8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT

                     ---------------------------------------


                       PURSUANT TO SECTION 13 OR 15 (D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported): February 20, 2001


                      INTERNATIONAL BANCSHARES CORPORATION
             (Exact Name of Registrant as Specified in its Charter)


                          Commission File Number 0-9439


                  TEXAS                                  74-2157138
- ---------------------------------------   --------------------------------------
(State or other Jurisdiction                         (I.R.S. Employer
of incorporation or organization)                   Identification No.)


   1200 SAN BERNARDO, LAREDO, TEXAS                    78040-1359
- ---------------------------------------   --------------------------------------
(Address of principal executive offices)                (ZIP Code)


       (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) (956) 722-7611



                                      NONE
          (Former name or former address, if changed since last report)

ITEM 5.      OTHER EVENTS

      On February 20, 2001, International Bancshares Corporation issued a news
release announcing acquiring the assets of First Equity corporation, an Austin
based mortgage banker. The news release, attached hereto and filed herewith as
Exhibit 99, is incorporated herein by reference.


ITEM 7.      FINANCIAL STATEMENTS AND EXHIBITS

      c. Exhibits

         The following exhibit is filed as part of this report:

         (99)  News release of International Bancshares Corporation dated
               February 20, 2001.

                                        2

                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                    INTERNATIONAL BANCSHARES CORPORATION
                                    (Registrant)


                                    By: /s/ DENNIS E. NIXON
                                            DENNIS E. NIXON, President,
                                            and Chief Executive Officer

Date: February 20, 2001

                                        3

                                  EXHIBIT INDEX




EXHIBIT                                                                    PAGE
NUMBER          DESCRIPTION                                               NUMBER
- -------         -----------                                               ------
  99            News Release of International Bancshares Corporation         5
                dated February 20, 2001.

                                        4

EX-99

                                                                      EXHIBIT 99


FOR IMMEDIATE RELEASE                      Contact: Dennis E. Nixon
                                                    (956) 722-7611 (Laredo)

                                                    Katie Brickman Harvey
                                                    Taylor West Advertising
                                                    (210) 826-8899 (San Antonio)

             INTERNATIONAL BANCSHARES CORPORATION ESTABLISHES FIRST
             PRESENCE IN AUSTIN WITH ACQUISITION OF MORTGAGE BANKER.

      LAREDO, TX,.....February 20, 2001......International Bancshares
Corporation ("IBC") has acquired the assets of First Equity Corporation, an
Austin based mortgage banker. This transaction was facilitated by GulfStar
Group, Houston, Texas, which is an investment banking firm affiliated with IBC.

      First Equity originates second mortgages, home equity and home improvement
loans in several Texas cities including Austin, San Antonio, Houston, and
Dallas/Ft. Worth. Dennis E. Nixon, Chairman and CEO of IBC, said, "This purchase
is an excellent fit with our strategy to expand IBC's retail business, and to
generate more retail loan growth to further diversify the company's lending and
to enhance its fee income."

      First Equity has grown its loan production from $14.0 million in its first
twelve months of operations in 1994 to more than $87.0 million in fiscal year
2000. First Equity has achieved this success by focusing on its ability to
provide superior customer service and maintaining strong origination
relationships.

      "We are delighted to be part of the IBC family and believe that together
we can provide a complete line of banking and financial services to our
customers," said Bobby Fisher, President of First Equity Corp. "IBC intends to
operate First Equity as a division of IBC from First Equity's Austin office,
which will establish IBC's first presence in Austin," said Nixon.

      International Bancshares Corporation (NASDAQ-IBOC) is a multi-bank holding
company with $5.8 billion in assets. Headquartered in Laredo, Texas, IBC has
more than 100 facilities serving 28 communities in South and Southeast Texas.
Founded in 1979, IBC has focused on providing commercial financial services to
small and medium-sized businesses in Texas and internationally, primarily in
Mexico.

      "Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this release which are not historical facts
contain forward looking information with respect to plans, projections or future
performance of IBC and its subsidiaries, the occurrence of which involve certain
risks and uncertainties detailed in IBC's filings with the Securities and
Exchange Commission.

      Copies of IBC's SEC filings and Annual Report (as an exhibit to the 10-K)
may be downloaded from the Internet at no charge from FreeEDGAR, a real-time
access to SEC filings site located at http://www.freeedgar.