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 2, 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 October 2, 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 October 16, 2006, said cash dividend to be payable on November 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

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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: October 2, 2006

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EXHIBIT INDEX

Exhibit Number	Description
99	News Release of International Bancshares Corporation dated October 2, 2006 entitled, “International Bancshares Corporation Announces Cash Dividend.”

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
CASH DIVIDEND

LAREDO, TX,  October 2, 2006 - International Bancshares Corporation (“IBC”) today announced that 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 October 16, 2006, payable on November 1, 2006.   “This cash dividend was made possible because of the strong performance of IBC for 2006”, said Dennis E. Nixon, Chairman and President of IBC.

It is the inclination of the Board to continue to declare semiannual cash dividends.  However, any declaration of future cash dividends will depend upon IBC’s financial position, acquisition opportunities, and general business conditions at the time.

IBC (NASDAQ:IBOC - News) is a $10.6 billion multi-bank financial holding company headquartered in Laredo, Texas, with over 200 facilities and over 330 ATMs serving more than 90 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.