EXHIBIT 99.1

                           SOUTHSIDE BANCSHARES, INC.
                      NASDAQ NATIONAL MARKET SYMBOL (SBSI)
                ANNOUNCES REDEMPTION OF SOUTHSIDE CAPITAL TRUST I

Tyler, Texas (September 4, 2003) - Southside Bancshares, Inc. (NASDAQ - SBSI)
announced today that Southside Capital Trust I (NASDAQ - SBSIP) (the "Trust"), a
subsidiary of Southside Bancshares, Inc. will redeem on October 6, 2003 (the "
Redemption Date") all of its 8.50% Cumulative Trust Preferred Securities (the
"Trust Preferred Securities") and its 8.50% Common Securities (the "Trust Common
Securities") at a redemption price equal to the $10.00 liquidation amount of
each security plus all accrued and unpaid interest per security to the
Redemption Date. All interest accruing on the Trust Preferred Securities and the
Trust Common Securities will cease to accrue effective the Redemption Date. The
Bank of New York Trust Company of Florida, NA, property trustee of the Trust
Preferred Securities, will notify the holders of the redemption.

The Trust is taking such action in connection with the concurrent redemption by
Southside Bancshares of all of its $20,618,560 8.50% debentures due June 30,
2028 (the "Debentures") which are held exclusively by the Trust. The Debentures
are to be redeemed on the Redemption Date at a redemption price equal to the
principal outstanding amount of the Debentures plus interest accrued on the
Debentures up to the Redemption Date. In connection with the redemption of the
Debentures, Southside Bancshares will expense during the third quarter $683,000,
net of tax, of unamortized origination cost associated with the Debentures.

Southside Bancshares will fund the redemption through the issuance of
$20,000,000 of trust preferred securities and $619,000 of trust common
securities that will adjust quarterly at a rate equal to the three month LIBOR
plus 294 basis points. The initial rate for the trust preferred securities
issued will be 4.08%. This initial lower interest rate should provide interest
savings beginning in the fourth quarter after the Redemption Date for the Trust
Preferred Securities and should provide a better match for the overall interest
rate sensitivity position of Southside Bancshares.

To learn more about Southside Bancshares, Inc., please visit our investor
relations website at 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 web site. Questions or comments may be directed to Ethel Bodenhamer at
(903) 531-7111, or ethelb@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 the 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," "should," "intend," "probability," "risk," "target," "objective"
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. Other factors that
could cause actual results to differ materially from forward-looking statements
include, but are not limited to general economic conditions, either nationally
or in the State of Texas, legislation or regulatory changes which adversely
affect the businesses in which the Company is engaged, changes in the interest
rate environment which reduce interest margins, significant increases in
competition in the banking and financial services industry, changes in fee
income relative to fluctuations in mortgage interest rates, changes in consumer
spending, borrowing and saving habits, technological changes, the Company's
ability to increase market share and control expenses, 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.