FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002, 2001 and 2000
F-18
7. INCOME TAXES:
The Company files a consolidated federal income tax return.  Income tax expense (benefit) is comprised of the
following:
                      Year Ended December 31,                  
      2002              2001            2000     
Current federal income tax $14,280,038 $13,016,053 $12,966,837
Deferred federal income tax expense (benefit)        350,415      (188,982)      (304,240)
     Income tax expense $14,630,453 $12,827,071 $12,662,597
Income tax expense, as a percentage of pretax earnings, differs from the statutory federal income tax rate as follows:
                 As a Percent of Pretax Earnings              
      2002            2001            2000      
Statutory federal income tax rate 35.0 % 35.0 % 35.0 %
Reductions in tax rate resulting from
    interest income exempt from
    federal income tax (5.6)% (5.2)% (4.9)%
Other    0.7 %   0.6 %  0.8 %
Effective income tax rate 30.1 %  30.4 % 30.9 %