Form 4: Coastal Financial CEO Sells Shares Via Pre-Planned Trade

Coastal Financial Corp's CEO, Eric M. Sprink, sold 10,683 shares of common stock for $114.65 per share under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Eric M. Sprink, CEO and Director of Coastal Financial Corp (CCB), sold 10,683 shares of common stock.
• The transaction occurred on September 18, 2025, at a price of $114.65 per share.
• The sale was executed pursuant to a Rule 10b5-1 trading plan adopted on June 5, 2025.
• Following the transaction, Mr. Sprink directly beneficially owns 211,011 shares of common stock.
• His direct holdings include 38,508 time-based restricted stock units (RSUs) with various vesting schedules and 100,000 performance-based RSUs vesting on October 4, 2027.
• Mr. Sprink also indirectly beneficially owns 2,085 shares, comprising 1,200 shares held by custodians for his children and 885 shares held by his spouse.

Sentiment

Score: 5

Explanation: The transaction is a pre-planned sale under a Rule 10b5-1 plan, which is a routine event for executives managing personal finances and does not inherently signal positive or negative sentiment about the company's future performance. The CEO retains significant direct and indirect ownership, including substantial RSU holdings.

Positives

• The sale was conducted under a Rule 10b5-1 trading plan, indicating a pre-scheduled transaction rather than a reaction to immediate market conditions, which generally mitigates concerns about opportunistic insider selling.
• Mr. Sprink retains a significant beneficial ownership of 211,011 direct shares, including substantial RSU holdings, aligning his interests with long-term shareholder value.

Negatives

• An insider sale, even if pre-planned, can sometimes be perceived negatively by the market, though the 10b5-1 plan mitigates this perception.

Future Outlook

The filing indicates future vesting events for Eric M. Sprink's restricted stock units. Specifically, 38,508 time-based RSUs are scheduled to vest in multiple remaining installments, and 100,000 performance-based RSUs are set to vest on October 4, 2027, contingent on achieving specified performance goals.

Industry Context

Insider transactions, particularly sales, are common occurrences in publicly traded companies. Sales executed under Rule 10b5-1 plans are generally viewed as routine personal financial management rather than signals of management's view on the company's immediate prospects, distinguishing them from opportunistic sales. This type of filing provides transparency into executive compensation and ownership structures, which is standard practice across industries.

Comparison to Industry Standards

• This Form 4 filing is a standard disclosure for insider transactions.
• The use of a Rule 10b5-1 trading plan by a CEO for stock sales is a common practice among executives in the financial services industry and other sectors to manage personal liquidity while avoiding accusations of trading on material non-public information.
• Many executives at comparable regional banks or financial institutions utilize such plans for diversification or tax planning purposes.
• Without specific details on other executives' trading patterns or compensation structures within the regional banking sector, a direct comparative assessment of the volume or timing of this specific sale against industry benchmarks is not feasible from this filing alone. However, the mechanism of the sale (10b5-1 plan) aligns with best practices for executive stock dispositions.

Related Party Transactions

• Indirect beneficial ownership of 400 shares by a custodian for Child 1.
• Indirect beneficial ownership of 400 shares by a custodian for Child 2.
• Indirect beneficial ownership of 400 shares by a custodian for Child 3.
• Indirect beneficial ownership of 885 shares by spouse.

Stakeholder Impact

• Shareholders: Provides transparency regarding executive stock ownership and trading activity. The pre-planned nature of the sale under a 10b5-1 plan generally mitigates concerns about opportunistic insider selling.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• Vesting of 9,318 time-based RSUs in five approximately equal remaining installments.
• Vesting of 4,219 time-based RSUs in four approximately equal remaining installments.
• Vesting of 10,032 time-based RSUs in three approximately equal remaining installments.
• Vesting of 8,366 time-based RSUs in approximately two remaining equal installments.
• Vesting of 6,573 time-based RSUs in approximately one remaining equal installment.
• Vesting of 100,000 performance-based restricted stock units on October 4, 2027, contingent on achievement of specified performance goals.

Key Dates

Keywords

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