Coastal Financial : Q4 2020 Investor Presentation

INVESTOR PRESENTATION

January 27, 2021

Legal Information and Disclaimer

This presentation and oral statements made regarding the subject of this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of

1995. These forward-looking statements reflect Coastal Financial Corporation ("Coastal")'s current views with respect to, among other things, future events and Coastal's financial performance. Any statements about Coastal's expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Any or all of the forward-looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this presentation should not be regarded as a representation by Coastal or any other person that the future plans, estimates or expectations contemplated by Coastal will be achieved. Coastal has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Coastal believes may affect its financial condition, results of operations, business strategy and financial needs. Coastal's actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risks and uncertainties discussed under "Risk Factors" in Form 10-K for the year ended December 31, 2019, Coastal's Quarterly Report on Form 10-Q for the most recent quarter, and in any of Coastal's subsequent filings with the Securities and Exchange Commission.

If one or more events related to these or other risks or uncertainties materialize, or if Coastal's underlying assumptions prove to be incorrect, actual results may differ materially from what Coastal anticipates. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and Coastal undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

This presentation includes industry and trade association data, forecasts and information that Coastal has prepared based, in part, upon data, forecasts and information obtained from independent trade associations, industry publications and surveys, government agencies and other information publicly available to Coastal, which information may be specific to particular markets or geographic locations. Some data is also based on Coastal's good faith estimates, which are derived from management's knowledge of the industry and independent sources. Industry publications, surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. Statements as to Coastal's market position are based on market data currently available to Coastal. Although Coastal believes these sources are reliable, Coastal has not independently verified the information contained therein. While Coastal is not aware of any misstatements regarding the industry data presented in this presentation, Coastal's estimates involve risks and uncertainties and are subject to change based on various factors. Similarly, Coastal believes that its internal research is reliable, even though such research has not been verified by independent sources.

Trademarks referred to in this presentation are the property of their respective owners, although for presentational convenience we may not use the ® or the TM symbols to identify such trademarks.

Non-GAAP Financial Measures

This presentation includes certain non-GAAP financial measures for 2017 to exclude the impact of a deferred tax asset revaluation due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "Tax Cuts and Jobs Act"), including adjusted net income, adjusted earnings per share, adjusted return on average assets and adjusted return on average shareholders' equity. These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Coastal's non-GAAP financial measures as tools for comparison. See the Appendix to this presentation for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures.

This presentation also contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP relating to "pre-tax,pre-provision net income" and "pre-tax, pre- provision return on average assets" to illustrate the impact of provision for loan losses and provision for income taxes on net income and return on average assets. The most directly comparable GAAP measure to "pre-tax,pre-provision net income" is net income. The most directly comparable GAAP measure to "pre-tax,pre-provision return on average assets" is return on average assets. Reconciliations of the GAAP and non-GAAP measures are presented in the Appendix of this presentation.

This presentation also contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP to illustrate and identify the impact of Paycheck Protection Program ("PPP") loans, Paycheck Protection Program Liquidity Facility ("PPPLF") borrowings, customer deposits from PPP loans, and related earnings and expenses. By removing these significant items and show what the results would have been without them we are providing investors with the information to better compare results with periods that did not have these significant items. Adjusted allowance for loan losses to loans receivable is a non-GAAP measure that excludes the impact of PPP loans on balance sheet. The most directly comparable GAAP measure is allowance for loan losses. Adjusted yield on loans receivable is a non-GAAP measure that excludes the impact of PPP loans on balance sheet. The most directly comparable GAAP measure is yield on loans. Adjusted contractual yield on loans receivable, excluding earned fees is a non-GAAP measure that excludes the impact of PPP loans on balance sheet. The most directly comparable GAAP measure is contractual yield on loans, excluding fees and interest on PPP loans. Adjusted Tier 1 leverage capital, excluding PPP loans is a non-GAAP measure that excludes the impact of PPP loans on balance sheet. The most directly comparable GAAP measure is Tier 1 leverage capital. Reconciliations of the GAAP and non-GAAP measures are presented in the Appendix of this presentation.

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Three Prong Long-Term Strategy

Driving Value for Shareholders - 3 Prong Strategy

The
Community	Provide
Bank
Banking as a
(CCB)
Service
	(BaaS)
	(CCBX)

Compliance

Operational Integrity

Coastal's

Digital

Bank

(CCDB)

No matter how we talk to our customers or what type of customer, Compliance and Operational Integrity are the same.

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Corporate Overview

Coastal Community Bank was established in 1997 with a focus on serving small to medium-sized businesses within the Puget Sound region

Headquarters

• Everett, Washington - the largest city in and county seat of Snohomish County

Branches

• 15 full-service banking locations
• • 12 in Snohomish County
  • Opened Arlington branch in June 2020
  • 2 in Island County
  • 1 in King County

Size and Scale

Dedicated to community banking

• $1.8 billion in total assets
• $1.5 billion in total loans
• $1.4 billion in total deposits
• Largest community bank by deposit market share in Snohomish County

2014-2020 Recipient of the prestigious "5-Star Rating" from BauerFinancial, Inc.

Stanwood & Camano News "Best Bank" (7 years in a row)

2013 * 2014 * 2015 * 2016 * 2017 * 2018 * 2019 * 2020

Everett Herald - 2014, 2015, 2016

2017, 2018, and 2019 Readers

Choice - "Best Bank"

"2020 & 2019 American Banker Top 200 Community Bank"

Focus

• Meet the financial needs of the community
• Make decisions locally
• Support the communities the Bank serves

in some of Washington's most attractive markets

Note: Data as of December 31, 2020 unless otherwise indicated	4