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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) July 30, 2004
                                                          -------------


                          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 July 30, 2004, 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 August 27, 2004 to shareholders of record as
of the close of business on August 13, 2004.

      A copy of the Company's press release dated July 30, 2004 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 July 30, 2004




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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:  August 3, 2004                 By: /s/ Michael C. Gerald
                                           -------------------------------------
                                           Michael C. Gerald
                                           President and Chief Executive Officer