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): June 22, 2006

CAPITAL BANK CORPORATION

(Exact name of registrant as specified in its charter)

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

333 Fayetteville Street, Suite 700

Raleigh, North Carolina 27601

(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:

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

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

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

o 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 June 22, 2006, the board of directors of Capital Bank Corporation declared a cash dividend of $0.06 per share payable on or after July 24, 2006 to shareholders of record on July 10, 2006.  The full text of the press release announcing the declaration of dividend is set forth in Exhibit 99.1 hereto and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)      Exhibits.

Exhibit No.	Description
99.1	Press Release dated June 23, 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:  June 23, 2006

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated June 23, 2006

EX-99.1

Exhibit 99.1

Capital Bank Corporation Declares Cash Dividend on Common Stock

          RALEIGH, N.C., June 23 /PRNewswire-FirstCall/ -- Capital Bank Corporation (Nasdaq: CBKN) announced that its Board of Directors approved on Thursday, June 22, 2006, a quarterly cash dividend on its common stock of $.06 per share. The dividend will be paid on or after July 24, 2006 to shareholders of record as of July 10, 2006.

          Capital Bank Corporation, headquartered in Raleigh, N.C., with more than $1.3 billion in total assets, offers a broad range of financial services. Capital Bank operates 26 banking offices in Asheville (3), Burlington (4), Cary, Graham (2), Greensboro, Hickory, Mebane, Morrisville, Oxford, Pittsboro, Raleigh (5), 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.

SOURCE  Capital Bank Corporation
          -0-                                        06/23/2006
          /CONTACT:  B. Grant Yarber, President and Chief Executive Officer of Capital Bank Corporation, +1-919-645-3494, or gyarber@capitalbank-nc.com /
          /Web site:  http://www.capitalbank-nc.com/
          (CBKN)