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<SEC-DOCUMENT>0001104659-04-019891.txt : 20040716
<SEC-HEADER>0001104659-04-019891.hdr.sgml : 20040716
<ACCEPTANCE-DATETIME>20040716162042
ACCESSION NUMBER:		0001104659-04-019891
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040716
ITEM INFORMATION:		Other events
FILED AS OF DATE:		20040716

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:		04918318

	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>a04-7939_18k.htm
<DESCRIPTION>8-K
<TEXT>
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<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;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b></font></p>

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

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

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

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

<p align="center" style="margin:0in 0in .0001pt;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;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;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;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow: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</font></b></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">The Securities Exchange Act of 1934</font></b></font></p>

<p align="center" style="margin:0in 0in .0001pt;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;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date of Report
(Date of earliest event reported): July&nbsp;16, 2004</font></b></font></p>

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

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

<p align="center" style="margin:0in 0in .0001pt;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;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Commission
File Number 0-9439</font></b></font></p>

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

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Texas</font></b></font></p>
  </td>
  <td width="2%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:2.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">74-2157138</font></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other Jurisdiction<br>
  of incorporation or organization)</font></font></p>
  </td>
  <td width="2%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:2.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer<br>
  Identification No.)</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.12%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:2.22%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.66%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1200 San
  Bernardo, Laredo, Texas</font></b></font></p>
  </td>
  <td width="2%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:2.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">78040-1359</font></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal
  executive offices)</font></font></p>
  </td>
  <td width="2%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:2.22%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.66%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ZIP Code)</font></font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.12%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:2.22%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:48.66%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;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;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone
  number, including area code)&#160; <b><font style="font-weight:bold;">(956) 722-7611</font></b></font></font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.86%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" colspan="2" valign="bottom" style="padding:0in 0in 0in 0in;width:2.2%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.94%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;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;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">None</font></b></font></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;text-align:center;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former
  address, if changed since last report)</font></font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="354" style="border:none;"></td>
  <td width="5" style="border:none;"></td>
  <td width="11" style="border:none;"></td>
  <td width="5" style="border:none;"></td>
  <td width="346" style="border:none;"></td>
 </tr>
</table>

</div>

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

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

</div>

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


<div style="margin:0in 0in .0001pt;text-autospace:none;"><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;text-autospace:none;">&nbsp;</p>

<p style="margin:0in 0in .0001pt 76.5pt;text-indent:-76.5pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.</font></u></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">  <u>Other
Events and Regulation FD Disclosure</u></font></b></p>

<p style="margin:0in 0in .0001pt 76.5pt;text-indent:-76.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On July&nbsp;16, 2004, International Bancshares
Corporation (NASDAQ:&#160; IBOC) announced
that it will offer to purchase for cash any and all of the outstanding 11.0%
Senior Notes due 2004 originally issued by Local Financial Corporation.&#160; </font></font><font size="2" style="font-size:10.0pt;">The offer is being made as a
result of IBOC&#146;s acquisition of Local on June&nbsp;18, 2004 and as required by
the terms of the indenture governing the Notes. <font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;">&#160;&#160;</font>Th<font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;">e news release, attached
hereto and filed herewith as Exhibit&nbsp;99, is incorporated herein by reference.</font></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;">All of the information
furnished in Item&nbsp;5 of this report and the accompanying exhibits are also
intended to be included under &#147;Item&nbsp;9&nbsp;&#150; Regulation Fair Disclosure&#148;
and shall not be deemed to be &#147;filed&#148; for the purposes of Section&nbsp;18 of
the Securities and Exchange Act of 1934, as amended, is not subject to the
liabilities of that section&nbsp;and shall not be incorporated by reference in
any filing under the Securities Act of 1933, as amended.</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;">&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><font size="3" face="Times New Roman" style="font-size:12.0pt;">

<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 align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>

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

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">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></b></font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;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-autospace:none;text-indent:.5in;"><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="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTERNATIONAL BANCSHARES CORPORATION</font></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#160;
  (Registrant)</font></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">By:</font></b></font></p>
  </td>
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:21.34%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-autospace:none;text-indent:-10.0pt;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">/s DENNIS E. NIXON</font></b></font></p>
  </td>
  <td width="23%" valign="top" style="padding:0in 0in 0in 0in;width:23.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt 20.0pt;text-autospace:none;text-indent:-10.0pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.16%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:44.84%;">
  <p style="margin:0in 0in .0001pt 10.1pt;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DENNIS E.
  NIXON, President,<br>
  and Chief Executive Officer</font></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.16%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:44.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 20.0pt;text-autospace:none;text-indent:-10.0pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date: July&nbsp;16, 2004</font></b></font></p>
  </td>
  <td width="48%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:48.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;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;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


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<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font style="letter-spacing:0pt;text-decoration:none;text-shadow:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT 99</font></b></font></p>

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

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ANNOUNCES
CASH OFFER FOR NOTES ASSUMED</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN
LOCAL FINANCIAL CORPORATION ACQUISITION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><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-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(July&nbsp;16,
2004) LAREDO, Texas </font></b>&#151; International Bancshares
Corporation (NASDAQ: IBOC) today announced that it will offer to purchase for
cash any and all of the outstanding 11.0% Senior Notes due 2004 (the &#147;Notes&#148;)
originally issued by Local Financial Corporation.&#160; The offer is being made as a result of IBOC&#146;s acquisition of
Local on June&nbsp;18, 2004 and as required by the terms of the indenture
governing the Notes.</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;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-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The offer commenced today and will expire at 5:00 p.m., New York City
time, on August&nbsp;16, 2004 (the &#147;expiration time&#148;).&#160; Holders of Notes who have validly tendered
their Notes prior to the expiration time will receive a purchase price equal to
101% of the principal amount of the Notes, plus accrued and unpaid interest, if
any, to (but excluding) the payment date.&#160;
Notes tendered may be withdrawn at any time prior to the Withdrawal Time,
which is 5:00 p.m., New York City time, on August&nbsp;12, 2004.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;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-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This press release is neither an offer to purchase nor a solicitation
of an offer to sell securities. This offer is made only through the Change in
Control Notice and Offer to Purchase and the related Letter of Transmittal,
which are being mailed to noteholders today. Additional copies of these
documents may be obtained by contacting the Trustee under the indenture, The
Bank of New York, at (212) 298-1915.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;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-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBOC is a multi-bank financial holding company headquartered in Laredo,
Texas, with more than 160 facilities and more than 250 ATMs serving more than
70 communities in Texas and Oklahoma.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;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-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This document and information on IBOC&#146;s Web site may contain
forward-looking information (including information related to plans,
projections or future performance of IBOC and its subsidiaries and planned
market opportunities, employment opportunities and synergies from the
acquisition of Local), 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, IBOC&#146;s results could differ materially from
IBOC&#146;s expectations in these statements. IBOC does not assume any obligation
and does not intend to update these forward-looking statements. For further
information, please see IBOC&#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 <font style="color:blue;letter-spacing:0pt;text-decoration:none;text-shadow:none;"><font color="black" style="color:windowtext;text-decoration:none;">www.sec.gov</font></font>.</font></p>

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


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