text: Assets managed by the Trust Departments at First National 
  
  Bank of Abilene, San Angelo National Bank, Stephenville 
  
  Bank & Trust Co. and First National Bank, Sweetwater, 
  
  increased $27.3 million during the past year to a 
  
  December 31, 2002 book value of $986.2 million. However, 
  
  due to depressed stock market values and volumes, trust 
  
  department revenue declined in 2002. Trust combined 
  
  revenues for the year were down slightly from $5.89 mil- 
  
  lion in 2001 to $5.83 million for 2002. In 2003, we anticipate 
  
  a return to improved income growth. 
  
  The performance of the stock market the past three years 
  
  has been a challenge that our trust investment profes- 
  
  sionals have managed well. Not since 1939-1941 have 
  
  we seen the S&P 500 drop 35% in a three-year period. Our 
  
  portfolio managers outperformed their indices in Large 
  
  Cap stocks by 83 basis points and Fixed Income securi- 
  
  ties by 168 basis points. This performance bodes well for 
  
  the present and future of our client accounts. 
  
  During 2002, we saw a successful conversion of 
  
  Stephenville Bank & Trust to the SEI Corporation account- 
  
  ing system. In March 2003, we will be converting First 
  
  National Bank, Sweetwater, to this system as well. This will 
  
  TRUST ASSETS in millions 
  provide all First Financial Bankshares trust clients with the 
  
  strength and advantages of a uniform accounting system. 
  6 
  8 
  9 
  $ 
  9 
  5 
  9 
  $ 
  $1000 
  Other operational systems have been examined and con- 
  1 
  1 
  9 
  $ 
  5 
  4 
  8 
  $ 
  sistent practices and procedures have been implemented. 
  $900 
  
  4 
  7 
  7 
  $  $800 
  To further enhance our risk management assessments in 
  $700 
  2003, we will be introducing an Operational Peer Review 
  
  $600 
  Team similar to the successful peer review teams used in 
  
  the Personal Trust areas of our four locations.  $500 