12.	LONG-TERM OBLIGATIONS

	Years Ended December 31,
	2011			2010
	(dollars in thousands)
FHLB advances
Balance at end of period	$	260,724		$	373,479
Weighted average interest rate during the period (1)		3.5	%		3.6	%
Interest rate at end of period		3.3	%		3.6	%

Long-term debt (2)
Balance at end of period	$	60,311		$	60,311
Weighted average interest rate during the period (1)		5.4	%		5.4	%
Interest rate at end of period		5.4	%		5.3	%

Maturities of fixed rate long-term obligations based on scheduled repayments at December 31, 2011 are as follows (in thousands):

	Under 1 Year		Due 1-5 Years		Due 6-10 Years		Over 10 Years		Total

FHLB advances	$	1,143	$	248,797	$	6,746	$	4,038	$	260,724
Long-term debt		–		–		–		60,311		60,311
Total long-term obligations	$	1,143	$	248,797	$	6,746	$	64,349	$	321,035

FHLB advances represent borrowings with fixed interest rates ranging from 1.2% to 7.6% and with maturities of one to seventeen years. FHLB advances are collateralized by FHLB stock, nonspecified real estate loans and mortgage-backed securities.

	Years Ended December 31,
	2011		2010
	(in thousands)
Long-term Debt
Southside Statutory Trust III Due 2033 (3)	$	20,619	$	20,619
Southside Statutory Trust IV Due 2037 (4)		23,196		23,196
Southside Statutory Trust V Due 2037 (5)		12,887		12,887
Magnolia Trust Company I Due 2035 (6)		3,609		3,609
Total Long-term Debt	$	60,311	$	60,311

(1)	The weighted average interest rate during the period was computed by dividing the actual interest expense by the average balance outstanding during the period.

(2)	This long-term debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations.

(3)	This debt carries an adjustable rate of 3.521% through March 30, 2012 and adjusts quarterly at a rate equal to three-month LIBOR plus 294 basis points.

(4)	This debt carries a fixed rate of 6.518% through October 30, 2012 and thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus 130 basis points.

(5)	This debt carries a fixed rate of 7.48% through December 15, 2012 and thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus 225 basis points.

(6)	This debt carries an adjustable rate of 2.295% through February 22, 2012 and adjusts quarterly at a rate equal to three-month LIBOR plus 180 basis points.

The long-term debt was $60.3 million at December 31, 2011 and 2010. During the third quarter ended September 30, 2007, we issued $36.1 million of junior subordinated debentures in connection with the issuance of trust preferred securities by our subsidiaries Southside Statutory Trusts IV and V. The $36.1 million in debentures were issued to fund the purchase of FWBS. In addition, as a result of the acquisition of FWBS, we assumed $3.6 million of junior subordinated debentures issued to Magnolia Trust Company I.

During 2010 and 2011, we entered into the option to fund between one and a half and two years forward from the advance commitment date $200 million par in long-term advance commitments from the FHLB at the rates on the date the option was purchased. As a result, during the third and fourth quarter of 2011, we recorded impairment charges of $8.9 million in our income statement. At December 31, 2011, we had $2.0 million in fair value of the FHLB advance option fees on our balance sheet. The remaining fee, included in other assets in our consolidated balance sheet, will be amortized over the term of the advance when we exercise the advance commitments. We paid the FHLB a fee to purchase the option associated with these advance commitments of $11.0 million. Should we determine the advance commitments will not be exercised, or they are further impaired, the remaining fee will be expensed in the period determination is made.

Below is a table detailing the optional advance commitment terms (dollars in thousands):

Advance Commitment		Option Expiration Date	Advance Commitment Term at Exercise Date	Advance Commitment Rate	Option Fee Paid		Impairment 2011		Fair Value Option Fee

$	25,000	09/20/12	36 months	1.325%	$	1,105	$	884	$	221
	25,000	09/20/12	48 months	1.674%		1,410		1,157		253
	20,000	10/09/12	36 months	1.153%		789		532		257
	20,000	10/09/12	48 months	1.466%		1,042		732		310
	20,000	10/09/12	60 months	1.807%		1,216		867		349
	20,000	05/17/12	48 months	1.710%		917		844		73
	20,000	05/17/12	60 months	2.085%		1,102		1,035		67
	20,000	03/18/13	60 months	2.510%		1,528		1,305		223
	15,000	03/18/13	36 months	1.622%		828		698		130
	15,000	03/18/13	48 months	2.086%		1,017		869		148
$	200,000				$	10,954	$	8,923	$	2,031