  ------------------------
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------
                                     (unaudited)               (unaudited)
Portfolio Asset
 Acquisition and
 Resolution             $       569  $     3,009  $    11,432  $    15,104
Corporate overhead *         (1,929)      (1,459)      (9,247)      (5,227)
                        -----------  -----------  -----------  -----------
Earnings (loss) from
 continuing operations       (1,360)       1,550        2,185        9,877
Loss from discontinued
 operations, net of
 taxes                           --           --           --          (75)
                        -----------  -----------  -----------  -----------
Net earnings (loss) to
 common stockholders    $    (1,360) $     1,550  $     2,185  $     9,802
                        ===========  ===========  ===========  ===========
Diluted earnings (loss)
 per common share       $     (0.12) $      0.13  $      0.19  $      0.83
                        ===========  ===========  ===========  ===========

Corporate overhead includes expenses related to the independent audit
committee investigation of $2.2 million in 2007 -- comprised of $1.2
million in the first quarter, $0.8 million in the second quarter and $0.2
million in the third quarter. The independent investigation concluded in
2007.

James T. Sartain, President and CEO of FirstCity, said, "While we are disappointed in our 2007 results, FirstCity is well positioned to take advantage of the growing investment opportunities we are seeing in the marketplace. We have liquidity, a well-rounded franchise and talented, seasoned asset managers to create significant value for FirstCity. These are the times we look for, where the growing supply of distressed assets translates into attractive margins. I am enthusiastic about the opportunities I see in 2008."

Portfolio Asset Acquisition and Resolution

The Company invested $19.4 million in portfolio acquisitions and other investments during the quarter. Earning assets totaled $243.6 million at quarter end.

Portfolio purchases are detailed below (in millions):

                         Portfolio Purchases
              ==========================================
                                                         FirstCity
                              Latin           FirstCity  Investment
              Domestic Europe America Total   Investment in Other   Total
              ======== ====== ======= ======= ========== ========== =======
2007
4th Quarter   $    5.3 $ 14.7 $   4.4 $  24.4 $     15.7 $      3.7 $  19.4
3rd Quarter       17.4    2.3      --    19.7       16.3        6.3    22.6
2nd Quarter       27.4    2.4    61.6    91.4       25.2        4.2    29.4
1st  Quarter      71.6    3.8     3.4    78.8       69.5        7.8    77.3
              ======== ====== ======= ======= ========== ========== =======
    YTD 2007  $  121.7 $ 23.2 $  69.4 $ 214.3 $    126.7 $     22.0 $ 148.7
              ======== ====== ======= ======= ========== ========== =======
2006
4th Quarter   $   34.6 $101.2 $   2.1 $ 137.9 $     70.2 $     16.8 $  87.0
3rd Quarter       35.4     --    56.1    91.5       31.5        3.7    35.2
2nd Quarter       24.2    1.0      --    25.2       19.0        7.0    26.0
1st  Quarter      42.4     --      --    42.4       23.3        0.7    24.0
              ======== ====== ======= ======= ========== ========== =======
Total Year
 2006         $  136.6 $102.2 $  58.2 $ 297.0 $    144.0 $     28.2 $ 172.2
              ======== ====== ======= ======= ========== ========== =======
Total Year
 2005         $   93.4 $ 37.2 $  16.0 $ 146.6 $     71.4 $      3.2 $  74.6
              ======== ====== ======= ======= ========== ========== =======
Total Year
 2004         $   91.2 $  9.8 $  73.1 $ 174.1 $     59.8 $       -- $  59.8
              ======== ====== ======= ======= ========== ========== =======

For the fourth quarter 2007, operating contribution from the Portfolio Asset Acquisition business was $0.6 million. The earnings were comprised primarily of $10.9 million in revenues, $2.6 million in equity in earnings of investments, and $13.0 million of expenses. The business generated 56% of the revenues (including equity in earnings of investments) from domestic investments, 26% from investments in Latin America, 18% from investments in Europe and less than 1% from investments in Canada.

The revenues for the fourth quarter were positively impacted by continued income streams from Portfolio Assets of $6.3 million, equity in earnings of investments of $2.6 million, servicing fees of $2.4 million, and interest income from loans receivable of $0.9 million.

Fourth quarter earnings were negatively impacted by $3.2 million of net provisions -- comprised of $1.1 million of provisions recorded to our wholly owned domestic portfolios, and $2.1 million recorded to portfolio assets held in our partnerships ($1.6 million of net provisions in domestic partnerships and $0.5 million in Latin American partnerships). For the full year, net provisions were $6.4 million -- comprised of $2.1 million recorded to our wholly owned portfolios and $4.3 million to portfolio assets held in our partnerships. The fourth quarter provisions reflected delays and declines in the expected cash flows of certain loan portfolios and real estate assets. Management regularly evaluates the collectibility of the Company's portfolio assets and may increase or decrease those values in future periods as the cash flows expected from those assets change.

Considering the recent deterioration of credit quality experienced by many banks, management believes that acquisition opportunities at attractive margins are on the rise. FirstCity's total investment level approximated $150.0 million in 2007, and the Company is currently evaluating 27 different transactions representing over $1.8 billion in face value of assets, although there can be no assurance that FirstCity will be able to consummate any of these transactions on acceptable terms.

The following tables detail the impact of net foreign currency gains (losses) on corporate earnings:

                                    Three Months Ended      Year Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
Illustration of the Effects of
 Currency                             2007      2006      2007      2006
                                    --------  --------  --------  --------
Fluctuations (dollars in thousands)     (unaudited)         (unaudited)
                                    ==================  ==================
Net earnings (loss) to Common
 Stockholders                       $ (1,360) $  1,550  $  2,185  $  9,802
Foreign currency gains (losses):
 Euro                                     97       287       882     1,068
 Mexican Peso                            127      (274)      (63)     (585)
 Argentine Peso                          (14)       29       (38)      (30)
 Canadian Dollar                           4      (106)      247      (112)
 Chilean Peso                             32        --        60        --
                                    ========  ========  ========  ========

Exchange rate at valuation date:
 Euro                                   0.68      0.76
 Mexican Peso                          10.87     10.88
 Argentine Peso                         3.15      3.07
 Canadian Dollar                        0.98      1.17
 Chilean Peso                         497.70     532.6

Other Corporate Matters

Share Repurchase Program

FirstCity initiated a stock repurchase program in 2006 providing for the repurchase of up to 1,000,000 shares of its common stock. Recently, the program was increased by 500,000 shares. To date, the Company has purchased 845,030 shares at an average cost of $9.60 per share (including 40,400 shares repurchased during the fourth quarter of 2007 and 264,530 shares repurchased since year-end). Share repurchases continue and signify management's assessment that the shares are undervalued in the market and represent a good investment alternative to enhance long term shareholder value.

Liquidity

FirstCity's ability to obtain financing for investment opportunities is strong and remains unhindered by the negative conditions witnessed recently in the financial services sector, as evidenced by FirstCity's ability to secure $125.0 million of total increases in its Bank of Scotland credit facilities during 2007. Management believes that the prospects for continued growth are strong based on existing acquisition opportunities and the stability of the Company's credit providers and availability under its lines of credit.

Conference Call

A conference call will be held on Monday, March 17, 2008 at 9:00 a.m. Central Time to discuss fourth quarter and fiscal year 2007 results. A question and answer session will follow the prepared remarks. Details to access the call and webcast are as follows:

Event:  FirstCity Financial Corporation Fourth Quarter 2007 Conference Call
Date:   Monday, March 17, 2008
Time:   9:00 a.m. Central Time
Host:   James T. Sartain, FirstCity's President and Chief Executive Officer

Web Access: FirstCity's web page -     www.fcfc.com/invest.htm or,
            CCBN's Investor websites - www.streetevents.com and,
                                       www.fulldisclosure.com

Dial In Access: Domestic  800-329-9097
                International 617-614-4929
                Pass code 63177991

Replay:  Available on FirstCity's web page (www.fcfc.com/invest.htm)

Forward-Looking Statements

Certain statements in this press release, which are not historical in fact, including, but not limited to, statements relating to future performance, may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, statements based on management's expectations and statements regarding revenues, earnings guidance and future projected cash collections, as well as any statement that may project, indicate or imply future results, performance or achievements, and may contain the words "expect," "intend," "plan," "estimate," "believe," "will be," "will continue," "will likely result," "indication" and similar expressions. Such statements inherently are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. There are many important factors that could cause the Company's actual results to differ materially.

These factors include, but are not limited to, the performance of the Company's subsidiaries and affiliates; availability of portfolio assets and other investment opportunities; the Company's ability to consummate portfolio acquisitions ad other investment transactions on acceptable terms; assumptions underlying portfolio asset performance; risks associated with start up of new businesses and entry into new foreign markets, risks associated with foreign operations; currency exchange rate fluctuations; interest rate risk; credit risk; risks of declining value of loans, collateral or assets; the degree to which the Company is leveraged; the Company's continued need for financing; availability of the Company's credit facilities; ability to obtain additional financing from the Bank of Scotland or any other lender; the impact of certain covenants in loan agreements of the Company and its subsidiaries; the ability of the Company to utilize net operating loss carry forwards; general economic, business and market conditions; foreign social and economic conditions; changes (legislative and otherwise) in the asset securitization industry; regulatory and accounting changes; fluctuation in residential and commercial real estate values; capital markets conditions, including the markets for asset-backed securities; uncertainties of any litigation arising from discontinued operations; factors more fully discussed and identified under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations;" and risk factors and other risks identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on March 17, 2008, as well as in the Company's other filings with the SEC.

Many of these factors are beyond the Company's control. In addition, it should be noted that past financial and operational performance of the Company is not necessarily indicative of future financial and operational performance. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements.

The forward-looking statements in this release speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

The Company is a diversified financial services company with operations dedicated to portfolio asset acquisition and resolution with offices in the U.S. and with affiliate organizations in Europe and Latin America. Its common stock is listed on the NASDAQ Global Select Market under the symbol "FCFC."

                      FirstCity Financial Corporation
                          Summary of Operations
                  (In thousands, except per share data)
                                (Unaudited)


                           Three Months
                              Ended                    Year Ended
                           December 31,                December 31,
                        2007          2006          2007          2006
                    ------------  ------------  ------------  ------------
Revenues:
  Servicing fees    $      2,382  $      2,724  $     10,390  $     12,906
  Income from
   Portfolio Assets        6,291         3,436        22,754        10,987
  Gain on sale of
   SBA loans held
   for sale, net              65            --           723            --
  Interest income
   from SBA loans            474            --         2,140            --
  Interest income
   from affiliates           147           309           560         1,498
  Interest income
   from loans
   receivable -
   other                     306           559         3,822           576
  Other income             1,367           574         3,267         2,420
                    ------------  ------------  ------------  ------------
    Total revenues        11,032         7,602        43,656        28,387
                    ------------  ------------  ------------  ------------
Expenses:
  Interest and fees
   on notes payable
   - other                 4,394         2,856        18,060         8,289
  Interest and fees
   on notes payable
   to affiliates              --            --            --            22
  Salaries and
   benefits                4,629         3,721        16,932        14,831
  Provision
   (recovery) for
   loan and
   impairment
   losses                  1,125           170         2,061           271
  Occupancy, data
   processing,
   property
   protection and
   other                   4,249         3,043        14,789         9,236
                    ------------  ------------  ------------  ------------
    Total expenses        14,397         9,790        51,842        32,649
                    ------------  ------------  ------------  ------------
Equity in earnings
 of investments            2,629         3,712        10,944        11,756
Gain on sale of
 subsidiaries and
 equity investments           --            54           207         2,459
                    ------------  ------------  ------------  ------------
Earnings (loss)
 from continuing
 operations before
 income
  taxes and
   minority
   interest                 (736)        1,578         2,965         9,953
 Income taxes               (415)          (61)         (781)         (173)
 Minority interest          (209)           33             1            97
                    ------------  ------------  ------------  ------------
Earnings (loss)
 from continuing
 operations               (1,360)        1,550         2,185         9,877
                    ------------  ------------  ------------  ------------
Discontinued
 operations
 Loss from
  operations of
  discontinued
  components                  --            --            --           (75)
 Income taxes                 --            --            --            --
                    ------------  ------------  ------------  ------------
 Loss from
  discontinued
  operations                  --            --            --           (75)
                    ------------  ------------  ------------  ------------
Net earnings        $     (1,360) $      1,550  $      2,185  $      9,802
                    ============  ============  ============  ============

Basic earnings per
 common share are
 as follows:
   Earnings (loss)
    from continuing
    operations      $      (0.14) $       0.14  $       0.20  $       0.89
   Discontinued
    operations      $         --  $         --  $         --  $      (0.01)
   Net earnings
    (loss) per
    common share    $      (0.14) $       0.14  $       0.20  $       0.88
   Wtd. avg. common
    shares
    outstanding           10,778        10,787        10,786        11,125

Diluted earnings
 per common share
 are as follows:
   Earnings (loss)
    from continuing
    operations      $      (0.12) $       0.13  $       0.19  $       0.84
   Discontinued
    operations      $         --  $         --  $         --  $      (0.01)
   Net earnings
    (loss) per
    common share    $      (0.12) $       0.13  $       0.19  $       0.83
   Wtd. avg. common
    shares
    outstanding           11,362        11,415        11,392        11,759



Selected Unaudited
 Balance Sheet Data
                    December 31,  December 31,
                            2007          2006
                    ------------  ------------
  Cash              $     23,546  $     18,472
  Earning Assets:
   Portfolio
    Assets, net          122,001       108,696
   Loans and
    interest
    receivable            26,574        29,311
   Equity
    investments           87,622       112,357
   Railroad assets         7,403            --
  Deferred tax
   asset, net             20,101        20,101
  Service fees
   receivable and
   other assets           10,872         8,726
                    ------------  ------------
   Total assets     $    298,119  $    297,663
                    ============  ============

  Notes payable -
   other            $    177,329  $    187,811
  Minority interest
   and other
   liabilities            13,967         5,959
                    ------------  ------------
   Total
    liabilities          191,296       193,770
   Total equity          106,823       103,893
                    ------------  ------------
   Total
    liabilities and
    equity          $    298,119  $    297,663
                    ============  ============



                      FirstCity Financial Corporation
                         Supplemental Information
                          (Dollars in thousands)
                                (Unaudited)


                                 Three Months Ended        Year Ended
                                    December 31,          December 31,
                                  2007       2006       2007       2006
                                ---------  ---------  ---------  ---------
Portfolio Asset Acquisition and
 Resolution:
 Summary Operating Statement
  Data
   Revenues                     $  10,945  $   7,470  $  43,217  $  27,522
   Equity in earnings of
    investments                     2,629      3,712     10,944     11,756
   Gain on sale of subsidiaries
    and equity investments             --         54        207      2,459
   Expenses                       (11,880)    (8,057)   (40,875)   (26,362)
                                ---------  ---------  ---------  ---------
   Operating contribution
    before provision for
    loan and impairment losses      1,694      3,179     13,493     15,375
   Provision for loan and
    impairment losses               1,125        170      2,061        271
                                ---------  ---------  ---------  ---------
    Operating contribution, net
     of direct taxes            $     569  $   3,009  $  11,432  $  15,104
                                =========  =========  =========  =========

 Aggregate purchase price of
  portfolios acquired:
  Acquisition partnerships
   Domestic                     $   5,309  $  34,653  $ 121,679  $ 136,596
   Latin America                    4,496      2,132     69,455     58,236
   Europe                          14,661    101,132     23,199    102,158
                                ---------  ---------  ---------  ---------
    Total                       $  24,466  $ 137,917  $ 214,333  $ 296,990
                                =========  =========  =========  =========


 Historical Acquisitions -      Purchase   FirstCity's
  Annual:                         Price    Investment
                                ---------- ----------
   2007                         $  214,333 $  126,714
   2006                            296,990    144,048
   2005                            146,581     71,405
   2004                            174,139     59,762
   2003                            129,192     22,944

                                 December   December
                                       31,        31,
                                      2007       2006
                                ---------- ----------
 Portfolio acquisition and
  resolution assets by region:
   Domestic                     $  163,078 $  158,147
   Latin America                    33,450     28,883
   Europe                           46,701     61,062
   Canada                              371      2,272
                                ---------- ----------
    Total                       $  243,600 $  250,364
                                ========== ==========


                                 Three Months Ended        Year Ended
                                    December 31,          December 31,
                                  2007       2006       2007       2006
                                ---------  ---------  ---------  ---------
 Revenues and equity in
  earnings of investments by
  region:
   Domestic                     $    7,632 $    5,719 $   33,850 $   22,063
   Latin America                     3,540      3,289     12,068     11,191
   Europe                            2,388      2,080      8,055      5,913
   Canada                               14         94        188        111
                                ---------- ---------- ---------- ----------
    Total                       $   13,574 $   11,182 $   54,161 $   39,278
                                ========== ========== ========== ==========

 Revenues and equity in
  earnings of investments by
  source:
   Equity earnings              $    2,629 $    3,712 $   10,944 $   11,756
   Income from Portfolio Assets      6,291      3,436     22,754     10,987
   Servicing fees                    2,382      2,724     10,390     12,906
   Gain on sale of SBA loans
    held for sale, net                  65         --        723         --
   Interest income from SBA
    loans                              474         --      2,140         --
   Interest income from
    affiliates                         147        309        560      1,498
   Interest income from loans
    receivable - other                 306        559      3,822        576
   Other                             1,280        442      2,828      1,555
                                ---------- ---------- ---------- ----------
    Total                       $   13,574 $   11,182 $   54,161 $   39,278
                                ========== ========== ========== ==========



                      FirstCity Financial Corporation
                         Supplemental Information
                          (Dollars in thousands)
                                (Unaudited)


                           Three Months Ended           Year Ended
                              December 31,              December 31,
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------
Analysis of Equity
 Investments
FirstCity's average
 investment
  Domestic              $    29,693  $    38,697  $    33,573  $    45,479
  Latin America              21,827       19,148       20,960       10,897
  Europe                     29,025       30,801       40,405       22,774
  Europe-Servicing
   subsidiaries               6,465        5,738        6,018        5,594
  Latin
   America-Servicing
   subsidiaries               4,453          282        3,588          233
                        -----------  -----------  -----------  -----------
   Total                $    91,463  $    94,666  $   104,544  $    84,977
                        ===========  ===========  ===========  ===========

FirstCity share of
 equity earnings:
  Domestic              $      (144) $     1,366  $     2,284  $     6,502
  Latin America                 495          127        1,310         (189)
  Europe                      1,653        1,623        5,948        4,614
  Europe-Servicing
   subsidiaries                 421          317        1,152          750
  Latin
   America-Servicing
   subsidiaries                 204          279          250           79
                        -----------  -----------  -----------  -----------
   Total                $     2,629  $     3,712  $    10,944  $    11,756
                        ===========  ===========  ===========  ===========

Selected Other Data:
Average investment in
 wholly owned portfolio
 assets
 and loans receivable:
  Domestic              $   139,469  $    95,629  $   147,545  $    66,381
  Latin America               6,714        8,962        7,952       12,479
  Europe                      5,628        3,500        4,431        2,475
  Canada                        369        2,286        1,255          703
                        -----------  -----------  -----------  -----------
   Total                $   152,180  $   110,377  $   161,183  $    82,038
                        ===========  ===========  ===========  ===========

Income from wholly
 owned portfolio assets
 and loans receivable:
  Domestic              $     6,686  $     3,595  $    27,452  $    11,392
  Latin America                 479          543        1,990        1,377
  Europe                        104           72          369          181
  Canada                         14           94          188          111
                        -----------  -----------  -----------  -----------
   Total                $     7,283  $     4,304  $    29,999  $    13,061
                        ===========  ===========  ===========  ===========

Servicing fee revenues:
  Domestic
   partnerships:
   Servicing fee
    revenue             $       316  $       600  $     2,429  $     3,398
   Average servicing
    fee %                       3.4%         3.1%         3.7%         3.0%
  Latin American
   partnerships:
   Servicing fee
    revenue             $     2,041  $     2,044  $     7,782  $     7,287
   Average servicing
    fee %                      14.5%        12.8%        13.6%         9.9%
  Incentive service
   fees                 $        --  $        80  $        --  $     2,221
  Total Service
   Fees-Portfolio
   Assets:
   Servicing fee
    revenue             $     2,357  $     2,724  $    10,211  $    12,906
   Average servicing
    fee %                      10.0%         7.7%         8.3%         6.9%
  Service Fees-SBA
   loans:               $        25  $        --  $       179  $        --
   Total Service Fees   $     2,382  $     2,724  $    10,390  $    12,906

Collections:
  Domestic              $     9,389  $    19,241  $    66,063  $   114,248
  Latin America              14,090       16,003       57,283       73,781
  Europe                     21,329       12,184       91,422       52,348
                        -----------  -----------  -----------  -----------
   Subtotal                  44,808       47,428      214,768      240,377
  Wholly-owned               25,071       17,146       85,888       48,116
                        -----------  -----------  -----------  -----------
          Total         $    69,879  $    64,574  $   300,656  $   288,493
                        ===========  ===========  ===========  ===========

Servicing portfolio
 (face value):
  Domestic              $   564,828  $   552,925
  Latin America           1,053,299    1,694,649
  Europe                  1,125,168    1,062,886
                        -----------  -----------
   Total                $ 2,743,295  $ 3,310,460
                        ===========  ===========

Number of personnel at
 period end:
  Domestic                       88           57
  Latin America                 118          119
  Corporate                      35           32
                        -----------  -----------
   Total personnel              241          208
                        ===========  ===========



                      FirstCity Financial Corporation
                    Schedule of Unrealized Gross Profit
                          As of December 31, 2007
                                (Unaudited)


 ($ in 000's)                           Book Value of Portfolio Assets (1)
                                        12/31/2005  12/31/2006  12/31/2007
                                        ==========  ==========  ==========
 Domestic                               $  115,081     161,670     151,802
 Europe                                     19,112      46,204      40,340
 Latin America                              18,949      13,826      26,844
                                        ----------  ----------  ----------
 Total                                  $  153,141     221,700     218,987
                                        ==========  ==========  ==========

                                        Estimated Remaining Collections (2)
                                        12/31/2005  12/31/2006  12/31/2007
                                        ==========  ==========  ==========
 Domestic                               $  170,153     215,987     195,845
 Europe                                     28,185      61,081      52,617
 Latin America                              34,556      50,866      68,900
                                        ----------  ----------  ----------
 Total                                  $  232,895     327,934     317,363
                                        ==========  ==========  ==========

                                           Unrealized Gross Profit (3)
                                        12/31/2005  12/31/2006  12/31/2007
                                        ==========  ==========  ==========

 Domestic                               $   55,073      54,317      44,043
 Europe                                      9,073      14,877      12,278
 Latin America                              15,608      37,040      42,056
                                        ----------  ----------  ----------
 Total                                  $   79,754     106,234      98,376
                                        ==========  ==========  ==========

                                                  Gross Profit %
                                        12/31/2005  12/31/2006  12/31/2007
                                        ==========  ==========  ==========
 Domestic                                     32.4%       29.1%       22.5%
 Europe                                       32.2%       24.4%       23.3%
 Latin America                                45.2%       56.0%       61.0%
 Total                                        34.2%       32.4%       31.0%

See attached bar graph.

(1) Book Value of Portfolio Assets represents FirstCity's share of the
unamortized purchase price of the portfolios held by the various
acquisition
entities that hold the portfolio some of which are consolidated and some
are
held through equity investments in partnership or similar arrangements.

(2) Estimated Remaining Collections represents the sum of all future
projected cash collections expected from the owned portfolios net of
certain
expenses.

(3) Unrealized Gross Profit represents the excess difference between the
Estimated Remaining Collections and the Book Value of Portfolio Assets.

Contact Information

  • Contact:
    Suzy W. Taylor
    866-652-1810