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 3, 2006

INTERNATIONAL BANCSHARES CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Commission File Number 0-9439

Texas	0-9439	74-2157138
(State or other Jurisdiction	(Commission File Number	(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)

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 250.13e-4 (c))

Item 8.01  Other Events

On April 3, 2006, International Bancshares Corporation (“IBC”) issued a news release announcing the declaration of a thirty-five cents per share cash dividend for all holders of Common Stock, $1.00 par value, of record on April 17, 2006, said cash dividend to be payable on May 1, 2006.  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, 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.

Item 9.01   Financial Statements and Exhibits

Exhibit Number	Description
99	News Release of International Bancshares Corporation dated April 3, 2006 entitled, “International Bancshares Corporation Announces Increase of Cash Dividend.”

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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
		Chairman of the Board
Date:  April 3, 2006

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EXHIBIT INDEX

Exhibit Number	Description
99	News Release of International Bancshares Corporation dated April 3, 2006 entitled, “International Bancshares Corporation Announces Increase of Cash Dividend.”

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EX-99

EXHIBIT 99

FOR IMMEDIATE RELEASE

	Contacts:
Judy Wawroski		Rosanne Palacios
Vice President		Vice President of Marketing
International Bancshares Corporation		International Bancshares Corporation
(956) 722-7611 (Laredo)		(956) 722-7611 (Laredo)

INTERNATIONAL BANCSHARES CORPORATION ANNOUNCES

INCREASE OF CASH DIVIDEND

LAREDO, TX, April 3, 2006 - International Bancshares Corporation (“IBC”) today announced that on April 3, 2006, the Board of Directors approved the declaration of a 35 cents per share cash dividend, for shareholders of record as of the close of business on April 17, 2006 payable on May 1, 2006.   This cash dividend represents a 9.375 percent increase from the previous cash dividend paid in November 2005.  “This cash dividend was made possible because of the strong performance of IBC for “2005”, said Dennis E. Nixon, Chairman and President of IBC.

The Board of Directors did not approve a stock dividend in 2006 in view of the unpredictable stock market conditions impacting the company’s stock.  The Board will continue to evaluate whether it will or will not declare stock dividends in the future.

On March 3, 2006, IBC reported annual net income for 2005 of $140.8 million or $2.21 per share - basic ($2.18 per share - diluted) compared to $119.0 million or $1.92 per share - - basic ($1.88 per share - diluted), which represents a 16.0 percent increase in diluted earnings per share and a 18.3 percent increase in net income over the corresponding period in 2004.

IBC (NASDAQ:IBOC - News) is a multi-bank financial holding company headquartered in Laredo, Texas, with over 200 facilities and over 300 ATMs serving more than 80 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 or IBC’s website at http://www.ibc.com.