Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On January 4, 2013, the Board of Directors of FirstCity Financial Corporation ("FirstCity") approved the election of Mark Horrell as Executive Vice President and Chief Operating Officer of FirstCity, succeeding Jim W. Moore who previously held the position of Chief Operating Officer. Mr. Horrell, 50, previously served as Senior Vice President of FirstCity since August 2011 and Vice President since 2008. Mr. Horrell primarily served as the co-head of the U.S. acquisition platform. Previous to his employment at FirstCity, Mr. Horrell spent 10 years as an organizing partner, principal and portfolio manager in various private investment fund vehicles focused on the purchase and management of a wide array of securities including fixed income and equity investment instruments. Prior to his fund creation and management tenure, Mr. Horrell served for 15 years as a commercial banker in various capacities at an Oklahoma commercial bank, including Investment Portfolio Manager and Loan Review Manager.

Also on January 4, 2013, the Board of Directors approved the election of Jim W. Moore as Senior Vice President of FirstCity. Mr. Moore, 62, previously served as Executive Vice President, Chief Operating Officer and Director of Servicing. Mr. Moore rejoined FirstCity in 2008 after spending the previous seven years with Santander Consumer USA Inc., formerly known as Drive Financial Services LP ("Drive"), a national subprime auto lender. Mr. Moore served in various capacities at Drive including Director of Securitizations, Chief Financial Officer, and Treasurer. Mr. Moore had a long-term association with FirstCity as a senior-level officer prior to the formation of Drive, which resulted as part of a sale to Bank of Scotland and reorganizations of FirstCity which occurred in 2000 and 2004. Mr. Moore's past experiences also include serving as the President of three different Texas commercial banks. Mr. Moore has more than 35 years of financial services and banking experience.

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