Wilshire Financial Services Group, Inc.

Ticker:	WFSG	1776 SW Madison St.
Exchange:	NASDAQ-National Market	Portland, Oregon 97205
Industry:	Financial	(503) 223-5600

Type of Shares:	Common Shares	Filing Date:	10/31/96
U.S. Shares:	1,500,000	Offer Date:	12/19/96
Non-U.S. Shares:	0	Filing Range:	$10.00 - $12.00
Primary Shares:	1,500,000	Offer Price:	$10.50
Secondary Shares:	0	Gross Spread:	$0.74
Offering Amount:	$16,500,000	Selling:	$0.44
Expenses:	-	Reallowance:	$0.10
Shares Out After:	7,000,000

Manager	Tier	Phone
Friedman, Billings, Ramsey & Co., Inc.	Lead Manager	(703) 312-9500

	Audited Income	Latest Unaudited Income	Prior Unaudited Income		Balance Sheet
	12/31/95	9/30/96	9/30/95		9/30/96
Revenue:	$27.49	$40.51	$19.79	Assets:	$533.11
Net Income:	$0.59	-$1.08	$0.84	Liabilities:	$498.56
EPS:	$25.09	-$14.05	$35.56	Equity:	$34.55
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year

Business Description

The company is a holding company formed to operate, the Wilshire group of companies. The company will engage in a variety of financial activities, including the acquisition, origination, ownership and securitization of loans and banking activities. Following the reorganization, WFSG will be the holding company for WAC, the Savings Banks, Wilshire Funding Corporation, a company formed to pursue loan acquisition and loan origination businesses similar to WCC following the Common Stock offering and the Notes Offering, and Wilshire Servicing Corporation, a company formed to engage in the loan servicing business following the receipt of necessary licenses. The company intends to build on the expertise of the Wilshire companies and aggressively pursue the acquisition of Loan Portfolios. The company evaluates Loan Portfolios based on anticipated future cash flow, available funding sources and minimum expected returns on equity.

Use of Proceeds

The proceeds from the proposed offering will be used to support leveraged acquisitions of loan portfolios and increase its savings bank's capital and for general corporate purposes, including expansion into Western Europe.

Last updated: 12/29/96