FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002, 2001 and 2000
F-23
Net periodic pension cost for the years ended December 31, 2002, 2001, and 2000, included:
                  Year Ended December 31,                
     2002        2001        2000    
Service cost - benefits earned during the period $  994,630 $  847,620 $  845,372
Interest cost on projected benefit obligation 983,977 970,710 816,583
Expected return on plan assets (880,562) (1,153,733) (1,058,787)
Amortization of unrecognized net loss    116,722         -              -     
Amortization of prior-service cost      17,960     17,961 17,961
Other       (59,405)      (58,954)      58,779
Net periodic pension cost $1,173,322 $  623,604 $  679,908
The following table sets forth the rates used in the actuarial calculations of the present value of benefit obligations
and the rate of return on plan assets:
2002 2001 2000
Weighted average discount rate 6.9% 6.9% 7.5%
Rate of increase in future compensation levels 4% 4% 4%
Expected long-term rate of return on assets 6.5% 8.5% 8.5%
As of December 31, 2002 and 2001, the fair value of the plan’s assets included Company common stock valued at
approximately $468,000 and $297,000, respectively.
The Company also provides a profit sharing plan, which covers substantially all full-time employees.  The profit
sharing plan is a defined contribution plan and allows employees to contribute up to 5% of their base annual salary.
Employees are fully vested to the extent of their contributions and become fully vested in the Company’s
contributions over a seven-year vesting period.  Costs related to the Company’s defined contribution plan totaled
approximately $2,681,000, $1,858,000 and $1,874,000 in 2002, 2001 and 2000, respectively, and are included in
salaries and employee benefits in the accompanying consolidated statements of earnings.  As of December 31, 2002
and 2001, the fair value of the plan’s assets included Company common stock valued at approximately $14,323,000
and $10,881,000, respectively.
13. DIVIDENDS FROM SUBSIDIARIES:
At December 31, 2002, approximately $20,728,000 was available for the declaration of dividends by the Company’s
subsidiary banks without the prior approval of regulatory agencies.
14. REGULATORY MATTERS:
The Company is subject to various regulatory capital requirements administered by the federal banking agencies.
Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary,
actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, each of Bankshares’
subsidiaries must meet specific capital guidelines that involve quantitative measures of the subsidiaries’ assets,
liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices.  The subsidiaries’
capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk
weightings, and other factors.