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): October 3, 2005

INTERNATIONAL BANCSHARES CORPORATION

(Exact Name of registrant as specified in its charter)

Texas	0-9439	74-2157138
(State or other jurisdiction of incorporation	(Commission File Number)	(IRS Employer 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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4 (c )  under the Exchange Act (17 CFR 240.13e-4 ( c))

Item 8.01 - Other Events

On October 3,  2005, International Bancshares Corporation issued a news release announcing the declaration of a thirty-two cents per share discretionary cash dividend for all holders of Common Stock, $1.00 par value, of record on October 14, 2005 said cash dividend to be payable on November 1, 2005.  The news release, attached hereto and filed herewith as Exhibit 99, is incorporated herein by reference.

All of the information furnished in Item 8.01 of this report and the accompanying exhibits are also intended to be included under “Item 7.01 – 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, or otherwise 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, or the Securities Exchange Act of 1934, 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: October 3, 2005

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EXHIBIT INDEX

Exhibit Number	Description	Page Number
99	News Release of International Bancshares Corporation dated October 3, 2005.	5

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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

INTERNATIONAL BANCSHARES CORPORATION ANNOUNCES

CASH  DIVIDEND

LAREDO, TX – (BUSINESS WIRE)  ....October 3, 2005 …International Bancshares Corporation (“IBC”) today announced that  the Board of Directors approved the declaration of a 32 cents per share discretionary cash dividend for shareholders of record as of October 14, 2005, payable on November 1, 2005.  The cash dividend just announced is payable on shares after giving effect to the 25% stock dividend distributed on May 31, 2005.

“This cash dividend is made possible because of the strong performance of IBC and the Board’s commitment to pay  cash dividends in support of shareholders’ value, “said Dennis E. Nixon, Chairman and CEO of IBC. “It is the inclination of the Board of Directors to continue to declare these cash dividends, but any declaration of future cash dividends will depend upon IBC’s financial position, acquisition opportunities and general business conditions at the time.”

Total assets at June 30, 2005, were $10.3 billion compared to $9.9 billion at December 31, 2004.  Total net loans were $4.8 billion at June 30, 2005 and at December 31, 2004.   Total deposits were $6.5 billion at June 30, 2005, compared to $6.6 billion at December 31, 2004.

IBC is a $10.3 billion multi-bank financial holding company headquartered in Laredo, Texas, with over 190 facilities and over 300 ATM’s serving more than 75 communities in Texas and Oklahoma.

“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 SEC filings site located at http://www.sec.gov/edgar.shtml.