FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * SHAMBURGER JULIE   2. Issuer Name and Ticker or Trading Symbol SOUTHSIDE BANCSHARES INC [SBSI] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Vice President & Controller (Last) (First) (Middle) SOUTHSIDE BANCSHARES INC, 1201 SOUTH BECKHAM 3. Date of Earliest Transaction (Month/Day/Year) 03/23/2005 (Street) TYLER, TX 75701 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 03/23/2005   M(1)   1,500 A $ 5.79 6,462 D   Common Stock 01/03/2005   I(2) V 27.53 A $ 5.98 1,296.22 I by ESOP Common Stock               14 I Self Cust./Daughter Common Stock               14 I Self Cust./Son ML Common Stock               14 I Self Cust/Son DK

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Incentive Stock Option (right to buy)

$ 5.79

03/23/2005

M(1)

1,500

(3)

08/31/2010

Common Stock

1,500

(1)

3,692

D

Incentive Stock Option (right to buy)

$ 6.27

(4)

06/10/2009

Common Stock

2,254

2,254

D

Incentive Stock Option (right to buy)

$ 6.49

(5)

10/15/2008

Common Stock

7,477

7,477

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
SHAMBURGER JULIE SOUTHSIDE BANCSHARES INC 1201 SOUTH BECKHAM TYLER, TX 75701			Vice President & Controller

Signatures

Julie Shamburger		03/23/2005
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Julie Shamburger exercised part of her options to purchase and hold 1,500 shares on 3-23-05. These option shares would come from the option shares issued August 31, 2000 under the 1993 Stock Option Plan. The purchase price per share is $5.79.
(2)	ESOP allocation for plan year ending 12-31-04.
(3)	Options vest 20% per year and currently 80% are fully exercisable.
(4)	Options vest 20% per year and currently 80% are fully exercisable.
(5)	Vested 20% per year and became fully exercisable 10/15/2003.

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