IBOC International Bancshares Corporation

International Bancshares Corporation ("IBC") (NASDAQ:IBOC) 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 percent 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. "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. IBC (NASDAQ:IBOC) is a $10.3 billion multi-bank financial holding company headquartered in Laredo, Texas, with more than 190 facilities and more than 300 ATMs serving more than 75 communities in Texas and Oklahoma.