IBC Announces Solid Earnings

LAREDO, Texas--(Business Wire)--
International Bancshares Corporation ("IBC") (Nasdaq:IBOC) today
reported net income for the first nine months of 2008 of $100.4
million, or $1.46 per share - basic ($1.46 per share diluted) compared
to $85.9 million, or $1.24 per share - basic ($1.23 per share diluted)
for the first nine months of 2007, which represents an increase of
18.7 percent in diluted earnings per share and 16.9 percent in net
income. Net income for the third quarter of 2008 was $33.9 million or
$.49 per share - basic ($.49 per share - diluted) compared to $32.7
million or $.47 per share - basic ($.47 per share - diluted) for the
third quarter 2007, which represents an increase of 4.3 percent in
diluted earnings per share and 3.7 percent in net income.

Net income for the first nine months of 2007 was negatively
impacted by an impairment charge of $13.1 million, after tax, on
certain investments. A significant portion of the impairment charge
was the result of the Company's strategic identification of certain
investment securities sold in 2007 with the proceeds from the sales
used to reduce Federal Home Loan Bank ("FHLB") borrowings.

"Net income for the first nine months and the third quarter of
2008 represents a solid level of performance and reflects positively
on IBC's commitment to superior earnings despite the enormous
disruption in the national economy and the historic intervention from
the government that will potentially result in significant changes in
the financial services industry. I am pleased with the Company's
performance, especially during this period of extraordinary turmoil
and anxiety existing in the U.S. and world credit markets. During this
crisis, the Company has maintained strong liquidity, its sound credit
underwriting standards and a sound investment strategy.

"As a further note, the Company is currently studying the pros and
cons of participating in the U.S. Treasury Capital Purchase Program.
Even though the Company maintains strong levels of capital, and credit
quality continues to be good, the Company is considering participating
in the Treasury's plan because the plan may offer significant benefits
to the Company, its shareholders and customers by providing the
Company an additional layer of capital," said Dennis E. Nixon,
President and CEO.

Total assets at September 30, 2008 were $11.5 billion compared to
$11.2 billion at December 31, 2007. Total loans were $5.7 billion at
September 30, 2008 compared to $5.5 billion at December 31, 2007.
Deposits were $7.0 billion at September 30, 2008 compared to $7.2
billion at December 31, 2007.

IBC is a multi-bank financial holding company headquartered in
Laredo, Texas, with 263 facilities and 420 ATMs serving 101
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 future developments or events, expectations, plans, projections or
future performance of IBC and its subsidiaries, the occurrence of
which involve certain risks and uncertainties, including those
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.

International Bancshares Corporation
Judith Wawroski, 956-722-7611

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