ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 30, 2008, CapitalSouth Bancorp announced its third quarter 2008 results. The press release is attached hereto as Exhibit 99.1 to this Form 8-K. Supplemental financial information for the third quarter and nine months ended September 30, 2008, is included at the end of Exhibit 99.1 and may also be found on the website address given at the end of the press release. In accordance with General Instruction B.2 of Form 8-K, this information is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.