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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 BdG6MVDfLcLcQqT/NGvNL+6AydsKk8BDB35Wt/X3czCfeaYrEDbu6xcXokI4nHWy
 UX1t08utyXFuB/aGxJ08tA==

<SEC-DOCUMENT>0001179110-04-001097.txt : 20040113
<SEC-HEADER>0001179110-04-001097.hdr.sgml : 20040113
<ACCEPTANCE-DATETIME>20040113162212
ACCESSION NUMBER:		0001179110-04-001097
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040110
FILED AS OF DATE:		20040113

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PRUETT CARROL R
		CENTRAL INDEX KEY:			0001198886

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23925
		FILM NUMBER:		04522955

	BUSINESS ADDRESS:	
		STREET 1:		MID-STATE BANCSHARES
		STREET 2:		POST OFFICE BOX 580
		CITY:			ARROYO GRANDE
		STATE:			CA
		ZIP:			93421-0580

	MAIL ADDRESS:	
		STREET 1:		MID-STATE BANCSHARES
		STREET 2:		POST OFFICE BOX 580
		CITY:			ARROYO GRANDE
		STATE:			CA
		ZIP:			93421-0580

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MID-STATE BANCSHARES
		CENTRAL INDEX KEY:			0001027324
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				770442667
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1026 GRAND AVE
		CITY:			ARROYO GRANDE
		STATE:			CA
		ZIP:			93420
		BUSINESS PHONE:		8054737700

	MAIL ADDRESS:	
		STREET 1:		1026 GRAND AVE
		CITY:			ARROYO GRANDE
		STATE:			CA
		ZIP:			93420

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MID STATE BANCSHARES
		DATE OF NAME CHANGE:	19980820

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BSM BANCORP
		DATE OF NAME CHANGE:	19961121
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
<periodOfReport>2004-01-10</periodOfReport>
<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0001027324</issuerCik>
        <issuerName>MID-STATE BANCSHARES</issuerName>
        <issuerTradingSymbol>MDST</issuerTradingSymbol>
</issuer>
<reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001198886</rptOwnerCik>
            <rptOwnerName>PRUETT CARROL R</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1026 EAST GRAND AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ARROYO GRANDE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>93420</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector>
<isOfficer>0</isOfficer>
<isTenPercentOwner>0</isTenPercentOwner>
<isOther>0</isOther>
<officerTitle></officerTitle>
<otherText></otherText>
</reportingOwnerRelationship>
</reportingOwner>
<nonDerivativeTable></nonDerivativeTable>
<derivativeTable><derivativeTransaction><securityTitle><value>Common Stock</value>
<footnoteId id="F1"></footnoteId>
</securityTitle>
<conversionOrExercisePrice><value>16.6250</value>
<footnoteId id="F2"></footnoteId>
</conversionOrExercisePrice>
<transactionDate><value>2004-01-10</value>
<footnoteId id="F3"></footnoteId>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>J</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
<footnoteId id="F4"></footnoteId>
</transactionCoding>
<transactionAmounts><transactionShares><value>20000</value>
<footnoteId id="F5"></footnoteId>
</transactionShares>
<transactionPricePerShare><value>16.6250</value>
<footnoteId id="F2"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>A</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>2002-01-10</value>
</exerciseDate>
<expirationDate><value>2011-01-10</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
<footnoteId id="F1"></footnoteId>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>100000</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>60000</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>I</value>
</directOrIndirectOwnership>
<natureOfOwnership><value>By Company</value>
<footnoteId id="F6"></footnoteId>
</natureOfOwnership>
</ownershipNature>
</derivativeTransaction>
</derivativeTable>
<footnotes><footnote id="F1">Incentive Stock Option (right to buy) - 100,000 shares granted as an ISO under the Company's 1996 Stock Option Plan.  12,028 shares issued as an ISO and due to the $100K limitation, remaining 87,972 shares issued and treated as a non-qualified stock option.  The Non-Qualified portion of this grant is vesting an additional 20,000 shares; the ISO portion of this grant currently does not have any shares available for exercise.</footnote>
<footnote id="F2">Shares granted at fair market value.</footnote>
<footnote id="F3">Non-Qualified Stock Option granted January 10, 2001 vested an additional 20,000 on January 10, 2004, increasing Mr. Pruett's available shares for exercise to 60,000 shares.  These shares have not yet been acquired through the exercise of the option.</footnote>
<footnote id="F4">The Incentive Stock Option and the Non-Qualified Option granted January 10, 2001 vest 20% per year on the anniversary date of the grant for five (5) years at which time the option becomes 100% vested.  Optionee has another five (5) years from the 100% vesting anniversary date to exercise the shares in accordance with the terms and conditions of the Company's 1996 Stock Option Plan.  To date, no shares under these grants have been exercised.</footnote>
<footnote id="F5">Additional shares becoming vested under the Non-Qualified grant and available for exercise by Mr. Pruett at the exercise price of $16.6250 per share.  The ISO grant currently does not have any shares available for exercise.</footnote>
<footnote id="F6">Shares granted to Mr. Pruett by Company on January 10, 2001.</footnote>
</footnotes>
<ownerSignature><signatureName>Carrol R. Pruett</signatureName>
<signatureDate>2004-01-13</signatureDate>
</ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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