FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 2002, 2001 and 2000
F-25
To Be Well
Capitalized Under
For Capital Prompt Corrective
                Actual                    Adequacy Purposes:          Action Provisions:    
    Amount       Ratio       Amount       Ratio       Amount       Ratio   
As of December 31, 2001:
    Total Capital (to Risk-Weighted Assets):
      Consolidated $195,422,000 18% ≥$ 86,380,000 ≥ 8% N/A N/A
      First National Bank of Abilene $  65,676,000 17% ≥$ 31,594,000 ≥ 8% ≥$ 39,492,000 ≥ 10%
      San Angelo National Bank   $  27,945,000 20% ≥$ 10,925,000 ≥ 8% ≥$ 13,656,000 ≥ 10%
      Weatherford National Bank $  18,931,000 18% ≥$   8,624,000 ≥ 8% ≥$ 10,780,000 ≥ 10%
    Tier I Capital (to Risk-Weighted Assets):
      Consolidated $184,820,000 17% ≥$ 43,190,000 ≥ 4% N/A N/A
      First National Bank of Abilene $  61,895,000 16% ≥$ 15,797,000 ≥ 4% ≥$ 23,695,000 ≥   6%
      San Angelo National Bank $  26,672,000 20% ≥$   4,312,000 ≥ 4% ≥$   8,194,000 ≥   6%
      Weatherford National Bank $  18,019,000 17% ≥$   5,462,000 ≥ 4% ≥$   6,468,000 ≥   6%
    Tier I Capital (to Average Assets):
      Consolidated $184,820,000 10% ≥$ 56,060,000 ≥ 3% N/A N/A
      First National Bank of Abilene $  61,895,000 9% ≥$ 19,728,000 ≥ 3% ≥$ 32,880,000 ≥   5%
      San Angelo National Bank $  26,672,000 9% ≥$   8,800,000 ≥ 3% ≥$ 14,667,000 ≥   5%
      Weatherford National Bank $  18,019,000 9% ≥$   5,788,000 ≥ 3% ≥$   9,647,000 ≥   5%
15. STOCK OPTION PLAN:
The Company has an incentive stock plan to provide for the granting of options to senior management of the
Company at prices not less than market at the date of grant.  At December 31, 2002, the Company had allocated
740,690 shares of stock for issuance under the plan.  The plan provides that options granted are exercisable after two
years from date of grant at a rate of 20% each year cumulatively during the 10-year term of the option.  An analysis
of stock option activity for the years ended December 31, 2002, 2001, and 2000, is presented in the table and
narrative below:
                 2002                                  2 001                                2000                 
Wtd. Avg. Wtd. Avg. Wtd. Avg.
  Shares   Ex. Price   Shares    Ex. Price   Shares   Ex. Price  
    Outstanding, beginning of year 150,057 $21.60 174,959 $20.51 137,354 $20.18
    Granted 2,000   30.50 3,700 29.82 60,597 20.80
    Exercised (30,949) 18.52 (24,480) 14.57 (10,809) 14.98
    Canceled   (6,828)   23.48    (4,122)  24.95  (12,183 )  24.02
    Outstanding, end of year 114,280 $22.47 150,057 $21.60 174,959 $20.51
    Exercisable at end of year  57,825 $21.15  66,210 $18.94  70,872 $16.37
    Weighted average fair value of
        options granted at date of issue $6.06 $ 6.13 $4.44