8-K

UNITED STATES
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): April 30, 2004

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 12. Results of Operations and Financial Condition

On April 30, 2004, International Bancshares Corporation issued a news release announcing first quarter 2004 earnings.  The news release, attached hereto and filed herewith as Exhibit 99, is incorporated herein by reference.

All of the information furnished in Item 12 of this report and the accompanying exhibits are also intended to be included under “Item 9 – Regulation Fair Disclosure” and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, is not subject to the liabilities of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.

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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: April 30, 2004

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EXHIBIT INDEX

Exhibit Number	Description
99	News Release of International Bancshares Corporation dated April 30, 2004

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EX-99

EXHIBIT 99

Contact::	Rosanne Palacios	Judy Wawroski
	International Bancshares Corporation	International Bancshares Corporation
	(956) 726-6636 (Laredo)	(956) 722-7611 (Laredo)

FOR IMMEDIATE RELEASE

IBC Announces First Quarter Earnings

LAREDO, Texas—(BUSINESS WIRE)—April 30, 2004—International Bancshares Corporation (NASDAQ: IBOC) today reported earnings for the first quarter of 2004 of $26.5 million or $.68 per share - basic ($.67 per share - diluted) compared to $31.3 million or $.81 per share - basic ($.80 per share - diluted) in the corresponding 2003 period.  Net income for the first quarter 2004 was negatively impacted by the current low interest rate environment and IBC’s strategic management of earning assets in anticipation of its pending acquisition of Local Financial Corporation (NASDAQ: LFIN).

IBC also reported that it has obtained all required bank regulatory approvals for the Local acquisition, subject to the expiration of applicable waiting periods.  The acquisition is expected to close in June 2004 and is subject to various closing conditions, including the approval of Local’s stockholders.

“I’m pleased with the first quarter earnings in view of the repositioning of the Company that has occurred to accommodate the Local acquisition,” Dennis E. Nixon, President and CEO, said.  “Once the acquisition is complete, the Company will benefit from the operations of the combined companies. The acquisition, coupled with the Board of Directors’ confidence in the Company’s continued success throughout the year, resulted in a $.50 per share cash dividend being declared, payable on April 30th, 2004, an increase of 47% from the cash dividend paid in April 2003, adjusted for stock dividends, as well as a 25% stock dividend that will be paid on May 28, 2004 to all holders of record as of May 3, 2004.”

Total assets at both March 31, 2004 and December 31, 2003 were $6.6 billion.  Total loans at March 31, 2004 and December 31, 2003 were $2.8 billion.  Deposits at March 31, 2004, were $4.5 billion compared to $4.4 billion at December 31, 2003.

IBC is a multi-bank financial holding company headquartered in Laredo, Texas, with over 100 facilities and over 200 ATMs serving 35 communities including Houston, San Antonio, Austin, Corpus Christi, McAllen, Brownsville, Port Lavaca, Zapata, Eagle Pass and several others in the Southeast regions of Texas.

“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 future developments or events, expectations, plans, projections or future performance of IBC and its subsidiaries, the occurrence of which involve certain risks and uncertainties, including those 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 SEC filings site located at http://www.sec.gov/edgar.shtml