Form 4: Coastal Financial Director Christopher Adams Receives Restricted Stock Grant

Coastal Financial Corp. Director Christopher D. Adams was granted 1,434 shares of restricted common stock on May 28, 2025, as part of the company's 2018 Omnibus Incentive Plan.

Summary

• Christopher D. Adams, a Director of Coastal Financial Corp. (CCB), acquired 1,434 shares of common stock on May 28, 2025.
• The acquisition was a grant of restricted stock at a price of $0 per share, indicating an equity award rather than a purchase.
• These 1,434 restricted shares are scheduled to vest one day prior to Coastal Financial Corporation's 2026 Annual Shareholder Meeting.
• The grant was made pursuant to the Coastal Financial Corporation 2018 Omnibus Incentive Plan.
• Following this transaction, Christopher D. Adams beneficially owns a total of 28,363 shares of Coastal Financial Corp. common stock.

Sentiment

Score: 7

Explanation: The grant of restricted stock to a director is a standard practice for aligning management and shareholder interests, indicating ongoing commitment and compensation under an established incentive plan. This is generally viewed as a neutral to slightly positive event, as it reinforces long-term alignment.

Positives

• The grant of restricted stock to a director aligns management's interests with those of shareholders, encouraging long-term performance.
• The transaction is part of an established incentive plan (2018 Omnibus Incentive Plan), indicating a structured approach to executive compensation.

Future Outlook

The document indicates a future vesting event for the granted restricted shares, which will occur one day prior to the issuer's 2026 Annual Shareholder Meeting.

Management Comments

• The grant was made pursuant to the Coastal Financial Corporation 2018 Omnibus Incentive Plan, reflecting the company's ongoing compensation strategy for its directors.

Industry Context

The granting of restricted stock to directors is a common practice in the financial services industry and broader corporate landscape, serving as a key component of executive and director compensation packages designed to align their interests with long-term shareholder value creation.

Comparison to Industry Standards

• The use of restricted stock grants as a form of compensation for directors is a standard practice across publicly traded companies, including those in the banking and financial services sector, such as Umpqua Holdings Corporation or Columbia Banking System, which also utilize equity-based incentives to retain and motivate key personnel.
• The vesting schedule tied to a future annual meeting is typical for such awards, ensuring continued commitment over a defined period.

Corporate Governance

Related Party Transactions

• The grant of 1,434 restricted shares to Christopher D. Adams, a director of Coastal Financial Corp., constitutes a related party transaction as it involves compensation from the company to an insider.

Stakeholder Impact

• Shareholders: The grant aligns the director's financial interests with long-term shareholder value creation, as the value of the restricted stock is tied to the company's stock performance.
• Employees: While not directly impacting all employees, such compensation practices can set a precedent for equity-based incentives within the company.

Next Steps

• The 1,434 restricted shares granted to Christopher D. Adams are expected to vest one day prior to the issuer's 2026 Annual Shareholder Meeting.

Key Dates

Recommendation

Keywords

Coastal Financial Corp, CCB, Form 4, insider transaction, restricted stock, stock grant, director compensation, equity award, incentive plan