Form 4: CFO Sells Coastal Financial Shares Under 10b5-1 Plan

Coastal Financial Corp's CFO, Joel G. Edwards, sold 9,425 shares of common stock for $114.67 per share under a pre-arranged 10b5-1 trading plan.

Summary

• Joel G. Edwards, Chief Financial Officer of Coastal Financial Corp, reported the sale of 9,425 shares of common stock.
• The transaction occurred on September 18, 2025, at a price of $114.67 per share.
• This sale was executed pursuant to a Rule 10b5-1 trading plan adopted by Mr. Edwards on June 12, 2025.
• Following this transaction, Mr. Edwards directly beneficially owns 12,762 shares of common stock.
• His holdings also include 8,721 time-based restricted stock units (RSUs) under the Coastal Financial Corporation 2018 Omnibus Incentive Plan.
• These RSUs are scheduled to vest in three tranches: 3,065 units on January 25, 2026; 1,424 units on February 5, 2026; and 4,232 units on April 1, 2026. Each RSU represents the right to receive one share of common stock upon vesting.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While insider selling can sometimes be viewed negatively, the execution under a Rule 10b5-1 plan mitigates concerns about opportunistic trading. Furthermore, the CFO retains a substantial number of shares and RSUs, indicating continued vested interest in the company's performance.

Positives

• The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a scheduled transaction rather than a reaction to recent company performance.
• Mr. Edwards retains a significant beneficial ownership of 12,762 common shares and 8,721 restricted stock units, demonstrating continued alignment with shareholder interests.

Negatives

• Insider selling, even if pre-planned, can sometimes be perceived negatively by the market, potentially leading to short-term price pressure.

Future Outlook

NA

Management Comments

• The sales reported were effected pursuant to a Rule 10b5-1 trading plan (dated June 12, 2025) adopted by the reporting person.
• The 8,721 time-based restricted stock units (RSUs) are pursuant to the Coastal Financial Corporation 2018 Omnibus Incentive Plan and vest in accordance with Mr. Edward's retirement and retention agreement.

Industry Context

This Form 4 filing is specific to an insider transaction at Coastal Financial Corp and does not provide broader industry context or trends.

Corporate Governance

Stakeholder Impact

• Shareholders: May observe the insider sale, but the 10b5-1 plan context should alleviate concerns about management's confidence in the company's future. The remaining equity holdings indicate continued alignment.
• Employees: No direct impact mentioned, but executive compensation structures (like RSUs) are part of broader company compensation philosophy.

Next Steps

• Vesting of 3,065 restricted stock units on January 25, 2026.
• Vesting of 1,424 restricted stock units on February 5, 2026.
• Vesting of 4,232 restricted stock units on April 1, 2026.

Key Dates

Recommendation

The Form 4 indicates a pre-planned insider sale by the CFO, which is a routine event under a 10b5-1 plan and does not necessarily signal a change in management's outlook. The CFO retains significant equity holdings, including substantial RSUs with future vesting dates, demonstrating continued alignment with shareholder interests. Without additional financial or operational news, this filing alone does not warrant a change from a 'hold' position, as the transaction is largely expected and structured.

Keywords

Coastal Financial Corp, CCB, Joel G. Edwards, CFO, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Restricted Stock Units, RSUs