The 2018 Coastal Financial Corporation Omnibus Plan (the "2018 Plan") as amended, 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. The Company's shareholders approved amendments to the 2018 Plan in 2021 and 2025 that increased the number of shares available for issuance under the 2018 Plan. The 2018 Plan replaced the 2006 Stock Option and Equity Compensation Plan ("2006 Plan") for new awards; outstanding awards under the prior 2006 Plan continue to vest in accordance with their original terms. Shares available to be granted under the 2018 Plan were 648,022 at September 30, 2026.

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, 2025	118,881	$	10.10	2.1	$	12,422
Granted	—	—
Exercised	(54,991)	9.29			$	1,686
Expired	—	—
Forfeited	—	—
Outstanding at September 30, 2026	63,890	$	10.79	1.6	$	1,862
Vested at September 30, 2026	25,745	$	10.49	1.5	$	758
Exercisable at September 30, 2026	25,745	$	10.49	1.5	$	758

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 both the three and nine months ended September 30, 2026 was $78,000 and $4.3 million, respectively. The total intrinsic value of options exercised during the three and nine months ended September 30, 2025 was $229,000 and $2.7 million, respectively.

As of September 30, 2026, there was $179,000 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 1.6 years. Compensation expense recorded related to stock options was $27,000 and $284,000 for the three and nine months ended September 30, 2026, respectively, and $32,000 and $179,000 for the three and nine months ended September 30, 2025, respectively.

In the first three quarters of 2026, the Company granted 138,715 restricted stock units ("RSUs") under the 2018 Plan to employees, which vest ratably over periods ranging from 4 years to 5.7 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 applicable vesting period of the awards. RSUs are nonparticipating securities.

As of September 30, 2026, there was $15.1 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 3.3 years. Total unrecognized compensation costs are adjusted for unvested forfeitures. These amounts and the remaining

weighted-average vesting period will change as employees leave the Company prior to vesting. Net compensation expense related to RSUs was $749,000 and $3.9 million for the three and nine months ended September 30, 2026, respectively. There was a net expense recapture of $227,000 and net expense of $3.8 million for the three and nine months ended September 30, 2025, respectively. The total grant-date fair value of RSUs that vested during the three and nine months ended September 30, 2026 was $446,000 and $5.0 million, respectively, compared to $400,000 and $4.6 million for the three and nine months ended September 30, 2025, respectively.


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, 2025	476,302	$	51.93
Granted	138,715	$	61.25
Forfeited or expired	(100,093)	$	74.64
Vested	(96,103)	$	51.12
Nonvested shares at September 30, 2026	418,821	$	50.07

There were no restricted stock awards outstanding for employees as of September 30, 2026 or December 31, 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.

Compensation expense recorded related to restricted stock awards was $0 for the three and nine months ended September 30, 2026 and $23,000 and $27,000 for the three and nine months ended September 30, 2025, respectively.

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 September 30, 2026, there was $637,000 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 eight months. Director compensation expense recorded related to the 2018 Plan totaled $250,000 and $697,000 for the three and nine months ended September 30, 2026, respectively, and $221,000 and $601,000 for the three and nine months ended September 30, 2025, respectively. The total grant-date fair value of RSAs that vested during the three and nine months ended September 30, 2026 was $0 and $875,000, respectively, compared to $0 and $729,000 for the three and nine months ended September 30, 2025, respectively.


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, 2025	10,039	$	87.19
Granted	13,814	$	71.27
Forfeited	—	$	—
Vested	(10,039)	$	87.19
Nonvested shares at September 30, 2026	13,814	$	71.27