Business Context and Reporting Period
Company: Coastal Financial Corporation (CCB)
Filing Type: Form 8-K (Current Report)
Date of Report: September 22, 2025
Principal Event: Appointment of a new Chief Financial Officer (CFO) and disclosure of compensatory arrangements.
Key Financial Metrics
This filing is a current report regarding executive personnel changes and does not contain financial performance data. The filing text does not provide values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
- Executive Leadership Change: Brandon Soto has been appointed as Executive Vice President and Chief Financial Officer, effective October 1, 2025.
- Transition: Joel G. Edwards will continue as CFO until October 1, 2025.
- Compensation Structure: New employment agreements and equity awards have been finalized for Mr. Soto.
Guidance, Outlook, and Management Commentary
Management Commentary: The filing details Mr. Soto's extensive background, including seven years as CFO of Square Financial Services, Inc. (a subsidiary of Block, Inc.), and prior roles at Green Dot Bank and Sallie Mae Bank. His experience includes overseeing accounting, treasury functions, and regulatory approvals.
Compensatory Arrangements:
- Base Salary: $500,000 annually, subject to annual review.
- Signing Bonus: One-time payment of $15,000.
- Equity Awards:
- 18,000 Restricted Stock Units (RSUs) vesting over four years.
- 15,000 Performance-Based Restricted Stock Units (PSUs) subject to service conditions and stock price targets (133%, 166%, and 200% of grant price over 60 trading days).
- Term: Initial four-year employment agreement with automatic annual renewal.
Risks and Contingencies: The filing states there are no familial relationships between Mr. Soto and directors/officers, and no undisclosed material interests in transactions. Standard non-competition and non-solicitation provisions apply.
Investor Verification Checklist
- Verify the effective date of the CFO transition (October 1, 2025) and the departure of the current CFO.
- Review the specific stock price hurdles for the 15,000 PSUs to understand the performance conditions required for vesting.
- Confirm the total equity grant value based on the current trading price of CCB common stock.
- Check for any subsequent filings regarding the departure of Joel G. Edwards or changes to the compensation committee's approval process.