Form 4: Coastal Financial Director Michael Patterson Receives Restricted Stock Grant

Coastal Financial Corp. Director Michael Robert Patterson was granted 1,147 shares of common stock as restricted stock, vesting prior to the 2026 Annual Shareholder Meeting.

Summary

• Michael Robert Patterson, a Director of Coastal Financial Corp. (CCB), acquired 1,147 shares of common stock.
• The transaction occurred on May 28, 2025.
• These shares were acquired at a price of $0, indicating a grant rather than a purchase.
• The shares are restricted stock granted under the Coastal Financial Corporation 2018 Omnibus Incentive Plan.
• The 1,147 shares will vest one day prior to the issuer's 2026 Annual Shareholder Meeting.
• Following this transaction, Mr. Patterson beneficially owns a total of 6,890 shares of common stock.

Sentiment

Score: 7

Explanation: The document reports a standard insider stock grant, which is generally a positive sign of aligning director interests with the company's long-term performance, without any negative implications.

Positives

• The grant of restricted stock to a director aligns management and director interests with long-term shareholder value.
• The shares were granted under an existing incentive plan (2018 Omnibus Incentive Plan), indicating a structured and approved compensation approach.

Future Outlook

The vesting of the restricted stock one day prior to the 2026 Annual Shareholder Meeting indicates a future milestone for the compensation, aligning the director's long-term interest with the company's performance.

Management Comments

• This document is a regulatory filing and does not contain direct quotes or paraphrased statements from management, but rather reports a transaction.

Industry Context

Insider stock grants are a common practice in the financial services industry, particularly for directors, as a means of aligning their interests with shareholders and providing long-term incentives. This transaction is consistent with typical corporate governance and compensation practices for publicly traded banks or financial institutions.

Comparison to Industry Standards

• The grant of restricted stock at a $0 price is a standard method of equity compensation for directors in the financial services sector, similar to practices seen at regional banks like Columbia Banking System (COLB) or Umpqua Holdings Corporation (UMPQ), where equity incentives are used to retain and motivate key personnel and align their interests with long-term company performance.
• The specific number of shares granted would typically be benchmarked against peer group compensation data, though such comparative data is not provided in this filing.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of restricted stock to a director aims to align their interests with shareholders, potentially leading to better long-term performance.
• Employees: While not directly impacting all employees, such incentive plans can signal a commitment to performance-based compensation within the company.

Next Steps

• The 1,147 restricted shares granted to Michael Robert Patterson are scheduled to vest one day prior to Coastal Financial Corporation's 2026 Annual Shareholder Meeting.

Key Dates

Keywords

Coastal Financial Corp, CCB, Form 4, Insider Transaction, Restricted Stock, Stock Grant, Director Compensation, Equity Incentive Plan, Michael Robert Patterson