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

Coastal Financial Corp CEO Eric M. Sprink sold 11,000 shares of common stock in early January 2026 under a pre-arranged trading plan.

Summary

• Eric M. Sprink, CEO and Director of Coastal Financial Corp (CCB), reported sales of common stock.
• On January 6, 2026, Sprink sold 8,000 shares of common stock at a price of $116.3492 per share.
• On January 7, 2026, Sprink sold an additional 3,000 shares of common stock at a price of $117.6 per share.
• These sales were executed pursuant to a Rule 10b5-1 trading plan adopted by the reporting person.
• Following these transactions, Sprink directly beneficially owns 182,884 shares of common stock.
• Indirect beneficial ownership includes 400 shares for Child 1, 400 shares for Child 2, 400 shares for Child 3, and 885 shares by spouse.
• Beneficial ownership also includes 38,508 time-based restricted stock units (RSUs) with various vesting schedules.
• Additionally, 100,000 performance-based restricted stock units are held, which vest on October 4, 2027, contingent on achieving specified performance goals.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to insider selling, even though it was pre-planned under a 10b5-1 plan. While the plan mitigates concerns of opportunistic selling, the act of selling itself can sometimes be interpreted negatively by the market. However, the significant remaining holdings, including RSUs, provide some balance.

Positives

• The sales were conducted under a Rule 10b5-1 trading plan, indicating pre-planned transactions and reducing concerns about opportunistic selling.
• Eric M. Sprink retains significant beneficial ownership, including substantial restricted stock units, aligning his interests with long-term shareholder value.

Negatives

• Insider selling, even when pre-planned, can sometimes be perceived by the market as a signal of diversification or a lack of confidence, potentially leading to negative sentiment.

Risks

• The value of the performance-based restricted stock units is dependent upon the achievement of specified performance goals, introducing a risk that these units may not fully vest if targets are not met.

Future Outlook

The filing indicates future vesting events for restricted stock units, with time-based RSUs vesting in various remaining installments and performance-based RSUs vesting on October 4, 2027, contingent on specific performance goals.

Management Comments

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

Industry Context

This Form 4 filing details an individual insider's stock transactions and does not provide broader industry trends or competitive analysis. It is specific to the personal equity management of Coastal Financial Corp's CEO.

Corporate Governance

Related Party Transactions

• Indirect beneficial ownership of common stock by spouse (885 shares) and three children (400 shares each).

Stakeholder Impact

• Shareholders may interpret the insider selling, even under a 10b5-1 plan, as a signal, potentially influencing short-term stock price movements.
• Employees holding similar equity compensation may note the CEO's management of his own restricted stock units and overall holdings.

Next Steps

• Continued vesting of 38,508 time-based restricted stock units according to their respective schedules.
• Potential vesting of 100,000 performance-based restricted stock units on October 4, 2027, subject to achievement of specified performance goals.

Key Dates

Keywords

Coastal Financial Corp, CCB, Form 4, Insider Trading, Stock Sale, CEO, Director, 10b5-1 Plan, Restricted Stock Units, Equity Compensation