text: FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES 
  Notes to Consolidated Financial Statements 
  December 31, 2002, 2001 and 2000 
  
  17. BUSINESS COMBINATION: 
  
  In July 2001, the Company purchased all of the outstanding stock of City Bancshares, Inc. (“City”) and its 
  subsidiary, City National Bank for $16,500,000 in cash. The total purchase price exceeded the estimated fair market 
  value of net assets acquired by approximately $7,800,000, of which approximately $950,000 was assigned to an 
  identifiable intangible asset with the balance recorded by the Company as goodwill. The identifiable intangible 
  asset represents the future benefit associated with the acquisition of the core deposits of City and is being amortized 
  over seven years utilizing a method that approximates the expected attrition of the deposits. 
  
  The primary purpose of the acquisition was to expand the Company’s market share in areas with close proximity to 
  Dallas/Ft. Worth, Texas. Factors that contributed to a purchase price resulting in goodwill include City’s 
  historically stable record of earnings, capable management and its geographic location, which complements the 
  Company’s existing service locations. Subsequent to the acquisition, the Company liquidated the stock of City and 
  City National Bank is operating as a subsidiary of the Company. The results of operations of City National Bank are 
  included in the consolidated earnings of the Company commencing July 1, 2001. 