CORRECTING and REPLACING Coastal Financial Corporation Myrtle Beach, South Carolina; Announces Quarterly Cash Dividend

Coastal Financial Corporation Myrtle Beach, South
Carolina; Announces an Increase in Quarterly Cash Dividend should
read: Coastal Financial Corporation Myrtle Beach, South Carolina;
Announces Quarterly Cash Dividend (sted Coastal Financial Corporation
Myrtle Beach, South Carolina; Announces an Increase in Quarterly Cash
Dividend).

   The corrected release reads:

   COASTAL FINANCIAL CORPORATION MYRTLE BEACH, SOUTH CAROLINA;
ANNOUNCES QUARTERLY CASH DIVIDEND

   Coastal Financial Corporation (NASDAQ:CFCP) today announced that
the Corporation's Board of Directors declared a five cent ($0.05) per
share dividend on the Company's common stock. The cash dividend will
be payable October 26, 2005 to Shareholders of record as of October
12, 2005.
   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 with over $1.5 billion in assets, 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
http://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.

   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.

   Investor Relations

   Analysts, investors and others seeking financial information
should contact:
-0-
*T
          Susan J. Cooke - Senior Vice President and Secretary
          Coastal Financial Corporation
          2619 Oak Street
          Myrtle Beach, South Carolina 29577
          [phone]
*T

   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. The Company disclaims any obligation to
update such forward-looking statements.