<SEC-DOCUMENT>0001552781-25-000029.txt : 20250317
<SEC-HEADER>0001552781-25-000029.hdr.sgml : 20250317
<ACCEPTANCE-DATETIME>20250213160644
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001552781-25-000029
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COASTAL FINANCIAL CORP
		CENTRAL INDEX KEY:			0001437958
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		ORGANIZATION NAME:           	02 Finance
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			WA

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		5415 EVERGREEN WAY
		CITY:			EVERETT
		STATE:			WA
		ZIP:			98203
		BUSINESS PHONE:		425-257-1652

	MAIL ADDRESS:	
		STREET 1:		5415 EVERGREEN WAY
		CITY:			EVERETT
		STATE:			WA
		ZIP:			98203
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>COASTAL FINANCIAL CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">5415 Evergreen Way</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Everett, WA 98203</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0; text-align: right">February 13, 2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">VIA EDGAR</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">U. S. Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Washington D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Attention: Shannon Davis and Michael Volley</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="width: 5%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 5%; font-weight: bold"><FONT STYLE="font-size: 10pt">Re:</FONT></TD>
    <TD STYLE="width: 90%; font-weight: bold"><FONT STYLE="font-size: 10pt">Coastal Financial <FONT STYLE="letter-spacing: -0.1pt">Corporation</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt; line-height: 108%">Form 10-K for Fiscal Year Ended December 31, 2023 </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt; line-height: 108%">Response dated January 24, 2025</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold"><FONT STYLE="font-size: 10pt; line-height: 108%">File No. 001-38589</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dear Ms. Davis and Mr. Volley:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Set forth below is the response
of Coastal Financial Corporation (the &ldquo;<U>Company</U>&rdquo; or &ldquo;<U>we</U>&rdquo;), to the comments received from the staff
(the &ldquo;<U>Staff</U>&rdquo;) of the U.S. Securities and Exchange Commission by letter dated January 30, 2025, with respect to the
Company&rsquo;s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company&rsquo;s response, dated January
24, 2025, to the Staff&rsquo;s prior letter dated December 20, 2024. For your convenience, we have reproduced the text of the Staff&rsquo;s
comments in <B>bold text</B> followed by the Company&rsquo;s response.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Form 10-K for Fiscal Year Ended December 31, 2023</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Concentrations of Credit Risk, page 7</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 12pt">1.</FONT></TD><TD STYLE="text-align: justify"><B><I>Staff&rsquo;s Comment:</I></B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 7.7pt; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">We note your response to prior comment 4.
We note that CCBX credit enhancement asset totaled $167 million at September 30, 2024 and BaaS credit enhancement income totaled $211
million for the nine months ended September 30, 2024 and appears to be material to your financial statements. Please revise future filings,
in the Business section and/or other sections as appropriate, to provide a roll forward of the CCBX credit enhancement asset for each
period presented, including increases related to expected losses recognized in the allowance for credit losses, reductions due to payments
received, reductions due to credit loss recoveries, and any other adjustments with appropriate discussion or tell us why you do not believe
this information is material. Additionally, please revise future filings to more clearly discuss when a payment is due from the CCBX partner
(e.g., when the receivable is charged off) and the contractual terms related to the timing of the payment from the CCBX partner (e.g.,
30 days after charge-off, etc.).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0in"><B><I>Response: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0in"><B>The Company respectfully
acknowledges the Staff&rsquo;s comment and will include the requested information in future filings. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Noninterest Income, page 66</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 12pt">2.</FONT></TD><TD STYLE="text-align: justify"><B><I>Staff&rsquo;s Comment:</I></B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 7.7pt; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">We note your response to prior comment 10.
Please revise future filings to disclose and discuss any internal performance measures related to the BaaS program that you develop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><B><I>Response</I></B><I>:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0in"><B>The Company respectfully
acknowledges the Staff&rsquo;s comment. As previously noted, no specific internal performance measures related to BaaS program income
are currently used by management. We will include in future filings a discussion about any such internal performance measures that we
develop going forward.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 46.1pt; text-align: justify; text-indent: 0in; color: #4F81BD">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Please do not hesitate to call
me at (425) 357-3687 if you have any questions or require any additional information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD STYLE="width: 55%; padding-top: 10.2pt">&nbsp;</TD>
    <TD STYLE="width: 45%; padding-top: 10.2pt"><FONT STYLE="font-size: 10pt; letter-spacing: -0.1pt">Sincerely,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0.25pt">&nbsp;</TD>
    <TD STYLE="padding-top: 0.25pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ Joel Edwards</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Joel Edwards </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Executive Vice President and Chief Financial Officer</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 298.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 298.75pt">&nbsp;</P>

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    <TD STYLE="width: 5%"><FONT STYLE="font-size: 10pt">Cc: </FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-size: 10pt">Michael Reed, Covington &amp; Burling LLP</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">(212) 841-1204</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">MReed@cov.com</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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