Philadelphia, Pennsylvania--(Newsfile Corp. - October 6, 2026) - Grabar Law Office is investigating claims on behalf of shareholders of Coastal Financial Corporation (NASDAQ: CCB).

What is This Investigation About? This investigation concerns possible breaches of fiduciary duties and other alleged misconduct by certain officers and directors of the Company.

Current Coastal Financial Corporation (NASDAQ: CCB) shareholders who have held Coastal shares since prior to October 28, 2024, are encouraged visit https://grabarlaw.com/the-latest/coastal-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085. You can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to you whatsoever.

Why? A recently filed federal securities fraud class action alleges that Coastal Financial Corporation (NASDAQ: CCB), through certain of its current and former executives, made materially false and misleading statements concerning the growth and credit quality of Coastal's CCBX business, the adequacy of the Company's risk-management and credit-monitoring practices, and the credit protections provided by CCBX partner indemnification agreements

Specifically, the underlying complaint alleges that, while Coastal represented that CCBX growth was being pursued in a disciplined manner with an emphasis on credit quality and risk management, defendants failed to disclose that:

• the credit quality of a substantial CCBX partner loan portfolio consisting of approximately $500 million in loans, or nearly 23% of all CCBX loans, had materially deteriorated;
• the deterioration exposed Coastal to significant credit losses despite representations concerning the protections provided by CCBX partner indemnification agreements; and
• Coastal's risk-management and credit-monitoring practices were allegedly inadequate to identify, properly account for and mitigate the deterioration and resulting risks.

The underlying complaint further alleges that Coastal repeatedly emphasized its investment in risk management and its contractual protection from CCBX credit losses. For example, in April 2025 Coastal represented that it remained fully indemnified against fraud and 98.8% indemnified against credit risk with its CCBX partners, and the Company made a similar representation as of March 31, 2026. Then, on July 30, 2026, Coastal announced its second-quarter 2026 financial results and reported a surprise GAAP net loss of $42.1 million, driven primarily by a $68.8 million credit expense associated with a single CCBX partner relationship. According to the complaint, the $68.8 million expense consisted of:

• a $46 million valuation adjustment to the related credit-enhancement asset; and
• a $22.8 million provision for credit losses associated with the partner's indemnification obligations.

It is further alleged that Coastal also disclosed that the affected portfolio consisted of approximately $500 million in underlying loans, together with the related reimbursement exposure. Following these disclosures, Coastal common stock fell $30.75 per share, or 43.5%, closing at $39.91 per share on July 30, 2026. According to the complaint, the decline erased approximately $470 million in market capitalization.

The complaint additionally alleges that Chief Executive Officer Eric M. Sprink sold approximately $12 million of Coastal common stock during the Class Period, while former CFO Joel Edwards sold approximately $3.8 million. It is alleged that those sales occurred before the deterioration of the CCBX partner portfolio and Coastal's resulting exposure were disclosed to investors.

What Can Long-Term Coastal Financial Shareholders Do Now? If you have owned Coastal Financial Corporation (NASDAQ: CCB) shares since prior to October 28, 2024, you are encouraged to contact Grabar Law Office. You can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to you whatsoever. If you would like to learn more about this matter, you are encouraged to visit https://grabarlaw.com/the-latest/coastal-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.

#CoastalFinancial #CCB $CCB

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Source: Grabar Law Office