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

Coastal Financial Corp's CEO, Eric M. Sprink, sold 7,356 shares of common stock for over $840,000 through a pre-arranged Rule 10b5-1 trading plan.

Summary

• Eric M. Sprink, CEO and Director of Coastal Financial Corp (CCB), sold a total of 7,356 shares of common stock.
• The sales occurred on January 15, 2026, and January 16, 2026, at weighted average prices of $114.5077 and $114.1514, respectively, totaling approximately $841,354.20.
• All sales were executed pursuant to a pre-arranged Rule 10b5-1 trading plan.
• Following these transactions, Eric M. Sprink directly beneficially owns 171,528 shares of common stock, which includes 38,508 time-based restricted stock units (RSUs).
• The time-based RSUs vest in various installments: 9,318 in five installments, 4,219 in four installments, 10,032 in three installments, 8,366 in two installments, and 6,573 in one installment.
• Additionally, Eric M. Sprink beneficially owns 100,000 performance-based restricted stock units that vest on October 4, 2027, contingent upon achieving specified performance goals.
• Indirect beneficial ownership includes 885 shares by spouse and 400 shares each by custodians for three children, totaling 2,085 indirect shares.

Sentiment

Score: 5

Explanation: The sales were conducted under a pre-arranged Rule 10b5-1 plan, which typically indicates a scheduled personal financial management event rather than a reaction to new company-specific information. This makes the transaction neutral in terms of immediate sentiment.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a scheduled personal financial management event rather than a reaction to new, negative company-specific information.

Negatives

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

Future Outlook

The filing does not provide specific forward-looking statements or guidance regarding the company's future performance, focusing solely on insider transaction details and beneficial ownership.

Management Comments

• Management executed sales under a pre-arranged Rule 10b5-1 trading plan, indicating a scheduled personal financial management event.

Industry Context

Insider transaction reports (Form 4s) are routine disclosures for publicly traded companies. The use of a Rule 10b5-1 plan is a common practice among executives to manage personal finances and diversify holdings while adhering to insider trading regulations, by scheduling trades in advance.

Stakeholder Impact

• Shareholders may note the insider selling, but the pre-arranged nature of the sales under a Rule 10b5-1 plan generally mitigates concerns about management's confidence in the company's future.

Next Steps

• Remaining installments of time-based restricted stock units will vest according to their respective schedules.
• Performance-based restricted stock units are scheduled to vest on October 4, 2027, subject to achievement of specified performance goals.

Key Dates

Recommendation

The Form 4 reports pre-scheduled insider sales under a Rule 10b5-1 plan, which does not typically signal a change in the company's fundamental outlook or warrant a shift in investment recommendation. The transaction is a routine personal financial management event for the executive.

Keywords

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