<PAGE> 1
FORM 11-K/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission file number 33-00579
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(k) PROVISIONS
3606 GRAVOIS AVENUE
ST. LOUIS, MISSOURI 63116
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
SOUTHSIDE BANCSHARES CORP.
3606 GRAVOIS AVENUE
ST. LOUIS, MISSOURI 63116
<PAGE> 2
REQUIRED INFORMATION
Financial Statements:
4. In lieu of the requirements of Items 1-3, audited statements and schedules
prepared in accordance with the requirements of ERISA for the plan's
fiscal years ended December 31, 1997 and 1996 are presented on pages 3
through 21.
Exhibits:
23b. Consent of Hopkins & Howard, PC
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange act of
1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this amendment to its annual report to be signed on
its behalf by the undersigned hereunto duly authorized.
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(k) PROVISIONS
/s/ Thomas M. Teschner
----------------------
Trustee of the Plan and
President and Chief Executive Officer
DATE: August 31, 1998
---------------
2
<PAGE> 3
Southside Bancshares Corp.
Employee Stock Ownership Plan
with 401(k) Provisions
Financial Statements and
Supplemental Materials
Years ended December 31, 1997 and 1996
[HOPKINS & HOWARD, P.C. LOGO]
<PAGE> 4
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Table of Contents
- ------------------------------------------------------------------------------
Independent Auditors' Reports 1
Financial Statements
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for
Plan Benefits 3
Summary of Accounting Policies 4
Notes to Financial Statements 5-11
Supplemental Material
Schedules of Assets Held for Investment 13-14
Schedules of Transactions or Series of Transactions in
Excess of 5% of Plan Assets at
Beginning of year 15-16
<PAGE> 5
[HOPKINS & HOWARD, P.C. LOGO]
7777 Bonhomme Suite 2110 Saint Louis, Missouri 63105
INDEPENDENT AUDITORS' REPORT
The Plan Administrator and Participants
Southside Bancshares Corp.
Employee Stock Ownership Plan with 401(k) Provisions
St. Louis, Missouri
We have audited the accompanying statements of net assets of the Southside
Bancshares Corp. Employee Stock Ownership Plan with 401(k) Provisions (the Plan)
as of December 31, 1997 and 1996, and the related statements of changes in net
assets for the years then ended. These financial statements are the
responsibility of the Plan's Trustee. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Southside
Bancshares Corp. Employee Stock Ownership Plan with 401(k) Provisions at
December 31, 1997 and 1996, and the changes in net assets available for benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements of the Southside Bancshares Corp. Employee Stock Ownership Plan with
401(k) Provisions taken as a whole. The schedules included in the supplemental
material are presented for purposes of complying with the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 and are not a required part of the basic financial
statements. Such supplemental material has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
HOWARD & HOPKINS, P.C.
May 15, 1998
1
<PAGE> 6
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997 and 1996
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996
----------------------------------- ---------------------------------------
Allocated Unallocated Total Allocated Unallocated Total
--------- ----------- -------- --------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value (notes 2 and 3)
Southside Bancshares Corp. common stock,
299,070 allocated shares and 98,832
unallocated shares at December 31, 1997
and 378,134 allocated shares and 111,186
unallocated shares at December 31, 1996 $ 10,542,216 3,483,828 14,026,044 8,602,549 2,529,481 11,132,030
Mutual Funds:
SEI S&P 500 Index Fund 939,218 - 939,218 686,211 - 686,211
Institutional shares of Federated GNMA
Trust 172,116 - 172,116 159,224 - 159,224
Fidelity Funds Government Money Market 423,854 - 423,854 813,840 - 813,840
----------- ---------- ---------- --------- --------- ----------
$ 12,077,404 3,483,828 15,561,232 10,261,824 2,529,481 12,791,305
Receivables:
Employer's contribution 304,545 - 304,545 296,861 - 296,861
Employees' contributions 21,859 - 21,859 22,545 - 22,545
Loans to participants 14,962 - 14,962 13,546 - 13,546
Accrued interest and dividends 6,693 - 6,693 6,004 - 6,004
----------- ---------- ---------- --------- --------- ----------
348,059 - 348,059 338,956 - 338,956
Total Assets $ 12,425,463 3,483,828 15,909,291 10,600,780 2,529,481 13,130,261
LIABILITIES
Loan payable (Note 4) - 1,581,312 1,581,312 - 1,778,976 1,778,976
Excess employee contributions 156 - 156 15,768 - 15,768
----------- ---------- ---------- --------- --------- ----------
Total Liabilities 156 1,581,312 1,581,468 15,768 1,778,976 1,794,744
----------- ---------- ---------- --------- --------- ----------
Net Assets Available for Benefits $ 12,,425,307 1,902,516 14,327,823 10,585,012 750,505 11,335,517
=========== ========= ========== ========== ========= ==========
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
2
<PAGE> 7
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
For the years ended December 31, 1997 and 1996
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996
--------------------------------------- --------------------------------------
Allocated Unallocated Total Allocated Unallocated Total
<S> <C> <C> <C> <C> <C> <C>
Additions to Net Assets Attributed to:
Investment income:
Net appreciation in fair value of
investments (note 3) $ 5,594,749 1,151,828 6,746,577 1,054,108 377,025 1,431,133
Realized gain on sale of assets 3,600 - 3,600 - - -
Dividends - stock 243,050 69,182 312,232 188,500 55,593 244,093
Interest 76,794 182 76,976 64,414 - 64,414
--------- --------- --------- --------- ------- ---------
5,918,193 1,221,192 7,139,385 1,307,022 432,618 1,739,640
Allocation of Southside Bancshares Corp.
common stock, 5,607 and 8,689 shares,
at market, in 1997 and 1996, respectively 197,664 - 197,664 197,664 - 197,664
Employee contributions 290,566 - 290,566 308,681 - 308,681
Total Additions --------- --------- --------- --------- ------- ---------
6,513,304 1,488,708 8.002,012 1,923,682 733,920 2,657,602
--------- --------- --------- --------- ------- ---------
Deductions from Net Assets Attributed to:
Interest expense - 139,033 139,033 - 159,231 159,231
Benefits paid to participants4,673,009 - 4,673,009 180,292 - 180,292
Diversification withdrawals and excess
contributions and earnings - - - 28,983 - 28,983
Allocation of South Side Bancshares Corp.
common stock, 5,607 and 8,689 shares,
at market, in 1997 and 1996, respectively - 197,664 197,664 - 197,664 197,664
--------- --------- --------- --------- ------- ---------
Total Deductions 4,673,009 336,697 5,009,706 209,275 356,895 549,790
--------- --------- --------- --------- ------- ---------
Net Increase 1,840,295 1,152,011 2,992,306 1,714,407 377,025 2,091,432
Net Assets Available for Benefits
Beginning of year 10,585,012 750,505 11,335,517 8,870,605 373,480 9,244,085
---------- ---------- ----------- --------- ------- ---------
End of year $ 12,425,307 1,902,516 14,327,823 10,585,012 750,505 11,335,517
========== ========== =========== ========== ======= ==========
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
3
<PAGE> 8
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Summary of Accounting Policies
- ------------------------------------------------------------------------------
BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the accrual basis of
accounting.
INVESTMENTS
Investments are stated at fair market value on December 31, 1997 and 1996. Fair
value is determined by quoted market prices.
PAYMENT OF BENEFITS Benefits are recorded when paid.
USE OF ESTIMATES
Management uses estimates and assumptions in preparing financial statements.
Those estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities, and the
reported additions to and deductions from net assets.
INCOME TAXES
The Internal Revenue Service issued its latest determination letter on February
7, 1996 which stated that the Plan and its underlying trust qualify under the
applicable provisions of the Internal Revenue Code and, therefore, are exempt
from federal income taxes.
4
<PAGE> 9
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Notes to Financial Statements
- ------------------------------------------------------------------------------
1. DESCRIPTIONS OF THE PLAN
------------------------
The following descriptions of Southside Bancshares Corp. Employee Stock
Ownership Plan with 401(k) provisions (the Plan) are provided for general
information only. Participants should refer to the Plan agreement for more
complete information.
GENERAL
The Plan is a defined contribution employee benefit plan covering
substantially all employees of Southside Bancshares Corp. (the Company)
and the employees of its subsidiary banks, Southside National Bank in
St. Louis, State Bank of DeSoto, Bank of St. Charles County, and Bank
of Ste. Genevieve. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
ELIGIBILITY
Employees are eligible for membership in the Plan after attainment of age
18 and completion of 6 months of service during the eligibility
computation period. Employees must also complete 1,000 hours of service
each calendar year and be employed at the end of the Plan year in order to
participate in the Company contributions and forfeitures for that year.
CONTRIBUTIONS
Under the Plan agreement, employees may elect to contribute, on a tax
deferred basis, not less than 1% nor more than 15% of covered
compensation. The Company contributed an amount equal to 50% of these
employee contributions, up to 6% of covered compensation.
Each year the Company may also, at its option, contribute an additional
discretionary amount as determined by the Company's Board of Directors.
The Company is required to contribute each year, an amount necessary to
service any debt of the Plan incurred for the purpose of acquiring
5
<PAGE> 10
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Notes to Financial Statements
- ------------------------------------------------------------------------------
securities in accordance with the terms of the loan agreement. The maximum
Company contribution allocated to a participant's account is the lesser of
$30,000 or 25% [including the 401 (k) Plan] of the member's compensation
paid by the employer for the year plus the interest obligation on the
loans used to purchase stock.
ALLOCATION OF BENEFITS
Employer contributions and forfeitures are allocated to eligible
participants' accounts based upon the ratio of eligible participants'
compensation for the year to total compensation of all eligible Plan
members for the year. Investment income and any gain or loss during the
year is allocated to the participant's account in the same proportion as
the balance of the participant's account to the total of all participants'
accounts as of the previous valuation date.
VESTING
Participants are immediately fully vested in their contributions plus
earnings thereon. Upon a participant's attainment of his/her disability,
retirement date, 65th birthday, or upon death, his/her entire account
balance as of the most recent valuation date will become 100% vested. In
the event a participant terminates employment, vesting the remainder of
that participant's account is based on years of continuous service as
follows:
Completed years Vested
of service percentage
---------- ----------
Less than 2 - %
2 25%
3 50%
4 75%
5 or more 100%
In the event that the Plan meets certain provisions of the Internal
Revenue Code (the Code), vesting may occur over a shorter period of time.
6
<PAGE> 11
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Notes to Financial Statements
- ------------------------------------------------------------------------------
DISTRIBUTIONS
Participants may choose to have account balances distributed in either
stock or cash. Participants' stock withdrawals are distributed from
securities held by the Plan by transfer of common stock to the
participants for full-share vested interest and cash for fractional-share
vested interest. Forfeitures resulting from withdrawals prior to full
vesting are allocated to participants' accounts as previously noted.
LOANS
Participants may request a loan up to 50% of the vested balance in their
account for reasons of financial hardship. All loans must be repaid in
level payments over a maximum of a five-year period with an exception for
loans used to acquire a participant's principal residence.
DEBT
The Plan purchased Company common shares using the proceeds of a bank
borrowing (see Note 4) guaranteed by the Company, and holds that stock in
a trust established under the plan. The borrowing is to be repaid over a
period of 10 years by fully deductible Company contributions to the trust
fund. As the Plan makes each payment of principal, an appropriate
percentage of stock will be allocated to eligible employees' accounts in
accordance with applicable regulations under the Code.
7
<PAGE> 12
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Notes to Financial Statements
- ------------------------------------------------------------------------------
DEBT (CONTINUED)
The unallocated shares of stock serve as collateral for the borrowing. The
lender has no rights against shares once they are allocated under the
ESOP. Accordingly, the financial statements of the Plan for the year ended
December 31, 1997 and 1996 present separately the assets and liabilities
and changes therein pertaining to:
a. The accounts of employees with vested rights in allocated
stock (Allocated) and
b. Stock not yet allocated to employees (Unallocated)
ADMINISTRATIVE EXPENSES
The Plan requires the Company to pay all expenses incidental to the
operation and management of the Plan.
STOCK SPLIT
On February 15, 1996, the Company effected a ten for one stock split to
shareholders of record on January 31, 1996.
PLAN TERMINATION
The Company reserves the right to terminate the Plan at any time. In the
event of Plan termination, participants become fully vested in their
accounts.
2. PARTY-IN-INTEREST TRANSACTIONS
At December 31, 1997 and 1996, the Plan held an investment in the Company's
common stock valued at $14,026,044 and $11,132,030, respectively. The Plan
also received dividends of $312,232 and $244,093 in 1997 and 1996,
respectively and recognized $6,539,041 and $1,338,664 of market value
appreciation on this investment during the years ended December 31, 1997 and
1996, respectively.
8
<PAGE> 13
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Notes to Financial Statements
- ------------------------------------------------------------------------------
PARTY-IN-INTEREST TRANSACTIONS (CONTINUED)
------------------------------------------
During 1997, the Plan paid off its note payable of $1,581,312 with United
Missouri Bank of St. Louis (UMB) and borrowed $1,581,312 from South Side
National Bank, an affiliated financial institution. The monies from UMB were
originally used to purchase 98,832 shares of the Company's common stock.
3. INVESTMENTS
-----------
Investments that represent 5% or more of the Plan's net assets available for
benefits at December 31, 1997 and 1996 are as follows:
DECEMBER 31, 1997
-----------------
Issuer Description of investment Fair value
------ ------------------------- ------------
Southside Bancshares Common stock:
Corp. 299,070 shares allocated $ 10,542,216
98,832 shares unallocated 3,483,828
-------- ------------
397,902 total shares $ 14,026,044
SEI S&P 500 Index Fund 30,643 shares $ 939,218
DECEMBER 31, 1996
-----------------
Issuer Description of investment Fair value
------ ------------------------- ------------
Southside Bancshares Common stock:
Corp. 378,134 shares allocated $ 8,602,549
111,186 shares unallocated 2,529,481
------- -----------
489,320 total shares $ 11,132,030
SEI S&P 500 Index Fund 29,089 shares $ 686,211
Fidelity Funds Government Portfolio
(money market mutual fund) $ 813,840
9
<PAGE> 14
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Notes to Financial Statements
- ------------------------------------------------------------------------------
INVESTMENTS (continued)
During 1997 and 1996 the Plan's investments (including investments bought,
sold and held during the year appreciated (depreciated) in value as follows:
1997 1996
---------- ----------
Southside Bancshares Corp. common stock $6,539,041 $1,338,664
SEI S&P 500 Index Fund 204,384 95,028
Institutional shares of Federated GNMA Trust 3,152 (2,559)
---------- ----------
$6,746,577 $1,431,133
========== ==========
Activity in SEI S&P 500 Index Fund and Institutional shares of Federated GNMA
Trust for the years ended December 31, 1997 and 1996, was as follows:
<TABLE>
<CAPTION>
1997 1996
----------------------- -----------------------
SEI S&P 500 GNMA Trust SEI S&P 500 GNMA Trust
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Additions to Net Assets Attributed to
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 204,384 $ 3,152 $ 95,028 (2,559)
Interest and dividends 23,013 11,996 20,404 11,807
Employee contributions 84,936 18,625 85,091 22,923
Fund transfers (59,326) (20,880) 52,725 (62,402)
--------- --------- --------- ---------
Net increase (decrease) 253,007 12,893 253,248 (30,231)
Balance at beginning of the year 686,211 159,223 432,963 189,455
--------- --------- --------- ---------
Balance at the end of the year $ 939,218 $ 172,116 $ 686,211 $ 159,224
========= ========= ========= =========
</TABLE>
10
<PAGE> 15
SOUTHSIDE BANNSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Notes to Financial Statements
- ------------------------------------------------------------------------------
4. LOAN PAYABLE
------------
During 1997, the Plan entered into a loan agreement with Southside National
Bank in St. Louis, (SSNB), an affiliated financial institution, the proceeds
were used to repay a loan from UMB, an unaffiliated financial institution.
The original loan from UMB was used to purchase 186,670 shares of the
Company's stock. The loan with SSNB is due April 1, 2005. The note is secured
by the unallocated shares of the Company's common stock and requires
quarterly interest payments at the prime rate which was 8.50%. The loan had a
principal balance of $1,581,312 at December 31, 1997. The loan requires
annual principal payments of $197,664 on April 1 of each year, beginning in
1998, with the final payment due April 1, 2005. The loan requires interest
payments on a calendar year quarterly basis. During the year, 12,354 shares
were released and allocated to the participants on a proportionate basis.
5. PLAN AMENDMENT
--------------
Effective July 1, 1997, the Company amended the plan to allow distribution of
benefits to occur immediately following termination. The previous provision
required a five-year lapse between termination and distribution.
Effective September 25, 1997, the Company amended the Plan in order to comply
with regulations prescribed by the Department of Labor (DOL) concerning the
determination of crediting hours of service.
The Plan received its latest determination letter on February 7, 1996, in
which the Internal Revenue Service stated that the Plan, as then designed,
was in compliance with the applicable requirements of the Internal Revenue
Code. The Plan has been amended since receiving the determination letter.
However, the Plan's administrator and the Plan's tax counsel believe that the
Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, no
provisions for income taxes has been included in the Plan's financial
statements.
11
<PAGE> 16
SUPPLEMENTAL MATERIAL
12
<PAGE> 17
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Schedule of Assets Held for Investment
As of December 31, 1997
- ------------------------------------------------------------------------------
Description Fair value Cost
----------- ------------ -----------
Southside Bancshares Corp. common stock,
299,070 allocated Shares $ 10,542,216 3,109,151
98,832 Unallocated Shares 3,483,828 1,581,312
------- ------------ -----------
397,902 Total Shares 14,026,044 4,690,463
Mutual Funds:
SEI S&P 500 Index Fund 939,218 596,990
Institutional shares of Federated GNMA
Trust 172,116 171,172
Fidelity Funds Government Portfolio 423,854 423,854
------------ ---------
$ 15,561,232 5,882,479
============ =========
See accompanying independent auditors' report.
13
<PAGE> 18
SOUTH SIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Schedule of Assets Held for Investment
As of December 31, 1996
- ------------------------------------------------------------------------------
Description Fair value Cost
----------- ----------- -----------
South Side Bancshares Corp. common stock,
378,134 allocated Shares $ 8,602,549 2,726,454
111,186 Unallocated Shares 2,529,481 1,778,976
------- ----------- -----------
489,320 Total Shares 11,132,030 4,505,430
Mutual Funds:
SEI S&P 500 Index Fund 686,211 526,416
Institutional shares of Federated GNMA
Trust 159,224 166,427
Fidelity Funds Government Portfolio 813,840 813,840
----------- ---------
$12,791,305 6,012,113
=========== =========
14
<PAGE> 19
SOUTH SIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Schedule of Transactions or Series of Transactions
in Excess of 5% of Plan Assets at Beginning of Year
For the Year Ended December 31, 1997
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of Purchase Selling Cost of
transactions price price asset Net gain (loss)
------------ -------- ------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
SINGLE TRANSACTIONS
Loan payment 1 $ - $ - $ 1,581,312 -
SERIES OF TRANSACTIONS
Government Portfolio
Money Market 47 1.00 1.00 778,659 -
28 1.00 1.00 1,017,548 -
</TABLE>
See accompanying independent auditors' report.
15
<PAGE> 20
SOUTH SIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401(K) PROVISIONS
Schedule of Transactions or Series of Transactions
in Excess of 5% of Plan Assets at Beginning of Year
For the Year Ended December 31, 1996
- ------------------------------------------------------------------------------
Number of Purchase Selling Cost of
transactions price price asset Net gain (loss)
------------ -------- ------- --------- --------------
SINGLE TRANSACTIONS
Loan payment 1 - - $ 1,207,744 -
See accompanying independent auditors' report.
16
<PAGE> 1
Exhibit 23b
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
- -----------------------------------------
SOUTHSIDE BANCSHARES CORP.
EMPLOYEE STOCK OWNERSHIP PLAN
WITH 401 (k) PROVISIONS
ST. LOUIS, MISSOURI
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (File Number 33-0579) of our report dated May 15, 1998,
relating to the financial statements of Southside Bancshares Corp. Employee
Stock Ownership Plan with 401 (k) Provisions appearing in the Plan's Annual
Report on Form 11-K for the year ended December 31, 1997.
/s/ Hopkins & Howard, PC
-------------------------------------
St. Louis, Missouri
July 2, 1998
