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
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(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)
01/15/2008
(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 01/15/2008   M   12,058 A $ 6.68 13,160 D  
Common Stock               123,186 D (1)  
Common Stock               2,065 (2) I By 401(k) plan
Common Stock               3,193 I By Trust for John Cameron Coburn, Jr.

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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) $ 6.68               (3) 06/17/2009 Common Stock 34,453   34,453 D  
Director Stock Option (Right to Buy) $ 6.68 01/15/2008   M     12,058 06/17/1999 06/17/2009 Common Stock 12,058 $ 0 0 D  
Director Stock Option Grant $ 3.78             02/21/2002 02/21/2012 Common Stock 6,201   6,201 D  
Employee Stock Option Grant (Right to Buy) $ 3.78             02/21/2003 02/21/2012 Common Stock 10,335   10,335 D  
Employee Stock Option Grant (Right to Buy) $ 9.76               (4) 07/22/2015 Common Stock 37,898   37,898 D  
Director Stock Option Grant $ 9.76             01/22/2006 07/22/2015 Common Stock 5,925   5,925 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   01/16/2008
**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) The number of shares is based on the reporting person's 401 (k) plan statement as of June 30, 2007.
(3) This option vests 20% annually beginning on June 17, 2000.
(4) This option vests 25% annually beginning on July 22, 2006.

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