text: FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES 
  Notes to Consolidated Financial Statements 
  December 31, 2002, 2001 and 2000 
  
  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: 
  
  Nature of Operations 
  
  First Financial Bankshares, Inc. (a Texas corporation) (“Bankshares”) is a financial holding company which owns 
  (through its wholly-owned Delaware subsidiary) all of the capital stock of ten banks located in Texas as of 
  December 31, 2002. Those subsidiary banks are First National Bank of Abilene; Hereford State Bank; First 
  National Bank, Sweetwater; Eastland National Bank; First Financial Bank, National Association, Cleburne; 
  Stephenville Bank & Trust Co.; San Angelo National Bank; Weatherford National Bank; First Financial Bank, 
  National Association, Southlake and City National Bank, Mineral Wells. Each subsidiary bank’s primary source of 
  revenue is providing loans and banking services to consumers and commercial customers in the market area in 
  which the subsidiary is located. 
  
  A summary of significant accounting policies of Bankshares and subsidiaries (collectively, the “Company”) applied 
  in the preparation of the accompanying consolidated financial statements follows. The accounting principles 
  followed by the Company and the methods of applying them are in conformity with both accounting principles 
  generally accepted in the United States of America and prevailing practices of the banking industry. 