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

Coastal Financial Corp CEO Eric M. Sprink sold 17,127 shares of common stock in early January 2026 under a pre-arranged 10b5-1 trading plan.

Summary

• Eric M. Sprink, CEO and Director of Coastal Financial Corp (CCB), reported sales of common stock.
• On January 2, 2026, Mr. Sprink sold 8,349 shares of common stock at a price of $113.7266 per share.
• On January 5, 2026, an additional 8,778 shares of common stock were sold at a price of $114.9454 per share.
• These sales, totaling 17,127 shares, were executed pursuant to a Rule 10b5-1 trading plan.
• Following these transactions, Mr. Sprink directly beneficially owns 193,884 shares of common stock.
• His beneficial ownership also includes 38,508 time-based restricted stock units (RSUs) with various vesting schedules.
• Additionally, he holds 100,000 performance-based restricted stock units that vest on October 4, 2027, contingent on performance goals.
• Indirect beneficial ownership includes 400 shares for each of three children (total 1,200 shares) and 885 shares by his spouse.

Sentiment

Score: 5

Explanation: The filing reports routine insider stock sales executed under a pre-arranged 10b5-1 plan, which is a neutral event. Significant RSU holdings remain, indicating continued alignment with company performance.

Positives

• The sales were conducted under a Rule 10b5-1 trading plan, indicating pre-planning and transparency, which is a positive for corporate governance.
• Mr. Sprink retains substantial direct and indirect beneficial ownership, including significant unvested restricted stock units, aligning his interests with long-term shareholder value.

Negatives

• Insider selling, even when planned, can sometimes be perceived negatively by the market, potentially signaling a lack of confidence, although this is mitigated by the 10b5-1 plan.

Risks

• No specific risks were mentioned in the filing beyond the inherent market risks associated with stock ownership.

Future Outlook

The filing indicates future vesting events for Eric M. Sprink's restricted stock units, with time-based RSUs vesting in various installments and performance-based RSUs vesting on October 4, 2027, subject to performance goals.

Management Comments

• The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person.

Industry Context

Form 4 filings are standard disclosures for insider transactions. The use of a Rule 10b5-1 trading plan is a common practice among corporate executives to sell company stock in a pre-arranged, compliant manner, mitigating concerns about insider trading based on material non-public information.

Comparison to Industry Standards

• The execution of stock sales through a Rule 10b5-1 plan is a widely accepted and standard practice for corporate insiders in the U.S. financial industry, demonstrating adherence to SEC regulations and promoting transparency.
• Many executives across various sectors, including banking and financial services, utilize 10b5-1 plans for personal financial planning, diversification, and liquidity needs, similar to this reported transaction.

Related Party Transactions

• Indirect beneficial ownership includes 400 shares held by a custodian for Child 1, 400 shares for Child 2, 400 shares for Child 3, and 885 shares held by spouse.

Stakeholder Impact

• Shareholders may note the insider selling, but the pre-arranged 10b5-1 plan typically mitigates concerns about opportunistic selling.
• The continued significant equity holdings, including RSUs, suggest ongoing alignment of management's interests with shareholder value.

Next Steps

• Continued vesting of 38,508 time-based restricted stock units in various remaining installments.
• Potential vesting of 100,000 performance-based restricted stock units on October 4, 2027, subject to performance goal achievement.

Key Dates

Recommendation

The reported transactions are routine insider sales executed under a pre-arranged 10b5-1 plan, which typically does not signal a change in the company's fundamental outlook. The CEO retains substantial equity holdings, including significant unvested RSUs, indicating continued alignment with shareholder interests. This filing alone does not provide sufficient new information to alter an investment thesis, thus a 'hold' recommendation is appropriate.

Keywords

Coastal Financial Corp, CCB, Eric M. Sprink, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Restricted Stock Units, CEO, Director