COASTAL BANKSHARES, INC.
THE COASTAL BANK
COASTAL MORTGAGE COMPANY OF SC

CUSTOMER PRIVACY POLICY DISCLOSURE

Protecting the privacy of our customers has been and remains a top priority of the bank, all affiliated companies and our employees. We want you to understand what information we collect, how we use it and the measures of security we use to protect your privacy. In order to provide you with a broad range of financial products and services as effectively and conveniently as possible, we use technology to manage and maintain customer information. Whether you are an existing or former customer or are considering a relationship with us, we want you to know that we are committed to upholding the highest standards of privacy for your benefit and protection. Our customer privacy program is as follows:

Recognition of Customer Privacy Expectations: Our corporate family respects that our customers expect and deserve privacy. Information that has been entrusted to us will be held in the strictest confidence. We maintain high standards to ensure that the information is used only for appropriate business reasons in accordance with applicable laws and regulations.

Collection, Use and Retention of Customer Information: We collect, use and retain customer information from a variety of sources for the purpose of administering our business or to provide products, services or other opportunities for our customers as follows:

• Customer information obtained directly from the customer on applications or other forms such as name, address, telephone number, social security number, etc;
• Transaction and experience information collected when recording customer activity and related transactions such as account balances, ATM and check card usage, payment history, etc., or;
• Information requested with your permission from outside sources such as employment verifications, credit reports, etc. This information is used to evaluate and manage our risks; to protect and administer your accounts, records and funds; to comply with applicable laws and regulations; to develop and enhance our portfolio of products and services and other valid business purposes.

Information Accuracy: The Coastal Bank and its affiliates continually strive to maintain complete and accurate information about you and your accounts. If you ever believe that our information is inaccurate or incomplete, please notify us immediately. We will review your concerns and correct any inaccuracies. Under the Fair Credit Reporting Act, you have the right to notify us if you believe we have reported inaccurate information about your account to any Consumer Reporting Agency. Please submit your request for correction in writing and include your full name, current address, social security number, account number, telephone number, and the information you believe is inaccurate. Please inform us of the reason you believe the information is incorrect and we will research and correct information appropriately. Send your notice to:

The Coastal Bank
P.O. Box 9585
Savannah , Georgia 31412

Employee Access to Customer Information: Our corporate family maintains security levels and related procedures to assist in the prevention of unauthorized access to confidential information within our organization. Secured access is delegated upon a “need to know” basis commensurate with each employee's responsibilities. Our employees are instructed in the importance of confidentiality and are provided with written code of conduct guidelines. Appropriate disciplinary action will be taken to enforce our privacy standards.

Maintaining Customer Privacy with Third Party Business Partners: It is necessary upon occasion to provide personally identifiable information about our customers to a party outside of our organization. The Coastal Bank and its affiliates are highly selective in choosing vendors and service companies that assist us in servicing our customers. These relationships are maintained solely to perform services to support our products and services. These business partners agree to safeguard our confidential customer information and they must abide by applicable law. If a marketing service is requested that will use personally identifiable information, it is our policy to provide you the option to request exclusion from any such data sets.

Internet and Electronic Privacy: With the rapid expansion of technological capability in our industry and in our institution, The Coastal Bank and our affiliates are committed to maintaining and expanding effective systems to facilitate the convenient delivery of services, regardless of the method of delivery. We value our customers and recognize the importance of your trust and confidence in us. Information gathered via the Internet or other electronic means will be used only for appropriate purposes such as evaluation of our web pages' effectiveness, designing new products or services for the benefit of our customers or estimating system capacity needed to conveniently service our customers.

Restricted Disclosure of Information: Responsible use of information benefits our customers by protecting your privacy and by enabling us to offer you improved products and services based on your needs. It is our policy to prohibit the sale of customer information to parties outside of our corporate family. The Coastal Bank and our affiliates do not reveal specific information about your accounts or other personally identifiable data to external parties unless:

• You request disclosure of the information;
• The information is necessary to complete a transaction or perform a service at your request;
• The information is provided to a reputable credit bureau or similar information reporting agency; or
• The disclosure is otherwise lawfully permitted or required.

We occasionally receive medical or health information about a new customer, for example if a customer applies for insurance from us. If we do receive medical or health information about you, we will not share it with our affiliates, except as necessary to maintain accounts, process transactions, or provide services you have requested.

We are permitted to share information about your transaction and account experience with our affiliates (i.e. Coastal Mortgage Company) through a central information system. We are also permitted by law to share other customer information with our affiliates. This assists us in improving the type and selection of services available to you. If you do not want us to share non-public personal information (except transaction and experience information) among our family of affiliates and/or to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements, please call our toll-free phone number at 1-877-490-3392 and ask for our Deposit Operations Manager to mail you the Consumer Information Marketing Opt-Out Request. Please be aware that you can request this exclusion only on your own behalf, and not for anyone else. We will process your request as soon as possible after receipt of the completed, written Customer Information Marketing Opt-Out Request.