FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002, 2001 and 2000
F-19
The approximate effects of each type of difference that gave rise to the Company’s deferred tax assets and liabilities
at December 31, 2002 and 2001, are as follows:
     2002            2001      
Deferred tax assets-
Tax basis of loans in excess of financial statement basis $ 3,940,576 $3,766,408
Minimum liability in defined benefit plan 775,537 -
Recognized for financial reporting purposes but not
for tax purposes-
    Deferred compensation 686,098 590,462
    Write-downs and adjustments to other
        real estate owned and repossessed assets 133,000 112,000
Other deferred tax assets      343,527      258,448
Total deferred tax assets 5,878,738 4,727,318
         Deferred tax liabilities-
Financial statement basis of fixed assets in excess of
tax basis 1,442,962 1,334,565
Intangible asset amortization deductible for tax purposes,
but not for financial reporting purposes 832,527 -
Recognized for financial reporting purposes but not
for tax purposes:
    Accretion on investment securities 437,660 385,191
    Pension plan contributions 497,869 610,869
    Net unrealized gain on investment securities
         available-for-sale 6,908,875 2,219,581
Other deferred tax liabilities         71,334      225,429
Total deferred tax liabilities  10,191,227   4,775,635
Net deferred tax liability $(4,312,489) $    (48,317)
8. FAIR VALUE OF FINANCIAL INSTRUMENTS:
The Company is required to disclose the estimated fair value of its financial instrument assets and liabilities.  For the
Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial
instruments as defined.  Many of the Company’s financial instruments, however, lack an available trading market as
characterized by a willing buyer and willing seller engaging in an exchange transaction.
Estimated fair values have been determined by the Company using the best available data, as generally provided in
the Company’s regulatory reports, and an estimation methodology suitable for each category of financial
instruments.  For those loans and deposits with floating interest rates, it is presumed that estimated fair values
generally approximate the carrying value.