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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2026
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Stock Options and Restricted Stock 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 plan. The 2018 Plan replaced the 2016 Plan for new awards; outstanding awards under the prior plan continue to vest in accordance with their original terms. Shares available to be granted under the 2018 plan were 692,161 at June 30, 2026. Stock Option Awards 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. There were no new stock options granted in the six months ended June 30, 2026 and 2025. The following table presents a summary of stock option activity under the 2018 Plan and 2006 Plan during the six months ended June 30, 2026:
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 |  | (53,046) |  | 9.28 |  |  |  |  | $ | 3,619 |
Expired |  | — |  | — |  |  |  |  |
Forfeited |  | — |  | — |  |  |  |  |
Outstanding at June 30, 2026 |  | 65,835 |  | $ | 10.76 |  |  | 1.9 |  | $ | 4,395 |
Vested at June 30, 2026 |  | 26,490 |  | $ | 10.40 |  |  | 1.8 |  | $ | 1,778 |
Exercisable at June 30, 2026 |  | 26,490 |  | $ | 10.40 |  |  | 1.8 |  | $ | 1,778 |
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 six months ended June 30, 2026 was $187,000 and $4.2 million, respectively. The total intrinsic value of options exercised during the three and six months ended June 30, 2025 was $2.7 million and $4.5 million, respectively. As of June 30, 2026, there was $206,000 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 1.9 years. Compensation expense recorded related to stock options was $111,000 and $257,000 for the three and six months ended June 30, 2026, respectively and $93,000 and $147,000 for the three and six months ended June 30, 2025, respectively. Restricted Stock Units In the first two quarters of 2026, the Company granted 53,329 restricted stock units ("RSUs") under the 2018 Plan to employees, which vest ratably over 4 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 June 30, 2026, there was $15.4 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 2.9 years. Compensation expense related to RSUs was $1.6 million and $3.2 million for the three and six months ended June 30, 2026, respectively and $1.7 million and $4.0 million for the three and six months ended June 30, 2025, respectively. The total grant-date fair value of RSUs that vested during the three and six months ended June 30, 2026 was $1.7 million and $4.5 million, respectively, compared to $1.8 million and $4.2 million for the three and six months ended June 30, 2025, respectively. A summary of the Company’s nonvested RSUs at June 30, 2026 and changes during the six month period is presented below:
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 |  | 53,329 |  | $ | 81.50 |
Forfeited or expired |  | (58,846) |  | $ | 64.65 |
Vested |  | (90,049) |  | $ | 49.62 |
Nonvested shares at June 30, 2026 |  | 380,736 |  | $ | 54.98 |
Restricted Stock Awards Employees There were no restricted stock awards outstanding for employees as of June 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 six months ended June 30, 2026 and $2,000 and $4,000 for the three and six months ended June 30, 2025, respectively. Director’s Stock Compensation 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, 2026, there was $887,000 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 0.9 years. Director compensation expense recorded related to the 2018 Plan totaled $230,000 and $447,000 for the three and six months ended June 30, 2026, respectively and $200,000 and $380,000 for the three and six months ended June 30, 2025, respectively. A summary of the Company’s nonvested RSAs at June 30, 2026 and changes during the six-month period is presented below:
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 June 30, 2026 |  | 13,814 |  | $ | 71.27 |

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