EXHIBIT 21

                                  SUBSIDIARIES

The Company has four subsidiaries:

1.       Southside Delaware Financial Corporation, chartered in Delaware. The
         Company is the sole shareholder of this subsidiary holding company.
         Southside Delaware Financial Corporation is the sole shareholder of
         Southside Bank. Southside Bank is a state bank, organized under the
         authority of the Banking Department of Texas.

2.       Red File #1, Inc., located in Tyler. The Company is the sole
         shareholder of this nonbank subsidiary formed in 1993, which has not
         conducted any business since it was formed.

3.       Southside Capital Trust I, a statutory business trust created under the
         laws of the State of Delaware. The Company is the sole owner of this
         subsidiary. On May 18, 1998, the Company through its wholly-owned
         subsidiary, Southside Capital Trust I, sold 2,000,000 Preferred
         Securities at a liquidation amount of $10 Preferred Security for an
         aggregate amount of $20,000,000. These securities have a distribution
         rate of 8.50% per annum payable at the end of each calendar quarter.

4.       Southside Capital Trust II, a statutory business trust created under
         the laws of the State of Delaware. The Company is the sole owner of
         this subsidiary. On November 2, 2000, the Company through its
         wholly-owned subsidiary, Southside Capital Trust II, sold 1,695,000
         cumulative convertible preferred securities at a liquidation amount of
         $10 per convertible preferred security for an aggregate amount of
         $16,950,000. These securities have a convertible feature that allows
         the owner to convert each security to a share of the Company's common
         stock at a conversion price of $9.52 per common share. These securities
         have a distribution rate of 8.75% per annum payable at the end of each
         calendar quarter.