The 2018 Coastal Financial Corporation Omnibus Plan (the "2018 Plan") authorizes the Company to grant awards, including but not limited to, stock options, restricted stock units, and restricted stock awards, to eligible employees, directors or individuals that provide service to the Company, up to an aggregate of 500,000 shares of common stock. On May 24, 2021, the Company’s shareholders approved the First Amendment to the 2018 Plan, which increased the authorized plan shares by 600,000. On May 28, 2025, the Company's shareholders approved the Second Amendment to the 2018 Plan which increased the authorized plan shares by 600,000. The 2018 Plan replaced the 2006 Plan for new awards. Existing awards will vest under the terms granted and no further awards will be granted under these prior plans. Shares available to be granted under the 2018 plan were 686,741 at June 30, 2025.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatilities are based on historical volatility of the Company’s stock and other factors. The Company uses the vesting term and contractual life to determine the expected life. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation expense related to unvested stock option awards is reversed at date of forfeiture.


Options	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
	(dollars in thousands, except per share amounts; unaudited)
Outstanding at December 31, 2024	186,354	$	9.80	2.8	$	13,996
Granted	—	—
Exercised	(58,420)	9.02			$	5,133
Expired	—	—
Forfeited	(1,280)	10.59
Outstanding at June 30, 2025	126,654	$	10.16	2.6	$	10,982
Vested at June 30, 2025	57,258	$	10.03	2.5	$	4,972
Exercisable at June 30, 2025	57,258	$	10.03	2.5	$	4,972

The total intrinsic value (which is the amount by which the stock price at the date of exercise exceeds the exercise price) of options exercised during the three and six months ended June 30, 2025 was $2.7 million and $4.5 million, respectively. The total intrinsic value of options exercised during the three and six months ended June 30, 2024 was $720,000 and $2.1 million, respectively.

As of June 30, 2025, there was $366,000 of total unrecognized compensation cost related to nonvested stock options granted under the 2018 Plan and 2006 Plan. Total unrecognized compensation costs are adjusted for unvested forfeitures. The Company expects to recognize that cost over a remaining weighted-average period of approximately 2.6 years. Compensation expense recorded related to stock options was $93,000 and $147,000, respectively for the three and six months ended June 30, 2025 and $63,000 and $176,000, respectively for the three and six months ended June 30, 2024.

In the first two quarters of 2025, the Company granted 73,475 restricted stock units ("RSUs") under the 2018 Plan to employees, which vest ratably over various terms ranging from 4 years to 5 years. Additionally, the Company granted 41,185 performance-based restricted stock units ("PSUs") under the 2018 Plan that are eligible to vest over various terms ranging from 1.5 years to 5 years.

RSUs provide for an interest in Company common stock to the recipient, the underlying stock is not issued until certain conditions are met. Vesting requirements include time-based, performance-based, or market-based conditions. Recipients of RSUs do not pay any cash consideration to the Company for the units and the holders of the restricted units do not have voting rights. The fair value of time-based and performance-based units is equal to the fair market value of the Company’s common stock on the grant date. The fair value of market-based units is estimated on the grant date using the Monte Carlo simulation model. Compensation expense is recognized over the vesting period that the awards are based. RSUs are nonparticipating securities.

As of June 30, 2025, there was $19.0 million of total unrecognized compensation cost related to nonvested RSUs. The Company expects to recognize that cost over the remaining weighted-average vesting period of approximately 3.6 years. Compensation expense recorded related to RSUs was $1.7 million and $4.0 million, respectively for the three and six months ended June 30, 2025 and $895,000 and $1.8 million, respectively for the three and six months ended June 30, 2024.


Nonvested shares - RSUs	Number of Shares	Weighted- Average Grant Date Fair Value
	(dollars in thousands, except per share amounts; unaudited)
Nonvested shares at December 31, 2024	563,384	$	36.20
Granted	114,660	$	75.18
Forfeited or expired	(14,393)	$	56.59
Vested	(122,708)	$	34.42
Nonvested shares at June 30, 2025	540,943	$	44.32

There were no new restricted stock awards granted in the six months ended June 30, 2025. The fair value of restricted stock awards is equal to the fair value of the Company’s stock at the date of grant. Compensation expense is recognized over the vesting period that the awards are based. Restricted stock awards are participating securities.

As of June 30, 2025, there was $23,000 of total unrecognized compensation cost related to nonvested restricted stock awards. The Company expects to recognize that cost over the remaining weighted-average vesting period of approximately 2.6 years. Compensation expense recorded related to restricted stock awards was $2,000 and $4,000, respectively for the three and six months ended June 30, 2025 and $2,000 and $4,000, respectively for the three and six months ended June 30, 2024.

Under the 2018 Plan, effective May 2024, eligible directors are granted stock with a total market value of approximately $85,000, and the Board Chair is granted stock with a total market value of approximately $125,000. Committee chairs receive additional stock in an amount that varies depending upon the nature and frequency of the committee meetings. The audit committee chair receives additional stock with a market value of approximately $15,000, non-financial risk and compensation committee chairs receive additional stock with a market value of approximately $12,500, and all other committee chairs receive additional stock with a market value of approximately $10,000. Stock is granted as of each annual meeting date and vest one day prior to the next annual meeting date. During the vesting period, the grants are considered participating securities.

As of June 30, 2025, there was $793,000 of total unrecognized compensation expense related to director restricted stock awards which the Company expects to recognize over the remaining average vesting period of approximately eleven months. Director compensation expense recorded related to the 2018 Plan totaled $200,000 and $380,000, respectively for the three and six months ended June 30, 2025 and $139,000 and $258,000, respectively for the three and six months ended June 30, 2024.


Nonvested shares - RSAs	Number of Shares	Weighted- Average Grant Date Fair Value
	(dollars in thousands, except per share amounts; unaudited)
Nonvested shares at December 31, 2024	18,698	$	40.90
Granted	10,039	$	87.19
Forfeited	—	$	—
Vested	(17,198)	$	42.91
Nonvested shares at June 30, 2025	11,539	$	78.17