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                       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) May 27, 2003
                                                           ------------


                          COASTAL FINANCIAL CORPORATION
                          -----------------------------
             (Exact name of registrant as specified in its charter)


      Delaware                      0-19684               57-0925911
      --------                    -----------            ------------
(State or other jurisdiction      (Commission            (IRS Employer
of incorporation)                 File Number)           Identification No.)


               2619 Oak Street, Myrtle Beach, South Carolina 29577
               ---------------------------------------------------
                    (Address of principal executive offices)


                                 (843) 205-2000
                                 --------------
              (Registrant's telephone number, including area code)


                                 Not Applicable
                                 --------------
          (Former name or former address, if changed since last report)




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ITEM 5.     OTHER EVENTS
            ------------

      On May 27, 2003, the Board of Directors of Coastal  Financial  Corporation
(the  "Company")  declared a 10% stock  dividend  on the  Company's  outstanding
shares of common stock, payable on June 24, 2003 to shareholders of record as of
the close of business on June 10, 2003.

      A copy of the Company's  press release dated May 27, 2003  announcing  the
stock  dividend is attached  hereto as Exhibit 99.1 and  incorporated  herein by
reference.


ITEM 7.     FINANCIAL STATEMENTS AND OTHER EXHIBITS
            ---------------------------------------

            Exhibit 99.1            Press Release Dated May 27, 2003




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                                   SIGNATURES


      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.

                                       COASTAL FINANCIAL CORPORATION



Dated:  May 28, 2003                   By: /s/ Michael C. Gerald
                                           -------------------------------------
                                           Michael C. Gerald
                                           President and Chief Executive Officer




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                                  EXHIBIT 99.1

                        PRESS RELEASE DATED MAY 27, 2003