text: FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES 
  Notes to Consolidated Financial Statements 
  December 31, 2002, 2001 and 2000 
  
  Stock Based Compensation 
  
  The Company grants stock options for a fixed number of shares to employees with an exercise price equal to the fair 
  value of the shares at the date of grant. The Company accounts for stock option grants using the intrinsic value 
  method prescribed by APB Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”). Under APB 
  25, because the exercise price of the Company’s employee stock options equals the market price of the underlying 
  stock on the date of grant, no compensation expense is recognized. Had compensation cost for the plan been 
  determined consistent with Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based 
  Compensation,” the Company’s net earnings and earnings per share would have been reduced by insignificant 
  amounts on a pro forma basis for the years ended December 31, 2002, 2001 and 2000. Note 15 provides additional 
  information on the Company’s stock option plan. 
  
  Stock Repurchase 
  
  On July 25, 2000, the Company approved a stock repurchase plan, authorizing the repurchase of up to 740,690 
  shares of the Company’s common stock. During the years ended December 31, 2001 and 2000, the Company 
  repurchased 9,900 and 126,100 shares, respectively. The treasury shares were purchased for $4,240,119, which 
  represented an average purchase price of $31.18 per share. The treasury shares were retired in 2001. 