Coastal Financial Corporation

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers Transition of Brian Hamilton to Consulting Role On October 28, 2026, Coastal Financial Corporation (the “Company”), Coastal Community Bank (the “Bank”), a wholly owned subsidiary of the Company, and Brian Hamilton, President of CCBX, the Bank’s FinTech and banking-as-a-service division mutually agreed to transition Mr. Hamilton into a consulting role after the technology build-outs and infrastructure initiatives that Mr. Hamilton was engaged to lead had substantially progressed to a stage that no longer required his day-to-day leadership and oversight. Accordingly, Mr. Hamilton will cease serving as an employee and President of CCBX and will resign from all other positions he holds with the Company, the Bank and their respective subsidiaries, other than his service as a consultant to the Company and as a member of the Company’s Board of Directors. From the Effective Date through May 1, 2027, Mr. Hamilton will provide strategic advisory and business development services to the Company’s Chief Executive Officer on an as-needed basis. The Company will pay Mr. Hamilton a monthly fee of $35,000 for his consulting services. The aggregate consulting fee payable to Mr. Hamilton will not exceed $245,000. Mr. Hamilton’s consulting agreement also includes customary releases and confirms certain continuing confidentiality, non-solicitation, non-competition, non-disparagement and cooperation obligations that apply to Mr. Hamilton during his consulting period. The foregoing description of Mr. Hamilton’s consulting agreement does not purport to be complete and is qualified in its entirety by reference to the terms and provisions thereof, a copy of which will be filed with the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending September 30, 2026. Reduction in Chief Executive Officer Compensation Also on October 28, 2026, in connection with the Company’s broader profit improvement plan and ongoing efforts to reduce operating expenses and align executive compensation with the Company’s current cost structure, Eric M. Sprink, the Company’s Chief Executive Officer, volunteered to reduce his compensation. Effective October 28, 2026, the Board of Directors approved the reduction in Mr. Sprink’s compensation. Under the revised compensation arrangement, Mr. Sprink’s annual base salary will be reduced from $874,000 to $500,000. The compensation reduction and Mr. Hamilton’s transition to a consulting role are part of the Company’s broader cost-reduction and operational-efficiency initiatives. The foregoing description of the changes to Mr. Sprink’s compensation does not purport to be complete and is qualified in its entirety by reference to the terms and provisions of an amendment to Mr. Sprink’s employment agreement memorializing the reduction, a copy of which will be filed with the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending September 30, 2026.