Exhibit 99.1


NEWS ANNOUNCEMENT


Date:             April 26, 2006

Contact:          Susan J. Cooke

To:               News Media

Release Date:     Immediate



                          COASTAL FINANCIAL CORPORATION
                  ANNOUNCES FISCAL 2006 SECOND QUARTER EARNINGS


Myrtle  Beach,   South  Carolina,  (April  26,  2006)  . . .  Coastal  Financial
Corporation (Nasdaq/CFCP) today announced earnings for the second fiscal quarter
ended March 31, 2006.

Net income for the second quarter of fiscal 2006 increased 12.3% to $4.6 million
or $0.24 per share  ($0.23 per share  diluted),  as compared to $4.1  million or
$0.21 per share ($0.20 per share diluted) for the same period of fiscal 2005.

Net income for the first two  quarters  of fiscal 2006  increased  11.1% to $9.1
million or $0.47 per share ($0.45 per share  diluted),  compared to $8.2 million
or $0.42 per share ($0.40 per share diluted) for the same period of fiscal 2005.

At March 31, 2006, assets totaled $1.64 billion, an increase of 13.5% from $1.45
billion at March 31, 2005. During the same period,  Customer Deposits  increased
10.7%,  from $804.7 million to $891.1 million,  and loans  receivable  increased
16.6%, from $864.4 million to $1.0 billion.  In comparing the second quarters of
fiscal 2005 and 2006, net interest  income after  provision for loan losses grew
13.9% to $12.8 million.  Returns on average assets and average equity were 1.14%
and 18.4%, respectively, for the six months ended March 31, 2006, as compared to
1.19% and 18.6% for the comparable period in fiscal 2005.

At March 31, 2006,  non-performing  assets to total assets was 0.26% as compared
with 0.53% at March 31, 2005.

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<PAGE>

Michael C. Gerald,  President and Chief Executive  Officer of Coastal  Financial
Corporation,  said, "We are very pleased with the continued earnings momentum of
Coastal  Financial  Corporation  for the first two quarters of fiscal 2006. This
continued level of operating  performance reflects well on our Commitment to our
Customers  and  Communities,  and to our  steadfast  dedication to our QUEST FOR
EXCELLENCE Business Model."

"During the second  quarter of fiscal  2006,  we  announced  a 9.8%  increase in
fiscal 2006 first quarter net income, and a $.05 per share cash dividend payable
April 14, 2006 to  Shareholders  of record March 31, 2006.  Other notable events
include the nearing of  completion of our new  prototype  branch  offices at the
intersection of Hwy 701 and Country Club Drive in Conway, South Carolina, at the
intersection of Hwy 544 and Singleton  Ridge Road in Conway,  South Carolina and
at Sayebrook West on Hwy 544 in Surfside Beach,  South  Carolina.  These results
and activities are  indicative of the continued  growth and progress  envisioned
under our QUEST FOR EXCELLENCE Business Model," concluded Mr. Gerald.

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 $1.6 billion, is a
federally  chartered and FDIC insured  community  bank with  twenty-two  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.

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. 2511, or Investor Relations.


                                     -MORE-

<PAGE>

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. 2511, 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
         (843) 205-2676

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:

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

o     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.

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


                                     -MORE-

<PAGE>

o     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.

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

o     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.

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

o     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.

o     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.

o     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.



                                      #####

<PAGE>
<TABLE>
<CAPTION>

                                     COASTAL FINANCIAL CORPORATION
                                   CONSOLIDATED FINANCIAL HIGHLIGHTS
                        (Unaudited - Dollars in Thousands Except Per Share Data)

                                     Three Months Ended                Six Months Ended
                                    March 31,  March 31,  Percentage  March 31,  March 31,  Percentage
                                      2006       2005       Change      2006        2005      Change
                                      ----       ----       ------      ----        ----      ------
<S>                                 <C>        <C>          <C>       <C>         <C>         <C>
Interest Income                     $24,138    $18,912      27.63%    $47,176     $36,858     27.99%
Interest Expense                     10,970      7,016      56.36%     20,732      13,446     54.19%
                                    -------    -------                -------     -------

Net Interest Income                  13,168     11,896      10.69%     26,444      23,412     12.95%

Provision for Loan Losses               330        625     -47.20%        730         975    -25.13%
                                    -------    -------                -------     -------

Net Interest Income After
  Provision for Loan Losses          12,838     11,271      13.90%     25,714      22,437     14.61%

Other Income*                         4,201      3,336      25.93%      7,790       6,102     27.66%

General & Administrative
  Expenses                            9,926      8,319      19.32%     19,606      16,100     21.78%
                                    -------    -------                -------     -------

Earnings Before Taxes                 7,113      6,288      13.12%     13,898      12,439     11.73%

Income Taxes                          2,469      2,153      14.68%      4,810       4,260     12.91%
                                    -------    -------                -------     -------


Net Income                          $ 4,644    $ 4,135      12.31%    $ 9,088     $ 8,179     11.11%
                                    =======    =======                =======     =======

Earnings Per Common Share

  Basic                             $  0.24    $  0.21      14.29%    $  0.47     $  0.42     11.90%
                                    =======    =======                =======     =======
  Diluted                           $  0.23    $  0.20      15.00%    $  0.45     $  0.40     12.50%
                                    =======    =======                =======     =======

Average Common Shares Outstanding
Basic (in thousands)                 19,547     19,362       0.96%     19,488      19,278      1.09%

Average Common Shares Outstanding
Diluted (in thousands)               20,440     20,524      -0.41%     20,380      20,367      0.06%

Net Interest Margin                    3.57%      3.68%     -2.99%       3.64%       3.67%    -0.82%

Return on Average Assets               1.15%      1.17%     -1.71%       1.14%       1.19%    -4.20%

Return on Average Equity              18.63%     18.48%      0.81%      18.38%      18.57%    -1.02%

</TABLE>

* Gains (losses) on sales of securities of $30,000 and ($16,000) are included in
other income for the quarter and six months ended March 31, 2006,  respectively.
For the  quarter  and six  months  ended  March  31,  2005,  gains  on  sales of
securities were $248,000 and $406,000, respectively.

<PAGE>

                          COASTAL FINANCIAL CORPORATION
                        CONSOLIDATED FINANCIAL HIGHLIGHTS
            (Unaudited - Dollars in Thousands Except Per Share Data)
                                   (CONTINUED)

<TABLE>
<CAPTION>

                                                                            Percentage
                                      At            At            At        Change from
                                   March 31,     Sept 30,      March 31,   September 30,
                                     2006          2005          2005          2005
                                  ----------    ----------    ----------    ----------
<S>                              <C>           <C>           <C>             <C>
Total Assets (1)                  $1,643,991    $1,543,459    $1,448,158       6.51%

Loans Receivable, Net             $1,008,168    $  942,381    $  864,407       6.98%

Customer Deposits (1) (2)         $  891,136    $  901,013    $  804,656      -1.10%

Shareholders' Equity              $  100,209    $   97,221    $   89,534       3.07%

Non-Performing Assets
  to Total Assets (3)                   0.26%         0.22%         0.53%     18.18%

Allowance for Loan Losses as a
  Percentage of Total Net Loans         1.21%         1.25%         1.36%     -3.20%

Tangible Book Value
  Per Share                       $     5.12    $     5.00    $     4.61       2.40%

<CAPTION>

                                                 At or for the      At or for the
                                              Three Months Ended  Three Months Ended
                                                   March 31,           Sept. 30,      Percentage
                                                     2006                2005           Change
                                              ------------------  ------------------  ----------
<S>                                                <C>                  <C>              <C>
Credit Quality:
   Non-Performing Loans                             $3,137              $2,641          18.78%
   Non-Performing Loans as a % of Loans              0.31%               0.28%          10.71%
   Allowance for Loan Losses as a % of
     Non-Performing Loans                          389.12%             444.83%         -12.52%
   Non-Performing Assets (3)                        $4,258              $3,459          23.10%
   Non-Performing Assets as a % of Loans
     and Foreclosed Property                         0.42%               0.37%          13.51%
   Net Loan Charge-Offs
     as a % of Average Loans (Annualized)            0.05%               0.12%         -58.33%

Stock Performance
At quarter end:
   Market Price Per Share of Common Stock           $13.76              $13.65           0.81%
   Indicated Annual Dividend                         $0.20               $0.18          11.11%
   Dividend Yield                                    1.45%               1.32%           9.85%
   Price/Book Ratio                                269.00%             273.00%          -1.47%
   Market Capitalization                          $269,464            $265,689           1.42%
</TABLE>

(1) Total Assets and Customer  Deposits in prior periods have been  reclassified
to conform to the March 31, 2006 presentation.

(2)  Customer  Deposits  exclude  brokered  deposits.   Brokered  deposits  were
$189,304,  $169,905 and $85,625 at March 31, 2006,  September 30, 2005 and March
31, 2005, respectively.

(3) Non-performing  assets consist of non-accrual loans 90 days or more past due
and real estate owned.