OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2008
Estimated average burden
hours per response...0.5


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 4

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935
or Section 30(h) of the Investment Company Act of 1940

o Check this box if no longer
subject to Section 16.
Form 4 or Form 5
obligations may continue.
See Instruction 1(b).
1. Name and Address of Reporting
Person* (Last, First, Middle)		 2. Issuer Name and Ticker or Trading Symbol 5. Relationship of Reporting Person(s) to Issuer
(Check All Applicable)
  Sartain, James, T.
  FirstCity Financial Corporation (FCFC)
  x  Director
o  10% Owner		 x  Officer (give title below)
o  Other (specify below)
  6400 Imperial Drive
(Street)
 3. Date of Earliest Transaction
(MM/DD/YYYY)		   Officer: CEO <%=formData.OtherRelationshipDescription%>
    08/16/2006
6. Individual or Joint/Group Filing
(Check Applicable Line)
  Waco, TX 76712
(City)         (State)        (Zip)
 4. If Amendment, Date Original Filed
(MM/DD/YYYY)		  
x Form filed by One Reporting Person
o Form filed by More than One Reporting Person
   
     
                   
Reminder:   Report on a separate line for each class of securities beneficially owned directly or indirectly.
 
*   If the form is filed by more than one reporting person, see instruction 4(b)(v).
 

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security
(Instr. 3)		 2. Transaction
Date
(MM/DD/YYYY)		 2a. Deemed
Execution
Date, if any.
(MM/DD/YYYY)		 3. Transaction Code
(Instr. 8)		 4. Securities
Acquired (A) or
Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount
of Securities
Beneficially
Owned
Following
Reported
Transactions(s)
(Instr. 3 and 4)		 6. Ownership
Form:
Direct (D)
or
Indirect (I)
(Instr. 4)		 7. Nature of
Indirect
Beneficial
Ownership
(Instr. 4)
              Code V  Equity Swap   Amount (A)
or
(D)		 Price            
  Common Stock    08/18/2006  08/18/2006    P    No   1000    A    $10.35    488034    D     

Page 2


Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
  (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative
Security
(Instr. 3)		 2. Conversion or Exercise
Price of Derivative
Security		    3. Transaction
Date
(MM/DD/YYYY)		 3a. Deemed Execution
Date, if any
(MM/DD/YYYY)		 4. Transaction
Code
(Instr. 8)		 5. Number of
Derivative Securities
Acquired (A)
or
Disposed of (D)
(Instr. 3, 4 and 5)
                      Code V Equity
Swap		   Amount (A)/(D)

Page 3
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned - Continued
(e.g., puts, calls, warrants, options, convertible securities)
6. Date Exercisable and
Expiration Date
(MM/DD/YYYY)		 7. Title and Amount
of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative
Security
(Instr. 5)		 9. Number of Derivative
Securities Beneficially Owned
Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of
Derivative Security:
Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of
Indirect
Beneficial
Ownership
(Instr. 4)
  Date
Exercisable		 Expiration
Date		   Title Amount or
Number of
Shares		                        

Explanation of Responses:

Remarks:

James T. Sartain   8/18/2006
**Signature of Reporting Person		  
Date

**   Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
 
 

Page 4