7.	Long-term Obligations - (Restated)

Long-term obligations are summarized as follows (in thousands):

	September 30,		December 31,
	2011		2010

FHLB Advances (1)	$	275,458	$	373,479

Long-term Debt (2)
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
Total Long-term Obligations	$	335,769	$	433,790

(1)

At September 30, 2011, the weighted average cost of these advances was 3.27%. FHLB Advances have maturities ranging from October 2012 through July 2028.

(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 3.30856% through December 30, 2011 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 2.103% through November 22, 2011 and thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus 180 basis points.

Beginning in September 2010 and continuing into the first quarter of 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. We paid the FHLB a fee to purchase the option associated with these advance commitments of $11.0 million. During the third quarter of 2011, we recorded impairment charges of $7.8 million in our income statement. At September 30, 2011, we had $3.1 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. 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	$	806	$	299
	25,000	09/20/12	48 months		1.674	%		1,410		1,009		401
	20,000	10/09/12	36 months		1.153	%		789		466		323
	20,000	10/09/12	48 months		1.466	%		1,042		602		440
	20,000	10/09/12	60 months		1.807	%		1,216		698		518
	20,000	05/17/12	48 months		1.710	%		917		748		169
	20,000	05/17/12	60 months		2.085	%		1,102		904		198
	20,000	03/18/13	60 months		2.510	%		1,528		1,175		353
	15,000	03/18/13	36 months		1.622	%		828		630		198
	15,000	03/18/13	48 months		2.086	%		1,017		781		236
$	200,000						$	10,954	$	7,819	$	3,135