Form 4: Coastal Financial Executive Sells Shares for Tax Obligations

Coastal Financial Corp. President Brian T. Hamilton sold 1,792 shares of common stock to cover tax withholding related to PSU vesting.

Summary

• Brian T. Hamilton, President of CCBX and a Director at Coastal Financial Corp. (CCB), reported a transaction on March 30, 2026.
• Hamilton disposed of 1,792 shares of Coastal Financial Corp. common stock at a price of $73.7252 per share.
• The sale was executed pursuant to a Rule 10b5-1 plan and was for the purpose of paying withholding taxes upon the partial vesting of Performance Share Units (PSUs).
• Following this transaction, Hamilton beneficially owns 78,108 shares of common stock.
• The remaining beneficial ownership includes 14,536 restricted stock units (RSUs) vesting monthly through April 30, 2028, 2,714 RSUs vesting in approximately equal installments over 4 years, 15,000 performance-based RSUs eligible to vest on April 30, 2028, subject to continuous employment and achievement of return on equity targets, and 502 RSUs vesting in three approximately equal annual remaining installments.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral event. It is a routine, non-discretionary transaction by an insider to cover tax liabilities associated with vested equity awards, rather than a discretionary sale indicating a change in sentiment towards the company.

Positives

• The transaction indicates the partial vesting of Performance Share Units (PSUs), suggesting that performance or time-based conditions for these awards were met.

Negatives

• NA

Future Outlook

The filing details future vesting schedules for various equity awards held by the reporting person, including RSUs vesting monthly through April 2028, RSUs vesting over four years, and performance-based RSUs eligible to vest on April 30, 2028, contingent on continuous employment and achieving specific return on equity targets.

Industry Context

StockSavvy.ai notes that sales of shares by executives to cover tax obligations upon the vesting of equity awards are a common and routine occurrence across all industries, particularly in financial services where executive compensation often includes significant equity components. These transactions are typically non-discretionary and pre-scheduled under Rule 10b5-1 plans.

Comparison to Industry Standards

• This type of transaction, a sale to cover tax withholding upon equity award vesting, is standard practice for executives across publicly traded companies, including peers in the regional banking sector such as Columbia Banking System (COLB) or Umpqua Holdings Corporation (UMPQ).
• The use of a Rule 10b5-1 plan aligns with best practices for insider trading compliance, providing an affirmative defense against claims of trading on material non-public information, a common standard among well-governed corporations.

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine, tax-related transaction and not a discretionary sale that would signal a change in insider confidence.
• Employees: The vesting of PSUs and RSUs is part of the company's executive compensation structure, which can positively impact executive retention and motivation.

Next Steps

• Continued vesting of 14,536 restricted stock units (RSUs) monthly through April 30, 2028.
• Continued vesting of 2,714 RSUs in approximately equal installments over 4 years.
• Potential vesting of 15,000 performance-based RSUs on April 30, 2028, subject to employment and return on equity targets.
• Continued vesting of 502 RSUs in three approximately equal annual remaining installments.

Key Dates

Keywords

Coastal Financial Corp, CCB, Form 4, Insider Trading, Stock Sale, Executive Compensation, Rule 10b5-1, PSU Vesting, Restricted Stock Units