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       COASTAL FINANCIAL CORPORATION ANNOUNCES INTENDED STOCK TRANSACTIONS
                    BY PRESIDENT AND CHIEF EXECUTIVE OFFICER

MYRTLE BEACH, S.C., Feb. 16, 2005 - Coastal Financial Corporation (Nasdaq: CFCP)
today announced that Michael C. Gerald, President and Chief Executive Officer,
intends to sell in periodic open market transactions and gift in other
transactions up to 35,000 shares of Coastal Financial Corporation common stock
during calendar year 2005. According to Mr. Gerald, the purpose of the intended
transactions, which equal approximately 23% of his holdings of Coastal Financial
Corporation common stock, is personal tax planning, philanthropy, gifting and
estate planning.

Coastal Financial Corporation, headquartered in Myrtle Beach, South Carolina,
offers a broad range of commercial, consumer and mortgage financial services
through two subsidiaries, Coastal Federal Bank and Coastal Retirement, Estate
and Tax Planners, Inc. Coastal Federal Bank, with assets over $1.3 Billion, is a
federally chartered and FDIC insured community bank with nineteen offices
serving the communities of Horry and Georgetown Counties, South Carolina and
Brunswick and New Hanover Counties, North Carolina. Coastal Retirement, Estate
and Tax Planners offers professional, objective, fee-based financial planning
services. Additional information about Coastal Federal is available on its web
site at www.coastalfederal.com .

Stock Trading Information

The common stock of Coastal Financial Corporation is traded on the Nasdaq Stock
Market under the symbol "CFCP." For information, contact Raymond James Financial
Services at 1-843-918-7600, Herzog, Heine, Geduld, Inc. at 1-800-523-4936,
Knight Securities at 212-336-8690, Spear, Leeds & Kellogg at 1-800-526-3160 or
Trident Securities at 1-800-222-2618.

Dividend Reinvestment and Direct Stock Purchase Plan

Coastal Financial Corporation offers Shareholders a Dividend Reinvestment and
Direct Stock Purchase Plan which provides existing and new Shareholders a
convenient means for making purchases of Coastal Financial shares free of fees
and brokerage commissions. Additional cash contributions, up to $1,000 per
quarter, can be made to purchase additional shares. For more information,
contact the Transfer Agent at 1-800-866-1340, Ext. 2514, or Investor Relations.

Shareholder Services

Shareholders desiring to enroll in the Coastal Financial Corporation Dividend
Reinvestment Plan, change the name, address, or ownership of their stock
certificates, report lost or stolen certificates, or to consolidate accounts
should contact the Transfer Agent at 1-800-866-1340, Ext. 2514, or Investor
Relations.



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Investor Relations

Analysts, investors and others seeking financial information should contact:

    Susan J. Cooke - Senior Vice President and Secretary
    Coastal Financial Corporation
    2619 Oak Street
    Myrtle Beach, South Carolina  29577
    (843) 205-2676

Forward Looking Statements

This news release may contain certain "forward-looking statements" within the
meaning of Section 27A of the Securities Exchange Act of 1934, as amended, that
represent Coastal Financial Corporation's (the "Company") expectations or
beliefs concerning future events. Such forward-looking statements are about
matters that are inherently subject to risks and uncertainties. Factors that
could influence the matters discussed in certain forward-looking statements
include the timing and amount of revenues that may be recognized by the Company,
continuation of current revenue and expense trends (including trends affecting
charge-offs), absence of unforeseen changes in the Company's markets, legal and
regulatory changes, and general changes in the economy (particularly in the
markets served by the Company). Because of the risks and uncertainties inherent
in forward looking statements, readers are cautioned not to place undue reliance
on them, whether included in this news release or made elsewhere from time to
time by the Company or on its behalf. Except as may be required by applicable
law or regulation, the Company disclaims any obligation to update such
forward-looking statements.