FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
December 31, 2002, 2001 and 2000
The accompanying notes are an integral part of these consolidated financial statements.
F-5
      2002            2001            2000      
INTEREST INCOME:
Interest and fees on loans $   64,609,189 $   74,881,682 $ 75,474,661
Interest on investment securities:
Taxable 32,263,763 32,169,874 33,556,796
Exempt from federal income tax 7,042,102 6,279,973 5,770,861
Interest on federal funds sold and interest-bearing
deposits in banks          946,861       3,211,316     3,148,277
Total interest income   104,861,915   116,472,845 117,950,595
INTEREST EXPENSE:
Interest on deposits 24,087,911 43,970,532 47,737,862
Other          291,793          863,480     1,091,180
Total interest expense     24,379,704     44,834,012   48,829,042
Net interest income 80,482,211 71,638,833 69,121,553
PROVISION FOR LOAN LOSSES        2,369,634       1,964,050     2,397,750
Net interest income after provision for loan losses      78,112,577     69,674,783   66,723,803
NONINTEREST INCOME:
Trust department income 5,835,909       5,890,600       5,494,246
Service fees on deposit accounts 15,435,137 14,743,217 14,073,514
ATM fees 2,370,313 1,941,508 1,554,437
Real estate mortgage fees 1,858,378 1,609,518 1,021,590
Net gain on securities transactions 16,373     67,789 530,097
Other        4,036,366       3,325,858    3,273,445
Total noninterest income      29,552,476     27,578,490   25,947,329
NONINTEREST EXPENSE:
Salaries and employee benefits 31,992,733 28,685,294 27,077,436
Net occupancy expense 3,908,856 3,995,597 3,563,289
Equipment expense 4,800,768 4,457,909 4,180,782
Printing, stationary and supplies 1,474,683 1,084,134 882,470
Correspondent bank service charges 1,491,132 1,329,134 1,261,811
Amortization of intangible assets 135,156 1,641,367 1,641,367
Other expenses      15,278,722     13,878,262  13,085,333
Total noninterest expense      59,082,050     55,071,697   51,692,488
EARNINGS BEFORE INCOME TAXES 48,583,003 42,181,576 40,978,644
INCOME TAX EXPENSE      14,630,453     12,827,071   12,662,597
NET EARNINGS $    33,952,550 $  29,354,505 $28,316,047
NET EARNINGS PER SHARE, BASIC $               2.75 $            2.38 $          2.28
NET EARNINGS PER SHARE, ASSUMING DILUTION $               2.74 $            2.37 $          2.27