Form 4: Coastal Financial Director Sells Shares

Coastal Financial Corp. Director and 10% owner Steven D. Hovde sold 1,500 shares of common stock.

Summary

• Steven D. Hovde, a Director and 10% owner of Coastal Financial Corp. (CCB), reported a transaction involving the sale of common stock.
• On December 9, 2025, Hovde sold 1,500 shares of CCB common stock at a price of $115.5 per share.
• Following this transaction, Hovde directly beneficially owns 14,500 shares of common stock.
• Hovde also indirectly beneficially owns 1,715,960 shares of common stock through a business entity.
• The indirect holdings include 1,090 shares of restricted stock granted under the 2018 Omnibus Incentive Plan, which are scheduled to vest one day prior to the issuer's 2026 Annual Shareholder Meeting.

Sentiment

Score: 5

Explanation: A director and 10% owner sold a small portion of their direct holdings, which could be seen as slightly negative. However, the individual retains a very substantial indirect stake, including future vesting restricted stock, balancing the sentiment to neutral.

Positives

• The reporting person retains a substantial indirect beneficial ownership of 1,715,960 shares, indicating a continued significant stake in the company.
• 1,090 shares of restricted stock are set to vest one day prior to the 2026 Annual Shareholder Meeting, aligning insider interests with future company performance.

Negatives

• A Director and 10% owner sold 1,500 shares of common stock, which could be interpreted as a slightly negative signal by some investors, although the amount is small relative to total holdings.

Future Outlook

The filing indicates future vesting of 1,090 restricted shares one day prior to the 2026 Annual Shareholder Meeting, aligning a portion of the insider's compensation with future company performance.

Industry Context

This Form 4 reports a routine insider transaction and does not provide broader industry trends or competitive analysis. Insider sales are often monitored for signals about management's confidence, but this specific transaction is small relative to the insider's total holdings.

Stakeholder Impact

• Shareholders: The sale by a director and 10% owner might be viewed with slight caution, though the amount is small relative to total holdings. The continued large indirect holding suggests ongoing alignment of interests.

Next Steps

• Vesting of 1,090 restricted shares one day prior to the 2026 Annual Shareholder Meeting.

Key Dates

Recommendation

The sale of 1,500 shares by a director and 10% owner is a minor transaction relative to their overall holdings of over 1.7 million shares. While insider sales can sometimes signal a lack of confidence, the small volume and continued substantial ownership, including future vesting restricted stock, suggest no material change in the investment thesis. Therefore, a 'hold' recommendation is appropriate as this transaction alone does not warrant a change in investment strategy.

Keywords

Coastal Financial Corp, CCB, Insider Trading, Form 4, Stock Sale, Director, 10% Owner, Steven D. Hovde, Beneficial Ownership