Coastal Financial Corporation Announces U.S. Banker Magazine Rankings for 2006

Coastal Financial Corporation (Nasdaq:CFCP) today
announced that, for the 7th consecutive year, U.S. Banker Magazine, in
its September 2006 edition, has ranked it the #1 Community Bank in the
Carolinas.
   In this edition, U.S. Banker Magazine featured its Ranking of the
Top 100 Publicly Traded Banks. This ranking features Banks with
between $1 billion and $10 billion in assets, ranked by 3-year average
Return On Average Equity. Coastal Financial Corporation was ranked
20th nationally in this listing.
   Michael C. Gerald, President and Chief Executive Officer of
Coastal Financial Corporation, said: "Over the sixteen years since
becoming a publicly owned Company, all of us at Coastal Financial
Corporation have worked diligently toward achieving our Basic
Corporate Objective of Maximizing The Value Of Our Shareholders'
Investment by focusing on our Long-Term Goal of Being The Best
Financial Services Company In Our Marketplace. To receive continuing
evidence of progress in those quests is very gratifying. In the U.S.
Banker Magazine rankings of the top 100 Publicly Traded Community
Banks over the past several years, among banks with assets less than
$1 billion, Coastal Financial Corporation was ranked 1st in the
Carolinas and 16th in the nation in 2000, 1st in the Carolinas and 5th
in the nation in 2001 and 1st in the Carolinas and 3rd in the nation
in 2002. In its ranking of the top 100 Publicly Traded Mid-Tier Banks,
with assets between $1 billion and $15 billion, Coastal Financial was
ranked 1st in the Carolinas and 39th in the nation in 2003. And, in
its ranking of the top 100 Publicly Traded Mid-Tier Banks with assets
between $1 billion and $10 billion, Coastal Financial Corporation
ranked 1st in the Carolinas and 30th in the nation in the 2004
edition, 1st in the Carolinas and 29th in the nation in the 2005
edition. It is particularly gratifying to have been ranked 1st in the
Carolinas and 20th in the nation this year in the company of this new
group of exceptionally high performing Mid-Tier banks."
   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 $1.6 billion in assets, is a federally chartered
and FDIC insured Community bank with twenty four 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, Inc. 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.

   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 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:

   Susan J. Cooke - Senior Vice President and Secretary
   Coastal Financial Corporation
   2619 Oak Street
   Myrtle Beach, South Carolina 29577
   [phone]

   Forward Looking Statements

   This report may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Exchange Act of
1934, as amended, that represent the Company's expectations or beliefs
concerning future events. All forward-looking statements are based on
assumptions and involve risks and uncertainties, many of which are
beyond the Company's control and which may cause its actual results,
performance or achievements to differ materially from the results,
performance or achievements contemplated by the forward-looking
statements. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include words such as "believe," "expect," "anticipate,"
"intend," "plan," "estimate" or words of similar meaning, or future or
conditional verbs such as "will," "would," "should," "could" or "may."
Forward-looking statements speak only as of the date they are made.
Such risks and uncertainties include, among other things:

   --  Competitive pressures among depository and other financial
        institutions in the Company's market areas may increase
        significantly.

   --  Adverse changes in the economy or business conditions, either
        nationally or in the Company's market areas, could increase
        credit-related losses and expenses and/or limit growth.

   --  Increases in defaults by borrowers and other delinquencies
        could result in increases in the Company's provision for
        losses on loans and related expenses.

   --  The Company's inability to manage growth effectively,
        including the successful expansion of the Company's Customer
        support, administrative infrastructure and internal management
        systems, could adversely affect the Company's results of
        operations and prospects.

   --  Fluctuations in interest rates and market prices could reduce
        the Company's net interest margin and asset valuations and
        increase expenses.

   --  The consequences of continued bank acquisitions and mergers in
        the Company's market areas, resulting in fewer but much larger
        and financially stronger competitors, could increase
        competition for financial services to the Company's detriment.

   --  The Company's continued growth will depend in part on its
        ability to enter new markets successfully and capitalize on
        other growth opportunities.

   --  Changes in legislative or regulatory requirements, or actions
        by the Securities and Exchange Commission ("SEC"), the
        Financial Accounting Standards Board ("FASB"), or the Public
        Company Accounting Oversight Board, applicable to the Company
        and its subsidiaries could increase costs, limit certain
        operations and adversely affect results of operations.

   --  Changes in tax requirements, including tax rate changes, new
        tax laws and revised tax law interpretations may increase the
        Company's tax expense or adversely affect its Customers'
        businesses.

   --  Company initiatives now in place or introduced in the future,
        not producing results consistent with historic growth rates or
        results which justify their costs.

   In light of these risks, uncertainties and assumptions, you should
not place undue reliance on any forward-looking statements in this
report. Except as may be required by applicable law or regulation, the
Company undertakes no obligation to publicly update or otherwise
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.