text: FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES 
  Notes to Consolidated Financial Statements 
  December 31, 2002, 2001 and 2000 
  
  The average recorded investment in impaired loans for the years ended December 31, 2002 and 2001, was 
  approximately $3,776,000 and $3,773,000, respectively. The Company had approximately $4,266,000 and 
  $4,824,000 in nonperforming assets at December 31, 2002 and 2001, respectively. No additional funds are 
  committed to be advanced in connection with impaired loans. 
  
  Interest payments received on impaired loans are recorded as interest income unless collections of the remaining 
  recorded investment are doubtful, at which time payments received are recorded as reductions of principal. The 
  Company recognized interest income on impaired loans of approximately $111,000, $136,000 and $213,000 during 
  the years ended December 31, 2002, 2001, and 2000, respectively, of which approximately $2,000, $9,000 and 
  $16,000 represented cash interest payments received and recorded as interest income. If interest on impaired loans 
  had been recognized on a full accrual basis during the years ended December 31, 2002, 2001, and 2000, 
  respectively, such income would have approximated $317,000, $399,000 and $449,000. 