EXHIBIT 21

                         SUBSIDIARIES OF THE REGISTRANT

Parent
------
Coastal Financial Corporation


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

Coastal Federal Bank                       100%                United States

Coastal Federal Mortgage, Inc.             100%                South Carolina

Coastal Investor Services, Inc.            100%                South Carolina

Coastal Federal Holding Corporation        100%                Delaware

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

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

Shady Forest Development                   100%                South Carolina
  Corporation (2)

Sherwood Development                       100%                South Carolina
  Corporation (2)

Ridge Development Corporation (2)          100%                South Carolina

501 Development Corporation (2)            100%                South Carolina

North Beach Investment, Inc. (2)           100%                South Carolina

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(1)  First tier subsidiaries of Coastal Federal.
(2)  Second tier  subsidiaries of Coastal Federal and first tier subsidiaries of
     Coastal Mortgage.
(3)  First tier operating  subsidiary of Coastal  Federal  Holding  Corporation,
     consolidated with Coastal Federal for Regulatory Reporting.