Exhibit 99.1

FIRSTCITY FINANCIAL CORPORATION
PRO FORMA CONSOLIDATED BALANCE SHEET AT JUNE 30, 2004
(Dollars in thousands)
(Unaudited)

				Pro Forma Adjustments
	Historical			(A)			(B)			Other			Pro Forma
Assets
Assets:
Cash and cash equivalents	$	3,823		$	86,800		$	(85,148	)	$	(315	)(C)	$	5,160
Portfolio Assets, net		11,238			—			—			—			11,238
Loans receivable from Acquisition Partnerships held for investment		20,333			—			—			—			20,333
Equity investments		85,359			(25,824	)		—			—			59,535
Deferred tax asset, net		20,101			—			—			—			20,101
Service fees receivable from affiliates		1,033			—			—			—			1,033
Other assets, net		13,528			—			(800	)		(6,253	)(D)		6,475
Net assets of discontinued operations		5,527			—			—			—			5,527
Total Assets	$	160,942		$	60,976		$	(85,948	)	$	(6,568	)	$	129,402
Liabilities and Stockholders’ Equity
Liabilities:
Notes payable to affiliates	$	97,856		$	—		$	(79,854	)	$	—		$	18,002
Notes payable other		4,664			—			(3,944	)		—			720
Preferred stock subject to mandatory redemption		3,978			—			—			—			3,978
Minority interest		6,516			(5,160	)		—			—			1,356
Other liabilities		12,013			—			(337	)		—			11,676
Total Liabilities		125,027			(5,160	)		(84,135	)		—			35,732
Stockholders’ equity:
Common stock		112			—			—			—			112
Paid in capital		99,288			—			—			—			99,288
Accumulated deficit		(65,775	)		66,136			(1,813	)		(315	)(C)		(8,020	)
											(6,253	)(D)
Accumulated other comprehensive income		2,290			—			—			—			2,290
Total Stockholders’ Equity		35,915			66,136			(1,813	)		(6,568	)		93,670
Total Liabilities and Stockholders’ Equity	$	160,942		$	60,976		$	(85,948	)	$	(6,568	)	$	129,402

(A)	Record proceeds of sale of FirstCity’s 31% interest in Drive.
(B)	Record $83.8 million pay down of debt and interest, payment of $1.3 million of debt fees to Bank of Scotland and write-off $1.5 million of unamortized loan fees relating to the paid off debt (net of $.7 million on new loan fees capitalized).
(C)	Record $315 thousand estimated closing costs.
(D)	Record write-off remaining $6.3 million unamortized loan discount relating to the accrued participation liability owed to Bank of Scotland.

FIRSTCITY FINANCIAL CORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2004
(Dollars in thousands)
(Unaudited)

				Pro Forma
				Adjustments
	Historical			(A)			Pro Forma
Revenues:
Servicing fees from affiliates	$	6,748		$	—		$	6,748
Gain on resolution of Portfolio Assets		237			—			237
Equity in earnings of investments		16,969			(10,155	)		6,814
Interest income from affiliates		1,061			—			1,061
Interest income — other		136			—			136
Other income		1,782			—			1,782
Total revenues		26,933			(10,155	)		16,778
Expenses:
Interest and fees on notes payable to affiliates		4,797			(3,131	)		1,666
Interest and fees on notes payable — other		171			—			171
Interest on shares subject to mandatory redemption		133			—			133
Salaries and benefits		7,554			—			7,554
Provision for loan and impairment losses		22			—			22
Occupancy, data processing, communication and other		3,237			(4	)		3,233
Total expenses		15,914			(3,135	)		12,779
Earnings from continuing operations before income taxes and minority interest		11,019			(7,020	)		3,999
Provision for income taxes		(583	)		427			(156	)
Earnings from continuing operations before minority interest		10,436			(6,593	)		3,843
Minority interest		(2,038	)		2,029			(9	)
Earnings from continuing operations	$	8,398		$	(4,564	)	$	3,834
Earnings from continuing operations per common share are as follows:
Basic	$	0.75					$	0.34
Diluted	$	0.71					$	0.32
Weighted average common shares outstanding
Basic		11,216						11,216
Diluted		11,806						11,806

(A) To eliminate equity in earnings of Drive, interest expense, minority interest, taxes and other expenses from the Consumer business segment that would not have been incurred if the transaction had been completed at the beginning of the period. The elimination of $3.1 million of additional interest and fees on notes payable includes interest savings from paydown of $83.8 million x average rate of 6.52% ÷ 2 = $2,732 and amortization of loan fees of $399.

FIRSTCITY FINANCIAL CORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2003
(Dollars in thousands)
(Unaudited)

				Pro Forma
				Adjustments
	Historical			(A)			Pro Forma
Revenues:
Servicing fees from affiliates	$	15,051		$	—		$	15,051
Gain on resolution of Portfolio Assets		1,380			—			1,380
Equity in earnings of investments		21,411			(7,237	)		14,174
Interest income from affiliates		2,794			—			2,794
Interest income — other		533			—			533
Other income		1,560			—			1,560
Total revenues		42,729			(7,237	)		35,492
Expenses:
Interest and fees on notes payable to affiliates		7,567			(6,353	)		1,214
Interest and fees on notes payable — other		155			—			155
Interest on shares subject to mandatory redemption		133			—			133
Salaries and benefits		15,875			—			15,875
Provision for loan and impairment losses		98			—			98
Occupancy, data processing, communication and other		7,518			(27	)		7,491
Total expenses		31,346			(6,380	)		24,966
Earnings from continuing operations before income taxes and minority interest		11,383			(857	)		10,526
Provision for income taxes		(240	)		55			(185	)
Earnings from continuing operations before minority interest		11,143			(802	)		10,341
Minority interest		(1,436	)		1,446			10
Earnings from continuing operations	$	9,707		$	644		$	10,351
Earnings from continuing operations per common share are as follows:
Basic	$	0.86					$	0.92
Diluted	$	0.85					$	0.91
Weighted average common shares outstanding
Basic		11,200						11,200
Diluted		11,349						11,349

(A) To eliminate equity in earnings of Drive, interest expense, minority interest, taxes and other expenses from the Consumer business segment that would not have been incurred if the transaction had been completed at the beginning of the period. The elimination of $6.4 million of additional interest and fees on notes payable includes interest savings from paydown of $83.8 million x average rate of 6.66% = $5,582 and amortization of loan fees of $771.