FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002, 2001 and 2000
F-28
Condensed Statements of Cash Flows-
  For the Years Ended December 31, 2002, 2001, and 2000
      2002            2001            2000      
Cash flows from operating activities:
Net earnings $33,952,550 $29,354,505 $28,316,047
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Excess of earnings over
    dividends of subsidiary banks (8,479,939) (4,582,993) (7,383,516)
Depreciation 54,219 32,658 26,222
Discount accretion, net of premium amortization -       (4,667) (12,133)
Amortization of excess of cost over fair value
    of assets acquired -       55,576 55,576
Gain on sale of securities -       -       (530,097)
(Increase) decrease in other assets (215,435) 559,515 (178,092)
(Decrease) increase in liabilities   (1,041,688)     186,391     448,225
    Net cash provided by operating activities  24,269,707 25,600,985  20,742,232
Cash flows from investing activities:
Purchases of bank premises and equipment (50,481) (157,291) (2,266)
Activity in available-for-sale securities:
Sales -     -     530,097
Maturities -     10,000,000 -
Purchases -     -       (9,983,200)
Cash payment for stock acquisition             -     (16,500,000)             -     
    Net cash used in investing activities       (50,481) (6,657,291)   (9,455,369)
Cash flows from financing activities:
Proceeds of stock issuances 573,116         356,670         161,919
Acquisition of treasury stock -     (315,050) (3,925,069)
Cash dividends paid (16,052,983) (13,921,211) (12,543,863)
           Net cash used in financing activities (15,479,867) (13,879,591 ) (16,307,013)
Net increase (decrease) in cash and cash equivalents 8,739,359 5,064,103 (5,020,150)
Cash and cash equivalents, beginning of year   14,376,024   9,311,921  14,332,071
Cash and cash equivalents, end of year $23,115,383 $14,376,024 $ 9,311,921