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): FEBRUARY 27, 2006

                            CAPITAL BANK CORPORATION
             (Exact name of registrant as specified in its charter)

          North Carolina            000-30062            56-2101930
  (State or other jurisdiction     (Commission        (I.R.S. Employer
        of incorporation)          File Number)    Identification Number)

                               4901 Glenwood Ave.
                          Raleigh, North Carolina 27612
                    (Address of principal executive offices)

                                 (919) 645-6400
              (Registrant's telephone number, including area code)

                                       N/A
          (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:

[ ] Written communications pursuant to Rule 425 under the Securities
    Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
    Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
    Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

================================================================================



ITEM 8.01  OTHER EVENTS

On February 27, 2006, Capital Bank Corporation (the "Company"), the parent
company of Capital Bank, announced that its Board of Directors had authorized a
stock repurchase program to acquire up to 1,000,000 shares of the Company's
common stock, which represents approximately 8.5% of the 11,734,786 current
outstanding shares of common stock. The program, which is expected to be
completed within 24 months, will be dependent on market conditions and other
regulatory approvals, and there is no guarantee as to the exact number of shares
to be repurchased by the Company. For more information, reference is made to the
Company's press release dated February 27, 2006, a copy of which is attached to
this report as Exhibit 99.1 and is incorporated herein by reference.

ITEM 9.01  FINANCIAL STATEMENTS AND EXHIBITS.

(d)    Exhibits

99.1   Press Release dated February 27, 2006.



                                    SIGNATURE

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.

                                                     CAPITAL BANK CORPORATION

                                                     By: /s/ B. Grant Yarber
                                                         -----------------------
                                                         B. Grant Yarber
                                                         Chief Executive Officer

Date: February 27, 2006

EX-99.1

                                                                    EXHIBIT 99.1

NEWS RELEASE                                                            CONTACT:
                                                                        -------
                                                                 B. Grant Yarber
                                           President and Chief Executive Officer
                                                          Phone:  (919) 645-3494
FOR IMMEDIATE RELEASE                          Email: gyarber@capitalbank-nc.com

           CAPITAL BANK CORPORATION ANNOUNCES STOCK REPURCHASE PROGRAM

RALEIGH, N.C. - February 27, 2006 - Capital Bank Corporation (Nasdaq: CBKN), the
parent company of Capital Bank, announced that its Board of Directors has
authorized a stock repurchase program to acquire up to 1,000,000 shares, or
approximately 8.5% of 11,734,786 currently outstanding shares of common stock.
The program, which is expected to be completed within 24 months, will be
dependent upon market conditions and other regulatory approvals, and there is no
guarantee as to the exact number of shares to be repurchased by the Company.
Repurchases under this program will be made using the Company's own cash
resources.

B. Grant Yarber, President and Chief Executive Officer, stated, "The Board of
Directors considers the Company's common stock to be an attractive investment.
It is expected that a reduction in the amount of the Company's outstanding
common stock would have the effect of increasing the Company's per share
earnings and return on equity." According to Mr. Yarber, the repurchases
generally would be effected through open market purchases, although he did not
rule out the possibility of unsolicited negotiated transactions or other types
of repurchases.

Capital Bank Corporation, headquartered in Raleigh, N.C., with approximately
$1.3 billion in total assets, offers a broad range of financial services.
Capital Bank operates 25 banking offices in Asheville (3), Burlington (4), Cary,
Graham (2), Greensboro, Hickory, Mebane, Morrisville, Oxford, Pittsboro, Raleigh
(4), Sanford (3), Siler City and Wake Forest. The Company's website is
http://www.capitalbank-nc.com.

Information in this press release contains forward-looking statements. These
statements involve risks and uncertainties that could cause actual results to
differ materially, including without limitation, the effects of future economic
conditions, governmental fiscal and monetary policies, legislative and
regulatory changes, the risks of changes in interest rates, and the effects of
competition. Additional factors that could cause actual results to differ
materially are discussed in Capital Bank Corporation's filings with the
Securities and Exchange Commission, including without limitation its Annual
Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports
on Form 8-K. Capital Bank Corporation does not undertake a duty to update any
forward-looking statements in this press release.

                                       ###