CUSTOMER PRIVACY POLICY DISCLOSURE

NOTICE OF YOUR FINANCIAL PRIVACY RIGHTS

Coastal Carolina National Bank and its holding company, Coastal Carolina Bancshares, Inc., recognize and respect your personal privacy. Confidentiality is a key part of providing quality financial services. Our organization continues its commitment to upholding high standards of privacy for your protection and benefit. Whether you are an existing customer, former customer, or are considering a relationship with us, we want you to know how we collect, use and retain information about you and your relationship with us. Our customer privacy program is summarized below.

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 strive to maintain high standards to ensure that the information is used only for appropriate business reasons in accordance with board-approved policies and procedures.

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. Customer information is obtained directly from the customer, is collected when recording customer activity and related transactions, or is 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: Coastal Carolina National Bank continually strives 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:

       Coastal Carolina National Bank

       Attention: Chief Financial Officer

       2305 Oak Street

       Myrtle Beach, SC 29577

Employee Access to Customer Information: Our institution 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 current and former customers to a party outside of our organization. Coastal Carolina National Bank is highly selective in choosing vendors and service companies that assist us in servicing our customers. These relationships are maintained solely to perform services on our behalf including, but not limited to, customer statement rendering, items processing, electronic data processing services, or other services required to support our products and services. These business partners agree to safeguard our confidential customer information and they must abide by applicable law.

Internet and Electronic Privacy: With the rapid expansion of technological capability in our industry and in our institution, our Bank is 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, when established, 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. Coastal Carolina National Bank does 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