FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002, 2001 and 2000
F-22
The following table provides a reconciliation of the plan’s benefit obligations and fair value of plan assets for the
years ended December 31, 2002 and 2001, and a statement of the funded status as of December 31, 2002 and 2001:
       2002                    2001       
Reconciliation of benefit obligations:
Benefit obligation at January 1 $ 14,183,582 $ 11,885,661
Service cost – benefits earned during the period 994,630 847,620
Interest cost on projected benefit obligation 983,977 970,710
Actuarial loss 45,731 1,117,567
Benefits paid      (667,523)      (637,976)
Benefit obligation at December 31  15,540,397   14,183,582
Reconciliation of fair value of plan assets:
Fair value of plan assets at January 1 12,631,250 12,864,027
Actual return on plan assets (1,031,005) (337,724)
Employer contributions 726,989 742,923
Benefits paid     (667,523)      (637,976)
Fair value of plan assets at December 31  11,659,711  12,631,250
Funded status $ (3,880,686) $ (1,552,332)
Reconciliation of funded status to accrued
pension (liability) asset:
Funded status at December 31 $ (3,880,686) $ (1,552,332)
Unrecognized loss from past experience different than
     that assumed and effects of changes in assumptions 5,109,193 3,268,617
Additional minimum liability recorded  (2,409,795)            -
Unrecognized prior-service cost 193,975      211,935
Other         (36,644)            -        
Accrued pension (liability) asset $ (1,023,957) $  1,928,220
The Company recorded an additional minimum liability in the year ended December 31, 2002 to reflect the
underfunded status of the plan.  The accrued pension liability at December 31, 2002 represents the difference
between the fair value of plan assets and the accumulated benefit obligation.  The accumulated benefit obligation is
the actuarial present value of benefits attributed by the pension benefit formula to employee service rendered prior to
that date and based on current and past compensation levels.  The accumulated benefit obligation differs from the
projected benefit obligation in that it assumes no increase in future compensation.  The following table details the
financial statement captions affected by recording the minimum liability:
       2002                    2001       
Prepaid pension asset before adjustment $ 1,385,838 $1,928,220
Intangible asset recorded (included in other assets) (193,975) -
Minimum liability adjustment  (2,215,820)         -       
Accrued pension (liability) asset $(1,023,957) $1,928,220