FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002, 2001 and 2000
F-20
The estimated fair values, and carrying values at December 31, 2002 and 2001, were as follows:
                     2002                                              2001                       
Carrying Estimated Carrying Estimated
      Value       Fair Value        Value       Fair Value  
Cash and due from banks $108,436,645 $108,436,645 $112,150,214 $112,150,214
Federal funds sold 70,000,000 70,000,000 72,975,000 72,975,000
Interest-bearing deposits in banks 2,324,425 2,324,425 1,374,285 1,374,285
Investment securities 772,256,413 783,668,780 721,693,695 729,588,999
Net loans 952,821,044 964,782,729 929,528,556 938,431,998
Accrued interest receivable 15,360,833 15,360,833 17,636,608 17,636,608
Deposits with stated maturities   541,031,072  544,575,352  575,069,375  580,467,556
Deposits with no stated
maturities 1,170,531,144 1,170,531,144 1,110,093,223 1,110,093,223
Securities sold under agreements
to repurchase 26,708,994 26,708,994 19,847,067 19,847,067
Accrued interest payable 2,150,309 2,150,309 3,475,555 3,475,555
Financial instruments actively traded in a secondary market have been valued using quoted available market prices.
Financial instruments with stated maturities have been valued using a present value discounted cash flow with a
discount rate approximating current market for similar assets and liabilities.  Financial instrument assets with
variable rates and financial instrument liabilities with no stated maturities have an estimated fair value equal to both
the amount payable on demand and the carrying value.  Changes in assumptions or estimation methodologies may
have a material effect on these estimated fair values.
The Company’s remaining assets and liabilities, which are not considered financial instruments, have not been
valued differently than customary with historical cost accounting.
There is no material difference between the carrying value and the estimated fair value of the Company’s contractual
off-balance-sheet unfunded lines of credit, loan commitments and letters of credit which are generally priced at
market at the time of funding.
Reasonable comparability between financial institutions may not be likely due to the wide range of permitted
valuation techniques and numerous estimates which must be made given the absence of active secondary markets
for many of the financial instruments.  This lack of uniform valuation methodologies also introduces a greater
degree of subjectivity to these estimated fair values.
9. COMMITMENTS AND CONTINGENCIES:
The Company is engaged in legal actions arising from the normal course of business.  In management’s opinion, the
Company has adequate legal defenses with respect to these actions, and the resolution of these matters will have no
material adverse effects upon the results of operations or financial condition of the Company.
The Company leases a portion of its bank premises and equipment under operating leases.  At December 31, 2002,
future minimum lease commitments are not significant.
10. FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK:
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet
the financing needs of its customers.  These financial instruments include unfunded lines of credit, commitments to