Exhibit 99

News Release

Date:  October 23, 2003	Phone Number: 805/473-6803
Contact: James G. Stathos	NASDAQ Symbol: MDST
Title: Executive Vice President and Chief Financial Officer	Web site: www.midstatebank.com

Mid-State Bancshares Reports Strong Earnings Increase of 26.6%

ARROYO GRANDE, CA — Mid-State Bancshares (the Company) [Nasdaq: MDST], the holding company for Mid-State Bank & Trust (the Bank), reported net income of $9.0 million for the three months ended September 30, 2003, a 26.6% increase over third quarter 2002 earnings of $7.1 million.  Diluted earnings per share were $0.37 in the third quarter of 2003 compared to $0.29 in the like 2002 period.  For the nine months year-to-date, net income was up 17.2% to $24.8 million in 2003 from $21.1 million in 2002, representing diluted earnings per share of $1.01 and $0.85, respectively.

President and Chief Executive Officer James W. Lokey said, “We are pleased with the Company’s results.  We believe the economy may be showing its first signs of recovery and this can only be of further benefit to Mid-State’s earnings.”

“We again experienced strong results from our mortgage banking operation,” said Lokey.  “The gain on sale from mortgage loans held for sale totaled $3.0 million in the first nine months of 2003 compared to $0.4 million in the 2002 period.  Similarly, the gain on sale was $1.0 million in the third quarter of 2003, up from $0.2 million in 2002.”  Also contributing to the improvement in earnings in 2003 was a one-time-only gain on the sale of bank property totaling $273,000 (pre-tax) in July.

Total assets of the Company were up 8.2% to $2.086 billion from $1.928 billion at September 30, 2003.  This growth was fueled by an increase in deposits of 9.5% to $1.795 billion, up from $1.639 billion one year earlier.  The growth in deposits was centered in core deposits.  While time deposits decreased to $392.4 million from $405.2 million one year earlier, all other categories of demand, NOW, money market and savings increased to $1.402 billion from $1.234 billion one year earlier.  In an ongoing effort to improve earnings, the

Company continues to focus its attention on attracting lower cost core deposits while trying to remain competitive in retaining time deposits.  Loan activity over the last year has been slow with the loan portfolio down slightly to $1.091 billion at June 30, 2003, compared to one year earlier.  Consequently, the growth in deposits has funded a $130.6 million increase in investments and Fed Funds sold along with a $38.3 million increase in the total of mortgage loans available for sale.

The Company continued its stock repurchase program, repurchasing a total of 207,541 and 625,830 shares, respectively, for the three month and nine month periods ending September 30, 2003.  In the comparable 2002 periods, the amount of stock repurchased totaled 215,120 and 315,058.  Management estimates that the effect of the stock repurchase program in 2003 has been to increase earnings per share by approximately one cent per share in the third quarter compared to what it would have been had no program been in place this year.  In other matters concerning capital, the dividend declared during the third quarter of 2003 was increased to $0.13 per share up from $0.10 per share one year earlier.

Non-performing asset levels totaled $15.8 million compared to $10.7 million one year earlier.  The level of non-performing assets as a percent of total assets was 0.8% compared to the 0.6% level of one year ago.  The level of non-performing assets is centered primarily in two lending relationships secured by real estate (total $13.3 million).  Management has established specific reserves that would offset potential losses, if any, arising from less than full recovery of the loans from the supporting collateral.  One property has now been foreclosed upon, residing on the Consolidated Statement of Financial Position under “Other Real Estate Owned” (total $3.3 million).  The ratio of the Company’s allowances for losses to non-performing loans was 149% compared to 178% one year earlier.  On a quarterly basis, management performs an analysis of the adequacy of the allowance for loan losses.  The results of this analysis for the quarter ended September 30, 2003 determined that the allowance was adequate to cover losses inherent in the portfolio.

Mid-State Bancshares is a $2.1 billion holding company for Mid-State Bank & Trust, an independent, community bank serving California’s San Luis Obispo, Santa Barbara, and Ventura Counties.  Since opening its doors in 1961, the Bank has grown to 39 offices serving almost 100,000 households.

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This Press Release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act.  All of the statements contained in the Press Release, other than statements of historical fact, should be considered forward-looking statements, including, but not limited to, those concerning (i) the Company’s strategies, objectives and plans for expansion of its operations, products and services, and growth of its portfolio of loans, investments and deposits, (ii) the Company’s beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the operation, (iii) the Company’s beliefs as to the adequacy of its existing and anticipated allowances for loan and real estate losses and (iv) the Company’s beliefs and expectations concerning future operating results.  Although the Company believes the expectations reflected in those forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct.  All subsequent written and oral forward-looking statements by or attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this qualification.  Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results.  The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Please See Pertinent Financial Data Attached.

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Consolidated Financial Data  -  Mid-State Bancshares

(Unaudited)	Quarter Ended						Year-to-Date
(In thousands)	Sept. 30, 2003			Sept. 30, 2002			Sept. 30, 2003			Sept. 30, 2002
Interest Income (not taxable equivalent)	$	26,643		$	27,164		$	78,715		$	82,225
Interest Expense	2,157			4,021			7,559			12,978
Net Interest Income	24,486			23,143			71,156			69,247
Provision for Loan Losses	—			—			260			600
Net Interest Income after provision for loan losses	24,486			23,143			70,896			68,647
Non-interest income	7,838			5,794			22,236			17,522
Non-interest expense	18,589			17,886			54,990			53,104
Income before income taxes	13,735			11,051			38,142			33,065
Provision for income taxes	4,760			3,965			13,364			11,925
Net Income	$	8,975		$	7,086		$	24,778		$	21,140
	Quarter Ended						Year-to-Date
(In thousands, except per share data)	Sept. 30, 2003			Sept. 30, 2002			Sept. 30, 2003			Sept. 30, 2002
Per share:
Net Income - basic	$	0.39		$	0.30		$	1.06		$	0.88
Net Income - diluted	$	0.37		$	0.29		$	1.01		$	0.85
Weighted average shares used in Basic E.P.S. calculation	23,287			23,924			23,441			24,026
Weighted average shares used in Diluted E.P.S. calculation	24,350			24,815			24,487			24,860
Cash dividends	$	0.13		$	0.10		$	0.37		$	0.30
Book value at period-end							$	11.25		$	10.57
Tangible book value at period end							$	9.43		$	8.79
Ending Shares							23,191			23,839
Financial Ratios
Return on assets	1.72		%	1.47		%	1.65		%	1.51		%
Return on tangible assets	1.76		%	1.50		%	1.69		%	1.54		%
Return on equity	13.61		%	11.31		%	12.77		%	11.69		%
Return on tangible equity	16.22		%	13.63		%	15.25		%	14.18		%
Net interest margin (not taxable equivalent)	5.14		%	5.28		%	5.23		%	5.43		%
Net interest margin (taxable equivalent yield)	5.53		%	5.61		%	5.63		%	5.74		%
Net loan losses to avg. loans	0.38		%	0.62		%	0.09		%	0.25		%
Efficiency ratio	57.5		%	61.8		%	58.9		%	61.2		%
Period Averages
Total Assets	$	2,069,078		$	1,914,466		$	2,002,806		$	1,877,434
Total Tangible Assets	2,026,932			1,872,173			1,960,666			1,834,976
Total Loans (includes loans held for sale)	1,140,493			1,081,936			1,129,684			1,112,715
Total Earning Assets	1,889,499			1,739,554			1,818,879			1,705,685
Total Deposits	1,787,933			1,641,953			1,724,251			1,610,677
Common Equity	261,692			248,608			259,408			241,725
Common Tangible Equity	219,546			206,315			217,268			199,267
Balance Sheet - At Period-End
Cash and due from banks							$	109,469		$	110,454
Investments and Fed Funds Sold							767,741			637,124
Loans held for sale							42,075			3,760
Loans, net of deferred fees, before allowance for loan losses							1,091,113			1,106,184
Allowance for Loan Losses							(16,871		)	(17,465		)
Goodwill and other intangibles							42,217			42,254
Other assets							50,405			45,711
Total Assets							$	2,086,149		$	1,928,022
Non-interest bearing deposits							$	436,565		$	391,350
Interest bearing deposits							1,358,227			1,247,987
Other borrowings							7,907			11,573
Allowance for losses - unfunded commitments							1,862			1,687
Other liabilities							20,767			23,515
Shareholders’ equity							260,821			251,910
Total Liabilities and Shareholders’ equity							$	2,086,149		$	1,928,022
Asset Quality & Capital - At Period-End
Non-accrual loans							$	12,562		$	10,729
Loans past due 90 days or more							—			4
Other real estate owned							3,279			—
Total non performing assets							$	15,841		$	10,733
Allowance for losses to loans, gross (1)							1.7		%	1.7		%
Non-accrual loans to total loans, gross							1.2		%	1.0		%
Non performing assets to total assets							0.8		%	0.6		%
Allowance for losses to non performing loans (1)							149.1		%	178.4		%
Equity to average assets (leverage ratio)							10.2		%	10.5		%
Tier One capital to risk-adjusted assets							14.7		%	14.5		%
Total capital to risk-adjusted assets							16.0		%	15.7		%

(1) Includes allowance for loan losses and allowance for losses - unfunded commitments

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Consolidated Financial Data  -  Mid-State Bancshares

(Unaudited)	Quarter Ended
(In thousands)	Sept. 30, 2003		June 30, 2003		Mar. 31, 2003		Dec. 31, 2002		Sept. 30, 2002
Interest Income (not taxable equivalent)	$	26,643	$	26,207	$	25,865	$	27,107	$	27,164
Interest Expense	2,157		2,568		2,834		3,404		4,021
Net Interest Income	24,486		23,639		23,031		23,703		23,143
Provision for Loan Losses	—		150		110		—		—
Net Interest Income after provision for loan losses	24,486		23,489		22,921		23,703		23,143
Non-interest income	7,838		7,484		6,914		6,419		5,794
Non-interest expense	18,589		18,026		18,375		17,441		17,886
Income before income taxes	13,735		12,947		11,460		12,681		11,051
Provision for income taxes	4,760		4,587		4,017		3,966		3,965
Net Income	$	8,975	$	8,360	$	7,443	$	8,715	$	7,086

	Quarter Ended									Quarter Ended
(In thousands, except per share data)	Sept. 30, 2003			June 30, 2003			Mar. 31, 2003			Dec. 31, 2002			Sept. 30, 2002
Per share:
Net Income - basic	$	0.39		$	0.36		$	0.32		$	0.37		$	0.30
Net Income - diluted	$	0.37		$	0.34		$	0.30		$	0.35		$	0.29
Weighted average shares used in Basic E.P.S. calculation	23,287			23,442			23,598			23,773			23,924
Weighted average shares used in Diluted E.P.S. calculation	24,350			24,477			24,638			24,769			24,815
Cash dividends	$	0.13		$	0.13		$	0.11		$	0.11		$	0.10
Book value at period-end	$	11.25		$	11.22		$	10.89		$	10.72		$	10.57
Tangible book value at period end	$	9.43		$	9.41		$	9.09		$	8.94		$	8.79
Ending Shares	23,191			23,384			23,488			23,697			23,839
Financial Ratios
Return on assets	1.72		%	1.68		%	1.55		%	1.79		%	1.47		%
Return on tangible assets	1.76		%	1.72		%	1.58		%	1.83		%	1.50		%
Return on equity	13.61		%	12.82		%	11.84		%	13.72		%	11.31		%
Return on tangible equity	16.22		%	15.29		%	14.18		%	16.48		%	13.63		%
Net interest margin (not taxable equivalent)	5.14		%	5.26		%	5.29		%	5.36		%	5.28		%
Net interest margin (taxable equivalent yield)	5.53		%	5.67		%	5.69		%	5.73		%	5.61		%
Net loan (recoveries) losses to avg. loans	0.38		%	(0.08%		)	(0.03%		)	0.61		%	0.62		%
Efficiency ratio	57.5		%	57.9		%	61.4		%	57.9		%	62.3		%
Period Averages
Total Assets	$	2,069,078		$	1,990,671		$	1,947,332		$	1,935,767		$	1,914,466
Total Tangible Assets	2,026,932			1,948,523			1,905,206			1,893,659			1,872,173
Total Loans (includes loans held for sale)	1,140,493			1,132,369			1,115,920			1,098,947			1,081,936
Total Earning Assets	1,889,499			1,801,275			1,764,490			1,755,655			1,739,554
Total Deposits	1,787,933			1,711,342			1,672,208			1,661,588			1,641,953
Common Equity	261,692			261,509			254,950			251,922			248,608
Common Tangible Equity	219,546			219,361			212,824			209,814			206,315
Balance Sheet - At Period-End
Cash and due from banks	$	109,469		$	124,176		$	113,257		$	128,036		$	110,454
Investments and Fed Funds Sold	767,741			680,320			669,990			625,483			637,124
Loans held for sale	42,075			49,875			26,794			22,560			3,760
Loans, net of deferred fees, before allowance for loan losses	1,091,113			1,102,210			1,095,355			1,087,551			1,106,184
Allowance for Loan Losses	(16,871		)	(17,963		)	(17,576		)	(17,370		)	(17,465		)
Goodwill and other intangibles	42,217			42,292			42,289			42,264			42,254
Other assets	50,405			43,344			47,772			46,216			45,711
Total Assets	$	2,086,149		$	2,024,254		$	1,977,881		$	1,934,740		$	1,928,022
Non-interest bearing deposits	436,565			$	422,732		$	397,622		$	390,212		$	391,350
Interest bearing deposits	1,358,227			1,317,402			1,304,525			1,262,735			1,247,987
Other borrowings	7,907			6,354			2,382			10,973			11,574
Allowance for losses - unfunded commitments	1,862			1,812			1,811			1,771			1,687
Other liabilities	20,767			13,594			15,777			14,914			23,514
Shareholders’ equity	260,821			262,360			255,764			254,135			251,910
Total Liabilities and Shareholders’ equity	$	2,086,149		$	2,024,254		$	1,977,881		$	1,934,740		$	1,928,022
Asset Quality & Capital - At Period-End
Non-accrual loans	$	12,562		$	16,436		$	16,799		$	16,748		$	10,729
Loans past due 90 days or more	—			1			—			—			4
Other real estate owned	3,279			—			—			—			—
Total non performing assets	$	15,841		$	16,437		$	16,799		$	16,748		$	10,733
Allowance for losses to loans, gross (1)	1.7		%	1.8		%	1.8		%	1.8		%	1.7		%
Non-accrual loans to total loans, gross	1.2		%	1.5		%	1.5		%	1.5		%	1.0		%
Non performing assets to total assets	0.8		%	0.8		%	0.8		%	0.9		%	0.6		%
Allowance for losses to non performing loans (1)	149.1		%	120.3		%	115.4		%	114.3		%	178.4		%
Equity to average assets (leverage ratio)	10.2		%	10.5		%	10.6		%	10.6		%	10.5		%
Tier One capital to risk-adjusted assets	14.7		%	14.6		%	14.6		%	14.7		%	14.5		%
Total capital to risk-adjusted assets	16.0		%	15.8		%	15.9		%	16.0		%	15.7		%

(1) Includes allowance for loan losses and allowance for losses - unfunded commitments

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