Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(Print or Type Responses)
1. Name and Address of Reporting Person *
Coburn John Cameron
  2. Issuer Name and Ticker or Trading Symbol
Cape Fear Bank CORP [CAPE]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
President and CEO
(Last)
(First)
(Middle)
1117 MILITARY CUTOFF ROAD
3. Date of Earliest Transaction (Month/Day/Year)
06/05/2007
(Street)

WILMINGTON, NC 28405
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 06/05/2007   P   245 A $ 10.45 117,320 (6) D (1) (2)  
Common Stock               1,050 (6) D  
Common Stock               1,850 (3) (6) I By 401 (k)
Common Stock               3,041 (6) I By Trust for minor child

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option Grant (Right to Buy) $ 7.01               (4) 06/17/2009 Common Stock 32,812   32,812 (6) D  
Director Stock Option (Righ to Buy) $ 7.01             06/17/1999 06/17/2009 Common Stock 11,484   11,484 (6) D  
Director Stock Option Grant (Right to Buy) $ 3.97             02/21/2002 02/21/2012 Common Stock 5,906   5,906 (6) D  
Employee Stock Option Grant (Right to Buy) $ 3.97             02/21/2003 02/21/2012 Common Stock 9,843   9,843 (6) D  
Employee Stock Option Grant (Right to Buy) $ 10.25               (5) 07/22/2015 Common Stock 36,093   36,093 (6) D  
Director Stock Option Grant (Right to Buy) $ 10.25             01/22/2006 07/22/2015 Common Stock 5,643   5,643 (6) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Coburn John Cameron
1117 MILITARY CUTOFF ROAD
WILMINGTON, NC 28405
  X     President and CEO  

Signatures

 John Cameron Coburn, By: William R. Lathan, Jr., Attorney-in-Fact   06/07/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Owned by the John Cameron Coburn Revocable Trust dated July 5, 2007.
(2) This report reflects the movement of 111,500 shares previously listed as direct into the John Cameron Coburn Revocable Trust Agreement Dated July 22, 2005.
(3) The information in this report is based on the plan statement as of December 31, 2006.
(4) This option vests 20% annually beginning on 6/17/2000.
(5) This option vests 25% annually beginning on 07/22/2006.
(6) As adjusted to reflect the effect of a 5% stock dividend which became effective June 30, 2006. As a result of the stock dividend, the reporting person received an aggregate of 5,625 and 223 additional shares which are included in the common stock shares reported as held directly and indirectly, respectively. At the same time, and in accordance with antidilution provisions of the Issuer's stock option plans, the reporting person's stock options became exercisable for 4,850 additional shares, and the exercise price was similarly adjusted.
 
Remarks:
The Issuer is the successor issuer under Rule 12g-3(a) to Cape Fear Bank pursuant to a statutory share exchange in which the Issuer became the Bank's parent holding company but which did not alter the proportionate interests of security holders.  The Reporting Person's Section 16 reports previously were filed with the Federal Deposit Insurance Corporation.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.