Form 4: Coastal Financial CEO Exercises Options, Adjusts Holdings

Coastal Financial Corp CEO Eric Sprink reported exercising stock options and adjusting common stock holdings, including shares withheld for taxes, on January 26, 2026.

Summary

• Eric M. Sprink, CEO and Director of Coastal Financial Corp (CCB), reported multiple transactions on January 26, 2026.
• Exercised stock options for 1,882 shares at $6.25, 2,854 shares at $7.10, 3,382 shares at $6.50, and 2,673 shares at $14.91.
• 4,764 shares were withheld for taxes and exercise costs related to Non-Qualified Stock Options (NQSO) at a price of $109.70.
• 4,312 shares were withheld for taxes upon partial vesting of Restricted Stock Units (RSUs) at a price of $111.34.
• Following these transactions, Sprink directly beneficially owns 160,841 shares of common stock.
• Indirect beneficial ownership includes 885 shares by spouse and 400 shares each by custodians for three children.
• Remaining derivative holdings include 5,710 stock options exercisable at $7.10, 3,383 at $6.50, and 8,022 at $14.91.
• Direct beneficial ownership also includes 27,752 time-based RSUs with various vesting schedules and 100,000 performance-based RSUs vesting on October 4, 2027, contingent on performance goals.

Sentiment

Score: 6

Explanation: The filing reports routine insider transactions where the CEO exercised stock options and subsequently had shares withheld for tax obligations. This is a common practice and does not indicate a strong positive or negative sentiment regarding the company's future, though the realization of value from options is generally seen as a positive for the executive.

Positives

• CEO Eric Sprink exercised a significant number of stock options, indicating a realization of value from previously granted equity incentives.
• The exercise prices ($6.25, $7.10, $6.50, $14.91) are substantially lower than the prices at which shares were withheld for taxes ($109.70, $111.34), suggesting a considerable gain on the exercised options.

Negatives

• A total of 9,076 shares were disposed of through 'sell to cover' transactions to pay for withholding taxes and exercise costs, which reduces the CEO's direct equity stake.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: The CEO's direct beneficial ownership decreased slightly due to tax-related share dispositions, but overall equity exposure remains substantial, including unvested RSUs and options, aligning executive incentives with shareholder interests. This is a routine event and unlikely to have a significant impact on the broader shareholder base.

Next Steps

• Remaining time-based RSUs will vest in various approximately equal installments.
• 100,000 performance-based RSUs are scheduled to vest on October 4, 2027, contingent upon the achievement of specified performance goals.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions by the CEO, Eric M. Sprink, involving the exercise of stock options and subsequent 'sell to cover' for tax purposes. Such transactions are common and typically do not provide new fundamental information about the company's operational performance or strategic direction. While the CEO is realizing value from past equity grants, the disposition of shares to cover taxes is a standard practice and does not necessarily signal a change in confidence. Therefore, based solely on this filing, a 'hold' recommendation is appropriate as it does not present new information warranting a change in investment thesis.

Keywords

Coastal Financial Corp, CCB, Eric Sprink, Insider Trading, Form 4, Stock Options, Restricted Stock Units, CEO, Beneficial Ownership