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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001104659-04-017363.txt : 20040621
<SEC-HEADER>0001104659-04-017363.hdr.sgml : 20040621
<ACCEPTANCE-DATETIME>20040621130715
ACCESSION NUMBER:		0001104659-04-017363
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20040621
ITEM INFORMATION:		Acquisition or disposition of assets
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040621

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTERNATIONAL BANCSHARES CORP
		CENTRAL INDEX KEY:			0000315709
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				742157138
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09439
		FILM NUMBER:		04872151

	BUSINESS ADDRESS:	
		STREET 1:		12OO SAN BERNARDO AVE
		STREET 2:		PO BOX 1359
		CITY:			LAREDO
		STATE:			TX
		ZIP:			78040-1359
		BUSINESS PHONE:		9567227611

	MAIL ADDRESS:	
		STREET 1:		P O BOX 1359
		STREET 2:		1200 SAN BERNARDO
		CITY:			LAREDO
		STATE:			TX
		ZIP:			78040
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a04-7122_18k.htm
<DESCRIPTION>8-K
<TEXT>
<html>

<head>



</head>

<body link="blue" vlink="purple">

<div style="font-family:'Times New Roman';">

<div style="border:none;border-top:double windowtext 9.0pt;padding:0in 0in 0in 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES
AND EXCHANGE COMMISSION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington, D.C.&#160; 20549</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="25%" noshade color="black" align="center">

</font></div>


<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM 8-K</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT
REPORT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant
to Section&nbsp;13 or 15 (d) of the Securities Exchange Act of 1934</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of earliest event reported):</font><b><font size="2" style="font-size:10.0pt;font-weight:bold;"> June&nbsp;21, 2004</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">INTERNATIONAL
BANCSHARES CORPORATION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact Name of
Registrant as Specified in its Charter)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.18%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Texas</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.16%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">0-9439</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">74-2157138</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.18%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other
  jurisdiction<br>
  of incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.16%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File<br>
  Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer<br>
  Identification No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.18%;">
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.16%;">
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:65.48%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1200 San Bernardo, Laredo, Texas</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">78040-1359</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:65.48%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of
  principal executive offices)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ZIP Code)</font></p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:65.48%;">
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:65.48%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s
  telephone number, including area code):&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font style="font-weight:bold;">(210)
  722-7611</font></b></font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:65.48%;">
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.14%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.38%;">
  <p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">None</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or
  former address, if changed since last report.)</font></p>
  </td>
 </tr>
</table>

</div>

<div style="border:none;border-bottom:double windowtext 9.0pt;padding:0in 0in 0in 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sshanka\04-7122-1\task139439\7122-1-ba.htm',USER='srskrishnamurthy',CD='Jun 21 18:01 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.&#160; Acquisition or Disposition of Assets; Item 5. Other Events and
Regulation FD Disclosure.</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective
June&nbsp;18, 2004, International Bancshares Corporation, a Texas corporation
and the registrant hereunder (&#147;IBC&#148;), consummated its acquisition of Local
Financial Corporation, a Delaware corporation (&#147;Local&#148;), pursuant to the
Agreement and Plan of Merger dated as of January&nbsp;22, 2004 (the &#147;Merger
Agreement&#148;).&#160; Under the terms of the
Merger Agreement, LFC Acquisition Corp., a Delaware corporation and indirect
wholly owned subsidiary of IBC, was merged (the &#147;Merger&#148;) with and into Local,
with Local being the surviving corporation in the Merger.&#160; Immediately following the Merger, (i)
Local&#146;s banking subsidiary, Local Oklahoma Bank, was merged (the &#147;Bank Merger&#148;)
with and into IBC&#146;s lead banking subsidiary, International Bank of Commerce,
Laredo, Texas (&#147;IBOC&#148;), with IBOC being the surviving institution in the Bank
Merger, and (ii) Local, as the surviving entity in the Merger, was merged (the
&#147;Holding Company Merger&#148;) with and into IBC, with IBC being the surviving
corporation in the Holding Company Merger.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a
result of the Merger, Local shareholders will receive an aggregate of
approximately $274.9 million in cash and approximately 2.15 million shares of
IBC common stock.&#160; Under the terms of
the Merger Agreement, Local shareholders were entitled to elect to receive
cash, shares of IBC common stock or a combination thereof in the Merger,
subject to the requirement that 75% of Local&#146;s shares be exchanged for cash and
25% be exchanged for IBC common stock.&#160;
Based on the elections of Local shareholders and the terms of the Merger
Agreement, Local shareholders who elected to receive shares of IBC common stock
in the Merger and Local shareholders who did not timely make a cash/stock
election will be exchanged entirely for shares of IBC common stock.&#160; As to those Local shares for which an
election to receive cash was timely made, each such share will be exchanged for
approximately $20.59 in cash and 0.033 shares of IBC common stock.&#160; The exchange rate for those Local
shareholders receiving IBC shares in the Merger is 0.5170 shares of IBC common
stock for each share of Local.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A copy
of the press release announcing the consummation of the Merger is filed as
Exhibit 99.1 to this Current Report on Form 8-K.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC&#146;s
Registration Statement on Form S-4 (Registration No. 333-113767), which was
declared effective by the Securities and Exchange Commission on April&nbsp;13,
2004, sets forth certain information regarding the Merger, including the date
and manner of the Merger, the nature and amount of the consideration paid by
IBC, the method used for determining the amount of such consideration, the
nature of any material relationship between Local and IBC or any of its
affiliates, any officer or director of IBC or any associate of any such officer
or director, the nature of Local&#146;s business and the intended structure and
operation of the combined company created in the Merger.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\jms\sshanka\04-7122-1\task139439\7122-1-ba.htm',USER='srskrishnamurthy',CD='Jun 21 18:01 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
7. Financial Statement, Pro Forma Financial Information and Exhibits</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(a)</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Financial Statements of
Business Acquired.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
financial statements required by this item are not being filed herewith. To the
extent such information is required by this item, they will be filed with the
Securities and Exchange Commission by amendment as soon as practicable, but not
later than 60 days after the date on which this Current Report on Form 8-K is
required to be filed.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(b)</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Pro Forma Financial
Information.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
pro forma financial information required by this item are not being filed
herewith. To the extent such information is required by this item, they will be
filed with the Securities and Exchange Commission by amendment as soon as
practicable, but not later than 60 days after the date on which this Current
Report on Form 8-K is required to be filed.</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(c)</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Exhibits.&#160; </font></b><font size="2" style="font-size:10.0pt;">The following exhibits are
being filed herewith:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="90%" style="border-collapse:collapse;margin-left:.5in;width:90.0%;">
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.44%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.7%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="90%" valign="top" style="padding:0in 0in 0in 0in;width:90.86%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release
  dated June&nbsp;21, 2004.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="49%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTERNATIONAL BANCSHARES<br>
  CORPORATION</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="49%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:49.0%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant)</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="7%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="7%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.16%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:32.48%;">
  <p align="left" style="margin:0in 0in .0001pt 30.0pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DENNIS E. NIXON</font></p>
  </td>
  <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.36%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt 30.0pt;punctuation-wrap:simple;text-align:left;text-autospace:none;text-indent:-10.0pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="7%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.28%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DENNIS E. NIXON,
  President,</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="7%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.28%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and Chief
  Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="7%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.28%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.0%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:&#160; June&nbsp;21, 2004.</font></p>
  </td>
  <td width="7%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:7.72%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="41%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:41.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="368" style="border:none;"></td>
  <td width="30" style="border:none;"></td>
  <td width="26" style="border:none;"></td>
  <td width="209" style="border:none;"></td>
  <td width="89" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="6%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:6.74%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
  Number</font></b></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="84%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:84.12%;">
  <p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.74%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.14%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:84.12%;">
  <p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.74%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.14%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in 0in 0in 0in;width:84.12%;">
  <p align="left" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated June&nbsp;21, 2004.</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<SEQUENCE>2
<FILENAME>a04-7122_1ex99d1.htm
<DESCRIPTION>EX-99.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman"><img width="287" height="77" src="g71221mmimage002.gif"></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.56%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Contact:&#160; </font></b></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tom Travis</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.96%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jennifer Minx or Kate Stouffer</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.56%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">International
  Bancshares Corporation</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.96%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KGBTexas
  Public Relations</font></p>
  </td>
 </tr>
 <tr>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.56%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.54%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(405)
  841-2999</font></p>
  </td>
  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.96%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(210)
  826-8899</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERNATIONAL BANCSHARES
CORPORATION</font></b></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPLETES ACQUISITION OF
LOCAL FINANCIAL CORPORATION</font></b></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(June
21, 2004) LAREDO, Texas</font></b> &#151; International Bancshares Corporation (NASDAQ:
IBOC) announced today the successful completion of its acquisition of Local
Financial Corporation (NASDAQ: LFIN), a move that firmly establishes IBC as one
of the largest independent banks based in Texas and Oklahoma. The acquisition
increased IBC&#146;s assets to approximately $9.5 billion on a pro forma basis,
without giving effect to purchase accounting adjustments, from $6.6 billion as
of March 31, 2004, and brought its total number of branches from 109 to 161 in
Texas and Oklahoma.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;We
are excited that the acquisition of LFIN is completed,&#148; said IBC Chairman, CEO
and President Dennis E. Nixon. &#147;By expanding into Oklahoma, we are reinforcing
our position along the NAFTA &#150; IH 35 trade corridor, which is one of the
fastest growing sectors in America. Our continued expansion and profitability
serve as a testament to our strong commitment to deliver value to our
shareholders and add depth to the strong customer base IBC enjoys.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
branches of LFIN&#146;s former bank subsidiary, Local Oklahoma Bank, began operating
as branches of IBC Bank at the close of business on Friday, June 18.&#160; IBC&#146;s personal bankers will continue to
offer the same superior customer service to which Local Oklahoma Bank&#146;s
customers have been accustomed.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;We
are excited about the opportunity to become deeply involved in Oklahoma and the
wonderful communities that we serve. We look forward to delivering on our motto
&#145;We Do More,&#146;&#148; said IBC Bank&#150;Oklahoma President and CEO Thomas L. Travis.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFIN
shareholders will receive an aggregate of approximately $274.9 million in cash
and approximately 2.15 million shares of IBC common stock in the
transaction.&#160; Under the terms of the
merger agreement, LFIN shareholders were entitled to elect to receive either
cash or IBC shares in the merger, subject to the requirement that 75% of LFIN&#146;s
shares be exchanged for cash and 25% be exchanged for IBC stock.&#160; Based on the elections of LFIN shareholders
and the terms of the merger agreement, LFIN shareholders who elected to receive
IBC shares in the merger and LFIN shareholders who did not timely make a
cash/stock election will be exchanged entirely for IBC shares.&#160; As to those LFIN shares for which an
election to receive cash was timely made, each such share will be exchanged for
approximately $20.59 in cash and 0.033 shares of IBC common stock.&#160; The exchange rate for those LFIN
shareholders receiving IBC shares in the merger is 0.5170 shares of IBC common
stock for each share of LFIN.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As
of March 31, 2004, LFIN had total assets of $2.9 billion and loans of $2.2
billion.&#160; Prior to the merger, LFIN
provided a full range of commercial and personal banking services at 52
locations across Oklahoma. Its primary markets included Oklahoma&#146;s largest
population and business centers: Oklahoma City, Tulsa and Lawton, as well as
cities from Miami in the northeastern corner of the state, to Elk City in the
west and Ardmore in southern Oklahoma.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
document and information on IBC&#146;s Web site may contain forward-looking
information (including information related to plans, projections or future
performance of IBC and its subsidiaries and planned market opportunities,
employment opportunities and synergies from the acquisition of LFIN), the
occurrence of which involve certain risks, uncertainties, assumptions and other
factors which could materially affect future results. If any of these risks or
uncertainties materializes or any of these assumptions proves incorrect, IBC&#146;s
results could differ materially from IBC&#146;s expectations in these statements.
IBC does not assume any obligation and does not intend to update these
forward-looking statements. For further</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">information, please see
IBC&#146;s reports filed with the Securities and Exchange Commission (SEC) pursuant
to the Securities Exchange Act of 1934, which are available at the SEC&#146;s Web
site at www.sec.gov.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


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