EXHIBIT 21

                         SUBSIDIARIES OF THE REGISTRANT

Parent
- ------

Coastal Financial Corporation


Subsidiary                                       Percentage      State of
- ----------                                       ----------      --------
                                                 Owned           Incorporation
                                                 -----           -------------

Coastal Federal Bank                             100%            United States

Coastal Investor Services, Inc.                  100%            South Carolina

Coastal Financial Capital Trust I                100%            Delaware

Coastal Planners Holding Corporation (1)         100%            Delaware

Coastal Retirement Estate and Tax                100%            South Carolina
  Planners, Inc. (4)

Coastal Federal Holding Corporation (1)          100%            Delaware

Coastal Real Estate Investment                   100%            North Carolina
  Corporation (3)

Coastal Mortgage Bankers and                     100%            South Carolina
  Realty Co., Inc. (1)

Sherwood Development                             100%            South Carolina
  Corporation (2)


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     (1)  First tier subsidiaries of Coastal Federal Bank.
     (2)  Second  tier  subsidiary  of  Coastal  Federal  Bank  and  first  tier
          subsidiary  of Coastal  Mortgage  Bankers  and  Realty.  Shady  Forest
          Development   Corporation,    Ridge   Development   Corporation,   501
          Development  Corporation,   and  North  Beach  Investment,  Inc.  were
          dissolved effective September 30, 2004.
     (3)  First  tier   operating   subsidiary   of  Coastal   Federal   Holding
          Corporation,   consolidated   with  Coastal   Federal  for  Regulatory
          Reporting.
     (4)  First  tier   operating   subsidiary  of  Coastal   Planners   Holding
          Corporation.