/C O R R E C T I O N -- Southside Bancshares, Inc./

November 3, 2005

In the news release, Southside Bancshares, Inc. Announces Third Quarter Earnings, issued yesterday, Nov. 2, by Southside Bancshares, Inc. over PR Newswire, the first paragraph, first sentence, should read "Southside Bancshares, Inc. (Nasdaq: SBSI)" rather than "(Nasdaq: SBIB)" as incorrectly transmitted by PR Newswire. Complete, corrected release follows:

Southside Bancshares, Inc. Announces Third Quarter Earnings;
                    NASDAQ National Market Symbol - 'SBSI'

TYLER, Texas, Nov. 2 /PRNewswire-FirstCall/ -- B. G. Hartley, Chairman and Chief Executive Officer of Southside Bancshares, Inc. (Nasdaq: SBSI), reported financial results for the third quarter ended September 30, 2005.

For the third quarter ended September 30, 2005 Southside reported net income of $3,833,000, compared to $4,233,000 for the same period in 2004. The decrease in net income of $400,000, or 9.4%, is primarily a result of an increase in provision for loan losses of $485,000, or $320,000 net of tax and a reduction in income from the sale of available for sale securities of $351,000 or, $232,000 net of tax. The increase in provision for loan losses is primarily due to one recovery received during the third quarter ended September 30, 2004 of $299,000, or $197,000, net of tax, which offset the provision for losses that would have been required during that quarter. Earnings per fully diluted share were $0.32 for the third quarter ended September 30, 2005 compared to $0.35 for the same period in 2004.

Southside reported net income of $11,105,000 for the nine months ended September 30, 2005 compared to $12,399,000 for the same period in 2004. The decrease in net income of $1,294,000, or 10.4%, is a direct result of a reduction in income from the sale of available for sale securities, net of tax, of $1.6 million when comparing the nine months ended September 30, 2005, to the same period in 2004. When comparing the nine months ended September 30, 2005 with the same period in 2004, net income, excluding losses or gains on sales of available for sale securities, reflected an increase of $343,000, or 3.2%. Earnings per fully diluted share were $0.92 for the nine months ended September 30, 2005, compared to $1.02 for the same period in 2004, a decrease of $0.10, or 9.8%. Earnings per fully diluted share attributable to the sale of securities were $0.13 for the nine months ended September 30, 2004 compared to zero for the same period in 2005.

The annualized return on average shareholders' equity for the nine months ended September 30, 2005 was 14.17% compared to 15.94% for the same period in 2004. The annualized return on average assets was 0.88% for the nine months ended September 30, 2005, compared to 1.11% for the same period in 2004.

The Company continued to experience solid loan growth during the third quarter ended September 30, 2005, as loans, net of unearned discount, increased $19.9 million or 3.0%. During the nine months ended September 30, 2005, loans, net of unearned discount, increased $55.2 million or 8.8% from December 31, 2004. Loan growth during 2005 was actually stronger than reported due to the sale of $6.2 million of student loans during the second quarter ended June 30, 2005. Asset quality improved as non-performing assets decreased $1.2 million, or 34.5%, to $2.3 million at September 30, 2005 when compared to $3.5 million at December 31, 2004. We believe that the Company's asset quality ratios as reported in this earnings release remain sound.

We are pleased to report deposits continued to increase during the third quarter ended September 30, 2005 by $15.0 million. Overall during 2005, deposits increased $80.3 million, or 8.5%, to $1.0 billion at September 30, 2005 when compared to December 31, 2004. We are gratified deposits continue to grow at an excellent pace as a result of our expanding branch network and continued market penetration.

In the fourth quarter Southside anticipates opening its 31st banking center in Palestine, Texas, approximately 50 miles southwest of Tyler. The addition of the banking center in Palestine should complement and enhance Southside's southern expansion efforts which already includes banking centers in Jacksonville and Bullard. Southside has also purchased property in Gun Barrel City where it plans to open a branch facility in the future. While continued branch expansion has and will continue to impact short-term earnings, the Company believes the potential long-term benefits to the Company greatly outweigh the short-term expense.

The decrease in net income for the three months ended September 30, 2005, when compared to the same period in 2004, was primarily attributable to an increase in noninterest expense of $528,000, or 5.3%, an increase in provision for loan losses of $485,000, or 100% and a decrease in income from the sale of available for sale securities of $351,000, or 93.6%. Noninterest expense increased primarily as a result of a $443,000, or 7.0% increase in salaries and employee benefits due to higher staffing levels, salary increases and increases in retirement expense.

The following items partially offset the decrease in net income for the quarter ended September 30, 2005, when compared to the same period in 2004. Net interest income of $10.4 million for the third quarter 2005, increased $240,000, or 2.4%, over the third quarter 2004. Average total interest earning assets, the primary factor in net interest income growth, increased $181.4 million, or 12.7% from the third quarter 2004, to $1.6 billion for the third quarter 2005. This more than offset the decrease in the Company's net interest margin to 2.80% and net interest spread to 2.25% during the third quarter ended September 30, 2005, when compared to 3.10% and 2.66%, respectively, for the same period in 2004. Noninterest income, excluding gains on sales of securities, was $5.4 million for the third quarter 2005, an increase of $563,000, or 11.8%, over the third quarter 2004. The increase was primarily a result of an increase in deposit services fee income. Provision for federal tax expense of $921,000 for the third quarter 2005, decreased $161,000, or 14.9%, from third quarter 2004 as a result of a decrease in taxable income. The effective tax rate as a percentage of pre-tax income was 19.4% for the quarter ended September 30, 2005 compared to 20.4% for the quarter ended September 30, 2004. The decrease in the effective tax rate was due to the decrease in taxable income as a percentage of total income.

The decrease to net income during the nine months ended September 30, 2005, when compared to the same period in 2004 was primarily attributable to a decrease in gains on available for sale securities of $2.5 million, or 101.3% and an increase in noninterest expense of $2.2 million, or 7.4%. The decrease in net income for the nine months ended September 30, 2005, when compared to the same period in 2004, was partially offset by an increase in net interest income of $1.9 million, or 6.4%, an increase in noninterest income, excluding security gains, of $1.3 million, or 9.3%, and a decrease in federal income tax expense of $620,000, or 19.8%.

Southside Bancshares, Inc. is a $1.7 billion holding company that owns 100% of Southside Bank. The bank currently has thirty banking centers in East Texas.

To learn more about Southside Bancshares, Inc., please visit our investor relations website at http://www.southside.com/investor . Our investor relations site provides a detailed overview of our activities, financial information, and historical stock price data. To receive e-mail notification of company news, events, and stock activity, please register on the E-mail Notification portion of the website. Questions or comments may be directed to Susan Hill at (903) 531-7220, or susanh@southside.com

Certain statements of other than historical fact that are contained in this document and in written material, press releases and oral statements issued by or on behalf of Southside Bancshares, Inc., (the "Company") a bank holding company, may be considered to be "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may include words such as "expect," "estimate," "project," "anticipate," "believe," "could," "should," "may," "intend," "probability," "risk," "target," "objective," "plans," "potential," and similar expressions. Forward-looking statements are subject to significant risks and uncertainties and the Company's actual results may differ materially from the results discussed in the forward-looking statements. For example, certain market risk disclosures are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a result, actual income gains and losses could materially differ from those that have been estimated. Other factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to general economic conditions, either globally, nationally, in the State of Texas, or in the specific markets in which the Company operates, legislation or regulatory changes which adversely affect the businesses in which the Company is engaged, adverse changes in Government Sponsored Enterprises (the "GSE") status or financial condition impacting the GSE guarantees or ability to pay or issue debt, economic or other disruptions caused by acts of terrorism in the United States, Europe or other areas or military actions in Iraq, Afghanistan or other areas, changes in the interest rate yield curve such as flat, inverted or steep yield curves, or interest rate environment which impact interest margins and may impact prepayments on the mortgage-backed securities portfolio, changes impacting the leverage strategy, significant increases in competition in the banking and financial services industry, changes in consumer spending, borrowing and saving habits, technological changes, the Company's ability to increase market share and control expenses, the effect of changes in federal or state tax laws, the effect of compliance with legislation or regulatory changes, the effect of changes in accounting policies and practices and the costs and effects of unanticipated litigation.

                                               At          At          At
                                           Sept. 30,    Dec. 31,    Sept. 30,
                                              2005        2004         2004
                                                 (dollars in thousands)
                                                      (unaudited)
    Selected Financial Condition Data
      (at end of period)

    Total assets                           $1,733,735  $1,619,643  $1,541,671
    Loans, net of unearned discount           679,169     624,019     615,255
    Allowance for loan losses                   7,038       6,942       6,816
    Mortgage-backed and related
     securities:
      Available for sale                      564,547     479,475     415,933
      Held to maturity                        229,113     241,058     247,256
    Investment securities available for sale  109,659     133,535     128,655
    Marketable equity securities available
     for sale                                  29,321      26,819      24,818
    Deposits                                1,021,320     940,986     905,935
    Long-term obligations                     276,584     351,287     317,688
    Shareholders' equity                      105,447     104,697     106,600
    Nonperforming assets                        2,309       3,523       2,060
      Nonaccrual loans                          1,211       2,248       1,185
      Loans 90 days past due                      555         827         252
      Restructured loans                          242         193         179
      Other real estate owned                     121         214         436
      Repossessed assets                          180          41           8

    Assets Quality Ratios:
    Nonaccruing loans to total loans             0.18%       0.36%       0.19%
    Allowance for loan losses to
     nonaccruing loans                         581.17      308.81      575.19
    Allowance for loan losses to
     nonperforming assets                      304.81      197.05      330.87
    Allowance for loan losses to total loans     1.04        1.11        1.11
    Nonperforming assets to total assets         0.13        0.22        0.13
    Net charge-offs to average loans             0.17        0.07        0.03

    Capital Ratios:
    Shareholders' equity to total assets         6.08        6.46        6.91
    Average shareholders' equity to
     average total assets                        6.24        6.98        6.98



    LOAN PORTFOLIO COMPOSITION

    The following table sets forth loan totals net of unearned discount by
    category for the periods presented:

                                              At          At          At
                                            Sept. 30,   Dec. 31,    Sept. 30,
                                              2005        2004        2004
                                                (dollars in thousands)
                                                     (unaudited)
    Real Estate Loans:
      Construction                           $39,667     $32,877     $42,922
      1-4 Family Residential                 195,342     168,784     163,319
      Other                                  162,886     153,998     142,400
    Commercial Loans                          86,280      80,808      76,461
    Municipal Loans                          112,797     103,963     103,210
    Loans to Individuals                      82,197      83,589      86,943
    Total Loans                             $679,169    $624,019    $615,255



                                            At or for the     At or for the
                                            Three Months        Nine Months
                                               Ended              Ended
                                            September 30,     September 30,
                                            2005     2004     2005     2004
                                             (dollars in       (dollars in
                                              thousands)        thousands)
                                             (unaudited)       (unaudited)
    Selected Operating Data:
    Total interest income                  $20,438  $17,163  $58,602  $49,215
    Total interest expense                  10,050    7,015   27,624   20,106
    Net interest income                     10,388   10,148   30,978   29,109
    Provision for loan losses                  485      ---      947      525
    Net interest income after provision
     for loan losses                         9,903   10,148   30,031   28,584
    Non-interest income
      Deposit services                       3,775    3,476   10,849   10,424
      Gain (loss) on sale of securities
       available for sale                       24      375      (32)   2,449
      Gain on sale of loans                    414      371    1,433    1,258
      Trust income                             394      320    1,033      894
      Bank owned life insurance                231      184      673      628
      Other                                    536      436    1,788    1,227
        Total non-interest income            5,374    5,162   15,744   16,880
    Non-interest expense
      Salaries and employee benefits         6,776    6,333   20,782   19,133
      Net occupancy expense                  1,056    1,072    3,179    3,099
      Equipment expense                        204      189      624      549
      Advertising, travel & entertainment      440      385    1,457    1,308
      ATM expense                              165      112      467      479
      Director fees                            144      145      459      438
      Supplies                                 134      145      455      428
      Professional fees                        193      344      583      783
      Postage                                  149      140      423      416
      Other                                  1,262    1,130    3,727    3,298
        Total non-interest expense          10,523    9,995   32,156   29,931
    Income before federal tax expense        4,754    5,315   13,619   15,533
    Income tax expense                         921    1,082    2,514    3,134
    Net income                              $3,833   $4,233  $11,105  $12,399

    Common Share Data:
    Weighted-average basic shares
     outstanding                            11,459   11,504   11,446   11,483
    Weighted-average diluted shares
     outstanding                            12,011   12,170   12,035   12,155
    Net income per common share
      Basic                                  $0.34    $0.37    $0.97    $1.08
      Diluted                                 0.32     0.35     0.92     1.02
    Book value per common share                ---      ---     9.15     9.25
    Cash dividend declared per common share   0.11     0.10     0.33     0.30

    Selected Performance Ratios:
    Return on average assets                  0.88%    1.10%    0.88%    1.11%
    Return on average shareholders' equity   14.29    16.16    14.17    15.94
    Average yield on interest earning assets  5.28     5.06     5.25     5.02
    Average yield on interest bearing
     liabilities                              3.03     2.40     2.87     2.37
    Net interest spread                       2.25     2.66     2.38     2.65
    Net interest margin                       2.80     3.10     2.89     3.08
    Average interest earning assets to
     average interest bearing liabilities   122.41   122.57   121.95   122.29
    Non-interest expense to average total
     assets                                   2.42     2.60     2.56     2.69
    Efficiency ratio                         62.96    62.45    64.72    64.35



                                               AVERAGE BALANCES AND YIELDS
                                                 (dollars in thousands)
                                                      (unaudited)
                                                   Nine Months Ended
                                                  September 30, 2005

                                                 AVG.                    AVG.
                                               BALANCE      INTEREST    YIELD
    ASSETS

    INTEREST EARNING ASSETS:
    Loans (A) (B)                              $650,862     $30,043     6.17%
    Loans Held for Sale                           4,467         160     4.79%
    Securities:
    Investment Securities (Taxable) (D)          51,893       1,451     3.74%
    Investment Securities (Tax-Exempt) (C)(D)    69,499       3,691     7.10%
    Mortgage-backed Securities (D)              761,223      25,379     4.46%
    Marketable Equity Securities                 27,686         736     3.55%
    Interest Earning Deposits                       666          15     3.01%
    Federal Funds Sold                            1,168          25     2.86%
    Total Interest Earning Assets             1,567,464      61,500     5.25%

    NONINTEREST EARNING ASSETS:
    Cash and Due From Banks                      41,579
    Bank Premises and Equipment                  30,817
    Other Assets                                 46,520
      Less:  Allowance for Loan Loss             (6,918)
    Total Assets                             $1,679,462

    LIABILITIES AND SHAREHOLDERS' EQUITY

    INTEREST BEARING LIABILITIES:
    Savings Deposits                            $50,868        $381     1.00%
    Time Deposits                               347,037       7,871     3.03%
    Interest Bearing Demand Deposits            309,039       3,749     1.62%
    Short-term Interest Bearing
     Liabilities                                266,924       6,810     3.41%
    Long-term Interest Bearing
     Liabilities - FHLB Dallas                  290,875       7,875     3.62%
    Long-term Debt (E)                           20,619         938     6.00%
    Total Interest Bearing Liabilities        1,285,362      27,624     2.87%

    NONINTEREST BEARING LIABILITIES:
    Demand Deposits                             274,850
    Other Liabilities                            14,445
    Total Liabilities                         1,574,657

    SHAREHOLDERS' EQUITY                        104,805
    Total Liabilities and
    Shareholders' Equity                     $1,679,462

    NET INTEREST INCOME                                     $33,876
    NET YIELD ON AVERAGE EARNING ASSETS                                 2.89%

    NET INTEREST SPREAD                                                 2.38%

     (A) Loans are shown net of unearned discount.  Interest on loans includes
         fees on loans which are not material in amount.
     (B) Interest income includes taxable-equivalent adjustments of $1,713 and
         $1,625 for the nine months ended September 30, 2005 and 2004,
         respectively.
     (C) Interest income includes taxable-equivalent adjustments of $1,185 and
         $1,255 for the nine months ended September 30, 2005 and 2004,
         respectively.
     (D) For the purpose of calculating the average yield, the average balance
         of securities is presented at historical cost.
     (E) Southside Statutory Trust III

     Note: As of September 30, 2005 and 2004, loans totaling $1,211 and
           $1,185, respectively, were on nonaccrual status.  The policy is to
           reverse previously accrued but unpaid interest on nonaccrual loans;
           thereafter, interest income is recorded to the extent received when
           appropriate.



                                               AVERAGE BALANCES AND YIELDS
                                                  (dollars in thousands)
                                                       (unaudited)
                                                     Nine Months Ended
                                                     September 30, 2004

                                                 AVG.                   AVG.
                                               BALANCE     INTEREST    YIELD
    ASSETS

    INTEREST EARNING ASSETS:
    Loans (A) (B)                              $600,222     $27,428     6.10%
    Loans Held for Sale                           3,190         134     5.61%
    Securities:
    Investment Securities (Taxable) (D)          44,863         741     2.21%
    Investment Securities (Tax-Exempt)(C)(D)     75,383       4,006     7.10%
    Mortgage-backed Securities (D)              628,673      19,401     4.12%
    Marketable Equity Securities                 24,010         320     1.78%
    Interest Earning Deposits                       652           5     1.02%
    Federal Funds Sold                            8,638          60     0.93%
    Total Interest Earning Assets             1,385,631      52,095     5.02%

    NONINTEREST EARNING ASSETS:
    Cash and Due From Banks                      37,900
    Bank Premises and Equipment                  30,639
    Other Assets                                 39,701
      Less:  Allowance for Loan Loss             (6,524)
    Total Assets                             $1,487,347

    LIABILITIES AND SHAREHOLDERS' EQUITY

    INTEREST BEARING LIABILITIES:
    Savings Deposits                            $48,091        $152     0.42%
    Time Deposits                               319,160       5,761     2.41%
    Interest Bearing Demand Deposits            279,930       1,311     0.63%
    Short-term Interest Bearing
     Liabilities                                175,668       4,758     3.62%
    Long-term Interest Bearing
     Liabilities - FHLB Dallas                  289,587       7,460     3.44%
    Long-term Debt (E)                           20,619         664     4.23%
    Total Interest Bearing Liabilities        1,133,055      20,106     2.37%

    NONINTEREST BEARING LIABILITIES:
    Demand Deposits                             240,652
    Other Liabilities                             9,757
    Total Liabilities                         1,383,464

    SHAREHOLDERS' EQUITY                        103,883
    Total Liabilities and
    Shareholders' Equity                     $1,487,347

    NET INTEREST INCOME                                     $31,989
    NET YIELD ON AVERAGE EARNING ASSETS                                 3.08%

    NET INTEREST SPREAD                                                 2.65%

     (A) Loans are shown net of unearned discount.  Interest on loans includes
         fees on loans which are not material in amount.
     (B) Interest income includes taxable-equivalent adjustments of $1,713 and
         $1,625 for the nine months ended September 30, 2005 and 2004,
         respectively.
     (C) Interest income includes taxable-equivalent adjustments of $1,185 and
         $1,255 for the nine months ended September 30, 2005 and 2004,
         respectively.
     (D) For the purpose of calculating the average yield, the average balance
         of securities is presented at historical cost.
     (E) Southside Statutory Trust III

     Note: As of September 30, 2005 and 2004, loans totaling $1,211 and
           $1,185, respectively, were on nonaccrual status.  The policy is to
           reverse previously accrued but unpaid interest on nonaccrual loans;
           thereafter, interest income is recorded to the extent received when
           appropriate.



                                              AVERAGE BALANCES AND YIELDS
                                                 (dollars in thousands)
                                                      (unaudited)
                                                     Quarter Ended
                                                   September 30, 2005

                                                 AVG.                    AVG.
                                               BALANCE      INTEREST    YIELD
    ASSETS

    INTEREST EARNING ASSETS:
    Loans (A) (B)                              $671,882     $10,602     6.26%
    Loans Held for Sale                           3,791          52     5.44%
    Securities:
    Investment Securities (Taxable) (D)          46,429         473     4.04%
    Investment Securities (Tax-Exempt) (C) (D)   63,334       1,138     7.13%
    Mortgage-backed Securities (D)              793,412       8,833     4.42%
    Marketable Equity Securities                 28,366         283     3.96%
    Interest Earning Deposits                       550           5     3.61%
    Federal Funds Sold                            1,185          10     3.35%
    Total Interest Earning Assets             1,608,949      21,396     5.28%

    NONINTEREST EARNING ASSETS:
    Cash and Due From Banks                      41,058
    Bank Premises and Equipment                  31,747
    Other Assets                                 47,395
      Less:  Allowance for Loan Loss             (6,914)
    Total Assets                             $1,722,235

    LIABILITIES AND SHAREHOLDERS' EQUITY

    INTEREST BEARING LIABILITIES:
    Savings Deposits                            $50,857        $142     1.11%
    Time Deposits                               361,048       2,981     3.28%
    Interest Bearing Demand Deposits            312,195       1,451     1.84%
    Short-term Interest Bearing
     Liabilities                                310,463       2,721     3.48%
    Long-term Interest Bearing
     Liabilities - FHLB Dallas                  259,245       2,416     3.70%
    Long-term Debt (E)                           20,619         339     6.43%
    Total Interest Bearing Liabilities        1,314,427      10,050     3.03%

    NONINTEREST BEARING LIABILITIES:
    Demand Deposits                             286,088
    Other Liabilities                            15,292
    Total Liabilities                         1,615,807

    SHAREHOLDERS' EQUITY                        106,428
    Total Liabilities and
    Shareholders' Equity                     $1,722,235

    NET INTEREST INCOME                                     $11,346
    NET YIELD ON AVERAGE EARNING ASSETS                                 2.80%

    NET INTEREST SPREAD                                                 2.25%

     (A) Loans are shown net of unearned discount.  Interest on loans
         includes fees on loans which are not material in amount.
     (B) Interest income includes taxable-equivalent adjustments of $582 and
         $557 for the third quarter ended September 30, 2005 and 2004,
         respectively.
     (C) Interest income includes taxable-equivalent adjustments of $376 and
         $429 for the third quarter ended September 30, 2005 and 2004,
         respectively.
     (D) For the purpose of calculating the average yield, the average
         balance of securities is presented at historical cost.
     (E) Southside Statutory Trust III

     Note: As of September 30, 2005 and 2004, loans totaling $1,211 and
           $1,185, respectively, were on nonaccrual status.  The policy is to
           reverse previously accrued but unpaid interest on nonaccrual loans;
           thereafter, interest income is recorded to the extent received when
           appropriate.


                                             AVERAGE BALANCES AND YIELDS
                                                (dollars in thousands)
                                                      (unaudited)
                                                     Quarter Ended
                                                  September 30, 2004

                                               AVG.                      AVG.
                                              BALANCE      INTEREST     YIELD
    ASSETS

    INTEREST EARNING ASSETS:
    Loans (A) (B)                              $611,003      $9,247     6.02%
    Loans Held for Sale                           4,067          45     4.40%
    Securities:
    Investment Securities (Taxable) (D)          41,896         244     2.32%
    Investment Securities (Tax-Exempt) (C) (D)   73,639       1,327     7.17%
    Mortgage-backed Securities (D)              670,539       7,157     4.25%
    Marketable Equity Securities                 24,556         123     1.99%
    Interest Earning Deposits                       573           1     0.69%
    Federal Funds Sold                            1,304           5     1.53%
    Total Interest Earning Assets             1,427,577      18,149     5.06%

    NONINTEREST EARNING ASSETS:
    Cash and Due From Banks                      37,728
    Bank Premises and Equipment                  30,674
    Other Assets                                 40,766
      Less:  Allowance for Loan Loss             (6,690)
    Total Assets                             $1,530,055

    LIABILITIES AND SHAREHOLDERS' EQUITY

    INTEREST BEARING LIABILITIES:
    Savings Deposits                            $49,015         $57     0.46%
    Time Deposits                               319,338       1,966     2.45%
    Interest Bearing Demand Deposits            277,401         488     0.70%
    Short-term Interest Bearing
     Liabilities                                196,669       1,696     3.43%
    Long-term Interest Bearing
     Liabilities - FHLB Dallas                  301,677       2,569     3.39%
    Long-term Debt (E)                           20,619         239     4.54%
    Total Interest Bearing Liabilities        1,164,719       7,015     2.40%

    NONINTEREST BEARING LIABILITIES:
    Demand Deposits                             252,296
    Other Liabilities                             8,834
    Total Liabilities                         1,425,849

    SHAREHOLDERS' EQUITY                        104,206
    Total Liabilities and
    Shareholders' Equity                     $1,530,055

    NET INTEREST INCOME                                     $11,134
    NET YIELD ON AVERAGE EARNING ASSETS                                 3.10%

    NET INTEREST SPREAD                                                 2.66%

     (A) Loans are shown net of unearned discount.  Interest on loans
         includes fees on loans which are not material in amount.
     (B) Interest income includes taxable-equivalent adjustments of $582 and
         $557 for the third quarter ended September 30, 2005 and 2004,
         respectively.
     (C) Interest income includes taxable-equivalent adjustments of $376 and
         $429 for the third quarter ended September 30, 2005 and 2004,
         respectively.
     (D) For the purpose of calculating the average yield, the average
         balance of securities is presented at historical cost.
     (E) Southside Statutory Trust III

     Note: As of September 30, 2005 and 2004, loans totaling $1,211 and
           $1,185, respectively, were on nonaccrual status.  The policy is to
           reverse previously accrued but unpaid interest on
           nonaccrual loans; thereafter, interest income is recorded to the
           extent received when appropriate.
SOURCE  Southside Bancshares, Inc.
    -0-                             11/03/2005 C DAW065
    /CONTACT:  Susan Hill of Southside Bancshares, Inc., +1-903-531-7220, or
susanh@southside.com /
    /Web site:  http://www.southside.comhttp://www.southside.com/investor /
    (SBSI)

CO:  Southside Bancshares, Inc.
ST:  Texas
IN:  FIN
SU:  ERN

JP-AP
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6321 11/03/200514:30 ESThttp://www.prnewswire.com